05 November 2014

Gold Daily and Silver Weekly Chart - Send In the Clowns

Gold and silver were hit again rather hard last night, with a large number of contracts dumped at market during quiet periods.  This is a deliberate series of actions that are part control fraud, and part currency war. 

It is as much the predations of private money as it is government meddling.  Big money and government are in a corrupt partnership.   Those who have simplified their world views with slogans about getting rid of government do not get this.  But they will get it, and it will hurt.

This is not a problem for the Comex, which is essentially just a game.

This is going to be a huge problem for the miners, and those countries and people who depend on them. It is a problem down the road for those whose bullion has been leased out and sold by the banks into the metals markets.

For some miners, allied as they are with bullion banks in forward sales and hedges, it will be an opportunity to obtain more reserves and assets on the cheap from acquisitions and line their pockets, their shareholders be damned with the writedowns that follow.

For some analysts and industry organizations, it is a great opportunity to go along to get along, and get paid.

For some on Wall Street, this is just another brick in the wall of their historic transfer of wealth through control frauds. They are growing fat, picking the bones of the lower and middle classes.

For some well intentioned but incredibly naïve people who have been swept up in the political slogans of demagogues, it will be a great time to feel good, to believe that they at last are finally members of The Club, one of the In-Crowd, to feel that they are winning

But unfortunately for most, it will ultimately prove to be a pyrrhic victory when this long running scheme unwinds, and people start to stand up and say no, and stop acting out of emotions and anger and spite at each other.  And when enough of them do it, there will be real change.

Have a pleasant evening.