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Gold was lifted into the oxygen depletion zone above $1,900 overnight, and as predicted, the bear raids were launched today in force, together with nonsensical commentary from the financial demimonde.
"...the market in physical gold is tiny, and largely comprised of nutcases."
No wonder the Anglo-American financial cartel is in such decline. Blind is the arrogance of faded empire, when it can no longer succeed by telling their client states what to do.
And of course the television spokesmodels were able to cite the overnight peak and say, "Wow, strap on my seatbelt. Gold is down $60!" Better rush into the rock solid safety of equities. Here are a very nice selection of stocks for you, at recently marked down prices.
Yes, they really are that obvious.
So what next? Gold and silver will probably be subject to additional bear raids as the Comex expiration is not until Thursday the 25th, and Bernanke will be speaking from Jackson Hole on Friday the 26th.
This does not yet have the feel of the May option expiration silver smack down, with its serial margin increases by the Exchange. The gold market has a strong underlying bid now with Venezuela repatriating its gold, and strong buying by non-Western nations and their central banks.
There is a currency war underway, and the primary bone of contention is the nature of the world's reserve currency and fiat based international trading regime. There are ancillary issues of course, but the position of the US dollar, the petro-dollar if you will, as the world's reserve currency is key.
The biggest risk to Venezuela is not in transporting the gold. It is the counter party risk, of obtaining the return of their sovereign property from the Anglo-American banking cartel.
"As mentioned in previous quarterlies, the main long-term risk is that after two massive bubbles and two equally massive resurrection programs, the Fed may be out of ammunition.
Should more building blocks fall and a serious global double-dip develop, then the pattern of market behavior this time may be more historically typical. That is, instead of quickly recovering, markets will become cheap and stay below long-term averages for several years as was the case pre-Greenspan."
Jeremy Grantham
A big technical relief rally in stocks despite some very poor economic news, earthquakes and an approaching hurricane, lol.
The market was on support and deeply oversold. Yesterday was the 'stutter step' at support that indicated they were going to try and take it back up today no matter what. And so they did.
All eyes on Jackson Hole. I doubt Benny will roll anything out of significance, but some jaw-boning is de rigeur.
There is no economic recovery for people, just corporate people.
Bear raid right on schedule for Comex option expiration week, after they ran it up to the stratosphere.
Look out for Thursday expiration and Friday when Benny will be expected to say something on the easing front.
A wild day in the markets today as stocks came in much higher and then tanked, with the CDS spreads on Bank of America running much higher along with gold and to a lesser extent silver.
Financials pressed the SP 500 lower all day, and Goldman broke hard to the downside into the close as a story on Reuters suggested that Lloyd Blankfein had hired a white collar criminal defense attorney named Reid Weingarten.
On Friday Bernanke will be speaking at Jackson Hole, and the markets are looking for some indication of the latest subsidy to the markets from the Fed. If not a flat out QE3, then perhaps Benny will speak about a program to control the longer end of the yield curve.
All this uncertainty had investor flocking into the safe haven of gold sending it to the 1890's. This has been a brutal rally for the metals bears.
This Thursday the 25th is the option expiration on the Comex. I have to admit that I am concerned that gold has been allowed to rise up into the oxygen depletion zone here, as had been done with silver not all that long ago, and that applications of bear raids and margin increases will bring it tumbling back down to support.
I wouldn't try and get in front of this comet, because we are not quite sure what is driving it. Chavez' margin call on the Bank of England's gold could be triggering this parabolic run. It would nice if gold consolidated its gains soon. I am playing the markets defensively for now.
Let's see what happens.
