There are the rumblings of a change taking place. As a result, I think the cb's have altered their priorities somewhat. Prior to July they would not have minded if the price of gold sank below 250.00. Today, I believe their priorities have shifted to prevent gold from rising too far, too fast. To accomplish this, they are counting on the producers to come thru at the propitious time. I envision the following scenario. Gold rises above 280.00 an ounce, the bankers utilizing the IMF, Switzerland, and the US release statements with a lot of innuendo that for example: the swiss sale is imminent, the BOE is on track, and the IMF will sell only if the market is not disrupted. To coincide with the public releases, they will filter messages to the producers that the party is over and now is the chance to lock in prices by selling forward. To facilitate the forward sales, they will make whatever gold is required available. Do you have any doubt what is going to happen. The miners will be throwing everything at the market including their gold rolexes. They cannot help it, with a motto dig we must, it leaves little time for them to pick up a book on eco 101 and figure out their are other ways to make money than to break your back digging out gold that you are going to give away. While the miners are digging for gold, this board will go back to their time honored profession of digging for doom and gloom.
Ken |
