If the Bank of England sale didn't convince the world that the gold market was being manipulated, maybe a $60 explosion in the gold price might. The extreme price action in gold should clearly indicate that the market has been artificially suppressed
If the Bank of England sale didn't convince the world that gold is a unstable currency, maybe a $60 explosion in the gold price might. The extreme price action in gold should clearly indicate that the market has NOT been artificially suppressed. Proof: A suppressed gold price would not have risen under a 'nothing new' announcements from ECB.
"Gold, which sank to a 20 year low of $251.70 an ounce in August amid concern about British bullion sales, began its sharp rally on Monday when 15 European central banks pledged to cap future gold sales during the next five years."
A pledge is a declaration of promise. A pledge can easily be broken. But once you ratify a pledge, then you confirm by official sanctions the validation of the promise. In any plutocracy, the self interests of the few are tantamount to the rights of governments. And in any CB regime where the few are promoted to leadership from the ranks of the triumvir of Banks, Government, & Wealth; the best interest of the few dictate to the remaining. The Romans, much like the The US Senate, know this. To become selective in the words they use departs meaning without power. To behold the truth of the spoken word, is to understand the power of the words. By the utterance of the word "pledge" the ECB's have effectively revalued their currency the Euro. But one should look closely as to what has been promised:
gold.org
The central banks have also agreed not to increase their gold lending arrangements and derivative operations above current levels for the next five years.
They never even suggested lowering those levels to 1998, 97, 96, 95 levels. Thus, this is a promise with no depth. If we assume that CB selling, leasing, and derivatives transaction have been at an all time high for the 1999 year, then a promise to go no higher becomes a deceition. A falsehood, construction to lead the POG up based solely on ideas, and not based in fundamental or technical reasons. So the triumvir has only create a situation where the benefits of the derivatives and leasing becomes in their favor, and not the investors.
The heroic effort and foresight of Bill Murphy is only now beginning to be understood. Bill and his Le Metropole Cafe have absolutely nailed the events that are now unfolding.
To give credit to situations of obscurity, without foresight and understanding that nothing is new but perceptions is to play into the hands of the alleged manipulators. For it is the public that has manipulated the spot price higher. And this move came within days of futures expirations. Maybe the ECB's had agreed to be both long futures and attempt to bust hedge funds. This transactions is more hideous then the natural demonterization of gold, and may actually lead to the acceleration of such actions. Indeed this may be a prelude for the replacement of the IMF with a World Central Bank, and thus an one world currency. And a world currency would also make gold of no monetary value.
Hutch
Go GOLD Go
charts.quotewatch.com |
