heehhe - gold manipulated to stay cheap.
Maybe, but I start to have doubts about that campaign which can be a hoax as any. I just don't have sources to make my own opinion.
PMed with the NiteOwl this morning and kept a copy:
"
You must be referring to the Zeal paper zealllc.com
Starting to ask myself a question: is this a replay of the Bermuda Triangle?
Berlitz (the one of the language school) once wrote a book, very poorly designed, full of ellipses and assimilations. Soon thereafter, there were others books written referencing to eachother, none actually checking the references.
This could be the case here.
It seems that the case was brought up by GATA (the Howe Complaint) which is trying to make an anti-trust case.
I can't recoup the huge numbers with material evidence, although the effects of derivative tradig are well described.
There also is an association I don't like: the figures are notional - the theoretical maximum risk - and mixed with other "real" figures.
Futures open-interest is in balance, as much longs as shorts, the OCC taking the necessary inverse position when needed.
I believe GS and JPM to be the brokers and the bullion bank of the Fed. It would therefore not be surprising that they would have large positions: the position of the Fed in a strong Dollar policy.
I had a look at the CPM
cpmgroup.com
and a paper cpmgroup.com "Bullion Banking Explained" which leads me to make more DD in that industry before taking a position.
A major bullion dealer at one of the most active bullion banks in the world made a comment to me in early 1998 that succinctly put in context what one?s approach should be toward those comments about how bullion banks and monetary authorities were colluding to drive the price down. The banker said, ?Do these people have any idea whatsoever how gold is traded?? The answer is no.
So, I am back to case one."
Undoubtly, a pure TA nalyzis of gold would have the current price closer to $600 than the sub $280 we have.
Undoubtly, the strenght of the Dollar vs. Fed rates is diverging. Either the Dollar has to weaken, or the interest rates have to rise goldenbar.com
Undoubtly, there is a disconnection between lower interest rates and the generally expected rise in gold prices.
Even against all principles, these are facts.
I am as disgusted as you are.
I tokk all my chips off the table in Sep last year. Smelled a sting, but not what I am discovering these days.
Ended to speculate on the futures in August when the PPT intervention became too blatant.
Now sitting on Euro and Swiss cash which I know are fought against by the Fed.
Starting to have a sense of what a sitting duck is feeling in the hunting season. |
