Very interesting. Something’s definitely up with gold prices — they have not been acting the way you’d expect them to in a situation like this.
Ping for later reading.
The most interesting part, Gold Short Sellers moving in contra to the price of gold elsewhere is not fleshed out other then to say “the Fed and the short sellers are old friends”..but a market will make a dollar, where is the specific collusion?
It’s the same problem with Gold, the market is too shallow and easily manipulated.
—bflr—
Pure crap.
Pure manipulation.
.
And where will silver go? If the country goes back on the gold standard, will the government call in all gold as in the past?
“””In spite of an avalanche of complaints from gold and silver investors, the CFTC (Commodity Futures Trading Commission) has never bothered to audit even one vault to see if the short sellers really have the alleged gold and silver they claim to have”””
Reminds of the naked shorting controversy with stocks.
A fixed market where the retail guy gets screwed every time.
I really am getting the feel like the 8 or so old family members I have buried in the last ten years had who lived through the last depression. - put the money in the mattress, do not trust bakers, stock brokers or anybody else.
They had a good reason.
One thing good about the change in the economic climate is the deafening silence from the rabid free traders and the quit talking down the economy crowd. Peace
Precious Metals Ping List
Another interesting article .
While I don't personally agree with all of the conclusions,
( For instance: the expectation than any industrialized nation will ever return to the gold standard is laughable IMHO
the background info is useful.
--------------------------------------------------
Some examples:
Every time gold (or silver) is physically moved there is considerable expense in re-assay (mandatory) and of course logistics.
Mining and associated yield of those metals is intimately tied to production of geochemically related resources, lead, tin, zinc, etc. and by such, intimately tied to world economic production,
Both gold and silver have real world technical use which can fluctuate depending again on world economics and technology.
Oil is traded on a spot market with sporadic paper manipulations, but the very graphic, and unrelenting, end game, is its physical exploitation. Precious metals, being not so tightly coupled, are clearly more subject to paper manipulation, but how much more? Perhaps not as much as a pin-stripe suited Fed Reserve geek in a leather chaired boardroom wishes to think. Does anyone know if Ben Bernanke has ever worked in the silver mines of Peru?
Thus there can be a host of "instruments" conjured by the financial guru's, just as we could conjure say some "insurance" instrument associated with the transfer of the metal, or just as negotiable distributable debt instruments were conjured for the mortgage realm. But then Humpty Dumpty reigns.
Energy incidentally, Joules, Ergs, BTU's, etc. is the normalized parameter of man's material prosperity.
Johnny Suntrade
.
Naked short selling is a scourge. I for one will not invest any money in the US equity or commodity markets until this issue is addressed seriously. The means to prevent naked short selling exists, but no will.
It is already illegal to intentionally sell short without the means to deliver but nobody is policing it. Nobody is forcing a buy-in when the trade fails. Furthermore, market makers and options contract market makers are permitted to naked short sell as a hedging strategy, but that loophole is ripe for abuse since anyone could force an option market maker to naked short sell by taking a large options position.
For crying out loud they even have a list of stocks with inordinate numbers of fails and they don’t do anything other than list them as REG SHO (fail). They don’t investigate who is failing, why they are failing, or force anyone to deliver.
This scam has destroyed or damaged hundreds if not thousands of companies. If you can sell shares that you do not own, cannot locate for borrow and have no intention of borrowing, then you are artificially increasing the supply and putting downward price pressure on the issue.
The markets are unsafe and ripe for fleecing - as everyone with eyes has just seen occur.
ping