I'm so frustrated and angry this morning, I had to blast "Uprising" a few times to get my head screwed on straight. You might to do the same before you read on:
OK. Those of us that follow, store, collect and/or trade precious metals are all very much aware of the presence of The Evil Empire. At the behest of their evil Sith masters at The Federal Reserve, the EE actively, and almost daily, intervenes in the gold and silver markets in blatant attempts to control the rise of price. As you know by now, the most likely time for the EE to intervene is between 7:00 and 9:00 am, New York time. Why then? A myriad of reasons but Asain traders are done for the day, London traders are slowing down, perhaps even at lunch, and its prior to the PM fix on the LBMA. If you haven't already noticed this obvious trend, then you either have not been watching very closely or you're new. Either way, now that you know, prepare to be pissed off nearly every morning at 8:00 EST.
The seminal study of this phenomenon was done by Adrian Douglas and it was posted to ZeroHedge back in August. If this concept is new to you or if, by chance, you have any doubts, I strongly encourage you to take time to read this:
To see this play out in real time and to illustrate how dramatically just one week of criminal EE intervention affects the price of gold (and by extension, silver), behold the chart below. Wait, wait, wait.
First take a deep, cleansing breath. Maybe get up and walk around for a minute. This is really going to piss you off:
Told ya. Did I just ruin your morning? Remember, don't shoot the messenger. Its just my job to inform.
And you wonder: "How in the world can the bond market collapse, the eurozone be disintegrating and HellyBenny proclaims 'QE to infinity' but yet gold is going down? Who, in their right mind, is selling?" WELL HERE'S YOUR ANSWER! Is it logical to assume that without direct, regular EE price intervention over the past week that gold would be hovering around $1500 instead of $1400? Damn straight! Is it logical to assume that without direct, regular EE price intervention over the past three years that gold would be approaching $2500? $3500? And if gold were at $3500 instead of $1400, would the Fed have even the slightest chance of convincing anyone that inflation is only 2%, thereby making bonds yielding 4% seem attractive?
Look, I show you all this because I believe in my heart that it is completely true and you, my dear reader, need to have this information in order to form your own opinion regarding the true nature of our capital markets. Regardless of EE intervention, the PMs will continue to grind higher, just as they have for almost 10 years now. Additionally, the EE will always be there, trying to keep things from getting out of hand too quickly. Know this and understand it. Don't get too excited when things are going your way and don't get too despondent when they are not. Our Buyer(s) of Size are determined to accumulate PMs in spite of the EE/Fed complex. In fact, the BoS probably enjoy their presence as the dips created by panic or algo-based selling only provide lower entry points for them. Even today, we've already rebounded $7 off of the EE low in gold and $0.30 off of the low in silver.
We will win and the PMs are going much, much higher. Of that you can be certain. Do not, under any circumstances, allow the pathetically blatant, daily manipulations of the Evil Empire to ever prompt you to sell your gold or silver. Period.