We saw a coordinated attack on gold today and you can expect continued price volatility.
Goldman Sachs says its time to short gold: http://finance.yahoo.com/news/goldman-sachs-says-time-short-132705633.html
Their job as an agent to the powers that be is to drive down the price of gold. Privately, I expect them to become buyers at a lower price.
The Federal Reserve has assured us that all is well while behind the scenes they are doing everything necessary to maintain “social passiveness”. They lower the yields to push up bond prices thus show a wealth effect, they inject liquidity into the financial system that pushes up stock prices AND the wealth effect. The problem is that they must continue intervening in the market that does not have any economic recovery in sight.
We have had over three years of quantitative easing and other countries are moving away from the Dollar due to this manipulation. If this continues, the Fed loses control and they will not be able to contain inflation. The Fed told the brokerage houses that hedge funds were going to sell their gold positions which filtered down to other owners who immediately liquidated their positions, a classic manipulation technique.
The Japanese are creating money to help save the value of the dollar. This is only a short-term solution and their retirees will suffer. Physical gold is being removed from the market and at some point there will be no physical gold left to buy. That may come true for silver as well.
If gold and silver bullion were not a threat, the Fed would not be attacking it. All they are doing is facilitating a massive transfer of wealth to the Eastern Kings. It may soon be checkmate.