The paper market intervention in the gold and silver markets are acts of desperation. The cascading downward on the charts are clear indications of government intervention. Ninety tons of gold were reportedly purchased by central banks once the price dropped below $1,550. Thank you very much.
Goldman Sachs heavily promoted selling short gold this week. They herded their followers into the slaughter house. 500 tons of “paper” gold were sold during this takedown. About 800 tons of physical gold have been delivered in the last 45 days and have been taken out of the market. A friend of mine tried to buy Canadian Maple Leaf gold coins and his supplier was out. Expect to see short supply moving forward.
I believe that the buyers and holders of precious metals and their related stocks have just about figured out the game that the central banks have been playing and are no longer “thrown off the bull” during corrections in price, whether market or government generated. The market’s volatility will definitely increase going forward. If you believe that gold and silver are heading up, then you won’t worry about paying $1,600 versus $1,500 for gold. Keep you Maalox on hand, there is turbulence ahead