- Today, the gold market saw the price correction that
many analysts, especially those with bearish biases, have been predicting
since gold crossed $290. Actually, the drop started last night in the ACCESS,
an electronic system operated by NYMEX where gold trades along with the
Asian and the Australian markets. (ACCESS lets the New York houses keep
a piece of the 24-hour gold market. NYMEX owns ACCESS, and also COMEX.
ACCESS closes 20 minutes before the COMEX opens, where the exchange members
make their really big money.)
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- Shortly after ACCESS opened, some 700,000 to 800,000
ounces were dumped. The always politically correct World Gold Council suggested
in its Daily Commentary that the selling was due to technical analysis.
Some analysts immediately saw the work of the Plunge Protection Team (PPT),
which they say has conspired to keep the Dow Industrials from collapsing
and the price of gold from skyrocketing. Here,Äôs one private
analyst's view:
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- Richard Russell (Dow Theory Letters) has commented on
the fact that every time the stock market gets poised for a major break
[down], someone (PPT?) rushes in with a well orchestrated plan to counter
the bearish move. Tuesday was a perfect example of this, because after
the market action on the previous Thursday and Friday failed to turn the
tide back up, the action on Monday looked very bad, forcing the PPT to
a special effort on Tuesday.
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- During the day, they persuaded Barton Biggs to put out
a bullish statement on stocks. Biggs has been a bear, and I personally
doubt he has seen enough evidence to change his mind without sufficient
arm twisting by the Wall Street establishment. After all, he is part of
that club, and he has been on the outside in the past few months. I feel
certain his reversal went a long way to bring buying into stocks with other
actions by the PPT.
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- Next there was a bear raid on the price of gold after
the New York close (the dumping of 700,000 to 800,000 ounces). To aid in
that bear raid, someone got to Caroline Baum and persuaded her to write
an attack on gold ownership.
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- It seems very convenient from the standpoint of the PPT
that Richard Russell's voice was stilled at least for a little while when
his website went down. I have wondered for some time how the "Powers
that Be" could let Russell preach the bear case for stocks, the bull
case for gold, and expressly expose the fraud imposed on the world by the
fiat dollar, without somehow trying to close him down. Is it possible the
PPT hacked his website?
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- All of these efforts to change the bearish tide in the
stock market and the bullish tide in the gold market are nothing more than
delaying tactics in a financial war where short term battles are won but
the war will ultimately be lost as unalterable forces push events to their
inevitable conclusion.
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- Now, the question: is this the correction or is it the
first day of a correction that will last for weeks, perhaps bringing gold
back to the $300 level. Most assuredly, the bears will see this as the
start of a major correction. Some will declare gold's rally to be over.
Like the recession that never was, to the bears this will be the rally
that never was--if gold is driven significantly lower.
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- However, like the analyst noted above said, these are
delaying tactics by an army that is losing. In the end, unalterable forces
will push events to their inevitable conclusion. Paper money will not--cannot--triumph
over gold. Investors need to prepare for what's going to happen over next
three years, not the next three weeks or three months.
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- http://www.goldstatistics.com/commentary-spots.htm
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