Had silver done what it did without the gold price-capping and peculiar precious metals share price action, I might have thought nothing of it. However, taken all into account, this was no fluke. It was planned. Fortunately, it appears the ruse is going to backfire.
As often has been the case over the years, we see how gold leads the dollar as far as price action goes. Gold was influenced DOWN ahead of Greenspan’s testimony and the euro soon followed suit. However, whether coincidence or not, the euro reversed course with a vengeance when the Israel/Iran story broke. Gold had turned back up first and then the euro followed on the upside, blowing right by gold as it was capped again once it came close to thinking about going up on the day. That was not to be tolerated by the cabal with Greenspan still on stage.
Now that my rant is over there is much positive news to report.
The orchestrated plan to bury gold this morning was thwarted by substantial ETF buying and HUGE physical market buy side pricing by dealers. It was enormous and surfaced when spot broke $423. This cash buying is The Gold Cartel’s Achilles Heel.
*The cabal has done all they could to cap gold three days in a row and take it down, yet the price is still at levels where they began this operation. They are losing. Once spot takes out $427, it should streak for $430.
*As mentioned in an earlier MIDAS, we expected gold to be contained while Greenspan peddled his patented performance art pabulum. The bad guys can only keep the water from breaking through the dam for so long. Once gold takes out $430/$431 and closes above that level, it will be katy bar the door.
*While negative an unwanted for a world peace scenario, tensions in the Middle East are rapidly heating up to a noticeable degree and as we saw this morning could have a major affect on all financial markets should something concrete develop. As the likelihood of conflict increases, more and more world investors are going to turn to gold. At some point, the cabal’s price-capping will do no good at all.
The US has created a real problem for itself and not an easy one to resolve. We attack Iraq under misguided pretenses and find out it has no weapons of mass destruction. In doing so 1464 US soldiers have been killed and over ten thousand have been maimed and wounded. Our military, as is well known, is stretched very thin.
The results of the recent elections were both predictable and disturbing. Iraq’s new leadership structure suggests it will move closer to Iran. It is ironic that we helped Iraq in the late 80’s to take on Iran and prevent its influence from spreading. Now, we have helped them become closer together.
In further irony, the world tension these days is over the other two "Axis of Evil" countries which have a nuclear bomb, or are acknowledged to be close to having one. So what to do? This is not good, nor likely to get any better in the months to come either. The inevitable increased tension is going to send even more investors gold’s way.
