May 13 - Gold $869 down $13.90 – Silver $16.73 down 43 cents
The Twilight Zone
"The financial system, once the provider of the American Dream and white picket fences, will start to look more and more like the Terminator, with its steel and glowing eyes revealed after its flesh has been ripped off." … James Howard Kunstler
GO GATA!
The feedback I received today from Café members was unusual in that most of it made mention that something must REALLY be wrong out there in US financial land for The Gold Cartel to go to such great lengths to take gold down so sharply. As you know, this has been a theme of mine for many weeks (months actually), and developments over this period of time give greater credence this is the case.
Hardly a day has gone by this year that the financial news has not been lousy and, as an aggregate, deteriorating. Certainly inflation is one of the leaders of the pack in this regard, which should have gold flying, which, of course, is why The Gold Cartel has sent gold packing.
This complete disconnect between the gold price action and everything else has completely discredited those who have pooh-poohed what GATA has been telling everyone who would listen for nearly a decade. Anyone who does not get it by now that the key to the gold price is how well the physical market can hold up against what The Gold Cartel throws out is totally clueless about the real gold deal.
The name of the game these days, all over the world, is INFLATION (which is very gold friendly), and yet the Fed and US is powerless to fight it because the entire US financial system could implode at any time. IT IS THAT FRAGILE. "M" hits the nail on the head re today’s market travesty…
Hi Bill,
All the inflation stories out of Europe have been horrible. UK CPI came out at 3%y/y versus an expectation of 2.6% while the broader RPI came out at 4.2%. ECB's Noyer warned of inflationary pressures and US import prices rose 1.8%m/m versus an expectation of 1.6% and Gold is down $20!!!!
Talk about killing the messenger! ![]()
Rgds,
M
Based on the way gold is trading, you would think we are going into a major deflation. The problem with that line of analysis is the other financial markets and commodities are trading in opposite fashion…
Bernanke speech ,read my lips...