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Who is messin' with gold?

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Listen to Bob Hoye

Bob Hoye is the best in my book for analyzing market moves. He has been dead-on lately, predicting the move up in the dollar index, the increase in the gold/silver ratio, and what that signifies... Check it.

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"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

He's very

calm.

J J J J JIVE TALKING...

J J J J JIVE TALKING...

“Defiance of God’s Law will eventually bring havoc to a society.” - Dr. Ron Paul

SteveMT's picture

In a panic, people look for security.

They are buying dollars, for now.
When the dollar goes the same way as the other world currencies, then metals will be highly sought after, by default. There will be nothing left for people to place their wealth into. But then it will be too late and unobtainable at any price.

This is an excellent buying opportunity for all metals.
We are just a few steps away from total financial chaos.

"People" are not doing a lot

"People" are not doing a lot of the trading these days. After seeing their 401(K)'s and whatnot decimated, people are very leery. Or out of work. It's all sovereign wealth funds, hedge funds, and computers. Most of the volume on the major markets is now computers doing high-frequency trading. They might hold a position only milliseconds.

The Big Players try to profit from leverage - that is to say, gambling with borrowed money. Lately they were borrowing dollars, sometimes to invest in money market funds in other currencies (the "dollar carry trade.") When those plays go bad, the gamblers must "unwind" the positions. That means paying back the borrowed dollars. They must sell whatever they can to raise the US cash. The dollar rallies, particularly vs. other currencies. That happened in a big way during the previous market meltdown. Gold dropped to 681. The S&P 500 followed, reaching a low of 667 four months later. It is interesting to note that after the initial decline in gold, it rallied while the stock markets plummeted.

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"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

the Dollar...

It's a race to the bottom between the fiats.
The EUR just happens to be doing WORSE than the dollar.
Unemployment today was USD negative... it SHOULD have weakened.... but the EUR is doing SO bad (Greece etc.)...
that the Dollar strengthened against ALL currencies.
Gold (for now) is on an inverse of the Dollar...
Dollar strengthens? Gold plummets. vice versa.
The dollar is what's driving the gold spot prices.

The dollar is NOT driving the metals

If the action wasn't being manipulated
gold would be at least $2k NOW. Silver would be $50. What the dollar did/does wouldn't matter UNLESS the economy went up with it. THAT will happen in 10
or 20 years...maybe.

All the usual suspects

The big commercials, goldman sachs, jp morgan, hsbc act at the behest of the govt to rig the market. The gold market has the worst manipulation. They use paper gold futures to set the gold price, short it then sell their futures off while the govt helps with the take down by filling the media w/dollar positive spin, causing an avalanche of paper gold selling. The price is manipulated 24 hrs a day, with other govts helping manipulate.

Did they also manipulate

Did they also manipulate every stock on the Dow 30 except for Cisco? The S&P 500? The NASDAQ? Silver? Oil?

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"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

But,of course !!

It is ALL manipulated !!

GOLDESSENTIAL (London) –

GOLDESSENTIAL (London) – COMEX February Gold Options (EGCG10) are expiring in 5 days (January 26th), with open interest in the $1,100 an ounce strike currently drawing the most attention.

To summarize the rest of the article:
The call and put combined open interest at the $1,100 an ounce strike price on Tuesday January 19th was 21,830 lots, of which 60.44% were puts, 39.56% were calls. Since December 31st, 2009, the EGCG10P1100 (put)
contract has seen a rising open interest of 31.55% to 13,196 lots (equivalent to about 41 metric tons), whereas the EGCG10C1100 (call) has seen open interest declining 5.58%, to 8,634 lots.

----------------------------------------------
We know what happened. If the April gold put option keeps rising, gold may be below $900 by March 25th. Politically this makes sense in order to push Obama's budget thru, but right now $1200 is winning.

But I haven't been following this long enough to know how often they exercise their options or what they do to keep others from figuring out what their next move will be.

This is what Bob Chapman said

This is what Bob Chapman said on the subject on his show in Oct:

Oct 30 09: The Fed thru the primary trading mechanism which is, there’s 21 dealers that deal consistantly every day w/ the gov and The Fed, and they have been given outrageous amounts of money along w/ other banks and insurance companies. And all of that money is being funneled into the stock market and that’s why it’s staying where it’s staying.

Oct 20 09 the stock market was driven up by the Fed dispersing 12.7 trillion to banks and brokerage houses all over the world with instructions to use leverage, go into the market and drive everything up.

He's not perfect, but his inside info is interesting.

Margin calls. The stock

Margin calls. The stock market was down 3%. Silver was hit worse. The G/S ratio closed at 69.71 after hitting 72.81 during the day. The G/S ratio has been signaling trouble for some time now.

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"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

Yeah,the ratio tells

us that the "fix" is being heavily applied to little ol' silver, which
happens to be a BIG ol' thorn in
JP's butt

Ya got me

Yeah, it was me. I was just messin' around. I'll stop now.

;)

The herd was on the loose today.

You know, the Dollar vs Euro dance. Problem is, they didn't hear that we are on par with Greece, the bottom member of that cartel. LOL re: your comment.