Oh, how I would like to launch into one. What we have seen recently, and what we are currently witnessing, is the most blatant and disgusting manipulation of the metals I've seen. That it is allowed to stand without question by the CFTC, the SEC and the media sickens me to the point of nausea.
However, for the sake of our none-Fbomb-loving readers and in the spirit of inclusiveness, I will do my best to avoid lacing this post with the profanity it deserves. Let's instead just simply lay it out chronologically:
(Before we start, full disclosure: I do not currently have any positions. Heck, I don't even currently have a broker. I do not have an ax to grind regarding trading losses. I'm simply disgusted by the ongoing corruption.)
1) In the wake of the S&P downgrade of U.S. credit, gold rallies from 1650 to 1920 over a period of six weeks, primarily on the back of Cartel short-covering. New longs also enter the gold market as gold and the Swissie are viewed as the only "safe havens".
2) This absence of sellers panics The Cartel. They petition their friends at the CME to raise margins.
3) Gold trades back to 1750 but then rebounds almost as quickly.
4) The rallying Swissie frightens the Swiss and unbalances the currency trade in Europe.
5) The Swiss decide to devalue their currency by 10% by pegging it to the euro. Knowing this will cause a steep rally in the only remaining "safe haven", a dastardly plan is put into place.
6) The Swiss announce their plan in the overnight (U.S.) following a U.S. bank and government holiday.
7) Five minutes before the announcement is made, the Swiss National Bank sells a massive quantity of paper gold, causing gold to drop over $50.
8) This has the desired, counter-intuitive effect of suppressing what should have been a massive gold rally on the back of the Swissie devaluation.
9) This also "saves" The Cartel from a runaway gold price that would have likely smashed through $2000.
10) The Cartel springs into action, forces the downward momentum, gets some additional margin hikes out of the CME and down goes gold, falling from 1923 to 1525 in 15 trading days. Over the same time period, JPM puts the wood to silver, taking it from 44 to 26.
11) All the while, the world geopolitical and economic landscape continues to deteriorate.
a) U.S. economy in toilet. U.S. government total debt reaches $15T. Blah, blah, blah.
b) Europe in crisis. Dexia, Greece, Italy, France. Blah, blah, blah.
c) The Middle East on the brink of war. New IAEA report shows Iran close to nuke. Blah, blah, blah.
d) Chavez repatriates 100 tonnes and other central banks are massive net buyers of gold. Blah, blah, blah.
e) Rioting, protest and insurrection is seen around the globe. Blah, blah, blah.
f) Blah, blah, blah.
12) Gold and silver rebound. Gold back to 1800 and silver back to 35.
13) MFing Global blows itself up, effectively removing, seizing and/or freezing thousands of futures traders accounts. This destroys confidence in paper markets and removes potential buyers.
14) MFing Global assets seized and stolen by JPM to be liquidated and confiscated for their own use.
15) As we approach the December option expiry, JPM and other Cartel members begin to actively sell and suppress gold and silver. Despite increasingly strong fundamentals, the PMs are pressed lower, perhaps to the point of collapse.
Will they collapse? That is the question, now isn't it. It certainly looks like they might.
I'm on record as looking for a November high in gold between 1780 and 1840. I split the difference and called it 1810. The high, so far is 1805. That may be as close as we get. With all of the uncertainty today...crude over $100, the impending failure of the "super committee", the future of the euro, just to name some...gold is down another $30. It is obvious that there is currently a deliberate and intentional manipulative event taking place. Where it stops, nobody knows.
Could paper gold and silver go lower from here? Heck yes they can! The evil C/C/C has:
1) Raised margins to nearly untenable levels.
2) Destroyed trader confidence and trust by closing MF and stealing clients asstes.
This leaves us with way, way more sellers than buyers and.....down she goes, regardless of the fundamentals.
So, what do you do. You definitely DO NOT trade on the LBMA or the Comex. These disgustingly-manipulated playgrounds of The Cartel will continue to be entirely manipulated against regular investors. They will continue in this manner until they finally collapse from the weight of their sins. WHEN they collapse, the value of physical gold and silver will skyrocket. Therefore, take this time to continue to add physical metal. Speed the demise of The Cartel by using their suppression against them. Take delivery. Add to your stack. Hold your metal in your own two hands. Only by physical possession can you be certain that you truly own it. Only by physical possession will we ever be able to crush the evil, soulless banking cartel. And I want to crush them so fucking badly that I can hardly see straight.
(at least I made it all the way to the end before unleashing the Fbomb)
p.s. All that said, I know many of you are looking for charts, nonetheless. So, here you go.