It’s often heard that gold takes the staircase up, but the elevator down. A gold rally would then consist in a gradual process of relatively small but consistent daily upward moves. The gold cartel (bullion banks and investment banks, backed by the FED) would not allow gold to rally over 2% daily.
Once ignited, swoons in precious metals are thought to aggravate by forced liquidation of future long positions and the redemption of leveraged products and bullion ETF’s...
All of this is a mixture of facts and myths, causes and consequences, hidden motives and secrecy, misinformation, manipulation and opportunism. While I can do very little about most of those, I will try to clarify some of the facts in order to eliminate a few of the myths.
... continue reading at the link: Review of gold price volatility
The short term graph has been updated early August. While the broad statistics change very little as time passes by, short term graphs are outdated almost as you prepare them for publication.
A commonly stated explanation for low (or high) precious metal prices is that "low prices are the cure for low prices". The underlying rationale is that low prices impose marginal mine production to close down thereby diminishing global output. High prices would then allow mining companies to ramp up production by bringing on line mines and ore layers that were not profitable at the much lower precious metal prices. These are simplifications, tending to overlook the essential.
Continue reading at Worldwide Mine Productions of Gold and Silver