Best of the Week
Most Popular
1. Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - Nadeem_Walayat
2.Gold Price Focusing on May Cycle Bottom - Jim_Curry
3.Silver, silver, and silver! There’s More Than Silver, People! - P_Radomski_CFA
4.Is the Malaysian Economy a Potemkin Village - Sam_Chee_Kong
5.Stock Market Study Shows Why You Shouldn’t “Sell in May and Go Away” - Troy_Bombardia
6.A Big Stock Market Shock is About to Start - Martin C
7.A Long Term Gold Very Unpopular View - Rambus_Chartology
8.Stock Market “Sell in May and go away” Study When Stocks Are Down YTD - Troy_Bombardia
9.Global Currency RESET Challenge: Ultimate Twist - Jim_Willie_CB
10.The Coming Silver Supply Crunch Is Worse Than You Know - Jeff Clark
Last 7 days
Gold, US Stocks and Bonds - 26th MAY 18
Climate Change Canaries and Our Changing Climate - 26th MAY 18
Gold Junior Stocks GDXJ ETF Fundamentals - 26th MAY 18
What to Expect at a Critical Stock Market Point: End of a Wave 2 Rally - 25th May 18
Merlin Passes Top Tips for Buying and Using Premium vs Standard, Theme Parks UK - 25th May 18
Trump “Victories” on Trade are Anything But - 25th May 18
Crude Oil: It’s Here! - 25th May 18
Stock Market Distribution Pattern Revealed - 25th May 18
Stock Market Topping - Everything Looks Rosy at the End of a Trend! - 25th May 18
Trump Puts North Korea Nuclear WAR Back on Track as Plans for Nobel Peace Prize Evaporate - 25th May 18
Insane EU GDPR SCAM Triggers Mass Email Spam Attacks! - 24th May 18
Stock Market Higher Again, but Still No Breakout - 24th May 18
Study: Slowing Global Economic Growth IS NOT Bearish for U.S. Stocks - 24th May 18
What if This Week’s Rally in Gold is Already Over? - 24th May 18
EUR/USD – Reward for Bears - 24th May 18
5 Terrible Trading Mistakes That Rookie Investors Keep Making - 24th May 18
More Clarity for the Short Term for Bitcoin Price - 22nd May 18
Study: A Rising and Strong U.S. Dollar Isn’t Consistently Bearish for the Stock Market - 22nd May 18
Gold, Silver & US Dollar Updates with Review of Latest COTS - 22nd May 18
Upside DOW Stock Market Breakout May Be Just the Beginning - 22nd May 18
5 Reasons Why Forex Trading Is Becoming Such A Big Deal In SA - 22nd May 18
Fibonacci And Elliot Wave Predict Stock Market Breakout Highs - 21st May 18
Stock Market Ideal Cycle Low Near - 21st May 18
5 Effects Of Currency Fluctuations On The Economy - 21st May 18
Financial Conditions are Still too Easy for the Stocks Bull Market to End - 21st May 18
US Stock Market Elliott Wave Predictions for 2018 and Beyond - 20th May 18
Are You Still Fearful of Cryptos? - 20th May 18
US Stocks - Why I am Short-term Bearish, Medium-term Bullish - 20th May 18
Looking for a Turn in Gold Price - 20th May 18
GDX Gold Mining Stock Fundamentals 2018 - 19th May 18
Semiconductor Stock Market Canaries: Chirp, Warble… Soon a Croak and Silence? - 19th May 18
Three Drivers of Gold Price - 18th May 18
Gold Market in First Tertile of 2018 - 18th May 18

Market Oracle FREE Newsletter

Trading Lessons

Why Gold Price Suppression Can NOT Continue

Commodities / Gold and Silver 2014 Jan 11, 2014 - 08:04 AM GMT

By: DeepCaster_LLC

Commodities

“Market data provider Nanex in Winnetka, Illinois, tonight produces proof that Monday’s smash down in the gold futures market was not a mistaken ‘fat finger’ trade but the product of a high-frequency algorithm trading program painstakingly designed to take the market down. Nanex’s report, with great charts, is here: http://www.nanex.net/FlashCrash/OngoingResearch.html ” www.gata.org 01/08/2014


“…I don’t see why they can’t just keep doing this. After all, with each smash it gets easier for them to cover their short positions.

“Exposing them by somebody standing for gold delivery which can’t be delivered, is the way, but seems less and less likely. After all, Germany asked for gold delivery and didn’t get it. Nothing much happened!”     Private Communications to Deepcaster

The evidence that a Cartel (Note 1) of Central Bankers and Allies has been suppressing the Prices of Gold and Silver (so as not to have A Real Money Competitor, to their Fiat Currencies and Treasury Securities) has been building for years.

Indeed, the evidence is so overwhelming that it is increasingly making its way into certain Main Stream Media.

But the foregoing private communications to Deepcaster raise a Key Question. “Why can’t they just keep doing this?”

Many of us Gold Partisans have wondered the same thing, especially in light of the fact that Germany asked for its Gold back and did not get it.

But the Answer is Clear. Gold Price Suppression can not continue, which raises the questions “Why?” and “How much longer will it last?”

It can not continue indefinitely because available Physical Supplies are being drawn down much faster than Production plus “Scrap” can replace. We and others have noted the dramatic drawdown in Comex Supplies Registered (available) for Delivery. And depending on time and the Particular Market the spread between the Paper Price and the Higher Price for Deliverable Physical is often Quite Substantial.

Indeed, the “shortage” of Physical is already so substantial that Germany asked for its Physical to be repatriated from New York, and all they got was a Promise for seven years of Incremental Deliveries.

So given the foregoing evidence of Price Suppression, plus the Sovereign Nation of Germany’s Inability to repatriate its own Gold, what chance is there that the Price Suppression will end soon or ever?

Answer, a Good Chance of “soon.” Consider first The Challenge: every National (or Regional, as the Euro) Fiat Currency Printer in the World has an interest in attempting to delegitimize Gold and Silver as Real Money, by suppressing its Price. India’s Central Bank, after all, has (against popular sentiment) piled on Tariff after Tariff to slow the Importation of Gold.

But the Draw Down of Physical Continues, led by China, the World’s largest Importer and Producer. And China does not export Gold.

But One Key that the Price Suppression must end was Provided by another Communicant

“That’s a great question. Why can’t they just continue to do this? Perhaps they are loading up on physical at these reduced prices (most particularly Chinese interests are doing so) and then they’ll let the price go up?”

Private Communications to Deepcaster

China is clearly moving toward making a Gold-Backed Yuan the World’s Reserve Currency and is likely temporarily Complicit in facilitating the “low” current Prices so they can continue to Buy on the cheap.

But given the Physical Drawdown this can not last.

The German Repatriation Attempt Failure is a superb example of just how severe the Available Physical Supply Shortage is. (Germany was undoubtedly “leaned on” to accept Promises of a seven year Repatriation Scheme by its and the European Central Banks’ Central Bankers in the same way the US Taxpayer was leaned on to provide the Multi-hundred Billion Dollar Bank Bailout in 2008 – “The whole System will collapse unless you do it our way” is the likely [fallacious] “Argument”).

And the Regulators have proven themselves useless at best, and complicit at worst.

“MIDAS NOTE: So why and heck is it that someone doesn’t demand the identity of who pulled this trigger and call them out?

“What a lame dead regulatory/investigative world we have in the US.”

                  LeMetropoleCafe.com

But the Reason the Price Suppression can not continue much longer despite Cartel Suppression attempts is found in the recent Headline

“One week into 2014 UK Royal Mint Runs out of Gold Coins”

“JBGJ understands that the main market for these coins is the Gulf and India (H/T GMS). Very likely the demand surge reflects Indian smuggling off take.”

         JBGJ 01/09/2014

China and “Retail” Investors in the Gulf, India and around the World are implementing an End Run around the Cartel’s Paper Price Suppression Scheme. Therefore, Expect more Delivery Failures, followed by Massive Launches up in Price.

The “when” can be answered by Monitoring the Markets and Physical Flows as Deepcaster’s Reports and Alerts to its Subscribers reflect.

No surprise then that even the “smart” Establishment Money and Opinion is shifting to a “Buy Gold” Perspective. Note The Gartman Letters’ Admonishment, and JBGJ’s correct observation:

“…we note the ‘reversal’ to the upside two weeks ago which still obtains even despite the ‘attack’ upon gold earlier this week when prices fell $30/oz. in a matter of moments. The fact that the weekly reversal in gold’s favour holds is impressive….as we watch gold buying continue at a heady pace in China and even too in India despite the latter’s government’s attempt to quell demand, we are impressed.

“…our propensity to act is rising.

           The Gartman Letter

“While TGL is generally unpopular amongst gold friends, JBGJ’s observation is that the service has a pretty good buying record.”

JBGJ, 01/09/2014

And there is one more overriding Reason the Gold Price Suppression can not continue. Consider the Headlines and Introduction to Shadowstats.com 2014 Hyperinflation Report.

The Fed-led Destruction of the Purchasing Power of the World’s Reserve Currency, the U.S. Dollar, will leave one “Currency” left standing – Gold.

Extremely Difficult Circumstances in the Year Ahead:

Confluence of Economic and Systemic Crises Should Intensify

With Global Confidence in Dollar Rattled by Uncontrollable Fiscal and Monetary Excesses, U.S. Government and the Federal Reserve Have Limited Options to Address Panics

Heavy Selling of U.S. Dollar Remains Likely Proximal Trigger for Inflation Pick-Up

Developing Hyperinflation Would Push Ongoing Recession into Deep Depression

Physical Gold Remains Primary Hedge for Preserving Wealth and Assets

Nothing is normal: not the economy, not the financial markets, not the financial system and not the political system. The year ahead will be an extraordinarily difficult time, with a confluence of already-intensifying crises and likely panics pummeling the moribund economy, roiling the markets, and destabilizing the financial and political systems. With the federal government and Federal Reserve locked into their respective systemic-destructive fiscal and monetary policies, a related, continuing massive loss of global and domestic confidence in the U.S. dollar, should lead to an outright dumping of the U.S. currency in the global markets, setting the initial stages of a hyperinflationary great depression.

Hyperinflation 2014—The End Game Begins, No. 587: Special Commentary

Shadowstats.com 01/07/2014

Physical Gold and Silver in one’s Personal Possession (NOT in Bank Vaults) are the best Protection. Deepcaster echoes Jim Rickards observation, which we paraphrase, “Those who become aware late, will wake up one day and find there is no Gold available.”

Best regards,

www.deepcaster.com

DEEPCASTER FORTRESS ASSETS LETTER

DEEPCASTER HIGH POTENTIAL SPECULATOR

Wealth Preservation         Wealth Enhancement

© 2013 Copyright DeepCaster LLC - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

DEEPCASTER LLC Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules