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Gold: Artificial Interference or Market Forces?

Commodities / Gold & Silver Sep 30, 2008 - 09:18 PM GMT

By: Brian_Bloom

Commodities Note the gap which manifested this morning


The title of one of my most recently published articles on gold (Sept 23 rd ) was:

“A Deceptive and Dangerous (Gold) Market”

Below is the relevant chart from that article:

The “hard” fact is that at no time in the past week has the gold price risen above the top falling blue trend line

At its current price of $872.42/ounce, the gold price is below it 42 week MA; and the 20 week MA is still below the 42 week MA.

There is no question that – at least in past week, during which the financial crisis has been manifesting – the gold market has been a “dangerous and deceptive” market.

The forces at work here are not trivial. On one side is the “Gold is Money” crowd – willing the price up. On the other side is the “Establishment” crowd – willing the price down.

But we should not forget the leveraged traders. Those who are borrowing money and “speculating” that the gold price is about to explode upwards.  Of course, there will also be leverage traders betting that “the house” will win.

Statistically speaking, the house always wins in the end. What the Gold is Money crowd (and the bullish speculators) are betting is that the bank is going to break.

The question I ask myself is this: Has the world gone insane – that there are people out there who are oblivious to the risks of  “actively willing” a collapsing world financial system so that they may profit from a sharply rising gold price; or that their egos may be stroked?

It blows my mind that anyone could be so irresponsible.

I will be taking a week's break up the coast.

By Brian Bloom

www.beyondneanderthal.com

Beyond Neanderthal is a novel with a light hearted and entertaining fictional storyline; and with carefully researched, fact based themes. In Chapter 1 (written over a year ago) the current financial turmoil is anticipated. The rest of the 430 page novel focuses on the probable causes of this turmoil and what we might do to dig ourselves out of the quagmire we now find ourselves in. The core issue is “energy”, and the story leads the reader step-by-step on one possible path which might point a way forward.  Gold plays a pivotal role in our future – not as a currency, but as a commodity with unique physical characteristics that can be harnessed to humanity's benefit. Until the current market collapse, there would have been many who questioned the validity of the arguments in Beyond Neanderthal. Now the evidence is too stark to ignore.  This is a book that needs to be read by large numbers of people to make a difference. It can be ordered over the internet via www.beyondneanderthal.com

Copyright © 2008 Brian Bloom - 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.

Brian Bloom Archive

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