Gold Trader: “The Manipulation Is Still Alive And Active In The Market”

[Serpo]

Gold Trader: “The Manipulation Is Still Alive And Active In The Market” (http://bullmarketthinking.com/gold-trader-the-manipulation-is-still-alive-and-active-in-the-market/) November 21, 2013 | By Tekoa Da Silva







http://bullmarketthinking.com/wp-content/uploads/2013/09/a-puppeter.jpg
Following a day in which ‘taper-talk’ forced gold through the downside level of $1251, recent interview guest and technical gold trader Gary Savage shared some interesting commentary Wednesday night to subscribers. As a recap, Gary articulated a market thesis here last week, in which he stated that gold appears primed for a short-term crash to the $1000 level (http://bullmarketthinking.com/gold-trader-gold-signaling-manufactured-crash-over-next-30-40-trading-days/). While just a thesis of possibility, Gary notes that small signs in the gold market suggest another round of short positions have been built, which will profit wildly from an overnight smash. Whether or not that occurs remains to be seen. Following this potential smash, Gary expects a near-immediate run to the $1500 level and beyond, as hedge fund managers flip short positions to the long side. Commenting towards trading action on Wednesday night, Gary noted that: “The manipulation is still alive and active in the market. I’ll say it again, they didn’t come this far to just give up. Now that gold has broken through $1251… the odds are very high that we are going to see a full test of the $1179-$1200 zone sometime in the next 5-6 days. Once that happens the gold market will be set up for a final manipulation to break the June low and trigger all the stops below that level. It will almost certainly come premarket just like it did this morning. Maybe even in the middle of the night so traders wake up to massive losses. This would cause the selling to cascade into a waterfall crash. I know there are a lot of traders and analysts who think we can’t see a move that big that quick but I’m telling you the manipulation is setting the gold market up for exactly that: http://bullmarketthinking.com/wp-content/uploads/2013/11/gold-image.png (http://bullmarketthinking.com/wp-content/uploads/2013/11/gold-image.png)
(click to enlarge) This has been a large and very lengthy consolidation. If it is broken on the downside the selling pressure is going to be huge.” To review Gary’s short-term crash thesis in its entirety, his last interview is available by clicking: HERE



http://bullmarketthinking.com/gold-trader-the-manipulation-is-still-alive-and-active-in-the-market/ (http://bullmarketthinking.com/gold-trader-gold-signaling-manufactured-crash-over-next-30-40-trading-days/)

[Son-of-Liberty]

I have mentioned this before in the daily gold thread.

The manipulators are well versed in technical analysis and they know that traders rely heavily on it as a tool. This makes it very easy for them to shape perceptions of where the future gold market is heading and they can manipulate PM's up to the point where physical shortages are so obvious that majority realizes the paper price is obscene.

The bitch of it is that they don't even have to throw that much money at it, just nudge it in the direction they want and speculators and traders do the heavy lifting.

[mick silver]

how many time do people buying paper gold have to buy before they learn they cant make a dime doing it , only the ones doing the setup can , dont they see this yet

[Son-of-Liberty]

how many time do people buying paper gold have to buy before they learn they cant make a dime doing it , only the ones doing the setup can , dont they see this yet

Guess not mick. There's a fool born every minute.

[gunDriller]

I have mentioned this before in the daily gold thread.

The manipulators are well versed in technical analysis and they know that traders rely heavily on it as a tool.

i don't understand why the traders don't admit that TA tools developed for free markets do not accurately model highly manipulated markets.

however, as Dan Norcini has pointed out, they "just want to make money" - short term.

i can only conclude that the short term traders are making money, most of the time.

[mamboni]

I am salivating at the thought of $1,000 gold. One last time to add a big pile of gold to my horde. The west is being looted of its gold bullion as unscrupulous traders with FED supports short the paper gold market to flush the longs out of the gold ETFs, then redeem the shares for physical bullion which in turn is sold to the east for premia of up to $500 per ounce. These vultures are literally gutting the reserve base of the United States and Europe purely for profit. In a sane world with rule of law, Bernanke, Dimon and Blankfein would have been arrested and tried for high treason long ago. In any event, there is no limit to how low the paper gold price will be pushed except when the physical supplies of the western vaults are virtually exhausted. The very strong hands, the old money, will never sell their gold in the vaults. Some are moving it into private vaults for fear of nationalization. Rest assured that China is accumulating most of this bullion, tens of thousands of tons, whilst rapidly expanding bilateral currency swap agreements with over 23 countries and regions at last count, paving the way to a freely convertible yuan and the forme fruste of reserve currency to dethrone the dollar. When the day arrives, probably within 3 years, gold will skyrocket in dollar price, and the yuan will be set free from the dollar peg and revalued much higher than today. Do not sell your gold. It is, literally, money in the bank. The dollar price of gold is completely irrelevant if you are long gold. This is how it's going to go down. This is the common thread in the analyses of Jim Willie, Peter Schiff, Jim Sinclair, Max Kaiser and Jim Rickards, damn good company to be in for the ride.

[Neuro]

I totally think this may happen now. Question is where will silver be then? $15? Maybe even as low as $12... Anyway the question is academic, there will be no physical metal available anywhere near those prices, if at all! I think the maximum downside to physical silver bought now, would be $2-3... Load yer boats up Captains...

[aeondaze]

I don't think it will go below $18 and wouldn't be suprised if this was it or it only went down to low $19, however I'm not sure it'll even go down to $17

The last smackdown (which was momentus in nature) only made it down to mid $18.5 from recollection but hell, this market is a mad dog.

They've managed to get everyone on song talking down the siamese twins and might be happy in the knowledge they've busted the balls of anyone thinking of outlahing hard earned cash (which the serfs are in scarcity of) for worhtless metal.

Case in point. I was at a do the other weekend and the host pipes up and says, "yeah, we got half way through the bathroom renovations when we ran out of cash (whilst serving up a cake that cost $150), then another couple chimes in "us too!"

For the love of god, I swear these people don't just live on a completely different planet, they exist on a whole other plane of existance, sometimes its actually quite eery.

Anyhow, this might be best pickings now...? \uu\

[Neuro]

Aeon, yes the last smack down was momentous, this one hasn't yet started building momentum, it's been slow. Sure it is possible we have already reached the low, but I doubt it. The thing is in 2008 smack down we came to the point were silver was practically unavailable, and we haven't seen that yet, and I don't think we'll see the low before that happens...

[aeondaze]

Aeon, yes the last smack down was momentous, this one hasn't yet started building momentum, it's been slow. Sure it is possible we have already reached the low, but I doubt it. The thing is in 2008 smack down we came to the point were silver was practically unavailable, and we haven't seen that yet, and I don't think we'll see the low before that happens...

I don't doubt that it could well play out like 2008 and we're staring down $9, I would definately look towards a sizeable purchase. But since then inflation has been a bitch, consequently $20 is about the limit of production costs for the miners. Any further and you basicaly disrupt the market to such an extent that they may never return, at least not for a long time. During 2008 production cost was about $10 an ounce. So if we drop back to say $12 or $13 its equivalent to a 2008 smackdown of $5 and seing how supply was back then, it would've evaporated instantly overnight and possibly for quite some time.

[Horn]

Dollar plunge after christmas or sooner, anyone?

after the dollar plunges they move everything out of the larger market along with tax to support it.

PM bumps up but appears near even year over year. I say flat until then.

[Neuro]

I don't doubt that it could well play out like 2008 and we're staring down $9, I would definately look towards a sizeable purchase. But since then inflation has been a bitch, consequently $20 is about the limit of production costs for the miners. Any further and you basicaly disrupt the market to such an extent that they may never return, at least not for a long time. During 2008 production cost was about $10 an ounce. So if we drop back to say $12 or $13 its equivalent to a 2008 smackdown of $5 and seing how supply was back then, it would've evaporated instantly overnight and possibly for quite some time.
No I don't think $9 is a possibility. $12, maybe in a fast spike down, like it went to $8.50 in 2008, but a day or so later it was around $10 again, but really inventory didn't start coming back at reasonable premiums until it was above $12.50... So I would guess the mining costs then was around that, so it went like 35% below the average mining cost then. If $20 is the mining cost now -35% would get us to $13/oz, and yes you wouldn't be able to get any metal in any widely recognizable form, below $18, possibly a 1000 ounce bar for $16.50, or so, and that shortage would drive the next leg upwards...

We'll see soon I think, quite possibly we have already seen the bottom, but I haven't seen any conviction in buying yet, like I saw when the price dropped below $10 in 2008, people were screaming for silver then and none was to be found...

[mick silver]

you will never get silver for 9 bucks , repeat never . the mark up at most places right now are almost 5 bucks over the price for eagles

[mamboni]

I am salivating at the thought of $1,000 gold. One last time to add a big pile of gold to my horde. The west is being looted of its gold bullion as unscrupulous traders with FED supports short the paper gold market to flush the longs out of the gold ETFs, then redeem the shares for physical bullion which in turn is sold to the east for premia of up to $500 per ounce. These vultures are literally gutting the reserve base of the United States and Europe purely for profit. In a sane world with rule of law, Bernanke, Dimon and Blankfein would have been arrested and tried for high treason long ago. In any event, there is no limit to how low the paper gold price will be pushed except when the physical supplies of the western vaults are virtually exhausted. The very strong hands, the old money, will never sell their gold in the vaults. Some are moving it into private vaults for fear of nationalization. Rest assured that China is accumulating most of this bullion, tens of thousands of tons, whilst rapidly expanding bilateral currency swap agreements with over 23 countries and regions at last count, paving the way to a freely convertible yuan and the forme fruste of reserve currency to dethrone the dollar. When the day arrives, probably within 3 years, gold will skyrocket in dollar price, and the yuan will be set free from the dollar peg and revalued much higher than today. Do not sell your gold. It is, literally, money in the bank. The dollar price of gold is completely irrelevant if you are long gold. This is how it's going to go down. This is the common thread in the analyses of Jim Willie, Peter Schiff, Jim Sinclair, Max Kaiser and Jim Rickards, damn good company to be in for the ride.

Bud Conrad explains the gold price suppression perfectly: who is doing it and why. It jibes perfectly with my post above.

Executive summary

Two entities benefit from gold price suppression, for now:

1. JP Morgan suppresses gold price through naked paper shorting with the blessing of the FED and US government because a low gold price provides cover for the FED QE program. Also, JP Morgan flushes out GLD shares and takes 70% of the physical gold offload at delivery, 70%!!!!, and sells that gold to Eastern investors (Chindia et al) for a sweet arbitrage profit.

2. China is happy to accumulate gold at these ridiculously cheap prices and is also operating in the futures markets to suppress gold. So gold suppression is very much an inspired deal, between western banks that profit from the sale of the gold (albeit destroying the reserve base of the United States in the bargain) and China that is accumulating gold at bargain basement prices. When China revalues gold, the higher price will more than compensate any losses on FOREX (dollar) holdings.

3. Gold will hit $10,000.


http://www.youtube.com/watch?feature=player_embedded&v=SSeOVf0D-VQ

[Neuro]

Yes this could totally happen. China Devalues and fixes its currency against gold, today it is what? Around 10.000 yuan an ounce? Make it 30.000 Yuan and all the worlds gold will flow towards china. They can keep their peg against USD at current level or even revalue. This is what FDR did and US got all the gold in the world, with a huge sucking sound!

[Horn]

What's wrong?

The CFTC promised they would propose to setup a review to consider restrictions.

Its just a matter of time now...

[gunDriller]

how many time do people buying paper gold have to buy before they learn they cant make a dime doing it , only the ones doing the setup can , dont they see this yet

actually, Dan Norcini makes money buying & selling paper gold and silver - but he doesn't talk about the details of his trading positions.

[mick silver]

the sucking sound you hear is the rich taking what left in this country and moving it to china

[Spectrism]

People could be dumping PMs to pay up on debt. This is rumored to be the case of Germany.