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  • Why Are Gold and the Dollar Running Together? [View article]
    Gold and USD are running together as there are too many investors who are short both, when USD started to appreciate greatly last year, in the beginning common sense prevailed and GC crashed to 700$ but later investors with billions ( think biggest investment banks, not some stinky hedge funds ) realized that there is too much money at stake on the GC short side and started to buy it.
    USD is too big an animal for any bank except the Fed to sell it when it is in the rally mode, but GC which is mostly traded on COMEX and other futures venues is easy to manipulate.
    Even 1-2 billion $ strategy buying GC constantly can shift a balance of positions to net long, the shorts who can't keep their shorts go out at loss and new shorts enter.
    In general this is very bad for GC price when it will start to be dumped when some other banks will sell physical GC ( 100oz of physical sell equals 10,000oz in futures game ) and we are very near such change in direction as price moves are very fast in Gold, it looks as big players do all they can to prop up the price.But it will all stop when small physical sell order will enter the pit.
    Remember, not investor who buys 1 American Eagle to hide all his wealth in the coin and then writes on SA that he is a gold bug, controls the supply/demand in gold, same as not some conspirator end of the world freak who bought gold stocks that are down 70% controls it.
    The pit belongs to the banks and banks belong to the Fed, also it can be that Fed is happy that some investors are buying GC at this prices and sells it's GC slowly to this big manipulators but in the end THE BOSS will set up everybody and gold will crash.
    I see the gold bug's face when they will face it, the total crash in gold.
    Feb 01 18:27 pm |Rating: +1 -4
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