Let's play "what if" for a moment.
What if the GLD and SLV funds were set up to crash the metals markets at just the right moment in time.
Aside from using their massive holdings in gold and silver to manipulate prices, what if they were created entirely with another purpose in mind?
For instance, what if the White House, in an emergency, declared, let's say in September, that the sale of all strategic metals would incur a cap gains tax of 90% starting Jan 1st of the next year?
This would obviously signal a stampede to the exits for all of the hedge funds and individuals that have invested in GLD and SLV. The forced selling by these ETF's would cause a crash in these papergold markets.
Obviously, JP Morgan and company would be aware of the coming legislative Blitzkrieg and would be positioned accordingly. And, with the obligatory piling on of naked shorts into the selling frenzy, we see a historic short term selloff in metals prices.
And, what if, as GLD and SLV sell their hoard, the Treasury buys it all up, with an end game in mind of ditching the Federal Reserve and starting circulation of currency backed by the Treasury and it's newly enhanced pile of metal?
Stranger things have happened.