From www.LeMetropoleCafe.com commentary:
December 13 - Gold $1695.60 down $21 - Silver $32.28 down $1.43
A Totally Different Ballgame Soon / Crime In A Flash
"The function of free speech under our system of government is to invite dispute. It may indeed best serve its high purpose when it invites a condition of unrest, creates dissatisfaction with conditions as they are, or even stirs people to anger." ... Justice William O. Douglas
GO GATA!
A.M. Kitco Metals Roundup: Gold Drops Below $1,700 Following another Mysterious Price Drop in Asian Trading
Thursday December 13, 2012 8:21 AM(Kitco News) - Comex gold futures prices are trading solidly lower Thursday morning, on some fresh technically based selling and on mildly bearish outside market forces. Once again, the gold market suffered a rapid and inexplicable price drop in early Asian trading Thursday, on reported sell stops being triggered. Sell stops are pre-placed market orders to sell if a certain price is hit. That marks the third week in a row of such price declines that occur for seemingly no fundamental reason…
-END-
What to say today after last night’s email missive rant? Nothing worse than sounding like an angry ole man, which I am at the moment. Then again, I am not at all. It’s the Billy Martin thing, who was a former ballplayer and coach of the New York Yankees, and renowned for kicking the bases while arguing with umpires over what he perceived as a bad call. He would kick and kick, get it out of his system and go on from there … letting his emotions be yesterday.
Same deal here. This "mysterious" price tanking is aggravating in and of itself, but also because, again, NO ONE outside of The GATA camp will call a spade a spade and talk about market manipulation. Three weeks in a row, Kitco speaks of sharp price declines in Asia with no fundamental information to explain the price drops. But, would any of their ace reporters, my friend Daniela Cambone included, call up CP or me for a GATA comment? Not on your life … even after we present them with the recently discovered IMF report which virtually says the gold market is manipulated.
Instead Market Watch trots out another know nothing clown, as PRICE ACTION MAKES MARKET COMMENTARY … any commentary but the truth:
Gold set for dramatic correction: hedge fund manager
December 13, 2012, 10:21 AM
Long-term and perhaps even short-term investors of gold could be forgiven for getting rattled on Thursday as the precious metal dropped below $1,700 an ounce .bgChannel, .bgRealtimeChannel, .bgRevision { display: none; } /quotes/zigman/4331913 GCG3 -1.00%, down over $26 in the early hours of U.S. trading.
Get used to it, says Uri Landesman, president of Platinum Partners, a New York-based multi-strategy hedge fund. "Gold was overvalued and it’s going to come down dramatically," he said. And he sees 2013 shaping up as a year where gold will trade in a range of $1,400 and $1,800, meaning current prices are on the high side.
"The Fed is pretty much saying that we’re going to backstop the stock market forever," said Landesman, referring to the Federal Reserve’s prior-day declaration that it wants unemployment in the U.S. — currently at 7.7% — to drop to 6.5% before it raises interest rates again. And backstopping equity markets more or less indefinitely is not good for the precious metal, he said.
"Gold tends to do best if there’s a flight to quality. That’s not the case right now because the Fed is being so accommodative and saying we’ll be propping up gold until unemployment gets to 6.5%. That’s a sharp signal that there’s no reason to fly to gold, because gold is overvalued here."
And as stocks are set to benefit from the new Fed stance, equities and gold are going to detach, he said. "So people who have a finite amount of money are going to go to one asset class or two or three, bonds and stocks and go out of safer havens like gold."
He said his expectations are based as much on technicals as they are on analysis. "They both support the same thing. There’s more downside than upside risk on gold. We’ve been in a 12 to 13-year supercycle. Gold was at $200 an ounce in the late 1990s. It’s had a pretty nice run, if you punch up the chart on gold. What we’re getting now is a standard correction, but it’s going to be a big correction."
Barbara Kollmeyer
-END-
If that is not happy Horse S, I don’t know what it is. But Market Watch will publish what that goofball has to say, yet won’t mention what GATA has explained to them for 14 years and been right about the direction of the price of gold for the last 12 years.
Cannot stress this enough: BLACK IS WHITE AND WHITE IS BLACK in the gold/silver world. The more bullish the fundamentals, or the more bullish the news is, the more The Gold Cartel goes into attack mode. James Mc has brought this to our attention time and time again for some time now. What we are watching The Gold Cartel do to gold and silver at the moment is the best example of that over the last 14 years. As Kitco even mentions, they have done the same drill in Asia three weeks in a row. And the obvious hit job selling on the Comex has been documented in this column day after day, even hour after hour of late.
There can only be one plausible explanation for the gold/silver price action of yesterday and today … after the about as bullish news as the gold world could get which emanated from the Fed yesterday. That explanation is the US Government knows they have NO SOLUTIONS to the US fiscal predicament, no solutions which will be acceptable to the kept in the dark American public and to any politician who wants to be re-elected. The situation is bleak and the Obama Administration/Fed fully intends to go to all out money printing mode, so their first step is to SHOOT THE MESSENGER … which they are attempting to do at the moment.
That attempt will FAIL. And that is because the precious metals physical markets will overwhelm the Gold Cartel’s paper game manipulation raids as demand will overwhelm their available supply. It is that simple. The timing of it all is far from simple. Look out how they have been able to stem the tide over the last year. But still, the price of gold is up over $130 for the year, and that is after they have thrown the kitchen sink at the market. The closing price of silver last year was $27.91. What market has performed better than silver this year, despite JPM and their friends?
My take on what is going on here is that something awful is brewing behind the scenes and the powers in Washington want gold off the favored radar scene when it hits. That is what their selling intensity EVERY noticeable day is telling me. We shall see. But, if that is the case, it should not be long until we find out.
As far as the markets went today, the price of gold was trashed all the way down to $1688 on the Comex. Silver fared much worse, dropping down to $32.19 and breaking support which held for days. Silver broke OUT yesterday on the Comex. We always talk about no follow-through allowed in the precious metals, but this takedown is a bit extreme, even for them. The breakout meant NOTHING, so does this hit job … NOTHING in terms of the big picture and what is coming in the near future.
It is SO important to keep in mind that The Gold Cartel does what they do to affect the thinking of the investing public and to affect their psychology about the precious metals vis-à-vis the US stock market, dollar, and interest rates. That is what this sick game they are playing is all about. No matter how well gold performs year after year, their aim is to put it in the dog house. Love this extremely well written email from a Café member last night after my missive. VERY well written, but totally off the mark in terms of who is going to prevail and why. Take it away Jack:
Re: MIDAS Bulletin: SHOUT OUT: The Cockroaches Are In Trouble ... AND An Opportunity Of A Lifetime
Just mind-boggling. Forget the 1 Tr $$$ cranked out this coming year, alone; instead, focus on one odd feature of it that might not be PERFECT for gold. of course, stocks doin' just fine.
Even if all this conspiracy stuff is true (and I have owned gold through 6 exhilarating and now frustrating years), we may need to face the facts that those in control cannot be dealt with and...THEY win. Why keep fighting it? Why not go with what they are going to let win: stocks, stocks and stocks. They want us in paper and they are going to get us in paper just like FDR did. If we try to hang onto gold after the confiscation order comes down (which I bet will happen as soon as they relay to their bosses that they can't keep the prices down anymore and the fiat is getting ready to get revealed as a sham), we'll never be able to spend it or even show it to anyone without worrying about whether they are feds/snitches. Those that kept gold in 1934 had to hold on for FOURTY YEARS without being able to call on the gold (who knows how long without Jim Blanchard). Not sure I can do that and I don't have kids.
After today and tonight's action, following two QEs in five months, I'm spent. There's no inflation; the stuff is just too manipulated; stocks go up no matter what (except my gold mutual fund - down, down, down); if the mamrket inproves, money leaves gold for stocks; if market worsens, money leaves gold for good old dollars. This has become a no-win; and, even if we "win", it'll be a nat'l/global meltdown where the first thing the central authority will do is ban gold. So, even if we win, we will lose. I see no option, realistically, outside this country. it's all just as manipulated and collectivist as we are becoming, if not worse.
I'm thinking of making contact with Blanchard and Sons and CNI and unloading it all and just putting it all into Fidelity high yield and emerging market and asian bond funds and cash and just forget it. Enough is enough. I'm like the farmers in Shane tired of dealing with Ryker and his gunslinger brought in special from Cheyenne. I don't see SHane on the horizon; I see bernanke, JPM, Hillary, Obama, etc.
***
Hi Jack,
You are WAY too smart to unload your gold and silver here. Somehow I think that every Café member who reads this knows you won’t either.
B
Feeback from an early reader of the unedited MIDAS:
Bill
Im sure it has occurred to you but the same thoughts must be going through many of your subscribers heads...me included! A little hand holding wouldn't be a bad idea explaining why you think Jack has it all wrong. I would never tell the number one gold guy in the world how to run his commentary Take this observation from a pal who has nothing but your newsletters success in mind. The frustration being felt by your loyal followers must be off the charts.
I found Jacks observations very plausible. FWIW and food for thought.
Norm
Love ya Norm, but THEY WIN?
The Gold Cartel is getting their ass handed to them which is why they are going berserk at the moment. They are LOSING CONTROL and they don't know how to handle it ... which is just why they are doing what they are right now.
Win? Them? When I first started this commentary, gold was under $300 and silver was $4 and change, getting into the $3 plus zone at one point. Look at the closing prices today.
Win? What has the DOW done the past decade compared to what the prices of gold and silver have done?
YES, they have won to a fairly big degree with their manipulation of the gold/silver share prices because they have had no physical market to contend with. Us gold/silver share investors are sucking wind at the moment, but that will change in epic fashion. First, when The Gold Cartel and hedge fund allies decide it is time to cover. That will be phase one of liftoff. Phase two will be when the general public comes our way. It will be a sight to behold. Take care Norm and have a blast on your trip.
B
The AM Fix was $1694.75. The PM Fix dropped to $1692.75. The Gold Cartel raid made a significant impact on physical market buyers.
The gold open interest rose 5175 contracts to 438,761. The silver open interest went up 1985 contracts to 144,066. The Gold Cartel, with honcho JPM leading the way, are not happy campers and are taking their venom out on those who are in the hunt to take them on. They won today. But, it will be a totally different ballgame soon.
James Mc…
Crime in a flash
Bill,
Thin-trade Crimex flash crash objectives:
* Create confusion and anxiety in foreign gold markets.
* Terrorize, rout longs who carry overnight positions.
* Terrorize, rout longs attempting to pyramid successful trades.
* Discourage and demoralize ANY long, period.
* Create "volatility", let pundits then disparage trading volatility to public.
* Obliterate sell stops at the easiest possible moment.
* MOPE, MOPE, MOPE.
* Turn it over to MSM to do the rest.
There has never been a flash crash in the history of lumber futures. It would actually be easy to do, with possibly as little as 200 cars, yet it never happens. Why? Because nobody is dumb enough to trade that way. Since gold is in a 12 year bull market if anything you should be seeing flash melt-ups, not crashes. And of course there hasn't been a single thing mentioned in MSM about the likely cause, which is another criminal attack. In fact the quote below from a Reuters article is arguably the dumbest thing ever written about gold. In particular the underlined sentences by the genius at Soc Gen takes the cake.
"The near term risk is a stronger dollar," said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong. "The 'fiscal cliff' is going right to the end, and that could support the dollar and take some shine off gold." The dollar, seen as an ultimate safe haven, is likely to attract investors worried about the uncertainty in the U.S. fiscal situation. A stronger greenback pressures dollar-priced commodities by making them more expensive for buyers holding other currencies."
Huh? When manipulation is the ONLY possibility the boundaries for deceit and lies are endless. The rats are cornered, and are lashing out with their gnarled teeth. Surely this is the late stages of a manipulation that has already had 10 lives.
James Mc ..
What we have just witnessed to that The Gold Cartel’s drive by raid really is a crime in a flash … a crime that is not recognized outside of the GATA camp. As per my latest rants: no free press in America, and no free markets. The mainstream financial market press are just a bunch of ZOMBIES when it comes to the market manipulation subject … not even allowing a he said, she said debate on the issue. That is not allowed by the mental midgets who comment on the precious metals markets.
America is going down the drain. A number of us in the GATA camp think we know why and nobody cares. It is all about spin, staying in power, and making a buck at the peoples' expense. That is the way it is for now
Having worked on my Bulletin last night and getting up early to watch the carnage in the precious metals markets, I took a rare mid-week steak lunch at Chili’s, my local hangout out a block away from where I live to say hello to my friend, Martha, their forever bartender and a great gal. Naturally, I had her put on CNBC on the wide screen to watch the market action. The gold and silver prices flashing on the screen were a downer. But that downer was put in perspective very quickly.
One of Martha’s regulars is the attorney for the Dallas Cowboy football player who killed his best friend last Friday night when he lost control of his car while drunk at 2 AM in the morning. It was reported in the Dallas Morning News this morning that the driver of the car, Joshua Brent (nose guard), had a blood alcohol level at the time of the accident which registered more than twice the legal limit.
This attorney arrived at Chili’s as I was nearly out the door. I saw him surrounded by the Dallas press outside the restaurant, besieged by reporters. Here he is with his client:
http://www.dallasnews.com/sports/dallas-cowboys/headlines/20121213-josh-...
ol-level-more-than-double-legal-limit-during-crash.ece
The point is that life is relative. What the Gold Cartel did today is egregious stuff at its highest level. But, in another month the prices of gold and silver will be much higher and today will be forgotten. This poor soul, Joshua Brent, will have to live with he did to his best friend for the rest of his life. No comebacks allowed on that matter.
Gold and silver are incredible investments at these giveaway Gold Cartel prices. The gold/silver shares are more than incredible down at the levels which so many are trading at. It may sound like a broken record, but it is SO true. It will be a totally different ballgame in the near future. This IS an investment opportunity of a lifetime!
GATA BE IN IT TO WIN IT!
MIDAS