Waiting Through Prototypical Cartel Shenanigans, for the Next, Inevitable Precious Metals Upleg
By: Andrew Hoffman
GoldSeek.com
Monday, 25 July 2016
It’s Monday morning, and the Yen/dollar exchange rate is unchanged from Friday’s close. Thus, gold and silver should be unchanged, too – right? Which I say facetiously, as the premise I wrote about Thursday, based on 15 years of tick-for-tick Precious Metal experience, is again proven true. Which is, the “trading relationship” between Precious Metals and the Yen/dollar – just like their fundamental relationship – is pure fiction. At least, the ridiculous notion that the Bank of Japan’s attempts to destroy the Yen – with, say, “helicopter money,” is LOL, “bearish” for gold and silver.
Frankly, it doesn’t take rocket science to see that when the Cartel has the (temporary) upper hand – which, per yesterday’s article, in which I highlighted the “commercials”’ record short position, they are in desperate seeking – they create a “whatever is down” algorithm scheme, in which paper PM prices are conveniently linked to whatever the day’s “decline du jour” might be. Which in turn, enables the added benefit of a dumbed down, in many cases captive MSM to purposely – or in some cases, inadvertently – spew the anti-PM propaganda they so desperately rely on. Such as, for instance, if oil prices decline, saying “gold is down due to a broad commodity decline.” Or, if stocks are down (will that ever be allowed?), “gold down due to deflation.” Or, if the yen is down, “gold down because the carry trade is safe, so risk-off assets are being sold.” Or, if bonds are down, “gold down, because the economy is strong, and the Fed will raise rates.” Or heck, if bonds are up, good old “gold down, due to deflation.” Etc, etc., etc.
Why am I so agitated this morning – as if I haven’t been put through the Cartel ringer (literally) thousands of times already? Because every time prices are blatantly smashed “decline,” the so-called “good guys” are out in force with their “short-term bearish, but long-term bullish” calls – utilizing everything from “technical analysis”; to “proprietary analysis” – like yen/dollar relationships; toward their universal goal of selling newsletters, of being viewed as an “expert.”
Heck, I’m essentially 100% sure that one in particular plays this game with the thought process of “the Cartel typically wins; so, in order to appear less ‘gold-buggish,’ I’ll continue to assume historic patterns will prevail – but neglect to give a specific reason, so as to maintain a newsletter-subscription-price-worthy aura.” In other words, my friends – particularly now that we are in a bonafide Precious Metals bull market, in all fiat currencies – it’s time to, for the first time, resist the urge to believe some new “reason” exists for short-term weakness.
The Rest…HERE
