Yesterday’s sell-off in gold occurred after the Comex floor had
closed for the day. The period of time between when the Comex closes –
1:30 p.m. EST – and the CME’s Globex computer system trading closes for
about an hour – 5 p.m. EST – is one of the least liquid trading periods
of the 23 hour, 5-day trading week. It makes that period of time
susceptible to manipulative price take-downs.
As it so happens, likely not coincidentally, Janet Yellen began speaking about monetary policy
at 2 p.m. EST. She stated that the Fed expects a few interest rate
hikes per year until 2019. Geez, that would take the Fed funds rate up
to maybe 2%? Of course, helped along the by the bullion banks, the hedge
fund trading algos grabbed the sound bytes spewing forth from Yellen and
concomitantly sold paper gold and bought dollars. The dollar spiked up
and gold was taken down to $1200. It traded below $1200 overnight on the
“fumes” of yesterday.
Gold, silver and the mining stocks have had a nice move from late
December to now. They will not go straight up. Technically the sector
was set up to be susceptible to trading activity related to Fed
sound byte propaganda like yesterday. This is yet another buying
opportunity. Buy a little every month when the price gets taken down in
the paper market. According to the Indian data presented by Brimelow,
India is a huge buyer of gold below $1200. China is a steady buyer
regardless of the price.
The Trump presidency will usher in a period in which Orwell’s
prophecies will shift into overdrive. Popular mistrust of anything and
everything Government will accelerate and Big Government’s attempt to
counter-act this movement will take place in the form of intensified
propaganda and a further reduction in civil rights. Along with this
influx of political and media chaos will be an increasing distrust of
fiat paper “fake” currency, which means the public will likely buy even
more gold and silver than it did in 2016. Note: the U.S. mint sold a
record amount of gold eagles in 2016.
In today’s episode of the Shadow of Truth, we continue our discussion
of the precious metals sector, including some analysis of the gold /
Dave Kranzler spent many years working in various Wall Street jobs. After business school, he traded junk bonds for a large bank. He has an MBA from the University of Chicago, with a concentration in accounting and finance, and graduated Oberlin College with majors in Economics and English. Dave has nearly thirty years of experience in studying, researching, analyzing and investing in the financial markets. Currently he co-manages a precious metals and mining stock investment fund in Denver and publishes the Mining Stock and Short Seller Journals. Contact Dave at email@example.com.
Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700 articles and produced more than 200 videos about the precious metals market, economic and monetary policies as well as geopolitical events since 1987. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory has contributed daily to SGTReport since 2012. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Visit The Daily Coin website and The Daily Coin YouTube channels to enjoy original and some of the best economic, precious metals, geopolitical and preparedness news from around the world.
The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
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