Thursday, March 25, 2010
Manipulation in the Metals Market and Secular Chart Porn
GATA drops another information bomb on the precious metals community, as they have been doing for years. Read the piece for yourself regarding the known manipulation that every trader or investor who follows the daily moves in Gold and silver can "feel" during those early morning devastating plunges in the Gold and/or silver price that seem to come out of nowhere.
Please understand that this manipulation is sanctioned by the highest levels of the government and the non-federal, for profit federal reserve. A conspiracy theory is no longer a theory once it is shown to be true. There can be no regulation because the government is in on the manipulation. Those calling for more regulation don't get it. Fascism is by definition the union of government and corporate interests to control the productive capacity and economy of the country. The futures market in Gold and silver is just one of many examples of the federal government ignoring fraud because it is complicit in the financial crimes being committed.
Having said this, manipulation has and will continue to fail over the longer term. Gold and silver are up 300-400% over the past decade and will continue to rise. This doesn't make traders who get screwed feel any better but long term bulls should not be deterred. "Smash downs" in the Gold and silver price, as occurred this week, are a buying opportunity.
Gold will continue to trounce stocks over the longer term. Now is a great time to trade the Dow for some physical Gold and/or silver held outside the purview of fascist paper pigs. Without further ado, the secular chart porn of the day is a Gold to Dow ratio (i.e. $GOLD:$INDU) monthly chart since 1980 thru today's close:
Despite manipulations in the shorter term by da boyz, the Dow to Gold ratio will reach 2 and may well go below one before a secular bottom in this ratio is reached.