30-03-2009, 08:51 AM
Peter
No idea about the WTC bullion.
Further to the above. The official position on the current Gold market is of course 'business as usual' - soothing, calming noises about markets working fine etc etc.
The 'Gold-Bug' contrarian narrative is one of covert manipulation to suppress price and various plausible mechanisms have been cited to that end. They are so plausible in fact, that they have long been the basis of profitable trading for many. However, underlying all this is an assumption is that the manipulating shorts will eventually become trapped and either default on delivery or be forced to buy their positions back, either or both resulting in a parabolic upward price movement. I am less sanguine about that little scenario.
I sense we are moving onto new ground. Pace David Guyatt's revelations about the vast quantities of 'Black Gold' in existence, the present unprecedented private demand is probably viewed as a golden (ha ha) opportunity for Black gold to be systematically laundered to meet that demand whilst maintaining both control of the official price and building official records of exactly who is stashing away the kosher stuff. So long as a default on the Comex can be avoided, it will probably continue to be a major price fixing mechanism; which in practice means that, so long as sufficient kosher bullion to cover relentlessly increasing short open interest can be deposited in Comex warehouses, we will continue to see periodic price smack-downs.
No idea about the WTC bullion.
Further to the above. The official position on the current Gold market is of course 'business as usual' - soothing, calming noises about markets working fine etc etc.
The 'Gold-Bug' contrarian narrative is one of covert manipulation to suppress price and various plausible mechanisms have been cited to that end. They are so plausible in fact, that they have long been the basis of profitable trading for many. However, underlying all this is an assumption is that the manipulating shorts will eventually become trapped and either default on delivery or be forced to buy their positions back, either or both resulting in a parabolic upward price movement. I am less sanguine about that little scenario.
I sense we are moving onto new ground. Pace David Guyatt's revelations about the vast quantities of 'Black Gold' in existence, the present unprecedented private demand is probably viewed as a golden (ha ha) opportunity for Black gold to be systematically laundered to meet that demand whilst maintaining both control of the official price and building official records of exactly who is stashing away the kosher stuff. So long as a default on the Comex can be avoided, it will probably continue to be a major price fixing mechanism; which in practice means that, so long as sufficient kosher bullion to cover relentlessly increasing short open interest can be deposited in Comex warehouses, we will continue to see periodic price smack-downs.
Peter Presland
".....there is something far worse than Nazism, and that is the hubris of the Anglo-American fraternities, whose routine is to incite indigenous monsters to war, and steer the pandemonium to further their imperial aims"
Guido Preparata. Preface to 'Conjuring Hitler'[size=12][size=12]
"Never believe anything until it has been officially denied"
Claud Cockburn
[/SIZE][/SIZE]
".....there is something far worse than Nazism, and that is the hubris of the Anglo-American fraternities, whose routine is to incite indigenous monsters to war, and steer the pandemonium to further their imperial aims"
Guido Preparata. Preface to 'Conjuring Hitler'[size=12][size=12]
"Never believe anything until it has been officially denied"
Claud Cockburn
[/SIZE][/SIZE]