Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Gold Manipulators Not Only Will Be Punished, They Have Been Punished

Commodities / Gold and Silver 2016 Oct 15, 2016 - 01:21 PM GMT

By: Gary_Tanashian

Commodities

I have not gone off the deep end and joined the “community” of boosters, promoters, pompom waving cheering squads and general cult figures who you can just tell not only want you to adore gold, but in some cases need you to act on your adoration and buy gold or gold stocks.  Read into that what you will, but the history of investors burned by the pitch, which tugs at peoples’ morals, sense of right and wrong and plain old common sense, is a long and storied one.


As in any market, you are the mark, the target, the food… unless you do the educational work to the degree required in order to have your own – not some expert’s – view on things.  That includes we would-be geniuses who think we can write for you and provide worthwhile information along the way in your decision making process.  The day I stop learning and working to be better is the day I stop doing this, and that’ll be the day they fit me for a pine box.

By educational work, I don’t mean understanding the difference between a Fibonnaci retrace percentage and a time cycle.  I don’t mean understanding the difference between a bottoming pattern and a consolidation pattern, an open pit mine and an underground mine or any other of the very real things that an investor or trader considers.  I mean you have to do work on yourself because no one has got definitive answers and you should not be seeking those… from anybody!

The reason I am being so presumptuous as to assume there are people who fall victim to the pitches and the plays on peoples’ greed, fear and naivete is because I know you are out there.  I know because this gentleman is presumably writing to an audience…

Gold Manipulators Will Be Punished

I agree with him, gold manipulators not only will be punished, they were punished in unrelenting fashion for four long years.  When the HUI Gold Bugs index lost key support (as we noted in real time about the 460 area) in 2012, still they cheered and poked monetary authorities in the eye with dogma and belligerence about the coming of QE3.  This kept the gold bug faithful in the game.   After we noted distinct signs of economic firming in early 2013 and gold proceeded to crash major support in the 1500’s, still they pumped.  The PTB, the PPT and the unholy Goldman/JPM/Fed trinity were putting the poor gold bug army to the test.  ‘Stand up to it boys, I’m right here with you!’ cried the generals from well behind the front lines, ‘it’s just paper gold manipulation!’

You only need the first paragraph to know where the above-linked article, published today, is going.

The selling of gold we saw last week was another desperate attack by the BIS and some central banks, together with the bullion banks, to manipulate the gold market lower. We saw over 40% of annual production of gold being sold last week which is 1,000 tons. The physical market continues to be strong which I will discuss further on.”

Actually, the first sentence is all that is needed.  We heard that physical demand, China demand, Russia demand crap all through the bear market. It did not matter then and it does not matter now.

The article appears at TalkMarkets, a website that is an equal opportunity presenter of market views.  As luck would have it, Steve Saville checks in at the same site on the same day with a distinctly different view.

The Gold Manipulation Silliness Continues

While we are on the subject of level headed analysis, on Tuesday right after the latest CPI report, ‘Inflation Guy’ Michael Ashton will be doing a live video Q&A event (sign up available at the end of his most recent article linked below).  Inflation is another thing that the promoters have totally screwed up with respect to gold.  Only sometimes will gold be an inflation play (hint: rising yield curve, rising inflation expectations; hint: ignore academic experts Harvey & Erb’s generalities because there are anti-gold promoters as well, which is a whole other kettle of fish).

You’ve seen me write about it time and again, and the details are beyond the scope of this article.  Inflation is more complex than ‘they are inflating, buy gold!’ (from the ‘got gold?’, ‘go gold!’ crowd) or ‘see, gold is a bad inflation hedge!’ (from the Harvey & Erb crowd) that we are fed in the media.  But this guy knows inflation and he knows the mechanics behind it as well.  It just so happens that our preferred view is an inflationary one for a phase, and I am going to try to tune in to this video Q&A.

Inflation Dogma Dies Hard

These two writers and others are also posted routinely at Biiwii.com for a reason and that reason is that right or wrong, they give well thought out arguments for a particular stance.  Ashton is must reading, especially after each CPI release.  Anyway, there it is in Ashton’s headline; the word “Dogma”.

Shifting back to the gold sector, let’s consider “Dogma”noun; a principle or set of principles laid down by an authority as incontrovertibly true

The quote above is by someone who incontrovertibly knows that gold is being manipulated.  There is no questioning there, no theorizing or mitigating phrasing.  “The selling of gold we saw last week was another desperate attack by the BIS and some central banks, together with the bullion banks, to manipulate the gold market lower.”

Okay, the manipulators are desperate.  Got that?  The manipulators were desperate when gold crashed 1500 in 2013.  The manipulators were desperate when Ebola threatened to “trigger a rebirth in gold and silver prices” in 2014.  Tell me, who the hell was desperate?  The powers that be?  I don’t think so.

Who was desperate was who is back to being looked to for professional guidance about gold; the usual gold bug suspects, the authorities on the subject (and their dogma).  This is where the gold bug “community” needs to take a time out with each individual participant asking himself and herself some hard questions.  After the lessons of the bear market, I think many now do.  But all too many do not.  I know this because Mr. BIS manipulation up above is not alone.  They have come back out of the woodwork and a troubling number of people seem to think ‘well, they’re the gold experts and I think gold’s in a bull market so it’s okay to take their advice again’.

Ah, folks?  You might want to check that view.  Dogma was dogma in the last bull market and it got people killed when the bear came around.  Dogma remained dogma all through the bear and today in a potentially potent new bull market dogma is dogma still.

The BIS did not take gold down.  What took gold down was unhealthy leadership that kept piling on until well past the top in the sector in July/August.  We know this because we look at the Commitments of Traders each week and they have been historically stretched to the ‘high speculative net long with correspondingly high commercial net short’ side of things.  That’s all there is, folks.

Of course there are reality manipulators trying to tell you about the take down in gold at the hands of the evil commercial entities.  You know, the mining companies hedging product, various other industry players hedging by necessity if not choice and yeah sure, some good old fashioned banker manipulation in there to boot, at least to some degree.  All markets are manipulated to one degree or another.  It’s the markets and people should not personalize it.

Frankly, I wonder what took gold so long to correct.  The Commitments of Traders remained at a strained configuration for a long time before the sector finally cracked, as it needed to in order to purify the investor base of the various momentum freaks that had finally caught on during the course of the first half of 2016.

Last week commercial entities reduced their hedges and the substance abusers reduced their longs, both to significant degree.  That kicks off a bullish trend.  But if some pumper starts sounding the all clear you might want to realize that while the precious metals complex is due for a bounce, only a completed trend back toward a bullish CoT configuration like January’s would be likely to signal THE bottom.

Look, for several weeks leading up to the corrective breakdown, I dumbed down NFTRH‘s charting to this simple view of gold’s weekly situation.  I wanted subscribers (and myself) to calmly remain aware of the test that was likely out ahead.  As gold dwelled above then-support at 1300, we noted that a breakdown would not be the end of the world because the weekly EMA 75 lay down below (currently 1247) like a magnet.  The test, a very logical and technically healthy test, is now ‘on’.

Why is it a healthy test?  Because if gold holds there to keep its bull market intact (we kept the ‘higher low’ parameter in view week after week as gold topped out) it will have taken out the momentum addicts, the trend followers and the come-lately greed heads, and most of all, it will have taken out those who listened to the promoters who were on top of the world a few weeks ago but are now practicing damage control with the old GOLD MANIPULATION!!! manipulation (of peoples’ capacity to remain naive).

Subscribe to NFTRH Premium for your 25-35 page weekly report, interim updates (including Key ETF charts) and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com.

By Gary Tanashian

http://biiwii.com

© 2016 Copyright  Gary Tanashian - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Gary Tanashian Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in