I have been reading Rickards book, "Currency Wars" and I have a theory that I wanted to throw out here for discussion and consideration.
OK, we all know that China is working to diversify their paper dollar assets into tangible commodities. The most obvious examples of this are the attempted purchase of Unocal and the buy/transfer of gold using a sovereign wealth fund to the Chinese Central Bank. But think about this from a Chinese perspective...they have no issues with short, mid term profitibilty, they have practically unlimited reserves of paper USD, and they are wanting to buy assets in the ground. I suggest that what we may be seeing in the resource sector, not just with AUMN but with many of the companies that are sitting on substantial reserves, is the coordinated destruction and accumulation of these assets on global exchanges. Why AUMN? Simple..we are correct, it has an enormous resource and can be f****d with easily. Also with other good quality companies. Maybe it's not the banksters that are doing this, at least not for their own motives. What if the Chinese are naked shorting these quality juniors to buy up the assets cheap? What do they care about regulations, and IF the regulators had an inkling that this was happening, what would happen to the markets if they pursued the Chinese? This thing is so much bigger than I can get my head around, but what if?