Dear CIGAs,
The Dumb Award for the year goes to our revered legislators who have passed a bill allowing civil litigation against the Saudis over oil prices. If you want to see crude at $200 tomorrow, all you have to do is anger the source of energy.
Now comes the Dumber Award, which is coveted due to the difficulty in getting it.
The markets for crude, currency and gold are GLOBAL.
Gold was sold due to fear this might apply to the yellow metal as well.
It would be bullish to shut down the US market for gold because then you would have a thin market with a positive Euro bent on gold and a more positive global market would be created.
No access for major traders will be denied, that you can be sure of. I would love to see US trading stopped in paper gold. That would be good for $150 on the upside after less than 24 hours.
The poor COT would not be able to create the influence on the global market they do with the aid of the US paper market cabal.
Europe and Asia are more respectful of the price of cash trading in gold. They prefer less regulation with greater privacy
Selling gold on the comment below regarding Oil is a criterion that will short list you for the Dumber Award of 2008.
Gold is headed for at least $1650 by January 14th, 2011. This price objective will likely be reached sooner. I expect the price of Gold to reach $1200 in 2008.
Things are infinitely worse than the media and statistics present.
Consequences cannot be avoided.
The US dollar on the USDX will trade at .62 and then .52.
U.S. Congress could ban speculators from commodities
Bloomberg News
Published: May 21, 2008
WASHINGTON: The chairman of a Senate oversight committee has said he is considering legislation to place limits on large institutional investors in commodities markets, which have posted record prices this year in agricultural products and oil.
The legislation would be aimed at speculators and other investors who use commodities as a way to hedge against swings in other investment instruments like stocks and the dollar, said Joseph Lieberman, chairman of the Senate Homeland Security and Government Affairs Committee, at a hearing Tuesday.
Crude oil reached $132.25 a barrel Wednesday, the highest price ever, and it has almost doubled in the past 12 months. Wheat, corn, soybeans and rice have all set record highs this year on the Chicago Board of Trade, spurring food inflation. The Reuters/Jefferies CRB index of 19 commodities surged 31 percent in the year that ended April 30.
"We may need to limit the opportunity people have to maximize their profits because a lot of the rest of us are paying through the nose, including some who can't afford it," said Lieberman, Independent of Connecticut.
The plunging value of the dollar, the U.S. housing crisis and widespread problems in the banking sector have led investors away from traditional instruments and toward commodities, witnesses said.
