Welcome To The Silver Standard Resources HUB On AGORACOM

SSO on the TSX, SSRI on the NASDAQ

Free
Message: commentary from gata

commentary from gata

posted on Aug 11, 2008 02:00PM

the sharp drop in gold and silver is not indicative of any problems with metals, commodities, or any related investments. the fundamentals have not changed at all, unless they have gotten worse. this comes from gata:



Gold rebounded to the $865 mark in overseas trading … that is until The Gold Cartel traders reported for work in London at 3 AM NY time. As usual, that was all she wrote for the morning. Once the AM Fix was completed ($863.75), the leaning commenced in earnest.

That said, as mentioned last week, it is normal for all rallies to be sold after gold bloodbaths, which is certainly what we have endured. All the cabal forces have to do is stop a rally, give a nudge, then watch the funds dump longs and go short. Then, The Gold Cartel forces cover.

Last week was all about the US intervening in US financial markets to turn investors bullish on the dollar, to bury gold and silver, and prop up the DOW. This was no minor operation and ought to have some legs until it falls apart. Those doing the intervention have no intention of letting their efforts go for naught. As you can see, they can be very effective in the short term. At the same time, the US didn't take any steps to alter any of the fundamentals which caused the mess in the first place. If anything, they are compounding the myriad of problems by thwarting the natural flow of the free market process. This interference, as it has in the past, is only postponing greater financial market stress down the road.

Share
New Message
Please login to post a reply