Déjà-Déjà Vu on gold and silver

We are talking about manipulation of gold and silver price quite longer time. There are some bullion banks on the COMEX market, especially J.P. Morgan, who hold vast number of short contracts and have quite concentrated position on market. This concentration and number of contracts enable them to master the price. The last week was one of examples how it demonstrates on the market. If you look at the chart from the zerohedge you will see the same day to day pattern; someone could call it precisely daily déjà vu:

The Commodity Futures Trading Commission (CFTC) will move forward with an appeal of a federal district court’s decision vacating the position limits rule on COMEX. The federal court stopped the imposition of trading rules on COMEX and asked for conduction of them. The CFTC wanted to limit the number of speculative position on the market; many suspect that it had to be a reaction of the CFTC on vast and concentrated short position especially on silver, platinum, and gold. We will see if this helps to push rules forward. To implement the rules could cause less volatility and makes more difficult for bullion banks to manipulate the market price in their interest.

Gold attracts still more and more people. First the Turkish Prime Minister Erdogan complained about the policies of the IMF which according to him are under the influence of one currency – US dollar. He claims that it could be much better if the IMF switch to some international constant and indicator which has maintained its honor through the history – gold. Montana lawmaker Jerry O´Neil have similar attitude to gold. He asked to be paid in gold because of his lack of faith in the U.S. dollar. He wrote a letter to the state Legislature asking to be paid his public salary in gold. As we informed you some time ago George Soros is attracted by gold as well. He increased his stake by half in the SPDR Gold Trust last month and makes some business also with gold equities. The almost same story is about John Paulson.

Do you want to know what some other billionaires think? Eric Sprott is a one of the gurus of the gold and silver market and if you do not want to watch the video below be aware of the fact that he spoke about reasons why to own gold. And what were the most important from my point of view? First of all mainstream media started to talk about gold as a necessary part of your portfolio what was 5 years ago improbable. Second he stated that he thinks that most of western central banks have significantly less gold in their holdings than 10 years ago. He sees the reason for this claim in the fact that we already had the demand / supply equilibrium in the gold market 10 years ago. And we witnessed contrary higher demand trends with very stable production within this period of time. This means that supply which satisfies higher demand must be only from deposits of central banks. Third reason is debasing of all currencies. This gives to gold very bullish character. Watch the video. You will know more.

Matúš Pošvanc,

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About matus.posvanc

Trhu so zlatom a striebrom sa venujem od roku 2011. Prešiel som rôznymi fázami a pohľadmi na problematiku. "Trh je manipulovaný. To je jasné!" Inak by cena zlata predsa nešla dole. "Zlato na úrovni 100 tis. USD? Žiaden problém." Najneskôr do pár rokov. "Futures trh je najväčšie zlo a tzv. papierové zlato je nutné zakázať". Nuž, po dlhom štúdiu tejto problematiky, som hlúposti a táraniny opustil. Ostalo to, čo považujem za podstatné. Význam zlata je veľký. Avšak bez pochopenia trhu okolo neho, sa sám od seba znovu neobjaví. Kúpiť zlato ako časť svojho portfólia má zmysel. Snažiť sa na zlate zbohatnúť? To je iný príbeh. Jednu jeho časť nájdete na mojom blogu.
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