GATA Finally Admits Their Followers are Manipulating Gold
Because of California Truth in Advertising regulations, the frauds in the financial markets claiming to be gold bugs have had to label themselves with accurate titles representing what they really are.
That’s why we have a Golden Jackass, a Turd and GATA who uses a picture of Don Quixote, as a depiction of what they do. Don Quixote was the blind fool who tilted at windmills in the belief they were giants waiting to do battle. That’s a pretty accurate representation.
Lately the open interest in gold futures has hit a new record high. As anyone who has read any of my books understands, weak hands buy at tops and sell at bottoms. Speculator longs have surged lately as the price of gold went up. But those speculator longs that are the weakest of weak hands, the most highly leveraged and the first to panic and sell.
GATA finally gets it. They have covered the King Report that admits, “No one sells so much gold so fast without news unless he wants to manipulate it lower.” Chris Powell, AKA Sancho Panza, adds, “No one sells that amount of gold in 30 minutes, ex-news, unless he wants to manipulate gold lower.”
At last these idiots get it.
Speculators are the ones driving price in all commodity markets. GATA and the other fools pretending they understand how commodity markets work all talk about some evil “BULLION BANKS” as the guys creating all metals futures contracts. Bullshit.
It was the speculators all the way up. They kept opening new contracts by buying that drove up the price as the open interest went to a new high.
Bullion banks are not commercials. Anyone suggesting they are doesn’t know what they are talking about. It is no more true than naked short selling of futures contracts, Comex defaults or a Gold Derivatives time bomb. They made it all up.
Commercials were selling as speculators bought. Unless you know some new weird form of mathematics, you can’t sell and make prices go up.
But prices have tumbled in the last week and we are going to have a “Reveal” on Friday when the COTs come out. We are going to learn that the open interest tumbled as the speculators dumped their long positions and sold in a panic.
If you like to blame anyone for manipulating the gold market, blame the followers of GATA who sold off millions of ounces of gold in a panic. They do the same thing every single time.
If you do the opposite you can make a lot of money. But you do have to actually understand how futures markets work.