On a daily basis the market jerks around like a jumbled mess. But on a bigger plan, there is a theme in play and that theme puts pressure on policy makers.
This market has more to do with the cult of policy making than it does with natural or organic growth and productivity. If the deceleration and deflationary whiff become bad enough and when the timing (timing is complicated with the election cycle) is right I think we have a pretty good idea what will lay ahead.
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I agree with what you’re saying in this post. But how often has anyone seen the Kitco gold chart like this first thing in the morning? Tons of times that’s what. Why? Because as soon as the Comex opens, those manipulative bastards open their short trades in the metals and take down the PM prices. Hello JP Morgan. Been there, done that!
ReplyDeleteI had to laugh the other day during the abbreviated US session as the PM's came roaring out of the gate. The goons had apparently skipped out to the Hamptons (do they really go there or is that just a catch-all for the destinations of the impossibly rich and well connected?) the night before.
DeleteSo to answer your question... WAY too often.
Sometimes they even go sharply up in the mornings instead of sharply down. I guess on that day they decide to go long instead of short?
ReplyDeleteOr maybe it's just the paper market for gold is multiple times the size of the physical market?
I guess the basic takeaway is, you can't bother with playing POG for penny-flips - but don't worry about the manipulation because if it ever were to get out of hand, someone like the royal family of Qatar (or 100,000 Indian jewellers) would happily come in and scoop up all the $1450 gold they could get their hands on.
So it can't get too far out of hand.
But that's why you can't let all those little ticks up and down in the gold (or silver) chart concern you. Even when it goes 1.3% below your "support point". You've got to give it a few days for the Arab royals and Indian jewellers to take advantage of the paper manipulation.