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Daytr, a thoughtful post. "The market doth protest too much."...

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23skidoo

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19/12/14

11:33

Post #: 14486440
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Originally posted by Daytr ↑

Ask yourself this.
Why is the market so fixated of the possibility of the Russian Central Bank selling its gold?
The speculation is rife & quite overdone. There have been rumors & others stating 'facts' that Russia is selling gold.
There is absolutely no evidence of this & the only evidence points to the actual fact that they have been buying gold.
Now, I'm not saying its not possible that they aren't or that they may sell gold in the future, as of course this can't be ruled out.
But why are there so many unfounded rumors circulating & banks are saying things like 'catching a falling knife' when gold is pretty much unchanged for 12 months.

One of the side effects of the US strategy is economic instability that impact's global financial markets & world growth. Russia is the 8th largest economy in the world & if Russia implodes the global economic fallout should not be underestimated. Europe is particularly fragile & has recently said it cannot afford to bail out the Ukraine. A blow up in Russia could have very unwelcome impacts on the European economy in particular.

So what is the canary in the coalmine in regards global instability. The price of gold.
So what better way to contain the gold price when such a major event is unfolding?
Spread rumours that they themselves are selling gold or will be forced to.

No I'm not one to normally buy into conspiracy theories & I have quite often refuted many CTs bandied around on this thread.
However I'm not the one circulating rumours around gold sales when there is no evidence of it.

The reason why my suspicions are aroused is that what I am seeing equates to an old saying.
The market doth protest too much.

The Russian CB should at some stage report its holdings to the IMF, although considering the current situation they may choose not to.
Why tell the West your position in the midst of a financial war being waged?

The market is so fervent in its belief of Russian sales I suspect quite a large short is now building in gold & yet gold is holding up.
If Russia was indeed selling substantial amounts of gold & the market is shorting & we have a rising dollar, shouldn't gold be much, much lower?
Well its not. Something doesn't add up.
Russia produces a surplus, so its quite likely they are still actually accumulating gold.
If Putin isn't ousted, he will play the long game.
I wonder if the shorts are prepared to wait that out?
I think not...

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Daytr, a thoughtful post.

"The market doth protest too much."

You bet it doth!
Good old Yankee propaganda.
It's a sure sign that the bankers and their political syncopants are rattled that they can't control gold like they used to.

23.
3 Upvote

0 Great analysis

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