as lower as closer, page-4

It seems strange to see gold falling with all the money printing, not just by the Fed but worldwide. Japan and China are not talking about ending it and the Fed talks about it on the one hand but on the other it says it will keep printing as long as necessary. Considering how fragile the world economy is, I take that to mean indefinitely. China slowing and was the only thing holding world growth up. Europe in recession and US has too much debt to be able to allow interest rates to rise too far. 10 year rates have jumped to 3% on the threat that QE might be scaled back. So why is gold falling? I think the article below explains it well, but in summary, gold should be higher but before it goes higher, the banks had to cover shorts and they will prefer to be long. In 2000 the Bank of England sold its gold to save a major bank that was heavily short. They admitted to this later which is quite incredible because that is outright manipulation. I guess govts can do what they want.
The COT chart shows on average, the commercials are no longer net short any significant amount. They may even be long by now. They have been aggressively covering shorts while talking gold down. In the 1930’s they simply confiscated the peoples gold and then re-priced it massively higher against the dollar. This time that confiscation might not go down so well so they talk people into selling it using fear and charts, selling heavily to break each support level and buying back on the panic selling. Why have they covered such large short positions unless they know it should be higher?
None of this helps in the short term but I think it helps to explain what is going on. If you want to keep exposure for the upside, you really need to be in a company that can survive this tough period. Parts of the article below in someone else’s words.


http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/26_The_Price_Damage_Is_Almost_Beyond_Belief_At_This_Point.html

“The price damage is almost beyond belief at this point. Two years ago we were above $1,900 on gold and rightfully so given all of the events that were occurring and are still occurring. Now we are in the mid-$1,220s, which given the policy response to what is an ongoing crisis, is incomprehensible. No one can make any logical sense of what has taken place because the currency wars that are fully underway everywhere in the world justify gold prices that are not only higher than they were two years ago (above $1,900), but they justify prices in our view that would clearly be above $2,000 and maybe even above $3,000. Those prices I am giving you are the prices gold should be trading at today. Meaning they are not looking out on to the horizon because the money printing that is going on is not going to stop tomorrow. In fact it’s going to continue and if anything, in our view it will accelerate.
Kaye also added: “I strongly believe this is being done to create even more outsized profits for the bullion banks. We had a very controversial recapitalization of the banks, similar to what occurred in the 1930s in the United States, and most of the world at that time was on a gold standard. The only way the banksters could get recapitalized during that era (of the 1930s) was by the re-pricing of gold itself. KWN readers have to remember that gold was re-priced from $20.67 to $35, but that was only after an executive order forced U.S. citizens to turn in all of their gold to the nearest Federal Reserve branch. So the Federal Reserve banks, which are owned by the big commercial banks, got recapitalized through that mechanism. A similar thing is happening once again. First we had the overt bailouts which was in plain sight in 2008 because the entire banking system was bankrupt. So hundreds of billions of dollars was wasted on recapitalizing these criminal institutions, these big banks. More recently, because of the default of ABN AMRO, it was obvious that not only was there a lack of physical gold in the system, but the system was on the brink of collapse. And ABN AMRO, one of the largest bullion banks, absolutely did default. So to prevent wholesale defaults by JP Morgan and everyone else, this raid was commenced. The bullion banks have now gone from net-short gold, and like ABN AMRO -- at risk of defaulting, to now being very long gold. And because they are long, our thinking is that we should also be long. Anyone looking to add to their position, this to us is an extremely good opportunity because the only group that seems to be pushing things lower are these central banks. So the central banks are simply creating a setup where they can covertly recapitalize their member institutions, which are the very people who own them (the central banks). Don’t forget that 100% of the stock of the Federal Reserve system of the United States is owned by these criminal banks. And they are now in a position to benefit from rising prices in both gold and silver. We have positioned ourselves so that we will benefit as well when that price rise occurs, and we think it’s coming very soon.”