Two nights ago when the Federal Reserve announced a US$10...

Two nights ago when the Federal Reserve announced a US$10 billion "taper" paper gold, instead of falling in price, as most expected, was allowed to make a small rise.

The aim of course was to instil some confidence in gold investors that the worst was over for gold.

Then last night, when U.S. jobless claims climbed 19,000 to 348,000, hardly supportive of a taper, and of course a US dollar negative and very much a gold positive number, the paper gold price was smashed 2% into the US$1230s before making a small recovery.

It's quite obvious to me that in the manipulated paper markets the shorting sales of vast amounts of paper, backed by nothing but absurdly called gold, is being used to wage a psychological warfare against investors in physical gold and gold equities.

Meanwhile, gold companies' Management around the world pathetically do nothing. Like stunned mullets, they continue to pathetically accept as the price for their physical gold a price set by massive sales of paper backed by nothing gold that is completely at odds with the laws of supply and demand in the real physical world where demand for physical gold continues to soar.