Xerxes, as crazy as it sounds, I think Sinclair might be on to...

Xerxes, as crazy as it sounds, I think Sinclair might be on to something with his theory of certain parties shorting gold stocks.

I think it was his article that pointed out that the total market capitalisation of all the gold stocks in the world is less than the market capitailisation of Coca Cola. i didn't realise gold stocks were so insignificant. Maybe it is feasible for someone to manipulate the gold stock prices if they wanted to.

I hold KCN and I swear a couple of weeks ago something very strange was going on with the price. It felt like someone was doing their best to knock down the price - sellers jumping in eagerly to accept the buyer's low offer all too quickly. This happened over a few days. On one day a whole lot of orders for 45 shares went through.

Then when all looked lost, the price shot up about 40c in one day. Then the price got pushed down again, only to bounce back hard in the last couple of days.
I read somewheree where the price becomes very volatile when shorting is involved, falling hard when they are shorting and rising hard when they have to cover.

It's all rather spooky. Gold looks very strong at the moment, as if it is gathering a head of steam. Might be interesting times ahead re JP Morgan and the big boys. Afterall, they were supposed to start melting down around $354.

Cheers, Anne