As everyone knows, the Fed is highly motivated to keep a lid on the price of gold and silver, as they represent real money in relation to the fraudulent, Ponzi scheme unbacked paper fiat dollars printed by the Fed. Every dollar the price of gold rises invalidates the credibility of the dollar by a dollar.
Ergo, the Fed’s war on gold. The latest evidence was this morning’s raid at the exact opening of the Comex gold pit trading at 8:20 a.m. It’s a daily ritual to hit the price of gold automatically at 8:20 a.m. and then again at 8:30 a.m. 8:30 a.m. is typically when the day’s most “important” economic reports are released. Gold gets bombed automatically regardless of whether the particular report was actually “gold friendly” or not.
Today, a whopping 4,307 contracts hit the Comex instantaneously at 8:20 a.m. To put that size in context, at 8:00 a.m. (EST) the CME was showing a total of 45,000 contracts had traded from 6 p.m. the previous the evening until 8:00 a.m. this morning. That’s an average of 54 contracts per minute over the 14 hour period. All of a sudden someone decides they need to sell 4,307 contracts all at once?
The “art of selling” a big position when you need to sell involves hiding the size of the position from the market and feeding your position into the market over time as the liquidity lets you do it without giving away what you are trying to do.
The Fed’s “art of war” on gold involves dumping large quantities of gold contracts, often at times when it wants to make a statement. The real question in my mind is, why has the Fed all of a sudden become very blatant about its intent to wage a war on gold?
In my view, the Fed’s behavior reflects a growing degree of desperation in its efforts to rig the markets…