The Paper Raid On The Gold Price

Gold was smacked $22 from top to bottom overnight and this morning.  It was a classic paper derivative raid on the gold price, which was implemented after the large physical gold buyers in the eastern hemisphere had closed shop for the day.  This is what it looks like visually:

As you can see, as each key physical gold trading/delivery market closes, the price of gold is taken lower. The coup de grace occurs when the Comex gold pit opens. The Comex is a pure paper market, as very little physical gold is ever removed from the vaults and the paper derivative open interest far exceeds the amount gold that is reported to be held in the Comex vaults (note: the warehouse reports compiled by the banks that control the Comex are never independently audited).

Today technically is first notice day for April gold contracts despite March 29th as the official designation. Any account with a long position that does not intend to take delivery naturally sells its long position in April contracts. Any account not funded to accommodate a delivery is liquidated by 5 p.m. the day before first notice. This dynamic contributes to the ease with which a paper raid on the gold price can be successfully implemented.

In all probability the price of gold (June gold basis) will likely not stay below $1300 for long. China’s demand has been picking up and India’s importation of gold is running quite heavy for this time of the year. Soon India will be entering a seasonal festival period and gold imports will increase even more. Today’s price hit will likely stimulate more buying from India on Friday.

9 thoughts on “The Paper Raid On The Gold Price

  1. Thank you Fed and affiliated banksters for smashing gold today.
    I always look forward to sales on the only form of real money.
    Someday these paper markets will dry up and blow away.

  2. For those who question the Bullion Bank crimes (yes they are) look at a 10 year gold chart to see the obvious channel $1150 (but often 1200) to a hard cap of $1350 (high this time was $1349 intra-day).
    All done with 20-1 leverage in the COMES Casino, where Dodd Frank position limits have still not been set in the metals after all these years!
    And while BITCOIN went to $20,000 (remember when anyone suggesting Gold to $2000 had their sanity questioned).
    Finally… they don’t exactly hide it, and very visible directional ‘tracks’ are left in the weekly COT Reports. So Swing Trading is a great strategy (long going up and short going down… but make some $$$ and get out don’t get greedy) to scoop a good ROI while waiting for someone to expose the banks and allow the market to set (a much higher) prices.

  3. I laugh when America tells the world what to do but does nothing to stop the fraud and criminality of the Fed and bullion banks. what a bunch of hypocrites.

  4. how about all the crypto excitement on april fools? im still waiting for the to crash below $1000. Gold can only go up at this point. Buying is never a bad idea.

  5. Buying gold is definitely a good idea. And gold will certainly go up one day. But one needs to consider the possibility that this will not happen anytime soon. Perhaps in 10 to 20 years.

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.