It’s obvious that the Fed, along with its bullion bank market emissaries, has been working hard to keep a lid on the price of gold. From the vertical “zip lines” in the chart over the past two weeks, the price management team is also making every effort to shake out long positions in Comex paper gold ahead of the December deliver period, which begins next Friday afternoon (first notice officially is November 30th, but notices can be issues starting next Friday afternoon).
The willingness of Comex longs to stand for delivery this year in historic amounts is putting enormous pressure on the Comex/LBMA fractional reserve bullion system. While I do not believe the December delivery period will “break” the Comex, as some suggest, if a large portion of the entities “safe” keeping their gold in Comex vaults decide to move their gold bars out of Comex vault custody and into non-Comex safekeeping, the Comex will implode.
Chris (Arcadia Economics) and I discuss where it looks like gold and silver are headed over the next 6-12 months along with the factors that will drive the precious metals sector higher, not the least of which is the next round of money printing by the Fed:
The mining stocks have been in a much-needed corrective pullback from the feeding frenzy this summer. But the enormous amount of institutional money funding mining company stock financings signals to us that the bull market in precious metals/mining stocks has a long way to go.
I focus on junior “venture capital” exploration stocks with 5-10x upside potential. I also sprinkle in some large cap mining stock ideas. The next move higher will take many by surprise. For information about my Mining Stock Journal, follow this link: Mining Stock Journal information.
I am not sponsored by, nor do I take any promotional fees of any nature from, any mining companies. I do my own research and due diligence and invest in many of the ideas I present.