Yesterday, Andrew Maguire said, “all they (central planners) are doing is delaying an extremely disorderly rebound (in the price of gold). Give it a few days because at least 90 tons of central bank buying today was seen below $1,550, into the afternoon fix (in London). As we cascade down here you can guarantee that what they (Eastern buyers) are doing is ‘spot indexing,’ which is basically locking in the price in the paper market and will allocate that at an upcoming fix (in London).
So I give it (at the most) two to three days before this has a massive rebound effect, and the short fuel above the market now is at absolutely unprecedented levels.”
Could he be right? Possibly. Unlike many of the other predictions in my Watchlist category, however, we won’t have to wait long to find out.
With all of the market manipulation, paper markets and central bank printing, it’s anyone’s guess what happened to gold prices last night, but here are some of the more logical theories that explain yesterday’s 500 ton paper gold sell-off:
The paper gold market is collapsing, and smart money is dumping their paper before it’s too late.
Central banks are manipulating the market to make fiat money appear to be the only sound safe haven.
According to former Assistant of the US Treasury, Dr. Paul Craig Roberts, “the exchange value of the dollar is (being) threatened, and if that collapses the Fed loses control over interest rates. Then the bond market blows up, the stock market blows up, and the banks that are too big to fail, fail. So it’s an act of desperation because they’ve got to establish in people’s minds that the dollar is the only safe place, it is the only safe haven, not gold, not silver, and not other currencies.”
The Federal Reserve is “trying to destroy gold as a haven from the dollar in order to carry on the Fed’s policy of negative real interest rates.”
trying to destroy gold as a (safe) haven from the dollar in order to carry on the Fed’s policy of negative real interest rates.