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From Dow Theory Letter
by Richard Russell
Thursday, November 13, 2008
I've never been a big fan of the "gold is being manipulated" thesis. However, I'm now giving the manipulation thesis second thoughts.
Most of the world's central banks are now in the process of fighting recession and deflation. This requires government spending and the production of enormous quantities of new fiat money. The last thing the central banks want is for the public to realize what they are doing.
Normally, surging gold would be the signal for the public to ask questions -- rising gold is a red flag for the fiat money creators.
It's amazing and beyond coincidence the way gold rallies and then immediately is hammered down below $740. I know that there are huge short positions in gold on the COMEX. I'm no longer a skeptic on the "gold is being manipulated" claim. Somebody is selling gold every time gold rallies toward a breakout above $870, or more properly gold at $840.
I don't think the manipulators (if there are such people) can keep it up.
Usually when the market tanks and recessions loom..gold soars.
Only this time it's not.
True, it's not...YET.
Right now, It's being sold like crazy by hedge funds anxious to raise cash for margin calls. Only reason it hasn't fallen out of bed is - everybody wants it. If there is no shortage of physical where you are, there soon will be.
Gold is on a roll tonight ,......... I think the market open tomorrow will be quite interesting for those holding gold. The Miners are staged for a comeback , especially those companies that have reserves , and or are producing. The dollar will fall big time , before the year is out........just my opinion.
The only door that will open now is the devalue one, and , that will be very positive for gold. lets hope inflation gets moving up , might give us a breather before the really big one coming......Doomsday is just around the corner for most of us , its already here in you live in Palm beach , Fl.
Yet the "experts" are still claiming that the precious metal "bubble" has burst. Only time will tell.
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