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XMFSinchiruna (26.50)

Gold Price Suppression Hits CNBC



July 28, 2010 – Comments (10)

I had to do a double take before I believed what my eyes and ears were telling me.

The topic of gold price suppression being discussed openly and seriously on mainstream financial tv.

The guest speaker is Ben Davies, CEO of Hinde Capital.


Recently, the topic received mainstream fiancial coverage in Germany at Focus Money Online. [in Gernan]


And not much beating around the bush by Trader Dan's latest commentary:

Until the morons who run the funds and have all the funny money at their disposal wise up and start standing for delivery at the Comex, they will get their asses handed to them courtesy of the bullion banks. I cannot help it that these guys are too damn lazy to take the necessary steps to acquire the physical metal, warehouse and insure it. After all, some of these same funds have been known to hoard copper and warehouse the stuff in order to squeeze the shorts. Remember when some of these same players were renting up all the available oil tanker space to store crude oil offshore and keep it off the market back when crude was making its run towards $150. Why they refuse to do the same with gold is really difficult to grasp unless of course they are fearful of government regulators sniffing around their business. Maybe the word has gotten out that this will be the case with any hedge fund manager who dares to try to force the shorts to delivery the gold. One thing along this line – China or Russia nor mid-Eastern interests are under no such constraints and could break the back of the bullion banks tomorrow if they chose to do so. That they have not signifies that they are not through acquiring cheap gold yet. Those folks, along with India, will be the ones who put the floor in for gold and cause the technical indicators to bottom and then turn up. The funds will then buy high and buy even higher and chase prices up once again. It has happened over and over and over again for nearly 10 years now. It will continue to occur until at such time the gold price levels off at a permanent higher plateau and remains there.

Long and strong and completely unfazed by this sell-off,





10 Comments – Post Your Own

#1) On July 28, 2010 at 8:42 AM, ChrisGraley (28.51) wrote:


I'd didn't think I'd see this until after the ETF implosion.

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#2) On July 28, 2010 at 10:07 AM, outoffocus (23.86) wrote:

 It will continue to occur until at such time the gold price levels off at a permanent higher plateau and remains there.

So you don't think the short squeeze will cause a bubble in gold? I believe gold may "plateau" but only after a short squeeze induced gold bubble pops and gold prices reach equilibrium again.

Also, the Fed could raise interest rates causing gold to fall in price.  There are any number of variables that can pose downside risk to gold. Don't get my wrong,  I think gold still has room to run, but statements like "gold prices will go up then stay there" sounds alot like what I heard before the housing bubble popped.

In other words, I am a gold bull, but not a gold "permabull".

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#3) On July 28, 2010 at 10:14 AM, workfor (< 20) wrote:

Governments and their banks around the world to no avail will pull out all the stops to prevent their citizens from collectively losing confidence in their currencies. It will be a very interesting time to witness.

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#4) On July 28, 2010 at 11:29 AM, XMFSinchiruna (26.50) wrote:


I predict massive volatility in subsequent phases of this bull market, and within that volatility I do not discount the possibility of gold hitting fairly astronomical numbers in the several thousands of $. Thereafter, I believe they will find relative equilibrium at a new long-term plateau somewhere north of $1,650 or $2,000 per ounce.

I think there will ultimately be a portion of this move that's bubblicious, but that will be a portion that floats well above the $2,000 mark. In part due to the suppression, we remain well within pre-bubble territory IMHO.

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#5) On July 28, 2010 at 11:59 AM, workfor (< 20) wrote:

Is Eric Sprott now backing away from starting his new physical silver trust? If so, why?

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#6) On July 28, 2010 at 1:45 PM, XMFSinchiruna (26.50) wrote:


I haven't heard anything to that effect ... got a linky?  :)

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#7) On July 28, 2010 at 2:11 PM, workfor (< 20) wrote:


Keiser Report no. 63 Markets! Finance! Silver! 

At the very end of the video

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#8) On July 28, 2010 at 2:21 PM, workfor (< 20) wrote:


The video was posted on Dollar's website yesterday, and was replaced with the video you are refering to today.

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#9) On July 28, 2010 at 2:35 PM, XMFSinchiruna (26.50) wrote:


Thanks, I'll look into it.

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#10) On July 28, 2010 at 6:23 PM, goldminingXpert (28.68) wrote:

This is not an abnormal correction thus far. Gold can fall another $50/oz by my calculations before running into bigger technical problems for the bull case.

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