Last week it looked like gold had tremendous strength and was going to break the $1,300 psychological number.
This week.. as I have circled in the graph above, billions in notional in gold futures contract were dumped on to the market almost at once. This is so obvious someone, some entity is trying to kill sentiment in precious metals.
If you have a giant position or are trying to establish a giant short position in gold, would you just dump it at the market and get crappy prices for your positions?
The answer is a restounding no...
This phenomenon is much more than some entity trying to make money shorting. The sheer sizes of these dumps are almost like they coming from some unlimited deep pockets. There's been theories that the central bank is behind this because if gold and silver are let loose to attain their fair values, that would immediate trigger people's wide spread distrust in the fiat currency. And central banks would be the ones get blamed on (which they absolutely deserve).
Every time I see prices of precious metal get hammer around like garbage, I would go home and take out my coin to look at... it's a silver Philharmonic.
And I'd say to myself.... they can make the price of this zero if they want but this thing in my hand that I know in my bones, would always have value.
101 uses and counting as technology evolve:
http://www.silvercoins.com/uses-of-silver/
Now take a look at the 20 dollar bill in your wallet. If someday people lose confidence in this paper what can it do for you? I personally think it would make terrible toilet paper.