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It never ceases to amaze me just how dumb and misinformed financial
commentators are, often looking in all the wrong places for script, when the fact is that stupidity, greed, and stubbornness runs rampant amongst paper market precious metals speculators.
The above introductory comments are edited excerpts from an article* by David Petch (treasurechestsinfo.com) as posted on GoldSeek.com** under the title The Fox is in Charge of the Hen House.
The following article is presented by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (sample here). This paragraph must be included in any article re-posting to avoid copyright infringement.
Petch (Captain Hook) goes on to say in further edited excerpts:
Gold is especially vulnerable to such stupidity, greed, and stubbornness because it’s complicated, heavily gamed, and cloaked in official secrecy. (i.e. which is code for suppression.)
A case in point is the recent sell-off. Speculators did in fact buy what they thought was gold, but because they are only semiconscious, insanely greedy, and idiots (because they repeat this behavior over and over again), they loaded up on GLD calls, which has caused the put/call ratio to plunge as well. This is why prices are falling right now, because these idiots are forced to sell their leveraged speculations (GLD calls, futures contracts, etc.) once the heat comes off.
Get it straight – that’s what is happening right now, as the machines (algos) work against these knuckleheads, and until this idiotic loop is closed, meaning either put/call ratios go way up, implying these idiots stop repeating this negative behavior, [or] prices can continue lower.
The wars, the economy, any other reason you care to talk about does not matter on a lasting basis as long as we have these idiots in this market,
- the New York COMEX price continues to be the world’s primary pricing mechanism, and
- Western bankers/bureaucrats are still allowed to manage prices in this subversive manner, i.e. using sentiment, algos, and force (dumping of futures contracts) to manage prices instead of real commodity supply/demand conditions.
That’s why this famous saying applies here – the fox is in charge of the hen house.
As an aside, if (when) stocks do eventually crash, gold and silver (and especially precious metal shares) could fall due to liquidity related conditions assuming they are not already washed out, which is definitely not the case right now. Just to be clear – this is a completely different reason.
Unfortunately for both stock and bond market investors as well (because most will not sell close to a top), we have exactly the same sentiment conditions in Treasury Bond speculators right now too, allowing abnormally low interest rates to continue fuelling ever-increasing bubbles in these markets to the point of lunacy.
Treasury Bond speculators have been just as irrational and stubborn about covering their short positions as precious metal ETF speculators have been about parting with their calls, which is a large part of the reason this ‘clusterf**k’ in the markets continues.
It doesn’t appear to be over just yet either, but when it is, all the games being played right now will exact a price, and that price will likely impoverish another raft of people, knocking them out of what we call the middle class.
Good investing will be possible one again once speculator stupidity is burned off. (In case you are wondering why I talk this way, try to keep in mind I’m a pirate.)
Captain Hook
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://www.treasurechestsinfo.com/Nuke/index.php (Copyright © 2014 www.treasurechests.info. All rights reserved; For the rest of the story, please visit our site and subscribe.) **http://news.goldseek.com/CaptainHook/1409686882.php
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It is good to remember that those controlling the US money are doing everything they can to make PM appear to be a bad investment, so everyone needs to weigh the information they are being given against their “gut” feelings.
Holding physical PM’s is much different than holding flat money, since flat money’s value can change rapidly overnight.