Gold is still in the primary decline since 2011 peak at 1920. Is it all doom and gloom for the yellow metal and gold-silver stocks? I reiterate my view that the current corrupted financial system is even more vulnerable today than during 2008 due to the idiotic and selfish policies initated by the central banks and the governments.
One of the policies I seldom mention is the expansion of ‘balance sheet’ (which you can find it in my books) which is cor-related to the gold price. Credit Suisse estimates developed market central bank balance sheets are likley to expand by by another 19% by the end of 2014
Gold Price manipulation
Zerohedge reported that: Due to western central bank price manipulation, the mining sector is in critical condition, the supply line is all but halted, and the physical supply is being swallowed up by Asia. The last shoe to drop is for major mining companies to start closing down production at major mines. Though this would be perceived as the end for gold, speculators will be happy to know that this would be the beginning of the biggest Fed induced bubble in history! But unlike previous Fed bubbles where they support the price increase, the gold bubble will be a result of western central planners mis-managing the gold price for the past 3 decades and finally losing control.
Friday October 11th, gold trading was shut down for 10 seconds according to the CME.
Why, because someone sold 2 million ounces of gold at one time. Who does this? Who sells nearly 2 and half percent of annual gold production in a single minute? The gold valued at over $2.5 billion could not have been sold by a small trader, and certainly not the smart money, institutional investors know that you don't exit a large trade like this...
So who could it be? Try the dumb money, The Western Central Banks.
As noted by organizations like GATA, TF Metals Report, Zerohedge, and Shtfplan, gold manipulation is out in the open. Friday October 11th is just one of the daily examples.
With the western central banks suppressing the price, the eastern central banks have been happy buyers.