GOLD: Night and Day, you are the one….or not.

The older Slog veterans (hereunto referred to as Slogiatrics) will remember the days when, in my former identity as notbornyesterday.org I pointed out (in July 2009) how:

‘…falling gold prices since mid 2007 have nearly always preceded stock market days expected by opinion leaders to be bad. Furthermore, they tend to take place in the half-hour before and after London and New York markets open. The falls range in size, but are never less than ten bucks – and have been as high as thirty-five. On 9/11*, the price fell $3.50. Before the latest econo-fiscal crisis, gold had ALWAYS risen in price during a period of plummeting equities, and ALWAYS risen faster still during uncertainty about currency values/governments printing money. We’ve had all these factors over the last two years, but the price of gold has on the whole remained stubbornly below a $1000 breakthrough level..’

I also analysed (albeit in a pretty amateur way) how the NYSE am price of gold always plummeted after a Asian pm rush of buying the stuff. Now comes news via Slog comment threader Chris Dawson of a rather more sophisticated interrogation of this syndrome. He writes:

‘I’ve imagined 3 investors, each starting with a million quid on 2nd January 1991, using the 3 consistent investment strategies of:-

1. Buy every day am, sell pm.
2. Buy every day pm, sell following morning.
3. Buy on 2nd Jan 1991 & keep your gold, ie follow the official market.
As of yesterday, investor 3 would have his original 5k troy oz stash, worth just over £5m, lucky man.
Investor 2 would have amassed a gargantuan 37k troy oz stash worth £37million.
Investor 1 would stand shirtless with 131oz of Gold left, worth £133k, an 87% loss.’
Chris got to this after reading an article on zerohedge by Chris Martenson. You can study the full workings out here.
So we can all see just how right the Telegraph’s Thomas Pascoe was to blow the whistle on this gravy-train of capped-price Fort Knox emptying.

15 thoughts on “GOLD: Night and Day, you are the one….or not.

  1. Buying Glaxo in 1980 did not do me any harm,30 years later.The market triumph over failed politicians is gathering momentum,Spanish bond yields and that nice man from the IMF telling the world that pretty Christine and her predecessors have the economic competence of Garry and MarK,indicate an eventful August.I seem to recall that the gold price is ‘fixed’,daily, behind closed doors at NMR.Caveat emptor.

    • Indeed. Gold is just another asset. If you think the game is rigged – don’t play. Simple as that. Plenty of other markets…

    • sorry William. Rothschild left the gold ‘fix’ back in 2003. a little cya i think expecting the fraud to be exposed eventually.

      • Technical analysis on Gold is A WASTE OF TIME!! The crooks have the system 100% rigged NOT 99%…. 100% !!!!!!! and until the federal reserves rigging powers are cut off at the mains, Gold will remain at the price range THEY want it to be in THEIR system…… $1600 oz.

        If the manipulation was stopped on Monday the price would double or treble within weeks simply because every other paper asset (bonds etc) are tainted and rotten to the core and there are NO other trust worthy monetary mediums other than Gold or Silver bullion.

        The day the Wall st and City bankers are banged up along with all the politicos who are fed by them cannot come soon enough.

        Roll on the Gold backed equitable financial system waiting patiently in the background along with total debt Forgiveness and the end of the old establishment network and its multiple cronies and bully boys.

      • That day will come when Wall Street no longer has the support of the most powerful military force on the planet.

        Until then their bits of paper will rule, pretty much underlined by the need to express a $/oz valuation.

        An obvious contender to regain the title is China, however I suspect the planet will no longer exist in its present form for that to happen as the American military will prevent it.

        Given the alternative, I think I’d like the Americans to continue as head honchos for a few more generations, so it’s behoves me to continue playing their game, to their rules and smiling throughout, inscrutably if necessary.

  2. The Asians and Arabs, especially Chinese, are buying the physical while the crooks on Wall St and the Shitty are placing paper shorts/contracts during the day.
    I was wondering why Helicopter Ben as yet to press the print button on QE3 but then certain banks might find a declining dollar and surging gold/silver a little uncomfortable with so many naked shorts to cover.

    • Benny would be outvoted if he proposed QE3 now. He may also be trying to see the end of Obama (he is a registered Republican).

    • They sure are.Got to be laughing their heads off getting it
      so cheap,courtesy of the Fed.They’re the eminence gris behind
      the price manipulation.
      Just how much tungsten is there in Fort Knox ?
      I’m sure there’s very little gold left,else why refuse and impartial
      audit for years, like they’ve been doing..

  3. Gold as a money making vehicle is the same as the rest of the markets…..open to manipulation, dependant on your market timing ability and with large downside risk in the short term.. As a preserver of value it is without equal as 2000 years of history have shown. Buy the dips, take physical metal and bide your time, you will be happy that you did.

  4. I’m as cynical as the next guy – in fact I’m typing this with my tinfoil trilby on right now – and I am down with the fact that a lot of markets are “intervened in” regularly.

    But, viz gold, the obvious question to ask has to be, if we are to believe its price is 100% controlled by the not-so-shadowy forces of fiat money, why is the price not still $250 /oz.? Clearly they are not quite as in control as you think.

    There are a multitude of participants and, yes, some of these will be nefarious. It’s part of the game and always has been.

    Markets go up, down and sideways; the one thing they don’t often do is move in a straight line.

  5. Pingback: CONFIRMED AT LAST: The attempted cover-up of how JP Morgan torpedoed Lehman Brothers | A diary of deception and distortion

  6. Pingback: GOLD: A buy signal from the horse’s mouth | A diary of deception and distortion

  7. Gold IS manipulated, everything is manipulated for the friends’ benefit.
    But the muppets in the city are playing with the paper gold, they are too lazy to mess around with physical.
    Soon, if it isn’t already here, there will be two sets of prices. Physical & paper. You just worry about physical gold, you’ll be left alone; they can have all the paper contracts they want.

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