It is easy to see that the paper gold and silver game is being waged around the 50–day moving averages. The metals fight to breach the 50-day averages only to be knocked down below it. You can see it in the six-month charts, below.
Well, at least gold and silver are holding up well around $1,250 and $20. This has to resolve itself, up or down shortly. Those who try and predict the markets with technical analysis (price and time) are having a hard time of it. Larry Edelson has been fine with the big picture – predicting the fall and also predicting the soon-to-come rise, but his “bottom” is a moving target. First November, than January then May of this year. How can anyone predict this with any certainty? Who would have expected the Fed to renege on Germany’s request to repatriate their gold? Who would have predicted China’s insatiable appetite for physical gold? There are so many (small) black swan events that are swirling around the precious metals market that predicting anything is at best, a guess. Is the bottom in? Will gold drop again to $1,200 or lower? Who can know? It’s a flip of the short-term coin now and I believe it makes no sense to guess wrong by sitting on the sidelines. My son and I both made another sizeable purchase this week.
Michael Lombardi has been publishing his newsletter that focuses on the stock market and financial and economic analysis for as long as I have been writing. He is not a Goldbug – he is much more main stream oriented than I am – but his recent comments on the gold market and manipulation (or lack of it) sounds like the same stuff we write about every day. Our story is spreading. His conclusions? “A massive price shock is coming to the gold market…and it will be on the upside.” Check him out in the Featured Articles Section below today.
There is also an excellent article on the gold suppression scheme by Grant Williams titled, The evidence of gold price suppression is everywhere. Another interesting article is in the Zero Hedge section and they conclude, “Gold is a manipulated market. Period.”