These guys are seriously overplaying their hand so something must be up. – John Embry email to me in reference to the blatant intervention in the stock and gold futures markets
The Cliff’s Notes explanation to John’s comment: The Fed knows the economy is technically in a recession and will be forced to take Fed Funds negative sometime in early 2016. Yellen floated that trial balloon earlier today. That’s an event that should launch gold.
First, in reference to the extreme degree of anti-gold propaganda currently being vomited by the western media – see this article from Mark Hulbert LINK and this article from the new Jon Nadler LINK – here is what is going on in the physical gold market:
Reuters has reported that the China Gold Association has announced that Jan/Sept gold production was up 1.48% to 356.9 tonnes and consumption was up 7.83% to 813.89 tonnes. This is the biggest gap between production and consumption growth that JBGJ can remember. The huge Chinese output growth has been going on for well over 10 years and with the early mines getting old sustaining the trend must be getting increasingly difficult. A leveling off or even more a decline in Chinese gold output could increase import demand dramatically. – John Brimelow from his Gold Jottings report
Typically when there’s bad news coming, the Fed/banks engage in an extreme degree of market intervention to keep the stock market aloft and a heavy lid on the price gold. After all, they can’t have a rising price of gold alert the world to the degree to which the U. S. system is one big fraud.
This post was published at Investment Research Dynamics on November 4, 2015.
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