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15 April 2013



Golly, west texas intermediate crude also took a tumble but prices are not falling fast at local gas stations, nor do the clerks seem to know why... 'Do you want your receipt?' is all they seem to be able to state.

I'm shocked (shocked!) at the notion of an orchestrated margin squeeze, but am not convinced one should expect the local goldbuggers to be on the forefront.

Paul Emery

Sorta quoting George:

One of the great things about capitalism is you can game the system and one of the problems of capitalism is you can game the system. Which is it? The bubble of the week.


Paul, just remember the old saw that under Capitalism, man exploits man, but under Socialism it really is the other way around.

Every system ever imagined has been gamed, and every system that will ever be will be gamed. I don't know about you, but I think free and open markets are the hardest to game.

Paul Emery


Is the price of gold a free market item? If I have an ounce of gold in my hand can't I sell it to anyone at any price?

George Rebane

PaulE 533pm - Not at "any price", but only at the price that someone is willing to pay for it in a free market. Only the government (a la FDR 1933) with a gun to your head will make you sell your gold at a price that it decides to pay.


"I've never seen Ben smile this wide for so long" -Mrs. Bernanke #gold


Maguire: “Gold and silver only have this type of selling when there are extreme shortages of the physical metal. I am totally aware that before this takedown occurred there was an imminent LBMA default.

I know, I know! More conspiracy theorizing....right wing crackpottery!

But then again...

“In front of 3 witnesses, Bank of England Governor Eddie George spoke to Nicholas J. Morrell (CEO of Lonmin Plc) after the Washington Agreement gold price explosion in Sept/Oct 1999: George said "We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K." (GATA, 2003)

Oh I suppose that this could be dismissed out of hand if there really was a free market but one has to wonder with the codification of "systemically important financial institutions" (http://www.investopedia.com/terms/s/systemically-important-financial-institution-sifi.asp) why todays (and Fridays) gold price smash isn't simply a case of perception management?

Can't have the rabble doubting the system now can we?

Brad Croul

A: China's slowing economy (according to an article that graced a bit of fish wrap floating around at the local coffee shop). Apparently, the Chinese are big believers in gold (as well as powdered rhino horn).


Paul 5:33, you do understand that a market can both be free and gamed at the same time, don't you?

Game theory is an active and interesting branch of mathematics. If you know something about the market that others don't, you can game it.


As I have said... I could not say it any better myself... there are 2 precious metals markets, paper and tangible.


"As of today, we are completely sold out of silver."

"Last week, we turned away business in excess of 100,000 ozs of silver because of stock depletion"

George Rebane

MikeyMcD 929am - to which I might repeat my call that the recent plunge and current bounce of precious metals prices was entirely manipulated by the big guys now re-establishing their positions at lower entry points.


You can fleece a sheeple more than once...

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