“Yellen Can’t Halt Trump Gold Rally That Funds Bet Against” – That
was the headline in a Bloomberg news report that was released on Sunday
afternoon. There’s a lot going on in that headline – none of it accurate
except for the fact that gold is moving higher despite the efforts of western
Central Banks to cap the price.
The basic premise of the report is that gold is moving higher in defiance
of the Fed’s apparent move to raise interest rates. Reading through the
report reveals even more misleading and completely false information than is
conveyed by the headline. Here’s a link if you want to read the article: Bloomberg/Yellen/Gold.
The headline itself and the article content are both highly problematic,
riddled with disinformation and completely inaccurate assertions. Anyone actually
who might have read the article and trusted the content has been taken down
to “ground zero” intellectually. Propaganda for the ignorant. I will be
reviewing several ways in which the article content is inaccurate, if not
intentionally fraudulent, in the upcoming issue of the Mining
Stock Journal.
That said, the headline outright acknowledges that the Fed’s goal with
respect to the price of gold is to prevent it from moving higher. The
idea that Yellen “can’t halt” the rising price of gold implies that such
intervention is part of the Fed’s mandate. It’s the first time I can
recall in 16 years of researching, trading and investing in the precious
metals market that the mainstream financial media, unwittingly or not, has
acknowledged that the Federal Reserve attempts to intervene in the gold
market.
If the implied message of the headline was inadvertent, it means that
conversations with respect to the Fed and its role in preventing the price of
gold from rising are actively occurring in meeting rooms and reporter
“bullpens” at several financial media organizations, with orders from “above”
to never publish the truth. Imagine if the Washington Post had withheld the
news about Watergate…
Today’s action in gold exemplifies the tenor of the Bloomberg report.
Almost as if “on cue,” in deference to Yellen’s attempt to “halt” the gold
rally from yesterday, gold was slammed for $9 this morning. The reason
generally attributed is “March rate hike hopes” LINK.
I guess that’s all it takes. Yellen or some Fed clown exhales “rate hike on
the table in March” and gold gets slammed by the trading computers.
Allegedly Germany has repatriated a large portion of its gold ahead of
schedule (why it was supposed to take 7 years no one can explain).
Notwithstanding whether or not the gold is actually sitting physically in a
Bundesbank vault, the announcement of the early repatriation conveys a sense
of urgency to do so. Furthermore, the eastern hemisphere countries are
hoovering gold like there’s no tomorrow for fiat currency.
The Feds and the western Central Banks are exuding fear with respect to
gold. The escalation in anti-gold propaganda reflects this sense of
desperation, as do the shallow sell-offs followed by a move higher in paper
gold that are initiated by LBMA and Comex paper traders after the Asian
markets close for the day. The conclusion remains that all sell-offs in the
gold market, like today’s, should be capitalized upon by adding to positions
in physical gold and silver and in mining stocks.
|
|
Dave Kranzler spent many years working in various Wall Street jobs.
After business school, he traded junk bonds for a large bank. He has an MBA
from the University of Chicago, with a concentration in accounting and
finance, and graduated Oberlin College with majors in Economics and
English. Dave has nearly thirty years of experience in studying,
researching, analyzing and investing in the financial markets. Currently he
co-manages a precious metals and mining stock investment fund in Denver and
publishes the Mining Stock and Short Seller Journals. Contact Dave at
dkranzler62@gmail.com.
|
The author is not affiliated with, endorsed or sponsored by Sprott Money
Ltd. The views and opinions expressed in this material are those of the
author or guest speaker, are subject to change and may not necessarily
reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the
accuracy, completeness, timeliness and reliability of the information or any
results from its use.
