With the announcement of the two new gold contracts, which are a joint venture of the criminal to the core CME Group (COMEX) and Shanghai Gold Exchange (SGE), points to change in how gold trades hands around the world. Some, like myself, are highly skeptical of this new venture and don’t see how it can benefit you and I – the stacker community. Outside looking in it appears as if there are more tools for the crooks at the COMEX to do even more market rigging – if that’s even possible!
At the end of the day it doesn’t seem as if it’s going to matter. Gold and silver are physical items and as our global economy continues to sour and the stench of rot continues to rise, more and more people will be exchanging some of their fiat currency for actual money in the form of physical gold and physical silver. People around the world are becoming curious about central banks around the world acquiring more and more gold. When you have Bundesbank, Germany’s central bank, get in the gold market this gets traders, money managers and hedge fund managers attention around the world. It’s one thing for Russia and China to acquire gold month after month after month after month, year after year after year, but when Germany jumps in, well, that’s a little different story altogether.
It was bad enough in 2018 when Poland, Hungary and other central banks reentered the gold market for the first time, in some cases, in decades, but now Germany who is one of the central banks driving the debt of the EuroZone. Gold is the enemy of debt and Germany is breaking the rules by acquiring gold instead of debt.
The past two weeks we have seen gold and silver moving within a fairly tight trading range with both metals banging on the door to run higher but somehow (read market rigging) not being able to get out of the gate.
$1,500 is an important line for gold and $18.00 for silver. I was calling for a new floor for both metals about a month back when the metals were moving like the global economy is serious trouble. You know, like central banks around the world had begun printing confetti, called currency, like it was monopoly money.
It appears we are going to get a weekly close for gold and silver above these important lines. It’s still early in the day, but I feel confident the strength in the metals is going to prevail, at least until Sunday opens. It wouldn’t surprise me at all to see a really nice high number – well above $1,500 and $18 – only to see them smashed, beaten and pummeled when the so-called market opens on Sunday night. Either way, enjoy the climb higher and let’s see what happens!
