the ups 'n downs of the precious metals has been an adventure to nowhere for
all of us. Understanding the algorithms of the banksters
has been a futile exercise without a whistleblower. We know they concentrate
their heavy paper trade dumps between 7AM -11AM when the LBMA is active.
Certainly no one dumps 50,000+ contracts at the slowest time of the daily
trading in hopes of a profit! Physical spot prices are derived from paper
trading, this we know. There will always be speculators, independents and
hedgers in there. In a normal free market trading without manipulation and
price suppressions that would be wonderful. But, that's not the way it is.
So, let's take a glimpse of the extreme divergences of the Gold price from
its WEEKLY 50-week Mov. Avg. Quite simple actually;
a chart a neophyte can comprehend.
The "Fear" (capitulation) extreme was in late 2008 when gold's
price went 17% below its 50wma. Gold had never dipped below its WMA
since that occasion...ever. I suppose a technician could draw a support line
beneath -1%, -6%, and -5%. But, that's not the intention of this
presentation. The "Greed" (enthusiasm) peaks have been 28%, 11% and
7% since 2011.
We have tried to represent the emotional reactions of buyers/sellers in
graphic form as to what human actions may be in the crystal ball for the
We don't know. But factor in all your fundamentals along with more paper
confetti money from the Fed, and go from there.
where gold goeth, silver followeth.
Click image for larger view