With the Dow declining nearly 180 points and continued uncertainty in the gold and silver markets, today King World News is featuring a powerful interview with one of the greats in the business that warns gold is hemorrhaging out of the U.S. Fed’s vault as the ECB is about to expand monetary and market interventions.
James Turk: “The choke hold put on the precious metals the past several days has been relentless, Eric. It was so forceful, it might even have been unprecedented…
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Turk continues: “From the $1177.10 closing New York price on October 28, the gold price ended lower for seven days in a row, until today, with its small bounce. Silver over the same period closed lower on six of seven trading days, or down seven of eight if you count today.
Why Has There Been Such Tremendous Selling Pressure?
It is extremely rare to see such selling pressure with the metals closing lower over several consecutive days like this. When a period of several consecutive lower closes does occur, it it usually happens to drive out some speculative excesses that have developed. But with sentiment toward gold and silver at such low levels, there are no speculative excesses today. So why has there been such selling pressure?
It could be that the last remaining weak hands were being driven out of the market. That possibility is easy to understand given the unusually long time this correction in the precious metals has been going on. But there may be another reason.
Namely, the selling is being driven by the paper-gold market and the central planners no doubt have had a hand in it. The paper-gold they sell needs to be matched from day to day with a show of force, and the only way to do that is being able to deliver physical metal when the buyer of your paper promise asks for physical metal rather than cash settlement.
Gold Is Hemorrhaging Out Of The Federal Reserve’s Vault
We know that 20 tonnes of gold were moved out of the Federal Reserve’s vault in September, continuing the near continuous monthly outflows that began in February 2014. I don’t know where the physical silver is coming from that alleviates some of the tightness that has been prevailing for a long time, but the gold flows out of the Fed are clear evidence that central bank gold is being put into play to keep a lid on the gold price.
I guess when viewed from the perspective of a central planner, whose primary purpose is to maintain the status quo, this gold needs to be dishoarded from central bank vaults. Otherwise the price of gold would be skyrocketing because the demand for physical metal is so intense, and a high price is the only way to bring the paper-gold market and physical-gold market back into balance. But eventually the central planners’ game will end, just as it did in March 1968 with the collapse of the central bank cartel called the London Gold Pool.
In this regard it is interesting to see that the Fed is coming under increasing pressure. There have been a number of articles the mainstream news media that while not yet criticizing the Fed are questioning why its policies are not working. These articles are a roundabout way of acknowledging that the U.S. economy stinks.
ECB To Expand Monetary Experiments And Market Interventions
It stinks in Europe too, so there have been reports that the European Central Bank is going further into uncharted waters with its dubious monetary experiments and market interventions. The ECB aims to worsen its already strong financial repression by taking euro interest rates even deeper into negative territory at its meeting in December. It will do this by increasing its charge to banks that park reserves with the ECB.
Anyway, let’s look for a bounce in the precious metals this week to work off their oversold condition. The strength of that bounce will give us an indication if gold and silver will soon be making another attempt to break out to the upside from the trading ranges in which they have been mired for too long. ***KWN has now released the powerful audio with one of the top economists in the world, Michael Pento, where he discusses what to expect in gold, silver, of the year, what surprises to expect as well as how investors can protect themselves, and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Legendary Pierre Lassonde Says Super-Wealthy Now Buying Massive Positions In The Gold Sector CLICK HERE.
***KWN has also now released the extraordinary audio with former U.S. Treasury official, Dr. Paul Craig Roberts, where he discusses the desperation of Western central planners, the global Ponzi scheme, how it will unravel and collapse, the rigging of the major markets, the corrupt media’s role and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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