-- Posted Wednesday, 5 March 2008 | Digg This Article
| Source: GoldSeek.com
By: Warren Bevan
What in the name is going on in the gold market? Yesterday saw a near gap down $30. It happened so fast I missed half of it. So what happened? Well some serious weight, as in tons, was dropped and all bids were filled....instantly. It blows my mind how sharply Gold was taken down as some nefarious group better known as a “cartel” tried to run stops and trigger margin calls scaring out everyone in their path. Guess what? Someone huge is taking them on and this is the most obvious example yet. Almost as quickly as it fell Gold rebounded this morning, which is rare even in a bull market such as this. The chart is almost a mirror image of yesterday; it looks like someone is playing tricks on the ‘Ol boys who’ve had their way with Gold for so long now. It reminds me of kids playing copy cat repeating my every word trying to up my blood pressure. I say it’s about time someone started to get in the face of the “cartel” and show them who the boss really is. Once the public catches on even more they will have so much backing that there is no way this “cartel” can succeed. Unfortunately the sleeping general public were mostly unaware and unable to take advantage of the many gifts of lower and suppressed prices given to so many people in the know over the years.
If only the general public who will receive this bailout package would use it to invest in gold, the market would be halted instantly because of volatility. I wish the money could be pooled together to buy physical gold or put into a GoldMoney account and buy some gold grams. That would be the ultimate expression; a march on Washington of the modern day, so to speak. Such action would be a blatant violation of the desires of the powers that be, who just want the people to keep on living and will print paper until there are no more trees to keep them in the dark doing the same thing day in and day out. Gold will free the people and I am thankful to GATA, James Turk, Jim Sinclair and too many others to list for their selfless efforts to save the public, while making a little on the side for themselves!
It’s just too bad that by the time the American people in general wake up to this fact it will be too late as their wealth will have evaporated and most of the Gold and real wealth will belong to Asia and other sharp SWF’s and investors around the world. Foreigners will be able to buy America for so little it will make the Manhattan island deal look expensive.
As much as I admire, study and praise the words of Mr. Jim Sinclair last night in his commentary he stated “To assume we are going through $1000 with ease can only occur if my $1650 magnet is so low it is silly”. The more I study and follow this market and the higher prices get and the more interest stirs up the more I realize that Mr. Sinclair is right. His target is so low it is “silly”. I think that Gold will blast through $1000 so quickly it will infuriate the “cartel” and propel them to dump so much physical on the market it will be scary. Alas it will be too late, the public will be buzzing over Gold’s stellar rise and will begin to inquire and weight their portfolios accordingly. The losing battle to slander the value and importance of Gold will have failed and it will return to its inherent value and true role on this earth. This bull market has performed perfectly although it has been very frustrating at times it could not be healthier. It has built up huge support lines along the way at crucial price points and may not end its current upleg until it reaches $1500. I hope I am wrong as there would be little support to fall back on if it runs too quickly, but with increasing demand throughout the world this tiny market may not need to take breather. Only time will tell. I sure am not going to be on the short side of this trade for a long time.
One very true and interesting point I read yesterday was that during times of crisis people buy real things such as real estate and Precious Metals. And with the falling value of housing it looks like Precious Metals will be the winner. Big winner.
The “cartel” is in so much trouble and they know it. Paper gold will not matter as people will realize it is manipulated too easily and is nothing but a paper promise as they begin to see their dollars erode. Investors and the general public alike will soon invest in mining stocks in strong currencies such as the Canadian Dollar in order to keep purchasing power and reap the rewards of this bull of all bull markets. The large caps will do great but the Junior and Exploration Stocks will perform better than my wildest dreams. I do have some pretty wild dreams but my waking hours may be even more pleasurable. Enjoy these times, they are very interesting. It seems every day we are witnessing major historical events being written.
Regards,
Warren Bevan
www.preciousmetalstockreview.com
-- Posted Wednesday, 5 March 2008 | Digg This Article | Source: GoldSeek.com
