The Phaserl


Update on the Precious Metals “Fake-Rally”

by Jeff Nielson, Bullion Bulls:

A couple of weeks ago on this thread, I suggested that the operation by the bankers to march gold/silver prices higher (so they could then be slammed lower in a “crash”) could easily be approaching its end.

That suggestion was based primarily on two factors:

1) After silver prices had suspiciously (impossibly) “lagged” the price of gold for two, solid months; we suddenly saw silver surge higher.

2) We’re now squarely within the optimal window for the One Bank to stage its“Next Crash”.

Now, this week, we can add a third consideration to the suspicion that the Next Crash is coming sooner rather than later. This time the new clue comes from the gold market:

Ole Hansen, head of commodity strategy at Saxo Bank, noted that gold’s net length jumped 27% from the previous week and is within reaching distance of its all-time record high seen more than five years ago.

Including options contracts, He noted that gold’s net length represents 23.4 million ounces, just down from 25.4 million ounces seen in August 2011.

So, we’re now close to equaling the amount of PAPER “interest” in the gold market which existed in the gold market, right around the time it began a five-year slide. Why is this of such significance?

Because we’re dealing with a (phony) PAPER market. If you want to crash a particular sector, you want to have two factors in your favor:

a) A (relatively) high price.
b) A peak in the (paper) holdings of that asset class.

Take the price up, and then you can get your Liars in the media to talk about how gold and silver have “topped”, despite being currently priced at only a tiny fractionof their actual value.

That’s the excuse for crashing a market. The MEANS to crash a market (among other things) is a heavy level of “interest” in that market, which can then be quickly/immediately LIQUIDATED, in order to provide the maximum degree of downward selling pressure on that market.

So, the bankers have all their ducks in a row. This means we should all “bank on” the precious metals crash, and general market crash occurring in the immediate future. Right? Wrong.

As I regularly remind readers, as the pawns/victims of these markets, we must always focus on PLAYING DEFENSE. This implies numerous facets of one’s behavior. One way in which we “play defense” is by never betting in advance on what we THINK is coming soon.

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