Tom Silver wrote:There is risk in everything but your metals will not rise until Bitcoin pulls back the curtain on the fraud. The price on the fraudulent Comex will not be allowed to rise until global digital fiat and the institutions that support it are widely perceived as illegitimate. The fiat price of Bitcoin will be a huge part of that story. In other words Bitcoin will soar first and the metals will come later when political forces shift and they are priced on new and real markets.
Gold and silver are moving up but they are not spiking. It is not JP Morgan or the bullion banks that creates price movement on the Comex but the hedge funds. Just recently the currency traders in London have taken a break from monkey hammering the EUR/USD and GBP/USD crosses and this has allowed NY to move price up creating short term dollar weakness which the FED has been desperately attempting. When we have this weakness the hedge funds use HFT algos to move the gold price up and when dollar strength returns they add shorts and ride price weakness back down with the commercials who are already short. I commented the other day they use Martin Armstrong's reversal levels and have been bouncing price from one to the other which is has been between between around the 1240 and 1272 area. They have consistently been driving price from the lower level around the 1272 reversal level.
The actual demand for both gold and silver has been very weak and that is why the miners have cut back production as there is too much supply. Large international capital flows do not buy physical gold as the market is too small, does not provide liquidity and they do not want the associated delivery and storage cost. A strong dollar equates to across the board commodity weakness including metals.
For over three years the alt media has been stating "any day" that the dollar and Dow will collapse, the Comex will default and go bankrupt, credit freezes, supply chain disruptions, all markets are manipulated and of course metals will go to the moon. They have been all incorrect as they do not understand what causes price movement in markets. Most are simply salesman who market metals to consumers and of course the stackers who have bought into this scam. For some reason they think that metals should be divorced from the rest of the commodity pool and prices should just keep rising but markets just do not function that way. When price rises to a certain point demand falls then prices. It is also not true that the Bank of England failed to deliver gold to investors. They simply do not market gold that way. This is again the typical nonsense that these people promote.