(edit) >> Have you no concerns about the lack of 'fine print' restrictions that would prevent the ETF from "leasing" out (on a short term basis) a sufficient amount of bullion to pressure the cash market into driving the entire PM complex lower whenever the banksters/COMEX commerials had their short positions in order? <<
Concerned? Yes, but what can I really do? As I said I do not think it'll change the LT picture. We keep running a supply decifit w/respect to gold every year that is only met by CB selling. Same w/silver. If they want to manipulate gold to the point where it's no longer appreciating then they'll simply make this an even longer gold bull, albiet one that'll be slower to appreciate. There are still many gold investments that'll do well with a new trading range on gold of $375 to $450.
The problem w/the conspiracy buffs is once you subscribe to that train of thought, then every time you're wrong ST about gold it must be the "CABAL" knocking down gold prices. If those who buy gold simply buy the physical vs playing in the BS world of COMEX much would be solved.
Suppose the PPT does short GLD into the Abyss. How does that change the FA picture w/respect to the Dollar? Once imbalances become too great you'd see long buying combined w/some short covering. Again, I think if you step back and look at the LT picture w/respect to gold and silver it's exactly what you'd expect after a 20-year bear market. Now granted I think both should be higher by now and that may be the PPT influence, but all they are doing is controlling the overall rate of increase/decrease - not the final direction. Same with the Naz and Nikkie bubbles of which I think both gov's play a part in managing the decline.
Just my swag. This is not my forte. If you manage to get enough people together to influence the SEC I'll happily join your protest.
If the PPT wants to knock gold back to $400 again let them. I'll happily accept that gift as it would represent a great risk/reward ratio again. On average I'm about 30% exposed here to PMs.
I think yesterday's smackdown was $5-7 influenced the PPT or shorts and the rest was weak specs getting overextended and overconfident again.
At this point China and Japan know they "trapped" w/respect to the Dollar. I'm sure they would love to have less exposure. Knock gold down far enough again and they'll be buyers. Of course we won't really hear about any official buying until years from now after they've dug themselves out of this currency/trading problem.
AI
