NovaGold (NG)

[davewashdc]

A slightly better than expected job report in the usa, so the London cabal decided to take gold price down 1%+ and silver down almost 3% just before the open. The player in this mini-market decided to bail by withdrawing about a million shares in the first 1/2 hour, much to the delight of the short side.

It remains to be seen how quickly (and how far) the price of gold decides to bounce back today. There was a recent study inferring how the 5 big bank/fin co. players in London are biased towards the downside since 2003. You can see this bias by looking at the last week's 24 hour gold price cycle. The predominant influence to the down-side comes during hours 8 thru 15 (just before usa markets open; their 3:30 london phone gathering seems to be the most telling)

http://www.infomine.com/investment/metal-prices/

They gather by phone twice each day (London time: 9:30 and 3:30) and set their collective price goals. Of course they pass this inside information on to their respective trading operations on both sides of the pond. More than a bit of a scandle that perhaps the regulatory powers that be will someday get around to. (don't hold your breath)

Both gold and silver prices are beginning to bounce up a bit from today's lows; also a somewhat predictable event, as of late particularly. Don't believe me, look at the above weekly chart for both metals. I have been observing this for a few months now.

IMHO, today's action was to make up for yesterday's uncontrolled abrupt rise in both metals (due to the crimea crisis developments?).

I look forward to china's announcement (next month?) about how much of the world's gold they now possess. I am of the opinion that most of these western insider price setters are heavy into the "paper gold" side of things.

Full disclosure: I decided today to add to my shares at $4.02; including some short term call options purchases at a $4.00 strike price. We shall see. I tire of the corruption of their methods, but am now trying to take advantage.

I am focused on NG because the short side seems to be less in control than with many other miners's mini-markets due to the risk associated with the speculation about some bigger fish making a run at this smaller fish with a great inventory in the ground in n. America.