Tuesday, September 27, 2011

Short covering rally

As expected, the shorts are covering after the sell-off last week. (The too big to fail bullion banks make loads of fiat/'money' on the upside and downside). If you can't beat them, join them huh?  We just need to know when the banks collude to sell off their futures contracts and when the 'crimex' increases margin requirements.  Not a easy job when your an outsider.

Below are 5 minute charts of Gold and Silver, both may have bottomed on Sunday evening futures trading and are in short covering mode (rally). Based on the charts, you just never know if this low will hold when the banks can bring the 'price' down on a whim.

Gold hits a low of $1535

Silver hits a low of $26.15

Nothing has changed fundamentally regarding both Gold and Silver. The monetary supply has expanded more since 2008 than ever before. If the U.S. Market starts to break further to the downside, the Fed may step in and offer up another 'QE' program in an attempt to 'stimulate' the economy again.  Albert Einstein quote:  'Insanity is doing the same thing over and over and expecting different results'.

Europe debt is completely out of control and the politicians/banksters essentially do not know what to do about it aside from fixing the issue with a bailout. Counterfeiting currency is illegal for citizens to do, but it is completely legal for governments around the world.

Trading your fiat for Gold and Silver is not a get rich quick scheme. The declines attributed to the bullion banks are an attempt to show people that PM's are not a good place to 'invest' and can loose 'money'.  These crooks can manipulate the spot price, but the free markets will eventually take over.  I will personally continue to accumulate as much PM's as possible when the prices declines as seen last week.   

No comments:

Post a Comment