There are a lot of unanswered questions for Tim Geithner and his pals in the banking industry. One Wall Street suit who’s dirtied his bib is Bank of America CEO Ken Lewis. Lewis should go to jail for securities fraud, according to Porter Stansberry of Stansberry and Associates Investment Research.
Tuesday trading in gold turned into a pretty big bear raid. As I mentioned briefly in my rant yesterday…starting shortly after Sydney opened on Tuesday morning…someone bombed the bullion market with a big sell order. The word ‘big’ is relative in this case. In the extremely thin trading that characterizes Far East gold and silver activity…a 1,000 contract sell order would hammer the market…and that’s pretty much what happened in gold. Ditto for silver.
Although there’s a veritable laundry list of obstacles that could blunt the U.S. government’s ongoing economic turnaround efforts, its single-biggest challenge may come from its single-biggest creditor – China.
Congratulations — you just survived Black Swan Month. And in the process, a persistent and seemingly prescient Internet rumor has been put to rest.
I’m keeping an eye out for financial Black Swans this month — more than usual.
After Friday’s lousy action in the gold and silver price…and their shares, it was no surprise to me that the boyz hit the price right at the open in Far East trading early Monday morning. They weren’t even trying to hide…it was like a two by four right between the eyes. Every rally was crushed…and once the London p.m. fix was in at 10:00 a.m. New York time, they really went to work on the price. This continued through what was left of Comex trading…and then into the electronic Globex trading after.
In the currency market, the dollar slipped against the euro. Late Friday, the euro was trading at $1.3287 vs. $1.3149 on Thursday.
Americans are becoming used to seeing our money get sucked into a government-created whirlpool of debt and frivolous spending. A trillion dollars used to be a lot of money, but after the last few months, it is nothing. Get out your checkbook, Uncle Sam.
As per usual these last few days, gold did nothing in Far East or European trading. However, about an hour before the Comex opened in New York, the gold price headed lower in a very similar pattern to what happened on Monday. See the graph. This decline lasted until 9:15 Eastern time when a rally commenced. But it was all for naught once the London p.m. fix was in. The bids disappeared, and the price dropped $12 in just a few minutes…and that was it for the day…as the tiny rally that followed was negated by the end of Comex trading. The boyz just aren’t letting the gold price show any signs of life when the Dow is under this…
The Kitco gold chart for the last three days is a sight to behold. I’ve never seen such price activity. Silver too.