Gold - $330 next as it continues its climb

  1. 9,081 Posts.

    "$330 Gold Within Striking Distance "

    "A quiet, but very firm U.S. gold session. Early morning U.S. time, gold bolted higher, gaining $3.50 at one point. Just like yesterday, a new seller emerged to cap the rally. It came from a broker known to do bank business, but one who has not been that active lately except for the past couple of days. I can only surmise it is JP Morgan Chase disguising its selling. I say that because the Comex and bullion dealer world is a swirl of talk about the coming JPM gold derivative debacle.

    Midas has reported talk about Morgan before, but the talk is different at the moment. The trading sharks not only believe the story now, but are prepared to act on it by taking on Morgan and the rest of The Gold Cartel. This is terrible news for Morgan and GREAT news for us. As said here often, Dracula-like Morgan and the rest of the cabal cannot stand the light of day to shine upon their gold activity. They cannot deal with the investment world knowing the truth about their price-fixing and the massive size of their gold short positions.

    As a result of all this talk, the last thing JPM wants is for the trading crowd seeing them selling even more gold.

    It would appear that not only is The Gold Cartel desperately trying to keep gold from exploding through $330, but the PPT is doing what it can to prevent derivative giant JPM from complete collapse. Somebody was all over Morgan today, propping the share price up all day long after the early going. The banking index eroded steadily, closing on it lows of the day at 686, down 28. Morgan, on the other hand, traded $19.50 near the opening, but rallied the rest of the day to close at $19. 87, down 57 cents. The price-propping could not have been more blatant, or more obvious as the DOW was crushed, closing at 7942, down 230 and the DOG fell 36 points to 1216. The NASDOG is only 10 points away from 5-year lows, which means investors in for the long-term are being annihilated.

    Regard, the banking index trading versus JPM:

    http://finance.yahoo.com/q?d=c&c=JPM&k=c1&t=1d&s=%5Eixbk&a=v&p=s&l=on&z=m&q=l

    Does that stand out, or what!!!

    The Working Group on Financial Markets knows what is at stake with Morgan. If Morgan’s gold/interest rate derivative positions blow up, the U.S. financial system could blow up. Normally, one would be thinking of a Morgan merger with another bank, but what bank out there could deal with their spectacular 24 trillion derivative positions? What bank could take on their gold short position with its 45 billion in gold derivatives?

    Morgan owes various central banks a staggering amount of gold. Problem is the current yearly supply/demand deficit is running at 1400/1700 tonnes, mine supply is only 2500 tonnes and going down, and the bullion banks already owe central banks around 14 to 15 thousand tonnes of gold. Morgan is trapped. They cannot cover their gold shorts without gold rising several hundreds of dollars per ounce."

 
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