and then brought down a lot using the XAU gold stocks index,
to 'put' short gold stocks..
That might be happening again.
Concerning the XAU gold stocks index
https://www.marketwatch.com/investing/index/xau In late 2007, early 2008 the XAU Gold Stocks Index was shorted
indicated by increasing levels of the XAU, bringing down the gold
stocks.
From
'XAU Gold Stocks Index Brought Down
Through Derivatives Market Manipulation'
By Rob Kirby ,
Feb 2008 https://www.marketoracle.co.uk/Article3791.html "For those of you who do not remember, pundit after pundit made
claims then - that investors were selling their gold equities to meet
margin calls or because they were the only investments that they
owned with profits in them.
This was THE ONLY REASON offered at the time, or since, to explain
this completely counter-intuitive de-coupling of the precious metals
equities from the underlying.
That is – until now:
By examining historical Put / Call open-interest data on the Philadelphia
Exchange's XAU index – we can clearly see a pre-emptive build in Put
[short] open interest on the XAU Index Futures, that is counter-intuitive
to the upward price movement in the underlying precious metals prices.
The bloating of the open interest in the XAU Puts [ a precious metals
derivative ] was DIRECTLY RESPONSIBLE for the collapse in the XAU.
These derivative induced sales of (gold) equities had NOTHING TO DO
with raising cash to meet other commitments as widely reported. This was
a show of overwhelming brute force by placing ‘levered bets' [I prefer the
term fore-knowledge] to bring precious metals equity values DOWN prior
to predictable dollar-negative news / events [like Iran telling Japan that
they would only accept Yen for Crude oil shipments].
Someone clearly did not want investor sentiment aroused by soaring
precious metals prices.
........
........
"You see folks - the sub-prime debacle has been a banking-led crisis
from the beginning. Isn't it strange that Put [short] open interest build up
in the mining stocks has been consistently and overwhelmingly MORE
than that of the BKX [KBW Bank Index] and the MFX [Mortgage Finance
Index]?
Precious metals equities have categorically been ‘ambushed' to prevent
the buzz or same investor excitement that helped propel the last great
gold bull market in the 1970's. Monetary Authorities and their agents were
absolutely behind this massacre in the precious metals equities –
(being) derelicts with (the use of) their paper derivatives.
Then, they lied and spread false rumors to cover their tracks"
........
........
"Their real Achilles Heel – however – is their increasing lack of physical
metal and/or their increasing reluctance to sell their remaining vaulted
stocks to continue suppressing demand for the real thing - physical
metal – bars and coins.
But that's another murky, disingenuous story for another day."