For anyone who may have wondered why the big drop in price of gold Nov 29...here's a reason to ponder...or the many other times the price of gold has gotten to high for some of the rulers...starting a new mine has many unexpected problems ...this is just another risk to consider...but a big problem..IMO.
AuguriesCui bono?
Kevin Michael Grace
November 30, 2012
https://resourceswire.com/2012/11/auguries-10/
Gold was down (at press time) $24.10 (-1.4%) for the week to $1,727.30, and silver was up $0.10 (+0.3%) to $34.31. GoldCore reports November 29 that gold fell $22.10 yesterday in a manner that raised not a few eyebrows. “The CME Group, which operates the US COMEX gold futures market, said Wednesday’s plunge in gold was not the consequence of a ‘fat finger’ or a human error.
“One thing that we can say for certain was that there was massive, concentrated selling as the New York stock markets opened with some 35,000 lots sold which is equivalent to 3.5 million ounces and saw the price fall from $1,735 per ounce to $1,711 per ounce between 0825 and 0830 EST. One sell order alone was believed to be 24 tonnes or 770,000 troy ounces. Incredibly, there was 35% daily volume in just 60 seconds. The selling, like all peculiar, counterintuitive, sharp selloffs in recent months, was COMEX driven with COMEX contracts slammed leading to further stop-loss selling.”
Harvey Organ comments, “So I guess we should ask them who supplied the non-backed paper equivalent to 1% of annual production of gold within one second of the opening of the COMEX. The seller had no profit motive on this sell order.”
Ask away, by all means, but somehow one doubts an answer will be forthcoming. We may, however, reach our own conclusion based on the question posed by Cicero, Cui bono? That COMEX deigned to comment on this affair is an interesting development suggesting that the smell emanating from its operations has become to foul to ignore.
“Talk about ammunition for those who suggest the gold price is being suppressed or manipulated by central banks and allied bullion banks,” Lawrence Williams declared at Mineweb November 28. “There seems to be little other logical explanation for this kind of activity. It could even turn long-term suppression-deniers into GATA adherents.”
This leads to a further question. Why are GATA’s claims met with such hostility? Perhaps because we hold bankers in such high esteem. This seems unlikely. These are, after all, the people who brought the world to the brink of ruin in 2008 and then trousered trillions in taxpayers’ money as a reward for their trouble.
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