As I write, we are in the midst of the Easter Holiday and both gold and silver have closed on strong support. Right now gold is on $1117 and silver has risen to nearly $18. But is the market reflecting the ‘correct’ price for the metals? It is becoming ever more likely that the Gold Price is going to jump higher and faster than you might expect.
On the question of precious metal pricing, more evidence is emerging that the gold price is being manipulated. Right now the Gold Cartel are doing you a favour, though not deliberately. They’re holding the price down, which of course gives us more time to establish our positions – but not for long.
GATA has for many years campaigned to publicise the manipulation tactics of the big banks and to put an end to gold price fixing. It is now becoming clearer that solid evidence of such tactics has been ignored by the Commodity Futures Trading Commission.
It is reported by a well-known London gold trader that the gold cartel (purported to be an alliance of central banks, the big bullion banks, and the US Government) has accumulated a huge unhedged short position in gold with the intention of holding down the price. But there isn’t enough metal to cover the paper promises. He refers to it as a ‘rigged’ market. But the water is backing up against the dam and the dam is getting close to bursting point.
What will happen when the crack in the dam bursts. Gold is likely to soar (together with silver).
Adam Hewitson the founder of Market Club believes from his analysis, that the gold market is likely to stay in a range – what he calls an Energy Field – for the rest of this year before breaking out to new highs in 2011.
On the other hand James Turk, founder of GoldMoney, thinks we should revisit $1200 by April and that silver will outperform gold. It’s all swings and roundabouts, but the swings are likely to swing higher and roundabouts turn faster, so hang on for a very exciting, and profitable, ride.
We can’t be precise on the timing of the next gold and silver breakout, but when the metals move over the resistance line, the pace is usually fast and furious, and easily missed. Its better to establish a position ahead of the game, even at the risk of a short term downturn, and be positioned for the upward surge when it comes. Don’t miss the boat.
Source by Anna P Best
7 Facts to Support the Gold Price Jumping Higher and Faster Than You Ever Expected
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