Friday’s morning action in gold has been at once both terrific and frothy, wonderful and scary, and redemptive and soothing, says precious metals expert Michael Ballanger.
My hedges are all getting blown to smithereens with the miniscule damage to my net worth being vastly outdone by the gargantuan damage to my ego as the power of the physical market is beating on the Commercials like rented mules and rag-dolling gold bears like common farm animals. The CNBC crowd are all taking complete ownership of the “gold trade” and everyone here in Toronto is scrambling for last-minute hotel rooms for PDAC inclusion. Notwithstanding the fact that Zerohedge posted the chart seen below under the headline, “Futures Flat Ahead Of Payrolls As Gold Continues Surge After Entering Bull Market,” and despite the fact that Blackrock suspended issuance of new shares of its gold ETF because “it holds physical gold as an asset,” the world is alive with sound of music of a different tone and pitch—the melody we are hearing from the Crimex floor is actually the sound of a possible short squeeze in the making, and Blackrock knows damn well that there is no physical gold in any size ANYWHERE to be had and hence the halt in new Blackrock Gold ETF paper.
. . .Everyone and their brother have my inbox inundated with emails with one thousand reasons why the gold market is going straight, without interruption, without a rest, with no need for any sort of breather or pause, to $10,000 an ounce and how the big bad banksters are going to cause a system reset where ATMs don’t work and mobs invade our homes. Seriously folks, wasn’t it only six weeks ago that the Sovereign Wealth Funds were dumping the gold and silver miners as if they …read more