Excellent Opportunity To Buy Gold

With gold prices having dropped from $1220 to $1080 in the last few weeks, it is time to examine what is driving gold prices down. However, before looking at recent charts of gold price movement, I want to point to an entry I made on July 5 on the manipulation of gold.

For anyone out there who still doubts that gold prices are being heavily suppressed by the US and the UK, I have included a dozen gold charts I have saved up during the last few months (nearly all of May and June). By looking at these charts of the 24-hour spot price of gold, the meaning of "four out of five trading days over a one-year period the COMEX closed lower than the London AM fix" becomes perfectly clear.

Time zone color code

To help make the manipulation of gold even more crystal clear, I have added a time zone color code.



Green: Period when the Hong Kong gold market is open, but before the open of the London gold market. This is the only time of the day where gold prices are NEVER attacked (ie: no sharp selloffs).

First Blue: Period after the London gold market opens, but before the Hong Kong market closes. Generally, nothing to dramatic happens here, however there are occasional sharp selloffs.

Yellow: Period when only London physical gold market and NY GLOBEX are open. While the London is a physical market (which makes more difficult to manipulate), London is deeply involved in the suppression of gold. It is central banks dump their gold onto the market (via leasing or direct sales).

First Orange: Period after COMEX gold trading begins, but before the London market closes. The orange and red is where gold rallies are killed and brutal selloffs occur. Consistently, gold will go into the orange/red in rally mode and come out the other side in a selloff. It is also where gold prices go off a cliff as a result of relentless selling in the NY paper gold markets. (Any rallies in this first orange time zone are due to the London physical gold market being open)

Red: Period when only the COMEX gold market (NYMEX) is open. There is one day (May 21) that gold actually managed to rally in the in the red. That day also saw an abnormal surge in open interest on the COMEX, which means someone was shorting the hell out of gold at the same time as the price was rising. (See *****Who sold 65 tons of COMEX gold in the last two days?*****)

Second Orange: Period after the COMEX closes until the Sydney gold market opens.

Second Blue: Period after Sydney gold market opens but before Hong Kong market opens. Again, most of the time nothing drastic happens here, except for the occasional sharp selloffs.


3 Things to look for in the graphs below:

1) In the charts below, gold prices repeatedly spike downwards due to intense selloffs. Notice that these downward spikes never, ever happen in the green time zone.

2) All the big sharp upwards spikes in gold prices only happen when the physical gold markets are open. The Sydney, Hong Kong, and London are the physical gold markets.

3) Notice how the orange/red time zones seem to suck the life out of gold prices, while the green/blue time zones seem to put gold into rally mode.

Now let us see if the pattern of gold price manipulation holds true during the last month.

Asian buying drives up gold prices

Nov 22: Gold breaks over $1150, jumping up to $1165 up during Asian trading.



Dec 01: Gold breaks over $1180, surging up to $1210 during Asian trading.


Gold attacked during US trading

Dec 04: Gold is viciously attacked during US trading, breaking under $1200 and falling $50.



Dec 08: Gold breaks under $1140 during US trading



Dec 09: Gold breaks under $1120 during US trading



Dec 17: Gold breaks under $1110 during US trading



Dec 21: Gold breaks under $1100 during US trading
Dec 22: Gold breaks under $1080 during US trading



Excellent opportunity to buy gold

Gold prices are being unnaturally suppressed during US trading. This means gold prices are artificially low, making it an excellent opportunity to buy gold.

For buying large quantities of physical gold, try http://www.pfgpreciousmetals.com/. They can even help you take delivery of Comex gold futures, if you are comfortable with the risk.

This entry was posted in Gold, Market_Skepticism, News_Developments. Bookmark the permalink.

16 Responses to Excellent Opportunity To Buy Gold

  1. Michal says:

    Eric,

    I made your color coding into a overlay on kitco's graphs. You can find it here:

    http://wejn.org/pms-overlay.html

    (it's also iphone friendly)

  2. Sebastian says:

    You can also buy precious metals from Liberty Silver. Among their products is a giant 1000 oz silver bullion from Comex for just under 17000 euros. They also offer 10 trillion dollar notes from Zimbabwe at a fair price (about €20). However it is no doubt that they have difficulties meeting demand, as all gold bars between 10 grams and 1 kilo are sold out. These weights are instead available at Tavex. Tavex has offices in some baltic and nordic countries.

  3. Robert4321 says:

    If you're interested in selling your gold, you have to check out Silver And Gold Exchange.com They have an A+ rating with the BBB and PAY MORE than any competitor in my research. They've also got amazing testimonials from numerous happy customers.
    http://SilverAndGoldExchange.com

  4. misso says:

    Please check out these nonsenses:
    1.
    Dollar May ADVANCE From Three-Month High as Home Sales QUICKEN!!!!!!!!
    http://www.bloomberg.com/apps/news?pid=20602081&sid;=anmcecuv1KT0
    2.
    Dollar DROPS From Almost Three-Month High on HOUSING DECLINE!!!!!!!!!!
    http://www.bloomberg.com/apps/news?pid=20602081&sid;=aFTPIN2EQIfw

    Both articles are from - TODAY!?

    It looks like even main-stream media are very confused today.
    Manipulations become extremely difficult now.

  5. Michal said...
    Eric,

    I made your color coding into a overlay on kitco's graphs. You can find it here:

    http://wejn.org/pms-overlay.html

    Cool. I will have to bookmark that page.

  6. Michal said...
    Eric,

    I made your color coding into a overlay on kitco's graphs. You can find it here:

    http://wejn.org/pms-overlay.html

    Cool. I will have to bookmark that page.

  7. Tony Bonn says:

    the changes in price need to be adjusted for dollar changes....after all gold is settled in dollars and in all cases gold price movements will have a price change component due to usd changes....unless that is factored out the change in gold prices does not have any meaningful interpretation

  8. Yannick says:

    Michal said...
    I made your color coding into a overlay on kitco's graphs. You can find it here:

    http://wejn.org/pms-overlay.html

    Michal, your page is realy great! I just bookmarked it. But the range are not exact. Mainly the blue ones.

  9. Since the first week of December I stepped aside and I have been waiting for gold to fall back to $950-980. There's no reason to change the tune now. Patience.

  10. Jimmy says:

    @Michal: Very super. It makes easier to see when the sell-off or buy-in continues on the graph - timezone.

    But is it also possible to overlay the volume on the graph? Then you know when it's real sell-off (high volume) or a storm in a glass water...

    Thank you

    Y

  11. lcpossum says:

    Robert4321,

    You are dreaming. KITCO pays more for offbrand 9999 gold than your outfit does for premium stuff. And for 24k stuff, it's KITCO's 32.29 per gram vs. 19.54 per gram from the "exchange." The "exchange" sounds like another Cash4Gold scam.

  12. mianne says:

    Have you forgotten what Roosevelt did in exactly similar circumstances , the financial crisis after 1929 ? It is still perfectly legal to confiscate private citizens' gold for the state's sake :
    " The Roosevelt Gold Confiscation Order Of April 3 1933. Franklin D Roosevelt, under Presidential Executive Order number 6102, confiscated all privately held Gold in the United States on April 5, 1933. »
    In fact when you buy gold in such a crisis, you will certainly have to donate it sooner or later , as an act of charity for the Nation .

  13. Numonic says:

    Except mianne the states have no sake/reason in owning gold since the currency is no longer gold. You have to understand that the reason gold was "confiscated" or outlawed to hold in more than a hand full quantity in 1933 was not because people were hoarding it but because the banks didn't have enough. I doubt any real hoarding ever went on nor was hoarding the cause of the law to outlaw more than a handful ownership of gold. First of all it wasn't gold that was outlawed to hold in more than a hand full quantity, it was the gold currency that was. Meaning it wasn't gold itself that was in shortage but the currency. This is why the govt. didn't want people to hold more than a handful because the govt. wanted the banks to have enough to meet demand from depositors who wished to make a cash(gold coins at the time) withdrawal.

    If there is going to be a confiscation this time, it's going to be of Federal Reserve Notes or today's dimes, nickels, quarters and pennies. Bank's with issue stricter withdrawal limits such as not being able to withdraw more than $100 in physical cash/week by each depositor per bank branch. There may even be a situation where the govt. will tell the banks to credit 2 times the value in your account if you make deposits with physical cash. That means if you have a $1 Federal Reserve Note and go to your bank and deposit it, the bank will credit your account with $2. The same way when you turned in a $20 one ounce gold coin the banks credited you by giving you $35 in bank notes when the "confiscation" in 1933 was taking place.

  14. Numonic says:

    But doing such an act would cause a self fulfilling run on the banks. People will begin hoarding physical cash knowing they'll get double for it. Unless banks loose the Federal Reserve Note or US Mint coin standard and no longer honor depositors demand for cash withdrawals like they did in 1933 when banks stopped honoring depositors demand for cash(gold coins at the time) withdrawals. But then again what would be the purpose of making these laws of depositors aren't able to make cash withdrawals, which is probably why we haven't seen such laws implemented. Instead they are just trying to solve the currency shortage by printing massively more currency(monetary base) and moving the currency around in the banking system as easy and fast as possible(effective and target fed funds rate). If these methods fail, banks will be forced to implement stricter cash withdrawal limits as they won't have enough cash to honor depositors demand for cash withdrawals. Would stricter withdrawal limits have any effect on the economy? probably not, I'm just saying that I see it happening. But then again, they are going though painstaking measures to prevent it from happening so it must mean if it happens something big will happen.

  15. Numonic says:

    On second thought, if the banks implemented an opposing rule towards cash withdrawals, meaning for every dollar withdrawn your account is debited $2(and come to think of it ATM's have already been doing this with their fees except not to that extreme extent) then this could counter the bank run caused by the crediting rule. Basically they could raise ATM fees (and even tack on the same fees to withdrawing from inside your bank) to equal the amount you are withdrawing to counter the bank run that would be caused by the law saying for every physical dollar deposited your account is credited a dollar. So people will have incentives to deposit the physical cash in the banks but no incentive to withdraw the physical cash from the banks.

    We may see this happen. For every physical dollar you withdraw, your account will be debited $2 and for every physical dollar you deposit your account will be credited $2. So all the cash that is out there will be going to banks and very little will be leaving.

    This could also effect the market as people would probably have different prices for payments with physical cash VS debit/credit cards.

    So that may be incentive to hoard physical cash now. The way I see it, physical cash is in high demand and low supply right now. This is what the banks are showing me.

    But who knows, the most that may happen is stricter withdrawal limits.

  16. Michal, the overlay is fantastic! As Jimmy said, is there anyway to overlay gold volume?
    Thanks

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