Yesterday morning, Božo and I were discussing what the gold price is going to do in the immediate future. While we both agreed that it’s going to drop, our rationales were different. He said that the American stock market crash is imminent, and when that happens, lots of large players are going to pull reserves out of gold and silver ETFs in order to cover their margin calls. While I don’t dispute that, I sent him a very visual analysis of my thinking:

Basically, since June we had two events where someone dumped billions of dollars in gold futures and other paper assets onto the market in the deep black of the night, and intentionally triggered “stop loss” scripts across the market, creating an avalanche of selling which crushed the price, and since the price of paper and metal are united, this “someone” then bought billions of dollars worth of either very physical gold, or swapped short for long positions. Since the amounts are enormous, only huge banks are able to perform such blatant market manipulations for their clients, of course earning a percentage in the process.

What my annotated graph says is basically “there were two such large gold purchases in the recent past, and it looks like there’s going to be another imminently, probably during the weekend, like the last time”. Sure enough, within a few hours gold started dropping like a rock, and here’s what the graph looks now:

And then I hear the “experts” talking about how this or that “indicator” caused the gold to drop, like, people think the economy is better than expected or the inflation is not as bad as projected, and I think, you people are educated way beyond your intelligence, because the actual free market influences are obviously suppressed to the point where they don’t even register. It’s a game played by the big market manipulators and computer software doing the actual trading, and the only question is when the system will go beyond limits of its endurance and collapse entirely.

The thing that’s actually going on is that very big players apparently caught up to where I was two years ago and are now unwinding their other assets and going hugely into gold. Basically, the entire market is a pump-and-dump scam, and those who pumped and dumped are moving their profit into metal, because that’s the only thing that can survive the kind of crash that I see ahead.