The same stuff we see today went on in the great gold bull market of the 1970s. Then I was a kid in my mid 30s with more guts than is usually good for ones financial health.
I watched the gold dealer’s brokers, then of Phillips Brothers and J. Aron, running the living hell out of the gold gang with the locals jumping on the bandwagon the moment the dealers showed their selling interest. I also saw the same quietly covering by the brokers for the dealers taking back their sells after they had bullied the market lower, exactly like the Goldmans and their pals do today.
The difference between today and then was there is no one with cajones that are big and well financed enough to say enough and take them on for mega profits. I learned from the dealers and used UBS and DB to do my largest buying.
I fought them at key technical points only. The second time gold tried to come up through the $400 level I was long 19,000 contracts. I had run the locals every evening for two weeks making their shorting a losing proposition.
Someone bought information from Bache and Company, my clearing agent, to find out what cash I had. Down went gold through $400 with the gold dealers selling.
I had to preserve my cash so I had to dump 9000 contracts. This dump was not by a margin call as I never permitted that to occur. I called myself well before the close.
All of sudden in comes DB at $380 buying with both hands and feet and it was not me. I went out using my own floor traders to openly buy back 9000 at the market price and added an additional 5000 in Chicago.
Gold in that market never went under $400 again, but rather made it’s great run to $887.50 with the formerly short gold dealers leading the charge.
Believe me, you can run the gold banks if you have the courage, knowledge, money and guts to take them on. You could flip their algorithms against them, therein hanging them with their own rope.
What we need is Maximus, the financial gladiator, and gold would break $3000 on the upside 90 days from the start of the reverse strategy. The gold banks are far from omnipotent if you know how to play their game on them.
Light the flame inherent in this market and the gold market will bullishly run over central banks, the IMF and anyone that opposes it. You will shift the gold banks to the long side as I did to get to over valuation.
If you are out there and want to turn a billion into a few trillion do I have a golden idea for you. It is all timing and intimidation.
Respectfully,
Jim
And..........................................
London Trader – Fed’s Global War Against Gold Escalating
April 5, 2012, at 5:55 pm
by Eric King in the category King World News | Print This Post Print This Post | Email This Post Email This Post
Dear CIGAs,
With many global investors still rattled by the price action of gold and silver, today King World News interviewed the “London Trader” to get his take on these markets. Here is what the source had to say: “Gold was trashed on Monday, while the Fed minutes essentially said nothing. When a central bank coordinates that kind of attack, it’s war, of course it’s war. This type of action is coordinated by Bernanke and the Fed and executed by the bullion banks. It’s actually laughable if anyone thinks that was a legitimate selloff, on what was, in reality, no news.”
The London Trader continues:
“No legitimate market participants were really selling. Sure there were some stops that were taken out, but it was the bullion banks that came in with their selling and this was what suddenly created the air pockets.
There is massive sovereign physical buying going on right now. Interestingly, the sovereign buying is being swamped by paper selling. Sovereign buyers are aggressively buying tonnage every day at these levels. You have to remember their goal is to pick up physical and get rid of dollars. Nothing has changed.
Interestingly, the Asian buyers have figured out the algorithms, like breaking an enemy’s code in war, and they are using the algorithmic trading to get the best prices each day for physical gold at these levels. The trading is just taking place at lower levels because these bullion banks and the Fed, which manage the price of gold, get overzealous in their price fixing.
But there will be a huge price to pay for their activity….
Click here to read the full interview on KingWorldNews.com…
http://www.jsmineset.com/
I love it. Folks have figured out how to use the Algos against themselves, sweeeeeeeeeeeeet
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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