“Every time gold runs hard they pull out the gold-phobic Bundesbank to do a blitzkrieg on the price. Any effort by Germany to sell gold will be offset by China buying Germany’s gold. If that financial vaudeville act was not a cry for help from the shorts at gold $565, I never heard one.
When will the foolish holes in the wall gang of fund managers wake up to the fact that the most bullish thing that happened for gold from 1970 to 1980 was Central Bank selling?
Central Bank gold will never see the marketplace but will be traded between the banks themselves. Should any central bank demand sales into the market, all they would do is facilitate huge buying of major lots at singular prices free of commission. This attracts big money and is therefore bullish. Had gold held $565 today, then I would not have been at all surprised to see it take out $600 next week.
So this is it. The battle of the gold titans is on. This time the naked shorts are the gold fund traders.”
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