The Fed Is Backed Into a Corner: Gold & Silver Have Reached The Most Extreme Oversold Levels In World History!

Gold & Silver Have Reached The Most Extreme Oversold Levels In World History!

What does this mean? I can think of two explanations:

1: Conventional technical analysis says that the rubber band has been stretched too far to the downside and is due to reverse direction and snap back violently to the upside. According to the article, this means that by comparison to the previous (now broken) record following the Hunt Brothers crash in 1982, silver should now snap back to a price of $65 within 8 months.

I don't buy this explanation. I generally discount any predictions based upon technical analysis in the gold & silver markets, because technical analysis only works if you have free markets. Anybody who has followed these "markets" lately should know by now that we no longer have "free markets", we only have manipulations. The "price" of paper gold & silver is manipulated downward on a daily basis by the Feds.

2: If gold & silver have not been driven to these extreme lows by the "free market", then by whom? By the Fed's manipulations of course. What does this tell us about the Feds motives? It tells us that the Feds have resorted to extreme measures to try to drive the price of gold & silver down. Why? Because the are scared out of their minds of what is coming next and are desperately trying to hold off the inevitable as long as possible. They are scared shitless and are resorting to extremely desperate actions to continue to suppress the price of gold & silver.

Why are they so desperate? Because they know that the game is coming to an end. They know that the Comex and LBMA are almost out of physical gold. They know that "Force Majeure" or default lies directly ahead. They are driving down the "paper price" as fast as they can, because when Comex defaults, the solution is that you will be cash settled at the artificially low "paper price". You will not get anything close to the price of physical gold or silver, which will be going through the roof, when this happens.

Conclusion: The extreme oversold lows in gold & silver is not the result of market forces. Instead, it is the result of the Fed's extreme desperation to suppress the paper price of gold & silver in preparation for a Comex and/or LBMA default.

If you can't hold it in your hand, you don't own it.

See charts and article at: [link to kingworldnews.com]

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Last Edited by Sky Pilot on 01/02/2014 04:21 AM