Post Swiss Gold Referendum and Bear Raid, Here Comes The Business Press Manufacturing Reality – Eric Dubin

TND Market Report:  Eric Dubin |

It’s no surprise to see the Swiss “no” vote serve as a prop for a bear raid on thinly traded Sunday/Monday paper gold and silver trading.  But beware, any attempt to judge market reaction at this stage of the game is risky.  Between the painting of the tape by the cartel and the admittedly present but certainly less impactful and less numerous longs exiting a busted trade in the wake of the “no” vote (because the smart money was already “out” of the long trade), it would be wise to judge market reaction over the next 48 hours, not thinly traded Sunday/Monday trading.

But don’t tell that to Bloomberg.  Relaying mainstream analyst chatter typical in the wake of the “no” vote, Bloomberg reports:

“Gold had received some support in the last couple of weeks” before the vote, Georgette Boele, an analyst at ABN Amro Bank NV in Amsterdam, said by phone. “We’ll get more pressure on gold. The overall outlook is not looking great.”

Bullshit.

I’m sorry, but over the last couple of weeks it was increasingly clear that the Swiss establishment’s dump trucks of propaganda and the instilling of the fear of loss of economic power was having a major impact, and that the odds of the referendum passing were crashing.  Ignoring increasing odds of referendum failure and quite to the contrary of Georgette Boele’s assessment, gold and silver kept on rising because physical market demand was strong enough that it over-powered the cartel’s ongoing price management effort.  Boele has the last 2 weeks incorrect, and odds are the next two weeks as well.

Negative GOFO rates don’t lie, and that’s why the LBMA is getting rid of public reporting of GOFO next year.  Negative GOFO rates are at historic levels.  They are an objective indication of reality the banking cartel would like to obfuscate.  Georgette Boele would be on safe ground to suggest that gold and silver found at least a temporary bottom in early November, partly driven by optimism about the Swiss gold referendum.  But to say that the referendum was supporting prices in the last two weeks flat-out contradicts the huge negative downturn in polling data suggesting no later than mid November that the vote would go down in flames.  Correlation and chronology handled so cavalierly by analysts is certainly nothing new, but it doesn’t help when news outlets like Bloomberg are editorially predisposed to find and push square pegs through round holes.

Let’s see what gold and silver do over the next two days.  Odds are, we’ll see a bounce back from this facilitated reaction during current, thinly traded Sunday/Monday hours.

“In a time of universal deceit – telling the truth is a revolutionary act.” - George Orwell