Oh my, Oh my,..

Bollinger Bands on Gold Daily are now tighter than they’ve been in over a year and they’re starting to pinch in aggressively,

Buckle up as there’s a monster move rattling down the pipe,

Richard Guthrie

Oh it's coming alright,..

Bollinger Bands on Silver 8 hour now as tight as they’ve been for 2.5 months!

Rich (Live from 'The Bridge of the Silver Rocket Ship')

Richard Jones (another Englishman)

GOLD: bolly bands at 6 year lows ('tights')

RG:

In step with the rest, the 8 hour Gold/Silver ratio is setting up for a big move,

Bollingers now as tight as a welders rivet! My bet is that this is going to run in Hi-Ho’s favour,

Richard Guthrie

As tight as a welders rivet!..

Richard Guthrie

The trading in gold and silver of late has been consistent and unlike other markets. Both precious metals pop suddenly and then are hit just as suddenly. Each time gold approaches $1550, it is hit with force, but only to a certain degree, as the price keeps coming back. It is as if the physical buyers are waiting in the weeds for The Gold Cartel to make their move, and then go in and buy once the cabal forces make their move. Funny, the media, mainstream gold world, and CNBC Muppets might be clueless about the real gold/silver story, but the physical buyers are not. Makes sense … The Gold Cartel (as per Ranting Andy and GATA) has made their assault moves a zillion times in a row at predictable price levels and times.

*Second, it surprises none of us in the GATA camp why gold is trading like it is. There is an FOMC meeting today and tomorrow … and QE 2 ends the last day of this month. The US economic numbers stink after all the priming which has occurred the past couple of years. The Fed has to do more, but does not want be seen as ignoring the growing inflation numbers. Thus, while gold screams it wants to go higher, The Gold Cartel is sitting on the price because a screaming higher gold price at the moment will limit (according to their own criteria) what the Fed will be able to do in the near term … the ole Between A Rock And A Hard Place.

*Point number three is a very important one. The focus of my GATA presentations this past year, and in years past, has been about why GATA got it so right about the gold/silver markets so long ago and has been so correct on what was going to happen to the prices of the precious metals. In essence, the answer is the mainstream gold/investment world have been working with the wrong supply/demand numbers and failed to take into account what the gold price suppression scheme was all about and has wrought. How many times over the last decade have you heard the GATA camp say that the central banks have nowhere near the gold they say they have (supposedly close to 30,000 tonnes)? That the real number is closer to 10,000 tonnes to 15,000 tonnes … the difference being the gold used over the last 15 years+ as part of the gold price suppression scheme and to meet TRUE gold demand, which was much larger than reported. We have stated over and over again that much of the central bank gold has been lent out. Some of this will be covered again in more detail at Gold Rush 2011 in London in early August.

Well, what do you know? Look what was revealed by ONE of those central banks that GATA has been talking about…

Michael Krieger

Subject: Belgium has lent it's gold out

-->How about these comment on Belgium’s gold. The Central Banks all lie about the gold they have. I bet most Western nations have already sold most of theirs without ever telling their people, I mean slaves. Hello GLOBAL PONZI!

Belgian central bank Vice Governor Francoise Masai reportedly told shareholders that about 41% of the central bank’s 216 metric tons of gold was on loan at the end of last year, and that the central bank earned a 0.3% return on its loans of physical gold to commercial banks last year. There are two points to note about this. The first is the puny annualised return earned on the gold leasing market. The second is the significant percentage of the central bank’s gold lent out. This is a reminder that the paper gold market is significantly larger than the physical market. Just like a run on a bank in a fractional banking system, GREED & fear suspects it will be very hard to settle all the paper claims to gold physically in a real scramble for the metal.

This is why in a parabolic spike physical gold is likely to trade at a significant premium to paper claims. On this point GREED & fear should make it clear that the 25% of the global portfolio for a US dollar-denominated pension fund allocated to gold bullion is in physical gold…