1. Remember when gold was only allowed to go up when the Euro went up? How is it that it now only goes up when the Euro goes down?

2. Why is it that whenever base metals get slammed due to "economic worries", silver gets slammed? However, whenever the base metals soar (and gold gets slammed) due to "economic improvement", silver all of a sudden is no longer an industrial metal?

3. Remember when gold was forced to move up and down with the Dow based on "inflation expectations"? How is it that this relationship suddenly changed, so that gold can only go up when the Dow falls (and even then at a capped rate)?

4. Remember when gold was traded tick for tick with oil? Of course, that only occurred when oil goes down. That relationship seems to magically disappear when oil goes up, as it is doing now.

AND HERE’S THE BIG ONE:

5. Remember last month when the talk was that COMEX gold and silver inventories would be taken up by massive buying of the December contracts? Amazing how roughly 48% of the gold inventory and 47% of the silver inventory were spoken for (http://meltdown2011.com/2008/12/30/v... ), yet the inventories of both are ESSENTIALLY UNCHANGED (http://www.cmegroup.com/trading/ener... )!

Here is a table showing where NYMEX gold and silver warehouse stocks were at the time the December futures contracts expired, and where the inventories are now:

There was a lot of hype about this, and the buyers certainly came through by claiming 48.1% of the gold Registered Inventory and 46.5% of the silver Registered inventory. But magically, just like Citigroup’s "profitability", inventories didn’t change at all! I wonder if anyone can come up with an explanation of why 2 – 1 = 2!

Anyhow, we all know the answer to these questions.

Uh oh, gold just broke $900, time for yet another horrific plunge, only the fifth such plunge since yesterday morning.

Andy