Louis,
After reading your latest article titled, “Shutdowns, Smackdowns, and Touchdowns,” I’d like to reference your following paragraphs below:
The Smackdowns
Enough philosophy. An interesting aspect of the current shutdown shenanigans are the gold smackdowns we've seen this year, including very recently during the budget debates. The last time the US government was about to smash through its debt ceiling, gold shot up $300 in a month, to reach its nominal peak of over $1,900 an ounce in September of 2011. This time, gold is selling off.
Why? What's different?
Based on fundamentals, the situation for gold and silver is more bullish than ever; major governments around the world continue debasing their currencies in panicked attempts to revive their faltering economies, and the commodity supercycle has years to run.
This prompts many gold enthusiasts to embrace theories of market manipulation. There certainly have been days this year when some entities dumped large amounts of gold onto the market with clear disregard for getting a good selling price. It's hard to see that as normal market behavior, but it does not prove that governments are suppressing the price of gold; it's just as plausible that major players with short positions acted to profit from the ensuing extreme fluctuations.
Louis, is this not MANIPULATION, whether the government is directly involved or not?
If they are not directly involved, then the govt. (CFTC/SEC) is complicit in allowing the manipulation to occur.
Aren’t securities laws created to prevent manipulation of markets?
Silverbull50
