Midas tonight…

The Cartel tried hard again today. The bulls certainly didn’t blink. It was superb action because the break-out level of $960 was re-tested and it held…AND gold went higher in the after market. The Cartel didn’t blink but they are certainly rubbing their eyes tonight. The chance of a commercial signal failure just ratcheted up one more notch. The Cartel will not panic yet but the same can not be said about their less well capitalized groupies who are in short positions that are several dollars under water. Don’t break out the champagne yet, but put a couple of bottles in the fridge just in case!
Cheers
Adrian...

Bill, In the Midas of May 26 I wrote

QUOTE
On Friday the US Stock market fell, the Bond Market fell, the dollar fell and gold went up. This has happened on only 18 days in the last 20 years. That is extremely ominous for the Cartel. They depend on a large paper market to absorb money flows coming out of any other paper market.
END

We almost made it 19 times today…all three big paper markets fell but they managed to make gold close down $3.3 however, the money exiting these big three paper markets found its way into other real things such as copper, oil and natural gas. This is an early indication of diversification out of paper…the sign of the onset of severe currency debasement. The nightmare for the Cartel is that once the three big paper markets are shunned by investors they will shun paper substitutes of real things, which means shunning paper substitutes for gold. We are already seeing tell-tale signs such as Greenlight capital having switched from GLD to bullion, GLD holdings have reduced or remained constant recently with a rising gold price, the mint has suspended production of eagles again….even the ECB won’t part with their gold! If gold fever for the real stuff becomes an epidemic the cartel’s price suppression scheme will be toast. And they sure as hell have it coming to them! No wonder Timmy Geithner is stressed out! Who wants to be Treasury Secretary when the Empire files for bankruptcy on your watch?
Cheers
Adrian

…The Gold Cartel’s ploy to get gold back down below $960 for any length of time failed. Should we hold $960 tomorrow and rally close above $970, the cabal forces will be sucking wind.

The reasons for gold and silver to blow sky high remain in place.

Sinclair:

…“( DJ ) 08/05 03:04PM *DJ SEC Charges Options Traders In First Naked Short Selling Case”

…Dubai Gold Trade +12% In 1H 2009 At $14.69 Billion – DMCC

... About half of U.S. mortgages seen underwater by 2011
Wed Aug 5, 2009 5:12pm EDT
By Al Yoon

NEW YORK (Reuters) – The percentage of U.S. homeowners who owe more than their house is worth will nearly double to 48 percent in 2011 from 26 percent at the end of March, portending another blow to the housing market, Deutsche Bank said on Wednesday.

…The Dollar still looks like it is headed down to near 76.

… SEC Memo says Guaranty Bank to be Seized, not Sold
By Teri Buhl