Gold’s Rumor Mill

Posted at 1:46 PM (CST) by & filed under General Editorial.

Jim,

Two rumors are starting to move around through the gold chat rooms. I wanted to give you a heads up so you can be prepared to quickly inform the community about them as you see fit. Both rumors have potential to shock weak gold holders into selling.

1. Volcker replaces Timmy. This could lead to a kneejerk gold selloff (based on the past) and equity volatility in both directions.

2. A gold exchange traders fund may have been holding bogus gold bars which have been fabricated by China. This piggybacks some phony Chinese gold coins that have shown up through an article in coin world. This would supposedly cause a selloff in GLD, therein frightening the community.

CIGA Ken

Dear Ken,

1. Volcker’s history of jamming rates could only occur even then with the full support of the sitting administration. To believe anything like that could happen is madness. Replacing the Secretary of the Treasury by this Administration at this time is only something a chat group could come up with.

2. There is reality to fake gold. China is a whipping boy. We have more criminals in the West and need not look to Asia for crime. Maybe start looking in Washington and then move outwards.

If an ETF is in paper gold that fails or has purchased fake gold that is a problem for the holders of that fund and is bullish for gold. Buyer would stop buying paper gold except on the COMEX where they would take delivery out of the COMEX warehouse and stop those criminals from manipulating the gold market. I am always amazed at how silly people can be when it refers to gold.

The internet is a tool of manipulation across the board. Those that believe either of the above chat site madness as negative to gold are raving idiots.

Volcker would be bullish for gold as the Father of the Federal Reserve Gold Certificate Ratio, modernized and revitalized.

What is happening you ask? The Chairman of the Fed is speaking so gold should be lower and the US dollar should be higher. This is a market applause for his total fabrication of fact. Traders knowing this will jump on these directions, having succeeded in the past .

Listen to the Senators question Bernanke. People are getting red in the face mad at this ongoing monetary madness.

Consequences will not be voided .

Hyperinflation is the end of all this madness, lies and outright theft.

Respectfully yours,
Jim