Lemetropole cafe snippet…Cartel firepower prevented a $150 gain

Yesterday’s gold decline of $2.40 came with another significant in OI of 6,232. This brings the 3 day total increase in OI to 28,703, with gold increasing a cumulative $13.30. The cartel therefore needed twice as many shorts (over 2K per $1 of price gain vs. the usual 1K per $1) to quell this rally. In other words it took 90 TONS of paper gold to keep gold from increasing more than 1%. This is classic cartel rope-a-dope, wearing down the fresh spec longs and getting them to eventually flip. Anybody who claims gold isn’t manipulated is either a liar or an ignoramus. Remove those 90 tons of paper gold shorts and gold would be screaming higher. Can you imagine what silver would be doing had gold been up $150 in 3 days? To look at it another way the cartel in 3 days just added 5 1/2 times the entire open interest of lumber futures- 28,703 vs. 5,234. Render unto CTRL-P the things which are CTRL-P’rs.

Next week is April op. ex and FND so look for gold to be on further lockdown. Optimistically this week’s enormous cartel effort to keep gold under $1250 could also be for the purpose of preventing it from taking out those $1300 calls. They may be inclined to retreat after FND is over. One thing for certain; they showed beyond a doubt they have unlimited resources to create infinite derivatives if the issue is of vital importance. Only physical shortages will end this multi-decade scam.

James Mc