“We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.  Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K.”

Sir Eddie George, Governor Bank of England to Nicholas J. Morrell, chief executive of Lonmin Plc.

Silver also took back the 17 handle.Gold ran up to almost the exact resistance of the bear flag. No coincidence there.

Follow through is everything.

Look at the Comex, there are a large number gold contracts being stopped, not so much silver.

But in the warehouses, gold is relatively quiet, while silver continues movements in size.

I think the gold paper market in the US is fake.  There is almost no doubt in my mind.  It is no more real than a game like Liar's poker. 

During the day I mentioned to Bill Murphy that the physical markets will some day deliver a size twelve shoe with impressive velocity into the posterior of the US financialized markets.

And at that point, the smarmy hands of Wall Street will once again come slithering towards our pockets, wearing the cuff links of the Federal Reserve, expecting a bailout to ‘save the system.'

God have mercy, if we allow that to happen again.

Have a pleasant evening.