Inflation has clearly arrived, but the first wave looks exhausted and the “hawk talk” from “Fiat Fed” has the overleveraged hedge funds liquidating COMEX market positions with a loss of confidence.
Gold demand seems to be dropping. Swiss gold exports fell 37% in May. Sales to India fell 96% to 2 tons. Shipments to China fell 19% to 32.8 tons and exports to Hong Kong dropped to 3.8 tons.
Follow the money. There is far too much of it floating around. We note the huge rise in money supply although not in our opening piece that looks at the Fed its pronouncements along with debt, debt/GDP and the debasement of the currency.
We are at the maximum distance in gold where we want to see the price go for a daily cycle low. Everyone is now scared to go long, gold needs to hold the current price support and not allow the gold cartel to take it lower. Today is key.
The sell-off today in the gold and silver market was unadulterated, blatant price manipulation confined to just the CME paper gold trading arena using Comex paper gold contracts.
