The Disconnection of Gold ETFs

Support near the $830 level at the fake gold market called the Comex was absolutely annihilated in recent sessions. That pretty much did it for the speculative alongside in this market which is now abandoning it in wide exodus. Silver fared even less well falling as low as $9.25 before a mild bounce happened. The HUI and the XAU disappeared from vision trading down to levels last seen in the year 2005. All this is against a background of purported gold holdings in GLD under the 800 ton level.

How can the gold ETF supposedly add over 150 tons of gold to its claimed holdings in a period of only a single month but the price at the Comex drops from $930-$830 during that same time frame? Where are the ETF providers getting their gold from? Apparently it's not coming from Comex. Do they actually own any of it? This goes back to the back points I've made in the past. The more a person studies what is currently going on in the gold market, the more the glaring discrepancies are noticed. Huge investment demand from scared investors, huge premiums for gold coins, reported shortages and major coin dealers who are completely wiped out of gold coins in stock, but none of these seem to stop Comex from falling even further, against all logic. As more and more index funds drop commodities of all kinds to meet redemption levels, the stupid selling is causing severe contractions in more than just the gold market. It is rendering severe disconnects in an array of other commodity markets. Fundamentals are calling for buys from the lies in so many in these markets, but would-be buyers who dare to put their foot in to test the water are almost immediately massacred by those running these firm as they unload even more positions to build cash to send back to help nearly poor clients.

Fundamentally the pass of $830 was bearish as that support level had been pulling in new buying for a while now. The correction down to $790 was met with fine resistance, whether from short covering or new buying is uncertain at this time, but a significant balance was mildly productive. It needs to remain above that level or it will be at $740 in a short amount of time.

One could not be blamed for wondering if the banks who received an infusion of taxpayer money courtesy of the federal government are going to spend that money buying up ownership in many of these Canadian gold mining companies. They seem to be about the only ones holding any cash now that can be used to buy these up on laughably undervalued companies.