And an even wilder ride to come.

John Embry has an article (a post) in kingworldnews. KWN does not permit the reprinting of their posts, so I will summarize the situation as I see it.

There is a war between the shorts in gold (bouillon banks, the so-called commercials) and swap dealers, and others.

Currently, there are really two markets in gold: 1. the physical market in actual metal and 2. a paper market of options to buy and sell. The last reliable report pegged the paper market as ten times the size of the physical market, but I do not know if this ratio still holds.

Large and savvy traders from everywhere had large orders to fill at 1,550 and around earlier in the year, so every time the gold fixing approached that level, orders were executed to fill. Gold supply, however, gets tighter and tighter.

We saw a mini rally in gold as shorts were covering around 1,700, which brought gold prices to 1,760-1,790. It is at this level that the PM wars continue.

What propels this war? The EU needs E2T to rescue its Southern members and the FED will print $1.2T to cover the deficit and maybe another $1T to "stimulate" the economy. The FED tries to cover up its sins by "sequestering" the newly digitized money, which makes it ineffective even by Keynesian standards, which would require the money to get into the economy. Thus, the FED is simply buying time, hoping the economy will eventually recover and take credit for the recovery.

The enormous amount of money created is still there though. All that money cheapens the currencies of the participants AND THAT IS WHY GOLD PRICES HAVE RISEN. This rise has been relatively slow because of the machinations of the anti-gold faction. We are coming to a time when the manipulators will fail to control the market and then...