Divergence - again.

The tug of war in the PM market is reflectred in the opinion of leading experts. There is Larry on the one hand telling us that his charts predict gold going to 1,400 and there is KINGWORLDNEWS that predicts a big rally coming in precious metals. The facts seem to favor KWN. China is expected to import 800 tons of gold this year and that is 10% of the gold supposedly in US hands. Venezuela and Germany want their gold back and we do not know if the US can deliver. Supposedly, gold has been lent to pretend that the paper gold at the COMEX is backed by real gold.

On the other hand, SOMEONE big is able to manipulate the gold price and the shares in gold miners are kept artificially low. This is important, because the major gold miners are running out of gold to mine and their production costs are increasing.

Gold is not the only commodity that is manipulated and subjected to hocus-pocus procedures. Lots of people are posturing:
1. The FED announced QE3, but has not started yet;
2. The ECB promised to buy some bonds, but is yet to do so;
3.  Spain is talking about going to the ECB for help, but it is yet to do so.