Gold: is the paradigm changing?

Andrew Maguire gave an interesting interview on KWN. In past weeks Andrew claimed that the gold paradigm(as to how the gold price could be manipulated) was going to change. Now he reports that the change has actually taken place. Here are the basic points:

1. how the 'wash and rinse' cycle used to work.

The bouillon banks would be underwritten by the FED to keep the price of gold down. The banks would help drive up the price of gold options. Sophisticated traders would set a stop loss (which would be known to the bouillon banks). This is the wash part. Since, on the COMEX the paper contracts outnumber the gold actually sold 92 to 1, the gold price would be set by  the paper contracts. At some point in the cycle, the bouillon banks would dump a whole bunch of paper sales (usually at the least busy times), forcing the gold price down. Traders would have to sell their contacts at a loss. This was the rinse.

2. The last time this was done was when the gold price was taken down from 1,300 to 1,200.

3. This cycle was buttressed by the FED, which trumpeted a coming increase in interest rates. This, in turn would raise the rate of the Dollar and help suppress the gold price.

4. The wash and rinse cycle was then put into operation to get gold down, before the FED announced that it is not raising interest rates.

5. The attempt to force gold down was only partly successful.

6. Big money is going into gold, but on the metal side. These buyers do not have a stop loss so they will not be forced to sell if the FED sponsors another drop.

7. The short interest in silver and gold is at the highest ever. A move above 1,300 will force short covering,  which will move gold past 1,400.

8. My research of the gold price shows the Friday close at 1,290, while some quote sites show a price of 1,302.

Next week could be interesting.