Central Bank Gold-Grab Intensifies Further, Part II

via Bullion Bulls Canada

In Part I, readers had revealed to them the latest chapter in Western bankers’ newfound love-affair with gold. Indeed, as central banks around the world swap their own paper for gold at the fastest pace in history, it’s quite clear which monetary asset these charlatans really believe is a “barbarous relic.” After bad-mouthing gold for decades (and continuing to get their media trolls to attempt to frighten people away from gold today), we are currently witnessing history’s greatest “bash and buy”.

Both European banking authorities and those in the U.S. are now proposing reclassifying gold as a “Tier 1” financial asset. As was previously noted, this would have the effect of instantly making gold twice as attractive and twice as valuable to all of these large, Western financial institutions. What makes these developments especially interesting at the present time is that they are occurring at the end of another long period of sideways trading in the gold and silver markets.

Throughout this 10+ year bull market, these temporary periods of sideways price-action where the bankers are able to trap gold and silver within trading ranges have preceded the largest/longest rallies over the past decade – where gold and silver prices smash through all previous (nominal) highs. While the bankers are typically the last to notice and understand the consequences of their relentless manipulation, if you hit a dog over the nose with a rolled-up newspaper enough times, eventually the dog will get the message.

Thus the bankers themselves know their “fun” has nearly come an end (at least for an extended period of time), and they will have to once again sound the retreat on gold and silver prices. Being greedy (above all else), these banksters manage to be quite pragmatic: when they know that gold and silver are set to blast-off once again, many of them like to come along for the ride.

So, with a long period of sideways trading in the precious metals sector nearly at an end; with the bankers themselves in the process of reclassifying gold to make it much more valuable (for themselves); and with the bankers having a known tendency to switch sides and jump on the bandwagon (for short stretches); now is the time for all savvy precious metals investors to empty-out their bank accounts and sink every last dollar into silver and gold. Right? Not so fast.

There is, in fact, only one thing that the banksters like to do more than make money, and that’s to be able to make money while simultaneously whipsawing other investors (and hopefully totally destroying them). As a result, the banksters have come up with a particularly fun game that they like to play called Bait the Chumps.

It’s actually a really easy game to play when you are given complete and utter freedom by both government and “regulators” to rig/manipulate markets. First you target a sector with especially bullish long-term fundamentals – meaning that precious metals is the banksters’ favorite playground for this game.

Then, at a time when investors are already sensing that a rally is imminent you send out some really obvious “bullish signals”. Then you simply wait for the mice to take the cheese. Once the rodents have all latched onto their fromage, you spring your ambush. All the greedy, new “longs” who went out and leveraged themselves to the hilt on margin because they “knew” the sector was about to take off are instantly obliterated.

The downward momentum this creates then makes it possible to blow even moderately leveraged traders out of the water, and so the dominoes fall. With the whole market expecting a sector to “zig”, the bankers simply rig a “zag”. This is a classic win/win for these Vampires: not only do they get the tactile pleasure of destroying other investors, but the downward price action generated in the process then allows the bankers to do their own buying even cheaper.

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