June 23, 2013 | By Tekoa Da Silva
Following continued selling pressure and another major downward thrust in the price of gold last week, recent interview guest Gary Savage, shared some powerful commentary in a note to subscribers over the weekend.
Speaking on Thursday’s smash of the gold price, Gary noted that;
“About a month ago I vaguely remember something coming across my email…about a huge position in June GDX & GLD put options. Now I see why gold was held below $1400, and what was driving the completely irrational $75 drop in the pre-market Thursday morning. Wall Street was making sure their put options paid off handsomely before the June [21st] expiration.
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In my opinion the precious metals sector was originally manipulated to move physical metal from west to east. However, Wall Street saw an opportunity to capitalize on that original manipulation and make some fast money over the last several months by exacerbating the short side manipulation.
The question now is will the manipulation continue indefinitely? And I think the answer is no. For the simple reason that at some point the upside potential becomes enormous and Wall Street will make a lot more money by letting the secular trend resume, [rather] than…trying to force the market [down further].
I think Wall Street has generated about as much profit as they are going to get on the short side, and are…ready to flip to the long side. Once we get the manipulators off our back and Wall Street in our corner, I expect we will see 100% or [larger] gains out of the miners and silver in the first three or four months.”
Special thanks to Gary Savage for his comments here. To learn more about Gary’s daily gold commentary visit: SmartMoneyTracker.
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Tekoa Da Silva
Bull Market Thinking