As the market players begin to work this out in their mind there is only one thing left to do. Try and exit and get out in the Globex market. So the selling begins again. The market hits below $1,500 and then $1,490 get broken. The market sells as much as it can up until the very last minute of trade at 5PM New York time. Even then it’s not over. For some reason the volume and the price keeps moving. Was there special consideration going on for those connected who wanted out? I don't know. But at 5:07 PM Eastern standard time the market closes at 352,248 contracts and a price of $1,476.10 down a whopping 5.67%, or $88.80.
And this should not surprise you -
The banks and brokers are open all weekend and as long as it takes to go through all the accounts and issue all the MARGIN calls.
If they get the margin calls out by Saturday, the customers have 24 hours to get more money to their brokers. If the money is not received by Sunday night or Monday morning, the positions will have to be liquidated, just when the market is at its lowest liquidity and the longs have had all weekend to think about it and the media has had time to tell everyone that the bull market in gold is over.
I hope you understand the picture of how the control boys forced a major sell off. I speculate the panic over low gold inventory had someone hatch a plan to save their accounts and a lot that was at stake for them.
The plot began with leaked information with explosive potential changes in USA policy, and continued with published information that Europe/Cyprus would have to sell 400 million Euro's of physical gold. Finally, once the sell-off began the physical gold market platform in London locks up and no one has buy or sell access in the physical spot market.
Did the control boys lock down the physical market platform or was it pure coincidence? Either way they have total plausible deniability. HOW?
The computer system went down. It couldn’t handle the traffic and it shut down or a glitch happened in the server. It can be any one of many reasons.
This exact same thing happened during the last take down of gold in late December 2011.
VOILA. The perfect excuse and the perfect scenario.
The physical markets couldn’t buy at those low prices. Let me repeat that. The physical markets couldn’t buy. They could only sell futures to hedge their physical gold positions.
Of course this will all be reported on the news and in the financials right?
None of it will be reported as none of it was reported on Dec. 29, 2011 when the control boys did the same thing and locked out the computer and left the physical market holding the bag. Not one word hit the papers.
Most people are not even aware that the physical market is run by computers. They have never considered or thought about how the physical market works and executes. Guess what folks? It works the same way as futures via computers and programs.
How do you think it works? Did you think that people show up with all their gold at an auction house and buying and bidding goes on with a mediator who can speak two hundred words a minute and gold is auctioned off like rugs or art?
No it runs off a computer system.
How do I know all of this happened on Friday?