TRICK OR TREAT: Fed Smashes Gold & Silver While 2,000 Gold Eagles Were Sold
In a 24 hour period, silver traded more than 5% from highs to lows. Nothing like a dose of volatility to get investors ready for the Halloween festivities.
While the traders were focused on the “FED TRICK”, in the precious metal markets, few realized the “GOLD TREAT” as the U.S. Mint updated its Gold Eagle figures showing another 2,000 oz of the coins were sold since their update yesterday.
This is an interesting development as the U.S. Mint normally dumps the sales for the last few days of the month on the following month. In that case, we would have not been able to realize that an additional 2,000 oz of Gold Eagles were sold within the past 24 hour period.
Furthermore, this goes to show that sales for the Gold Eagles are picking up substantially and at this daily rate we could see a much higher sales figure for November compared to the 48,500 oz sold in October.
Precious Metal Investors Better Wake Up
The precious metal sentiment is still at all time lows. This is partly due to the continued “Fed Taper” calls by Banks & Brokerage Houses. There is no way the Fed can taper its $85 billion a month of stimulus as the U.S. economy continues to weaken. However, this doesn’t stop the Banks & Brokerage Houses from doing their part in keeping the Fiat Monetary Regime alive as long as they can.
Investors must realize, when the Fiat Dollar Monetary Regime disintegrates, so do most of the assets that these Banks & Brokerages hold and represent. Basically, the continued treat of FED TAPER allows monetary authorities open season to smash the precious metals, while they prop up the broader stocks markets and bonds.