The manipulators could sell without regard to risk because they are backed by essentially unlimited government money. Their selling onslaught was enough to turn the market lower, forcing the funds to sell their long positions. The market manipulators bought what the funds were selling as the gold price dropped. So the manipulators covered their shorts with a profit while the funds took a loss. The huge drop in Comex open interest corroborates this outcome.
It means that the central planners, through their market manipulations, have sucked out most of the customer money originally invested in these funds, causing many of these black-box traders to close down their funds and return to their investors what money was left after losses.
The failure of this form of black-box trading was inevitable in a rigged market. I wrote about it in 2004 and 2005, observing how customers of these funds were getting their pockets picked by the market manipulators, who were following the orders of government central planners.
- Source, James Turk via King World News: