James Turk: A Moment Of Crisis For Central Planners

Given what the central planners have thrown at gold and silver the last six years, a 1.1% ‘plunge’ is not only a welcome relief, it is giving us an important message. The conclusion from this event is that 40,000 Comex contracts trading in a span of 10 minutes did so little damage to the gold price, it is a clear sign that the central planners are up against an immovable force. And we know what that force is — all the national currencies they are printing and debasing from QE and their other schemes is not only going into daVinci’s and other tangible assets, it is also going into gold and silver.

So here is what we face, Eric. Will the central planners dare throw another 40,000 contracts at the market to try reaching their sweet spot and risk having to come up with more physical metal for that portion of the buyers asking for delivery? Or are gold and silver finally going to break out of their respective bases and head higher, ending this period of extreme undervaluation? Only time will tell, of course, but instead of more base building or a drop back to the central planners’ sweet spot, I expect an upside breakout soon, and the tightness in the physical market suggests it may be just days away.”

- Source, James Turk via King World News