Nevsun Resources Ltd

Growing high grade, low cost Gold producer - projects in Eritrea, East Africa

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Message: Auguries - October 12, 2012

I do not conform to that interpretation:

There is nothing technical to gold at $1800. It is just a convenient line drawn up by the Cartel to act upon should the price rise.

It has been attacked because gold is very under priced ( attempt at True correction to a manipulated price). It has been defended because the Cartel considers this level critical to it's defence.

This will continue until the Cartel decides that it costs them too much to defend at this level OR the Cartel capitulates. Fat chance at this time for them to capitulate. However world events could easily change Cartel's defence level. Example, gold spikes to 2100$
and then shortly after they readjust to maintain it just below 2000$. 2000 being a psychological level that needs defending against a rapid rise. ( remember past battle at $1000).

As an example of what might trigger temporary gold price above 2000$:

Merkel has finally said No to further payments to Greece.
Greece does not want to have further austerity due to people's protests.
So Greece defaults and this triggers Spain into further difficulties and it costs too much for Europe to fund Spain's expenditures.

Sooo... Euro takes a beating and gold spikes. (US $ is also taking a beating through inflated prices that are not much publicized by US media.)

Aside, Europe needs stricter control of it's banking system. Greeks spent like a teenager with a credit card and are throwing tantrums at controls demanded by the likes of Germany (a parent). A centralized control system needs to be accepted by all who use the Euro as it's monetary system.

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