We are about to find out what the real physical market in gold truly looks like, and if the central bankers even have any real gold vs. paper gold transactions on their books. Hugo Chavez is beginning to repatriate his gold in mid-November from central banks from some of the strongest countries. We will know soon if they have all the gold or if he gets screwed. My bet is that he only gets part of his gold back, and that this sets all kinds of fun reactions off. This could be the first domino to fall in the separation of the physical vs. the paper market in precious metals. In which real holders of the metal have the most to gain.
*Quick Market Update* The dollar has taken a breather from its rally the past few days, due to strengthening of the Euro, as they nationalized a large bank in Belgium that was about to fail. This has allowed the equity markets some relief, but I expect the rally to be fairly short as the macro picture has not changed. More taxpayer dollars bailing out more banks, what a shame. Especially since the debt of that bank is $180 billion dollars, or the equivalent of 100% of the GDP in Belgium. Another shitty deal for the citizens.
There is heavy resistance at 1200 on the S&P 500, so watch that level. Should be a good level to short from, but a strong rally past 1220 would gainsay that, and we could have some serious short covering along with a strong rally. I don't see that happening, but it is the other side of the coin.
http://truthingold.blogspot.com/2011/10/hugo-chavez-issues-wake-up-call-to.html
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