With many global investors still rattled by the price action of gold and silver, today King World News interviewed the “London Trader” to get his take on these markets. Here is what the source had to say: “Gold was trashed on Monday, while the Fed minutes essentially said nothing. When a central bank coordinates that kind of attack, it’s war, of course it’s war. This type of action is coordinated by Bernanke and the Fed and executed by the bullion banks. It’s actually laughable if anyone thinks that was a legitimate selloff, on what was, in reality, no news.”
The London Trader continues:
“No legitimate market participants were really selling. Sure there were some stops that were taken out, but it was the bullion banks that came in with their selling and this was what suddenly created the air pockets.
There is massive sovereign physical buying going on right now. Interestingly, the sovereign buying is being swamped by paper selling. Sovereign buyers are aggressively buying tonnage every day at these levels. You have to remember their goal is to pick up physical and get rid of dollars. Nothing has changed.