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TheStreet Open House

Central Bank Gold-Grab Intensifies, Part II

NEW YORK ( Silver Gold Bull) -- In Part I of this series, I discussed the latest chapter in Western bankers' newfound love-affair with gold.

Indeed, as central banks around the world swap their own paper for gold at the fastest pace in history, it's quite clear which monetary asset these charlatans really believe is a "barbarous relic."

After bad-mouthing gold for decades (and continuing to get their media trolls to attempt to frighten people away from gold today), we are currently witnessing history's greatest "bash and buy."

Both European banking authorities and those in the U.S. are now proposing reclassifying gold as a "Tier 1" financial asset. As was previously noted, this would have the effect of instantly making gold twice as attractive and twice as valuable to all of these large, Western financial institutions.

What makes these developments especially interesting at the present time is that they are occurring at the end of another long period of sideways trading in the gold and silver markets.

Throughout this 10-year-plus bull market, these temporary periods of sideways price-action, where the bankers are able to trap gold and silver within trading ranges, have preceded the largest/longest rallies over the past decade -- where gold and silver prices smash through all previous (nominal) highs.

While the bankers are typically the last to notice and understand the consequences of their relentless manipulation, if you hit a dog over the nose with a rolled-up newspaper enough times, eventually the dog will get the message.

Thus the bankers themselves know their "fun" has nearly come an end (at least for an extended period of time), and they will have to once again sound the retreat on gold and silver prices. Being greedy (above all else), these banksters manage to be quite pragmatic: when they know that gold and silver are set to blast-off once again, many of them like to come along for the ride.

So, with a long period of sideways trading in the precious metals sector nearly at an end; with the bankers themselves in the process of reclassifying gold to make it much more valuable (for themselves); and with the bankers having a known tendency to switch sides and jump on the bandwagon (for short stretches); now is the time for all savvy precious metals investors to empty-out their bank accounts and sink every last dollar into silver and gold. Right? Not so fast.

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