Gold Bugs Light Up as They Forecast a Short Squeeze

Protocols of the Elders of Zion. Bigfoot. Area 51. Perhaps claims of manipulation in the gold market deserve to be in the same category: compelling to some, but lacking relevance to most and rationality to others.

The Gold Conspiracy
There's Gold in Them There Black Helicopters

Certainly there are plenty of arguments to explain why the idea of collusion in the gold market is a crock. But that doesn't absolve prudent investors from understanding what is happening there, and what's happening is gold stocks were on the rise until today's debacle. Yesterday, the Philadelphia Stock Exchange Gold & Silver Index rose 3.8%, capping a 44.6% rise since April 5. In the same period, the S&P 500 gained 0.8%.

The XAU's advance came to a screeching halt today after the Bank of England announced its intention to sell up to 125 tons, or almost 60% of its reserves, by March 2000. The gold and silver index was off 11.5% today as the price of gold shed $7.40, or 2.6%, to $283.20 an ounce. ...