Fed "Statement" crashes Gold

[bailouts4ever]

Hello there,

On Ben's "statement" in Washington (as if he ever had something knowledgeable to say in a public hearing... ) that QE3 is not planned any time soon Gold suffered a "flash-crash" this afternoon after 1300hrs GMT.

http://www.zerohedge.com/news/gold-silv ... way-spread

It is an interesting pattern that a statement about "not more currency is printed" has an effect on gold being a commodity which should have little connection to currency at all. Still at the same time the stock prices did not dip much, which in fact do have a connection to currency and price.

To me it seems that:

a) the Fed has a vital interest in hammering down gold and silver prices
b) the Fed has a vital interest in not saying the truth anyway
c) the PPT may show some action here as well as the gold dropped substantially in a very short period of time.

Still one should remember one thing. Why would a sane person that moved out of paper currencies and into PM ever value this asset by the paper currencies he/she abandoned? Thus, the gold price is of little to no relevance it is more the weight.

An ounce is an ounce no matter what Ben says!

[Indiana Jones]

First Ben is lying like hell because other central banks are flooded with $ QE to help their country banks;
Second Ben is not telling the truth about the drop in unemployment because employability figures are disaranged;
Third Ben is hiding the truth behind staggering gasoline prices and their effect on the US economy.

Goldman has insiders everywhere and knew what Ben was going to tell congress. Just before the speech they entered massive shortpositions on the gold- and silver crimex and tonight the dealers drink champagne ....

[Boefke]

@bailoutsforever.

This will shake out weak hands, and make physical more available to the markets. Strong hands won't make the difference here.

What also follows is people considering a part of their savings to convert in gold won't make this step out of fear of the high volatility. Both cases mission accomplished

[Malcolm]

Maybe it was the mention of FreeGold by Representative Ron Paul.
Representative Paul asked Mr. Bernanke what he thought allowing US citizens the choice of two currencies, gold and paper dollars.

Mr. Bernanke simply said (to paraphrase), 'if someone wants to own gold or Yen, they can do so.'

Representative Paul thought Mr. Bernanke had missed his point (FreeGold). He pointed out to Mr. Bernanke that the US government would have to remove taxes on the sale/purchase of gold and silver. Second, the US government would have to revoke capital gains taxes on gold/silver exchanges. Finally, the US government would have to recognize and enforce contract obligations established in terms of metallic units (legal tender laws). Removing these taxes and legal obstacles would allow both currencies equally low transaction costs. Citizens could then pick between the two currencies (precious metals and paper dollars) when deciding how to save or transact business.

Mr. Bernanke replied, 'I'd be happy to talk to you about this'.