I have been in the process of updating my analysis. Things are getting very strange.

As I have been saying for some time silver looks like it could explode any minute and some of the incentive of the filth pounding gold may well be to protect silver. I think they are failing. Silver may take off and the filth may try extreme measures to hold the line on gold.

The basic supply and demand fundamentals favor much higher gold prices….some day. The question is when will S/D overcome the schenagians of the decrepid filth.

I have not moved my channels. The range I see is still $645 on the low side and $695 on the high side for the next 4 - 6 weeks. I do not think todays action is significant in the medium to long term view. But i liked today’s action!!

The long term moving average continutes its steady climb. Production is down. Consumption is up. Without the filth we would all own beach front estates and could turn Belize into Goldtent City. The charts to me are bearish, but I do not consider charts to be credible in a manipulated market. (I expect to hear from alternate opinions.)

I still can’t quantify the effect of the gold and silver ETFs. In my gut I see these as pools of physical at the disposal of the filth. I believe that the ETFs are responsible in part for the poor performance of physical over the last 4 weeks. The ETFs have seen a large net withdrawl during this last pounding of gold from $690 to $650. This could be attributed to traders dumping a bad chart, or the ETF selling its gold causing the PoG downturn followed by ETF withdrawls. Some who follow this very closely claim the latter and I believe them.

The very large and unusual changes in the open interest is also difficult to factor in. I am getting a little blinded by Bill Murphy’s analysis of the COT. I don’t think these are the same markets as when he was an active floor trader. He knows tonnes more than I, but I can’t step up and claim that there is now “smart money” that has gone long and will stay that way in a down turn.

I believe smart money will take the filth’s offer of physical gold at the least possible price. If there is a large pool of investors out to accumulate physical I think they are also “gaming” the system. It would make sense to me to cause the filth to begin to question their effectiveness and their game plan.

In effect “smart money” may be trying to get the filth to over committ and then squeeze them. To me that has to happen in the futures market not the options market. The paper hangers can play the paper game forever, it is in the physical market where they will fail.

My gut feel? I feel if you have the funds, buy now. Get physical. Something is going on and it could be a gold and silver explosion, or it could be a rapid change in the global status quo.

There are power hungry self appointed demi-gods who seem to think it is their destiny to rule the world and wea are all destined to be their subects.

Between the goldscum sucks fraternity, the rest of the huge international banking concerns, and the neo-cons we may be watching a historical power grab. It would be good to have even a couple of extra oz’s at hand including a few extra ounces of lead.

Sorry for the length, but my analysis does not spit out a number, but ranges and risk. The non-numeric factors need normalized quantification (and cooeficients) that beg discussion.