Grandich On Gold: “Fear Has Totally Gripped People—To Try To Explain The Fundamentals Would Be Useless”

I had the chance to reconnect today with Peter Grandich, publisher of The Grandich Letter, for a powerful conversation on the gold market. Peter has issued spot-on market calls for decades now, beginning with the 87′ market crash, gold in 2003, and the stock market bottom in 2009.
Wednesday morning Peter issued a major new call entitled, Gold ($1225) Bottom In Sight, calling for a bottom in gold—likely within the next 48 hours. The thrust of that call is being led by cycles, sentiment, and market manipulation.
In discussing his new call, Peter indicated that, “Some [market] technical work came up this morning in a way that I haven’t seen in years…I’m an old fan of ‘Gann Angles’, [and] the combination of that, cycles work, and some sentiment indicators—suggested to me that within a couple of trading days…we would [see] a major bottom in the price [of gold].”

Lowered Prices

From Tekoa Da Silva, Bull Market Thinking

That bottom however, will only be capitalized on by a few investors according to Peter, for the reason that, “To try to explain why fundamentally gold makes sense [here] would be useless—like throwing sand in the ocean. We’re at this level where the market is trading now, because fear has totally gripped people that owned [gold]…and to stand there and say, ‘Be calm’, as everybody is running down the street in a total panic would be useless, and that’s what’s happening now…[However], the fact that it’s [happening] like that, means we’re towards the end of the [down] move.”

While accepted as a common occurrence in other markets, Peter indicates that manipulation is largely denied or ignored in precious metals, and has played a dominant role in the price action over the last few months.

“Every week we see news of [legal] charges,” he explained, “of actual proof and people pleading guilty to manipulation across a wide spectrum [of markets]. Yet somehow people think it stops at the doors of the Comex—which I like to call the Crimex…I am convinced, and I don’t know whether a smoking gun will ever prove it right…that this was part of a calculated move by [certain] parties, that [intensified] in April, and has accelerated up to this point, in order to take down [gold]. If it was truly a normal selling of something that people no longer wanted, there would be no real physical demand for gold. But while the selling takes place in the paper market, any and all declines are met with heightened [physical] demand.”

The significance of that manipulation is key according to Peter, in that, “If people had to resort to this level [of manipulation] to kill the messenger–then the ‘message’ that messenger has, must be absolutely startling, with certain people not wanting to see it get out. That’s why this has taken place.”

As a final remark to investors, Peter noted that, “The reasons to own gold have [only] increased.” 

This was another powerful interview with one of the most successful market commentators of our time. Lots of additional items were discussed, and it is required listening for investors and serious market students.

To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to to your desktop:

>>Interview with Peter Grandich (MP3)

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