The Fed Is Desperate To Keep Gold From Exploding HigherBy Dave Kranzler The price of gold moved up $15 overnight from the time the Asian markets opened until the Comex gold pit opened. Shortly after the Comex paper gold market trading was underway, an avalanche of paper contracts was dumped onto the Comex both the electronic trading system and the floor. This is what it looked like: Golds path looks like Niagara Falls in the graph above shortly after the Comex opened this morning because someone decided to dump over 55,000 contracts onto the Comex. 55k contracts translates into 5.5 million ounce of theoretical gold. Theoretical because its only in theory that the Comex has 5.5 million ounces of gold to deliver. Currently the Comex is reporting a little over 697k ounces that are available to be delivered into the paper gold contracts that the banks print up and dump on the market. The Comex vaults are showing a little over 7 million ounces in total in the vaults. This is highly theoretical because most of the gold is accounted for the big bullion banks. I use accounted for loosely because there is no mechanism in place to hold the banks accountable for what they are reporting. In other words, the amount of physical gold reported by the Comex is likely nothing more than a suggestion. In the next graph theres been a definitive trading pattern that doesnt take Einsteins eyes and brain to see. For the last three trading days, gold has moved higher prior to the opening of the Comex floor in NYC only to be price-smashed with a deluge of paper contracts representing little more that theoretical gold. But I prefer the real thing. I actually welcome these price hits because it enables me to move theoretical electronic currency from my bank account into a bona fide gold currency in a BITGOLD account. When gold moves higher, my net worth will be the beneficiary of the Feds market interventions. I look at it as grabbing my share of the wealth being transferred by the Fed/Government from the besotted middle class to those who know whats going on. Of course, the more interesting question begs to know the real reasons the Fed is compelled to make its market intervention activities so blatant. One look at the economic reports being released from non-government sources and the condition of the U.S. Governments balance sheet readily answers that question You can read more from Dave Kranzler at his site InvestmentResearchDynamics.com. Darn it it I like the $10,000 per ounce reality. 