I hate the term PTB because I do not think they have power. That being said, they have ability, and they have the opportunity to dump paper gold one last time. Who? Well a favor for a favor is the name of the game.
The Fed works for the Houses of John Pierpont Morgan and the 'rival' Goldman Sachs, but those bans also work for the Fed. China works for these monied interests, but these monied interests work for them. It works like a back massage circle. When it comes to gold it is a similar thing. One person shorts it, the major banks, and another buys it, China. The Fed is in on the gig by leasing gold. Most of this is paper gold, not real. The physical has a premium the way teeny boppers will pay to be front row for Miley Ray Serious. The paper is used and abused.
They have been dumping paper gold, and if you read my blog you know that I wrote about this a month ago. The price of paper gold is decoupling from physical due to i) massive buying of physical and ii) massive selling of paper.
It is common knowledge that the world is buying physical at a ferocious pace. Demand is skyrocketing all over. Yet the price has fallen throughout January. Have they been creating a buying opportunity in doing so?
How low can the spot price go in this scenario? Well, not to zero, but it could go far. Here is the kicker: wherever it goes, the move back up will be violent. The move will mirror the move down. The further it goes down, the higher up it goes after. I'm just sayin'....