Gold Update: The table appears set for a substantial markup of gold

As you will see from the links below the gold speculators have been removed from the market and the bullion banks (manipulators of the gold mkt) have transitioned from huge short to long positions. It is our belief that the bullion banks (Goldman Sachs and J.P. Morgan, each important owners of the common stock of the Federal Reserve--shame on you if you still think the Federal Reserve is an entity of the U.S Government) are in desperate need of capital and are likely to use their manipulative ability of the gold market to replenish their devastated capital base. If we are correct in this assumption, the price of gold should enter a period of steady rise shortly after the November 4 election. We believe the coming period of rising prices may reach historical proportions given the recent and continuing unbridled creation of fiat money globally.

We are now moving Fortune's Favor I into a diversified list of gold/silver mining stocks at prices that can only be described as surreal as they have been reduced to prices that have absolutely no relationship to rational long-term intrinsic value. In our experience, devastation like this has only occurred under conditions of very intense forced or involuntary liquidation. While it is difficult to predict when this period of commodity hedge fund and commodity index fund liquidation will come to an end we believe a prudent period of accumulation can be commenced with evidence suggesting the bullion banks have moved to the long side.

Click here for today's Commitment Of Traders charts in Gold and the USDX and Commercial Activity in Comex Gold with commentary from Trader Dan Norcini

Click here for today's Custodial Holdings charts with commentary from Trader Dan Norcini