What we need is the second coming of a determined trader so convinced of his/her opinion and feel for the market that taking on the gold banks would seem like a divine calling.
The same stuff we see today went on in the great gold bull market of the 1970s. Then I was a kid in my mid 30s with more guts than is usually good for ones financial health.
I watched the gold dealer’s brokers, then of Phillips Brothers and J. Aron, running the living hell out of the gold gang with the locals jumping on the bandwagon the moment the dealers showed their selling interest. I also saw the same quietly covering by the brokers for the dealers taking back their sells after they had bullied the market lower, exactly like the Goldmans and their pals do today.
The difference between today and then was there is no one with cojones that are big and well financed enough to say enough and take them on for mega profits. I learned from the dealers and used UBS and DB to do my largest buying.
I fought them at key technical points only. The second time gold tried to come up through the $400 level I was long 19,000 contracts. I had run the locals every evening for two weeks making their shorting a losing proposition.
Someone bought information from Bache and Company, my clearing agent, to find out what cash I had. Down went gold through $400 with the gold dealers selling.
I had to preserve my cash so I had to dump 9000 contracts. This dump was not by a margin call as I never permitted that to occur. I called myself well before the close.
All of sudden in comes DB at $380 buying with both hands and feet and it was not me. I went out using my own floor traders to openly buy back 9000 at the market price and added an additional 5000 in Chicago.
Gold in that market never went under $400 again, but rather made it’s great run to $887.50 with the formerly short gold dealers leading the charge.