Anyone who calls what is happening a "flash crash" or hedges on their assertion of "possible" direct intervention is either completely ignorant of the facts or they write their commentary in fear of public ridicule and doubt from other intellectual hedgers. It is what it is: a nuclear currency war rooted in the historical intervention of the gold market by the Federal Reserve and the U.S. Treasury.
Forget the "flash crash" story being widely promoted. The "flash crash" story says that technical and algo trading caused the plunge. Really? In the absence of a big dose of intervention, the flash crash never happens. Therefore, the only attributable cause by anyone who is being intellectually honest - not just with their readers but with themselves - is that INTERVENTION was culprit
In the last two days, 26+ tonnes was delivered on the Shanghai Gold Exchange. The enormous physical off-take in China is a freight train w/out brakes. From Standard Bank:
“In the physical market we are witnessing strong demand. Since the start of 2014, the SGE premium has jumped higher, reaching $18/oz this morning. The buying frenzy in especially China comes on the back of the seasonal demand pick-up ahead of the country’s New Year, which starts on 31 January…More broadly we have also noted an improvement in Asia demand for gold since mid-December. This is evident in the pickup of our Standard Bank Gold Physical Flow Index”The manipulation in the gold market is getting worse by the day as the demand for physical gold from the eastern hemisphere begins to accelerate. It looks like the western Central Banks and their bullion bank market agents are going to work on silver with more focus. SLV is starting to see physical drawdowns, as is the Comex. The capping in silver is beyond blatant. Turkey imported a record amount of silver last year, as did India.. India's demand for silver is the substitution of the gold that was cut off by the U.S. Government-induced Indian import controls.
Make no mistake about it. In the face of China's moves to move away from the U.S. dollar and bolster their own currency with an historically epochal program of systemic physical gold accumulation, the U.S Government and the Fed are waging a nuclear currency war with a war on the physical gold market at its nexus. Anyone who asserts that it is any less than that is a complete coward.