Submitted by Stewart Thomson:

Quantitative easing and “rates to zero” policy is spreading to every major economy around the world.  Horrifically, despite these enormous “fire hoses of liquidity”, gold stocks continue their unending slide.   By this point in the gold “super bull” market, most gold stock investors believed they would be wearing a crown of solid gold.
The market never ceases being a fight, and in a super-crisis, the fight becomes a “clash of the titans”.  Gold stock investors have never faced a greater challenge than they face right now, but neither have the bears.

The biggest weapon held by gold stock bulls, is the central bank of the United States, and over the next two days, the bank’s open market committee engages in key policy discussions.  The meeting culminates with the release of a statement to the public, at 2:15PM, New York time, on Wednesday.  For all practical intents and purposes, the primary driver of the gold price is the balance sheet of the central bank of the United States.

[Read more...]