Feeding frenzies occur due to a large supply of available prey in close proximity to a large population of predators.
Generally speaking, the supply of prey declines rather rapidly during frenzies, leaving these periods as brief, intense interludes.
In markets, however, The ingenuity of man has concocted various ways to mask the decline in supply of available prey.
So it is with commodities, where supply seems endless, and Banks and commodity investment companies the world over selling multiples of contracts tied to the same basket of physical gold.
This will end very badly, and the final feeding frenzy period appears to have begun...a most dangerous time for any would-be predator caught in the fury.
Friday, July 15, 2011
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