Check out some of these tidbits from SK Options:
"If a hedge fund or even an individual trader were to have sold gold at the AM fix and covered that short position at the PM fix, for each day of this terrific bull market run in gold, that fund would have almost tripled their starting capital."
"Consider a hedge fund starting in 2001 with $100m, with the strategy of being long gold from the PM to AM fix, and short gold from the AM to PM fix. That hedge fund would be worth $5.26 billion today, before any fees and expenses."
So an asset rises 590% over a period and you have a 3 fold increase the opposite direction intraday? Kinda shocking, no? Eyebrow raising, maybe? Do you think anyone at the SEC of CFTC has noticed any of this? Some might say defend their ignorance as it's much easier to surf porn that dig into the inner machinations of our crony capitalist system. So rather than go after something like this or the criminal class likes of a Cassano, Paulson, Raines, Mozillo, Geithner or Dodd we instead get the when they're not too busy porn surfing tough guys at the SEC chasing down sacrificial lambs Griffiths and Steffes. Pathetic.
The gold article has some great charts showing all the internal disparities. Tends to give new meaning to the phrase never judge a book by it's cover. But wait a minute, didn't we learn that lessson from the uber-respectables Madoff, Stanford, and his excellency Corzine?