Custer’s Last Stand! Major Sentiment Shift Underway in Gold & Silver

custer last standSubmitted by Bill Holter:

Previously Gold would be “pushed” down and held there.  Now, the price gets knocked down but it can’t be kept down, and as the saying goes “what won’t go down…will go up”.  We have held in tough this week (so far) and I think that next week we should see a move above the $1,600 level which will finally mark a turn in “sentiment”You see, it is not so much the “price” that the cartel worries about.  If it were, $1,500-$1,600 Gold would surely be something to worry about!  No, it is the “sentiment”.  When “bad stuff” in reality is occurring behind the scenes, metals “sentiment” must be destroyed because it is the ONLY investment with an “exit sign” over the door.  These “doors” must be mentally locked or “confidence” in a system that only has “confidence” holding it together will be lost.  Once turned, in my opinion the metals will put in rallies in both percentage and actual Dollars unlike anything seen so farHang in there, the action is about to astound!

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I mentioned last Friday that I thought it was an important day.  We traded down to the $1,560 level in Gold which was the 3rd or 4th time.  At the time we were down $18 or so and again near that $1,560 level, I thought that a turnaround from there would begin to solidify the bottom process.  We did in fact get a positive close (albeit only .60 cents) and have chopped this week between $1,575 and $1,600.  This has been the longest correction “time wise” since the beginning of the bull market back in 2001 and has taken sentiment to levels only seen (if even then) back in 2008.

I believe that what has been happening is akin to “Custer’s last stand” by the fiat banking cartel.  The world over is very close to “hitting the wall” of debt.  Debt (and derivatives), or too much of it got us into the mess in the first place and then was used and over used again as the way out of the problems.  Many Western sovereign governments (and central banks) have now blown their balance sheets to levels that are clearly and mathematically not workable.  In other words they have and are throwing the “hail Mary” pass.  Yes they have gotten stock markets to high levels but that is all they have done.  The real economies of the world are stagnating at best which means that “earnings” in a macro sense cannot grow fast enough to justify current prices…that is IF currencies don’t “inflate” in response to all of the money printing.
This is a big IF and so far Gold and Silver have been held price hostage to mask the printing.  Speculators have been blown out and we are now going into our 6th month of bondage.  At the same time we also know that physical demand the globe over has increased from already high levels.  My point is that there are 2 types of investors, “traders” who have been killed and long term investors who just keep on stacking their piles.  The legion of “stackers” is and has been growing, taking more and more of the finite supply off of the market at the same time the central banks are creating more “firepower” (money) that eventually leaks its way into the metals.  In other words the central banks are creating money at a faster and faster pace, some of which is used to to purchase “anti Dollars”.  They themselves are creating the bullets that will eventually (currently are) be shot at them!
As far as this being the “last stand”, it just makes common sense.  The U.S. itself is now in the fiscal spotlight no matter how hard they try to shine that light in other directions.  Fiscal cliff, debt ceiling, sequester and credit rating all loom which is EXACTLY why they had to put pressure on Gold and Silver because they (in the real world) are the light itself and cameraman.  Only so much can be done with the “paper markets” to suppress the physical prices.  There are only so many weak handed speculators that can be forced out and fleeced.  There is only “so low” a level which will bring out real buyers who purchase and say “gimme the goods”.  We know that since Dec. at least, this price level was triggered as physical purchases were stepped up, demand has come from the little guy to foreign sovereigns and everyone in between.
It seems to me as if the heavy caliber stuff (physical supply hitting the market) has already been spent and now it’s only a bunch of noise with small caliber paper sales.  All you need to do is look at the action.  Previously Gold would be “pushed” down and held there.  Now, the price gets knocked down but it can’t be kept down, and as the saying goes “what won’t go down…will go up”.  We have held in tough this week (so far) and I think that next week we should see a move above the $1,600 level which will finally mark a turn in “sentiment”.  You see, it is not so much the “price” that the cartel worries about.  If it were, $1,500-$1,600 Gold would surely be something to worry about!  No, it is the “sentiment”.  When “bad stuff” in reality is occurring behind the scenes, metals “sentiment” must be destroyed because it is the ONLY investment with an “exit sign” over the door.  These “doors” must be mentally locked or “confidence” in a system that only has “confidence” holding it together will be lost.  Once turned, in my opinion the metals will put in rallies in both percentage and actual Dollars unlike anything seen so far.  I can say this simply because we have gone nearly 6 months with the most heavy handed and blatant manipulation seen throughout the entire bull market episode.  There had to (has to) be a reason that they made their stand SO publicly and blatantly.  Hang in there, the action is about to astound! 
Regards,  Bill H.

Comments

  1. How many times have we heard “Major Shift”?  I hope that Bill realizes that the Indians won and Custer passed on from a heart attack!

  2. Good news RANGER! Tomorrow we get free beer!
     

    • Put a Freedom Girl coin in your stein. The beer will taste better. What’s your address? 100 of your best SD friends will stop by to help empty your fridge. ;-)

  3. Bill Holter and Jim Sinclair are stating near the same timing.  I think anyone that tries to predict what is a known manipulated market must have either an Ouija board or inside knowledge. 
     
    However, whats been stated does make sense that the large gold trades have now occurred and basically its mostly small stuff and paper getting tossed around. 
     
    As many have stated before, He That Has The Gold Makes The Rules.  Once the big buyers and owners of gold decide they want the blind naked short manipulation and price caps to end they will go away like a roach when someone turns on a light. 
     
    It will be interesting to watch what happens over the next couple of months.  I just hope we’re not at <$1,550 in June or July and stuck in a sideways channel.

    • i agree….i really do believe that it opens respected market analyst and real money advocates up to deserved ridicule when they persist in offering price targets along specific & non specific timelines…
      Sinclair should stop with the “Gold is going to $3500″ stuff…it serves to discourage those who unlike me understand fully the purpose of the blatant manipulation of both forms of real money at a time when they should be continuing to stack versus giving in to the desire to liquidate for worthless green pieces of paper….not helpful for the cause i must say….

  4. Lot of silver stackers here in the UK appear to have given up, judging by the stacks of Gold and Silver investments being sold on Fleabay UK.
    Never seen so much flooding into the market.
    Gold and Silver Coins and Bullion going for well under the expected rate, sellers are willing to do an even cheaper deal outside of ebay too, and in a hurry to sell.
    This is indicative of people giving up on PM’s and cashing out.
    Pity my fiat is all maxed out, otherwise a wonderful buying opportunity.
    I am tempted to borrow fiat, as I find it hard to resist such bargains, but have a healthy stack of Ag and Au already.
     
     

    • Can you elucidate on this situation?  Is it possible that many Brits are so cash strapped these days that they MUST sell, just to pay the bills, even though they might not want to sell at these low prices?

  5. I READ THIS SITE EVERY DAY BUT I DON’T USALLY COMMENT. I’D JUST LIKE TO MAKE A FEW POINTS .  #1  I BELIEVE THE GOV’T IS DEFFINEATLY MUNIPULATING ALL MARKETS ESSPECIALLY SILVER.  WATCH OIL IT’S HARDER FOR THEM TO MUNIPULATE THAT MARKET B/C PHYSICAL DELIVERY IS ALWAYS NEEDED.  WHO WANTS PAPER OIL?  # 2 ALSO SINCE  THE GOVT IS TOTALLY RUTHLESS IN SAID MUNIPULATIONS  THEY’RE  SURE TO SELL FAKE GOLD ,SILVER  TO THE PUBLIC SO BE VERY CAREFULL .  #3   DON’T INVEST IN MINES AS THEY’LL EVENTUALLY NATIONALIZE THEM. THEY’LL EVENTUALLY TRY TO CONFISCATE EVERYONES GOLD , SILVER ETC. #4  THE BOTTOM LINE  IS NEVER SELL YOUR PMS FOR ANY AMOUNT OF MONEY B/C THE FIATS WILL ALL BE WORTHLESS JUST SAVE AND BARTER FOR OTHER COMMODITIES.  

    • “WHO WANTS PAPER OIL?”
       
      Apparently, there are those who do, else the oil futures market would not be thriving.
       
      “ALSO SINCE  THE GOVT IS TOTALLY RUTHLESS IN SAID MUNIPULATIONS  THEY’RE  SURE TO SELL FAKE GOLD ,SILVER  TO THE PUBLIC SO BE VERY CAREFULL .”
       
      Yes, they are that but they also need to be careful about how they do it.  If they were to be caught selling fake gold or silver, it would create a political s***-storm that would be very difficult for them to control.  Heads WOULD roll… probably not the ones that deserve to roll, but some would roll anyway as peace offerings to an enraged public.  We Americans have many quirks and one of them is our innate sense of fairness.  Offend that part of our basic nature and all manner of Hell WILL break loose.

  6. This is only partially true:  “…so far Gold and Silver have been held price hostage to mask the printing.”

    The low grade currency war we are currently in involves some degree of rotation among central banks.  Right now, Japan is out in front printing away, and getting ready to print a heck of a lot more.  No surprise, if you look at the price of gold in terms of Yen in the last few months, gold is moving higher.  Meanwhile, the mass printing in Japan, as a new-ish step, has created an incremental addition to the long US dollar trade vs. the Yen, which in turn, adds a marginal amount of pressure on gold and silver in US dollar terms (the correlation is no where near as high as the brain-dead mainstream media would suggest, but the correlation does operate from time to time).

  7. Just keep stacking. I’ve got all the time in the world!

  8. Things are unraveling, sooner or later something will tear and the dollar or euro will fail. That is when PM’s are going ot take off.

  9. Oh dear! I’ve been hearing about those types of news on precious metals for more than a year. The worst part is that when silver had crashed in 2011, people were saying that silver would return to 50$ per ounce by 2012 and it never happened. Although, we should really be glad with the temporary gold and silver’s prices which give us really good opportunities to stack! I really hope that it stays like that for two more weeks so that I can have the chance to buy the Slave Queen.  

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