Gold and silver just made their best Old Faithful impersonations on this morning’s NFP disappointment, as bad news is now good news for the chances of Bernanke announcing unlimited QE next Thursday.

Silver EXPLODED VERTICALLY to $33.50, a full $1.50 move higher from it’s overnight lows.  Gold exploded to $1730, a full $50 from it’s overnight lows.

As we recommended last night during the sell-off, all corrections are being met with MASSIVE PHYSICAL BUYING, and we recommend responding immediately to corrections by backing up the truck and STACKING THE SMACK!!

 

Gold’s vertical explosion:

 

  1. @XC Skater their is nothing wrong with giving money to the poor. But when a government is giving it away and they are running deficits every year that means they are printing the money and not earning it.
    If they print money it makes everyone poorer because they have added money to the money supply which dilutes the purchasing power of the money saved by the its people.

  2. How far would one little trillion of extra debt go in terms of buying votes? $4000 or so per vote? Possibly more. And those against it, don’t get the $4000.
    Soon the USD will be devalued, if not by the rest of the world by ceasing its usage, then by monetary intervention of the FEDs. Like Argentina did. Only 100% US-made will remain affordable. If you can prevent China from buying it all up. Inflation from dilution will be the least of their worries.

  3. So that’s what happens when the cartel tries to smack silver right now. At 32.90$, They tried to crush it to 32$ but instead, silver went to 33.65$ per ounce. If there is unlimited QE, then it is guaranteed for silver to reach at least 40$ per ounce.

  4. The cartel will be handed all the green they need to continue to play the paper game.  We need all that money on the sidelines to pour in and defeat the evil they do.  We are in for the long haul and I’m sure we will see more manipulation until everyone realizes that paper means nothing.  Paper defaults are necessary to smash the cartel and allow reality to guide a free market.  That’s all we want is a free market to invest in.  Everything is a scam and this is the last chance to invest in something solid that you can actually physically own.  I hope the dog is losing its will to fight and we return to a free market soon.  Paper prices are just garbage and not worth what is written on them.

  5. @Sumkid I felt last month their will be no QE3 before the election because of the stronger than expected nonfarm jobs report. A strong jobs report makes obama look good. I was expecting another report similiar to the one we got last month yesterday to maintain that belief. Now because of the weak report the markets are expecting action by the fed. Increasing jobs is there duo mandate. If the fed doesnt act With QE3 on September 13th 2012 the markets would probably expect something is wrong and begin selling. Imagine the Dow plunging 2-3,000 points or S&P 3-400 points close to election time? They dont want that. The lesser of the two evils is a QE3 announcement. Ben Bernankes term is over in 2014. I dont believe he wants another anyway. He doesnt want to go down in history as the guy that was in charge when the world financial system unraveled.

    I believe this is how it goes down in the next few years:

    2012: QE Unlimited announced 4th quarter
    2013: High inflation about 30-40% /debt ceiling raised to $20 trillion/  2 usa debt downgrades / War with Iran / Oil at $150-200 per barrel/ dollar loses reserve currency status
    2014:  Higher inflation maybe 60-70% / possibly hyperinflation/ Bernanke doesnt seek new term/ new chairman installed crash occurs
    2015: Dollar dead replaced with new currency backed by gold at $10k per ounce.

    • @StackerX Maybe Ben Bernanke’s term will be over in 2012 after the election if Ron Paul or Romney wins. If Ron Paul wins, then most of your predictions may be wrong. I was so worried about QE3 that I got rid of all my fiat American dollars except for the pennies for which I’m planning to do. By the way, I don’t know how bad a QE is and all I know is that it creates massive inflation. How much does a QE devalues the US dollar? By 25%, 50% or more?

  6. @Sumkid hard to say how much inflation is created because as of this moment we dont know how much money is going to be printed. Inflation now is probably around 9-10%. The drought this year and next should add another 5-10% IMO. Iran strike should bring oil to at least $150 per barrel. Oil will make food and gas prices much higher. We could add at least 10% right there maybe 30% i guess?! Current price of gas about $4, I read an Iran strike could bring gas to at least $6. Thats 150% increase.

    Then as the dollar loses its reserve currency status we should expect all the US dollars circulating around the globe to come back home. That will probably kill the dollar. Energy/ Electricity will be more expensive also by fourth quarter 2013. In 2014 we should begin to feel the effects of QE3.

    So lets do a run through.

    Current inflation: 10%
    Drought inflation: 5-10%
    War/Oil inflation: 10-30%
    QE3 inflation:       25%. (QE2 raised food prices around this much IMO)(2007 can of soda was 50 cents now its .75-$1.00

    All just rough guesstimation/opinion could be higher or lower. Point is people living paycheck to paycheck is royally screwed!

     

  7. @StackerX If the inflation rate keeps growing like that every year, then it is 100% guaranteed that we will reach hyperinflation and I believe that we sure will because all fiat currencies in the past were ended by hyperinflation. The president must be really insane to attack Iran because I’ve heard that China and Russia will get involved if Iran gets attacked by the US and then, WW3 will start. If gas keeps going up, then I’ll buy an electric car in the future and also a solar panel to power it up. My local groceries sell soda drinks for 1$ per can on average and the highest that I’ve saw was one grocery store selling them for 1.35$ each. I have never seen a grocery selling a soda can for less than 1$ so I’ve decided to buy a big 24 cans pack from big grocery stores like Costco and then I sell them for 0.75$ each at my school. I can still make enough profit and I use my profits to buy silver. Sadly for me, I only get about 1 client per week so I need more advertising.

  8. War with Iran/Russia/China seems unavoidable. Obamney arent crazy and arent in control of the US. We will attack Iran to:

    1) Control oil so we could maintain our Reserve Currency status. 
    2) Install a Central Bank (Iran is one of 3 countries without a Central Bank)
    3) Install another US friendly puppet regime
    4) Slow Chinas growth by restricting oil.
    5) Continue to destroy US middle class

    Soda around my area is about one dollar. I use the soda price to help people understand inflation and its destructive nature when it comes to your buying power. I have seen a bottle of water for as high as $2. 

    If you want to make money and have a lot more customers you need a more unique product. Switch from water to maybe a snapple flavor they cant get near the school. Kids love sugar. You probably arent selling many because they arent cold.

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