sinclair1This is a mirror of 2008, only the hidden catastrophe coming at us in the global financial system is going to be far worse than what hit in 2008.
It might help to put what’s going on right now into context.   The entire sector is in a massive price correction that is almost a mirror image of the one in 2008.  The percentage drops for gold, silver and the HUI top to bottom are almost identical to the percentage drop of each in 2008.

Whether or not this is the bottom is anyone’s best guess.  But when this sector turns around, all hell will break loose on the upside


From Truth in Gold:

The BIG difference between now and 2008 is that now, individuals are buying aggressively physical gold and silver bullion coins on every price drop.  Back then all individual/retail buyers of gold/silver disappeared for quite some time.  An even bigger difference is that China is now buying an amount of gold that is equal to the global monthly mining output.  Back then China was not really a factor.  When this turns, the physical shortages that are developing and will become apparent will shock most people.

What makes this whole a ordeal a complete joke is that the reason given for gold’s demise is the end of QE.  Well, how come the stock market keeps going higher?  QE has created an absolute monster of a bubble in the stock and housing markets.  It will end badly.

My colleague, who has about 35 years of experience in the financial markets, commented earlier today that “you can smell desperation in these markets – desperation to beat down the metals and desperation to prop up stocks..”   He is correct.  One big problem for them is that Treasury bond market is leaking uncontrollably.  Bernanke – in a comment that absolutely floored me but received almost no acknowledgement from the spin-meisters on financial tv – admitted that he’s “puzzled” by the higher interest rates since QE3 commenced.  “Puzzled?”  Hmmm – that’s not a good admission for this hubristic little troll who crawled out of Princeton’s ivory tower to re-write the laws of economics.
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They’re desperate alright.  This is a mirror of 2008, only the hidden catastrophe coming at us in the global financial system is going to be far worse than what hit in 2008.  China’s financial system is insolvent and Italy is on the verge of a complete derivatives-fueled financial nuclear melt-down.  Comically – yes it’s funny – the U.S. Too Big To Fail banks are exposed to both of those situations via off-balance-sheet derivatives.  They may be short Italy and China via off-balance-sheet OTC derivatives, but try collecting when the other side defaults.  AIG/Goldman x 10.

  1. While the price movements mimic 2008, I don’t feel as queezy like I did then. Everyday back then was like getting kicked in the nuts as I watched my net worth get pummeled.
    I guess the difference about being unemployed 5 years later is that we now have sites like this which allow me to waste my days posting on message boards about how “right” I am for putting all of my money into metals. 

  2. There is NO WAY they are going to let Gold go higher when the USD is this fragile. The momentum might trigger Hyperinflation. They will, instead, revalue in one fell swoop and remove the possibility of crushing the dollar. It will be revalued so high – the sheeple won’t be able to buy it (think 6 figures). The much feared (by USG) hysteria out of paper and into AU won’t be able to transpire. Unfortunately Silver will not be part of this revaluation equation. Sorry.

  3. Hi, Tony from the UK here….this is my first ever post.
    I found this site around 18 months ago and every time I revisited it I could see nothing but articles telling me how high gold and silver prices would be soaring.
    Knowing next to nothing about PMs I did nothing for a couple of months but in the end, the non stop barrage of pro metal buying articles and vids got  to me and I found myself talking my wife into allowing me to invest £12,000 of our savings in gold and silver.
    I bought four one ounce  metalor gold ingots at  £1150 each and nine one kilo silver ingots at an average of £800 each.
    I have sat back in horror and disbelief watching my investment basically fall out of the sky.
    I blame nobody but myself for the position I find myself in but I would like to say one thing.
    It appears to me that the people who write or make videos for this site appear to know absolutely jack shi* about their subject.
    If a sports tipping site showed the incredible innacuracy in its predictions  that this place does they’d be laughed out of town. 

  4. They are not letting PM’s  trade higher, they don’t have to until physical demand ever picks up.  Hell, even at $18 oz, there is plenty of silver to be bought, demand remains weak. 

  5. the only way we could see hyper inflation imo is if there begins international dumping of the us dollar to flood the domestic market with paper and increase money velocity but that only happens when there is another clear option to the usd iternationally.
    at this point they have ringfenced the money they have printed and velocity is off a cliff.  In retrospect, given their control of the system they have commited the perfect crime.
    as for demand, it is more than robust, but we need a legit supply shock to break this. they are clearly throwing everything they have at metals.

    • The years gained are precious to anyone who is prepping.  Even extra months have considerable value if they allow us more time to get our preps together. Unfortunately, all too many people have ignored the coming s***-storm and are wasting the time provided.

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