China dragon

When High Frequency Traders, central banks, and political agendas are in control, the price of paper gold can be suppressed and bonds can be levitated.
The real questions are:

How much longer can the HF Traders and central banks manage the paper markets to the detriment of the real market for physical gold?
When will Asian demand overwhelm the western paper markets?

Rick_Rule-315x180

As Rick Rule puts it, “There are over 2,000 junior exploration companies around the world and most of them are destined to fail for geological reasons alone. The idea of investing passively in a basket of small and micro-cap companies and weighting them based on their size is problematic in the gold sector.”
Rick said this is why this new ETF is so significant.
Until now, there hasn’t been a way to own a junior gold mining ETF that favors some companies over others based on qualitative factors. “I want to own companies based on their track record of creating value, not on how big they are.”

gold

The rise in the stock market is creating a lot of wealth for Chinese investors, and they are celebrating by buying gold jewellery. The first issue of the Apple gold watch sold out in less than an hour in Chinese stores!
Over the next two to three years, Apple will likely need substantial amounts of gold to meet the massive demand for its gold watches. Each watch is made with about two ounces of gold.
Below is a daily chart for ZiJin Mining, the largest gold mining company in China. I own the stock, and I’m an eager buyer of much more stock, on every 25 cent decline in the price.
This great company is clearly poised to be a leader in the gold jewellery oriented “bull era”.

falling-bear

In simple-average terms, the elite S&P 500 stocks were trading at a staggering 25.9x earnings!
And in market-cap-weighted-average terms, their collective P/E wasn’t much lower at 24.0x.  These levels are dangerously high.  14x is historical fair value for US stocks.  21x is expensive, and twice fair value at 28x is hyper-risky bubble territory

repo

The strange volatility we’ve been experiencing in the markets is occurring because there’s is a massive derivatives melt-down going on behind the scenes.  
The Fed is engaging in an enormous reverse repo operation in order to prevent the global financial system from collapsing.
The ONLY REASON the Fed would need to inject massive amounts of Treasuries into the global banking system is because there’s an extreme shortage.
A massive derivatives accident requiring MASSIVE amounts of collateral to be posted has developed:

Back in March, Comex silver prices surged 13% in just 6 days as a massive Spec short position was squeezed. Could the same setup be appearing again, primed for squeezing later this month? It certainly appears that way.
The risk in silver is NOT to the downside with a drop through $15.50. Instead, the risk is being taken by the Spec shorts.
They are being set up once again for an EPIC squeeze…

dollar

There are two connected reasons usually cited for the current dollar strength: the US economy is performing better than all the others, leading towards relatively higher US dollar interest rates, and that this is triggering a scramble for dollars by foreign corporations with uncovered USD liabilities.
There is growing evidence that the first of these reasons is no longer true, in which case the pressure to buy dollars should lessen considerably.

debt ceiling

Will the current price correction really matter in the LONG TERM? 
When the reset comes, would you rather hold assets that are based on debt, trust in a possibly insolvent counter-party, and denominated in the currency of an increasingly insolvent government and central bank . . . . or physical gold and silver?