lucySD reader B. writes:

Doc-I spent the last year and a half dollar cost averaging in on silver. My average including premiums is $30.93. I have staked my retirement on this listening to BrotherjohnF , David Morgan and all of the gurus who have preached how silver is going to $100 or more. Well it looks like all the talkers and silver preachers are wrong. We seem to be headed to the teens. I cant believe that I got caught up in this and listened to everyone for the last 2 years every word and it seems everyone who calls themselves an expert is so full of hot air its insane.
Sinclair- Gold’s fall is over- we wont ever go back under $1600. Is he another nut job? Morgan the silver guru- what a joke. I might as well throw a dart at a map with numbers on it than listen to his nonsense. I need a real, sober, true person to try and tell me what the hell is going on and should I bail on this or stay for the ride?   My family’s future is depending on the decision I make at this point. Any ideas?
Thanks Doc, B.

collapseWe are told by the MSM that the sale of $650 million worth of Cypriot Gold has just caused a 3+% drop in the price of Gold (and more than 5% in Silver).  Is this credible?

The Fed is creating $85 billion per month or close to $3 billion per day, 24/7.  The Cypriot Gold at is only 1/5th of what our Fed prints EVERY day!  The U.S. Treasury borrows some $4 billion per day to keep our well oiled economic engine running, ALL of the Cypriot Gold is about 1/7th of what the U.S. borrows each and EVERY day.  Last month, China imported from Hong Kong alone some 97 tons or roughly 7 times the amount of Cyprus’s total Gold holdings, the Cypriot Gold is a mere 4 days worth of imports.  One other way to look at this is that 14 tons is about 6 tenths of 1 percent of the global production of Gold for 1 year…it is nothing.  No, $650 million in today’s world is LESS THAN NOTHING!

downSubmitted by Morris Hubbartt:

Gold has not traded above $1900 for nearly two years, and most investors are wondering if the bull market is beginning a bigger correction.  My gold cycle analysis suggests that gold is testing the support line that extends back to the year 2009.    If you look carefully at the chart, you can see that the gold price is slightly below that support line now, which is creating technical selling by hedge funds.  I call that the “speed bump”, and it’s happened before, in early 2011.  I’ve highlighted that period on this chart.
Every gold investor wants a rally now, but this technical speed bump  could easily cause gold to decline to $1400 or $1350, before the bigger bull cycle “overpowers” the technicals.

SD Weekly Metals & Markets 4/13/13: Vampire Squid Kicking Arse As MOPE Fiesta Runs Wild

Thank goodness for a day of rest — and a weekend, if you’re so lucky!  After a week like this, some precious metals investors might consider driving a car into a tree more relaxing than watching the mainstream media explain market machinations and how gold is now officially in a bear market.
Providing our antidote to mainstream MOPE, we bring you this week’s SD Metals & Markets discussion, including:

  • Paper Metals Market Madness: Silver Breaks $26 And Gold Dives Below $1500- is a wash-out capitulation crash to $22 and $1400 imminent?
  • Vampire Squid Must Eat:  The Bankster Set-up Before Cyprus Forks Over Gold
  • Tribute To Bill Murphy, Chris Powell And GATA: American heroes in the most classic sense of the term

Launch the radio program by clicking the YouTube play button and enjoy the supplemental write-up.  Let’s get to it!

“The Great Deformation: The Corruption of Capitalism in America,” David Stockman, former Republican U.S. Congressman and director of the Office of Management and Budget and a founding partner of Heartland Industrial Partners, levies blame for the dire straits of the global financial system on central bankers, economists and politicians of both parties. In this interview with The Gold Report, he also offers some draconian solutions, including the need for a “constitutional fiscal chastity belt” in the form of a balanced-budget amendment.

Gold has faced stiff headwinds lately as investors abandon alternative investments to chase record-high stock markets. Probably the most significant has been the major selling hammering the flagship GLD gold ETF. It has suffered such intense differential selling pressure that its custodians have been forced to dump enormous quantities of physical gold. What are the implications of this flood of new supply?

The amount of gold bullion GLD has hemorrhaged recently is amazing. To put it into perspective, earlier this week the rumor that embattled Cyprus may be forced to sell its official gold reserves made news. The Cypriot government owns 13.9 metric tons of gold. But on a single trading day alone in February’s gold capitulation, GLD had to sell 20.8 tonnes! The supply recently added by GLD dwarfs everything else.

gold bullPeter Schiff discusses why the recent sell-off in gold and silver defies the fundamentals, ignores the facts, is predicated on a myth, and has succeeded in creating the necessary level of skepticism and fear to finally propel precious metals to new record highs.

MOPESubmitted by Deepcaster:

It is understandable that the Powers-that-be would want to suppress Price Inflationary Signs, because alarmed Investors would otherwise run en masse to Inflation Protective Assets, such as Gold and Silver, and Food Commodities, and enlightened Investors would also simultaneously run away from the Fed’s and other Central Banks’ depreciating Fiat Currencies and Treasury Securities.
The bottom line is that the $10 Trillion Injected by the Central Banks in the last few years is bound to be increasingly Price Inflationary.
And it already is.

200428723-001“We’re just going to kill the dollar.”
This week, I had a series of very sobering discussions with my highly-placed source within the intelligence world. The information he provided hit me like a proverbial tons of bricks. It connects everything we are seeing play out across the world, from the economic problems in Europe to the U.S. DHS ammunition acquisition orders and even the “gun control” debate.  If you’re like me, you’re looking for clarity, context and focus with regard to all of the events we’re constantly hearing about but seem to lack legitimate explanation. I believe this report will provide the context and clarity we are all seeking, but I must warn you that the picture is not pretty.

AFP Photo / KCNA

Pyongyang warned that Tokyo would be its primary target if war broke out on the Korean Peninsula, if Japan maintains its “hostile posture.” It also threatened a nuclear strike against the island nation if it intercepts any North Korean test missiles.

In the comments, carried by the Korean Central News Agency (KCNA) on Friday, Pyongyang lambasted Tokyo’s standing orders to shoot down any North Korean missile heading towards Japan, Seoul-based Yonhap news agency reports.  The agency warned that any “provocative” intervention on the part of Japan would see Tokyo “consumed in nuclear flames.”

Gold and silver were greeted with a classic COMEX open waterfall smash this morning, with gold smashed through support at $1550 and down a massive $35 to $1525, and silver down a full dollar to $26.64!
The smash has gold trading back at July 2011 levels, prior to the US downgrade, QE2, QE3, and QE4!

*Update: free-fall 2nd leg of smash in progress,  silver breaks $26.50 to $26.14, gold breaks $1500 with a 14 handle at $1495!

Texas goldGoldmanite Mario Draghi has just issued Cyprus an ultimatum that the nation’s gold reserves must be liquidated to satiate the Vampire Squid…er…the ECB for Cyprus’ bailout.  In response, Cyprus’ Central Bank President Panicos Demetriades just stated: 

Reggie Middleton Keiser ReportReggie Middleton uncovers extremely unnerving omissions, misrepresentations and what appears to be outright fraud in the Irish banking system along with an in depth interview with Max Keiser in London. He names several banks directly, some which have already failed, been bailed out and collapsed their investor’s capital, others who are still operating, taking deposits and making loans.
Directly after Mr. Middleton’s Irish bank expose series started, the head of the Bank of Ireland (Ireland’s main bank regulator and what used to be their reserve bank until the ECB took over) unexpectedly resigned and actually decided to forgo his 100,000 euro bonus.
Mr. Middleton discusses the distinct possibility of the Irish people getting “Cyprus’d” and offers tools that they can use to mitigate the risk and ascertain how bad off their country really is.