Managing Partner, Incrementum AGI had the chance to reconnect with one of the world’s rising stars in the gold market, Ronald Stoeferle, managing partner of Incrementum AG, and publisher of “In Gold We Trust”—the world’s definitive annual report on gold.
During the interview, Ronald indicated that in researching this year’s updated report (released last week), he discovered staggering evidence that the best-informed traders in the world are now positioned for higher gold prices. He further added that based on history, the extreme bearish sentiment in the market now carries “the recipe for a pronounced rally.”

2013 Gold Eagles As Low As $54.99 Over Spot At SDBullion.com!

2013 Gold Eagle

From Tekoa Da Silva, Bull Market Thinking:

In discussing the most shocking piece of information discovered during his research for this year’s report, Ronald noted that, “If you read into the COT report…the commercial hedgers reduced their net hedges (which is the net short futures positions) by 84%…[this indicates] the largest, most deep-pocketed and best informed traders—have positioned themselves for higher gold prices…[and] in general I think you always have to position yourself with the commercials, because in the long term they are always right.”

When asked about the extreme bearish sentiment in the market at the moment, Ronald said, “It seems that the bulls have [completely] thrown in the towel…and that’s also confirmed by most of the sentiment indicators…We’ve seen most of the large investment banks (Goldman, Societe General, UBS, Morgan Stanley)—they’ve all turned to the bearish camp. They act very pro-cyclical (as always), and they raised their targets for the price of gold in 2011. Nowadays they’re in the bearish camp…[so that's] a sign that we’re already in a very mature part of this downtrend.”

With respect to the few bulls left in the precious metals space, Ronald noted that, “If you’re bullish on gold at the moment you’re quite a contrarian, and if you’re bullish on gold mining equities, that’s probably the most contrarian call in the market…and that makes me confident, because from a fundamental point of view—I don’t see any reasons to become bearish on gold.”

As a final word to investors who’ve all but forgotten systemic risks in the face of a rising stock market, Ronald urged listeners to, “Have faith…hope for the best—but [also] prepare for the worst.”

——
This was another powerful interview conducted with one of the world’s rising young stars in the gold market.  It is required listening for serious investors and market students.

To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to to your desktop:

>>Interview with Ronald Stoeferle (MP3)

War Bird

  1. Sorry for being off-topic, but I just had share this :)
    Listen what Max Keiser says next here. Listen to the amount. Should have some dry powder to attack filthy organizations. Too bad the really filthy organizations have the Fed backing them though…

    Would love to see them slaughter every fricking gold/silver shorts out there by standing for delivery on a number of contracts large enough to have the COMEX implode. However, they would have the FED knocking on the door next morning with the CFTC having conducted its shortest investigation in history, in the time it took for a rubber stamp to hit a piece of paper. The press will say it was “another Hunt brothers”, but then anon can join the info war against the fiat money system.

    EDIT: Check out @10:05 too! Gold and silver is the antidote :) the “hitler finds out about gold/silver manipulation failure” youtube clip within the “Crash JPM”-theme was… created by a JPM Employee and JPM fired him by JPM lost in court (in Hong Kong)! http://www.theatlanticwire.com/business/2013/07/heres-jamie-dimon-downfall-parody-cost-bank-186-million/66940/
    EDIT 2: Sorry, the employee was simply passing the video link to a coworker. My bad :( Still a loss for JPM and some publicity for the vid :)

    • It would be interesting to see how those shorts would try to explain that free market forces constitute “force majeure”, their only possible escape hatch.

  2. http://money.cnn.com/2013/07/18/news/economy/detroit-bankruptcy/index.html?hpt=hp_t2

    Detroit files for bankruptcy

    Protestors in Detroit last month objected to plans to cut pension benefits of city workers and retirees.

    NEW YORK (CNNMoney)
    Detroit filed for bankruptcy Thursday afternoon, becoming the nation’s largest public sector bankruptcy. The move could slash pension benefits to city workers and retirees, and leave bond holders with only pennies on the dollar.

    • That’s what happens when you are ignorant and trust in the government to take care or you. Sorry but they were warned 1000 times but would not listen. Now they will wake up and join us.

  3. You cares what gold/silver paper traders are doing?    They don’t take physical off the market, they are nothing.  They will buy paper gold at $1250 oz and sell it at $1450, big deal, they are traders.

  4. I personally don’t give a rats ass what happened in Detroit.  It suffers from exactly what it deserves–greed gone bust.   Now, let those greedy bastards eat dirt!  Yes, there are victims, too.  Lots of them.  But they have a price to pay too, if they don’t take steps to protect themselves.  Most of them relied on Uncle Sugar (Government) to take care of them.  Shame on them!  Too bad!

  5. It’s pretty remarkable that the Detroit bankruptcy is not getting more coverage in the MSM. The stock market is at all-time highs and we just had a very large American city declare bankruptcy. What’s wrong with this picture?? 

    • MSM is “Infotainment”
      I learn more from Deborah Norville on Inside Edition, then those jokesters on the major networks
      DRUDGE REPORT ! ! ! ! ! !
      Steve Quayle
      Jeff Rense
      Infowars
      and John Wells on Coast to Coast

  6. He who controls the “Naked Trade” and High Frequency Trading Programs, controls the price.
    Just because big money is on one side of the table, doesn’t guarantee the direction will always go their way.
    It’s like the shell game. Let the guy win the first few games, then when he thinks he can’t lose and throws down a big bet, BAM, he loses.  They like to sucker you in and take your money in the end.

  7. Yes, all is well in Amerkkka..We have cities filing for bankruptcy and the stock market is at all time highs. Really now?
     
    Reuters
    4:03 p.m. CDT, July 18, 2013

     

    (Reuters) – For decades, sizeable bankruptcies have been rare in the $3.7 trillion municipal bond market, but experts say there might be an uptick as counties, cities and towns wrestle with economic recession and stubbornly rising costs.

    Until Detroit filed its landmark case on Thursday, there had been four Chapter 9 municipal bankruptcy filings so far this year, compared with 12 in all of 2012 and 13 during 2011, according to James Spiotto, partner at Chapman and Cutler LLP. The four this year were special-purpose districts in Oklahoma and Arkansas.

    The great bulk of Chapter 9 filings involve utilities and special districts, Spiotto said. Many cases are blocked by judges. Since 1954, cities, villages and counties accounted for only 61 Chapter 9 filings.

    The highest number of bankruptcy filings occurred in Nebraska, followed by California and Texas.

    Recent and significant Chapter 9 cases include:

    SAN BERNARDINO, CALIFORNIA

    San Bernardino filed for bankruptcy status last August 1, becoming the third city in America’s most populous state during 2012 to use Chapter 9 in a fiscal crisis.

    The city of about 210,000 residents located 65 miles east of Los Angeles said it had more than $1 billion in debts and had tapped out its financial reserves.

    A federal bankruptcy judge has scheduled a hearing for August 28 to determine if the city is eligible for Chapter 9 shelter.

    STOCKTON, CALIFORNIA

    Stockton, a city of 300,000 located east of San Francisco, filed for bankruptcy in June 2012 and was until Detroit’s declaration the biggest U.S. city ever to seek Chapter 9 protection. After years of fiscal mismanagement and a housing market crash, Stockton was unable to pay workers, pensioners and bondholders.

    In April this year, a judge turned aside objections from bondholders trying to scuttle the case and cleared the way for Stockton to move ahead on a debt-adjustment plan, which local officials hope to file in September.

    JEFFERSON COUNTY, ALABAMA

    At $4.2 billion, Jefferson County set the previous record for the biggest U.S. municipal bankruptcy filing in November 2011. The county has since negotiated a tentative settlement with most creditors that still must be approved by a federal judge.

    The county, home to Birmingham, Alabama’s largest city, is weighed down by massive sewer-system debt. After the loss in 2011 of a local jobs tax that severely reduced revenues, the county cut 1,300 staff jobs, pulled back on government services and stopped payments on general obligation debt.

    ORANGE COUNTY, CALIFORNIA

    The county, California’s third-most populous, filed for bankruptcy in December 1994 after rising interest rates savaged investment bets by its treasurer, leaving the county with a loss of $1.7 billion in an investment pool. That put Orange County at risk of a $1 billion default the next year.

    Orange County emerged from bankruptcy after 18 months.

    HARRISBURG, PENNSYLVANIA

    Harrisburg, the state capital of Pennsylvania saddled with incinerator debts, lost a bid for Chapter 9 bankruptcy in 2011 and is now under state receivership.

    With a population of 50,000, Harrisburg is plagued by $320 million of debt incurred by cost overruns from an upgrade of its incinerator. In a bid to ease debts, the city is selling off thousands of Western and other historical artifacts accumulated by a former mayor to stock local museums that were never built.

    VALLEJO, CALIFORNIA

    Vallejo, a former U.S. Navy town near San Francisco, filed for bankruptcy on May 23, 2008, after failing to address steep city personnel costs and sliding revenue from a housing slump.

    In July 2011, the city won court approval for its financial plan to exit bankruptcy protection.

    CENTRAL FALLS, RHODE ISLAND

    The smallest city in the smallest U.S. state filed for bankruptcy on August 1, 2011, after failing to win concessions from public-sector retirees and others to address an $80 million unfunded pension and retiree health benefit liability, which was nearly quadruple its annual budget of $17 million.

    Central Falls last September won court approval of a reorganization plan that cut retiree pensions, raised taxes and left bondholders without losses.

    • Cities?  Big deal.  Just wait until a state declares bankruptcy.  The brown stuff will well and truly hit the fan then.  At the moment, Illinois and California seem in a dead heat for this “honor”.  Which will be be?  Or, maybe some dark-horse will come thundering out of the pack to take the lead!  Whatta race we have here.
       
       

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