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!

 

2013 Silver Eagles As Low As $3.25 Over Spot at SDBullion!

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By Eric Dubin and The Doc

Paper Metals Market Madness: Silver Breaks $26 And Gold Dives Below $1500

 

The big story tonight is the epic raid Friday in the paper metals markets, as over 500 tons of paper gold were dumped on the market triggering sell-stops and capitulation in gold and silver, as gold broke below $1500 to $1485, and silver broke below significant long term support at $26 to as low as $25.72.  

It was truly an epic sell-off, bringing back memories of the May 2011 silver collapse.

 

There was really no follow-through to this morning’s small rally, no conviction buying in the paper markets of any sort.  We breached the low of $26.02 for the entire 2 year correction early this afternoon and with the 50 cent sell off at the end of the access session to close the week at $25.85, there is significant risk of a gap down overnight Sunday and early Monday, with the next major support in the $22 area.   I’d give the odds at least 50/50 of a final gap-down spike low with silver dropping potentially as low as $22 and gold now potentially testing $1400 early next week.

 

That being said, silver was down almost $2, nearly 7%, and gold was down $85 today, nearly 6%, its largest single day decline since the February 29th 2012 Leap Day Massacre when LTRO2 was announced in Europe.  

Gold hasn’t trading in the upper $1400′s since summer of 2011.   Professionals are buying into this weakness, and when you look at the fundamentals with Japan going nuclear on QE just last week, the whole Cyprus bail-in contagion going global: 6% and 7% weakness in gold and silver are being responded to professional with accumulation.  China has also been a massive buyer.

 

That being said, the potential for a capitulation spike low is now very real,  so while today’s weakness must be responded to professionally with accumulation, it might be prudent to save a bit of dry powder for the event of a final capitulation overnight Sunday and into Monday.

Just as was seen in the massive sell-offs in 2008 and May of 2011, premiums are skyrocketing for physical metal (APMEX Buy-back price for 90% is now a whopping $3 OVER SPOT!), and even if the paper price trades down to $22 and $1400 early next week, it wouldn’t surprise us at all to see price for physical metal not dip much below $1600 and $30.

 

We set an all-time sales record today at SDBullion- I think we burned through nearly 10,000 ounces of silver.   Our suppliers wouldn’t even answer the phones.   One of our suppliers informed us they had already sold thousands of ounces of gold and hundreds of thousands of ounces of silver… before noon!

 

The demand for physical is simply enormous, and will result in widening spreads and premiums between paper and physical metal.

 

 

Vampire Squid Must Eat:  The Set-up Before Cyprus Forks Over Goldvampire squid goldman

 

This movie is getting old.  It would be one thing if the Western banksters were actually tossing some scraps around as they rape and pillage future generations — the somewhat hidden outcome of the dumping of debt obligations on nations to “fix” the insolvency the bankers created in the first place.  But these thieves have absolutely no honor.  Policy makers in Washington DC and Western Europe are no better.  Talk about a bought and paid for lot.  If money and perks aren’t enough for these createns, blackmail “control files” serve as backstop.

 

Let’s unpack the latest statements from Goldman Sachs’ alumnus and current European Central Bank head Super Thief Mario Draghi.  Alan — babble them into indifference — Greenspan could learn a thing or two from Mario about lying.

 

Draghi was quoted by Bloomberg, as SilverDoctors reported:

Asked about a letter he wrote to Cyprus President Nicos Anastasiades, Draghi said the letter is “very, very clear.” He said the government must abide by the central bank’s handling of the gold stock, since it is independent from political control under European rules.

“The independence of central banks in the euro area is enshrined in the treaty,” Draghi said. “The ECB will look at developments in Cyprus from this angle.”

Speaking alongside Draghi, Dutch Finance Minister Jeroen Dijsselbloem said selling gold “has always been an option put forward by the Cypriot authorities.”

“But as mentioned in the program documentation, this is a decision to be made independently by the Cypriot central bank,” he said. “And it’s not any demand from the troika or the eurogroup.”

 

The full Bloomberg story is linked within the original SilverDoctors.com article.

 

Any notion that the Cypriot Central Bank having independence from anything is farcical.  If a robber walks into your house and sticks a gun to your head, perhaps Dutch Finance Minister Jeroen Dijsselbloem would arrogantly suggest, “Giving the robber your money has always been an option put forward by other hold-up victims.”

 

We need to go back in time to understand how the game (arguably, a scam) is played:

First, Cypriot banksters make bad loans, for which traditional capitalist system remedies such as placing banks into receivership are not called upon to honestly fix the mess.  Next, the situation becomes a crisis as credit to the Cypriot banking system dries up, a perfectly natural and expected reaction by even rational and non-corrupt bankers who are unwilling to lend further to bad creditors.

Hang in here, dear reader.  It’s about to get interesting.

What does Draghi and his Brussels Brethren do next?  Why, of course, tell the Cypriot government they can turn to the oh-so-independent Cypriot central bank to issue special loans to insolvent Cypriot banks under a program called Emergency Liquidity Assistance (ELA).  That has been going on long before the Cypriot crisis was worldwide news.  The ECB authorizes this direct ELA lending by the Cypriot national bank, which includes more permissive collateral requirements to grease the injection of liquidity — because no real banker not backstopped by taxpayers socializing losses would make such risky loans to already hobbled creditors without permissive collateral requirements!  Result?   A weak and failing Cypriot financial system is turned into a liquidity crack dependent, flat on it’s back and at the total mercy of subsequent demands from the ECB.

 

The end game is now set-up.  Draghi gets to slither around in his calm, technocratic demeanor, claiming that the Cypriot central bank has independence while the ECB and the Brussels Brethren demand that the Cypriot central bank sell its gold to cover the ELA credit issued to supposedly fix the insolvent banking system.  It’s not just gold the banksters are after, by the way.  Cypriot gold is just the icing on the cake.  The bankster bad loan losses above and beyond the value of the gold are entirely socialized on the backs of the citizens of Cyprus, which enables Brussels to exert greater political control over Cyprus, a supposedly sovereign nation.

 

Meanwhile, not one in ten thousand media professionals have the intellectual curiosity to investigate this chain reaction setup.  Even those journalists that do understand usually dare not speak truth to power lest they find themselves facing friction from their employers, who may very well be owned outright by financial sector interests (e.g., Bloomberg, and another fine example, CNBC, and it’s 49% owner, GE, which also happens to own shadow banking system titan GE Capital, etc.).

 

Mainstream Media that isn’t directly owned by the financial sector must deal with other challenges because they either have dependence on financial sector advertising directly, or are simply aligned with general corporate interests.  The average man on the street has no hope of learning the truth without spending considerable time seeking out alternative resources like SilverDoctors.com and the observations of financial market professionals like myself — people that have exited the belly of the beast in disgust and are willing to describe the machinations of that beast’s incessant, criminal appetite because our paychecks are not beholden to the beast.

 

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GATA
Tribute To Bill Murphy, Chris Powell And GATA:  An Open “Letter” From Eric Dubin And SilverDoctors.com

Apparently, cartel actions have become so obvious that an increasing number of money managers feel compelled to speak up.  The latest:  well known money manager and former candidate for US Senate Peter Schiff.  During a CNBC interview, Mr. Schiff has finally declared that gold might be manipulated in service of the Fed:

 

I think goldman wants to knock the price down either because they want to buy more cheaper for themselves, or maybe they’re trying to help out their friends out at the Federal Reserve.  They have a pretty cozy relationship.  The Federal Reserve does not want the price of gold to go up because it invalidates everything that they’re doing.  So, they might be manipulating the market for that reason.”  - Peter Schiff

 

It took you long enough, but Mr. Schiff we welcome you to “planet reality.”  Or, as Bill Murphy would say, “Welcome to planet GATA” (versus “planet Wall Street”).

 

For well over a decade, Bill Murphy, Chris Powell and GATA have tirelessly collected documentation proving the existence of the gold cartel, detailing how and why they act.  Detractors usually focus on Bill Murphy’s tendency towards exasperation in the face of the mainstream media’s general refusal to investigate this ongoing activity.  In truth, Bill Murphy has not been tilting at windmills.  The cartel is real and Murphy’s righteous indignation — combined with a huge dose of Irish tenacity — has served him well as GATA’s leader.

 

Bill Murphy is an American hero in the most classic sense of the term.  GATA is taking up the fight of the underdog, the average citizen unaware how distortions in the capital markets injure the economy and the lives of millions.  Consequences of the cartel’s actions transcend manipulation of precious metals markets.  Consider the Fed and US Treasury’s management of the bond market.  Few media professionals find it odd that management of the bond market and the price of money (interest rates) is open public policy and ok to talk about. But talk about the management of the price of gold, which indirectly has a massive impact on interest rates and confidence required to support the exchange value of the US dollar, is strictly verboten.

 

Truth be told, in order for the Fed’s public policy of control of the bond market to work, fund managers, traders and other market participants MUST know about it.  That’s the jawboning propaganda mechanics behind so-called “financial repression.”  The whole point is to make market actors think, “don’t fight the Fed” while pretending interest rates can stay low, reflating the housing market while banks take part of the liquidity they receive from the Fed in exchange for the crap mortgage back securities banks hold.  The so-called liquidity then flows into the stock market and beyond.  Neat trick.  All the while, the common man and generations after him get stuck with the tax bill to pay off all that added debt while banksters socialize their losses.

 

With scams this large, is it any wonder there’s a propaganda war against truth telling organizations like GATA?  

 

Yes, there have been times when Bill Murphy makes market calls that fail.  All rational analysts, traders and investors understand being wrong from time to time is normal.  Yes, there have been times when Bill Murphy’s righteous indignation has led him to call a given day’s gold trading action cartel-driven when it probably wasn’t (although, the past year has witnessed an unusually high level of cartel activity).  So what?  When it comes to the big picture, GATA’s amassed documentation speaks for itself.  GATA, Chris Powell — and certainly — Bill Murphy have integrity and guts.  Rather than criticizing them, market participants should be opening their checkbooks and writing a tax deductible donation to GATA.  Market participants should also get off their duff and actually read all the documentation freely available at GATA.org.

 

Perhaps Peter Schiff has finally done just that.  Who’s next?  Pretend cartel denier but otherwise brilliant James Grant of Grants Interest Rate Observer?  Heck, it’s my opinion that even the otherwise non-dogmatic Rick Rule hasn’t even bothered to take a week, roll-up his sleeves, and carefully examine the GATA document treasure trove.  How could I make such a seemingly preposterous statement about Eric Sprott’s right hand man?  For starters, Rule makes no secret he’s a bit skeptical about at least the level of manipulation in the precious metals market.  He describes himself as skeptical about the ability for conspiracies and agendas to be able to be hidden for extended periods of time.  During a recent radio interview with Al Korelin, Rule noted how no matter what manipulation efforts he saw during his days in the Vancouver investment community, truth eventually came to light.

 

How quaint.

 

Mr. Rule, the world of Vancouver resource finance amounts to a backwater when compared to the massive geostrategic imperatives necessary to maintain the dollar as the world reserve currency — with all the benefits that accrue to the nation burdened with such an exorbitant privilege.

Don’t get me wrong.  I deeply respect Rick Rule.  His intellect is at genius level, and his abilities as an investor are legendary.  I’m in my mid 40s.  When I grow up I hope to have at least half his wisdom and mastery over as many fields as Mr. Rule.  Nevertheless, someone has got to call him out because resting on assumptions and dogmatic logic about what markets should and should not do just isn’t good enough for someone as good as Mr. Rule.  Mr. Rule didn’t make billions as a slave to normalcy bias, and it’s time he joins GATA’s apparent latest (albeit not credited) convert, Peter Schiff.

An ancient Chinese proverb comes to mind:  “The beginning of wisdom is to call things by their proper names.”

Enough said.

Thank you, Bill Murphy, Chris Powell and all the people that have helped make GATA what it is today.  There will come a day when you are seen for what you are:  true American heros.

Sincerely,

Eric Dubin

Independent buy-side analyst

PS:  Chris Powell runs a free email news alert service at GATA.  To sign-up, click here.  Bill Murphy’s subscription newsletter, MIDAS, offers a 2 week trial.  Sign-up by clicking here.  We highly recommend checking both out.

 

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See you all next week.  Enjoy the weekend and a well deserved break!

 

  1. Well, well, well. APMEX and other mega retailers are offering HUGE premiums to BUY bullion from their customers. How ’bout that, now? So, I ask myself … hell, why don’t they just give a jingle over at COMEX and scoop up a half million ounces of those shorts? Jeez … they’ve got HUNDREDS OF TONS ‘flying out the door’ over there! CHEAP! No, ‘premiums’ nevessary THERE, don’t ya’ know?
     
    Oh, and then, there’s all these Mints in a bind. WEEKS of delays! Why? All their dreams came true this week! They MUST be in ‘seventh heaven’, the whole lot of them! COMEX is Ol’ Santa Claus with a big overflowing bag of silver for all those ‘poor little starving’ Mints.
     
    Alright, alright. I’m done with the stupid fairytales. Maybe the COMEX will follow suit with theirs. Somehow, I think … not. Their grim tale will go on ’till they drop over in a final gasp.

    PS: “Giving the robber your money has always been an option put forward by other hold-up victims”, got intermittent rolling chuckles out of me for a good two or three minutes!

    • “All their dreams came true this week! They MUST be in ‘seventh heaven’, the whole lot of them!”
       
      Well, I do hope that they enjoy the scenery there, however temporary it will turn out to be, because these scum bags are destined for the 9th level of Hell, along with all the other betrayers of trust.

      “Somehow, I think … not. Their grim tale will go on ’till they drop over in a final gasp.”

      I just hope that I am there to deliver a gigantic kick to their nuts during this time so that, as they are gasping their last, I can laugh and say “Payback really is a bitch, isn’t it, Bitchez?! lol

    • @Ed_B
       
      If there really WAS a dump of physical silver on the COMEX (and/OR gold) the Mints WOULD be in ‘seventh heaven’, given the ramp up of demand cascading over them, to say nothing of the thousands of tiny to big retailers they serve.
       
      Having figured out that the banknote scheme is irreversibly doomed and how much circumstantial evidence is proving this to be within a whisker of blowing wide open … at this point, I’m already ‘laughing my ass off’. Ed, you WILL be vindicated and your patient travail hasn’t long to endure.

    • @PatFields:  I don’t think we can make the assumption the US Mint would be in “seventh heaven.”  The US Mint has already proven itself to be worthy of suspicion given that they have moved inventory sales reports from one period to the next in order to massage the big picture order rates.  For example, they did this last December, pushing orders into January.  I cite this dynamic because it’s more clear as to what’s going on, unlike the situation with shortages of blanks, which the Mint can blame a third party for the problem — Sunshine Mint’s capacity issues.

      Besides, the US Mint is basically controlled by the Treasury — never mind what it says in the Constitution.  Circumstantial evidence suggests the mint manages it’s orders to have less of an upside impact to precious metals prices.

    • Holy Cow! It seems TOO much of my commentary is too serious!
       
      I can’t make a tongue-in cheek joke … labeling it a fairy take, no less … without being taken to task for its intended absurdities. 
       
      C’mon guys! I have an intermitant NEED to express a little wry humor once in a while. At LEAST play along, even if I ‘flop the skit’, at least I’m trying to add variety. Hell, they can’t ALL be obtuse … can they? Am I all alone here?

    • “If there really WAS a dump of physical silver on the COMEX (and/OR gold) the Mints WOULD be in ‘seventh heaven’, given the ramp up of demand cascading over them, to say nothing of the thousands of tiny to big retailers they serve.”
       
      Agreed.  But what about the requirement of the law concerning ASEs and AGEs?  Is the mint not required to mint as many of these coins as the public demands?  It does not look to me like they are doing that.  So… what is their punishment for disobeying THE LAW?  Probably nothing but it is an interesting facet for discussion.
       
       “…at this point, I’m already ‘laughing my ass off’. Ed, you WILL be vindicated and your patient travail hasn’t long to endure.”
       
      I am but one of many, Pat, but do believe that you are right about all this.  Hopefully, we will ALL be vindicated at some point and that vindication will not prove to be much worse for all of us than we now believe.
       
      “Holy Cow! It seems TOO much of my commentary is too serious!”
       
      Your rep precedes you, Pat.  Most on here consider you one serious fellow, so we ARE taking your comments seriously.  :-)
       
      “I can’t make a tongue-in cheek joke … labeling it a fairy take, no less … without being taken to task for its intended absurdities.”
       
      Yes, I noted the “fairy tale” label and considered that your comment was not to be taken too seriously… this time.  ;-)
       
      “C’mon guys! I have an intermitant NEED to express a little wry humor once in a while.”
       
      Indeed so, Pat… as do we all.
       
      “At LEAST play along, even if I ‘flop the skit’, at least I’m trying to add variety.”
       
      Sounds good, Pat.  I am all for that.  But it needs to be CLEAR.  :-D
       
      “Am I all alone here?”
       
      Men and women of good conscience are never alone, for they have many like-minded fellows and sisters for company.  :-)
       

  2. People need to keep in mind currency wars and how they will escalate. People keep thinking of the Japanese devaluation as though it is only a game changer for the yen. We have consistently seen that an acceleration of debasement of one currency has been closely followed by another central bank and so on and so forth. This rapid yen devaluation is having a very significant negative impact on US and European exports. The huge Japanese QE is going to force the ECB and fed to act in the form of more monetary stimulus. In fact, this coordinated paper attack may be largely for this reason. I believe an ECB rate cut is imminent, and the fed will be close behind, with probably at least a modest increase in QE. This may also partially explain why the US stock market has remained so robust despite a steep fall-off of the macro data, and stagnant earnings. The market is supposed to price in future expectations, 3-6 months out. Is the market finally expecting much higher inflation? 
    In any event, I do expect the fundamentals for precious metals to get even better in the very near future. There will be retaliatory devaluations–the ECB and fed don’t have a choice.

    • “The market is supposed to price in future expectations, 3-6 months out. Is the market finally expecting much higher inflation? ”
       
      I don’t know why they would not be expecting this since the price of stocks is CLEARLY inflated.  There is no way in hell that any economic data out there can justify all time high stock prices with such mediocre corporate performance.  But Uncle Ben and his $85B of free money a month explains it in words of 1 syllable that even a banker can understand.

    • @silversavings:  Totally agree…  The currency war dimension to what’s going on must be understood for any hope of understanding the big picture.  We talked about this on the show a bit last week, actually.  It’s a subject that needs more discussion and I’ll be writing about it going forward.
       
      You’re right about the rotational nature of the “war” too — although to some extent, it’s less of a war and more of coordinated war game when it comes to at least the interrelationships between the ECB, BOJ and the Fed.  Heck, the BOJ has been the Fed’s partner through many previous episodes of financial coordination.  In the 1980s and 1990s, Japanese purchases of US debt to recycle trade deficit dollar flow formed a great deal of the mortar cementing the two nation’s geostrategic alliance.  It wouldn’t surprise me at all to see Japan starting to buy more US debt now that Japan is in “printing” mode on steroids.  What’s a few extra hundred billion yen among
      friends?  :-)  The US Treasury is in deep sh*t when it comes to a lack of sufficient long duration bond market demand and I expect to see Japan taking down more US debt in the months ahead.

      Outright currency war is alive and well between the West and the BRICS,

      Thanks for the insightful comment.

      Eric Dubin

    • “Outright currency war is alive and well between the West and the BRICS,”
       
      Indeed it is… Western sling-shots vs. BRICS disintegrater weapons and force-fields.  X-p
       

    • @W.T.T.:  Astonishing, indeed.  And really, the bottom-line is that last Monday and Tuesday we were setting up to totally repair the damage of the previous weeks attacks, with a return of over $1600 gold and a testing of the critical $1620 level, and with $28 silver and higher in the cards.  The miners were also doing well.  The cartel wanted none of that, especially with the risk of gold triggering a short covering rally upon leaping over $1620.  We came within one trading day of that happening and THAT is why I think they started the coordinated attack on Wed., with the Cyprus gold grab/Goldman call/Fed Leak dog and pony show. 
       
      One of the more ironic things about the cartel’s trashing of the sector is how that translates into extending the duration of the sector’s bull market run.  As mine supply growth slows, it supports higher future prices at the margin.  But what do they care?  The “extend and pretend” fiesta is all about buying time in the hopes that something can be worked out in the long-run vis-a-vis financial sector insolvency and the problems with the exchange value of the US dollar.
       

  3. Unfortunately, I don’t think there will be a massive rally in PMs anytime soon.  We’ll probably see a continued downward and sideways trend for awhile.  Whether the mainstream media is reporting the facts or not, as long as people believe the economy is improving and inflation unlikely, they are not going to put their money in PMs.   PMs are strictly a hedge bet for most investors.  And right now they don’t see a reason to hedge their bets.  We see the stock market at all time highs and a strong US dollar.  Do you really think that the “gurus” that we often see on these sites are really smarter than everyone else?  Remember, most of them have their own agenda.  I see too many people in the past year that have talked about how they have gone “all-in” on PMs.  There was one article a little while back about one of the “gurus” mortagaging or selling his house to buy silver.  That’s ridiculous.  And for those who say that the “value” of PMs and the price that they are bought don’t matter, I say lucky you.  Unfortunately, it matters to me at what price I buy PMs.  I’d like to buy at a lower price so that I have more.  I’m one of those unfortunate souls who need fiat to pay bills and support my family.  Don’t you have to ask yourself why people, hedge funds, countries, etc. with real money haven’t bought PMs at huge volumes by now?  Is it because they aren’t lucky enough to come to sites like this to gain knowledge?  That was a joke.   I remember for months all the “gurus” saying how we should Buy, Buy, Buy when silver was at 35, then 32, then 30 and then below 30.  How is it that gold and silver has fallen down to present levels?  None of us know what the future holds.  Don’t put all your eggs in one basket.  Of course, this is just one small stacker’s opinion.

    • Judging from your tone and lack of conviction and failure to understand what is going on in the gold and silver sector, you should sell and quit wasting your time here.
      BTW, Tulving getting cleaned out of his silver inventory. His bullion page was down earlier this morning and now 17 products are completely SOLD OUT.

    • Bay of Pigs… you’re almost right about being a waste of time here.  Some of the headlines the past couple of months have been beyond ridiculous.  The hyperbole, if consolidated would make one hell of a funny read.  As far as lack of conviction….well, when you’re talking about what the “gurus” have been spewing the past couple of months, you’re right again.  As far as “failure to understand what is going on in the gold and silver sector”, I think my posts will show that my common sense approach works pretty well.

    • Holding physical gold and silver is insurance and a store of value against the madness of endless fiat creation (currency debasement). Common sense is to buy on weakness and accumulate over time. I suppose buying farmland and a productive bussiness is also a good idea. Good luck to you whatever you decide to do.  

    • No guru has all the answers.  Over the years I thought several times I had found one guy who knew it all, but they all ended up having feet of clay.  The one hope for us ordinary investors is to follow long term secular trends . . . . Sinclari is a trader and feels in his bones that the bear trap is almost over.

    • You are right in that the illusion being perpetrated by the puppet masters is the dollar is healthy, inflation is in check, unemployment is 7.6%, etc.. Of course, we really are in a ponzi of massive proportions. Life would be good if you make 10k a month, but this not where most Americans are when working for a company or a government. You can get a few investors, each with a 100k, get a bank loan, and you work hard to create a business. You can start one yourself if you like. Cash start up and good credit, well, you really have to impress the lenders for lines of credit. Takes brains, literacy, skills, and the morality to succeed without selling your soul. Catch a felony conviction and you become third world man without a country in America. But the reality is, you have to find out why our lives have a purpose. There is a purpose; buying and trading trinkets is perhaps one aspect. Personally, I like to read. I have learned much from reading.  I do not believe in everything I read.  I am in no way associated or have any time, treasure or talent invested with SD Bullion, though I suspect more than a few regulars on here do. I do give back what I take….and live and let live. I listened to Ann Barnhardt…we share the same belief.
       
       

    • Stacksmack3000:  There’s one really important element you need to add to your thinking and that pertains to what happens with all these short positions taken out to created the manufactured reality we’re now looking at.  April is a large delivery month for Gold on the COMEX.  Even with naked short selling there’s an eventual need to close positions because we sure as heck are not going to be seeing delivering into those short positions!  What that means, in turn, is that after what will probably be only a couple of days to a week of more downside, we’re going to start to reverse and move higher.  It wouldn’t take much to get silver back to $28, for example, even with a decline to $24 on Monday/Tuesday.  From that point forward, it would be likely to see some “stickiness” in the $28 to $29.20 area for a time of consolidation and then, eventually, with another few weeks a testing of $32 and then, yet more “stickiness” and resistance as the overhead resistance of sellers that had bought at higher prices pressure paper prices at the margin for a while.

      As far as pundits, analysts and forecasters are concerned, just be careful not to paint with too broad of brush strokes.  There’s a big difference between people that make forecasts and frame that effort in terms of probabilities given the best info and thinking possible yet all the while remaining humble enough to know being wrong from time to time is normal and part of the process, and that with that in mind the analyst/pundit/forecaster is just as responsible for teaching his or her audience that her or she is NOT infallible.   Anytime I get pigheaded, if the market doesn’t happen to slap me upside the head, I welcome any of you to do it. 
       
      Thanks for the great comment,

      Eric Dubin

  4. Wombat…I would sure like to engage Rick Rule in an of-the-record discussion about what he really thinks re the banking cartel, market interventions, naked shorting, and gold/silver price suppression.  He always sounds as if he is tempering his comments that are made for public consumption.   What do you think?

    • @UglyDog:  There’s probably some of that tempering going on.  But when considering his worldview as a deeply solidified libertarian, he does have a certain level of ideological faith in the power of free markets and “things” outing themselves over time.

      Obviously, I don’t share that perspective.  I’ve seen far too many conspiracies and coordinated agendas successfully suppressed from common public awareness to suffer any such “faith.”  Heck, now, with the over-worked and over-distracted American public, even intelligent and well informed people act like zombies in the face of open coordinated manipulation and its deleterious effects to their interests.

      Case in point:  this whole banking sector bailout.  Yes, OK, few people have the economics and finance background to truly see the entire big picture, but the insanity of our exploding debt is well understood at even an intuitive level.  But if you walk down the street of any city in America, I would be shocked if you found more than 2 in every 100 people aware that the Fed has been buying about half of our bond issuance in the last few years in order to sustain what amounts to a coordinated agenda to steal wealth from the future (debt = delayed taxation or eventual inflation debasement designed to eat away at debt) in order to socialize the losses of rogue financial institutions.  It’s theft.  It’s an open conspiratorial agenda, and even though it’s not being hidden, most people STILL can’t see the damn thing for what it is.

      That sucks.

      It will likely only change once enough people have been hurt, and they slow down from their distracted lives, get angry and start asking questions.  That day is coming.  A certain three letter agency that starts with the letter “D” also knows that day is coming and that’s why they have taken out the hedge of a large amount of lead. ;-)

      Thanks for the great comments, as always,

      Eric

  5. Gold & Silver on Verge of Capitulation to $1400 & $22
    ——————————————————–
    Correction:
    PAPER Gold & Silver…..to $1,400 & $22
     
    You’re welcome.
    Mammoth

  6. Remember what they said February 2013:
    “Soros Fund Management LLC reduced its investment in the SPDR Gold Trust, the biggest fund backed by the metal, by 55 percent to 600,000 shares as of Dec. 31 from three months earlier, a U.S. Securities and Exchange Commission filing showed yesterday. Bacon’s Moore Capital Management LP sold its entire stake in the SPDR fund and lowered holdings in the Sprott Physical Gold Trust. Paulson & Co., the largest investor in SPDR, kept its stake at 21.8 million shares.
    Lone Pine Capital LLC, the hedge fund run by Stephen Mandel Jr., and Scout Capital Management LLC sold their entire stakes in the SPDR Gold Trust in the quarter, filings showed.
    Hedge funds have cut bets on a gold rally by 56 percent since reaching a 13-month high in October as manufacturing rebounded from the U.S. to China. It’s increasingly probable that prices peaked in 2011 and so-called downside risks are building as the world expands, Tom Kendall, an analyst at Credit Suisse Group AG in London, said in a report e-mailed Feb. 1. Futures rallied to $1,923.70 on Sept. 6, 2011.
    Money managers who oversee more than $100 million in equities must file a Form 13F with the SEC within 45 days of each quarter’s end to show their U.S.-listed stocks, options and convertible bonds. The filings don’t show non-U.S. securities or how much cash the firms hold.”

    http://www.bloomberg.com/news/2013-02-14/billionaires-soros-bacon-reduce-gold-holdings-as-prices-slump.html

     

    http://www.sec.gov/answers/form13f.htm

  7. Hope these gurus know what they are talking about. Anything can happen to pms years from now but most readers were counting on a nice bounce to have occurred already. I have been reading these blogs for 2 years and so far, the short term predictions have not materialized. Sinclair had the inside scoop years ago but seems to have lost his magical timing. Guess everyone can make mistakes but he among others needs to come out and say that they honestly don’t have a clue as to when pms will break out.

    • @Bradford: For me I think it is time for all these folks to say I “THINK” this or I “think” that. But in a corrupt unpoliced market it doesn’t matter what I think. But this is my guess. I’m guessing about what a smart crook does next. Why not say it. Most of us have already realized it whether or not the “in the know” crowd knows we know it or not. Assume we’re smart enough to know or we wouldn’tbe swapping words. SinClair and the rest want to keep our spirits i guess. Forget about it. We don’t need a cheer leader. We need info and we can then buck ourselves up.

  8. I have read a lot on the smack-down these last couple of weeks…my conclusion is that all of this is so mad and so irrational that if you somehow did make any sense out of this you yourself would have to be a madman…coz only madman can understand actions of an another madman. Ok…now let me try to be a madman for a while and make my best guess. TPTB want to keep confidence in their game, especially the dollar. With the last 2-3 weeks everything was standing on very thin ice. So this is what I think…soon QE is going to be increased. If I am wrong than I can make NOOOOO sense what so ever about what has happened in the metals these last weeks…and if it really turns out that I was wrong than at least I will know that I am not mad. :-)

    • < I can make NOOOOO sense what so ever about what has happened in the metals these last weeks>
      I’m confounded myself… but more by the attitudes here. Why would any of you expect the paper price of the metals to go up? I can find no reason. It should go to zero. But I expect they will halt it before then (could be for longer than you anticipate)… and this should coincide with scarcity of physical – which WILL happen. They took decades building these paper metal markets for just such an occasion. It only means the end is closer. This $SPOG is going to have less and less to do with reality of a physical price. Consider that you are buying physical Gold at the greatest discount in all of history. The dislocation the paper intervention is causing will bankrupt many small-mid miners. They are the losers here. I’m celebrating myself… either 1) Asian Markets will boost it and will we see an uptick – then 2 months or so another severe drop-off OR 2) the paper price will crash further – in that case have the champagne on ice! My guess is that this will continue despite your collective fist-shaking at banksters.

    • “The dislocation the paper intervention is causing will bankrupt many small-mid miners. They are the losers here.”
       
      If so, then we can expect the Chinese to be in there buying mining companies for pennies on the dollar.  My only question is, “Will they be laughing hysterically while they are doing it?”.  :-/
       

    • @Ed_B
      If the revaluation of Gold was a ‘plan’ set in place many years ago, then how would they do it? 2 major issues to the ‘plan’ would be not causing a panic out of USD into AU (they achieve this with the giant paper market and creating the scarcity on the down side) but the second would be how to treat the miners. These must be nationalized as they can’t give private enterprise the keys to the new printing press. Once a large percentage are crushed – then there are fewer to militarily control. I expect after this the miners will welcome the stability. I agree with ‘Another‘ from 15 years ago, Rob Kirby 2005, Jim Willie 2008 – there is no reason to gamble on the miners.
      Referencing both the mining sector as an investment and the worry of confiscation is F.O.A. from the GoldUSA Forums back in 1999:

      The most important aspect of gold as financial disaster insurance is that it is immune from default. The second point, particularly important for the gold mining investor, is that in financial crisis, desperate governments are prone to disregard the property rights of large holders of industrial assets. The most captive form of industrial asset are the mines and the oil wells. The most attractive asset for taxation and expropriation in time of crisis is a gold mine. Very large hoards of precious metals may prove attractive to a government seeking survival. The small hoards (You and I) remaining in the West are not attractive (enough) targets.

      More from F.O.A. in 1999:

      “I also accept that most “physical gold” savers will find themselves “many steps” ahead of the “Western trading community” as this plays out. This “long term gold accumulation” proposition was given some time ago, to induce conservative people to begin saving gold “now”. At any dollar price, be it $600 or $10! Such direction was given in the face of unprecedented choices from where someone could make fortunes using our modern vehicles. Yet, through it all, the revaluation must come as gold will return as money to represent all of this wealth many times over. For truly, all modern wealth will be directly or indirectly denominated in gold as our dollar reserve fails. To this end, the physical gold holder will stand “one step in wealth” ahead of every worldly paper trader. Weather they trade paper gold stocks or DOW stocks, real estate deeds or CDs, in the end their paper winnings will compete with the spoils of all others of “Western thought”. These “non physical owners” will seek to buy what gold they can at a price many will refuse to understand. If one made a million by paper investing, he will buy no more than a million in gold. Still, for every new buyer that wishes to escape the old paper world there will be the lowly physical buyer from the past who will already possess two million in gold.
       
      You see, there is a world of difference between saving real money as a “wealth of ages” and trying to trade this world’s “paper derivatives”. The lasting wealth of physical gold does not have to be “converted” into real things prior to a currencies destruction. It already represents the new holding everyone will want. The coming “Western” economic dislocation will devastate all forms of assets that are held in “contract ownership”. Be they stocks (most gold stocks included), bonds, businesses or savings accounts, etc.; the loss of a major currency will consume most of the equity these paper items represent. It has happened with every currency ever created and will happen again with our dollars.”

       

    • The substance of my comment was that if there is value in the miners, China will be buying them with some of their massive foreign currency reserves.  That is all I meant by that and nothing about any “plan” or nationalization.

  9. APMEX is selling 90% junk silver at $5 over spot on their best of deals when you buy in large quantities.  Yeah, sure they have some junk silver still in stock… but they sure are not willing to part with it until its over $30/oz.
    When 90% junk is selling for more than the beautiful bullion available from the RCM or US Mint, you know something is seriously backward right now.  The US mint has been selling out of silver each week.  Tulving hasn’t been able to source ASEs and APMEX only has a few sealed boxes listed right now, so I’ve got to wonder about how prices can be getting hammered when investors are buying up everything that hits the market.
    When demand is so strong that large physical market makers like Tulving and APMEX are buying junk at significantly above the current quoted spot price, you know demand exists!  Keep buying and have patience my friends.

  10. well… im guessing vindication will be mine after having said that we will see very big lows in silver after the major run up we had two years ago.. All your people bashed me and called me a troll when i was giving my objective opinion. You just wanted to hear cheerleading by the likes of morris hubbart, thompson, willie, etc corp.. that the move is right around the corner… I hope you guys realize that the next major run up that takes silver to 200+ you sell your positions and not listen to these talking gurus who only make money from subscriptions and not trades. 
     
    Peace. go silver! 

    • @ILUVPMs:  I’d be more than happy to pat you on the back for a good call IF you were willing to admit that what I wrote in response to W.T.T. above (first paragraph) is true.  We were already repairing the damage of previous weeks and moving higher and there was absolutely no reason for us to not move higher after having already tested $26/silver five times and with truly outstanding fundamental drivers all over the frick’n place.  It was only the non-market force of coordinated intervention that created the conditions for your call of low $20s/silver to be possible and we’re not even there yet and you’re already gloating.

      Look, I understand how this whole thing gets to be a bit circular in logic.  Many of the critics of the precious metals space delight in pointing out that anytime prices dive, so-called gold (and silver) bugs have the convenient excuse of blaming it all on manipulation.  But what happens, as is the case this past week, when in reality, manipulation truly was the ONLY reason why prices dived.  Heck, even in Japan, gold in Yen terms was at an all time high following the BOJ monster QE announcement.  Japan is out to double their monetary base in a couple of years and gold was moving up as a rational response.  Now, all of the sudden, gold’s gain for the year in Yen terms has basically evaporated.  That’s not the product of market forces.  It’s manipulation.  Japan didn’t reverse their QE launch!  You couldn’t even argue that it was a consolidation after the rise the week before because it didn’t do a consolidation, it did an outright reversal.  Why?  Nothing changed regarding Japan’s QE program.  

       “The beginning of wisdom is to call things by their proper names.” –  Chinese proverb

      In my humble opinion, the push-back that you experience here from time to time has everything to do with you being a bit more cocky than I think you perceive.  Take that for whatever it’s worth.

  11. I bought in the mid 40′s 2 years ago and have watched prediction after prediction come and go and none have been correct which tells me that no one has a clue whats going on. They way things are going it seems very unlikely that Silver will ever be over $50 again, its so rigged, unfair even, how many years i wonder will it be before this happens if it ever does. David Morgan said he thinks 10 years! Sinclair said we will soon see the end of $1600, maybe he meant on the upside, cause hes right were now in the 1400′s. Its a rigged game, the gurus are full of shit, my 5 year old son could make predictions just as well as these guys. I’d like one of them to come out and say i have no idea instead of waffle on”when this happens gold/silver will skyrocket” pffffft over it!!!!!

    • I was at the toronto conference to see sinclair.. and it was a total waste of time.. there were people praising him and saying thanks for your work… one man got up and asked about the juniors, you could smell his fear from the back of the hall…. his voice was quivering and sinclair told him just hang in there there is nothing you can do… really, this was the same man who told people to buy juniors as they would be on fire when we cross 1600 two years ago… 
       
           He also said that, gold bottomed 110%… there was on thursday before the drop. 
           He also said that we will have a new currency by 2020 because he knows the whos who of the banking world and they all talk with him.. what a load of shit. 
          If we are having a new currency in 2020.. that means we cant be at a 1979 gold parabolic junction as he stated on his site. 
          I left at the mid way point.. it was too much bullshit to listen to . 
       

    • there is nothing you can do.. you just need to hang in there .. once this washout is over silver is going to 200+ in a few years.. you just need to hand in there! Also, stop listening to the people on this thread that keep telling you to buy the fucking dip every 20 cents… 
       The doc was preaching that shit, from stewart thompson, and i had to warn them that this is going to be one long f-ing dip.. no one believed me. We just broke 1531 which means gold is STILL in a d wave decline.. which means we have more pain, before the resumptionm.. dont be surprised at 1300 or 1250 gold. 
       

    • Well, this isn’t bullshit. People are buying this takedown with both hands. Maybe quit bitching and just add to your stack (cost averaging)?
      “We will see instant shortages of silver products such as silver rounds, 10 ounce bars, 100 ounce bars, silver eagles, and silver maple leafs if this relentless demand continues. Silver eagles and silver maple leafs are already seeing delayed delivery.
      In other words, the mints can’t keep up with the demand for those coins. The US Mint could easily have another record year of 40+ million ounces of American Silver Eagle sales. I would also add that there are already premiums on 90% silver coins that we haven’t seen in decades.
      But the buying is coming in huge for both gold and silver. The physical gold market is on fire as well. Our largest 7-figure order this week was specifically for one ounce gold bars. There was also big buying of American Gold Eagles. This massive buying is taking place in the entire metals industry right now.”
      http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/13_Haynes_-_Were_On_The_Verge_Of_Major_Gold_%26_Silver_Shortages.html

  12. For all those non believers out there in silver world, go and try and get some silver or gold at 5% over spot? what’s that? they told you to go F%^K yourself?
     
    I’m in the UK, most of the Bullion houses have shut shop until further notice. Its extreme. Will phone up some refiners on Monday, see if I can get some silver in heftier format.

    • @WaitingForSilver
      Guernsey Mint might be a good place for us in UK/Europe. Maybe even the USA Stackers?
      Waiting for tonights open to get some more Gold Bars as delivery is free. Currently £1005 per Oz.
      The 1 Kg Silver Bars are at £581 but often get caught for +20% VAT on delivery and there is postage to pay on top.
      I bought 25 Silver Brittannias 3 months ago from Guernsey Mint and the package arrived with a VAT bill attached but the postman is a friend of mine and he signed for the package and I have not had to pay the VAT saving me £200?!!?!
      All the Best
       
       

    • @TaMark 
       
      I go direct to the refiners, I am a fully licensed dealer. But I always check out my competition.

      Yeah I tried Guernsey mint once, nice chaps, although their delivery is very slow, I ordered some 100 gram bars from them. I got caught by customs. Had to pay VAT AND handling fees to Royal Mail.

      After this incident I started dealing with the refiners direct, I get better prices than the VAT Exempt Guernsey Mint. I do like the guys over in Guernsey mind, makes me feel like a Victor Hugo Pirate! :)

      Another option if you don’t run as a Business (you need to be in the trade to deal with refiners, lots of hoops and paperwork!) is take a drive to Germany, they only have 5% Vat, then drive it back to the UK or Fly it back, depending on how much you got. I once tried this, got stopped by Customs, I showed them I was an EU citizen with my UK Passport, gave them the Invoice, that showed I had paid Germany 5% and they let me on my way. They didn’t like it mind, but I am an EU citizen, I can buy where I like.

  13. The first time ever my LCS is out of bullion:
    “We are SOLD OUT of: 1oz Gold Bars, 1oz Gold Coins and 1oz Silver Maple Leafs. We hope to receive more on Moday, sorry for the inconvenience”
    I bought all of their Canadian Nature series silver coins and heard that they only had a total of ten 1oz gold coins left.

  14. The drop in metals, all about Cyprus. If they do sell, its going to be big, if it did happen it would cause major problems on the leveraged markets. Hence the capitulation on Friday. Period. Its all good, it has shaken the weak hands, its all gravy here on in, the leveraged market won’t touch metals in fear, leaves the buyers to the longs. There will be blood on the dance floor though, many people who have gone all in too early will have lost money, but there is money on the buy back on the way up. 

    • @WaitingForSilver: As we discussed in this week’s show, when you look at how much off-take of physical China alone is taking through this crash, it’s vastly larger than what Cyprus will sell in the future (not even this week, such that it would be impossible to claim the down draft was caused directly by direct Cyprus sales because the sales haven’t even happened yet!).

      With all do respect, I have to say the data doesn’t support your claim. From a psychology point of view, the threat of the sale is used to scare real holders to liquidate their positions. That’s certainly true and you can make that case (and that is sort of implied by some of what you’re saying). But the PRIMARY force behind the moves between Wed. and Friday was outright short selling by bullion banks serving the interests of Western central banks. It’s actually not that common that we have weeks like what we just experienced, where what happened truly is crystal clear. The size of the contract sales in question, combined with the setting of a market already healing itself and against a backdrop of outrageously bullish fundamental conditions AND a successful bounce test off $26 support points directly to the primary cause — government sponsored manipulation.

    • All due respect, but you do know how heavily leveraged some of these big boys are playing at, even the smallest macro change would call a sell, their losses would be huge.

    • This brings up a good point or rather an important lesson. Real ‘big boys’ (let’s call them ‘Giants’) don’t leverage in Gold – Gold IS their savings vehicle (the only thing that maintains its SoV – store of value). Why would they ‘trade’ Gold – for paper? LOL They know that Gold does not change value – the paper around it does. Paulson is right in one sense but misses this and will lose out as a trader as the paper Gold value declines. Hold all your savings in physical Gold – and only enough cash in the bank to pay your bills. Don’t think in terms of paper value or paper $SPog… but in ounces. You’ll end up so much further ahead once the dust settles. The winds are picking up – but they will eventually subside. Timing this – as a trader tends to attempt – is a death sentence.

    • I leave you with my favorite F.O.A. quote – reminding me of Kipling’s “If…”  

      Take the most able years of your broad middle-age to expand your skills and knowledge and to produce something the world wants or needs. Sell your time, energy, and capability to the highest acceptable bidder. Throughout your life strive to improve your special talents or capabilities, and strive to make your field of passion also your field of employment. Your only obligation is to prepare yourself for your feeble years by producing an excess during your productive years, and living with discipline so that you will have adequate savings to draw upon until the day that your spirit flees your body for a more suitable residence.
      Part of the discipline that assists you with your obligation to yourself is the wisdom not to be duped into selling your productivity for less than what it’s worth or for false promises, and don’t squander your meaningful and important savings by chasing uncertain rewards for undue risk.
      Truly, what is a dollar but an empty promise? A promise that springs into existence as easily as a loan contract. A promise that the borrower will one day give that dollar back, and a promise that the issuer will at any given time exchange such a dollar for nothing more than another dollar. If you are willing to sell your valuable productivity for payment in dollars (or any other fiat currency,) the quality of your discipline must either be called into question, or else you have satisfactorily called the currency into question and found it to be one in which borrowers cannot ever be allowed to default and, more importantly, the supply can’t be issued (expanded) to such high levels and at a rate such that the purchasing power is eroded, or be capable of contracting such that businesses and the economy fall into a recession or depression. A careful review of fiat currencies and fractional-reserve lending practices will reveal that no fiat currency can suitably pass muster.
      So there you have it. When you strive to master the all-important art of timing your investments, the most crucial time is every payday in which you are, in truth, selling yourself–selling your own time, labor, and productivity. Are you being paid-in-full on each payday, or are you accepting an empty paper promise of payment built upon the strength of and the continuation of the confidence of everyone in society. Are you worth payment-in-full? Have you ever received an ounce of honest money for a day in your life? You can perfect your investment timing by being paid in Gold–you would be paid-in-full at the very moment that you sold your productivity. But in an acknowledgement of the currency structure of the present realm, for your own convenience, take your dollar paycheck and first use it to pay your various bills to all of the others who have been duped into accepting dollars for the sale of their own products and services. Anything left over represents your excess production, and is almost suitable for saving. Since your employer probably paid you originally in dollars, it is up to your own discipline to convert this excess into Gold to effect your own immediate payment-in-full.
      Held as Gold, your excess production has now become suitable for saving until the day arrives that your feeble old age forces you to become a net spender instead of a net saver. The timing couldn’t be any easier or more evident!

    • You don’t get it do you. The big boys keep their money in stocks, shares and Fiat, only touching Gold through instruments. These instruments by their very nature are highly leveraged. Going Short is a leveraged market, how else do you think the people who lend their gold out get paid? You think that they lend on a percentage basis? or a leveraged one?
       
      The big boys have announced to all their customers to sell on the back of Cyprus gold flooding the market through a “leaked” document, supposedly giving their customers a competitive advantage. So their customers sold on the advice. This would settle all outstanding settlements on leveraged debt as well as Asset to Fiat ratios. It would also help pay off some of the shorts, not all of the shorts mind that are being run off books. 
       
      The only people who actually deal in Physical Bullion are dealers, refiners, manufacturers and Central banks. All Financial instruments are paper based and highly leveraged through either straight leveraged terms of trade, or through exotic instruments.
       
      The old days of the City dealing in physical to settle paper markets of profit went out in the Victorian times. Even Rotheschild don’t touch the hard stuff any more, but I will add that the only physical market out there playing the game that I have seen with storage facilities are BullionVault.com

    • @WaitingForSilver
      I think you should define what you mean by ‘Big Boys’, hence I used the term ‘Giants’. Wealth shift to what is more lucrative but I’m sure your eyes would fall out of your head if you saw the Rothchild’s Bullion Bank vault. These entities who have generational wealth own hard assets 1/3 land, 1/3 fine art and 1/3 gold…. and ALWAYS have.

      <Even Rotheschild don’t touch the hard stuff any more, >

      I suggest, Sir, that you have been misled. Who do you think the shareholders are of the Central Banks??? and who owns much of the shiny metal? BTW, you may wish to speculate on why CBs don’t  own Silver…. and you are ‘waiting’ for it. You may have a long wait.

    • @DVDBeaver:

      @WaitingForSilver:   DVDBeaver is right on this point.  At the apex of the oligarchy, they own a considerable amount of physical gold.  WaitingForSilver:  Back in 2004 the Rotheschilds exited the trading of gold and the establishment of the London Fix prices.  I have a hunch that’s what you’re thinking about.  That has nothing to do with what the Rotheschilds own.  In fact, many (as do I) believe they exited the paper fixing game because they didn’t want to be associated with it when and if the entire paper system crashes.

  15. ““But as mentioned in the program documentation, this is a decision to be made independently by the Cypriot central bank,” he said. “And it’s not any demand from the troika or the eurogroup.””
     
    Don’t know about anyone else but this pegged my BS detector.  This is becoming a common occurrence whenever one of the EU pols makes a public statement.
     
    Earth to Cyprus!  Earth to Cyprus!  Come in Cyprus!  We have a message for you.  You NEED your gold a crapload more than you need the EU!  DO NOT SELL!!!
     

  16. Government sponsored manipulation will see Gold back under $1000/ounce and Silver at $8-10/ounce and when they get there they will do EVERYTHING to keep it there. I might wait a long while before i buy anymore(if i buy anymore!), we have’nt hit the bottom yet folks, despite what some “gurus” are saying, the price is headed WAY down. No guarantee of a massive rebound either! I hope like hell i am wrong because i like surprises but i just cannot see it, to much control by the big boys, we are betting on higher prices but the game is rigged, they win. They can kick the can down the road for alongtime yet and when they run out of road, they will make more road. History may suggest they wont win in the long run but i hope all that are invested are very very patient because this is going to take many years folks.

  17. As recorded by preciousmetalspete(.com), Sinclair et al are disingenuisely calling for higher paper prices whilst knowing the end game is pre-determined by a collapse of the paper price followed by true value discovery. If correct, why are Sinclair etc hiding it? Begs more questions! 

    • @Eboy75:  I don’t get what you’re trying to say.  If someone says hold physical (not paper) gold, as Sinclair advocates, that holder benefits when “true value discovery” kicks in.  
       
      @DVDBeaver, are you trying to say that since he has a Jewish background and the surname was changed, that that is of any significance?  I’m really tired of all this Jew bashing, which is especially rampant on zero hedge.  Yeah, a major segment of the oligarchy is Jewish.  But the oligarchy comprises a lot more than just Jews. 
       
      One could very easily argue that all the decades of getting people to pay attention to the topical issue of creed helps create a rabbit hole of irrelevance and distraction.  While people spend hours and hours investigated the purported significance of Protocols of the Elders of Zion or simply ruminate endlessly about how evil Jews are, the oligarchy (both Jews and non-Jew) gain the power and ability of discounting all research efforts of said people by closing the trap door set for these people.  The target of “it’s the Jews” is a red herring, that allows the oligarchy to dismiss your work should you gain an audience.  The dismissal is easy.   Heck, this really isn’t that different from the Southern Poverty Law Center’s broad brush strokes against “Constitutionalists” and “Patriots” as extremists — and look at how they unjustly frame Alex Jones as an example.   
       

    • Hey FlyingWombat, thanks for playing that card – that no one brought up. I hope your portfolio outperforms the market forever and ever if that’s what you want. And you don’t have to believe in my religion, or have the same taste in cars, music, or women as me.

      In short, you can be or do anything you want, and if you want to start a blog about it, I promise I won’t come there and call you an anti-Semite or anything else for that matter – for not being “like me”.
      If you need someone to spell out Jim Sinclair’s raging inaccuracies over the years – I’m sure many are able in this Forum alone. He even contradicts himself within the same sentences now. You may follow him all you want. I promise not to unplug your computer.
      Jim Sinclair’s ancestors, the House of Seligman, partnered with the House of Rothschild and the House of Morgan, which places him in the inner circle of the Learned Elders of Sion.
      “…in the autumn of 1874, Baron Rothschild summoned Isaac Seligman to his office to give him a piece of news. Some $55 million worth of United States bonds were to be offered for sale, and, the Baron suggested, the issue might be backed by a combination of three houses — the House of Rothschild, the House of Morgan, and the House of Seligman. For the first time, August Belmont would act as agent for both the Rothschilds and J. & W. Seligman & Company… The Seligmans were now participating in the most powerful financial combination in the history of banking…
      You may use your local Search Engine if you need to find more…
      Best of luck,

    • You did bring it up:  “perhaps Sinclair ( a changed name, btw) is controlled opposition.”

      As for antisemitism, the international banksters are perfectly happy to have people like yourself diverting attention to creed rather than issues and facts on the ground the oligarchy is behind, such as the current raping of Cyprus.  Heck, the so-called Jews you mentioned are not technically even semetic in origin, which I think you probably know because you’re obviously smart even though you’re also a whole bunch of other things I shall not name but which are readily obvious given the attack-dog tone of your post. This will be my last comment to you on this subject.

  18. @wombat, if Sinclair DOES advocate the true physical price, why is he 1) not mentioning that specifically and 2) is so concerned by the ‘cartels’ supposed paper price manipulation.
     
    I am relatively new to this so wish to test the contradictions.

  19. @Eboy75:  Sinclair constantly talks about the paper price not being the true price.  In the long-term, he sees our system moving towards a FOFOA free gold vision and it seems the only reason you don’t see that is that you haven’t read enough of his stuff.

    Just because he also talks about paper market prices and talks about technical and fundamentally derived price targets regarding the paper prices doesn’t mean he is also making the claim that the paper prices are what matter in the long-run.  Hardly.  In fact, he argues the exact opposite:  that in the long-run the paper prices will give way to true physical market driven pricing AND that gold will move to the center of the global monetary system, replacing in full or at least in part, the existing fiat system.

    Heck, I talk about paper pricing action in this week’s post and radio program and comments above.  Does that make me some sort of traitor?  You’re making a mountain out of a mole hill.

    • In the long-term, he sees our system moving towards a FOFOA free gold vision and it seems the only reason you don’t see that is that you haven’t read enough of his stuff.

      Firstly, we’ve ALL read too much of his ‘stuff’ (as you call it) EVERY DAY! Seems he is going to keep talking till he gets something right.
      from this Forum:
      one man got up and asked about the juniors, you could smell his fear from the back of the hall…. his voice was quivering and Sinclair told him just hang in there is nothing you can do… really, this was the same man who told people to buy juniors as they would be on fire when we cross 1600 two years ago…
      He also said that, gold bottomed 110%… there was on Thursday before the drop.
      He also said that we will have a new currency by 2020 because he knows the who’s who of the banking world and they all talk with him.. what a load of shit.

      I can find quotes of Sinclair about Freegold but he finds it ‘incorrect’, although he has quoted ‘Another’.

      This is the most Freegold thing he has said:
      Gold is the only tool that is able to balance the balance sheets of the offending deficit spending central banks. There is no other tool. Therefore, the tool (gold) will be used. Just as QE was the only tool to feign sovereigns as financially sound, gold is the only tool to bail them (central banks) out in the end. It’s simply a fact, a reality, and it cannot be denied.

      But Sinclair is like the 1000 monkeys with the 1000 typewriters – by covering all angles, including touching on FG, eventually clicking on prescience with one of his vagaries.

      Perhaps it is YOU who have not read enough… or you have selective hearing and only believe what you want to believe of his doublespeak…

      Freegold does not advocate holding miners and yet he is the Chairman and CEO of Tanzanian Royalty Exploration! It is mentioned everywhere he speaks and he has an axe to grind – to promote his company! Did you somehow miss this?

      Sinclair says buy Gold below $1600 and to sell gold at $4400… ?!?!? Sell? For what? What in the world would you, then, go long in?? Apple stock? This isn’t Freegold at all… it is a trading mentality.
      Perhaps, one of your – many obvious – problems, is that you don’t know enough about Freegold.

      and as for your other BS. I mentioned his name change as a sign of deception, not creed – it is you who started waving a flag of antisemitism. NO ONE even mentioned the word “Jew” except YOU

  20. @wombat, i thank you for taking a cheap shot to somebody new to the market and questioning what is clearly a contradiction with Sinclair!
     
    If he was a Freegold advocate as you suggest, why doesn’t he put his balls on the line and say so? Or is it really the case that his commercial interests prevent him from doing so? If correct, this is indeed disingenuous.
     
    Also, as stated previously he has become very price sensitive recently. This is my observation not preciousmetalspete’s.
     
    Goodday Sir…
     

  21. Agree EBoy75,
    <the international banksters are perfectly happy to have people like yourself diverting attention to creed rather than issues>
    Firstly, YOU brought up creed. I mentioned a, possibly, deceptive name change. Are all legal names changes because of creed? Perhaps in your, very, small world.
    But I am curious as to how YOU know what makes the ‘international banksters’ perfectly happy?

  22. @Eboy75:  Sorry you felt I was taking a “cheap shot” at you.  All I was doing was pointing out that he talks about free gold quite often.  Also, while the FOFOA blog advocates not owning mining shares, the very act of owning mining shares as an additional hedge doesn’t mean the owner is against the concept of Free Gold.

  23. It is interesting to read and consider all these comments.  When silver is rising, there is no shortage of comments claiming that it is heading to the moon.  When silver is falling, there are no shortage of comments claiming that it will fall through the floor.  I suggest that both types of comments are over-reaction to typical but temporary price swings.

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