Turd brought his A-Game to report it’s “Same As It Ever Was”
Turd brought his A-Game to report it’s “Same As It Ever Was”
Now the magician’s tricks are laid bare for all to see
Most investors buy gold because they are nervous about the financial system, government debt/bureaucracy, central bank money printing, and dangerous geopolitical developments. In a nutshell, that’s the “fear trade” for gold.
The fear trade is a great reason to own a core position in gold now, and forever. Gold should be the first item bought in any investment portfolio. That’s because lowest risk assets must be bought first, not the ones that appear to offer the most potential reward.
Ironically, it’s probably going to be the “love trade” (gold jewellery), not the fear trade, that makes the Western gold community a lot richer.
Legendary gold trader Jim Sinclair sent out an email alert to subscribers Monday night regarding the manipulative dump of $1.3 billion in paper gold on the week’s COMEX open.
Sinclair, who called the top in the last gold bull market to the day, stated that Monday’s gold take-down was to allow the bullion banks to cover their shorts, and to initiate and expand long positions in advance of gold’s coming bull rally.
Sinclair, who has long stated that the entities that will make the most during gold & silver’s massive secular bull markets are the very bullion banks who have been naked short throughout the duration, warns that the bullion banks are GOING LONG HERE AND NOW!
Sinclair states that long term cycles in gold are turning positive and that this was likely “the last take down before gold trades at new highs“.
Sinclair’s full MUST READ alert is below:
Negative GOFO is now the norm, not the exception. In fact, since the price bottom at $1180 on June 28th of last year, there have been 229 market days. Of those days, GOFO has been negative for 133 of them or 58% of the time! GOFO has been in positive territory just 42% of the time or 96 days. For the previous 24.5 years, GOFO had only been negative for just 7 days.
Now, after the massive and counter-intuitive price slam, it’s negative nearly 60% of the time?!?
The “new normal” of negative GOFO is, in fact, symptomatic of extreme physical tightness and empty vaults in London. Knowing this and the clear correlation of GOFO with price (that we will demonstrate below), you should adjust your trading strategies accordingly. For those of us who are stacking only, persistently negative GOFO is just another clue that the end of the fractional reserve bullion banking system is near. Whether or not that “end” comes in 2014 or 2015 matters little. It is coming.
This past reporting period we saw a very rapid decline followed by an equally impressive “rally”. It is my firm belief that the decline was due to serious shorting by the speculators and it is not yet the time-frame the bullion banks desire for an all out price smash, so they quickly manipulated the strings, let go of some lower priced contracts and price popped up again to exactly where they wanted it. They appear to me to be interested in a very slow decline producing depression in the metals, not the schizophrenia of price instability.
If the metals crashed too quickly, it would spoil the long range plans of the elite and cause a panic before its planned time.
In gold, we have three solid weeks of long buying by the overall commercials with short selloffs on 4/8 and 4/15 and heavy purchases of longs and shorts on 4/22. On 4/15 we see phenomenal short positions taken by the large specs and the small specs. That is exactly what the bullion banks want. This is a setup.
The distinguished analysts from Goldman Sachs have reiterated their 2014 forecast for gold to hit $1,050 by the end of the year.
Goldman has a serious motivation for throwing the paper price of gold under the bus. You see… Goldman is by far the weakest and most vulnerable bank when it comes to its Assets to Derivatives ratio. Not only does Goldman rank DEAD LAST compared to the other banks in this ratio, it does so with flying colors.
Unlike gold, where Comex volume is moderate, silver volume is high indicating very strong support at current levels. The obvious conclusion is that bullion banks trying to balance their silver books cannot do so at current prices.
Yet higher prices are likely to trigger a vicious bear squeeze, so it appears the bullion banks with short silver positions will remain trapped either way.
There was a definite attempt last week by the cartel to dislodge the speculator shorts and cheat the people out of the notion of profiting from their intended plunge in metal prices.
In Silver we did not see much dramatic action.
BUT, what is not so dramatic in silver IS dramatic in gold.
In gold we saw a reduction in total open interest of almost 35,000 contracts! That is almost 7,000,000 (yes you read it right) 7 MILLION ounces!
Notice the commercials have the lion’s share of open interest reduction, because if we add up the speculators reductions and additions, we see they are not quite a wash but absolutely MASSIVE open interest reductions on the part of the commercials. To what end? Just to drop the gold price a little? I don’t think so.
Based on a short analysis of bank forecasts, we can conclude they are clueless about the direction of the gold price.
This year, the difference between the average gold price and the predicted gold price for 2014 is already $75 per troy ounce, as you can see from the chart below. It seems like bank analysts tend to extrapolate past returns. They were too optimistic in early 2013 and they seem to be too pessimistic on gold right now.
In gold we see that what all the headliner commentators thought were the bullion banks taking a big long position prior to the supposed blast off to the moon – in reality those bullion banks (producer merchant) have been packing on shorts right and left the last five weeks and have gone from just about 1.2 million ounces net long to a mere 311,000 ounces net long as of last Tuesday. Those swap dealers are packing on the shorts this past reporting period as well adding just over 641,000 short ounces.
What does all this mean?
For the first time in a long time we have both houses of the commercials moving congruently to significantly larger short positions. People, they are not taking those positions so they can report a loss…
Get ready for a price drop and back up the truck soon!
Much confusion persists regarding the method, or mechanics, of how the big banks are able to push the price of precious metals around at will for so long.
The confusion comes from declarations that on price drops, the bullion banks are selling. This then triggers the frequent and violent down-drafts we have witnessed over the last 2 years and counting. However, the trading data indicates the contrary. Commitment of Traders (COT) data shows that the big banks always buy on these dips and they always sell on rallies. Always. (This is clear evidence of manipulation in and of itself.)
So how do they get the price moving in one direction or another, usually to the downside?
The mechanism is made clear by the forensic analysts at NANEX, which provides documented real time price action down to the microsecond:
Stacking the Bid with Fill or Kill.
Analysts at investment banks are a bit like amateur meteorologists. Whatever is the latest trend usually informs the tone of their research reports. Last week TND and Silver Doctors detailed examples of capping efforts by the cartel leading up to and following the “no taper” announcement. With the precious metals complex under wraps, it should come as no surprise that investment bank analysts are now coming out of the woodwork to declare bearish views.
While we believe the Fed will eventually perform a tapering to save face and attempt to maintain credibility, it will likely be a short-term performance, and nothing more than Kabuki theater. Any notion that QE can be meaningfully tapered over the next two years runs smack against the object reality of a weak economy sensitive to another downturn in housing and asset prices in general, which rising interest rates can easily cause. Then there is the problem of weak demand for US bonds requiring the Fed to act as the buyer of last resort.
Click here for more from TND on how the banks are using the Fed’s taper threat to bash gold:
The trillion dollar question is what is really going on with metals? No one is selling, everyone is buying, drying up supplies and sending premiums through the roof. I will tell you and make it as clear as I can. I will detail for you the exact reasons behind the scenes from the board room strategies to the public market.
We are witnessing a grand chess game being played out right before us.
In the wake of his epic $50,000/oz gold call Friday, Jim Sinclair sent an email alert to subscribers over the weekend calling for paper longs to stand for physical delivery of gold, and stating that the current physical demand for gold threatens to completely destroy the fractional gold system.
Sinclair states that the recent $200 take-down in the gold price will ultimately result in damage to the gold banks, and not to gold bullion itself.
Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. “Stand and Deliver or Go Home” should be the rallying cry of the gold longs to the paper gold shorts.
Sinclair’s full alert is below:
The Doc sat down with gold and silver expert and billionaire fund manager Eric Sprott Wednesday for the first of a series of interviews regarding the markets.
Eric warned The Doc prior to the interview that the KWN and USAWatchdog sites were maliciously attacked the day they published interviews with Sprott. There appear to be powerful interests that would prefer to keep Eric’s thoughts on precious metals out of the public at the present, as SD also sustained a confirmed co-ordinated Apache flood DOS attack during the recording of the interview.
With gold smashed nearly to $1550 and silver nearly to $28 Wednesday, Eric discussed the latest paper raid in the face of epic physical demand, and stated that the demand for coins has been stunning!
Sprott also stated that there is an absolute shortage in platinum and palladium, and although he still believes silver is the investment of the decade, there is no telling how high platinum and palladium could go.
With silver trading back under $30, Eric states that silver should be $100 today, that he expects it to massively outperform gold, and that he conservatively expects the metal to reach $200/oz. Eric states that $200 shouldn’t be considered the top however, and that All we know is that the price should be up massively. Anyone who’s been a student of the market sees these ridiculous trades, but some day these guys will be brought to their knees by people just taking delivery.
The first of Eric Sprott’s MUST READ interviews with The Doc is below:
The Treasury Department has released the results of a gold audit on the Treasury’s gold holdings stored at the NY Fed which began in 2010. Not surprisingly, the Treasury report claims that the audit found no issues with the quality of the gold held at the NY Fed, or in any policies or procedures by the NY Fed.
The audit reportedly claims that in 3 of 367 tests of the gold’s purity, the gold was more pure than Treasury records had previously indicated, and as a result has increased the book value of the US’ gold holdings by 27 ounces.
The most newsworthy revelation in the report however was that the US (which is supposed to hold the vast majority of its gold reserves at the NY Fed) holds a total of 32,021 good delivery bars on deposit at the NY Fed:
As part of the audit, the Treasury tested a sample of the government’s 34,021 gold bars in the New York Fed’s vault five stories below Manhattan’s financial district.
Why is this so significant? As anyone with a simple calculator can discover, the Treasury department has just inadvertently admitted that rather than the official 8,133.5 tons the Treasury reports as the US’ official gold reserves, the Treasury’s actual physical gold stores at the NY Fed are a measly 466.57 tons! While the Treasury does reportedly also hold gold at Fort Knox, several reports have claimed that up to half of the US Gold is held at the NY Fed!
No wonder it will take the Bundesbank 7 years to repatriate 300 tons!
Jim Sinclair has sent email subscribers another alert Sunday night regarding the latest take-down of gold.
Sinclair again re-iterates that the bullion banks will be the entity that makes the greatest gains in the current precious metals bull market.
Those who think the Goldmans or Morgans are stupid and clumsy are the ones demonstrating those traits. I see and know the same things these greatest of all time manipulators of price see and know. This is 1979 in the gold market right before the greatest price appreciation took place over the shortest period of time then. The most money over the shortest period of time in the gold bull market of the 70s was not made by the gold crowd but rather by the mega powers of Establishment Wall Street after doing the same things they are now doing.
Sinclair concludes by stating that in years to come his missives on gold will be dismissed based on his prediction for $3,500 gold, and the $3,500 number will be looked back upon as just the start of gold’s move.
Sinclair’s full email alert is below:
With sentiment among the precious metals community remaining downright terrible (to see just how bearish the current sentiment is, peruse the reader comments on today’s silver chart of the day) legendary gold trader Jim Sinclair continued his efforts tonight to convince PM investors to sit tight and be right.
Sinclair again informs readers that the gold boys (bullion bankers) will soon flip their naked short positions net long, propelling gold to $3,500 an ounces (Doc’s note: and silver likely to $90).
Sinclair states that legendary 10+ baggers will be seen in the mining shares sector, and that precious metals investors must stare the bastards in the eye and defend themselves- by simply being right and sitting tight.
For the first time ever, the legendary gold trader has advised metals investors to go ALL-IN on further price weakness!
Sinclair: Stare the Bastards in the Eye and Defend Yourself!
Jim Sinclair has sent email subscribers an email alert regarding the latest take-down of the gold market by the bullion bank cartel.
Sinclair states that the latest actions are not motivated by paper profits, but are an attempt by the cartel to shake free real physical gold bullion from weak hands in the cash market. Gold is going to and through $3500 in the reasonably near future. The point of this entire operation was to shake the tree to accumulate not in the paper market for gold, but real free gold in the cash market.
The gold banks are short the real Mccoy, and are desperate for precious metal investors to liquidate their physical holdings in a panic.
Sinclair states that all that is necessary to win the battle is to do nothing, ie hold on to your gold.
Sinclair’s full update is below:
The legendary Jim Sinclair (who called the current bull market before anyone over a decade ago) has long maintained that the bullion banks would make the lions share of the profits in this massive secular bull market, not the average gold investor.
Sinclair has sent an alert to metals investors today, advising that the current massive take-down in the metals is the end-game, and the Great Train robbery is in progress in which the Goldmans of the world will go massively long in gold.
Sinclair states that as soon as the bullion banks have grabbed every last available ounce of gold they can lay their hands on, gold will EXPLODE to $3,500.