The Economy Fell Off a Cliff Months Ago, the Markets Just Don’t Know It Yet…

Seriously? “Simon Black” (it’s a nom de plume) wrote an article titled “Demand For Physical Is Collapsing.”  He focused on retail bullion demand numbers. To claim that the global demand for physical gold is collapsing is seeded in either ignorance or mal-intent.
The Black article purports the idea that retail bullion sales represents global demand for gold and silver.
Nothing could be further from the truth:

The Fed knows as well as anyone that the economy is tanking.
With the default rate on subprime auto loans beginning to hit double-digits, the next phase in the automobile credit market will likely be credit implosion crisis.

Since mid-December 2016, when gold appears to have bottomed out from the manipulated price “correction” that began in August, gold has been trading in defiance of the Fed’s attempts at price control.
Yesterday’s trading action is case in point:

There’s always the chance that court-ordered discovery – assuming these banks have not destroyed and wiped clean any evidence – could reveal the truth.
And the truth will set the gold/silver price free.

“Yellen Can’t Halt Trump Gold Rally That Funds Bet Against” – That was the headline in a Bloomberg news report that was released on Sunday afternoon. There’s a lot going on in that headline – none of it accurate except for the fact that gold is moving higher DESPITE the efforts of western Central Banks to cap the price.

We can only speculate the reasons why Greenspan has gone full circle back to his views expressed in his 1966 seminal essay about gold and is “coming clean” about economic systems based on fiat currencies rather than a gold standard.
But the fact that the former fiat money “Maestro” is now advocating the gold standard reinforces its validity.

It’s my view that the next longer term trend move in gold is higher, which means that price attacks should be used as buying opportunities, both for the metal and the mining shares.
In fact, the mining shares were quite stubborn about going lower when gold was being hit hard in New York after being hit hard in London.  Typically this is a signal to the market that prices in the precious metals sector are going higher.

At 9:54 am EST, 11.1 tonnes of paper gold which hit the Comex trading floor and electronic trading system in a 60 second window.  It represents approximately 30% of the total amount of gold the Comex vault operators are reporting to be available for delivery under Comex contracts – dumped in paper form in 1 minute…