GOFO Rates Plunging- Are We On the Verge of Another Rally?

As expected, London gold forward rates are plunging again during the New York Comex delivery month. In the recent past, this signal of tight physical supplies has correlated with higher prices.
So, are we on the verge of another rally?
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Elite Manipulation, Not Chinese Demand Remain in Control of PM Prices

Jamie DimonFor the past several weeks, we have shifted focus on what we see as the truer “story” of the PMs market, [Precious Metals].  Some may think we have gone off on an unrelated tangent talking about the elites and fiat currency.  The PM community has maintained a relentless focus on how much gold is being imported by China, the diminishing supply of physical gold at COMEX and LBMA, and a host of other popular statistics that support what seems to be important for gold and silver adherents in their beliefs that should ultimately lead to higher prices. 
The Law of Supply and Demand is what determines price.  Not enough are looking at how the elites are able to distort that Natural Law and bend it to their will.  It is the power they can exert, and distort, on any aspect of human life, at least in the Western world, that keeps gold and silver at unnaturally low prices.  The more cogent issue is, for how much longer can elites keep their unnatural control over the natural forces of Supply/Demand?

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Alasdair Macleod: Quarter-end distortions in the gold market

GoldThe gold price continued last week’s fall into Monday, which was the end of the first quarter of 2014. Since then having reached a low point of $1278 in New York trading, gold rallied to a high of $1294 on Tuesday before weakening on Thursday morning.
The biggest influence was not stories and announcements, but the market-makers’ attempts to reduce their exposure by the quarter-end.
This can be clearly seen in the chart of gold and open interest below. [Read more...]

Alasdair Macleod’s Market Report: Central banks add to gold reserves

Gold and Silver YTD $The correction in the gold price continued this week, falling another $40 to a low of $1290 yesterday. In all, gold has retraced nearly half this year’s rise and silver has retraced most of its rise since end-January, with the gold/silver ratio increasing to over 65 times. However, this disappointing performance for precious metals masks some strong undercurrents in gold.
Current prices appear to be stimulating new sources of physical demand in a deeply oversold physical market.
At some stage gold and silver are set to rise strongly, but in the very short term paper traders remain in control.

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The Golden Ratio Projects Gold to $3880 in Current Move!

launch rocket verticalEvery major turning point in the gold market has been predicted by the Golden Ratio for the last thirty years.
The ratio is predicting that this leg up in gold could send prices to a range between $2215 and $3880 from the low at $1180. 
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Gold’s Wall of Worry

goldThe general tone of financial markets is tilting perhaps towards deflation. China is trying to slow monetary growth, leading to revised GDP forecasts, and possibly the end of her property bubble. To this we add the Fed’s monetary policy, which on the basis of last week’s FOMC meeting appears to be less inflationary in tone. In the cliché of old, gold is climbing a wall of worry.
All this is essentially short-term noise, so long as central banks continue to rely on printing money to rescue the global economy and the financial system at times of stress.  A deflationary crisis will always provoke an inflationary response, and that is what the primary trend in gold and silver is all about.

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Precious Metals Prices To Rise As The U.S. Economy Disintegrates

gold standardAs the U.S. economy continues to disintegrate, increasing numbers of investors will be forced to move out of paper assets and into physical gold and silver to protect their wealthAt first the move will be slow, but as Americans wake up from four decades of fiat monetary amnesia, it will turn into a torrent.
Unfortunately, there won’t be much in the way of physical precious metals to “GET” at this time, as the clever Chinese and Easterners already cleared most of the shelves.
Currently, Americans are invested in the largest Paper Ponzi Scheme in history.  They hope and pray that the DIGITS in their accounts will be good as gold when they retire.  Unfortunately for them, the only thing that is good as gold….. IS GOLD (or silver).

However, Americans will still be shocked and stunned that they didn’t see this big transfer of wealth coming….. and there is a good reason for that.  [Read more...]

Macleod’s Market Report: Gold Storms Through $1350

empire revoltRussia and NATO are playing a game of financial chicken over Ukraine, which is deeply concerning.
Russia appears to have calculated that the West would not dare to precipitate a financial and trade war with the largest exporter of energy on the planet.  However, it appears that the West is ignoring economic risks: Russia is not to be permitted to invade a sovereign territory next to the EU’s border, so it’s political principals before money. To make the situation considerably more serious, China has weighed in on Russia’s side, as she was bound to do as co-founder with Russia of the Shanghai Cooperation Organisation.
The point is not lost on those interested in gold: it amounts to a financial war between long-time bulls in Eurasia, and long-time bears in the West.

All the golden cards are held by China and Russia while we Westerners have none. 

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Sprott’s Charles Oliver: Gold to 5,000-$15,000 within a few Years!

launch rocket verticalSprott’s Charles Oliver puts the current gold price rally into historical perspective:

In 1980, when the gold price peaked at $800, it took 1 ounce of gold to buy the Dow Jones Index. After 1980, financial assets took the lead over hard assets. In 1999, it took 44 ounces of gold to buy the Dow Jones, at a gold price of $250. If gold were to regain the position it held in 1980, we could easily see a 3:1 ratio – gold at $5,000 given the current level of the Dow Jones, or even $15,000 if gold returns to the 1:1 level.[Read more...]

Alasdair Macleod Market Report: Gold challenges $1350

Gold $The futures markets for precious metals are now at a crossroad. The short positions of the hedge funds, which have driven gold and silver prices higher have now been significantly reduced and are no longer extreme. In gold the bullion banks appear to have taken these positions onto their books and also as swaps. In silver, the shorts have been crossed out against matching longs with open interest falling by 18,000 contracts since mid-February. So instead of precious metals being driven by a bear squeeze, the market will need to either continue to lose physical metal to Asia or find growing support from new bulls attracted by the reversal in trend. [Read more...]

Silver Breaks Massive 30 Year Base Pattern to the Upside!

SILVER BIG PICTURE MAR 52014 should be a great year for Commodities and Miners and I expect a period of financial market turmoil for the US Market. I believe that we are very close to an important corrective move as the Market is due to top in March 2014.
Since the beginning of the year we can notice that money has been flowing into Commodities, Metal and Miners.
 The market gave us some important clues already at the beginning of 2014 – some ratio charts were clearly telling us that early January was a buy signal for all the Mining stocks. They also put in perspective that money flow was going to come into the Metal and the Miners sectors.
The current Gold Double Bottom Pattern occurs right on the symmetry guideline. Silver is also in a process of a Double Bottom Pattern and back tested twice the Base Pattern neckline.  Silver broke above a 30 years base pattern neckline and back-tested it in early 2014.  The silver chart looks immensely bullish

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The History of Gold & Silver Clearly Tells Us Where It is Heading in the Future

5000 goldIn his latest public update, SmartKnowledgeU’s JSKim discusses how studying the history of gold and silver clearly tells us where it is heading in the future.
Kim also explains how examining the historical anti-gold, anti-silver banker propaganda campaigns should prevent us from falling for the same dirty bag of tricks they are playing today. [Read more...]

Gold & Silver – Forget Price, From Now On Ownership is All that Matters!

Bernanke-Dimon-Fed-TunnelCircumstances are at such a point that one no longer needs a justifiable reason for being long PHYSICAL gold and/or silver.  Does it matter that the 50 day moving average is going to cross the 200 day moving average, now being bandied about as though there were a degree of magic  associated with the event?  Does it matter any more that China remains a record buyer of physical gold for over a year?  Did it ever matter that coin sales to the public have been setting records for well over a year?
Those who already own gold and silver will be protected, to a larger degree than otherwise, against the certain-to-come devaluation[s].  We have been advocating the buy and hold strategy for over a year, specifically for physical gold and silver and personally holding the PMs, as well.  One of the provisions of the Patriot Act, forced through at the direction of the elites to gain further control over unaware citizens, allows the government to raid anyone’s safe deposit box that may hold either gold or silverStill trust the banks?
Some own gold and silver from much higher prices.  That is okay and not a cause for concernWhen the fiat Ponzi scheme fails, the unnaturally suppressed prices for both PMs will make $50 silver and $1800 gold look like an incredible bargain. 
The takeaway from all of this is the more than ever pressing need to keep on buying as much gold and silver as one can afford.  Forget price.  Ownership is all that matters.  

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Market Report: Profit taking after eight consecutive weeks of rising prices

Alasdair MacleodThe rise in the gold price ran into profit-taking on Wednesday. Having risen $160 to $1345 some short-term profit taking is only to be expected, and silver followed suit.
The correction in silver will not last long before lower prices attract more genuine buying.

The same is broadly true in gold, though this is a more liquid market. Demand for physical metal from China and Hong Kong continues at record levels, and there is talk of the Indian Government relaxing import restrictions in this election year. I personally think it unlikely, but given that Indians are currently paying well over $1400 equivalent the effect on markets of such a move would be immensely bullish.

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Eric Sprott Warns: Don’t Miss this Golden Opportunity!

goldIt is obvious to us that precious metals markets were manipulated in 2013. It is also obvious that demand far exceeded annual mine supply. Now let’s analyze what should happen, going forward, with these revelations. If gold prices are back on their long-term trend, ex-manipulation, a linear progression of the gold chart from 2000 to 2014 would suggest a price of $2,100 now (62% higher than the current $1,300 level) and $2,400 by year-end.
Gold and silver have broken their downtrends and have surpassed their 200 day moving averages. The golden cross (i.e. the fifty day rising through the 200 day) still awaits, but it is most likely to happen within weeks.
When was the last time that an obvious reversal of an anomalous, yet explicable market dysfunction allowed you to imagine that you could expect multi-hundred per cent returns over a short time period?
Don’t miss this Golden Opportunity! [Read more...]