gold bull

Internet Rodeo: Bull riders Turd Ferguson, The Doc, Claudio Grass, & Andy Hoffman stopped by for a round table interview, discussing the Switzerland Gold Initiative, direct democracy, & what’s happening right now in both the equities and precious metals markets.
Sit back, relax and enjoy the conversation.

crash

In the US, while much is made of an improving jobs scene, the fact remains that in relation to the size of the workforce there is a greater percentage of working-age people not employed since the 50’s era of the male dominated workplace.
This is creating a two-way pull for gold and silver.
Declining commodity prices coupled with a strong dollar have hit both precious metals hard since mid-August with gold falling $130 at worst, and silver having been in continual decline since mid-July.
However, both metals have become oversold and as a result have bounced firmly off support at $1180 and $16.75 respectively. The chart below is of gold from its all-time high and its 200-day moving average.

Bernanke-Dimon-Fed-Tunnel

PM Fund Manager Dave Kranzler joins us this week for a power packed show discussing: 

  • Triple Bottom or Dead Cat Bounce?  The outlook for gold & silver over the next 6 months
  • Physical silver update- demand explodes as more physical sold in the first week of October than all of July & August! 
  • Giant House of Cards- why the fundamental economy has been completely rotted out
  • Kranzler explains that the banks have been able to continue manipulating silver futures far longer than expected because only 2% of futures contracts ever stand for delivery
  • No other commodities market in which the amount of outstanding futures contracts to the underlying deliverable is so out of balance- this would all end if the longs would simply STAND FOR PHYSICAL DELIVERY

The SD Weekly Metals & Markets with The Doc, Eric Dubin, and PM Fund Manager Dave Kranzler is below: 

moon

Despite the cartel’s vicious, criminal paper games, Silver & Gold demand has EXPLODED and Western demand is back with a vengeance.
Judging by the past week of Silver Eagle sales from the US Mint the big players, the smartest guys in the room were busy buying nearly 24 tonnes of silver from the U.S. Mint!

So the cartel can continue slaughtering the paper silver market, but they do so at their own peril as the inverse reaction to their criminality is a RUN ON PHYSICAL precious metals in the United States and abroad.
In this MUST LISTEN interview with the SGTReport, The Wealth Watchman explains why you are 100% right about silver. 

waterboard Dimon

After silver topped $30, I realized I needed more, that my purchases at $24 were rather insignificant. I often sang that refrain: “How I wish I had bought it cheaper.” 
The rest is history—especially the part where I loaded the boat with a credit card at over $40 per ounce.
So here we are with $17 handle silver (16-something over the weekend), with warnings from the experts that we may see lower prices.   Meh!  We have already been tortured and seeing metals priced in for less fiat just doesn’t hurt any longer. My perspectives are changing. What is valuable to me now are the things I will need when the paper system moves to its intrinsic value.
This isn’t going down like we all planned, hoping to catch a moonshot then convert our metal back to fiat and pay off houses, land, and buy stuff for a nice retirement in a new economy.   No, they have put the pain to strong hands, hoping to shake our metal loose, punishing us for daring to make their road more difficult.
We are buying to preserve our families through this transition period, not to get rich and retire.   QE is ending, Rates may be raised in 2015. The dollar is being pushed out of reserve status.  The petrodollar strength is eroding one nation at a time.  Eighty percent of the world population  regards precious metals as money—and their governments are buying, their citizens are buying. Price may rise, or it may fall further.
But one Saturday morning, not long from now, we shall awaken to a Bloomberg story (about an hour after Zerohedge runs it) that the Comex will settle all outstanding contracts in cash, at Friday’s price.

Gold the great equalizer

Gold has placed a triple 2-year chart bottom at $1180 and will NOT break.
Gold sits on the rising support line from back from 2000 – 2001 when the Bull Market began.
Buying Gold today in the very low $1200 range is equivalent to buying Gold back in 2001 when it was $255.
All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.  Gold at $2000 will be self-evident by the end of 2014, with the summer of 2015 an absolute certainty! 
The Gold price suppression Game ends this year with a Gold Spike and a FINAL Top is coming for the US Stock Market with no bottom until the year 2020!

Yellen

Gold, silver and stocks surged overnight and today after the Fed maintained their ultra dovish monetary policy stance. The risk to markets of an early hike in U.S. interest rates eased leading to a fall in the dollar after the release of minutes of the last Federal Reserve policy meeting. 

fight smash

If the banks fear silver, if the globalists fear it, if the U.S. government fears and loathes it, then it stands to reason that silver’s exactly where we need to be.
Yet, there are many who’ve made mistakes along the way in how they attempt to acquire their silver.  I will address some key mistakes below, so that you can avoid these pitfalls.  If you’ve made some of these mistakes yourself, don’t feel badly.
Whatever you do though: please don’t use margin.   Just buy the hard stuff.

derivatives

The values of gold and silver would be substantially higher if it wasn’t for the massive derivatives market.  Americans have no idea that the Derivatives Monster destroyed the ability for the market to properly value physical assets, commodities and the precious metals.
Without the Fed & Cartel Bank market rigging, a Dow Jones of 6,000 would mean gold would hit $6,000 (at 1980 Dow-Gold 1/1 ratio) and silver would reach $272 (at 1980 Dow-Silver 22/1 ratio).
The financial markets today are riding on FUMES.  There is no way telling how long the FACADE can go on, but with tensions between the West & East increasing significantly, we may see fireworks sooner than later.

At some point, the BRICS will pull the plug on the GREATEST PAPER PONZI SCHEME in history, making gold and silver some of the best assets to own.

gold

We already have monetary hyperinflation, defined as an accelerating debasement of the dollar.   And so for that matter all other currencies that are referenced to it are on a similar course, a condition which is unlikely to be halted except by a final systemic and currency crisis.
Attempts to stabilize the purchasing power of currencies by raising interest rates will very quickly develop into financial and economic chaos.
The insurance cost of owning gold is anomalously low, being considerably less than at the time of the Lehman crisis, which was the first inkling of systemic risk for many people.
We are being regularly advised by analysts working at investment banks to sell gold.   But bear in mind that the investment industry is driven by trend-chasing recommendations, because that is what investors demand.
Expecting analysts to value gold properly is as unlikely as farmers telling turkeys the truth about Thanksgiving.

Caption Contest 1

Last week saw gold rally $15 to $1233 on Tuesday before sliding to $1207 yesterday morning, then rallying in the afternoon. Silver’s moves tracked gold’s, bottoming out at $17.30 Thursday at the London opening.
Friday morning precious metals were firmer in pre-LBMA trade, reflecting some short-covering ahead of the weekend.
The action, as has often been the case recently, is in paper markets with hedge funds shorting gold and silver against a strong dollar.   This can be readily seen in the following chart of Managed Money shorts on Comex, which is back in record oversold territory.  The chart of silver is similar:

my-shorts-on-fire

Here are the likely profits taken by the commercials during the latest COT week:  2 Million ounces at $50 profit is a cool $100 MILLION profit.  At $200 an ounce that is $400 MILLION profit.  So there are the two ends of the spectrum, not a bad haul for a week.
Meanwhile, the speculators appear to suffer from delusions of grandeur aka greed.  They are convinced price is still going down now and they are loading up for the fall (as the commercials covered 2 MILLION oz of gold shorts!).
They are seeking payments on their new hedge fund(ed) homes out on Long Island, I guess.

The speculators are not going to be rewarded unless they sell those shorts NOW.
And by the time this is read it may be too late…

treasure the moment

Is there anything SPECIAL about this week?
Summer officially ends September 21, 2014 and September 22, 2014 is the First Day of Fall — In More Ways than One!
Sept. 22 is known among aficionados of various and arcane market indicators as the day pinpointed by the late technical analyst, W. D. Gann, when markets are more likely to reverse than any other day of the year.
Treasure the Moment as summer ends and Gold trades in the low $1200’s and Silver at $17; for a Runaway Bull Market follows!

silver precipice

Gold and silver drifted lower over the course of the week, with a challenge to the $1200 level for gold becoming a distinct possibility.  On Friday, silver plunged below support at $18.
History shows us that the most successful investors are value investors, and those experienced in precious metal markets are currently happy to buy the dips. Meanwhile, with the majority of momentum traders being short of physical gold and silver, it is hardly surprising they talk these metals down.