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On November 30, the good people of Switzerland will finally get an opportunity to make their voices heard.  The Swiss Gold Initiative can be roughly stated in three parts:

  1. The halting of all Swiss gold sales
  2. The repatriation of all Swiss gold that is held in foreign vaults
  3. Resume backing the Swiss Franc with gold, at a minimum level of 20%

I hate to be the bearer of bad news, Switzerland, but what you suspected all along is actually true.  Your gold is gone.
All of it.  Leased and sold away by your central bankers and politicians.

As we’ve been claiming all year, gold put in a Double Bottom in late 2013 and is now on the road to recovery and a resumption of its bull market.   Since January, I’ve had a price target of $1500 for 2014 and I see no reason to adjust that forecast.   The HUI has recovered, too, and has already moved more than 30% off of the late 2013 lows.
So, the questions become:
Is that it? Will the miners now roll over and continue their downtrend or will they continue to rally?
The answer is in the charts.

Eric Dubin & T. Ferguson joined Dr. Dave Janda on today’s “Operation Freedom.”  
Topics discussed include:  Cyber-security, Ukraine, Syria, The Constitution, Repatriation of German gold, China, Natural resources, Reserve currency, Corruption, gold, silver, the Global Elite, International Banking Cabal, debt, Federal Reserve, Too Big To Fail Banks, Crony Capitalism, Debt Ceiling, Financial implosion, Recession, Economic Depression, New World Order, Freedom, Liberty, and Obamacare.
Full Operation Freedom podcast is below: 

Play

With volatile trading around key support/resistance in gold & silver and geo-political tensions rapidly escalating with Russia, T. Ferguson of TFMetalsReport joins the show this week to discuss: 

  • Tuesday’s cartel raid which saw gold & silver smashed below key support at $1300 and $20, the reasoning behind it, and why gold is setting up beautifully for a run to $1500
  • Ebola pandemic?  Is the Ebola crisis dominating the news merely an MSM agenda, or are we looking at an imminent global pandemic the likes of which have not been seen in 100 years? 
  • Trade wars escalate as Russia bans food imports from Europe, Ukraine threatens to block Russian natural gas pipeline, meanwhile crude plunges 10%?  Why The Fed may likely be manipulating oil to the downside to harm Russia/Putin
  • Outside of new releases such as the 50 Year Anniversary JFK Gold Proof & RCM Bald Eagle , physical silver demand declines in the US as US Mint sales down substantially, yet physical demand is screaming in Asia as Shanghai silver inventories have been depleted by 90%- nearly 1,000 metric tons over the past year! 

You won’t want to miss this week’s Metals & Markets With The Doc, Eric Dubin, & T. Ferguson: 

Source: Chip Somodevilla/Getty Images

Source: Chip Somodevilla/Getty Images

Some wise folks have repeatedly told us that regulatory enforcement at the highest levels is compromised because of the constant flow of high-ranking government officials from positions of governmental power into the lofty, highly-paid perches of private employers who were once the subjects of regulation by those same folks.  
Look at all the criminal actions brought by the SEC against all of the wrongdoers in the subprime mortgage fiasco?
Right, not a single case.  
Or wait, there are all those bankers who fraudulently issued fake paper, assignments, robosigned documents, all of it, to allow big banks to foreclose upon homeowners who defaulted upon their NINJA, option-arm, no doc loans, who are serving time after being prosecuted by the Department of Justice, right?  <sound of crickets . . .>

Well, there is MFing Global, and the Honorable Corzine, right, who stole a billion in customer accounts, and is rotting in jail?  Err, wait . . .

Yes, I and many others expect a rally…a significant rally…in the 2nd half of this year.
So this post is one to bookmark as we’ll discuss the various points on the chart where we can expect resistance to emerge.  The 2nd half of this year and then 2015 are going to be very interesting times to be alive.   Prepare accordingly.

Where might we find chart to resistance to the rally that is, most assuredly coming? (And, again, NOT just because the painted chart says so.   The London gold is “Gone…For Good” and the eventual realization of this will spur the rally to eventual new highs and beyond.)
Let’s start with gold.   For a plethora reasons, gold will NOT be breaking  down through The Double Bottom low of $1180.   It will instead, reverse course by later this month and then begin a slow-momentum build through the 2nd half of 2014.   First and foremost, gold must cross these two overhead resistance lines:

muppetsThings couldn’t be better in our blissful economic utopia. I mean, for crying out loud, look at the stock market! It goes UP every day!! Things must be better than they’ve ever been.
The reason why the rich and get richer and everyone else is stuck in neutral and getting squeezed more every day is Fed policy.
Since direct debt monetization began five years ago, the “stock market” has soared and nearly tripled.   IF you had wealth and were able to participate, you’re pretty happy and you can at least still afford to drive and eat.  IF, on the other hand, you’re just a regular guy or gal with a spouse and a family, struggling to make ends meet, here’s what you’ve had to endure, instead:

dry powder silverSo, here’s the deal. DO NOT get itchy to buy or get long…YET.  Let this play out.
Raise a mountain of dry powder and wait. Lay in the weeds with full knowledge of what is coming and then pounce later this month. Don’t be fooled by the first time GOFO slips negative. Recall that it did so on 12/9/13 only to move back positive on 12/12/13 before moving decisively negative on 12/19/13 ahead of the 12/31/13 Double Bottom.
Of course, in the long term, it matters little whether you add to your stack at $1240 or $1200.
   I get that. And anyone simply stacking should be sure to add on a consistent basis.  For traders of metal and/or miners, however, the main opportunity awaits.

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.

Turd Ferguson joins us today for an analysis of recent world events.  From the announced disbanding of the London Silver Fix to the unfettered Fed money printing, to China’s insatiable appetite for gold, to China’s confrontations with Japan and Vietnam and other countries, the New World Order is taking shape and America is conspicuous by it’s absence.   And so is the dollar.
What will a declining world power do to prolong it’s power? That remains to be seen.

China goldJim Willie joins T. Ferguson for an excellent interview discussing:

  • The latest developments in the budding “Eur-Asian Alliance”
  • The progress the BRIC nations are making in setting up the 21st Century financial system
  • Falling U.S. interest rates and the treasury market- is a full-blow T-bond collapse imminent? 
  • Deutsche Bank and the other walking, TBTF zombies- which failing zombie bank is likely to trigger the next stage of the financial crisis? 
  • Holy Grail currency deal coming between Germany and China, as Frankfurt set to become a major renminbi currency hub!

Jim Willie’s full 60 minute MUST LISTEN interview is below:

Blythe Masters Jamie DimonI hate to be the bearer of bad news, Switzerland, but what you suspected all along is actually true.
Your gold is gone.
 All of it.
Leased and sold away by your central bankers and politicians.

Play

GLDTFMetalsReport’s T. Ferguson joins the show this week to discuss: 

  • The Vaults Are NEARLY EMPTY- why claims of a physical gold shortage is not stacker hysteria, but rather the COLD HARD TRUTH!
  • PM Sentiment sucks by design: Cartel fears Western investment demand with vaults vastly depleted- vigorously capping any and all price rallies
  • Big picture outlook:  Summer stock market decline & tapering halt
  • Doc sees the first signs of renewed PHYSICAL SILVER SHORTAGE- 90% silver premiums leap as supply dries-up

The SD Weekly Metals & Markets With The Doc, Eric Dubin, & T. Ferguson is below!

empty-vaultWe’re getting reports that all of the gold stored in London is now gone.  So the bigger story in 2014 is: should Western investment demand return, from where will the gold come?  That is the major problem now for the bullion banks, and by extension the central banks: the gold is gone!  And that is why gold is being actively suppressed this year!”  

It is so obvious, and so apparent, that I wonder why commentators have only now seen fit to begin commenting.
“It” of course, being the pronoun referencing the gold spread and the insane, short-term profits the Wall Street Banks have been reaping right before our eyes.