Silver expert David Morgan joins SD Metals & Markets for an explosive show:
- David breaks down this week’s trading in gold & silver: David states that silver is forming the most bullish cup & handle formation possible, and joins The Doc’s sentiments that you do NOT want to be short gold or silver this weekend ahead of the Crimea referendum
- David provides his medium and long term outlook for the metals, including when the next avalanche of momentum buying to the upside will come, and predicts when the final blow-off top to the long term secular gold and silver bull markets will materialize
- The Fed’s custodial treasury bond holdings plunge by $105 billion in the past week, as Russia likely pulled their t-bond holdings from the Fed to prevent an asset freeze in response to the annexation of Crimea (Putin is 1-stop ahead yet again)
- We break down the build-up for war, and what to expect this weekend as the dominoes begin to fall in Ukraine. Are we on the brink of a military confrontation between two nuclear superpowers?
The SD Weekly Metals & Markets With The Doc, Eric Dubin, & guest host David Morgan of Silver-Investor.com is below:
Silver Eagles As Low As $2.49 Over Spot, & Platinum Eagles as low as $69.99 over spot!
It was a pleasure having David Morgan on this week’s show. I began to take a serious look at precious metals investing in 2000, and David Morgan’s work played a big part in my ability to move rapidly up the proverbial learning curve. For those interesting in learning more about David, check out his website: Silver-Investor.com. You’ll find links to his YouTube, Facebook and Twitter accounts at his website too (scroll down to the bottom of Silver-Investor.com to find the links).
Gold and silver picked up nice “safe haven” buying this week above and beyond new bull trend buying. Make no mistake, we’re seeing the return of long-term investment interest. That story is most clearly depicted by mining share action since mid December.
We should also distinguish between the sort of safe haven buying that comes in just before a weekend where people fear the prospect for near-term war versus the sort of long-term insurance “save haven” buying linked to investors that understand eventual dollar debasement will come under any form of global monetary currency system renegotiation. Many among the world’s wealthy can see the outlines of renegotiation writing on the wall, along with both large and small “smart money” investors that understand currency history.
Friday, we cleared resistance in gold, while silver was dragged along for the ride. Nevertheless, the cartel was visible, keeping a lid on gold’s upside. Why would a gold momentum move end just when resistance was overcome, and ahead of a weekend where conflict might erupt? Any trader with any meaningful market experience would know the answer. In any event, gold returned to end the day with a reasonably strong performance. We’re well on track for the forecast I made last week, and Bill Murphy’s call is looking more prescient by the day.
Ukraine continues to be the top story. Reading between the lines and with the context of real history as guide (not what we’re taught in school), I believe the US game plan vis-à-vis Russia and the Ukraine can be described as follows. Never mind what John Kerry says for public consumption, the State Department and their bosses (above Obama’s pay grade) most assuredly realize Russia would go to full out war to protect their only year-round warm water port and control over the Crimea as a buffer. From a strategic point of view, some things are non-negotiable. Putin backing down on the Crimea would be like the US looking the other way if Russia reneged on the sale of Alaska. The US would never allow that to happen.
The Neocons dominating the Obama Presidency are ruthless, but they are not idiots. In reality, most of their objectives can be met without caring one iota about the Crimea. Western Ukraine is now destabilized, mostly controlled by Nazi-sympathizing forces that were at the heart of the violent protests that created the mess we see today. These Maidan Nezalezhnosti radicals received direct aid from the US leading up to the toppling of the country. Most Americans have no idea this happened. Our mainstream media is busy telling us Hilary, a Neocon globalist stooge in fake “liberal” clothing, thinks Putin is acting like Hitler. Meanwhile, a sizable percentage of the American public has bought into the gross oversimplification that America and Europe are trying to come to the aid of a people seeking self determination against the Russian bear. Even the idea that Russia invaded the Crimea is something most Americans believe. There was no invasion. But I digress.
Bottom-line: US empire maintenance is served by turning the Ukraine into something similar to another Yugoslavia, where the country is split-up and neutered. What remains of Ukraine will be less able to assert policy in its own best interest, and will thus be more pliable to Western interests. In the Neocon US policy establishment community, it’s assumed that will result in more influence over oil and gas pipelines carrying Russian supply, along with yanking out of Russia’s orbit Ukraine’s industry and giant “bread basket” farm production potential. It’s quite literally the Balkanization of the Ukraine. The Crimean people will vote this Sunday to eventually fold into Russia (they’re mostly Russian) and the West will probably escalate sanctions as early as next week. The Russians might back down eventually in the form of not retaliating with US bond sales or other aggressive moves given that they’ll have the Crimea. This stand-off will fester for a few weeks to months and then, hopefully fade as this specific round of conflict closes.
It should also be noted that these dynamics have a financial warfare context, where the US dollar’s status as a reserve currency continues to weaken as Russia and China push the G-20 sans G-7 down the evolutionary road of a new global monetary regime. Destabilizing countries within the Russian sphere of influence (e.g., Syria, the Ukraine) in a twisted sort of way buys the US time and incorrectly perceived degrees of maneuverability at precisely the time Russia, China and the rest of the G-20 sans G-7 are attempting to accelerate the evolution towards a new global reserve monetary system. Within the context of this low intensity financial war, the US Neocon establishment actually believes there’s still a chance Russia and China can be boxed-in and weakened with structures like the Trans-Pacific Partnership trading block, and destabilization efforts around the edges of Russia and China’s direct sphere of influence, respectively. This, in turn, is the basis for the Neocon financial strategy to drive a better US bargain at the grand monetary negotiations table of the future. With a weaker Russia and China, the more power (and the duration of that power) accrues to the dollar-based empire.
It wasn’t an accident that the peak of the US drive to attack Syria came around the same time Russia was hosting the last G-20 meeting. The meeting’s top agenda item was the discussion of the reserve and trade status of the US dollar. Guess what’s on the docket for April’s G-20 meeting? Discussion about IMF reforms and the status of the dollar.
This is a reactionary foreign policy in service of special interests – with the interests of the Western financial oligarchy at the apex of these special interests. Some of you will recall the classic 1970s spy thriller “Three Days of the Condor.” Near the end of the film, Turner (Robert Redford) confronts Higgins (Cliff Robertson) about the murder of CIA agents. Higgins chalks it up to the necessities of geopolitical games in order to keep resources flowing for the American people. Today, in a world where “special interests” arguably dominate nation state policy far greater than at any time since the birth of the nation state, those 1970s sentiments almost seem quaint.
Have a good weekend and pray that I’m correct on my analysis of the Neocon faction game plan. If I’m wrong, that might mean they’re bat sh*t crazy and not bound by the dictates of realpolitik — and you don’t want to know what that might lead to. Stay tuned to the “Geopolitics” page at The News Doctors for ongoing coverage. I place mainstream media coverage there for context. But more importantly, you’ll also find some of the best alternative analysis outside Mighty Wurlitzer organs. — Eric Dubin
Everyone knows that staying updated with precious metals news is a chore in itself, which is why SilverDoctors has created our very own browser add-in toolbar to help you stay better informed. The toolbar supports the three major browsers: Firefox, Chrome and Internet Explorer, and when installed, will add built in functionality to your browser directly below the address bar showing you trending RSS links, provide you the ability to search the SilverDoctors site and give you a link directly to our home page. Click the free install button to install the SD Toolbar =>