Sunday, November 30, 2014

Swiss Voters Reject Increasing Gold Reserves In Referendum

As predicted, and according to recent polls, the Swiss gold referendum was rejected--by a wide margin.  The tell signal was Friday's action in the precious metals sector as both gold and silver tanked.  As usual, insiders got a preliminary peak at the voter outcome.  This occurs quite often before legislative votes, clinical trial binary outcomes, policy actions, etc.

Prices of precious metals could temporarily dip more tomorrow.  The financial elite used every tactic in their anti-gold propaganda and won by a landslide.  So the status quo remains--until more countries look to repatriate their sovereign gold.

Chalk another one up for the banking cartel in their pro-fiat and anti-gold campaign.  This may extend the repression of precious metals pricing, but it only serves as a springboard for future upside potential.

Saturday, November 29, 2014

Rosneft gets stake in Total refinery in Germany

Those economic sanctions against Russia have done nothing to isolate Russia.  If anything, the Eurozone is thumbing its nose at the US-led sanctions.

Will $60 Oil Be The Black Swan?

Grandmaster Putin's Golden Trap

The Price Of Oil Exposes The True State Of The Economy

The oil bubble bursting is ultimately bearish for crude oil prices, and probably for precious metals, too.  But then again, if the tanking economy dooms the USDollar, all bets are off.

India scraps restrictions on gold imports

Swiss, French call to bring home gold reserves as Dutch move 122 tons out of US

This begs the question why the Dutch were able to repatriate a smaller amount of gold out of New York, while the Germans could not repatriate a much larger amount.

Federal Reserve Confirms Biggest Foreign Gold Withdrawal In Over Ten Years

Not only are Fed vaults empty, they have to replace it with confiscated gold (see  here and here).  Hence, the Netherlands were able to repatriate 122 tons of gold.

Germany can't repatriate its gold reserves because it no longer exists in Fed vaults.  How will other nations like France repatriate their gold reserves?  The gold from Iraq and Libya's Gaddafi is long gone.

Friday, November 28, 2014

Historic & Unprecedented Events Unfolding In The Gold Market

We Are Closing In On Absolute Panic In The Gold Market

Gold could face its own OPEC moment as Swiss referendum nears

This Sunday may mark the end of Western monetary dominance

Another Trip Down The Rabbit Hole Of US Lies & Missing Gold

Frightening Monetary Chaos & A New Global Financial System

John Hathaway again knocks it out of the ballpark with his analysis.

London Gold Pool II On The Verge Of Collapse As Panic Nears

Shocking Events Now Taking Place As Run On Gold Intensifies

French Political Leader Wants Gold Back In France

First it was Venezuela, then Germany, then the Netherlands, the Swiss, and now the French.  They all want their gold reserves repatriated back to their own sovereign vaults.  When the gig is up, the gig is up.  See you at $6300/oz. gold.

Monday, November 17, 2014

'Godfather' of Abenomics: Japan's sales tax hike must be delayed

Marc Faber, the famous Swiss investor, has accused Japan of "engaging in a Ponzi scheme" because the BoJ is hoovering up most of the debt that has been issued by the government. While Mr Hamada agreed that Japan had created a "mild ponzi game", he also said it was a "feasible" one because of Japan's huge foreign reserves.

“In a Ponzi game you exhaust the lenders eventually, and of course Japanese taxpayers may revolt. But otherwise there are always new taxpayers, so this is a feasible Ponzi game, though I'm not saying it's good.”
Someone please prove to me Japan's train wreck isn't about go off the rails.

Mission Accomplished: Stock market, number of homeless children, both reach all-time highs.

The Cruel Injustice of the Fed's Bubbles in Housing
Federal Reserve chair Janet Yellen recently treated the nation to an astonishing lecture on the solution to rising wealth inequality--according to Yellen, low-income households should save capital and buy assets such as stocks and housing.

It's difficult to know which is more insulting: her oily sanctimony or her callous disregard for facts. What Yellen and the rest of the Fed Mafia have done is inflate bubbles in credit and assets that have made housing unaffordable to all but the wealthiest households.
Fed policy has been especially destructive to young households: not only is it difficult to save capital when your income is declining in real terms, housing has soared out of reach as the direct consequence of Fed policies.

3 Billion Gallons Of Fracking Wastewater Pumped Into Clean California Aquifiers: "Errors Were Made" State Admits

Saturday, November 15, 2014

Strong Upside Reversal Suggests Higher Prices for Gold & Silver

As accumulators of PHYSICAL GOLD and SILVER (vs. traders of paper precious metals, in the form of COMEX futures contracts, ETFs, swaps derivatives, certificates, unallocated precious metals, etc.), periodic dollar-cost averaging is the preferred method of hoarding precious metals.  It takes the emotions out of attempting to time the exact pricing bottoms, and ensures a steady supply of sound money--an unencumbered, non-fiat currency.  In short, 100% possession is ownership, and not a merely slip of paper or ledger item representing a legal claim to an asset which may or may not exist in someone else's vaults.

Even if said physical gold exists in said vault (in many cases, it does not exist), there are multiple claims against the precious metal, in a dizzying ponzi scheme of rehypothecation.  There are an estimated 100 ounces of paper gold traded for every one ounce of real, physical bullion.

In the context of accumulating physical precious metals vs. trading paper precious metals, technical analysis of charts aren't necessarily aligned with the hoarding objective.  However, if MAY be a viable resource to trigger buying impulses.  I say MAY because in distorted markets (the precious metals asset class is extremely manipulated), technical charts may be rendered less than reliable.

However, technical analysis (TA) can be a useful tool to optimize entry points.  Buying low and selling high is not the objective.  Accumulation (hopefully at lower prices) is the sole objective, if indeed fiat currency dies. With that in mind, here are some candlestick charts which may be of value to analytical types:

According to Gresham's Law, bad money crowds out good money, as good money is hoarded and goes underground, black market-style.  The bad money continues to be re-circulated in a proverbial game of hot potato.  In that scenario, why would one trade in good money (i.e. physical bullion) in exchange for bad money that becomes increasingly worthless (i.e. fiat paper currency)?

The purpose of accumulating precious metals isn't to profit by buying low and selling high.  The aim is to protect purchasing power by possessing an asset which maintains its store of value.  It's a savings account--without the bank as the intermediary.

Having said that, as I declare TA has limited utility in distorted markets, it can also provide some insight into what the big money is doing (suggested by higher volume and accumulation/distribution dichotomies).  And yesterday's and last Friday's technical indicators flash that the big money is buying at these prices.  Now could the smart money be early--and can prices go lower from here?  Absolutely, as many big moves are followed by temporary reversals.  In other words, we could be bouncing off the bottom from here.

But the indicators suggest an inflection point, or a major bottom is at hand.  Of course, going back to 2001, a quick glance at the precious metals charts would reveal we are still in the midst of a secular bull market, with major corrective bottoms in 2008 and 2014.

While silver is the weaker sister to gold, it also has higher upside potential, assuming one can stomach the higher volatility.  Both gold and silver have unique properties, but their monetary value is the common characteristic and the primary reason why they should be accumulated.

Gaddafi gold-for-oil, dollar-doom plans behind Libya 'mission'?

Removing dictators in Iraq and Libya for trying to ditch the petrodollar is one thing.  Doing the same in Iran, Russia, and China is a much bigger proposition.

Gadhafi’s Gold-money Plan Would Have Devastated Dollar

Try ditching the dollar and you go from ally to dead.

Wednesday, November 12, 2014

Gold and Silver Price Manipulation: The “Golden” Cat is Out of The Bag!


Pick out the Chinese Premier, the Russian President, and the US President.

Click on Image to Enlarge

Russia to launch alternative to SWIFT bank transaction system in spring 2015

This is another example of western sanctions against Russia backfiring as they accelerate de-dollarization globally.  The USDollar losing its reserve currency status will be the end of the US as the sole superpower and have adverse effects on the dollar's purchasing power.

For those who are unaware of the SWIFT financial system, one uses SWIFT when wire transferring  funds.

Caught Rigging FX and Gold? Your Punishment Will Be A Bonus Capped At Just 200% Of Your Base Salary

Instead of going to jail for rigging markets, these bankers are punished by having their bonuses limited to 200% on top of their base salaries.

Clear attempt to manipulate precious metals benchmarks at UBS: FINMA

Reuters is normally the lapdog of the financial elite, but it had to report another case of market manipulation, in this case, precious metals.  Barclays, Deutsche Bank and now UBS are the most recent culprits.  Absent are their US bullion bank counterparts.  Surely, no shenanigans occur in US markets.

This Little Piggy Bent The Market

QE isn’t dying, it’s morphing

Monday, November 10, 2014


GRUBER: "Lack of transparency is a huge political advantage."

ObamaCare architect: 'Stupidity' of voters helped bill pass

Deflation comes knocking at the door

The Council Of Foreign Relations Apologizes For The "Greenspan Glitch"

It pays to have a diligent counterbalance against the powers-that-be on the Council of Foreign Relations.  Here's their sheepish apology on the omission of Greenspan's confession of the monetary superiority of gold over USDollars.

Does anybody still believe the financial elite believe in fair markets and transparency?  Ask yourself:  why is the status quo so hostile toward gold--that they would go to extreme lengths to suppress its price and bury its monetary history?  What are they fearful of?

Well done, my fellow gold bugs.

Saturday, November 8, 2014

About America's Sudden Fascination With Hiring Young Women

A recipe for social unrest:  idle, young men.

In Defense of Peter Schiff

This is a great read on several fronts:  Austrian school of economics vs. conventional wisdom Keynesian, contrarian vs. group-think, outsider vs. establishment, outside-the-box thinking vs. insular, etc. and how the masses continue to get fleeced.

Friday, November 7, 2014

Ron Paul: 2-party US political system in reality a monopoly

“What do they do with our young people? They send them all around the world, getting involved in wars and telling them they have to have democratic elections,” he told RT. “But here at home, we don’t have true Democracy. We have a monopoly of ideas that is controlled by the leaders of two parties. And they call it two parties, but it’s really one philosophy.”

Paul Craig Roberts Shocking Interview On Criminality By US Fed

This Will Trigger A Wipeout Of Markets & Economies Worldwide

Greenspan's Stunning Admission: "Gold Is Currency; No Fiat Currency, Including the Dollar, Can Match It"

Listen to the audio on Alan Greenspan, since this particular excerpt was deleted from the official transcripts. It is fully ironic his speech was given at the Council of Foreign Relations (tinfoil conspiracy theorists are rejoicing). There is a reason why his comments were deleted.

The $9 Billion Witness: Meet JPMorgan Chase's Worst Nightmare

Thursday, November 6, 2014

Manipulating the Consumer Price Index: Hedonic Quality Adjustments

Hedonics explained:

If You Really Think It Matters Which Party Controls the Senate, Answer These Questions

The more things change, the more they remain the same.

Ottawa, Beijing strike deal on yuan trading hub

Even our most staunch north American ally is de-dollarizing, near America's own backyard.   Canada has to, for financial survival, as the days of a unipolar reserve currency are numbered.  Of course, everyday Americans will be the last to realize this, as the dollar propaganda machine must propagate USDollar strength by thrashing foreign currencies even more.  This includes destroying the Russian ruble (Ukraine, economic sanctions, crude oil suppression (hat tip to Saudi Arabia)), the yen (QE to infinity (hat tip to Abe-economics)), and the Euro (blowback from constrained Russian energy exports).

In other words, market participants mistakenly still perceive the USDollar as a safe haven asset--the cleanest shirt in the dirty laundry bin.  However, with Chinese bilateral trade agreements in place--including with Russia, the yuan will inevitably play a bigger role in a multi-pollar currency world.  Which is exactly why the PBOC is continuing to purchase gold, to eventually back up the yuan with said gold reserves.

Protecting the global reserve currency status of the dollar is of utmost importance to financial elites because they know US Treasury debt obligations can never be repaid.  However, America's unlimited credit card will one day reach its cul-de-sac, once creditors realize they're left holding the bag.

Pierre Lassonde’s Shocking Comments On Gold & Silver Plunge

Shocking Facts About Today’s Smash In Gold & Silver

Stunning Interview From Market Legend On Gold, Oil & Stocks

“Global Scramble” For Silver - Coins “Hard To Get,” “Premiums Likely To Jump”

Gold, Bonds, & "Maybe History Has Stopped"

Being right--but early, requires patience.

Wednesday, November 5, 2014

Paul Singer Slams The Fake World: "Fake Growth, Fake Money, Fake Jobs, Fake Stability, Fake Inflation Numbers"

Let Them Eat Fried Chicken (If They Vote Democrat)

I know this was a friendly joke, but I wonder if First Lady Laura Bush would have been afforded the same grace if she dared utter these words?

A Peculiar Correlation

Washington’s Blinding Hypocrisy: A Tale Of Two Elections In The Ukraine

The Trouble With Mass Delusions

The Economy Is So "Strong" It Just Cost Obama The Senate

US Mint Sells Out Of Silver Eagles Following "Tremendous" Demand

The smart money is buying physical metals, while the manipulators are selling paper representations of said metals. The US Mint is OUT of inventory for silver.  Get in line.

Tuesday, November 4, 2014

Monday, November 3, 2014

Silver Fraud?

China's Gold Strategy
Therefore the Chinese state has probably accumulated between 20,000 and 30,000 tonnes since 1983.
To put this into context, China officially announced gold holdings of 1,054 tons in 2009.  Many experts speculate China has since added 5,000 tons from mining, imports, and scrap.

Do the math.  Is it 1,054--or is it 30,000 tons?  Given the Chinese preference for secrecy, it's likely the latter.

While Yellen Is Stumped By Inequality, Maserati October Sales Soar By 97%

Election 2014 – Why I Opt Out of Voting

Gold and Silver Smashed: Is the Bottom In?

My recent comments on the smash in gold and silver.

1) gold broke thru major support at $1180, and is stabilizing around $1164.  This is bearish, if you're a short-term trader.  In other words, it could go lower.
2) However, what's positive is the gold mining shares appreciated today, which is bullish for gold, as mining equities--while more volatile, are often leading indicators for the future direction of gold (and silver).

3) silver appears to have bottomed out late last week and is rising today, despite a flat gold price.  This decoupling usually indicates inflection points (in this case, a bottoming).  Perhaps markets are discounting that the economy is recovering (since silver is not only a monetary metal, but also an industrial metal).

4) silver has been beaten up more since the 2011 peak (down 70% from $49), so if it is rebounding, it is bullish for gold also, and its recovery will be more amplified than gold's recovery.  In other words, if a bull market in precious metals resumes, or returns (depending on your time frame), silver will appreciate more and faster (i.e., the gold/silver ratio will narrow).

5) last week's capitulation in silver may indicate exhaustive selling, which means a bottom may have formed.  Having said that, this brutal bear market in silver has experienced many lower lows since the 2011 peak, so catching a falling knife is inherently perilous for short-term traders.

6) for long-term accumulators, these price declines are gifts.  BTFD.
7) we know the precious metals paper markets are manipulated because during these price downdrafts, physical supply dries up.  In normal, functioning markets, price declines are accompanied by a glut of supply.  In this price drop, supply has dried up, as deliveries are pushed out.  This isn't the first time this has happened, but it does indicate the scale of manipulation.  Price discovery mechanisms are completely distorted.  The most money made in any market is when an investor identifies a distortion in price that the market hasn't yet factored in.
It could be an ebola-related stock, a solar company who's fundamentals are flawed (Solyndra), or a company who's about to release a breakthrough product (Apple's Ipod).
8) right now, the fundamentals for gold and silver have never been better.  The cost of extraction keeps rising, to a point where it is no longer profitable to mine gold or silver.  Marginal miners will either shut down or go out of business, further exacerbating future supply shortages.  This occurs with any commodity, whether it's crude oil, DRAM chips, or gold.  Of course, other markets can adapt to supply shortages quicker.  But with energy and mineral resources, re-starting up wells or mining sites takes years.  Supply won't be able to catch up to demand overnight.  This is when moon shots in price will occur.
9) So if you have enough gold and silver (5-10% of net worth), hang on and wait this out.  But if you're still in accumulation mode, these price dips present "golden" opportunities to add to your hoard, and lower your average cost basis.
Happy stacking!

As Gold & Silver Rout Continues, Physical Demand Is Stunning,_Physical_Demand_Is_Stunning.html

The Dallas Fed's Richard Fisher shares key forward guidance

Silver Is One Of The Greatest Opportunities In World History