Friday, June 3, 2016

Friday Job Reports And Its Impact On Gold And Silver Prices

I like to report anomalies because they are sometimes more insightful than status quo trends.  In the past, the monthly Friday job reports were rose-colored, and thus falsely indicating economic growth.  This was a perfect event-driven storm to enable the precious metals "big shorts" to collusively and (illegally) artificially suppress paper gold futures exchanges, instigating a waterfall in gold and silver prices.

The false rationale would be "the economy is growing, so the Fed should start reversing 'zero interest rate policies' and raise interest rates.  This, would in turn, remove the appeal for precious metals since bonds would offer a higher yield.  And sure enough, about 80-90% of the time, government jobs reports on Friday of every month would induce a sharp decline in gold and silver prices approximately 10:30 am New York time on those Fridays.

The fact that this trade was so predictably profitable is a huge red flag that gold and silver markets are hugely manipulated, which the class action lawsuits are now confirming that these are no longer conspiracy theories, but conspiratorial fact.

The usual suspects were the bullion banks operating (surreptitiously as agents for central banks) in London and New York, and the prima facie evidence was the build up of huge short interest on the COMEX futures exchange, in anticipation of said price declines.

I would thus report to you--my friends and clients, to "buy the dip."  More recently, however, the anomalies would occur, where the opposite has occurred:  prices would spike up on jobs report Friday.  Today, that anomaly occurred again.

This may indicate a few points:
1) the big shorts, aka the paper gold and silver price manipulators, may be losing their grip, and the shortage in the (Asian) physical markets are starting to usurp the crooked paper markets.
2) related to point (1), the former big shorts may now be going long to cover their shorts, as they anticipate a growing scarcity in physical markets
3) the "hot money" hedge funds, which are typically "wrong-way Corrigans", are leaning the wrong way again, looking to secure 2016 profits and even going short--just when the precious metals sector is poised to climb again after a correction, which was preceded by the big rally in 2016.  They zig when markets are about to zag--and vice versa.

Cliff Notes version:  despite the normal zigzagging of precious metals, the bottom of December 2015 is in place, and the bullish trend is up, after a brutal 5 year washing out.  Precious metals look poised to continue their secular bull market, whether your time frame is since 2008, 2001, 1971, 1933, or since ancient Egyptian empires dating back 5000-6000 years.

Buying the dips is still a sound strategy, even if the entry points (i.e. jobs report Fridays) are less predictable.  The take away message is if/when the big shorts lose control, the prices of (physical) gold and silver are likely to be unleashed much higher, as they rise to their natural valuation against a sea of endless money printing and debt creation.

See attached charts on the prices of gold and silver this morning.


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