Wednesday, October 21, 2020

Multiple Banks are Bullish on Gold and Silver

A consensus usually makes me nervous, as groupthink can often be wrong.  But investment and commercial banks are seeing what's painfully obvious:  money printing by central banks is on steroids.

Gold price to surge past $3,000 says Bank of America:

Goldman Sachs says gold will surge another 20% and hit $2,300 in the next year, driven by rock-bottom interest rates:

Could Investing in Gold Add a New Dimension to Your Portfolio?

UBS ‘very bullish’ on gold as bank expects bullion price to surge higher:
Silver to Benefit From Global Solar Surge. It’s Time to Buy Again, Goldman Sachs Says.

Biden's 'green stimulus' would send silver soaring to $50: Bank of America:

Thursday, September 3, 2020

Jobs Friday (and Its Effect on Gold and Silver)

 I posted this on September 1, 2017 regarding "jobs Friday."  It's still relevant today, even as gold and silver plummet on the Thursday before Jobs Friday tomorrow.

My letter to clients:

I posted this two days ago on Facebook and LinkedIn, and it's a shared memory from September 1, 2017.

Shorting the precious metals complex worked 80% of the time on Jobs Friday.
"Jobs reports came out today, specifically nonfarm payrolls. Which probably means the manipulators are going to monkey-hammer gold and silver down. And if they don't, that means they've lost control of the physical markets, which will happen at some point. Probably not today tho. The conventional wisdom is if the jobs picture is rosy, that means the economy is healthy which results in a strong dollar. Hence, gold should drop. The real reason is it gives the bullion bank cartel an opportunity to collusively plummet gold by swarming the COMEX exchange with sell orders. If a trade is that predictable, you know the market is rigged."

Today is Thursday, September 3, 2020, and gold and silver are already hammered.  Could the Big Shorts be front-running the normal Jobs Friday bear raid?  Perhaps, so I went long today, and looking to go long more tomorrow if further drops occur.  BTFD.

Again, gold and silver usually get hammered on the first Friday of every month by the Big Shorts who manipulate the futures and spot markets.  It's a collusive group who are being prosecuted by the Department of Justice, and in some cases, under RICO statutes.  The DOJ has declared the JPMorgan metals trading desk a "criminal enterprise" in other words.  Other banks have also been paying fines and "cooperating" with the DOJ, presumably to avoid jail time.  THIS IS NO LONGER CONSPIRACY THEORY, BUT FACT.

These investigations are targeting mid- and low-level traders spoofing markets.  They really don't address the larger issues:  these bullion banks are acting on behalf of the Fed and other central banks to surreptitiously suppress gold and silver prices.  These manipulations are coming from the top of the food chain.  It is also happening in the Bitcoin COMEX futures market, as the former CFTC publicly admitted.  We definitely live in strange (and treacherous) times. 

Remember:  history doesn't repeat, but it often rhymes.  This plunge in prices from the precious metals complex occurs approximately 80% of the time, so it is not random.  If folks are catching on and front running the move, the trade may lose its effectiveness on Jobs Friday and is now occurring the day before.  In any case, today and tomorrow may be good opportunities to add to your long positions.

Good luck to all!


Sunday, July 26, 2020

When to Exit Precious Metals Equities

When mining shares reach a P/E of 50, sell and rotate into utilities, which could be yielding 15%.

Precious metals mining equities are the last to enter into a bull market, and utilities are the first to enter into the next cycle.

Friday, June 12, 2020

FT's John Dizard: The global gold market is breaking up

I didn't know this.

Vietnam is among the top three gold trading countries, with 60 to 70 tonnes per year, and only behind Thailand and Indonesia with 80 to 90 tonnes per year. Over the years Vietnamese have imported nearly 850 tonnes of gold.

Sunday, May 24, 2020

Around the Block #4: on the recent market crash and Bitcoin’s value proposition

With any major crash, the levered small speculators end up liquidating their holdings to the strong hands (whales) who are buying at a huge discount.  This certainly happened with physical gold and silver (I was in the epicenter of that space as large orders poured in), and it happened on Black Thursday with Bitcoin.