- Jobs report day is this Friday. 8:30am is
when the “big news” gets released. How big this news ever
really is for gold, I’m not so sure. Regardless, gold can take a
hit going into that report, and then blast upwards after it’s
- Some of you have
wondered if the banksters have successfully
painted a head and shoulders top pattern on the gold chart. Click here now
to view that possible chart pattern, using my OHLC (open, high, low, close) bar chart.
- Notice that
I’ve done the annotations in blue. Click here now
to view the same chart, but using the daily closing
prices. There’s no question, if you are obsessed with ants
and their movements, that there is a h&s shape apparent on this chart.
- The reason I use
blue colour to highlight the action is because
I want you to think hard about the mindset of the Asian gold investor.
Flip trading gold to make photocopied dollars is not the winning ticket
in this crisis, to put it mildly. This is a crisis that has barely
started, in terms of the total amount of public investor wealth
- The Western world
gold investor generally has an overall goal of building dollars with a
fixed amount of gold. The theory is that the value of almost
everything else will decline against gold, thereby enhancing their relative
- In contrast, the
Asian investor seeks to use paper currency to build ounces of wealth.
Their unending goal is to get more gold. Thus, the blue coloured annotations are geared towards the Asian
investor. The question is, are these annotations also
geared towards…. you?
- In the West, because
most investors don’t really understand what gold is, real gold
sales are met with substantial fear, panic, and even all-out
- The investor focused
on building ounces of wealth will always vastly outperform the investor
who seeks to build dollars of wealth, both in terms of numbers of ounces
accumulated, and in terms of dollar wealth valuation. That investor will
also sleep better and carry themselves in a much calmer and more
rational manner during the business day.
- Gold already
is the ultimate wealth. Its valuation in dollars is
secondary to “what it is”. When you treat gold
financially, as a sculptor would treat it physically, you can create a
phenomenal statue of wealth. When you hack at it like a vandal
obsessed with dollar valuation, you may find yourself in
“financial jail”, which in this crisis means… the
breadline. This crisis is fuelled by a quadrillion dollar OTC
derivatives implosion. It is like no other.
- This crisis can only
be ended by a massive revaluation of gold, either directly, or through
money printing as the official policy of the US Treasury & Federal
Reserve. The bottom line is that the crisis can’t be solved,
but it can be ended. It ends with the marking to market of the real
balance sheet of the world, which means the average person is marked to extreme
- Selling what gold
you have now, in size, to “get it cheaper”, demonstrates a complete
lack of understanding of what gold is, what this crisis is, and is an
act of absolute stupidity.
- Similar actions have
brought nothing but overall harm from $250-$1900, and they will bring
exponentially greater harm going forwards, with “breadline
time” now on the table as the real downside risk for the
world’s flip traders who insist on engaging in dollar-obsessed
- Now is a time to
trade less, appreciate more, and embrace all gold sales. Don’t
predict a gold sale. Appreciate it when it happens. Warren Buffett is
reputed to turn on the stereo and dance when the stock market goes on
sale. If he knew what gold really is, when it goes on sale he
would probably make Fred Astaire look like a lousy dancer.
The bottom line for you is that it’s time to throw the red
annotation pen in the garbage can, and get onside with a billion Asians who
understand the nature of government, and understand the nature of
- Maybe that micro
shape on the gold chart is a h&s top pattern, or maybe it’s just a
meaningless shape. What if gold blasts to $3000 in a month? How would
you feel with little or none? You’ve already shaved off some gold
into massive price strength. Should you get a sale in price, you buy.
- If not, who cares?
Not you, because your superb core positions are fully intact.
Stop dictating to the Asians about where gold’s price might go,
and start listening to their actions. They aren’t selling
any gold in size now in this all-epic crisis, “because
it might go on sale later”. Don’t mangle your
gold. Sculpt it. The Asians have thousands of years of experience
dealing with destroyed empires, banksters, and
government currency gone off the board. Do you?
- Would you saw the
head off Michelangelo’s statue of David? No.
Don’t saw the head off of your statue of gold.
That’s why I built my pyramid generator, so you can sculpt your
gold wealth, rather than attack it, maul it, and order it around.
Most of you are starting to learn that the gold punisher isn’t so
keen on taking orders from the dollar bugs, and you’ve only got a
tiny taste of her wrath.
- Now, let’s
talk about gold stocks, and how rich they are going to make you!
Click here now to
view my GDX volume box chart. The chart annotation facility is not
accurate enough to clearly delineate each box, but the point of the
matter is that on price surges, volume is also surging.
- On price flops,
volume also flops. The exact opposite situation is occurring in the Dow.
Click here now
to view the horrific volume patterns on the Dow chart.
- We’re on the
cusp of crash season (the months of September and October) for the Dow,
and you can clearly see that each solid down day and minor down move is
accompanied by powerful sell volume.
- The volume on
yesterday’s “relief rally” up day can only be
described as pathetic. So, you have a few choices. You can buy
the Dow now, on the cusp of financial hurricane season, and
risk getting destroyed.
- You could short the
Dow. That’s initially appealing to many gold community investors,
but what, exactly, are you buying when you short the Dow? That’s
correct, you are buying the dollar. You’re really just buying a
bet, rather an asset. Is it really wise to try to build dollars with
bets rather than solid assets? No!
- The other choice is
to buy gold stock assets that are currently sitting on a foundation of a
$1700 + gold price, and are exhibiting superb trading volume patterns.
- The one thing you
don’t want to do is throw your gold in the garbage can because of
anything you see on any chart. Or, should I say, that’s the one
thing no self-respecting Asian gold investor would think of doing, and
it’s something you are going to have to come to grips with.
- My suggestion is to
come to grips with it, and join these golden masters in market action!
Get a blue pen out, highlight where you might get more gold on
sale, and if it happens, wonderful! If not, enjoy the ride on towards