|
June 25 - Gold $1315.60 - Silver $17.72
"There are no markets anymore, just interventions." … Chris
Powell, April 2008
GO GATA!
Friday was a historic one for a number of reasons. One of them leaps off
the charts this morning in our gold/silver sector world.
Due to the unexpected and stunning Brexit vote, the price of gold began to
take off like a cat on a hot tin roof, as you know. At one point gold shot up
just pennies shy of $100 an ounce … a price move that my friend John Embry
has long said is needed to show The Gold Cartel is in the biggest of trouble.
How close that came. Course, the real deal $100 up day has to be on a closing
basis.
The jolting uncertainty over how that vote, and developing ramifications,
will affect the world economic scene created a surge of interest in gold as
the go-to fallout investment play. Zero Hedge reported that on Friday Google
showed something like five times the normal hits on gold as a subject matter.
It seems that interest also reverberated into the investment arena.
The gold and silver open interests are tallied on a daily basis. A
"Preliminary" tabulation of their changes is usually posted late in
the evening with a "Final" number posted mid-morning the following
business day. At times the two numbers can be noticeably different, but for
the most part, they are in decent sync.
Well, the "Preliminary" gold open interest just released
revealed a mind boggling rise of 59,379 contracts to 628,885. The August
contract alone was up 49,124 contracts. Throw out the window any over the top
adjective you want to describe that number, and what took place on Friday,
and it would not do it justice.
A big increase in the gold open interest would be in the 10,000 to 20,000
contract range with a 25,000 increase really registering on the radar screen.
For that number to go up nearly 60,000 contracts puts it into seismic
earthquake category.
Overnight the gold open interest shot up into multi-year high territory by
a huge margin, the latest high being around 608,000. Gold’s all-time high
number is around 650,000 when prices were FAR higher than they are at the
moment.
Meanwhile, to add to the drama the silver open interest, after soaring
into its own all-time high territory by a SIGNIFICANT amount this week, went
surprisingly down 636 contracts to 218,343. My expectation was that it would
have gone up sharply once again. Scratching head time on that score. However,
it is important to keep in mind the silver open interest was already 10% over
its latest all-time high number and 15% over its older all-time high set a
few years ago. And that is with silver prices in the DUMPSTER!
An explanation perhaps. Thursday is First Notice Day for the July silver
contract. The July OI went down 3603 contracts with some spec longs deciding
to take some profits ahead of exit time … especially considering the way the
silver price was under such obvious JPM/Gold Cartel control on Friday, with
the price of gold going bonkers at the same time.
The bottom line: the silver open interest is in all-time high territory,
and gold is on its way there, with the prices of both precious metals
artificially suppressed to very LOW levels. Simplistically, the gold price is
less than half of what it would be if it had kept up with inflation in the
U.S. and silver is nearly 1/3 of a price it was able to reach 36 years ago.
The current gold/silver prices of $1315.60 and $17.72 respectively are
only that low because of the relentless efforts of The Gold Cartel forces.
That their open interest numbers are skyrocketing with prices so low strongly
points out the increasingly desperate situation THEY find themselves in.
More simplicity…
*The world financial situation is in a precarious state.
*Quantitative Easing and low/negative interest rates have been undertaken by
the world powers to stimulate world economic sluggishness.
*Those efforts have really become stale in the tooth.
*Gold is a barometer of U.S., and world, economic health. Down is good, up is
bad. Way up is terrible. Thus the gold price is suppressed over and over
again thanks to the elitist/establishment world.
*Silver is allied with gold. It has been put in the penalty box along with
gold because a noticeable price dichotomy between the two would attract too
much attention to what and why The Gold Cartel is doing to the price of gold.
There have been signs all year that this Gold Cartel is reaching a Tipping
Point in which they will be unable to carry on and be effective at the
current artificially low gold/silver prices … that they are going to be
forced to retreat to MUCH higher price levels to continue their operations …
operations which might even not be viable in the years ahead.
As you know, the mantra here this year is that gold and silver will never
go up again from current price levels until we get a Commercial Signal
Failure … which means The Gold Cartel forces short positions are routed by
price explosions … with the weakest cabal members, and followers, forced to
cover because the financial pain is too great.
The incredibly high gold/silver open interest numbers strongly suggest
that Commercial Signal Failures are getting closer and closer at hand. As
those failures manifest themselves, the prices of both precious metals will
soar. For if a number of THEM are buying, who in the heck is going to be
selling? It certainly won’t be the specs, who based on all of history, will
be adding to their positions, like they are doing now.
POINT: the jolting Brexit vote is VERY likely to be the catalyst which
finally causes Commercial Signal Failures because of the whopping new
interest to buy gold (and silver) all over the world. It is going to be just
TOO MUCH for the bums to deal with.
So, no matter what sort of counterattack The Gold Cartel feels compelled
to launch in the days ahead, it is going to be overrun and fail. As time goes
by these last gasp efforts to keep the gold and silver prices artficially
submerged will look both pitiful and pathetic.
The price of gold is going to soar this year.
As for silver, been pounding my thoughts on the table all week. What THEY
have done to the silver price is probably unprecedented. As a result, it is a
coiled spring that is about to be sprung. Once silver is able to penetrate
$18.50 on the upside, it will open Pandora’s Box. The price action at times
will be similar to what we saw in gold on Thursday with its $10 higher
upticks. Stay tuned!
The price action of the gold/silver shares have been screaming all year that
mega upside price moves are in the works for the precious metals prices. The
correction in the shares have been few and far between. Big Money (perhaps
some of the in-the-know bad guy’s own money) keeps piling in. These savvy
investors know what is coming down the pike and many certainly have a clear
idea that The Gold Cartel’s jig is soon to be up.
If there ever was a time to be all over the precious metals sector, this
is it!
So rule, Britannia -- Britannia, rule thyself
Submitted by cpowell on 02:21PM ET Friday, June 24, 2016. Section: Daily
Dispatches
By Chris Powell
Journal Inquirer, Manchester, Connecticut
Friday, June 24, 2016
http://www.journalinquirer.com/opinion/chris_powell/rule-
britannia----br...
Recognizing that the objective of the European project, ever-closer
political and economic union, meant the destruction of democracy,
sovereignty, and the country's very culture, Britain has voted in a great
referendum to withdraw from the European Union.
The majority arose from a remarkable combination of the free-market,
limited-government political right, the core of the Conservative Party, with
the working-class political left, the core of the Labor Party, both party
cores repudiating their leaderships as well as the national elites.
The result has enormous implications for the United Kingdom, starting with
whether it can remain united, since Scotland - - formerly the most
industrious and inventive province in the world, now perhaps the most
welfare-addled -- probably will make a second attempt to secede, figuring
that free stuff is more likely to flow through continued association with the
EU than with England, which is growing resentful of the freeloaders up north.
But there are enormous implications for the world as well. The EU project
never has won forthright ratification by the people of its member states and
indeed has sometimes refused to accept rejection by them. Indeed, the whole
EU government is largely unaccountable. So the British vote quickly prompted
demands for similar referendums in France and the Netherlands, where
conservative populist movements have been gaining strength.
The politically correct elites are portraying the British vote as a
"xenophobic" response to free movement of labor across the EU and
particularly as opposition to the vast recent immigration into Europe from
the Middle East and Africa. This immigration is widely misunderstood as being
mainly a matter of refugees from civil war. In fact this immigration has been
mainly economic and it has driven wages down in less-skilled jobs while
increasing welfare costs throughout Europe, which explains the British
Laborite support for leaving the EU.
But it is not "xenophobic" to oppose the uncontrolled and indeed
anarchic immigration the European Union has countenanced. For any nation that
cannot control immigration isnt a nation at all or wont be one for long.
Since most immigration into Europe lately has come from a medieval and
essentially fascist culture and involves people who have little interest in
assimilating into a democratic and secular society, this immigration has
threatened to destroy Europe as it has understood itself. Britain has been
lucky to be at the far end of this immigration, but voters there saw the mess
it has been making on the other side of the Channel. They wisely opted to
reassert control of their borders.
Their example should be appreciated in the United States, which for
decades has failed to enforce its own immigration law and as a result hosts
more than 10 million people living in the country illegally and unscreened.
Fortunately few of this country's illegal immigrants come from a culture that
believes in murdering homosexuals, oppressing women, and monopolizing
religion. But the negative economic and social effects here are similar to
those in Europe and properly have become political issues.
The main lesson of Britain's decision may be an old one - - that nations
have to develop organically, arising from the consent of the governed and a
common culture, and that they can't be manufactured by elites. Having
defended its sovereignty and indeed liberty itself against Napoleon and
Hitler, Britain now has set out to defend them again. So rule, Britannia --
Britannia, rule thyself.
The nations not so blest as thee
Must in their turn to tyrants fall,
While thou shalt flourish great and free,
The dread and envy of them all.
-----
Chris Powell is managing editor of the Journal Inquirer.
GATA BE IN IT TO WIN IT!
MIDAS
|
