Gold at a 3
½ month low.
Gold
and silver step over a cliff.
One can almost see the smirks, and hear the chuckles of
glee, as the mainstream flock crows their news.
What is missing from all the gold (and silver) bashing is one, small detail:
a reason. Yes, sift through the Corporate media muck, and one will see
explanations: “a stronger dollar” or “fears of a Fed rate increase”.
Infantile nonsense.
A stronger dollar? Gold was down over 3%. Silver was down
over 5%. The dollar gained no more than a fraction of 1% against
international currencies, except for the pound, which is currently in the
Brexit penalty box. That’s not a reason.
Fears of a Fed rate increase? That’s not a reason, that’s
not even a
good joke . “The Fed promises a rate increase”? That happens every day.
The Fed actually raises interest rates? That’s happened once in eight
years. Can you say “token increase”? Why not just write that gold and silver
are lower because of fears of a sasquatch attack? The two events have roughly
equal probability.
As has been stated in these commentaries before; there is
only one way we will ever see the Federal Reserve engage in a meaningful
increase in interest rates (i.e. more than once every eight years). That will
be if their Masters at the
One Bank give them the command – and the purpose of that command will be
to torpedo the asset bubbles which this crime syndicate has spent eight years
inflating.
Gold and silver have fallen off a cliff. The price of
gold is at a 3-month low, and there is absolutely no reason or explanation
for this latest ambush. Sound familiar? It should. Investors in this sector
spent more than 5 ½ years watching days like this – and listening to the
non-reasons from the mainstream drones. That period was previously dubbed Hostage
Markets .
Many commentators in the Alternative Media will now start
to proclaim that “the rally is over.” Few will acknowledge that it never
began. This was the correct explanation when readers first began seeing the
term “fake rally” in these commentaries seven months ago. It is the obvious
explanation today.
Equally obvious is the reason for this fake rally, i.e.
an upward price-fixing operation. The asset bubbles across the Western world
are already so grossly over-inflated, and so rancid with age that only the
near-omnipotent market
manipulating machinery of the One Bank has been able to hold them intact
this long.
Western equity markets and bond markets are at
obvious bubble levels. U.S. bond and equity markets are at simultaneous
all-time highs – and that’s not even supposed to be theoretically possible.
There is no more money to be made by this crime syndicate
prolonging the life of these asset bubbles any longer. The vast majority of
the ‘money’ in these markets belongs to the One Bank itself, the mountains of
counterfeit
funny-money which it has needed to deploy to first create these impossible
bubbles , and then keep them inflated beyond any iota of rationality.
The Next
Crash must occur soon because it is “good for business”: the business of
organized crime. When that scheduled crash occurs, it is an absolute
imperative in the minds of the banking crime syndicate that precious metals
prices must simultaneously fall, as well – lest they be perceived by Western
sheep as the safe havens which most of the world knows them to be.
But you can’t “crash” markets which are already at
rock-bottom prices, thus the necessity of the Fake Rally: a small climb
before a big fall. The Next Crash must happen, equally a Fake Rally had to
precede it. That upward price-fixing operation is now over, leaving two
scenarios moving forward.
The first scenario is that (finally) the detonation of the
Next Crash is nigh at hand. Gold and silver prices will now bounce steadily
lower, either slightly preceding a broader crash, or simultaneous with it.
The other scenario is that we could see some ludicrous holding pattern, if
(for some reason) the banksters still aren’t ready to sheer the Sheep.
In the second scenario, we’ll see gold and silver prices
(pathetically) inch higher most days, but then we will see periodic
ambush-days like today, where all the price gains of several weeks are erased
in one day. Indeed, given their Machiavellian tendencies, we might even see
the banksters play this game for several months – just to see how long the
chumps in the Alternative Media continue to call this “a rally”.
There have never been any sound reasons to characterize
this upward price-fixing operation as a rally. After the price of silver had
been driven down by roughly 75% from its 2011 high, and the price of gold had
been driven lower by more than 40%, silver has recovered about 20% of that
lost ground. Gold recovered only about 1/3 rd of its lost ground.
Pathetic. Ridiculous. In any real rally, the price of
gold and silver would already be hitting new highs, or at least closing in on
those numbers – as the first step toward rational prices for these metals. A previous
commentary calculated how long it would have taken gold and silver to
reach fair/rational prices, at the rate of the current “rally”: about 25
years.
It would take gold and silver nearly 8 years just to get
to the minimum prices which these metals should have reached, by 2014.
Sadly, it has been so long since we saw anything close to a real rally in
this sector that (apparently) few analysts even know what a real rally would
look like.
Equally, for the last three months we have seen a
decisive change in the slant of most of the mainstream propaganda (for lack
of a better word). The unabashed, and unqualified enthusiasm for gold and
silver has long disappeared. In its place is exactly the same gold-bashing
(and silver-bashing) propaganda which we saw during the 5 ½ years of
relentless, downward manipulation.
The Fed is going to raise interest rates.
Even if these Liars finally kept one of their promises,
the Federal Reserve is starting from (literally) near-zero. Every week that
interest rates remained at ultra-low/ultra-insane levels, gold and silver
prices should have been catapulting higher – catching (and quickly passing)
valuations of the bubble-markets.
This is what we were told by the bankers themselves, year
after year. “Low interest rates are good for gold.” Well, interest rates have
been the lowest in history (in the West) for eight years, and during two
thirds of that time, precious metals prices have been steadily falling.
There was never a reason for the really rally that ended
in 2011 to have ended, at all. The Bernanke
Helicopter Drop was still in full swing (the official helicopter
drop). Interest rates were/are frozen at near-zero, 0%, and now negative
levels. A real rally couldn’t begin today in precious metals until gold and
silver surpassed their 2011 highs, and then began to catch up on the six
additional years of rising prices which we should have already seen.
The only way to characterize as a rally the anemic rise
in precious metals prices in 2016 is if one knows nothing at all about
precious metals fundamentals. This latest ambush was as severe and irrational
as those we saw again and again and again from 2011 through the end of 2015.
Any spectators who did not already recognize what was really going on in
these markets should have had their rose-coloured glasses ripped off today.
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Jeff Nielson is co-founder and managing partner of
Bullion Bulls Canada; a website which provides precious metals commentary,
economic analysis, and mining information to readers and investors. Jeff
originally came to the precious metals sector as an investor around the
middle of last decade, but with a background in economics and law, he soon
decided this was where he wanted to make the focus of his career. His
website is www.bullionbullscanada.com.
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The views and opinions expressed in this material are
those of the author as of the publication date, are subject to change and may
not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does
not guarantee the accuracy, completeness, timeliness and reliability of the
information or any results from its use.
