In May, I will have spent 14 treacherous years fighting the gold and
silver Cartel – financially, professionally, and mentally. The toll it
has taken is incalculable, as I cannot remember when I last had peace of
mind. Being right – and for the right reasons – but punished for
it on a daily basis, is a difficult way to live. But hey, life is hard, and we
all have our own demons to deal with.
Fortunately, my deep financial commitment, unwavering devotion to truth,
and personal fear of failure have driven me to turn this lemon into lemonade
– in making the quest to “beat” the Cartel, and help others do so as well –
my raison d’etre, both personally and professionally. And at
Miles Franklin, I have the perfect platform to accomplish this eminently
reachable goal, of an inevitably successful end.
Days like yesterday are particularly difficult to deal with – as quite
obviously, the “powers that be” were intent to do everything in their
manipulative power to prevent Precious Metals prices from reflecting the
explosive demand surge they experienced after the ECB’s insane, catastrophically
botched money-printing announcement. To that end, the days leading
up to Thursday’s announcement were among the most blatantly suppressed PM
days I can remember. That is, until the statement was actually released
Thursday morning at 7:45 AM EST, when gold owners were forced to endure a
$15/oz waterfall decline, as the ECB essentially made the most
hyperinflationary announcement imaginable – far more so than even Wall
Street’s “analysts” expected. I kid you not, I was pounding the screen
of my Stair Climber at the gym when I watched it, I was so angry.
When prices finally rallied, as they decidedly should have, they were
capped at the 10:00 AM EST close of the global physical markets; and subsequently,
the Cartel attempted to incite a day-end plunge. They failed to do so –
and maniacal capping irrespective, gold closed at a new 52-week high.
After which, it attempted to re-assert itself in the Globex market, which the
Cartel NEVER allows to happen. And sure enough, just after gold pushed
above $1,280/oz, the Cartel knocked it back down with a patented “Cartel
Herald” algorithm – followed by another at the tried-and-true “2:15” AM EST
open of the London paper “pre-market” session (for the 611th time
in the past 703 trading days); and 3:30 AM EST for good measure.
Meanwhile, the PPT was desperately pushing stocks back up, reversing Europe’s
2% plunge of the day before, despite the fact that the Euro was still – and
still is – significantly higher than when Draghi announced his
plan to devalue it.
As we hit 10 AM EST – again, when global physical markets close –
gold was down just $2/oz on the day, whilst silver was up $0.10/oz.
Clearly, demand couldn’t be stronger, making it extremely difficult for a
Cartel that, despite its best efforts, has been getting annihilated lately,
after having long since lost the battle with the world’s 180 non-dollar
currencies. Thus, with the weekend looming – when investors do their
most financial reading – they decided to go for broke; first, in “waterfall
declining” gold from $1,269 to $1,259 in a matter of minutes; and then, with
gold down roughly $11/oz on the day, and silver up $0.05/oz, they
viciously attacked in the final 30 minutes of NYSE trading, taking gold down
another $9/oz, and silver $0.15/oz. All this, with not another market,
of any kind, making a material movement. All in all, gold held the
$1,250/oz level like a champ, and silver ended just $0.09/oz lower, setting
up its gold-validating “golden cross” (50 DMA crossing above the 200 DMA) in
the next week or two. However, sentimental damage was certainly
achieved – as yet again, the can was kicked a few more inches.
Why do I provide such detail, you ask? So that you understand there
are people – like me – that understand EXACTLY what is going on, and
why. I know it’s difficult to deal with, but it’s the reality of the
world. Which, I might add, has resulted in gold prices in nearly all
currencies at, above, or nearly at previous all-time high levels. And
which, I assure you, will ultimately occur at the epicenter of Cartel
manipulation as well, the U.S. dollar-priced market. And yes, silver
will ultimately outperform gold – as it is far more undervalued, and far
more scarce.
I mean, think about what occurred this week alone! China essentially
announced it will be nationalizing all bad corporate debt – which will only
make its historically unwieldy balance sheet that much more dangerous, at a
time when capital is rapidly flowing out of the country. Next, the ECB
“crapped the bed” in announcing the most negative interest rates ever; a 33%
increase in its QE program, to a level greater than even the Fed’s “QE3”; and
even included corporate bonds in its “monetization list” – which ironically,
will only reduce global liquidity further, as it inexorably
declines to the systemically catastrophic levels of the 2008
crisis. Yet, it not only failed to “fight deflation” by devaluing the
Euro as intended, but made it worse, as the Euro didn’t plunge – but
to the contrary, soared.
In other words, like the Fed before it – in botching its December “rate
hike”; and the BOJ in January, which saw the Yen surge after
unexpectedly taking rates negative; Central bank credibility has decidedly,
and permanently, been lost. This, amidst a global economy worse
than anything seen in generations, as exemplified by the 25%
year-over-year plunge in China’s February exports. In other words,
all that remains in the “powers that be’s” all but spent ammunition depot are
the unabashed, increasingly obvious manipulations of global PPTs, Central
banks, and the gold Cartel.
I mean, consider the fact that at the heart of the Cartel manipulation,
the New York COMEX, essentially all the registered gold inventory has
vanished in just three
years time – and in silver’s case, 12
months! Meanwhile, GLD’s ETF buying has so powerfully increased –
as institutional
demand has returned with a vengeance – that it’s like a whole new China
has entered a market already in deficit. Heck, the past two
weeks, the entire Indian market has essentially been closed by a jeweler’s
strike – protesting yet another round of draconian government attempts to
limit Indian gold buying, which will ultimately fail; and still, dollar-priced
gold powered to a new 52-week high Thursday night; whilst in Rupees, gold has
surged to within 14% of its all-time high, even after yesterday’s
Cartel raid. As for silver, per what I wrote in this week’s “Admiral
Sprott rides again!,” it’s just a matter of time before the PSLV
closed-end fund does a Cartel-busting secondary offering (enabling a massive
physical silver market purchase) – as despite the Cartel’s best efforts,
which I first predicted three
years ago – the PSLV’s premium to net asset value has risen back to 4.5%!
As for the COMEX “commercials” – i.e., the Cartel – consider the fact that
over the past three months, they have gone on their most maniacal naked
shorting spree of the entire 16-year bull market; exceeding even their failed
gambit in late 2008 – when in a desperate attempt to prevent gold from being
seen as the safe haven it always has been, and always will be, it
inadvertently caused supply to vanish, and physical premiums to
explode. So for those that think the Cartel “always wins,”
consider that they have (naked) shorted an astonishing 192,000 contracts
since the beginning of December, worth $25 billion, or 20% of annual
worldwide gold production. And what has gold done during that
time? Well, it just went from $1,050 to $1,280 as of 24 hours ago, and
$1,250 following yesterday’s vicious late-day Cartel raid. In other
words, they have been blown out of the water; and even the most skeptical,
jaded market watcher will realize what they are doing if they attempt to
raise their short position further, amidst not only exploding physical
demand, but exploding reasons for such demand – such as
hyperinflationary Central bank announcements like the ECBs!
What I’m trying to say is that I’ve learned a LOT in my 27 year career –
particularly, the 14 years I have been following Precious Metals, day by day,
and tick by tick. Consequently, the “culmination of everything I know”
tells me the “powers that be’s” manipulative grip over financial markets –
and with it, economic perception – is being rapidly lost. And no more
so than in the Precious Metal markets, where real money is starting to
re-assert itself after having been suppressed by a century of government
price-fixing, and four decades of a banker-enforced “fiat currency
standard.” This is not to say we’ll awaken Monday morning to the
Cartel’s demise; but rather, that not only has the bottom been put in, but
the manipulative chains that have imprisoned Precious Metals for the past 15
years are slowly but surely breaking – potentially, to shatter at any
moment. This is why, more than ever, the urgency to PROTECT oneself
from what’s inevitably coming is so powerful.
