Evidence is mounting that the Deep State (DS) is starting to lose the
dirtiest financial war in history: their War on Gold. More deeply, it is a war
against something the Deep State profoundly loathes: personal financial
liberty. The War on Gold, which has raged for 37+ years, has generated more
than $1 trillion in criminal profits for the Deep State plunderers, while
costing the worldwide owners of physical gold multiple trillions of dollars.
All of this is coming to an end.
Due to its criminal hyper-manipulation, gold’s price has become a paradox:
its weakness actually reflects its strength. With everything that has been
thrown at it, it is astounding that its price is anything north of zero. The
fact that it has been resilient at around $1,200.00 per ounce should concern
the manipulators, because if this is as low as they can take it despite their
full-spectrum, multi-billion dollar assault against it, then it is defeating
them. Which is not surprising. By every conceivable, objective financial and
monetary measure, gold is one of the most underpriced assets on earth. It is
not going to stay that way. (Most of the dynamics we will discuss also apply
to silver, but to streamline this article, we will focus on gold.)
The Deep State’s first strategic objective in the War on Gold has been to
steal as much money as possible by conspiratorially rigging its price. They
have perpetrated this crime in the full knowledge that it will never be
investigated or prosecuted, because it is state sponsored. The Deep State is
the state, and never prosecutes itself for its own crimes, no matter how
flagrant and egregious they are.
The second, broader strategic objective has been to discredit gold as a
monetary asset and safe financial haven throughout the west. The Deep State
realized at the outset of the war that it would be impossible to achieve this
in the east, which has a deep, cultural affinity for gold, so they have
confined this gambit the west.
There are eight primary tactics in the War on Gold. Seven of them are
generally known by those who study the gold market; one of them is little
known or appreciated. The unknown tactic is actually the most important and
effective tactic of all, while also being the Deep State’s Achilles’ heel.
The tactics in the War on Gold are:
1) Randomly and unpredictably attack the gold price in the futures
markets, producing large price whipsaws, investor losses, and a generalized
spirit of price uncertainty, danger and concern; over time, make existing and
prospective investors view the market as a corrupt casino rigged against
them, causing them to capitulate and leave the field;
2) Employ the most advanced, covert “Black Psychological Operations”
(PsyOps) methods, customized for the financial sector by the CIA’s Division
of Psychological Warfare, the Fed, the Treasury, the ECB and the BIS, to
destroy gold sentiment in the west. As part of this campaign, use the
Mainstream Financial Media (MFM) to conduct a continual propaganda campaign
denigrating gold in every respect, destroying interest in it;
3) Fraudulently overstate official holdings to create the illusion of
massive supply overhang;
4) Sterilize investment funds by steering them into non-auditable paper
proxies (e.g., ETFs);
5) Weaken, then destroy the dealer network by killing product demand,
spiking dealer costs (e.g., required hedging against relentless price
volatility), causing large unhedged losses, demonizing dealers as money
launderers and crooks, and wiping out profitability / business viability;
6) Financially weaken miners via crushed prices, making them dependent
upon bullion bank (DS) financing and debt, and forcing them to comply with
bullion bank orders;
7) Paint phony price charts that enable the “financial services industry”
(stock brokers, investment advisers, bankers, etc.) to make gold investing
appear stupid, and talk people out of buying gold, particularly in physical
form; if this fails, sterilize investment funds by steering them into phony,
paper gold;
8) Create a marketing blackout throughout the west (which is the Achilles’
heel).
Tactics #1 and 8 are the subject of this article, because they are
inextricably linked. It would be impossible for the Deep State to employ
Tactic #1 if it were not for their simultaneous use of Tactic #8.
As we know, Tactic #1 has been carried out by years’ worth of massive,
unpredictably-timed, electronic, naked-short price attacks primarily
conducted on the Comex, the Deep State’s captured and non-regulated Command
and Control Center. GATA has long documented in exquisite and laudable detail
the gold price-rigging scandal, and Deutsche Bank’s admission in late 2016
that they and numerous other major banks manipulated the gold market for
years ended, once and for all, any possible doubt about gold market
corruption.
As is typical in Deep State-sponsored financial crimes, none of the Deep
State criminals ever goes to jail; instead, they simply pay fines to the Deep
State itself. Deep State criminality is a closed system of plunder from which
the profits never leave; they merely circulate from one Deep State pocket to
another.
Tactic #8, the complete lack of industry-sponsored gold marketing
throughout the west, is a crucial component of the War on Gold. Without
Tactic #8, the Deep State would be incapable of employing Tactic #1, because
the criminalized, fractional reserve gold exchanges, primarily the Comex,
would no longer exist. They would no longer exist because they would be
unable to source even the minimal amount of physical gold required to create
the false illusion of legitimacy, which would fully expose them as being
nothing but the paper metal frauds they already are for all intents and
purposes.
According to the Mainstream Financial Media, gold is a “commodity.” This
deliberate mischaracterization of gold is intended to deflect attention away
from its unparalleled monetary importance, and make it appear no different in
nature from corn, natural gas or pork bellies. Rarely has a greater monetary
lie ever been perpetuated.
Gold is not a commodity; it is the world’s only natural and universal
money, and therefore its pre-eminent consumer product. From the time of its
discovery over 6,000 years ago, human beings have instinctively realized that
gold is incomparable as pure, honest, incorruptible, reliable, functional,
lasting, valuable, and true money and wealth. This is precisely why the Deep
State swindlers despise it. It is the antithesis of the immoral, baseless,
corrupt, predatory, fraudulent fiat currencies they endlessly and
parasitically counterfeit into oblivion at extraordinary profit to themselves
and crushing expense to their victims, the people.
Providers of consumer products and services know that their offerings must
be marketed. Not even the best of them sell themselves; they must be sold.
In 2016 alone, corporate managements worldwide spent over $1 trillion to
advertise and promote their goods and services. They paid this astronomical
sum because they know that marketing is indispensable to commercial success.
Marketing is not an expense; it is an investment in profit.
We all recognize the phrases marketers have created to bring their
products to life: “Just Do It,” “Don’t Leave Home without It,” “The Ultimate
Driving Machine,” “Everywhere You Want to Be;” “Good to the Last Drop,”
“Where’s the Beef?,” “Be All You Can Be,” “I Love New York,” “We Bring Good
Things to Life,” “Think Different,” “Like a Good Neighbor, …;” “When it
Absolutely, Positively Has to be There Overnight,” “We Try Harder,” “Diamonds
are Forever,” among so many memorable others.
There is only one consumer product industry we can identify that does absolutely
nothing to develop its market: gold mining. For decades, the miners have
refused to lift a finger to promote gold. (Their appointment long ago of the
World Gold Council as a marketing agent has been a complete disaster, and its
dreary saga could be an article all its own.) This refusal constitutes a
colossal rejection by them of the most important business function of all and
a total abdication of their fiduciary obligation to shareholders. As a result
of the miners’ persistent and indefensible refusal to market gold, western
consumer demand for it is a fraction of what it could and should be.
We cannot find one senior gold mining corporation that includes in its top
executive ranks a Chief Marketing Officer, or any role even resembling it.
While we do find senior executives in: “Exploration,” “Operations,” “Investor
Relations,” “Technology,” “Corporate Development,” “Regulatory Affairs,”
Legal (“General Counsel,” “Compliance”), Finance (“Chief Financial Officer”),
“Mergers and Acquisitions,” “Tax,” “Sustainability,” “Human Resources,” and
“Strategy,” the marketing function is completely absent throughout senior
miner top management. This is unprecedented in consumer commerce.
The miners’ refusal to market their product is so idiotic that it must be
deliberate. It is impossible that such self-destructive commercial stupidity
could come naturally to even one senior mining executive, let alone the
entire set of executives in the senior gold mining industry, particularly
given its extremely negative consequences.
This begs the questions: What is going on here? Why do the gold miners
deliberately refuse to market gold, even though it is obvious that market
demand and price for it have severely suffered as a result? Why do they
deliberately destroy enterprise and shareholder value by ignoring the most
important function in consumer commerce: marketing? Why do they willfully and
knowingly repudiate their fiduciary obligations to shareholders, creating in
the process potentially serious legal liabilities for themselves and their
corporations? And why do all senior miners walk in such lunatic lock step
when it comes to their refusal to market?
Executives at the senior mining companies have a long history of enriching
themselves with lavish pay, benefits, pensions and stock options while at the
same time stabbing their shareholders in the back. For example, their
“forward hedging strategy,” conducted at the behest of and in full
collaboration with the bullion banks during the brutal, 22 year gold bear
market (1980 – 2001) savaged the prices of gold and mining shares. All the
while, rich, no-lose compensation packages for mining executives were written
around pre-arranged and hedged gold prices. The shareholders got screwed as
the executives got rich. As we can see today, nothing has changed.
The miners’ excuse for their multi-decade failure to develop the gold
market is that it is “just a commodity,” and no one markets those. Even if we
agreed that gold is a commodity, which we adamantly do not for the reasons
explained above, the excuse is not credible. In 1993, on a meager annual
budget of only $23 million, one of the most successful advertising campaigns
of all times was launched for a so-called commodity: “Got Milk?”
If creative advertising could make milk exciting, which
it did, imagine what it could do to increase interest in and demand for gold.
So what’s the problem here? Why is no one in the gold mining industry willing
to give marketing a try? What, possibly, have they got to lose, other than
the dismal gold price and multi-billions of corporate losses their marketing
incompetence has produced over the past 37 years? More specifically, what is
it about marketing gold’s incomparable monetary virtues that paralyzes them?
It is obvious that the senior mining executives are not working for shareholders.
So for whom are they working?
The only logical answer we can provide is that the senior miners are
direct allies in the Deep State’s War on Gold. By employing Tactic #8, the
traitorous miners have damaged gold demand as much as the criminals who use
Tactic #1 have damaged its price.
The financial cost of the senior miners’ complicity in the War on Gold is
astronomical. From 1980 through 2016, excluding China and Russia,
approximately 79,000 metric tonnes, or 2.5 billion ounces of gold were mined.
During the 1980 – 2001 bear market, gold was virtually given away by the
miners for nothing, reaching dirt-cheap, double-bottomed prices of only $250
per ounce in 1999 and 2001. In the bear market that started in 2011 and
continues to this day, gold has plunged from an inflation adjusted 2011 high
of $2,081 to today’s price around $1,200, which is close to its average,
all-in production cost. In other words, 37+ years into the War on Gold,
miners continue to give away their shareholders’ gold for a pittance, when
they could easily increase its price simply by doing what every other
consumer company does: market it.
If we assume that the Deep State’s War on Gold has only shaved $100 per
ounce off its price, the undervaluation of the gold mined from 1980 - 2016 is
$250,000,000,000.00 ($250 billion). While this is an astounding sum, we
believe the actual cost is much higher. According to our analysis, the
underpricing of gold ranges between $1,000 and $3,000 per ounce, depending on
the comparative metric we use (e.g., global money supply; global debt; global
private savings; global GDP; global equities; inflation; and the like). By
other metrics, it is even more, but we will be conservative.
Therefore, the total undervaluation of the gold mined during the War on
Gold ranges between $2,500,000,000,000.00 and $7,500,000,000,000.00 ($2.5 to
$7.5 TRILLION). This is tantamount to theft from the owners of the mined
gold, namely, shareholders.
On a global basis, physical gold owned by individuals, businesses, religious
organizations and sovereign institutions is currently undervalued by between
$5.8 and $17.4 trillion dollars. This is the cost to the world, in gold
undervaluation alone, of the Deep State’s criminality, corruption and
avarice. Being the home and global headquarters of the Deep State, the United
States is the only nation in the world whose #1 export, in currency value, is
financial fraud.
The War on Gold is suffering from the effects of the Law of Diminishing
Returns: it requires more and more Deep State price-rigging to move the gold
price down less and less. This is because available supplies of physical gold
are rapidly disappearing from west to east, where demand is unquenchable.
Tactic #1 is in trouble.
In far greater trouble is Tactic #8. When Indian Prime Minister Modi
announced his demonetization scheme at 8 PM on November 8, 2016, the social
media network throughout India went supernova within minutes. Citizens who
acted immediately were able to dump some or all of their “extinguished” rupee
notes for food, medicine, gold and whatever else they could get their hands
on from shops still open that evening. The next morning was too late, as the
fangs of the scheme deeply sank into the nation’s flesh.
Social media saved the day for those on the vanguard. Similarly, when the
people in large numbers sense that something has become rotten in the state
of their money and that their savings and financial well-being are at extreme
risk, they will take to Social Media in droves to both seek and give advice
on how to protect themselves. When this happens, decades’ worth of Deep State
fraud and senior miner traitorousness will be washed away in a matter of
hours. We already see in Bitcoin how “electronic currency” can go viral even
well before a full-blown financial panic. The current Bitcoin phenomenon
demonstrates that the people sense something in the air, and are mobilizing.
When the wall of propaganda against gold starts to fall, the people will
mobilize into it, as well.
As pure money, gold simply has no true competitors. Increasingly, this
will become self-evident to tens of millions of people in the west, who will
create new demand for it. The physical gold market cannot accommodate such
incremental demand at anywhere near the current price. At a certain point,
the market will not be able to satisfy physical demand at all, as people
realize there is no substitute for and hold on to it for dear life. Nothing
on earth produces a price frenzy like a no-offer market.
In our view, people will be richly compensated for front running the
coming monetary mass awakening, something we view as being absolutely
inevitable. Given the world’s exponentially compounding risks and troubles,
the fact that we continue to enjoy halcyon, actionable days can only be regarded
as an extraordinary gift from God, to all of us.
