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April 30 - Gold $1556 up
$25.20 - Silver $48.58 up $1.06
"A society
grows great when old men plant trees whose shade they know they shall never
sit in" … Greek proverb
GO GATA!!!
Couldn’t resist that
MIDAS headline today. It was during a question and answer period following my
presentation to a sold out, standing room only crowd
in Munich that I was told gold was trading at $1570. More on that and my trip
to Munich in a bit. First, some comments on yesterday’s stunning market
action.
The Midas remark on
Thursday that The Gold Cartel looks increasingly desperate seems to be on the
money. They are going to need to pull a bunch of rabbits out of their hat to
derail the precious metals markets from going much higher and seriously
affecting their Behavioral Finance operations.
For the second time in a
week the CME raised margin requirements on silver ... Thursday after the
Comex close. While The Gold Cartel requests timed tactics such as these to
assist their price-capping efforts, this move is very understandable as
silver rose more in a single trading session than the old margin requirement
the other day. Thus, it was very appropriate for the exchange to raise
margins on silver…
CME
Increases Trading Margins Amid Silver's Volatile Ride
- By Tatyana Shumsky
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Exchange operator CME Group Inc. (CME) raised margins
for Comex silver futures for the second time this week as silver prices soar
amid much volatility.
The higher margins take
effect at the close of trading Friday, the exchange said. The CME revises its
margin requirements as a normal course of business, and has previously raised
bond requirements during times of high volatility to guard traders against
additional risk. The operator owns New York Mercantile Exchange, which trades
silver on its Comex division.
For speculators in the
benchmark 5,000-ounce silver futures contract, the exchange is raising
initial margin requirements, or the deposit required to purchase a contract,
to $14,513 per contract, up from $12,825. Maintenance margin requirements, or
the additional capital needed to keep the contract overnight, will increase
to $10,750, from $9,500.
For hedgers and exchange
members, both the initial and maintenance margin requirements will also
increase to $10,750 from $9,500 per contract.
CME also raised margins for
the Comex silver trade at settle contracts, which allow traders to lock in
the day's settlement price for their purchases or sales.
Additionally, the exchange
raised initial and maintenance margins for Comex Miny silver futures and the
E-Mini silver futures contracts.
Thursday's increase follows
a similar margin increase Monday, and comes during the astonishing volatility
in silver prices. Silver posted another huge price swing Thursday, with the
front-month contract rising 3.4% to a record settlement of $47.520 a troy
ounce. Investors have been flocking to this relatively small market to take
advantage of the metal's much lower price than that of gold, which is sky
high.
-END-
The move appeared to be a
precarious one in the early trading for the shorts yesterday as the price of
silver roared to $49.24 in the early going. Any small spec short had to be
really feeling it and probably caused some shortcovering. However, The Gold
Cartel and JP Morgan cannot afford to let opportunities such as this one pass
in order to press their case and they did … at least by preventing
silver from taking out $50 per ounce with gold surging like it did.
The name of the game
yesterday was gold. What a performance! … and little of it did I see as
James Turk and I were at the Hofbräuhaus making presentations. Gold
exploded, with a high at the $1570 level before it set back to more modest,
but substantial, gains by the Comex close. However, the price stormed back in
Access Market trading to finish the day at $1565.70. How’s that for a
one day trading performance!
As might be expected,
silver came under a good deal of pressure relative to gold. Have to give
GATA’s colleague James Turk a high five as he told me before the
trading for the day started that he thought the gold/silver ratio had gone
far enough for the time being and had just acted accordingly. Great call and
move!
After surging early, silver
began to wilt quickly relative to gold … with the buy gold, sell silver
train picking up speed as the Comex session wore on. After what the price of
silver has done the past few weeks, this is a normal and healthy development
for both precious metals markets.
What was so pleasing about
today was the SURGE in the price of gold, so POWERFUL! In recent days we have
watched gold struggle, for whatever reason, while silver has soared. Not
today. Gold was action central and continues to validate what the GATA camp
said it would do, and why … for the short term that means a total
repudiation of Bernanke, the Fed, and US government policies ... a
repudiation which even the Planet Wall Street crowd acknowledges.
Gold was aided slightly by a weaker dollar, which fell to around the 72.90 level
early, but ended the day at 73.05; and by a higher price of oil of $113.99,
up 86 cents, a new high for its move up. At last glance the CRB was also
making new highs for its move, up 4.25 to 370.56.
It is no small deal that
gold surged like it did at the end of the month. The close will have an
impact on those who trade technically and from a
longer term point of view. The monthly gold chart…
http://futures.tradingcharts.com/chart/DG/M?anticache=1304070532
Speaking of monthly charts,
silver is nothing short of SPECTACULAR, to put it mildly…
Monthly silver
http://futures.tradingcharts.com/chart/SV_/M?anticache=1304070574
The gold open interest fell
5174 contracts to 532,576, meaning Thursday’s solid move higher in gold
was due to a good deal of shortcovering ahead of Friday’s super
breakout. The silver open interest went down another 6132 contracts to
129,712. The dramatic drop in the silver open interest the past three days is
also stunning. It appears JP Morgan and friends have used the margin
increases and profit taking by specs to finally begin to reduce their massive
short positions. If so, and we will only know that in the weeks ahead, they
still have a long way to go.
That deduction regarding
the reduction of the massive JPM short position appears to be corroborated by
the COT numbers released Friday afternoon…
Silver
*The large specs reduced
longs by 5,247 contracts and increased shorts by 3,524.
*The commercials reduced
longs by 1,720 contracts and reduced shorts by a steep 8,438 … and that
did not include the large open interest drops of the last two Comex trading
sessions on Wednesday and Thursday.
*The small specs increased
longs by 982 contracts and increased shorts by 2,369.
Gold
*The large specs decreased
longs by 13,601 and increased shorts by 59. Those longs who exited missed out
on the dramatic move higher in the price of gold the past two trading days.
*It appears some
commercials saw this move coming. They increased longs by a significant 9,242
contracts while reducing shorts by 8312.
*The small specs reduced longs
by 1,377 contracts and increased shorts by 2,517.
It should be noted that the
past five weeks or so the price of silver has popped in Access Market trading
following the release of the COT report on Friday afternoons when it showed
the commercials (JPM) were not reducing their short positions. That all
changed yesterday when it was revealed some commercials (probably JPM) were
finally running for the hills. Silver dropped $1 from its Comex close before
recovering to $47.94 late in the day in Access Market trading.
The latest from James Mc
yesterday morning…
Nefarious numbers are in
Bill,
The gold manipulation
numbers are in for the first 4 months of 2011 and it is nothing short of
incredible. This level of artificial suppression can only lead to one thing,
and that's a melt-up similar to silver. Like silver's recent
"disorderly" behavior the physical gold market will soon be causing
BIG time trouble for trapped Comex shorts. Nobody could even remotely claim
gold is frothy after looking at these figures. If you knew nothing about the
underlying fundamentals of the product, and were strictly looking at these
figures you would conclude that the world is fine, and "inflation
expectations are well-contained". Such is the hypnosis being applied by
the sycophants. Here is the tally of nefarious cartel trading up to April
30th:
Total Comex trading days:
82
Trading days above 2%: ZERO
Trading days with a close
above 1%: 5 ( 6.1% )
Trading days with rallies
stopped near 1%: 31 ( 37.8% )
Trading days with a sharp
AM selloff: 71 ( 86.6% )
Average daily gold gains
1.36 (at $1,538)
Total PM fixes at least $5
higher than AM fix: 12 (14.7%
)
Total PM fixes at least $10
higher than AM fix: ZERO
Total PM fixes at least $10
lower than AM fix: 8 (avg. loss $13.40 )
HUI close 12/31/10 573.22
HUI (10:00 AM) 4/29/11
584.00 (+ 1.9%)
It is notable that almost
ninety percent of the time the cartel needed to paint the early tape with an
AM selloff. It is also interesting that over one third of all trading days
were wanting to go MUCH higher, yet were tagged at 1%. This is evidence of
fierce buying being met by resolute cartel paper selling. Curious too how
there seems to be a lid on the PM fix at about $9 higher. Apparently for that
event even 1% gains are out of the question. In fact only 3 out of 82 PM
fixes even came close to a $9 gain. Nearly 85% of the PM fixes were either
lower, or no higher than $5.
Lastly, as everybody here
painfully knows, the HUI has acted oblivious to a 60% rise in silver and 8%
rise in gold. If you didn't know better you'd think the HUI represented the
homebuilder index, rather than precious metals. In fact up until late this
week the HUI was actually DOWN for the year. I'm still waiting for the first
major mining executive to publicly proclaim foul. They don't deserve the
bounty they're being afforded.
James Mc
(Good luck in Munich, and
hope you have some fun too.)
Now a recap of my trip on
behalf of GATA to the lovely city of Munich…
Yesterday morning and early
afternoon was filled with interviews, including Germany’s Smart Money
Magazine, Gold Money’s James Turk, and Lars Schall.
Then it was off to the
Hofbräuhaus from 6 to 10:30 with James Turk for a presentation in front
of a packed room of around 200 people from 15 countries who came to hear what
the GATA camp had to say. The crowd in attendance was a sophisticated one,
including the renowned Egon von Greyerz, Managing Partner of Matterhorn Asset
Management AG, who flew in from Zurich and is coming to GATA’s Gold
Rush 2011’s August conference in London.
The event was held by Peter
Boehringer of Deutsche Edelmetall-Gesellschaft (DEG):
"An
Evening with Bill Murphy", Munich, 29 April 2011
Nabend Edelmetallfreunde,
in der Sache erlaube ich mir einen Veranstaltungshinweis:
- Peter Boehringer (DEG):
Introduction
- James Turk (GoldMoney Foundation, http://www.goldmoney.com):
Short Speech „Current Status of the World Economy, the Financial
Crisis & the Role of Precious Metals"
- Bill Murphy (GATA, http://www.gata.org):
Key Note Speech "The Secret to understanding the Gold and Silver
Markets is to know what GATA knows"
- Panel Discussion: Bill Murphy,
James Turk, Peter Boehringer
- Audience & Panelists: interactive
Q&A session
- Informal &
"inofficial" group discussions
***
When it was remarked gold
was $1570, it lit the park up for me as it meant the price of gold finally
shattered the 2% Rule, so often brought to our attention by James McShirley.
Both James and GATA have long said that once the 2% Rule was broken
convincingly (especially now after so many 1% Rule days), it would mean The
Gold Cartel is really on the ropes. Little did I realize (speaking at night
in Munich) there was still time for the cabal forces to make sure their 2%
Rule was not violated by the Comex close. Hence, the price was taken back
down $14 for that close, which I did not know until I returned to my hotel
room. So much for my saying to the attendees that Friday was a watershed gold
day. Close, but no cigar quite yet.
I would like to thank Peter
and James Turk for organizing such a special event for GATA. Although to my
regret, there were so many questions and people to talk to, I only had time
for one small beer in this renowned beer hall.
It is like two worlds out
there. Come to Munich and it is standing room only to hear what GATA has to
say. Do the same thing in the US and you can’t give the tickets away.
In that regard I had
breakfast this morning with GATA consultant Dimitri Speck, who has been
instrumental in spreading the gold suppression scheme notion throughout
Germany. Dimitri, a money manager who bases his trading on quantitative
analysis, has written a book titled, Geheime Goldpolitik (Secret Gold
Policy), which is quite extraordinary. (He went through the book explaining
the chapters over breakfast.) An overview…
What a Managed Gold
Market Tells us about Bubbles
The Book
In times of financial
crises and imminent sovereign defaults, gold is on everyone’s lips. As
a safe investment, one could rely on good performance. But often the price
suddenly drops. It does so without visible reason and even when the panic
reaches its peak. Buy why? Dimitri Speack knows the answer. He has found out
in detail how central banks secretly mange the gold price with the intention
to calm the markets and to control inflation.
There is an even bigger
issue behind this manipulation: Since the abolition of the gold standard in
1971 the indebtedness of the global economy is increasing. It has now reached
a level which is way beyond comprehension. What are the mechanisms that have
led us this mega bubble? Is it possible to avoid a catastrophe outcome like
deflation or hyper inflation?
***
Thanks to Dimitri’s
efforts the gold price suppression scheme and GATA’s analysis and
claims are generally accepted (even if privately) in the German money manager
world. He believes it is only a matter of time
before someone in the mainstream central banking world acknowledges the gold
price suppression scheme and overnight it will be a generally accepted fact
in the investment world. Dimitri’s work has been covered in mainstream
publications such as Suddendeutsche Zeitung and Handelsblatt. GATA congratulates
Dimitri and hopes to see him in London.
Oh yes, the
"quant" Dimitri believes the price of gold is headed for $15,000
per ounce as inflation picks up speed.
The euro was last at
1.4806, the pound at 1.6703, and the yen at 81.17.
More gold goodies:
Astute Gartman comment
Friday, April 29, 2011
The CME Final for Thursday
reports that on volume of 198,960 lots open interest dropped 5,174 contracts,
0.96% or 16.09 tonnes, to 532,636 lots. Gold of course was up 0.49% basis
stock market close. Apparently the market still contained a lot of skeptical
shorts. Gold share owners are well aware of this.
(The CME Final for
Wednesday reported that on volume of 178,542 lots, 29.1% or some 40,000 lots
above estimate, open interest rose 7,678 lots – 23.88 tonnes or 1.45% to
537,810 lots. Gold closed up 1.8% basis 4PM NY time: at one time a much bigger open interest increase would have been
guaranteed. Probably part of the post-Bernanke surge was short covering also.)
Indian ex-duty premiums: AM
$6.59, PM $5.29, with world gold at $1,532.62 and $1,537.05. Very ample for
legal imports. The rupee helpfully surged 0.5% to close at $1= R44.21
(R44.43). The stock market closed down 0.81%.
Some years ago it was
common for India’s local prices to lag a world gold move of this type by
$10 or more until the public there adjusted or world gold fell back. That is
just not happening this time.
Local Vietnam gold this
morning stood at a $13.18 discount to world gold (Thursday $12.58/$1,528.15).
Shanghai gold closed at a
discount of $5.05 to world gold of $1,533.05 on volume equivalent to 9,570 NY
lots (Thursday (39c/$1,531.05) The Yuan was allowed to edge up further, to a
5.01% post $US "depegging" appreciation (Thursday 4.84%). This was
despite the $US Index being more or less stable.
It is a
logical possibility that Chinese dealers are pulling out of the market
expecting a significant firming in the Yuan. All things being equal this
would reduce the Yuan price of gold. JBGJ, however, will believe this when it
happens.
Tokyo was closed today.
Gold only responded only
tepidly to silver’s surge to a record high around 11-30 PM NY time, but
it has staged a powerful rally all of its own today
in the later floor session. Estimated volume at 12noon was only 88,703 lots
but most of the move came later.
JBGJ was struck by the
apposite nature of a comment by The Gartman Letter today:
"This morning
we’d like to take yet another look at the Fed. St. Louis’
Adjusted Monetary Base, which continues to skyrocket and which continues to
cause us a great deal of concern. Since the start of
this year, the AMB has gone from just barely below $2.0 trillion to nearly
$2.55 trillion. That is an increase of 27.5% in only four months and that is,
in our opinion, very nearly criminally inflationary. We don’t even want
to annualize this sort of increase in the AMB, and we needn’t given
that we would want to see the base grow at an annualised pace of only perhaps
4-6%, sufficient to fuel real economic growth of 3-4% and population growth
of 1-2%. Clearly the monetary authorities are fuelling something more than
that. Why they are doing so is another question for another time."
Reporting M3 was abolished for a reason. An additional discussion of this
event is at
http://www.marketwatch.com/story/m3-mutterers-refuse-to-give-thanks
***
CARTEL CAPITULATION WATCH
The always rising DOW
finished up 47 to 12,810. The DOG lost 1 to 2872.
U.S.
economic news:
08:30 Q1 Employment Cost
Index +0.6% vs. consensus +0.5%
* Q4 ECI was +0.4%
* * * * *
08:30 Mar US Personal
Income +0.2% vs. consensus +0.4%; Consumption +0.6% vs. consensus +0.6%
* Core PCE +0.1% vs. SA consensus +0.1%
o Feb Personal Income revised to +0.5% from +0.3%
o Consumption revised to +0.9% from +0.7%
o Core PCE unrevised from +0.2%
* * * *
COMEX Warehouse Stocks
Apr 28, 2011
SILVER
ZERO ozs
withdrawn from the dealer’s (registered) inventory
401,423 ozs deposited in the customer (eligible) inventory
Total dealer inventory 33.32 Mozs
Total customer inventory 68.73 Mozs
Combined Total 102.05 Mozs
GOLD
ZERO ozs withdrawn from the
dealers (registered) category
ZERO ozs withdrawn from the customer (eligible) category
Total dealer inventory 1.94 Mozs
Total customer inventory 9.09 Mozs
>Combined Total 11.03 Mozs
There were no movements of
gold in or out of the warehouse but 107 kozs of gold were transferred from
the customer inventory to the dealer inventory by an internal adjustment. In
silver 0.4 Mozs were deposited in the customer inventory putting a
"102" handle on the total inventory.
The Comex failed to update
the daily report on delivery notices. The APR gold delivery notice total for
the month is 3,884 notices or 388,400 ozs.
The APR silver delivery
notice total for the month is 312 or 1.58 Mozs.
MAY is now the front month.
The OI in silver stands at 10,960 contracts with first notice day tomorrow.
In gold it stands at only 457.
Cheers
Adrian
COMEX Warehouse Stocks
Apr 29, 2011
SILVER
14,275 ozs withdrawn from
the dealer’s (registered) inventory
106,872 ozs withdrawn from the customer (eligible) inventory
Total dealer inventory 33.30 Mozs
Total customer inventory 68.62 Mozs
Combined Total 101.93 Mozs
GOLD
ZERO ozs withdrawn from the
dealers (registered) category
2,857 ozs withdrawn from the customer (eligible) category
Total dealer inventory 1.78 Mozs
Total customer inventory 9.24 Mozs
Combined Total 11.03 Mozs
There were 2.8 Kozs of gold
withdrawn from the customer inventory. 152 Kozs of gold were transferred from
the dealer inventory to the customer inventory by way of an internal
"adjustment". In silver 0.12 Mozs were withdrawn from the Comex
warehouse bit not one single ounce was received!
There was 1 delivery notice
issued in the MAY gold contract. The MAY gold delivery notice total for the
month is 20 notices or 2,000 ozs.
There were 4 delivery
notices issued in the MAY silver contract. The MAY silver delivery notice
total for the month is 10 or 0.05 Mozs. This is another shocker because the
Open Interest standing for delivery is 2,166 contracts which is 10.83 million
ozs. The lack of deliveries after two notices days tells us the shorts do not
have any silver available. No wonder MF Global compliance dept. is in a state
of panic and has increased their margin requirement to 175% of what CME
minimum is set at.
The OI for MAY in silver
stands at 2,166 contracts and in gold it stands at only 202 contracts.
Cheers
Adrian
Fed's secrecy is deceitful
and corrupt, Texas professor Auerbach says on Bloomberg TV
Submitted by cpowell on
08:05PM ET Thursday, April 28, 2011. Section: Daily
Dispatches
11p ET Thursday, April 28,
2011
Dear Friend of GATA and
Gold:
Interviewed Tuesday by
Bloomberg Television, University of Texas Professor Robert Auerbach, formerly
an economist for the Federal Reserve and an aide to the late House Banking
Committee Chairman Henry Gonzalez, D-Texas, recalls how the Fed has a long,
corrupt history of hiding and then destroying its records to keep the public
ignorant of what it is really doing. Congress should legislate to make the
Fed more accountable, Auerbach says. It's something to keep in mind in regard
to GATA's recent lawsuit against the Fed to obtain gold-related documents.
The interview is not quite eight minutes long and you can watch it at
Bloomberg TV here:
http://www.bloomberg.com/video/69042262/
CHRIS POWELL,
Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Zero Hedge speculates on
short squeeze in silver
Submitted by cpowell on
10:07AM ET Friday, April 29, 2011. Section: Daily
Dispatches
1p ET Friday, April 29, 2011
Dear Friend of GATA and
Gold (and Silver):
Zero Hedge today cites
GATA, GoldCore, and Max Keiser in an intriguing speculation about a short squeeze and cornering in the silver market. It's
headlined "GoldCore Questions on Comex Silver Default Due to Secret
Buying by Russian Billionaire, Chinese Traders, and People's Bank Of
China" and you can find it here:
http://www.zerohedge.com/article/goldcore-questions-comex-silver-default...
CHRIS POWELL,
Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Silver in India
Hi, Guys,
I spoke to my friend earlier today. It's still hard to come by silver in
Kilogram quantities, even today, in India. We have to remember that the more
common denominations in India are 100 grams and smaller.
Have a great weekend.
Tehmaas
Mexico Mike…
The silver debate
Hi Bill!
I would love to know where the silver market sentiment data is coming from.
It seems every widely circulated commentary on silver these days is extremely
bearish. The silver stocks have been selling down for most of the month and
it is hard to find an investor that thinks silver can sustain this price
range. However there is a disconnect that underway
that we have expected for a long time. All of those whom are bearish point to
the spot silver price to support their case. Consider this article from
Market Watch:
http://www.marketwatch.com/story/silver-mania-may-c
ome-to-an-abrupt-end-2011-04-29?pagenumber=1
I question
the term 'mania' to discuss silver because hardly anyone actually owns any
silver and the silver stocks are trending lower for the short term. But
further along, the author quotes such luminaries as Nitwit Nadler, poor old
Ned Schmidt who has been screaming the silver bubble story since it traded at
$30, and even clueless Chris Ecclestone gets quoted to suggest the fair value
of silver is only $30.
I do not take anything these clowns have to say seriously, since when silver
was below $10 the commentary stated that the market is never wrong and that
the low price is a sign of abundance. Well now that silver has moved up to
more reasonable levels, the same guys are all calling a bubble. I thought the
market was never wrong? None of the discussion I have read even considers the
possibility of a short squeeze in the futures market, or a real shortage of
the metal. None of these bozos that point to wild speculation ever discuss
the wild shorting spree that has contained the metal. I hear all the time
about irrational spec buyers but is it not even more irrational to be wrong
about the trend of a metal and still pile on more shorts as your position
blows up by hundreds of millions of dollars?
The price level that silver has reached seems high in the context of the lows
that were endured at the bottom of the bear market. However, why should
silver be the only commodity that has NOT broken to new all time highs in
this bull market? And on a fundamental level, I doubt that the $50 range is
going to suddenly be the magnet to increase supply. Every silver miner was running flat out when silver broke above $25.
There is not one silver producer on the planet that can easily increase
production just on the basis of the price rise. On the contrary, some
producers have been hedging forward sales into this rising price, which does
not produce one single ounce of new silver.
And on a related topic, I wonder if the corrupt Mexican cops have all been
hired by the SEC? Mexico has a tradition of cops that are paid not to see
things and so they are ideal for the job. I mean how else to explain the
failure to investigate obvious market rigging operations. It does not take a genius to spot that silver stocks have been hammered the
day before every COMEX margin increase. Every time, and usually when silver
is rising strongly prior to this action, the silver stocks are hit hard. THEN
the news comes out about increased margin, usually followed by downside
pressure on silver itself, allowing the new shorts to cover easily on high
volume trading. This scam is so easy to spot and one need only pull the
trading tickets on the larger silver stocks on those specific dates prior to
margin increases to identify and prosecute the criminals. I doubt anything
will ever be done to protect investors on this or any other scam in the PM
sector. So much for the free and fair markets.
At the end of the day, the fundamentals are going to determine the longer term trend for silver. Those who believe there is
abundant supply and irrational speculation on the long side will have sold
and gone short. Those who believe there is an acute shortage of the metal
will continue to accumulate and will await a resolution to the countertrend
selloff in the silver stocks. The rhetoric flying around has certainly
attracted the attention of the market but if there is indeed a silver
shortage as I believe, then the price of silver will run much higher before
all is settled. There is plenty of silver bullion still around, but not for
sale below $50 and those who have been shorting against this move may find it
the most costly mistakethey ever make.
Cheers!
MexicoMike
Bill H:
Remember when...
To all; can you remember
way back when... if you spoke your mind and said something crazy like
"Gold really should be trading at $600 or more" people would just
laugh or roll their eyes. $50 Silver was a whole 'nother story while trading
for so many years between $4 and $7, a new high in Silver? $50? Never, not
possible, can I give you the name of a good shrink? My point is this, we are
now trading a new high (albeit suppressed) prices for both Gold and Silver
that even 2-3 years ago were thought to NEVER be possible!
But there is a kicker, the Dollar although quite weak has still not
totally collapsed and is still being propped up artificially to continue the
facade of functionality. What do you suppose Gold and Silver will do once the
artificial support to the dollar gives way? Again, many many smart people
have been putting "Dollar price" forecasts out of $2,000, $5,000,
$10,000 and more. Whatever the highest number is that you have EVER read is
flat out wrong in my opinion because as Jim Sinclair says, "QE to
infinity" is where we are headed. I completely agree with this concept
as mathematically the U.S. (and the entire world for that matter) MUST
inflate and print at rates ever greater and in an exponential fashion!
"Infinity". Think
about this concept for a moment, "infinity". What does it really
mean? Can it ever really be attained? Doesn't it really mean that something
"goes on forever and has no end"? Of course it does but the
Treasury and Fed cannot borrow and print forever because markets will balk
long before the "exponential stage" really gets going. The opposite
of infinity is "0" or in other words NOTHING which is exactly where
the Dollar is headed no matter what policy response is chosen from here.
I started this out with
"remember when", in the future people will look back $50 Silver and
$1,500 Gold as if they were FREE. These levels in the future will look far
cheaper than $4 Silver and $250 Gold does now! This entire episode is all
about the end of a financial and monetary system with no foundation. I have
written many times before that "this is for all the marbles", it
truly is. Wealth by paper has been created and believed in for nearly 100
years now, once we make the "jump" to the next monetary system,
those holding real money assets will be the ones who accrue ALL THE MARBLES!
ALL of the paper wealth
will accrue back to where it always belonged, into real money! $100 days,
$1,000 days $10,000 days will be commonplace IF they don't evaporate the
Dollar for another currency. The future will in my opinion be entirely about
"revaluation". It is happening now but once the process goes
exponential it will be too late. Yes I know, many many people believe it is
already "too late" and Gold is "too high". It is not and
it is not, you can still purchase Gold and Silver for paper currency. The day
will come when physical metal will not be offered and paper not accepted,
THAT is when it will be "too late"! Call it the "infinity
zone" when no amount of paper currency will bring physical metal out of
it's deep dark sleep and onto the market. Scary concept this "infinity
thing"! Have a good weekend. Regards, Bill H.
There is little doubt in my
mind there is an organized effort to keep gold/silver excitement as managed
as possible by preventing the gold/silver shares from going to where they
ought to go … and WILL GO! With all that the prices of gold and silver
have done, the HUI remains contained. It rose 9.54 to 592.50. Voila…
HUI
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?symb=HUI&sid=16794&time=8
The XAU only went up 1.83
to 222.22.
It is uncanny how many
times the price of gold has taken off when GATA has made organized,
publicized presentations outside of the United States. Call it a fluke, but
it has occurred time and time again over the past decade. For whatever
reason, we will take it.
Clearly the investment
world is realizing the need to own gold as a protection against inflation and
massive money printing. While this has been extremely obvious to us on Planet
GATA for some time, it is wonderful to have so many new investors join the
party, a party which is going to last for a long time.
As the general investing
public comes our way, and they gradually are now, watch for the gold/silver
shares to go ballistic some day. We are not there yet, but that day is
coming. So remember…
GATA BE IN IT TO WIN IT!
MIDAS
Appendix
Bart,
The criminal take downs by JPM, Dimon, Masters and the CME have escalated
over the past week.... I know.... hard to believe since they have been doing
this on a daily basis for years. Please pull the trading tickets from
today.... at noon a 60 cent take down in silver over one minute and at the
SAME PRECISE moment a take down in gold with NO NEWS that was pertinent to
either precious metal. Then a second take down in both metals at the same
moment at 1:30..... and then tonight the criminals at The CME announce a
second margin hike in one week. They did this before ( two
margin hikes in one week) in November of 2010 with the same pattern of
trading activity preceding both margin increases. If I can see it and figure
it out.... the economic and financial ivory tower intelligentsia at The CFTC
should be able to see it.
Come on Bart.... this is a
joke..... The CFTC is there to be a regulator not an accomplice to a crime that has been ignored for two decades !
Much more for subscribers…
Bill Murphy
Editor
LeMetropoleCafe.com
Chairman
Gold Anti-Trust Action Committee
Le Metropole Café is a Membership
site. Visit and Experience a 2 week Free Trial !
Bill Murphy is chairman
of the Gold Anti-Trust Action Committee. and
proprietor of www.LeMetropoleCafe.com, an Internet site devoted to financial commentary with emphasis on
the precious metals. You can
become a trial member for free for two weeks by clicking here.
He has also chaired three international gold
conferences…
*The GATA African
Gold Summit in Durban, South Africa on May 10, 2001.
*Gold Rush 21 in the Yukon’s Dawson City on August 8-10, 2005.
*GATA Goes To Washington in Arlington, Virginia on April 17-19, 2008.
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