|
June 24
- Gold $888.80 up $4.40 - Silver $16.61 down 16 cents
The
Average American Won't Know What Hit Him/Her
"Develop
success from failures. Discouragement and failure are two of the surest
stepping stones to success." … Dale Carnegie
GO GATA!
Yesterday I was up at the crack of dawn, getting
into my commentary way before Comex opened …
only to watch the most blatant example of market manipulation imaginable.
Today I decided to wait to see what the PPT and Gold Cartel would bring us as
the day went on. The fact that the US economic news was worse than
dreadful, the dollar was tanking, and critical oil was surging again, means
little in a world of rigging – not oil rigs.
With all of that the DOW just rallied 100 points to
go positive 40, after tanking early…
Tom Sawyer hand off time … Dave from Denver has it nailed:
The intervention becomes more obvious and blatant
daily. Yesterday it was the $25 bear raid on gold, the $3 smash of oil
futures and the 30 basis point (pip) hit on the euro all within the first 3
minutes of the Comex open. I've never seen such an
aggressive hit on paper gold as yesterday. It felt like gold would be hit for
$50 but it appears the 13 tons bought into GLD supported the paper market.
Today, they bounced the Dow at a very serious technical level. If you go back
to the January 2000 Dow peak, the high close was 11,722. Then this year
starting in January, there were several days in which that level was breached
to the downside, only to close higher on the day of the breach. They are
clearly defending the 11,720 - 11,750 area on the Dow with a lot of
intervention firepower because of
the technical implications of a downside breach of that area. So of course
today the Dow sold off hard, as did the financials, and miraculously the Dow
and financial rallies hard right at 1 1,725, led by the financials.
My point is that the transparency of this
manipulation/intervention is absolutely embarrassing. It is a complete insult
to the intelligence of anyone who follows the markets, and ultimately will
completely undermine any confidence that remains regarding the integrity of
our markets. My best guess is that sometime in the next 12 months, several
more countries - and possibly OPEC - will cut their peg to the U.S. dollar.
***
Dave could not be more right. The question now is
will the efforts by the PPT to prop up the DOW work? Can they buy enough time
for something to go right in the US economic scene to flush the
growing short positions?
One lousy looking scenario…
September DOW
http://futures.tradingcharts.com/chart/DJ/98
DOW weekly
http://futures.tradingcharts.com/chart/DJ/W
DOW monthly
http://futures.tradingcharts.com/chart/DJ/M
Why the DOW rallied, gold was held in check and
silver was insulted today…
US house prices, consumer confidence dive
NEW YORK, June 24 (Reuters) - U.S. consumer sentiment slid to a 16-year low
in June while house prices suffered record annual drops in April, according
to data on Tuesday that suggested a retrenchment in spending that will keep
squelching economic growth.
The Conference Board's monthly survey of consumers showed the overall index
of consumers' mood fell to 50.4
in June, the lowest since 47.3 in February 1992.
(For details, below)
The index has now dropped by more than half since 111.90 last July, before
the housing market troubles triggered the most severe credit crisis in at
least a decade.
"To put it in perspective, that's a bigger decline than what we saw
after the September 11 attack and Hurricane Katrina," said Dana Saporta, economist at Dresdner Kleinwort Securities.
"It sends out the signal that the consumers are not about to ramp up
their spending," he said. "We worry about the contraction in the
economy once the tax rebates dissipate."
In addition, the survey showed an index measuring consumer expectations for
the future sank to a record low as inflation forecasts matched an all-time
high this month.
The inflation threat has been highlighted in the past 24 hours by massive
price increases announced by some of the world's largest basic materials
conglomerates.
First, mining titan Rio Tinto secured an agreement with China's largest steel maker to nearly double
the price Rio gets for iron ore, and rival
producer BHP Billiton is expected to follow through with
similar price hikes….
-END-
Time to flashback and envision the Muppets …
roaring with laughter and glee
about how well the Orwellians did today.
The gold open interest fell 6722 contracts to
404,683. The silver open interest dropped 3583 contracts to 130,725.
The message of The Gold Cartel and silver price
managers to speculators was made loud and clear … We will try and
bury you if you take us on.
Either we are so wrong about the fundamental case
for silver, or we are seeing the most egregious manipulations ever. There is
no middle ground.
Hear, Hear…
Treasury Wins 2008 "Rosemary Award" as
Worst FOIA Agency
Washington DC, March
19, 2008 - As if the
sub-prime credit crisis was not enough, the U.S. Treasury Department today
won the fourth annual Rosemary Award for the worst
performance by a federal agency under the Freedom of Information Act.
Given annually by the Emmy-
and George Polk Award-winning National Security Archive at George Washington
University, the
Rosemary recognizes outstandingly bad responsiveness to the public that
flouts the letter and spirit of the Freedom of Information Act. The Award is
named after President Nixon’s secretary Rose Mary Woods and the
backwards-leaning stretch with which she erased an eighteen-and-a-half minute
section of a key Watergate conversation on the White House tapes….
http://www.gwu.edu/~nsarchiv/news/20080319/index.htm
-END-
There is nothing to ponder when it comes to gold
market commentary, which remains the most inane, abysmal one could ever
imagine. Even the real Muppets have to be laughing
at these clowns….
Dear Bill,
According to these jokers at Reuters all hedge funds sold gold at exactly 8am
on Monday.
Gold ends sharply lower on fund liquidation
http://www.reuters.com/article/hotStocksNews/idUSL2321463520080623?rpc=401&=undefined&
pageNumber=3&virtualBrandChannel=0&sp=true
It's too much. I think what is happening today is that they are all running
around desperate because oil
traders did not pay attention to the inanities uttered at the meeting in Saudi
Arabia.
Best,
Luis
Crude oil ended the day up 26 cents per barrel to
$137.
The CRB gave up .77 and was last at 454.61 …
still WAY up there.
The dollar fell .20 to 73.24.
The yield on the 10 yr T note fell to 4.10%.
More gold goodies:
Indian ex-duty premiums: AM 94c, PM $1.42, with
world gold at $886.50 and $889.65. A bit thin, and adequate, for legal
imports. The Indian stock market closed down 1.31% and the rupee closed
essentially unchanged at $1=R42.9625 (vs. R42.965 yesterday).
The ECB weekly statement of condition indicated an
E26Mm sale of gold by one captive CB. This amounts to 1.36 tonnes at the
current book value. Last week’s reported sale was 5.93 tonnes. Both of
course are way below the 9.6 tonnes which would have to be sold on average if
the WAG2 500 tonne quota – which ends at the end of September –
were to be fulfilled.
ECB Banks, it appears, prefer not to be associated
with pressuring the gold market at present. In that case, one has to ask, why
are these consistent trivial sales showing up? From a price point of view, it
can no longer be argued that gold is "atomic waste" in CB reserves,
as could be said a decade ago. Maybe these are long-dated (and foolish) call
commitments triggering off.
Monday’s spectacular $16.50 Comex loss (which actually involved a $24 loss in the
first half hour as half the day’s volume traded) saw an open interest
contraction of 6,722 lots, or 20.9 tonnes. Perhaps not as much as could have
been expected: certainly slaughtering
the NY market at the start is strange behavior for
a proceeds-maximizing long.
Somewhat surprisingly, The Gartman
Letter, badly bushwhacked by this development, hung on to it’s
recently established long. The rationalization offered was the need for a
hedge against "economic disaster": the inclination of this well
informed service to hold oil assets suggest geopolitical considerations are
at work as well.
***
CARTEL CAPITULATION WATCH
One of the Muppets on CNBC
said rumors, which proved to be unfounded, were the
reason the DOW rallied so much off its lows. We know it really was PPT
inspired ... an inspiration that ran out of steam.
The DOW closed down 34 to 11,807 and the DOG sank 17
to 2368.
As a result of the gold price suppression scheme,
interest rates which were taken too low for too long, and the propping up of
the DOW by the PPT, the American public was lured into a false sense of
complacency ... also for too long. The Orwellians
set in motion STEPFORDVILLE, where everything would always be FINE.
These same Orwellians destroyed the American free
market system, with its checks and balances, in the process. Now they have
created a growing nightmare with no solution in sight. The American public
can sense their standard of living is deteriorating. That is bad enough. But
Heaven help us if a derivatives neutron bomb goes off on Planet Wall Street. The likelihood of
such an event is becoming more probable ... seemingly on a weekly basis.
Should one go off, it could implode 23, or so, Bear Stearn's
type firms at the same time.
This was the theme of my presentation at our GATA
GOES TO WASHINGTON
conference. If it occurs, the average American won't know what hit him/her.
They will be very angry and very scared ... and it will be very ugly.
Chuck checked in last night…
Bill:
I had to reduce the time frame to 2 years because
the longer terms do not include price changes until the end of the week. I
also included the homebuilders in this one since they are so critical. Royal
Bank of Scotland is UK:RBS.
Pretty amazing, but who cares if you can buy Apple and RIMM.
Chuck
BANKS
13
BROKERAGE HOUSES
17
FINANCIAL COMPANIES
22
INTERNATIONAL BANKS
27
HOMEBUILDERS
U.S. economic
news, which has gone from bad to worse:
09:11 Apr S&P CaseShiller
Home Price Index 169.85 (9:00 ET)
Prior reading was revised to 172.20 from 172.16. The Apr S&P CaseShiller 20 y/y (15.30%) vs. consensus (16.00%).
* * * * *
U.S. home prices extend record slide in
April-S&P
NEW YORK, June 24 (Reuters) - U.S. home prices extended their record slide in
April, with every top metropolitan area now posting annual losses and many showing
double-digit declines, according to the Standard & Poor's/Case Shiller home price index report on Tuesday.
The S&P/Case Shiller composite index of 20
metro areas fell 1.4 percent in April from March and slumped by a record 15.3
percent over the year.
Economists expected prices for the 20-city index to fall 2.0 percent in the
month and 15.9 percent from April 2007, according to the median forecast in a
Reuters survey.
S&P said its composite index of 10 metro areas slid 1.6 percent in April
for a record 16.3 percent annual drop.
Home prices in a dozen of the metro areas have fallen for eight straight
months.
"If there is anywhere to look for possible improvement, it would be that
the pace of monthly declines has slowed down for most of the markets,"
David Blitzer, chairman of the Index Committee at S&P, said in a
statement.
-END-
10:00 Jun Consumer Confidence reported 50.4 vs.
consensus 56.0
May figure was 57.2.
* * * * *
U.S. consumer confidence tumbles in June
NEW YORK, June 24 (Reuters) - U.S. consumer confidence fell in June to its
lowest in 16 years as high inflation continued to sap confidence and pushed
expectations for the future to a record low, the Conference Board said on
Tuesday.
The Conference Board, an industry group, said its inflation expectations gauge matched the record-high 7.7 percent it hit in
May, which will keep Federal Reserve policy makers concerned over price
growth as they meet to decide rates on Tuesday and Wednesday.
The Conference Board said its overall monthly measure of consumers' mood
declined to 50.4 this month -- the lowest since 47.3 in February 1992 --
from a revised 58.1 in
May. May's reading was originally reported at 57.2.
Economists on Wall Street had been expecting a reading of 56.4, according to
a Reuters poll. Their forecasts ranged from 50.0 to 60.0.
The index has now dropped by more than half since last July, when it was at
111.90. Since then, housing market troubles triggered the most severe credit
crisis in at least a decade.
Consumers made a grim assessment of their present situation and their future
prospects. The present situation index dropped to 64.5 from a revised 74.2 in May. The
expectations barometer slid to an all-time low of 41.0 from a revised 47.3 in May.
-END-
10:01 Apr House Price Index reported (0.8%) vs.
consensus (0.4%)
Prior reading was (0.4%).
* * * * *
10:00 Jun Richmond Fed Manufacturing Index reported
(12) vs. consensus (5)
* * * * *
08:05 DOW Dow Chemical to raise prices by as much as 25% in July
(37.62)
DOW will raise the price of its products by as much as an additional 25% in July
in an effort to offset the continuing rise in the cost of energy and
hydrocarbon feedstocks. The company also will
implement a freight surcharge of $300 per shipment by truck and $600 per
shipment by rail, effective August 1. The surcharge applies to North America customers buying chemicals, hydrocarbons
and plastics where Dow absorbs the freight currently. Later this year a
freight surcharge will be implemented in other geographic regions as
appropriate. Furthermore, the company is moving ahead with plans to
temporarily idle or reduce production at a number of manufacturing plants. In
addition, Dow Building Solutions temporarily idled
20% of its European capacity for producing STYROFOAM insulation.
* * * * *
Jesse:
Does Paul
Krugman Understand the US Commodity Markets?
Either I don't understand what he is saying, or I
don't understand the US
markets, or he is just plain wrong
http://jessescrossroadscafe.blogspot.com/2008/06/does-paul-krugman-understand-us.html
***
Check checked in last
night…
An FYI, heads-up…
Bill,
I have a heard a number of anecdotal reports that withdrawing cash from US
banks is becoming difficult … such as $15,000 requires 4 days notice
– and we are not talking small or backwater branches here … I
wonder if you could ask your readers to check availability of cash for
immediate withdrawal from their local bank – in say $10,000 –
$50,000 tranches – very worrying if it is true – because it would mean that a run on the banks has
already begun - in stealth – keep up the good work – John.
TOCOM
Good Evening All:
On June 23rd the seven large gold shorts added 1,634 contracts to
their net short position leaving them net short 66,384 contracts.
STDJ also added 528 contracts to their net short
position leaving them net short 43,603 contracts.
http://www.tocom.or.jp/souba/gold/torikumi.html
In silver the same seven members reduced their net
short position by just 11 contracts to 1,381.50 contracts (60kg deliverable
equivalent).
http://www.tocom.or.jp/souba/silver/torikumi.html
Have a good night,
Scott
Bill,
In the June 23 session on the TOCOM Goldman Sachs made NO CHANGE to their
position; their long position remains at 761 contracts and their net short
position at 8,265 contracts.
Cheers
Adrian
From the MidEast…
Good Afternoon Bill (from Qatar)
It is now 50 celsius outside.An
interesting article in the Gulf Times today stated that the Qatar money
supply increased by 53% in the last year.In an
attempt to diversify its foreign exchange holdings, the Qatar Central Bank,
from a virtual nil base in 2006, has now invested in gold reserves of Qatar
Riyals 1.35 billion (3.65 Riyals to the US$). Generally
the Gulf Co operation Council States have similar policies so maybe Qatar is
not an exception.There is an article published
today which suggests that European Central Banks may not be able to (or have
any desire to) keep up the WAG2 annual run rate of sales until Sept. 09. The
IMF gold sales to fill this void could be crucial (if that gold is not
already swapped etc.) The conditions for a perfect storm for the gold price
just continue to gather pace.
Regards
Nicholas
Fred Hutton…
It's becoming a common consensus that the majority
of junior resource stocks are being manipulated by the use of naked shorts
being facilitated by the Canadian Investment Banks.
You should listen to this excellent audio broadcast (it may take a minute to load) as
it describes the many ways that stocks are being manipulated : http://netcastdaily.com/broadcast/fsn2008-0621-3b.mp3
I don't know about you but I've just about had more
than enough about watching my junior resource stocks continually making
52-week lows regardless of what the underlying commodity is doing. That's
just not normal market activity. AUN a silver producer, just made another
52-week low today...While Oil and Natural Gas are trading at near record
prices, this junior stock (STP) has dropped from a high of $4.46 to under
$0.80 !!
The only junior stocks that seem to be worth more
than two dead flies are those with potash and coal to their name, everything
else is becoming worthless.
That's enough to almost make me sick.
Since the majority of junior resource stocks trade
on the Toronto Venture Exchange, I would strongly encourage everyone to send
an email to the Ontario Securities Commission demanding that they launch a full scale investigation into the current
illegal manipulation of junior resource stocks especially those being
manipulated by the use of illegal "Naked Shorts". It would also be
useful if the commission engaged the assistance of the RCMP's
fraud unit as every trade leaves a
traceable paper trail that should be very easy to follow and corner the rats.
The more crooks we can place behind bars the better off we'll all be. This is
necessary in order to restore market integrity and investor confidence.
Ontario Securities
Commission: inquiries@osc.gov.on.ca
If we launch
complaints to the OSC in large enough numbers we may have a good chance of being
heard and taken seriously and the rules that are already in place can begin
to be enforced!
All we have to do is corner one or two rats and in
their desperation to get a "get out of jail free card" they will
start to squeal on the rest and before you know it, we'll have a patty-wagon
full.
Let's unite and fight these crooks who have been
stealing from us long enough!!
***
Now and the future...
One does need wonder what would be the result in the
economy if this were to happen however (which it surely will), or god forbid,
if the consumer were actually to begin saving money. This is why master
planners smash the gold price down every chance they get, because they don’t want you doing something
sensible, like saving your money. You see, when you buy gold you are saving
your wealth, which is a big ‘no no’ as far as the banks are
concerned. They need money velocities to be elevated in order to keep bank
profits growing, which is all these characters are ever worried about. This
is why they take such great efforts to suppress its pricing, and why the
levels of gold derivatives have exploded,
according to the Bank of International Settlements. It’s taking
increasing effort to keep gold contained however, as reflected in the growth
rate (40% annualized) of derivatives required to keep prices contained.
The implication here is one of these days, with the
increasing amounts of fiat currency necessary to counter a collapsing
consumer, a combination of physical buying in gold, along with demand for
paper pricing mechanisms, will outstrip all constraints, and the biggest
short squeeze in the history of any market will ensue. So make no mistake
about it, having a portion of your wealth anchored in precious metals is an
absolute financial necessity these days, as this will send gold and silver
prices far higher than most can presently contemplate, and in rapid fashion.
In the meantime, master planners keep a lid on the situation by monetizing
everything that goes wrong, which is evident in the growth of M3 shown below.
In the end however, and in classic ironic form, all this liquidity floating
around will lead to the demise of the present system of exchange and
commerce.
And this will all lead to increased liquidity on a global scale (see Figure 6
below), where emerging market producers of manufactured goods and commodities
will be forced to expand their own money supplies to adjust to accelerating
inflation coming out of increasingly bankrupt Western economies. In turn, and
as alluded to above, this will continue to fuel further gains in commodities,
which as you know from recent work on the subject
is our view moving forward. Commodity prices will continue to move higher,
and this will further underpin precious metals prices, where at some point,
like crude oil at present, things will get ‘out of control’.
This is when gold and silver prices will start to make 3 to 5-percent daily
gains – maybe more. You see, the banks will be forced to ‘buy
in’, even if the gold they have sold is formally leased out, and
supposedly the responsibility of hair-brained mining executives. Of course
more recent accelerating derivatives growth (short sales)
cannot be attributed to new mine production because
with the exception of China,
gold production is contracting in most other areas of the world, and so is
hedging. No – these forward sales are naked shorts put on by the
banking community that will need to be covered one day. And as mentioned
above, this should sponsor the biggest short covering rally seen in any major
market ever witnessed, assuming current market are not shut down. This would
naturally be difficult to do with physical gold and silver, which again, is
why we harp on the virtues of physical metals religiously.
SB
From Eric LeMaire of
24hgold.com and a staunch GATA
supporter…
Dear Bill,
I have added today a (I think) nice feature on my site, which is the
"article du jour", the (featured article for today).
I thought it would be nice to honor
you by having you for the first article of this feature, so I started today
on the French part of the site with a part of today's Midas I translated (the
part about what it would be if the press was not liars) .
You can see the result at :
http://www.24hgold.com/defaultfr.aspx
Would you do me the honor
to be also the first for this feature on the English part of the site ? I'll
publish your Midas there tomorrow morning if you allow me.
I hope everything is going well on your side of the
pond,
Toute mon amitié
Eric
Silver coinage in Wallace, Idaho…
Good morning Bill:
I'm not sure you have mentioned this before or not. Apparently silver coins
are actively being used as an alternate currency called "sterling"
in Silver Valley Idaho. It is available in denominations of
5, 10 and 20 sterlings which correspond to 0.25,
0.50 and 1 ounce
of silver respectively. The 5 sterling denomination coin is equal to $5 US.
They are accepted in local retail outlets in Wallace and surrounding areas
but it appears they are scarce now. Can't imagine why.
"We are at the cusp".
Best,
Dennis
The HUI failed to take out
its downtrend line, closing off 4.27 to 413.44. The XAU lost .91 to 179.62.
The fundamental reasons to own gold and silver
continue to go off the charts. It is only a matter of time before the prices
of both go off those charts.
GATA BE IN IT TO WIN IT!
MIDAS
Appendix
Dear Bill,
A physical dealer was seeing selling all day during the Asian hours, which preempted the plunge in NY hours. She could not figure
out why gold was being sold and decided to join the sell side at 905, making
a profitable trade.
The "amazing thing" is that Eur and Crude have recovered, but not gold.
Regards,
David
Bill,
Here's Gregg's ECU assessment after today's huge announcement on the latest
drill results. According to our well-connected friend in Canada, Gregg
is a top-notch analyst in these matters...
Derek
From Gregg
"Today's announced broad zones of semi to
massive sulphides is the most important news to date on San Diego and has huge upside potential for
this property. This confirms the original model development from a few years
ago and is only the beginning. The trend associated with Penoles
Santa Maria mine which has lots of historical
and current data right through to Santa Juana and Chicago and on to San Diego is very strong
and potentially huge for ECU as the company continues it's exploration
program. The most interesting developments and discoveries are very likely
still ahead of the company and none of this present work is in the resource extimates as of yet.
The source of the over 30 close to surface high
grade veins at ECU Velardena property has long been
postulated to be a massive sulphide feeder system at depth and ECU has some
evidence of it's existance below the Mineralized
Corridor level 15-18 discovery in Santa Jauna which has been the focus of the
companies exploration for quite some time along with high grade vein systems.
The San Diego discovery adds further evidence
to that which already exists below Santa Juana and in the closeby
Santa Maria
mine. I look forward to the day that ECU hits massive sulphides deep below
Santa Juana for it could be a monster compared to San Diego given the far greater surface and
vein expression at the various Velardena mines.
We could be entering a whole new era of exploration
at Velardena, that's the possibility, and this
would be over and above the resource outlined to date. I might add that the
above theory has evidence from some prior holes down to level 26, lots of
information from nearby Santa Maria to provide
comparative data and help guide the exploration and now strong evidence from San Diego. The long
term exploration objective has always been to find the source of Velardena high grade veins and it's always been expected
it lies deep and below Santa Juana and will be massive sulphides. The company
has spent months drifting and preparing new drill galeries
off level 18 to go drilling deep while continuing the exploration program
reported on routinely. They have also continued the ramping program which is
required for long term large bulk mining plans and for that matter increasing
access to high grade veins for narrow vein mining.
As busy as it's been the last 2 years it's going to
get more busy as Velardena continues to give up
it's jewels. As much success as ECU has had, the best could be yet to
come."
***
Bill:
History-making events appear to be very close at hand in the international
currency markets. In addition to my nightly reading of the always informative
Midas, the bi-weekly issue of "The Privateer" is also a must-read
for me. This week Bill Buckler provides his readers with insight into what is
at stake between the US$
and Gold. BB gives us the background for the possible cause
behind today's Gold-slam and every other slam that has taken place in the
recent past or has yet to take place. At the very least he and his crew give
us an idea about what we perhaps should expect from these two currencies as
they face off against one another on the global battlefield. (By the way, I
think all of us should start equating Gold to money at every opportunity;
otherwise, it's just another commodity in most people's minds. Money is a
subject that catches anyone's attention at its mere mention.) A few excerpts
from this week's issue are pasted below.
Jay
http://www.the-privateer.com/
"The Approaching Collision:
An enormous global event has now appeared over the event horizon. This event
is the approaching
contest (one could say collision) between the US Dollar and Gold. At risk or
in prospect is the freedom
and liberty of the actual living individual everywhere on earth. To
understand the present stakes, one has
to go back to a world where Gold was not only money, it was the money of the
entire civilised world."
..................................
"At Bretton Woods in 1944, the US Dollar alone
was made "as good as Gold". The US Dollar became the sole
underpinning currency of the post war world. To make sure of this, the
articles of the IMF (a US
creation) prohibited
..................................
"That Post WW II World Ended In August 15, 1971:
That was when President Nixon broke the US Dollar’s connection to Gold
- and the US promise to act to redeem its national currency to all other
central banks at the rate of $US 35.00 per ounce became void.
Ever since, we have been living in that post August 15, 1971 world, a world
in which any debate as to what money actually is has become the prohibited
subject. This US Dollar world is now being torn apart, as nations are beginning
to look for any alternative which will not lose its value over time. Today,
Gold is making its reappearance. It is making its reappearance as official
reserves!
We will know when the US Dollar collides head-on with Gold. Watch for the day
when Treasury Secretary Paulson or
Fed Chief Bernanke has to answer a question at a press conference about -
GOLD."
Jay
Hi Bill
I was glad that my wife and I were able to shake your hand at Vancouver; you guys did
a great job.
I see you and those in GATA as freedom fighters. In
other words it is more than the manipulation of the price of precious metals.
It is about the ever waging battle of freedom itself. There are many flanks
to this battle. There is not freedom where there are manipulated markets.
There is not freedom where there is a fraudulent
money system such as our fiat and fractional reserve system. There is not
freedom where there is bogus and controlled news and information. There are
many other freedom concerning issues such as health, security of possessions,
vices and so on. Some are more individual and others more community oriented.
Our founding fathers wanted to live free and so using their best intellect
and effort along with seeking divine help came up with our constitutional
government that has allowed the greatest freedom and thus prosperity the
world has ever known. But they knew that it wouldn’t last except that
the people remained religiously moral with a sound understanding of freedom
principles. They knew from their study of history that would be very
difficult because there were
always those who sought ultimate power and wealth through enslavement of the
populace. Even though these types could only turn a free people into slaves
by corrupting them there would always arise the very astute at doing so
through promoting vice, ignorance, flattery, fear and so forth.
So here we are, right where our founding fathers
feared we would be at some point, in a corrupted state fighting to retake our
freedom. As always we need leaders. There are always many willing to be
leaders for glory sake but that is not what is needed. The best leader is the
one that would rather not lead but for their love for freedom will and who
are incorruptible and knowledgeable like George Washington was. That is why
freedom loving people are gravitating to Ron Paul.
I get the feeling you are like that.
I get the impression that Ron Paul feels that this battle can be waged without a
tightly structured hierarchal organization. Where each individual will use
their ingenuity and individuals will gravitate to a cause
and organizations and will cooperate with those they desire. But that
requires each individual to dedicate themselves to do something as often and
as much as they can. I feel good about supporting GATA.
Here is an idea that I have been thinking of. I
remember you at one time promoting a move to buy and take possession of
physical silver. You set the example by buying a silver futures contract and
then taking delivery. I don’t know how others did but I went and bought
all I could and talked to others to do so. It seemed like it kind of fizzled.
I think you have tried to mobilize different movements andfrom
what I understand you have pretty much given up on rallying movements.
I would encourage you to give it another try;
something in the order of a silver bomb (like Ron Paul’s
money bomb), where you again would take delivery of a silver futures
contract. If there is any opposition it would give you the opportunity to
teach some correct principles like if you are asked what do you need the
silver for you could say something like I just want it and in a free country
you have that freedom if someone wants to sell it to you, which someone did.
Or you could say you are saving for your retirement or something like it. But
you could network with all you could to get every one involved in obtaining
physical silver.
But this time it would not be a one time deal but a
continuous effort. Each delivery month GATA would take delivery of a
contract. Supporters of GATA could make sure GATA has the funds to do it
(like a money bomb).
Every one would be talking to anyone to get any
silver they could, not as an investment but as a freedom movement savings.
Maybe we would all try to convince people to become more self reliant which
means to have set aside a months worth of cash for emergency purposes but
since currency buys less and less gasoline and food and since silver keeps
up, it is prudent to put it in silver. We could have a goal of getting 5000
people to get their $5000 worth of silver. We could give businesses like Kitco notice that we are going to help their business and
give them free advertising. We just want them to get geared up to take care
of their customers wants. Maybe we could suggest some could even get prepared
for retirement. In the early part of the USA history an adequate
retirement would be $50,000 or around 50,000 oz. of silver
which would be around $1,000,000 today. One probably could survive on a
retirement of $1,000,000 if it was in silver. This would end the manipulation.
But until people start learning the principles of freedom it won’t do
much good. So it would be good to include in this project besides encouraging
any and everyone to purchase silver to also purchase Ron Paul’s new book. Maybe the manipulation is already
coming to an end but to make sure we should go on the offensive where ever
possible. Keep up the good work and I am trying to figure out the best way
that I can do my part in engaging the tyrants. I get the feeling that this is
one of the major purposes of this life, to see how tall we stand in the
struggle for freedom and it will have a lot to do with were we are in the
next life. I feel if we seek it we can get divine help.
Landel
NV
Dear
Bill,
I put together a study on correlation between several
FX crosses and Silver/Gold.
I does prove in some point the ongoing manipulation
You present on LeMetropole.
FX/Metals Correlation
I was doing some portfolio optimizing on forex data, and this work inspired me to run the same
tests on metals versus FX pairs.
I’m sure everyone had a thought “What
happens to silver/gold when the dollar fells?” Well there is a
statistical tool, correlation which can answer this question on past
observations.
Some math info about Correlation:
- Correlation may be either positive or negative
- The values are measured from -1 to 1, where 1
means for examle that if the Dollar moves up, the
Gold moves 100% sure in the same direction. A value of -1 means the pair goes
in opposite direction
- Lower values – around zero – mean the
two Symbols are not or little correlated do not affect each other
I created a cross-table of calculated correlations,
I used the data from 1.1.2007 up today’s date, and converted the values
from <-1;1> to percentage – it’s much more human friendly.
The guide for reading it:
- Find the cross You’re interested in –
large square
- There are more time periods calculated, 1 day, 4
hours, 1 hour, 30, 15 minutes plus an average of all periods – so there
are 6 smaller squares inside. The software I was using computes 3 different
ways of correlation so there are 4 rows – good is the first one, which
averages all 3 correlation computation types.
The first column is for Absolute Values and is what You
want to focus on, the other two, relative values and volumes – well, I
could not find any meaningful representation yet.
- Green means positive, red negative correlation.
Darker colors are used for uncorrelated values,
brighter ones mean higher correlation.
As You can see the same pairs GOLD/GOLD have of
course 100% correlation.
Let’s have a look At the two metals.
Gold and Silver on the average obtained high values
– 90% for absolute price, which means when gold flies, usually silver
does too.
Volume has no real meaning and in a long run, the
volume tends to be the same.
Metals and EUR/USD – here starts the funny
part. When USD gets toasted, this pair moves high. So should the GOLD and
SILVER of course, but hey, 60% for absolute price on the average?
And even better, on 1 day Timeframe moves it gets
22%? Something is not right I think… Silver receives similar lower
values, but still a little better than gold.
So what this tells us, is that in short periods, the
price of metals reflects the changes in EURUSD values, but the bigger the
period, the more is the CABAL capable of corrections…
|
GOLD:
|
SILVER:
|
|
|
|
GOLD and GBP/USD – the average correlation
over all periods is up to 73% and the daily period received 50%. Much better
than the EURUSD. The answer might be the Central Bank of England does not want to intervene that much,
has less paper money to waste than the ECB or their problem is The location
of physical market in London…
|
GOLD:
|
SILVER:
|
|
|
|
You may look at other pairs for yourself,
I uploaded the table to this URL: http://ticker.php5.sk/corrvis.html.
With both metals bound only to USD, the correlation
values should be at least In the area of 75 and more on all the periods, but
the numbers tell us something else.
Thanks for any corrections of my
thoughts/calculations,
Miro K.
Much more
for subscribers…
Bill
Murphy
Lemetropolecafe.com
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.
| 
