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On Thursday, June 27th, I was enjoying an early evening Rockies/Mets game at Coors Field; when I looked at my phone to see a PM WATERFALL DECLINE in the day’s thinnest trading hours; per below, for the second time in three days…

24 Hour Spot Gold Bid 6-27-13 2358

Gold was smashed as low as $1,180/oz., and silver $18.30/oz.  At these levels, essentially ALL the world’s gold and silver mines were unprofitable, whilst prices had broken so far from their underlying fundamentals, it was hard to believe ANYONE – other than die-hard, know-nothing PM bashers – could possibly believe they reflected REALITY…

24 Hour Spot Silver Bid 6-27-13 2358

Since then, the ECB has committed to “unprecedented” market support…

Draghi: ECB takes Unprecedented Step towards Forward Guidance

…amidst collapsing continental economies…

Italian downgrade highlights fragility of Spanish debt

…whilst China’s economic data suggests recession

China’s exports slump in June; worst reading since recession

Inflation riots have broken out in Turkey, Brazil, and Argentina; Greece was again “bailed out”; the Portuguese government is on the verge of collapsing; and an Egyptian military coup threatens Middle Eastern stability – pushing oil prices up to $106/bbl.  And now, for the coup de grace – “Helicopter Ben” admitted – Wednesday evening – that the Fed’s fabled “tapering” strategy is OFF THE TABLE…

I think you can only conclude that highly accommodative monetary policy for the foreseeable future is what’s needed in the U.S. economy.  If financial conditions were to tighten to the extent that they jeopardized the achievement of our inflation and employment objectives, then we would have to push back against that.

Reuters.com, July 10, 2013

With RECORD spec short positions on the CRIMEX PAPER market; the “Commercials” just shy of taking their first NET LONG position of the ENTIRE 13-year PM bull market; and worldwide PHYSICAL demand setting RECORDS, it would appear we may have just seen “AN HISTORIC BOTTOM” in the PM markets.

Only time will tell how long TPTB can divert economic law; and god knows, they’ll do EVERYTHING in their power to prevent this snowball form turning into a WORLD-DESTROYING AVALANCHE.  However, it’s safe to say the odds of moving much lower are scant; – as at lower levels, gold and silver mines would shut down “left and right”; and above all, the underlying fundamentals of GLOBAL ECONOMIC DETERIORATION, EXPLODING DEBT and ACCELERATING MONEY PRINTING have not let up one iota.  Nor will they, EVER; until the GLOBAL FIAT PONZI SCHEME collapses – catapulting PM prices to their true, market-clearing values.