My friends, we are on the cusp of financial history! It’s late Friday afternoon, following a week in which the “powers that be” got a glimpse of the relentless power of Precious Metals. Which have assuredly, in all currencies, resumed the bull market that commenced at the turn of the century, en route to reclaiming their role as the “once and future” monetary kings. Sure, the PPT managed to salvage the week with a patented “hail mary” equity rally at day’s end. However, there’s no disputing the rapidly accelerating momentum of the world’s most desired – and care of 15 years of suppression, undervalued assets; gold, silver, and platinum. Which, when they inevitably explode in late-90s-like dotcom stock fashion, will destroy all remaining remnants of the control the “powers that be” have held over financial markets since the 2008 crisis. And this, with the Cartel putting more effort into suppressing PMs than ever before!
In other words, the walls are rapidly closing in on the Cartel – as exemplified by the ramifications of January 28th’s historic silver “fix” – when six of the world’s largest miners resigned from LBMA trading; the April 8th Sprott PSLV secondary offering; the April 14th Deutsche Bank admission that it has suppressed gold and silver prices for 15 years; and the April 19th launch of the Shanghai gold fix. And oh yeah, record high physical demand, in an environment of record low available-for-sale inventories; declining production; and exploding money printing.
Everywhere one looks, the signs of a monetary system on the verge of implosion are evident – from political and social revolutions – including the one that will likely put Donald Trump in office; to collapsing economic activity; and surging “alternative monetary” assets, like Precious Metals and – yep, Bitcoin. To that end, it couldn’t be more obvious that Bitcoin is on the verge of a major “quadruple top breakout” above $460 or so…
…as a preliminary to the ultimate quadruple top breakout, when silver inevitably breaches $50/oz…
Central banks’ best efforts are miserably failing – like the Bank of Japan’s “policy error” this week, inciting a Yen surge when it aimed to orchestrate a plunge. Which is a big reason why stocks subsequently plunged, whilst Precious Metals surged! In other words, Central bank credibility is collapsing – presaging what may be the most violent market turmoil in generations, and the biggest-ever Precious Metal spike. I’m not saying, by the way, that such an event must occur now. That said, in the big scheme of things, “now” has never been sooner.
To that end, the supposedly invulnerable “Commercials” appear to be on the verge of annihilation – contrary to what so many fear-mongerers have predicted, including many so-called “allies” within the Precious Metals community. Quite appropriate, as this is the fifth anniversary of the May 1st, 2011 “Sunday Night Paper Silver Massacre” – which created the rightmost spike in the above chart, enabling the Cartel a few more years to inflate the largest bubble in financial market history.
To wit, today’s COT report, published just before the NYSE close, depicted said “Commercials” – i.e, the Cartel – achieving their largest ever paper silver short position, as of Tuesday afternoon. Which undoubtedly, was increased further in a vain attempt to slow surging prices on the ensuing three days. This is exactly what I said would happen, for the plain and simple reason that we are BACK IN A PRECIOUS METALS BULL MARKET! Only this time, the Cartel will NOT be able to fabricate stories of bin Laden’s death, in an attempt to “cover” a massive paper raid.
Inevitably, just as in April 2011, the Cartel will be forced to cover its paper shorts – just as Goldman Sachs did today, when it was stopped out of its “short sell gold” recommendation from early February, nearly $100/oz ago. And when they do – likely, holding who knows how much physical metal behind the scenes – we’ll look back at these five years of Cartel infamy and smile; knowing we took the “powers that be’s” best shots, but held fast to our unwavering belief that “Economic Mother Nature” would inevitably win the day. Not that the state of the world will be anything to smile about, but at least we’ll know we did everything in our power to protect ourselves from what’s coming.