I’m getting tired writing about the manipulation of gold and the stock market. It has been going on for so long that you run out of things to say. For all of you “investors” out there, lately gold and silver have not offered you anything to jump up and down about. I admit it; you could have done better in the stock market (not precious metals stocks, though). But for those of us (like me, Andy Hoffman, Bill Holter and Andy Schectman) who bought gold and silver physicals, over the last decade, we bought it first and foremost as “financial insurance” and as a hedge against the dollar’s loss of “reserve currency” status, a major downturn in the stock market and the economy.
Gold and silver’s recent performance is much easier to take if your goals are like ours – insurance and long-term. You’ve seen us write that “gold is not an investment, it’s money” over and over again. That’s not a cop-out, it really is the truth. With that mindset, you buy it, put it safely away, and forget about it until you need it, or are ready to pass it down to the kids. It forces you to have a big picture, long-term outlook.
Still, it’s demoralizing at best and enough to make you angry at worst. What bothers me more than anything is that many of our readers hear what we have to say, nod in agreement, and then get upset with us because in the short-term prices are not rising. Maybe it’s our fault for falling into the trap of predicting the price and the time frame. What seemed realistic, in this case, turned out to be a disappointment. We were all disappointed when Jim Sinclair’s call – gold will not close below $1600 again – and gold will take off by March 27th failed to materialize. He has been so right so many times before that we all felt “Mr. Gold” was infallible. Sinclair asks you to forgive him if he is just nine days off. But that just goes to show you the Gold Cartel’s power to move the markets in their favor when it suits them. I think it suited them perfectly to discredit Sinclair’s predictions.
I don’t need to re-list all the reasons that gold “should” be going up now; you’ve seen them all and they make a strong case why gold should be rising, but coulda, woulda shoulda doesn’t change a thing. The truth is, gold and silver will go up when the mega-shorts on Comex decide to switch their paper positions from short to long. Comex is just a huge gambling casino and profit center for JP Morgan and the Commercials and the smart large hedge funds. They try and pick each other’s pockets every single day. But in the background you have the government and the Fed pulling strings and aiding the gold and silver shorts.
The evidence suggests that the Fed, and the PPT – with the help of several other major central banks hold – down the price of gold by leasing it into the market. It must be happening because the demand for the physicals is now so strong that it requires a great deal of additional gold, above and beyond what is mined, to keep its prices from rapidly rising. The gold is coming from “somewhere,” and this is the most probable and logical source.
The PPT also exerts a daily intervention on the stock market. They come in, usually at the end of the day, and purchase S&P 500 contracts. (See KWN’s interview below, on this topic). They are constantly intervening to keep the Dow from falling.
But they are merely buying time. Their goal is to keep the people happy; keep interest rates artificially low so the housing market shows signs of life; keep the stock market rising so everyone thinks the economy is growing; lie about the unemployment numbers and inflation so everyone thinks all is ok in The Land of the Free and Home of the Brave; and to hold down gold and silver so no one worries about inflation, the dollar or the economy. They are very good at what they do. But I have to tell you, if you are disappointed with gold and silver’s performance, for the last 18 months, the manipulation will soon come to an end and even though the metals are your insurance policy now, they will also turn out to be one of, if not the best investment you ever made. Of that I am certain.
Now that I have that out of the way, here is a must read short interview from King World News with Jim Sinclair:
Sinclair – This Will Create The Mother Of All Financial Crises – jsmineset.com
Today Jim Sinclair spoke with King World News about what he believes will create the “Mother of all financial crises.” He also discussed the coming collapse and the desperate government intervention taking place in key markets. Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say.
Sinclair: “The Plunge Protection Team (PPT) is not a speculation. There is a group of advisors to the White House which deals with markets. They also gather when markets are in extreme conditions. So to be clear, there is an organization which is designed to intervene in the markets.
The problem now is they are manipulating every market on the planet. So you had this group which was created to stabilize during extreme conditions that has now decided their job is to run all of the markets of the world….
Cut him some slack; he will be right even if his prediction turns out to be a week or two early
P.S. Gold closed above $1,550. That is the short-term key number to watch. So far, so good – gold closed yesterday at $1.553.60!