Gold has been on quite a run since March. It appears to be “oversold,” and could experience a short-term correction after an agreement is reached on the deficit. If so, I expect the correction to be brief and shallow.
GATA is sponsoring a conference on precious metals in London this week. Whistleblower, Andy Maguire will be one of the speakers. Six years ago, after the GATA Yukon conference, the price of gold and silver quickly moved up to new highs. I expect the same result again this time too.
The debt problems plaguing Europe’s PIIGS and the unbridled spending of our own government, monetized by the Fed, are intact. Nothing is being resolved or solved on either side of the Atlantic. The key reasons that have steered investors into gold and silver are still there. No, the bull market is not over – it is barely getting started.
For those of you who think that paying more than $1600 for an ounce of gold is too much, I ask you would you rather hold onto 16 one hundred dollar bills for the next five years, or one ounce of gold? Forget the price – look ahead a few years and consider the inflation built into our system. The choice should be a simple one.
In today’s daily, our friend Andy Hoffman talks about GATA and the people who shaped his views financially. Andy started following the likes of Russell, Sinclair and Bill Murphy (and Chris Powell of GATA) in 2002/2003. No wonder we see things so much alike. They were the same people who influenced me as well. The only difference between Andy and myself is I am two decades older and have been following Russell, Sinclair and others since the mid-80s. The key to your financial success is in knowing WHO to listen to. The GATA/LeMetropole Café slant on the markets is based on the premise that the central banks have manipulated gold (and silver) for decades to give the impression that the dollar is a safe store of value. I cannot see how any intelligent writer or analyst can honestly come to any other conclusion, but still – most do, and those of us in the GATA camp are ignored or laughed at. I promise you, we will not be the brunt of their sneers for much longer. Our time is fast coming and there will be a lot of crow eaten by the mainstream. It will be served on ornate gold and silver platters.
Here are a few comments that Ted Butler released over the weekend on silver. Ted Butler writes a worthwhile newsletter, one that you should check out. Butler and David Morgan are THE main voices on silver.
The signs of tightness in the wholesale silver market continue. The movement of metal into and out from the COMEX warehouses actually quickened this week, something I didn’t think was possible. The SLV appears to have received all the silver I thought it was “owed.” The most recent short position in shares of SLV indicated a further reduction of 2 million shares to 31.3 million shares as of July 15. The short position in SLV is now down 6 million shares from the record 37+ million shares held short a month ago. I am somewhat encouraged by this reduction, as it may mean that BlackRock, the Trust’s sponsor, may be working behind the scenes to get this fraudulent and manipulative short position reduced. I never expected BlackRock to openly admit any concern or responsibility (that’s not something large financial institutions ever do) for the short position; but I was hopeful they would quietly work to get it reduced anyway. It’s something I’ll continue to monitor. Clearly, the current short position in SLV amounts to more than 9.5% of total shares outstanding, so it is still outrageously large and manipulative. (GLD’s short position is more than 7% of total shares outstanding). There is no metal backing any shorted shares. Period.
US Mint sales for Silver Eagles remained strong for the month of July, especially compared to Gold Eagles. For the second month in a row, more money was paid for Silver Eagles than was spent on Gold Eagles. Considering that gold is 41 times more expensive than silver that is truly a remarkable achievement and highlights the investment flow into silver. It is also completely at odds with overall price patterns on the COMEX, where the commercial crooks are working overtime to depress the price of silver.