While riding Sunday morning – 50 miles, not bad – I was inspired by the simplest of concepts; the impact of gold prices on market sentiment. This is far from a novel idea, but when coupled with hard data, one can see why TPTB are TERRIFIED of the slightest increases in interest rates and PM prices.
As Global Meltdown III -i.e., “the Big One” – passes through its summer “eye of the storm” (due to MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA), it’s becoming glaringly obvious PMs are ready to EXPLODE…
As I prepared to write this RANT, David Schectman coincidentally gave me the perfect intro, as he had the same topic on his mind…
Our friend Bill Murphy, LeMetropole Café’s Editor in Chief, often writes that price action creates interest in gold and silver. All the Cartel has to do is hold the price in a trading range – as it has for months now – and excitement and interest disappear. That’s pretty much the way it works, and easier to pull off during the summer months, when interest is at its lowest anyway.
And thus, my “proof” of how rapidly things can get out of hand when PMs gain sufficient momentum. In the below chart, I plotted hits on my SGT Report podcasts with gold prices at the time. As you can see, the correlation is unmistakable – and even more so, given the following commentary…
The dates at the bottom of the chart correspond with my employment at Miles Franklin, with the first SGT podcast – on November 2nd, 2011 – just one week from my October 27th start date. Consequently, widespread marketing of the “Ranting Andy” brand had not yet occurred, keeping the initial tally to just 9,000 hits. However, it’s safe to say that if I had been at Miles Franklin for some time before that podcast, the number would likely be significantly higher – probably 15,000 or so based on my current popularity. Thus, picture the initial plot for the blue line (podcast hits) as closer to 15,000, further increasing the correlation of the two lines.
As you can see, podcast hits plummeted following December’s “OPERATION PM ANNIHILATION II”; then surged as gold soared toward $1,800/oz in February, plummeted anew following the February 29th “LEAP DAY VIOLATION,” and leveled off once gold commenced its current three-month trading range. Actually, I’ll pat myself on the back, as hits are nearly 15,000 for the latest podcast -July 21st – which isn’t finished rising.
Once more, look at the February 23rd tally of nearly 30,000 hits, and picture how many PHYSICAL buyers were active, when gold reached $1,790/oz, and silver $37.50/ounce. Actually, no need to picture it, as I am telling you as an employee of a leading bullion company. Not to mention, gold’s unique property of INELASTICITY, proving my contention it is NOT an investment, but MONEY.
Any time someone tries to relate “declining gold demand” to rising prices is either MISINFORMED or LYING, as decades of data prove otherwise. True, jewelry demand slows with prices; particularly in India, the world’s largest gold consumer. However, jewelry is IMMATERIAL in the overall demand picture, as it is MONETARY – NOT jewelry – demand that has driven gold prices higher for 12 years.
MONETARY demand – and the aforementioned price INELASTICITY – is what scares TPTB to death, as they KNOW how fragile the system is. That is why they are naked shorting PAPER PMs at an “UNPRECEDENTED” rate, an unsustainable course that will split the PAPER and PHYSICAL markets in two, just as it did in late 2008. In fact, the next time I get 30,000 hits on a podcast, PHYSICAL gold and silver supply may disappear completely. Ultimately, I expect podcast hits to reach 50,000-100,000; however, when that occurs, the END GAME for the financial system will have arrived, and the END GAME for countless billions not prepared for the inevitable currency COLLAPSE.
PROTECT YOURSELF, and do it NOW!
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