Looking for guarantees?
All I can offer you is a big picture scenario. Gold is going to sell in the thousands of dollars and you can count on that. But that does not discount the “possibility” that it could go lower first. It’s confusing. But that’s life.
The confusion is caused by faulty data. The ongoing Release of misleading Official Data by U.S., Chinese and other Major Nations causes distortions in the markets. Real U.S. GDP is a Negative 1.7%, Real U.S. Inflation at 8.81% and Real U.S. Unemployment is 23.2%. It’s no wonder that money is flowing out of gold and silver and into the stock market.
Gold: Bull or Bear?
Addison Wiggin says gold will hit $1000 before it takes off. He does expect it to hit new highs, but not yet. Larry Edelson has the same view. Gold will either bottom this month or in May before it renews its bull market push. In fact, all of the “chartists” are bears now. But the old timers, people with a “feel” for the market and a long history think gold is getting ready to move soon. Heading that list is Richard Russell and Jim Sinclair, the “Mr. Gold” of the last bull market.
One thing that would immediately crush the dollar and send dollar-gold to the stratosphere is the following, by Richard Russell:
Richard’s Latest Remarks
I offered the thought that the US could unilaterally re-set the price of gold to a much higher number and overnight re-liquefy the system and minimize the pressure of our enormous debt. The price of gold has been re-set twice before by the US, so why not now? Yet nobody in DC has even broached this idea. Why?
Then the full horror of the situation struck me. The reason raising the price of gold isn’t discussed is that we probably haven’t got the gold. Like Britain, we may have sold much of our gold or loaned it out to bullion banks!
There have been rumors of the US having “lost” much of its gold. Then why the hell doesn’t the Treasury have an audit on our gold holdings and end the rumors? What is the Treasury hiding? We need an audit to prove that the US has the gold.
–Dow Theory Letters, December 31, 2013
Here is the best article I’ve come across to start the New Year from Ted Butler. It is a must read for all of our readers.
2013 – The Year of JPMorgan
Theodore Butler | January 3, 2014 – 10:22am
Probably owing to the dramatic decline in the price of gold and silver, I’ve read scores of year end metal reviews, more than I have ever read previously. Like most of you, I read in order to learn. Therefore, I approach every year end review and outlook with an eye towards understanding just what caused the prices of silver and gold to decline as much as they have and what that portends for the New Year.
I know I look at silver and gold differently than most commentators and what follows I haven’t seen elsewhere, for better or worse. Let me assure you that I’m not trying to be different for the sake of being different; my objective is to understand what really moves the price of silver and gold – no more, no less. I’m not interested in making up stories that can’t be verified or documented; I would not put my name on anything that I did not believe to be factual and accurate.
As has been the case for the past five years (since it acquired the concentrated short positions of Bear Stearns), 2013 was the year of JPMorgan in silver and gold. Everything important that transpired in silver and gold can be traced to JPMorgan, just as this bank will dictate what happens in the future. I realize I am being overly specific and that many different factors influence the price of any market; but the circumstances surrounding JPMorgan are so overwhelming as to render all those other factors combined moot when it comes to silver and gold.
From the very beginning of the year to the last two days of 2013, JPMorgan has dominated and controlled the price of silver and gold. Here are the documented facts. At the start of 2013, with gold at $1650 and silver at $30, JPMorgan held short market corners in COMEX gold and silver futures. JPM was short 75,000 gold contracts (7.5 million oz.) and 35,000 silver contracts (175 million oz.). JPMorgan’s short market corners at the start of 2013 amounted to a 21% net share of the entire COMEX gold futures market (minus spreads) and an astounding (but typical) 35% of the entire COMEX silver market. No single entity had ever held such outsized and anti-competitive shares of any important regulated futures market. It is unreasonable not to associate such extreme market corners with what followed in price.
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