Speaking of take downs… hearing from reliable sources the BANKING CRIMINALS are going to take gold to 1575 and silver to 28 level for expiration on 22nd…just another attack amongst many…and the new COT says it all…
When I awoke this morning, this email was in my inbox, addressed to Gary Gensler and Bart Chilton of the CFTC and bcc’d to myself and many others. Written from a money manager focused on the PM sector, it depicts the FEAR stricken into the hearts each day of gold and silver investors (don’t worry, readers, the statement is based solely on speculation).
From the second the NYSE closes each afternoon (when the typical pre-Asian gold takedown commences), to 3:00 am EST (when obsessive traders watch the first sharp gold decline of the Western trading day), to 7:00 am EST (when gold is walked down in front of the NYSE opening), PM investors watch the Cartel for signs something horrible WON’T HAPPEN, under the assumption it will. Even weekends are stressful, as the closer we get to Sunday at 6:00 PM EST, the more intense the ANGST of a possible early evening takedown, perhaps even a SUNDAY NIGHT PAPER MASSACRE.
Then the FEAR at 8:00 AM EST, just before the COMEX opens, when early Cartel “signals” are often spotted; the actual 8:20 AM COMEX open; the usual economic data at 8:30 AM; the 10:00 AM PM Fix; and, of course, the potential “NEWS” at any given time, replete with Cartel ALGORITHMS programmed to take PAPER gold down simultaneously. And if you can make it through this 20-hour cycle with your PM portfolio, and SANITY, intact, you get to 12:00 PM EST, the “cap of last resort” where essentially all gold gains end for the day.
THIS is the life I led for nearly a decade, one of FEAR, STRESS, and MISERY watching the Cartel attack both my net worth and my MIND.
During this period, I learned life lessons about a variety of topics, including human nature, politics, and corruption, cumulatively yielding a metamorphosis that has changed me forever. Becoming RANTING ANDY was a tortuous experience, but thankfully I navigated the treacherous, Cartel-infested waters intact due to a constant high-grading of my portfolio. After each major Cartel attack, I reduced my holdings of PAPER gold and silver investments (i.e. mining stocks) and increased my holdings of PHYSICAL metal. And an amazing thing happened along this time line. When each successive attack occurred, I lost less money, and more importantly, was less stressed and fearful.
Rinse and repeat, again and again, until I looked up this summer at a portfolio 100% invested in PHYSICAL gold and silver, which will have to be pried from my COLD, DEAD HANDS. Not only do I no longer FEAR Cartel attacks, but I dismiss them with nary a strong emotion. Sure, it angers me to watch nonsensical waterfall declines, but frankly I expend more energy these days RANTING about PPT support of the Dow, which I have ZERO economic interest in, than Cartel gold capping.
Just a year ago (60% mining stocks/40% physical) and certainly two years ago (80% mining stocks/20% physical) and four years ago (100% mining stocks/0% physical), I was writing similar emails as the one leading this RANT, an expression of frustration and, more importantly, the aforementioned FEAR. Holding PAPER gold and silver investments (mining shares or ETFs) is hazardous to one’s financial AND mental health, and for roughly 98% of investors HAS BEEN, and WILL BE, unprofitable, particularly if leverage is employed. Just ask John Paulson, who was stopped out of eleven million shares of GLD during September’s post-Labor Day DEATH STAR attacks, only to watch the price rocket right back up within weeks.
Aside from being one of the world’s most despicable inhabitants, John Paulson is the ultimate WEAK HAND, a hedge fund manager running other people’s money on leverage, putting the majority of his gold investment into an ETF “tracking stock” holding little actual gold. In some ways, I liken a position like this to a lightning rod during a thunderstorm, literally attracting Cartel attacks.
In the 100 or so Cartel attacks I was victim to over the past decade, I sat at my computer in FEAR and ANGER, desperately selling mining shares to reduce my exposure to a falling knife; cursing the world; writing profanity-laced emails to anyone I could; and sleeping restlessly with dreams of plunging gold prices and mining stocks. Just like John Paulson did in September, with nearly $2 billion of GLD slipping through the fingers of his WEAK HANDS.
Conversely, do you know what RANTING ANDY did in September, when gold was taken from $1,920 to $1,530, silver from $45 to $26, and the HUI from 620 to 480 in roughly two weeks time?
Not only did I not sell ANYTHING, I didn’t even CONSIDER selling. And not only did I not CONSIDER selling, the thought never even CROSSED MY MIND. And even if it had, was I really going to go through the hassle of mobilizing my PHYSICAL gold and silver to ship to a dealer? Of course not, as my PHYSICAL gold and silver is held by STRONG HANDS.
I ASSURE you, once you TOUCH a real, genuine gold or silver coin, you will never want to let it go. Too much HISTORY is behind its value, too much WORK went into its production, and too much is at STAKE to risk losing it. For MILLENIA, mankind has fought to the death for the ownership of gold, more so than for even love or religion, a human TRUTH that will NEVER change. Gold and silver supply will struggle to rise throughout our lifetimes, but demand will build and build until it EXPLODES sometime soon, seeking to “fill the gap” caused by a decade of the most vicious price suppression scheme in the history of mankind.
When this happens, market volatility will surge by MULTIPLES of the WORST levels we have ever seen. Remember when the VIX hit 45 last month, or 65 at the height of GLOBAL MELTDOWN I in late 2008. What will you do when the VIX hits 100? Or 200? Or 500?
And speaking of the European crisis, it gets worse with each passing day. Contrary to the National Inflation Association’s irresponsible “call” that Italian bond yields were set to decline sharply due to the certainty of an ECB bailout, they EXPLODED this morning back above 7% following a horrific Spanish debt auction, which itself saw EXPLODING bond yields.
Have no fear, the ECB is here, yet AGAIN intervening in Italian bonds.
Then why, oh why, are French bond yields EXPLODING?
French banks have the greatest exposure to Italy by far, so shouldn’t French yields fall when Italian yields are taken down?
The only reason French yields would rise would be if the market doesn’t believe the ECB will be successful in bailing out Italy, as the NIA erroneously believes.
Perhaps the French CDS market has its own view, such as we are seeing THIS MORNING. Speaking of “escape velocity”…
The NIA puts out some of the best macroeconomic work in the industry, including its piece yesterday on the hopelessness of U.S. budget deficit discussions (don’t forget about the looming “Supercommittee deadline just EIGHT DAYS from now). However, it tries to “trade” the market too much, attempting to mix a for-profit motive with a not-for-profit veneer, which nearly ALWAYS leads to LOSSES for its followers. TRADERS and PAPER INVESTMENT HOLDERS are WEAK HANDS, which cannot stomach the GOVERNMENT MARKET INTERVENTIONS targeting their wallets.
Moreover, the NIA has fallen for the oldest fallacy in the book, literally what I learned in “Series 7 101”, i.e. PAST RESULTS ARE NOT PROLOGUE. Comparing Italian bond yields of yore with those of today are like comparing the 1980 gold market with that of 2011. Not just apples to oranges, but Martian apples to Venutian oranges!
Below is a statement from last week’s NIA “call” that Italian yields were set to sharply decline. I mean, c’mon! How can one compare Italian bond yields of “many decades ago”, when there was no EuroZone, Euro Currency, or ECB? Italian debt was manageable back then, and now is the third highest, in ABSOLUTE TERMS, on EARTH.
Although a 10 year bond yield for Italy above 6% may be a new high for the Euro-era, Italy’s 10 year bond yield averaged well above 6% for many decades before the eurozone was created. Before joining the eurozone, Italy was able to survive even when their 10 year yield reached a high of 13.75% in 1995.
Why not just say “U.S. 10-year yields were 15% in 1980, so certainly we can handle 0% now?”
I guess it matters not that in 1980, the Federal debt was just $1 trillion, the nation’s industrial strength unparalleled, and the dollar strong. Not only that, but when 10-year interest rates did surge past 15% back then, all that resulted was a minor recession, followed by a decade of depressed commodity prices and 20 years of prosperity.
Let’s fast forward to today, with “official” Federal debt breaching $15 trillion as we speak, and the “unofficial” number between $100 and $200 trillion. America’s industrial base has been gutted, the dollar decimated, the nation’s infrastructure, and international reputation crumbling and, despite raging inflation for a decade, the Fed has been too FEARFUL to raise interest rates any higher than ZERO.
In fact, Benny and Co. are so scared of GREAT DEPRESSION II, they feel the need to promise its ZIRP policy for AT LEAST TWO YEARS! Too bad it’s going to be far worse than even the direst times of the 1930s.
Fundamentally, America sinks deeper into the rabbit hole each day, or should I say the gaping crater left in the Gulf of Mexico by BP. While the Gulf’s toxicity increases at a rate equaled only by Japanese radiation, and oil prices continue to rise, America’s dependence on foreign energy is SOARING. Perhaps the costly, but WORTHLESS Department of Energy was the mysterious third agency Perry will eliminate when he becomes President.
Oh wait, he’s from Taxes. I mean Texas.
Conversely, I know someone from Texas that would eliminate the DOE TODAY if he could, a chap named Ron Paul. Paul also claims American banks have over $1 trillion of exposure to French and German banks alone, which sounds to me a like a recipe for BANKRUPTCY (if it’s possible for already BANKRUPT entities to become MORE BANKRUPT).
But why listen to Ron Paul, that guy that gets edited out of every debate clip on every major news network?
He only is the Presidential FRONTRUNNER in the REAL WORLD!…
Or to China, America’s largest creditor?…
Or the implications of COLLAPSING European economic activity?…
Particularly when its largest banks, from its supposedly strongest countries, are headed toward bankruptcy…
Or when the HEAD of the Euro Zone is PUBLICLY advertising its coming exit…
Or when the supposedly most bearish gold prognosticator, George Soros, is actually BUYING gold…
Or, for that matter, the Russian Central bank?…
And finally, if you want to be experience the ULTIMATE in SURREALITY, the ULTIMATE in life imitating art, check out this BRILLIANT, and PRESCIENT, G.I. Joe cartoon from 1985. This is possibly the COOLEST LINK I have EVER POSTED on a RANT!
Readers, each day we move closer to the “EUREKA MOMENT” when popular PERCEPTION is permanently disjointed from reality; when “Occupy Wall Street” becomes the mantra of the BILLIONS, not just the THOUSANDS. At that point, no amount of money-printing or market intervention will matter, as the FLIGHT TO REAL SAFETY will launch with the intensity of 1,000 nuclear warheads.
REAL SAFETY is defined as REAL MONEY, i.e. PHYSICAL GOLD and SILVER, as well as FOOD, ENERGY SOURCES, OTHER LIFE NECESSITIES and ITEMS OF INTRINSIC VALUE. Once this movement begins, it will likely be too late to PROTECT YOURSELF by acquiring these items, certainly at prices anywhere near the current levels.
Thus, you must ask yourself this:
Do you want to be like the OLD, WEAK HAND Ranting Andy, living in FEAR each day and night, sitting by your computer praying to survive and selling everything you own at fire sale prices?
Or, do you want to be like the NEW, STRONG HAND Ranting Andy, whose grip on his PHYSICAL gold and silver is equaled only by his convictions?
PROTECT YOURSELF, and do it NOW!