For years now, bad news has been deemed “good news” by government manipulation of stocks, bonds, Precious Metals, and anything else they can wrap their HFT algorithms around. And for at least the 13½ years that I’ve followed Precious Metals, all negative geopolitical events – you know, the types that have catalyzed investors to rush to gold and silver’s “safe haven status” for centuries – have been met by intense Cartel selling; as always, led by naked shorting on the New York COMEX market. A “market,” I might add, that not only has essentially become all paper, no physical; but doesn’t even purport to have any actual gold.
Heck, in just the last 2½ months alone, the amount of the already unfathomably high paper/physical ratio has nearly quadrupled, to a record high 298:1 – with the Cartel having particularly dug in its heels when gold and silver finally breached their 200 day moving averages to the upside in late October, to make sure such a significant technical achievement didn’t lead to a major rally.
Of course, the “end all, be all” of geopolitical Precious Metal suppression was 9/11 itself. As you can see below, gold started that fateful day at $271/oz; and spiked 6.6%, to $289/oz, when the attacks occurred. However, at exactly the 12:00 PM EST “cap of last resort,” the time-honored “Cartel Herald” algorithm showed up to smash it down. By day’s end, it was back to $278/oz; and by the following day’s end, $276/oz. And the same for silver, which spiked from $4.15/oz to $4.37/oz, or 5.3%, when the attacks occurred, only to have those gains totally erased by day’s end. The fact that both metals went on an historic run in the coming years is, of course, ignored by anti-PM propagandists – in favor of focusing on gold and silvers’ (Cartel-orchestrated) inability to immediately provide safe haven protection.
In today’s “market,” the Cartel is far more technologically advanced – with far more powerful manipulative “tools.” As noted above, that hasn’t helped it in its quest to mask collapsing gold and silver inventories – both here and abroad. Moreover, it has inadvertently spawned record physical demand; as in China, which year-to-date, just exceeded 2013’s annual record for Shanghai Exchange physical gold withdrawals. Which, I might add, accounts for nearly all of global mine production. Which, as I have discussed ad nauseum, will not only be lower in 2015; but, care of the Cartel’s relentless destruction of the mining industry since the turn of the century, significantly lower in the coming years.
That said, said manipulative tools are indeed powerful; even if they are simply accelerating the Cartel’s – or as I call it, the “New York Gold Pool’s” – inevitable demise. Which is why it shouldn’t surprise anyone that on a day when “Europe’s 9/11” occurred, the manipulators were not only out in full force suppressing Precious Metals, but goosing stock markets; including France’s, which not only was unchanged yesterday, but is soaring this morning! Let alone, the farce that was yesterday’s WTI oil “trading.” When, after nearly taking out $40/bbl to the downside, it suddenly rocketed to $42.20/bbl within an hour’s time – via the same, prototypical “dead ringer” algorithm that has been used to “rescue” the “Dow Jones Propaganda Average” for years on end; including yesterday, when it dared try to go negative – following its equally blatant usage to “kick the trading day off” in China.
And this, whilst all other commodities were in freefall mode; particularly base metals like “Dr. Copper” and zinc (say goodnight, Glencore) – which plunged to new six-year lows. And oh yeah, the high-yield credit markets, which continued their plunge into the abyss. I mean, think about it; the VIX, or “volatility index,” actually declined yesterday – and measurably so; when not only did France’s 9/11 occur; but Japanese GDP was massively below expectations, plunging Japan into its fifth recession in seven years; the Empire State Manufacturing was massively below expectations, remaining deep in negative territory; and of course, the CRB Commodity Index remained perched right around its 40-year lows – “oil PPT” surge notwithstanding.
As for Precious Metals, which were capped from the get go Sunday night, I don’t need to show you their prototypical daily pattern for you to get the point. Instead, I’ll simply show you the charts of (paper) silver “trading” both yesterday and Friday – i.e., the previous trading day. After which, you will be 100% clear as to what occurred, given how identical the Cartel’s footprints were. And wouldn’t you know it, the “2:15 AM” EST open of the London paper market, and 8:20 AM EST open of the New York paper market, are where all the declines occurred.
Heck, here’s silver’s trading every day since it dared to decisively breach its 200-day moving average to the upside on October 28th. I.e., just as the Fed announced, at 2:00 PM EST, that it would again keep interest rates at zero. To that end, note how silver has been attacked every day since at the COMEX open! And on Thursday’s case (the 12th), when silver dared to surge thereafter, it was immediately “put back in its box” at the 10:00 AM EST close of the global physical markets. I.e., “key attack time #1.” Even I have not seen such a long streak of COMEX-opening raids, and I’ve been doing this a long time. Which should tell you just how desperate the Cartel (and PPT) have become; amidst not only the “worst global economy of our lifetimes”; and worst geopolitical tensions since World War II; but the highest amount of (parabolically rising) debt, and monetary inflation, in history!
Which brings me to the most comical aspect of the entire farce; i.e, the latest “propaganda du jour,” of how a “strengthening dollar” is going to cause Precious Metal prices to plunge. Look, this is not a new topic – as I have discussed it for years; including in December 2013, when I predicted the dollar would surge against other fiat currencies as the global economy crashed, just as it did in 2008.
“Multiple currencies will experience dramatic declines relative to the dollar. The ‘final currency war’ is clearly underway; in our view, catalyzed by the Fed’s 2012 commencement of QE3; the ECB’s 2012 announcement that if needed, it would engage in open-ended sovereign debt monetization; and the Bank of Japan’s 2013 announcement that it intends to double the money supply in an attempt to dramatically weaken the Yen. Consequently, these ‘big three’ Central banks have exported copious amounts of inflation worldwide – as highlighted in ‘the most important article I’ve ever written.” ‘Tapering’ notwithstanding, the global trend of increased money printing must continue – and eventually, accelerate – as history’s largest Ponzi scheme plays itself out. Consequently, the ‘race to debase’ will intensify, yielding increased worldwide inflation. In time, this ‘cancer’ will rise to the top of the totem pole, destroying the world’s ‘reserve currency’ itself.
Which has indeed occurred, in spades; as while the Fed has “only” maintained zero interest rates in the ensuing two years (whilst, likely, covertly supporting Treasuries), the Bank of Japan’s “demographic hell” has cause Abenomics to be, for all intents and purposes, permanently expanded. Meanwhile, in Europe, the complete collapse of the ill-fated political and trade union has caused the ECB to, equally overtly so, go berserk with its own version of QE – and “NIRP,” or negative interest rates, to boot. Consequently, the Euro has collapsed to a 12-year low, enroute to its inevitable dissolution. Perhaps, far sooner than most can imagine. And now that “France’s 9/11” has occurred, of course the Euro will fall further; as the gargantuan geopolitical forces already undermining it – such as collapsing PIIGS nations, and an exploding Middle Eastern migrancy crisis – are likely to go parabolic in the coming months. Which, as any sentient being realizes, is not only wildly bullish for Precious Metals demand, but not in the least bit a reflection of U.S. economic or political “strength.” Thus, the concept that a collapsing Yen and Euro – i.e., the principal components of the dollar index – would somehow be negative for Precious Metals is absurd at the least, and moronic at best.
Which is why I bring up “if a nuclear bomb destroyed Europe.” I.e., an article I penned in September 2014, putting Europe’s dire political issues of that time into perspective.
“Europe is not only on the verge of economic collapse, but revolution following nearly two million Catalonian secessionists rallying Friday in Barcelona – just days before Scotland’s historic independence referendum. As for the rest of Europe’s expanding instability, Air France and Lufthansa pilots are commencing massive nation-crippling strikes this morning in yet another death blow to Europe’s collapsing socialism miasma; whilst Germany’s Anti-Euro political party scored big gains in this weekend’s elections, and Spanish and Italian sovereign debt surged to fresh all-time highs.”
And that was 14 months ago, when Europe was still amidst “high times” compared to today’s political, economic, and social implosion. Since then, the Euro has of course plunged – by 21%; as not only have the aforementioned factors dramatically worsened, but the ECB has gone hog wild in destroying the currency – first, by expanding negative rates; and then, by initiating – and later on, expanding – a QE program that, as we speak, is on the verge of “going Japanese.” Moreover, now that the geopolitical equivalent of a “nuclear bomb destroying Europe” has in fact occurred – i.e, Friday’s horrific Parisian terrorist attacks – the lunacy of assuming a “strengthening dollar” will be bad for Precious Metal demand has been taken to unprecedented levels. And this, after gold and silver have already been decimated for four years, amidst the most PM-bullish events in generations. Which have, how about that, caused physical demand to hit record levels. Not to mention, put the mining industry on the brink of ruin, essentially guaranteeing falling production for years to come.
To that end, I’ll simply end today’s article just as I did the initial article 14 months ago; and let you decide if at $1,078/oz and $14.25/oz, respectively, gold and silver are worth buying – or fearing.
“Putting the ‘dollar strengthening’ fallacy in its full glory, let’s just say a nuclear bomb destroyed Europe. If such a tragedy were to occur, god forbid, no doubt the ‘dollar index’ would not only ‘strengthen,’ but surpass the 1984 and 2001 highs – and then some. I know it’s an extreme example; but in terms of real impact on gold and silver demand, it’s not a heck of a lot different than massive ECB NIRP and QE announcements, whether the Fed is ‘tapering’ or not. In such a scenario, the dollar would certainly strengthen against the Euro, but plunge against any and all items of real value – particularly real money; i.e., gold and silver. And thus, we simply want you to see the ‘forest through the trees’ as the current round of market manipulation, propaganda and general foolishness comes and goes; which, we hope will catalyze you to act now to protect yourself before it’s too late.”