It’s Tuesday morning, and I’m sure everyone wants to hear about yesterday’s blitzkrieg, borderline “named storm” Cartel raid. Let’s call it the “post NFP lunacy” attack; although frankly, given the dozen or so “massively PM-bullish, everything-else-bearish” headlines” of the weekend – from plunging Chinese trade data; to Greek unrest; and Donald Trump essentially hinting of his intention to default on Treasuries, I could have named it plenty of other equally appropriate names. The fact is, that never before have Precious Metals been so undervalued, scarce, or logical – and conversely, never before have “the powers that be” been so thoroughly trapped by their failed policies. Consequently, the methods they utilize to “kick the can” – despite having mere inches left of ground; are more draconian – and blatant than ever – with far direr ramifications. Particularly in the physical arena, where each illogical, illegal paper raid lower causes the already suffocating supply/demand noose to tighten further around their necks.
Yes, many subscription-based newsletter writers are desperate to claim their “proprietary” COT analysis predicted it; when the fact is, the Cartel’s record naked shorts had failed to stop gold and silver from rising from $1,069/oz and $14.14/oz five months ago, to $1,279/oz and $17.43/oz as of last Tuesday’s COT data, on May 3rd. Let alone, to the highs of $1,303/oz and $17.95/oz, respectively, on May 2nd. I mean, talk about the “broken clock being right twice a day” syndrome; as such “COT analysis” was essentially predicting that the Cartel would successfully attack at some point – as if they haven’t attacked paper prices every day for the past 15 years. I mean, the FACT is, that they are miserably failing to hold prices down, amidst their biggest, most blatant naked short positions of all time.
Putting it into perspective, for those so terrified by the Cartel’s “omniscience” – here’s all the “commercials” accomplished in naked shorting 291,990 and 60,773 gold and silver contracts, respectively, from December 1st, 2015 through May 3rd, 2016. That’s roughly $34 billion and $5 billion of gold and silver shorts on the COMEX exchange alone – in both cases, representing roughly one-third of worldwide annual physical production. And what did it get them? Well, gold and silver prices rose by 20%-25% – and who knows how much more shorting was required to prevent prices from rising further late last week, particularly after Friday’s Fed-killing NFP jobs report?
Well, after yesterday’s “named storm” attack, gold and silver are barely down from where they were at the time of last Tuesday’s COT data cutoff – at $1,263/oz and $17.07/oz, respectively, versus $1,279/oz and $17.43/oz. So frankly, it’s hard to be “scared half to death” by such a modest “correction,” even if the newsletter fear-mongers, desperate for you to churn your paper positions, want you to believe so. Not to mention, as the principal reason one should own gold and silver is not to “profit” from paper trades, but protect and insure oneself with real, physical metal. Let alone, at a time of comprehensive global monetary risk unparalleled in history!
Moreover, for those so worried that COMEX “speculators” will be forced to sell, what part of holding massive profits am I missing? As opposed to the “commercials” – “deep pocketed” or otherwise – sitting on massive losses? I mean, at some point, they’re going to have to cover their ALL-TIME HIGH short positions, right? Or will they continue to take the above charts even more negative? Which of course, will not only make their suppressions that much more obvious to the entire world, but heighten the risk of a physical default, given just how many long contracts they are shorting into! In other words, I’ll bet on “Economic Mother Nature,” rather than the increasingly unsustainable fraud – which, with each passing day, is losing its manipulative bite. Let alone, in the dozens of other currencies in which gold is trading at, near, or above its all-time highs!
And then there are the Harry Dents of the world, who have made a living fear-mongering of the mythical “deflation” that has decidedly NOT found a way into seven billion global denizens’ cost of living, despite the biggest “deflationary” crash since the Great Depression. Debt exploding, commodities and commerce crashing; and yet, the “stagflation explosion” I discussed last month is worse than ever, getting worse with each passing day! And this, as negative interest rates are stealing our remaining savings, whilst monetary QE; “Trumpian” fiscal stimulus; a socialist entitlement explosion; and other hyper-inflationary measures are decimating fiat currencies at an unprecedented rate.
Thus, if you really think physical gold and silver owners should be scared, with “four aces” in hand; as opposed to the “Commercials,” with their “jack high” bluff, go right ahead and “trade” with the paper fear-mongers. However, in doing so, you will be taking your “eyes off the prize” of protecting yourself from what’s inevitably coming, at the absolutely worst imaginable time.