The war for $1,300/oz – which gold, aside from a Cartel-capped blip 16 months ago – hasn’t traded at for nearly two years – is ON! The Cartel, fresh from having lost its 2½ month battle to defend its previous “line in the sand” at $1,250/oz – having taken their naked “commercial” short position to nearly a record high in the process – is sucking wind big time. Let alone in silver; in which their short position is literally at an all-time high, as they try to figure out whether their next “battle of the bulge” should be fought at $17.50 or $18.00. This, with the entire world collapsing around them – from economic activity; to commodity prices; Central bank credibility; political and social stability; and the ability to control the historical “monetary barometers,” gold and silver.
In gold’s case, the “commercial” short was larger in 2010-11, but prices were closing in on record levels at the time – as opposed to today, when gold is 32% lower. In dollar terms, that is – as in most currencies, gold is near, at, or significantly above previous all-time highs – such as in Australia, where after today’s “surprise” rate cut, Aussie gold has surged to within just 4% of its all-time high. And aside from the gargantuan size of the 240,000 contract short position said “commercials” have taken on since prices bottomed five months ago (equal to roughly a quarter of annual worldwide production), it is the most “paper gold” shorted in such a short amount of time in gold market history!
As for silver, said “commercials” – i.e., the U.S. government-led Cartel – has NEVER been shorter. And this, to protect prices more than 60% below 2011’s record highs! Which ironically, were achieved five years ago this week, when a desperate Cartel tried to pretend the (likely fictitious) killing of Osama bin Laden somehow catalyzed a 12% overnight silver plunge. In other words, the Cartel is so terrified of the imminent silver shortages that will inevitably destroy them, they are “going for broke” in their current naked shorting gambit. Which, given that Precious Metals, on a worldwide basis, are now back in a BULL MARKET, will likely end as badly as the “London Gold Pool” in 1968, and all other attempts to suppress real money throughout history. But to the myriad “technical analysts,” cycle watchers, and other fiction peddlers out there, keep up your battle with reality. I mean, it’s just amazing how many people possess “proprietary” analytical expertise in the tiny PM sector, isn’t it?
Anyhow, yesterday was a manipulation for the ages – with PMs attacked at every “key attack time” from the second the London “pre-market” opened at “2:15 AM.” This, with economic data, the dollar, commodity prices, and Treasury bonds simultaneously plunging! In fact, all such trends continued into today – except for Treasury bonds, where the 10-year yield has plunged below 1.8%, as investors start to realize QE4 is looking more and more likely. As for the dollar, as you can see below, it (trading at 92.50 as I write) is on the verge of plunging through major support, dating back 16 months, despite the two key components of the “dollar index” – the Euro and Yen – being overtly hyper-inflated by their respective issuers. In other words, the investment world is starting to speculate that the Fed will shortly take center stage in the “final currency war,” no matter how hard the ECB and BOJ attempt to upstage it!
I could go on countless tangents from here – like Jack Lew sending a desperate letter to Congress, begging it, Hank Paulson style, to bail Puerto Rico out. Or the U.S. energy junk bond default rate exploding to record highs, just as oil prices plunge anew; to Warren Buffett’s chief lackey, Charlie Munger, espousing it was “massively stupid for our government to rely so heavily on printing money”; to my incredulity at Wall Street still expecting 200,000 jobs this Friday, despite collapsing across-the-board employment data.
But instead, I’ll focus on yet another example of the powers that be turning on each other, in their desperate attempts to save themselves, no matter the cost. Which is, the incredible study published yesterday by the ECB, concluding “information of many macroeconomic announcements is known by some market participants in advance.” In other words, proof of insider trading, on a grand scale.
That said, what’s so incredible about the study is not its blatantly obvious conclusion, but that it focused on not European, but U.S. economic data releases. In other words, it was out to discredit America’s financial markets – in citing widespread insider trading ahead of a broad swath of publicly and privately generated financial releases, dating all the back to 2008, including the Conference Board’s consumer confidence index; the National Association of Realtors’ existing and pending home sales reports; the Bureau of Economic Analysis’ preliminary GDP report; various Federal Reserve regional industrial production surveys; and the Institute of Supply Management’s manufacturing and non- manufacturing indexes, among others. Interestingly, the one report they didn’t mention is the Bureau of Labor Statistics’ monthly non-farm employment report, even though the BLS was caught leaking it’s content in 2011.
Anyhow, my point here is that – like last month’s incredible Deutsche Bank admission that it has led a cadre of banks suppressing gold and silver prices for the past 15 years – said “powers that be,” which in reality are not one, but many global political, corporate, and monetary leadership groups, are dramatically fracturing. In other words, the worldwide economic Titanic is sinking, and the rats are racing for higher ground, in the ultimate “every man for himself” scenario.
Which inevitably, will lead to everyone, including the world’s most “anti-gold” fiat currency printing Central banks, desperately attempting to acquire as much physical Precious Metals as they can get their hands on, as the END GAME of fiat currency collapse comes into plain sight. Which frankly, were it to happen this year, wouldn’t surprise me one bit.
Which is why, the time to protect your hard-earned life’s savings – from not only hyperinflation, but the “system” in general, is NOW! And if such protection involves the purchase or storage of Precious Metals, we humbly ask you to visit Miles Franklin at milesfranklin.com, or call us at 800-822-8080, and give us a chance to earn your business.