We have watched for months while the COMEX prices of gold and silver were capped. We watched a circus of paper selling 2 weeks ago crash the “prices” and we watch again today. Gold is “down” $25 and silver 75 cents. This in the face of massive physical demand which has at least doubled globally and up 3 or 4 fold depending upon the area of the world you are looking at. Premiums for “in hand” delivered metal have exploded and in the case of silver you still are paying close to $30 an ounce to get it. This represents a roughly 30% premium currently. This “discrepancy” between the price that they “say it is” versus what you need to pay to actually get physical in your hand metal may even increase (it apparently will). As the discrepancy remains and were it to widen, inventories of physical metals will be drawn down further, faster and at some point no longer exist. I wrote about this phenomenon 2 weeks ago during the paper smash. I said that the COMEX could default within a week or several weeks. Were paper “buyers” (even less than10% of them) to stand for delivery, the inventories would be wiped clean.
There is now all of a sudden a big backlash pointed at “us.” By “us” I mean Jim Sinclair, Eric Sprott and his partner John Embry, James Turk and others who have been and are bullish gold and silver. The net is swirling with “these guys are wrong,” “they are charlatans talking their book” and “the sky isn’t falling, they’re full of crap.” First off, the thought process of this group has been nearly 100% correct for 13 years. They have been correct even in the face of forecasting exactly the opposite of what governments, treasuries and central banks would like to see. In fact, they have been correct in the face of outright and blatant in your face manipulations and price fixings by these very governments. They have been right… and for the right reasons.
Did the sky fall after the 2008 meltdown? Think about it, did it or did it not? Life went on yes… but… governments have effectively bankrupted themselves in an effort to create an “all is well” (think Kevin Bacon at the end of Animal House) world. So though the system has not collapsed as it would have in a freely traded environment, the situation has become more levered, more unstable and riskier than it was then or ever has been in history. If what any of these people said, wrote or did got just 1 person to purchase physical metal and this 1 person somehow holds it through what is mathematically coming… then they have done the world a service. Years ago us “gold bugs” were laughed at. Now there is growing resentment because the price of metals has not “exploded yet.” In fact, the paper “price” has gone down as “tons” of un-backed futures have rained down upon the market. Can any of these people stop the selling off futures contracts? No they cannot… but they can warn you that what has been happening (for 15+ years) is not based on a free market, rather it is based on the wants and needs of those trying to extend a petro dollar system that is on life support.
Has the “game” gone on far longer than we thought? Of course it has. Just go back and look at what they/we/I have written. Does that make us wrong because gold isn’t $50,000 per ounce or Silver $2,000 per ounce right now? Have almost everything that we have said been based on logic and truly simple 2 + 2 = 4 math? Were we not the ones who were laughed at in the late 1990’s when we said the internet market was a bubble? And again in 2006 about housing and real estate? Who was it running around in 2007 and 2008 saying that the financial system as a whole was at risk because of the real estate/debt/banking systems? And after the fact what did we hear from the mainstream? In case you don’t remember I’ll remind you. “NO ONE COULD HAVE SEEN THIS COMING.” Yeah right, no one indeed!
So, here we are now in present day and us “nuts” are wrong again (as we have been for the last 15 years). We are telling you that all markets are rigged, Washington and Wall Street sleep in the same bed, the media is complicit and you have lost and are losing your rights and liberties more and more each time the Sun rises. We are telling you (as we have all along), one chance that you have to survive what is coming is to have wealth that knows no borders, is recognized globally and cannot default. It is wise to own this in as many forms and fashions as possible with as few intermediaries between you and your wealth as possible. Don’t trade it; don’t margin… just OWN IT!
All of the above said, when the day arrives it will not matter “who said what,” only whether or not you remain solvent.