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“…the level of physical off-take on Planet Earth is in ultra-high gear…and the longer that prices remain at these levels, the more physical metal disappears into the hands of the buy-the-dip investors.” -Ed Steer

Check this YouTube video out if you want to see a prime example of stupid commentary by the media on gold. This is really something! 

I stole the following data from Steve Sjuggerud at Daily Wealth. Since 2000, gold has not had a losing year. It’s up from $288 on December 31, 1999 to $1,650 today, for a gain of nearly 500%. Meanwhile, stocks around the world have done nothing.

Take a look:

Stocks vs. Gold

Since Then: 12/31/99 to 9/23/11

Greece (Athex Composite)

Down 80.7%

Italy (MIB)

Down 57.0%

Japan (Nikkei 225)

Down 39.5%

France (CAC Index)

Down 36.8%

England (FTSE 100)

Down 30.2%

United States (S&P 500)

Down 22.8%


Up 472.9%

From our friend, Dean D:
Subject: 1934 cartoon… Chilling
The idiots in the USA (and other countries) are so excited today – finally after 77 years they are ready to fulfill their goals – they finally have the White House to help them. 
“This is not something new”, Woodrow Wilson started the take over 100 years ago.
Truly let this old cartoon sink in – then send to EVERY ONE on your list.
Sound familiar? Liberal, Socialist, Communist, Karl Marx,
Maynard Keynes thinking and programming for sure ……
This cartoon was in the Chicago Tribune in 1934.
 Look carefully at the plan of action in the lower left corner.

Remember this very accurate old adage:
“Those who forget history are doomed to repeat it.”

Guru Jim Rogers says:
Gold has been up 10 years in a row which is very unusual in any asset class.
So if it is up this year or 11 years in a row, gold is overdue for a correction and it could have a nice substantial correction, given that it has been so strong.
I have no idea what is going to happen this year. I doubt if it will go to $2,000 an ounce in 2011. It is more likely to have a correction which will last for several weeks, several months.
When fear permeates a market, everybody sells, especially the last ones in – frequently have to jump out. They have raised margin requirements for both silver and gold. So that makes it more and more difficult for people to hold on.
I barely pay attention to the price, but I know a lot of people do and that is why you have these sudden spikes up and down.
Take a close look at the three-day gold chart, below.

On the left hand side of the chart, during Hong Kong trading hours, gold has risen sharply each day, from $20 to $40 per day. Then as trading moves into London, note how the price comes back down and continues down after the market moves to the NYMEX in New York. Andy Hoffman rants about this pattern all the time and so does Bill Murphy over at The LeMetropole Cafe.

Heavy physical buying takes place in Asia and then The Gold Cartel takes over shorting gold (leveraged paper contracts) in London and New York. The “battle” is between real gold (physical gold) and paper gold. Paper gold contracts are used to pull DOWN the price but the lower the price goes the greater the buying from India and China, which lifts the price, back UP. The advantage paper gold has over physical gold (short-term) is LEVERAGE. It has been estimated that the leverage can reach 100 to 1! That is why when margins are INCREASED only the big banks with very deep pockets can hang on. Plus, the market is controlled by three or four large Bullion Banks who are almost always heavily SHORT gold (and especially silver) so they are positioned to PROFIT when the prices FALL. As you have often read in these pages, the “fall” is an ENGINEERED event, not related to meaningful market conditions. In the end, physical gold will win out. The unintended consequence of pulling down the price with paper contracts is that it creates even more DEMAND for the physical metal in Asia, Russia and the Middle East. You have JPMorgan on one side (paper) and India and China on the other (the real McCoy), and I, for one, put my money on the Asians which is why I remain even more bullish every time (three times in the last 2 ½ years) The Gold Cartel decides to ambush gold (and silver).

If you like to TRADE gold and silver, then my advice is of little use to you. If you have to rely on “timing” and “leverage” to make a profit, you are playing a dangerous game that few can win. I prefer to buy and hold in the form of physical metals. It has served me well for over 11 years. All I have to do is hold onto what I have during the expected pullbacks and, if possible, to buy during the dips. Patience wins out.