It’s Friday morning, and I’m at the airport – enroute to the International Living Conference in Las Vegas. This year’s unprecedented Cartel raids have caused me to work harder than at any time in my 12+ years following precious metals, so it’s always nice to spend time with fellow CIGA’s, like Miles Franklin’s President Andy Schectman and Michael Spector.
Watching the world’s equity, currency and commodity markets plunge, whilst interest rates collapse and economic data – from East to West – implodes, it’s hard to believe TPTB have succeeded in strong-arming precious metal prices to such unfathomable, uneconomic levels. Care of such “Cartel Suicide,” the mining industry will unquestionably retrench like the oil industry did in the last 1990s – when prices briefly fell below the cost of production; after which, E&P capex declined sharply for years to come. Fortunately, “Economic Mother Nature” always wins – and in this case, it’s not just the oil industry at stake, but the entire global financial system.
As we wrote in yesterday’s “Here comes the Physical Buying,” PM demand is indeed surging – as exemplified by the U.S. Mint’s October silver Eagle sales, which at 1.65 million ounces have nearly exceeded July and August’s full-month totals of 1.97 million and 2.00 million, respectively, in the first two days of the month! Even September’s very strong level of 4.14 million ounces has nearly been halved putting October on pace to not only exceed, but potentially shatter the Mint’s monthly record. And of course, for full-year 2014 sales to exceed 2013’s record totals.
Since the “point of no return” was reached three years ago, TPTB have been operating 24/7 to make sure such reality isn’t reflected in price, by naked shorting paper to the point that global silver inventories have been reduced to fumes. Yesterday, yet again, the morning’s typical “2:15 AM” raid was followed by attacks at all key attack times; and for the second straight day, with “Cartel Rule #1” in danger of being violated – i.e., “thou shalt not allow PM’s to surge, whilst the Dow plunges,” gold was capped at EXACTLY the 12:00 PM EST “cap of last resort” – whilst the PPT rescued the “Dow Jones Propaganda Average” with a patented “Hail Mary” rally. Even the “new Hail Mary trade” of goosing interest rates into the close was in play, all ahead of today’s patently obvious strategy of “painting the tape” with the final NFP employment report before November’s mid-term elections.
Regarding the latter, never forget that no matter what bogus “headline print” the BLS publishes, the internals will always slam them and even the MSM knows it. And not only that, but with the entire world economy going the opposite direction – as exemplified by this morning’s horrific European service PMI numbers – it’s hard to believe anyone could believe the U.S. economy, record low interest rates and all can be genuinely “recovering”…
…unless, of course, you’re referring to the “1%” receiving free Fed money – who have never been richer, whilst the 99% continue to grow poorer…
Zero Hedge
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However, the “most insidious result” of six years of relentless exponentially expanding money printing, market manipulation and propaganda is that even the slightest decline in equity markets, even from record levels, causes Wall Street and the MSM to scream “fire” – as exemplified by the unbelievable plunge in the “fear and greed index” below. In other words, TPTB have so destroyed the price discovery mechanism, investors have been trained to panic at the first sign of trouble – and subsequently, beg Central banks for more economy-destroying QE. Of course, part of said fear is the “uncomfortable feeling” that the “next 2008” is coming – which, of course, it most certainly is!
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And thus, after a whopping 1.5% equity loss on Wednesday, the propaganda “denouement” was reached – when none other than the king investor-killers themselves, CNBC pushed the following heading into the “top story” slot of Yahoo! Finance and other MSM lackeys.
Yes, Warren Buffet, whose largest investments were bailed out in 2008, and who claims to want to pay more taxes whilst supporting “tax inversions” for his investments, bought stocks on Wednesday – near all-time high valuations, amidst the worst economic environment of our lifetimes. I, for one feel comforted. How about you?
Sorry so disjointed, but I have to board my plane shortly. I see that indeed the NFP indeed “beat expectations” of a 215,000 job increase by printing at 248,000. And better yet, the “unemployment rate” plunged from 6.1% to a new “Obama Administration low” of 5.9%. But guess what – CIGAs? The Labor Participation Rate plunged to a new 36-year low of 62.7% as a whopping 315,000 people departed the labor force – and wages were unchanged. In other words, the trend of fabricated jobs – the majority of which are of the part-time, minimum wage paying, no benefits receiving variety, principally for senior citizens that can’t afford retirement – continues. And thus, the Fed will have to further fret about the “significant underutilization of labor resources” destined to catalyze their inevitable “Yellen reversal” to increased QE. It’s only a matter of time.
And thus, as the Cartel pushes PM prices further into the netherworld of mining unprofitability and physical buying explodes, you are being afforded a rare opportunity to insure your portfolio at dirt cheap prices. Eventually, the sum total of QE “insidiousness” will do TPTB in; likely, sooner rather than later.
“This year’s unprecedented Cartel raids have caused me to work harder than at any time in my 12+ years following precious metals”
Thank you!
The next 2008 certainly appears on the cards.
This is what happened then.
The S&P went down about 45%
Gold went down…about 25%
Silver went down…about 60%.
Should that reoccur the index goes to 804 or worse…gold $894 …silver $6.80
However Gold and Silver have already been in strong downtrends since May 2011.
Could the PM’s get to those lows?
I think Gold will likely hold its own ( all bets are off on a close below $1150)
Silver in a mostly de-industrialised world will continue its selldown to the Oct 2008 low of $8.42 which is a 100% fibonacci re-tracement from the peak.
Do not think that this cannot happen.
Think about margin calls in an over leveraged world, people needing cash and losing jobs, losing their homes.
…
I’m in Australia so I can’t buy from MF. The MF blog entries are among the best I have seen. Thank you for your efforts. With the manipulated steep falls in PM ‘prices’ I wonder whether the Chinese/Russians are waiting for the moment when the PM shorts are ‘all in’ then flooding the market with literally trillions of dollars of PM longs that overnight will completely overwhelm and destroy the western cartel’s shorts, bankrupting them and destroying the west economically. No wonder Putin wears a wide smile these days.
Perth Mint is experiencing increased sales and demand.
Manipulation of PM’s has fairly well been debunked by Wiener at monetary metals
I doubt Russia and China will try to economically crush USA unless they want a nuclear war.
Surfer,
Amazingly, you actually outdid your ignorance with this comment. And thus, it will be the last time I respond to you.
“Wiener” debunked manipulation? Really?
YES HE HAS.
Peace of mind is worth much more than this bullshit. As long as you can stay clear of the legal system, the Allopthic(psychopathic) medical system. Trade your silver dollars with your friends for services and eat real food…..you will be ok. The problem is the American sell out people …. all a bunch of ass kissing sellouts themselves for FIAT dollars… they all want it and will kill children for it…. immunizations….abortions(I’m not a catholic) out of convenience. If we all gathered together and told the communist school systems and city tax men and state government looters and state police idiots that we won’t cooperate until sound money systems were incorporated….they would have to comply. Until then we will get leaders like Gerald Ford and Alan Greenspan. Psychopathic liers. My grandparents and parents left us with this mess of LOOTERS scaming us at every turn to turn this country into a credit card slave state.WELCOME to the fincancial MATRIX. thank God you and Bill exist……and the Ron Pauls of this world… Dr. Paul Craig Roberts and Mr. Sprott…….otherwise what would we have?
mean while you’ve been hammering on people to buy PMs all the while the price has been falling. great advise there. I’ve had my finger on the buy button several times in the last few months but held off. guess what I’m better off than those who bought.
Hi, just on advisors and touts..
About 23 years ago when i started to trade futures markets after years with stocks,I tried to learn as much as I could.
One of the things I learnt early on from a couple of studies and seminars was that most advisors got it wrong most of the time.
Further most traders lose, in fact 89% lose all their money in the first year, 7% break even and 4% win all the 89%.
I take a small part of the 89%.
Whether the PM markets are rigged/manipulated or not is completely irrelevant.
Silver since May2011 and followed by gold in Sept 2011 both have been in steady declines.
ANYBODY looking at a chart can see this.
Trouble is, people try to pick bottoms. Doesn’t work unless very lucky.
Same as taking advice.
All brilliant stuff, except the single most ridiculous statement imaginable – that “whether the PM markets are rigged/manipulated or not is completely irrelevant.”
Frankly, I wont’ even dignify such an ignorant statement with a response.
It’s called dollar cost average my friend.
Buy into weakness, sell into strength. I learned very early on that this is a long term game, and after I learned that, I stopped buying big. Just small regular purchases for me.
QE took Bernie Madhofs Ponzie scheme to the next level. Investors using Government issued Money printed from whole cloth served to create an artificial inflation sink by artificially raising
commodities and stock values. Problem is , the ground level consumer never was brought
along, only mined for what little equity he had left. Now overrun with credit card and student
loan debt , the mine has gone dry. Except for the final blow, Unfunded Pension Liabilities,
now coming due to an aging boomer Generation. Madhofs collapse came when investors
attempted to redeem their Fantasy Gains and found the only value was to the next fool in,
who had already exited the ( Casino ) table. Once QE withdraws , so goes the fantasy support
and fictitious gains . The early exit strategists have already escaped with the wealth. The rest
Is free fall panic. The last hours of the Titanic are parallel, denial , then no lifeboat for escape.