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Today I received three phone calls from friends who have each purchased over $100,000 worth of gold from Miles Franklin.  All three have been in the market for years and are well versed on why it is important to own gold and they all know only too well my bullish feelings on where gold is headed.  All three started the conversation with a reference to a CNBC story that gold was headed to $700 an ounce – and asked me what I had to say about that.  Two of them asked me directly, should I sell my gold?

We must be damn close to a bottom, because even those who should know better are starting to panic.  All of my hand-holding and bullish information is falling on deaf ears.  I recall some time back Jim Sinclair stating that the banks that are “short” gold now will be “long” when the market takes off.  Their strategy must be to scare the weak hands out of their positions, which are happening, and also to create a wall of worry and doubt to keep them from buying at these low prices so they can pick it up on the cheap.  Believe me, that is exactly what is happening.

If you want my advice, laugh at these ridiculous “analysts” who are giving you terrible advice with their “the sky is falling” gold and silver predictions.  The bull market IS ALIVE AND WELL.  This is the summer, and typically gold is weak over the summer.  I am looking for gold to move up, strongly, in September when the Fed will bring out QE3.  They have no other rational choice.

The Chinese are thrilled to see the price of gold pull back, and so too are the Indians and these low prices exert a vacuum that sucks up all of the gold from the West and deposits it in the EAST.

Don’t fall for this B.S. and that is what it is.  Nothing what so ever has changed to derail the bull market.  Gold at $1550 or $1475 doesn’t change a thing other than a short-lived opportunity to buy gold (and silver) for far less that it should cost you now.

Early Friday morning (2 a.m.) Bill Murphy (LeMetropole Café) issued the following bulletin:

Le Metropole Members,

Who knows what will happen between now and this morning, but so many in the gold/community are depressed, I thought it appropriate to send this out to shake up a few brow beatin’ tail feathers.

Without getting into too much into a POP in the gold price and the action this evening, it HAS regained the key level of $1560, by rising to $1564 at press time. As a reminder from MIDAS commentary tonight:

Black is White and White is Black, as always in the precious metals world. The more bullish an “event” is, the more The Gold Cartel goes into action. Some things never seem to change.

The HUI fell 3 to 152.45, while the HUI sank 9.03 to 414.54, off of a 407 and change low.

Back to the gold and silver markets. We will find out soon just how tight the gold and silver markets really are and whether my notions are right that The Gold Cartel can win battles like they did today, but that gold and silver will pop right back … perhaps not right away, but soon.

When The Gold Cartel was able to break markets down today, they received the aid of technical selling as the day wore on … long liquidation and perhaps some new spec shorting too. With the books on the fiscal second quarter closing tomorrow for the Gold Cartel; First Notice Day in silver behind us; and the European Summit concluded, we have the perfect scenario for gold, silver and the shares to turn around next week.

For there to be any hoopla in our camp; gold must get back above $1560; silver more like $27 now (but first it must get back above the key weekly price point of $26.50 that RR brought to our attention); and the HUI needs to reclaim 420.

This is good.

Bon Soir

Bill Murphy

At last glance (8:05 a.m.) gold is $1597.20, up a huge $45.20 from the close and silver is $27.72, up $1.40 since the close.  Both numbers are ABOVE the “hoopla” level mentioned by Murphy, above.

Jim Sinclair had little to say about gold’s action on Thursday.  There really isn’t much to say.  He summed it up beautifully as follows:

It will float again because I never give up when I am determined and knowledgeable. When you are right Never give up. Alf’s figures on gold will be attained and not in the distant future.

Now, onto a few comments on the Supreme Court’s decision to keep Obamacare intact.  I have received countless Emails bemoaning the outcome.  Lots and lots of angry and disillusioned Emails came my way and NOT ONE that expressed happiness in the decision!

This will turn out to be a polarizing event that will move a large number of voters, Democrats and undecided independents, to the Romney camp.  According to a recent Reuters Poll, 73% of Independents oppose Obamacare.  The only avenue left to derail Obamacre now is to make sure that the Senate majority swings to the Republicans and Mit Romney is our next President.  That’s how you repeal Obamacare.  Romney is already on the airwaves promising that the first thing he will do, if elected, is to repeal the bill. This event will help Romney more than Obama.

I have three friends who are doctors.  One is an OBGYN in Missouri, one owns a number of orthopedic clinics and the third is a retired plastic surgeon.  All of them are vehemently against Obamacare.  My friend in Missouri says he would do everything in his power to discourage his own children from becoming a doctor under the new system.  The financial incentive is gone.  Too much regulation and liability and too little pay will thin the ranks.  The orthopedist is really worried now, and wonders if he will be able to financially make a go of it.  The plastic surgeon is certain there will be a reduced level of care that will come with the legislation (their opinions – I’m just reporting what the doctors I know think of the legislation).  If you are wealthy, you can live with the law and pay for “outside the system” first rate and timely care.  If you are not, well, that’s a different story.

It feels as if America is rapidly moving toward a European-like socialist government-controlled system.  From medicine to higher taxes on business and the rich, (pending repeal of the Bush tax cuts) we are facing a re-distribution of wealth, from the top down to the masses.  Take from the producers and high earners and give it to those on the bottom.  Is this a good thing or a bad thing?  I suppose it depends on where you are on the economic bell-shaped-curve, toward the top or toward the bottom.  Helping those on the bottom is a noble thing to do, but should it be legislated and forced upon those with a higher net worth or should it be voluntary?  I guess the Liberals and Conservatives have different thoughts on this one.  Enough of this – I write a financial newsletter and I am getting off the track.  But boy will this be an interesting election.

I am going to reprint two (typical) Emails I got today to give you a flavor of what the majority of readers of this newsletter think about today’s events, followed by Bill Holter’s views on the subject…

No one can be surprised by this result.  On the bright side, it’s one major step close to the abyss.  Gold’s pull-back is definitely giving you a chance to protect/further protect yourself as all this will be paid for with funnier and funnier money… KM


Whenever the opportunity arises, just refer to Obamacare as “The Obama Health Tax”; calling it what it is. Hopefully the proletariat will awaken before November and replace the idiots in both congress and the White House with people that still believe in the Constitution as ‘the law of the land’; otherwise God help the USA… JM

And now, a very angry Bill Holter:

Bye, Bye Constitution, Liberty and the American Way of Life As We Knew It

O.K., we’ve vented and now how about a quick look at gold at 3 a.m. on Friday…  Note the 24-Hours chart, below.  Gold is now back up to the level it started out at 8 a.m. in New York on Thursday morning, having reclaimed all of its losses in the over night markets.  The Comex rigging did not hold up at all.  Is “paper” controlling the physical market or is the physical market controlling the paper market?  Well, for today it seems that the physical market has won the day.  In the end, it will win the battle.  It will propel gold to Jim Sinclair and Alf Fields’ numbers (North of $3,500).  The more the morons at the bullion banks desks suppress the price of gold the stronger the buying from China, Russia, India and the Middle East.  Gold is migrating from the Western countries to the East, and he who has the gold makes the rules (the Golden Rule).