‘The Bull Market in Bonds is Over’ (Bill Gross Tweets that the 30-year run is done.)
Note the quote by Bill Gross, above. If the bond market’s Bull Run is over, then interest rates by definition must rise. Are rising interest rates a positive for the housing market? Are they good for the stock market? Do they help the economy? What will the Fed do when their beloved QE programs have failed and interest rates are rising in spite of the Fed’s bond buying? Can they stop purchasing bonds with rates RISING? Won’t the interest rates rise much faster when the Fed stops buying the bonds? Lots of questions; and the answer to each of them is as plain as the nose on your face. And the answers are not good for anything but gold and silver prices. Don’t be tricked by the day-to-day market “noise.” That’s just the echo of the hedge funds and TBTP Wall Street banks moving mountains of money around into and out of individual stocks and sectors all in the name of a short-term profit. No, forget about that – and pay attention to the wisdom of Bill Gross. He is telling you where all of this is headed. And his story, coincidentally, is the same one you read here at Miles Franklin. Schectman, Hoffman and Holter have all painted the same picture, dubbing the bond market the “biggest bubble of them all.”
What’s up with gold?
The hedge funds with the enormous amount of “hot money” are going short (paper on Comex) gold all the way down to zero. The bullion banks are issuing reports that the bull market is over. Then they quietly unload as many of their shorts to the funds as they can and go long. The physical market in London is on fire. Over 40 tonnes of gold moved out of London to Asia on Friday, when gold dropped to $1,445. The Chinese are buying all the dips and the Indians, who would traditionally wait for the price to fall before buying, are now forced to compete with China for their gold. They have to come into the market sooner or risk losing the gold to the Chinese. The gold market is tight. Deliveries are stretching out to two or three weeks or more. Premiums are rising to ridiculous levels. The fundamentals for a moon-shot in gold are building by the day.
Ted Butler believes that the fundamentals have never looked better for gold and silver. That’s the way it is when most people are discouraged and dropping out of the game. If you don’t add to your positions now, you will look back in a year or two and ask yourself why? How could you have missed it? The evidence is crystal clear. This is an engineered take down, and it brought the hedge funds into play and they are on the WRONG side of this. The bullion banks will be big winners. They (the Commercials) always are. The Chinese and Indians will be big winners. The Miles Franklin clients who listen to us will be big winners. And that, dear readers, is exactly how I feel!