In May, I will have spent 14 treacherous years fighting the gold and silver Cartel – financially, professionally, and mentally. The toll it has taken is incalculable, as I cannot remember when I last had peace of mind. Being right – and for the right reasons – but punished for it on a daily basis, is a difficult way to live. But hey, life is hard, and we all have our own demons to deal with.
Fortunately, my deep financial commitment, unwavering devotion to truth, and personal fear of failure have driven me to turn this lemon into lemonade – in making the quest to “beat” the Cartel, and help others do so as well – my raison d’etre, both personally and professionally. And at Miles Franklin, I have the perfect platform to accomplish this eminently reachable goal, of an inevitably successful end.
Days like yesterday are particularly difficult to deal with – as quite obviously, the “powers that be” were intent to do everything in their manipulative power to prevent Precious Metals prices from reflecting the explosive demand surge they experienced after the ECB’s insane, catastrophically botched money-printing announcement. To that end, the days leading up to Thursday’s announcement were among the most blatantly suppressed PM days I can remember. That is, until the statement was actually released Thursday morning at 7:45 AM EST, when gold owners were forced to endure a $15/oz waterfall decline, as the ECB essentially made the most hyperinflationary announcement imaginable – far more so than even Wall Street’s “analysts” expected. I kid you not, I was pounding the screen of my Stair Climber at the gym when I watched it, I was so angry.
When prices finally rallied, as they decidedly should have, they were capped at the 10:00 AM EST close of the global physical markets; and subsequently, the Cartel attempted to incite a day-end plunge. They failed to do so – and maniacal capping irrespective, gold closed at a new 52-week high. After which, it attempted to re-assert itself in the Globex market, which the Cartel NEVER allows to happen. And sure enough, just after gold pushed above $1,280/oz, the Cartel knocked it back down with a patented “Cartel Herald” algorithm – followed by another at the tried-and-true “2:15” AM EST open of the London paper “pre-market” session (for the 611th time in the past 703 trading days); and 3:30 AM EST for good measure. Meanwhile, the PPT was desperately pushing stocks back up, reversing Europe’s 2% plunge of the day before, despite the fact that the Euro was still – and still is – significantly higher than when Draghi announced his plan to devalue it.
As we hit 10 AM EST – again, when global physical markets close – gold was down just $2/oz on the day, whilst silver was up $0.10/oz. Clearly, demand couldn’t be stronger, making it extremely difficult for a Cartel that, despite its best efforts, has been getting annihilated lately, after having long since lost the battle with the world’s 180 non-dollar currencies. Thus, with the weekend looming – when investors do their most financial reading – they decided to go for broke; first, in “waterfall declining” gold from $1,269 to $1,259 in a matter of minutes; and then, with gold down roughly $11/oz on the day, and silver up $0.05/oz, they viciously attacked in the final 30 minutes of NYSE trading, taking gold down another $9/oz, and silver $0.15/oz. All this, with not another market, of any kind, making a material movement. All in all, gold held the $1,250/oz level like a champ, and silver ended just $0.09/oz lower, setting up its gold-validating “golden cross” (50 DMA crossing above the 200 DMA) in the next week or two. However, sentimental damage was certainly achieved – as yet again, the can was kicked a few more inches.
Why do I provide such detail, you ask? So that you understand there are people – like me – that understand EXACTLY what is going on, and why. I know it’s difficult to deal with, but it’s the reality of the world. Which, I might add, has resulted in gold prices in nearly all currencies at, above, or nearly at previous all-time high levels. And which, I assure you, will ultimately occur at the epicenter of Cartel manipulation as well, the U.S. dollar-priced market. And yes, silver will ultimately outperform gold – as it is far more undervalued, and far more scarce.
I mean, think about what occurred this week alone! China essentially announced it will be nationalizing all bad corporate debt – which will only make its historically unwieldy balance sheet that much more dangerous, at a time when capital is rapidly flowing out of the country. Next, the ECB “crapped the bed” in announcing the most negative interest rates ever; a 33% increase in its QE program, to a level greater than even the Fed’s “QE3”; and even included corporate bonds in its “monetization list” – which ironically, will only reduce global liquidity further, as it inexorably declines to the systemically catastrophic levels of the 2008 crisis. Yet, it not only failed to “fight deflation” by devaluing the Euro as intended, but made it worse, as the Euro didn’t plunge – but to the contrary, soared.
In other words, like the Fed before it – in botching its December “rate hike”; and the BOJ in January, which saw the Yen surge after unexpectedly taking rates negative; Central bank credibility has decidedly, and permanently, been lost. This, amidst a global economy worse than anything seen in generations, as exemplified by the 25% year-over-year plunge in China’s February exports. In other words, all that remains in the “powers that be’s” all but spent ammunition depot are the unabashed, increasingly obvious manipulations of global PPTs, Central banks, and the gold Cartel.
I mean, consider the fact that at the heart of the Cartel manipulation, the New York COMEX, essentially all the registered gold inventory has vanished in just three years time – and in silver’s case, 12 months! Meanwhile, GLD’s ETF buying has so powerfully increased – as institutional demand has returned with a vengeance – that it’s like a whole new China has entered a market already in deficit. Heck, the past two weeks, the entire Indian market has essentially been closed by a jeweler’s strike – protesting yet another round of draconian government attempts to limit Indian gold buying, which will ultimately fail; and still, dollar-priced gold powered to a new 52-week high Thursday night; whilst in Rupees, gold has surged to within 14% of its all-time high, even after yesterday’s Cartel raid. As for silver, per what I wrote in this week’s “Admiral Sprott rides again!,” it’s just a matter of time before the PSLV closed-end fund does a Cartel-busting secondary offering (enabling a massive physical silver market purchase) – as despite the Cartel’s best efforts, which I first predicted three years ago – the PSLV’s premium to net asset value has risen back to 4.5%!
As for the COMEX “commercials” – i.e., the Cartel – consider the fact that over the past three months, they have gone on their most maniacal naked shorting spree of the entire 16-year bull market; exceeding even their failed gambit in late 2008 – when in a desperate attempt to prevent gold from being seen as the safe haven it always has been, and always will be, it inadvertently caused supply to vanish, and physical premiums to explode. So for those that think the Cartel “always wins,” consider that they have (naked) shorted an astonishing 192,000 contracts since the beginning of December, worth $25 billion, or 20% of annual worldwide gold production. And what has gold done during that time? Well, it just went from $1,050 to $1,280 as of 24 hours ago, and $1,250 following yesterday’s vicious late-day Cartel raid. In other words, they have been blown out of the water; and even the most skeptical, jaded market watcher will realize what they are doing if they attempt to raise their short position further, amidst not only exploding physical demand, but exploding reasons for such demand – such as hyperinflationary Central bank announcements like the ECBs!
What I’m trying to say is that I’ve learned a LOT in my 27 year career – particularly, the 14 years I have been following Precious Metals, day by day, and tick by tick. Consequently, the “culmination of everything I know” tells me the “powers that be’s” manipulative grip over financial markets – and with it, economic perception – is being rapidly lost. And no more so than in the Precious Metal markets, where real money is starting to re-assert itself after having been suppressed by a century of government price-fixing, and four decades of a banker-enforced “fiat currency standard.” This is not to say we’ll awaken Monday morning to the Cartel’s demise; but rather, that not only has the bottom been put in, but the manipulative chains that have imprisoned Precious Metals for the past 15 years are slowly but surely breaking – potentially, to shatter at any moment. This is why, more than ever, the urgency to PROTECT oneself from what’s inevitably coming is so powerful.