Sometimes, my urge to write long discourses is so strong, I feel I must “tie my hands down” to stop myself. This is one of those mornings, as there are literally a half-dozen “horrible headlines” worthy of their own dedicated discussions. However, for the sake of brevity, I’ll simply say the reasons to own Precious Metals has NEVER been stronger; particularly as my “top two picks” for “most likely to catalyze the next global crisis” are becoming surer bets each minute.
In Europe, Germany’s Finance Minister flat out stated Greece will shortly require another bailout – as it careens down the tracks en route to certain DEFAULT on its more than $500 BILLION of debt. Moreover, the “Indian Implosion” is getting vastly worse – on all fronts. Yesterday, its own finance minister literally begged the world to believe his B.S. that the government has the situation under “control.” And how has the market rewarded him? By taking the Rupee down another 1.8% this morning, to yet another ALL-TIME LOW, of 64.2/dollar. I want you to picture how ENRAGED the gold-loving Indian people are at the prospect of their currency collapsing and food inflation exploding; and consider what their response might be.
And finally, a quote and a chart for your edification; the former from William Kaye, a well-known Asian portfolio manager; in which he describes the inevitable “Precious Metals Supply Crunch” I have been SCREAMING about all year. And if he’s even remotely correct, such a plunge would exceed even my own worst-case scenario:
2,600 tons of gold were produced and sold into the market in 2012. At current run-rates, we believe only 2,200 tons of gold will be sold in 2013= care of depressed prices. Those numbers will continue to fall if gold prices don’t rise dramatically from where they are today.
At existing prices, roughly 25% of production would cease to exist by this time next year. So, to be clear, this would be an additional 25% reduction from the already reduced 2,200 ton number. This is potentially a very, very serious situation for the Western price manipulators, because supply would continue to disappear at a rapid pace.
–KingWorldNews.com, Secret Central Bank Activity In The Gold Market Exposed, August 20, 2013
As for the latter, here’s a chart depicting why the Fed will NEVER, EVER, EVER “taper” QE; and in fact, is more likely to increase it by year-end than slow it down. Yes, “Mystery Buyer X” was the Fed; and if you think they were the world’s only Treasury buyer in June, wait till you see what the numbers for July and August turn out to be – now that interest rates have been surging.
Source: Zero Hedge
Thus far this week, the Cartel has attacked with a vengeance to slow the accelerating PHYSICAL precious metal train; literally, praying it doesn’t run them over in plain sight. Another three straight days of 2:15 AM EST attacks and afternoon cappings hasn’t accomplished much as of yet; and a big test will be when today’s utterly meaningless “FOMC Minutes” are published at 2:00 PM EST. As we all know by now, such events have typically coincided with Cartel PAPER raids; and thus, if they cannot succeed in knocking prices down today, it should be a clear sign that the forces of REALITY are finally bearing down on them. Either way, I couldn’t be more urgent in my warnings to…
PROTECT YOURSELF, and do it NOW!
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