Laura, who does such a superb job of editing and producing the Miles Franklin Blog, is tied up interviewing for a position at Miles Franklin, and she asked me to please get her Tuesday’s article by 4:00 on Monday. What I am writing, below, was early in the day, on Monday.
Gold and silver opened the day DOWN. Gold dropped below $1588! The euro was UP. Yes, this is Plan “A” – hit the markets into the opening and try and influence the hedge funds to join in and dump their positions. Mission NOT accomplished. After the initial shock, (see chart below), everything reversed.
Gold and silver turned up, with gold currently holding above the important $1,600 number, the dollar fell, and Ranting Andy wrote to me and said, “The big three French banks are in free-fall. Biggest intraday turnaround in European shares I can remember. PIIGS down 3%, banks down MUCH more.”
This really shouldn’t be a surprise, not the takedown or the recovery. Since when does the need to own gold have anything to do with Cyprus? Was Cyprus any part of the 12-year bull market in gold? I thought gold was all about US debt, QE, currency devaluations and Chinese and central bank buying. I hope you don’t fall for this MOPE by the media. The gold cartel uses every headline, every excuse known to man to influence the hedge funds to sell off their paper gold investments. This is absolutely in character and is to be expected. You have two simple choices here – put your faith in the MOPE and hedge funds short-term scams, or put your faith in the real reasons why big money is accumulating physical gold. Nothing has changed, you know, except there are some very angry ex-KGB who will get their revenge. You don’t steal from the Bear.
Many newsletter writers and most of the PM traders believe that gold’s performance is strictly tied to the dollar. Bill Murphy and Andy Hoffman have written time and time again that this is not the case. It was only true, years ago, but the bull market in gold really started to get traction when gold begin to rise in all of the major currencies. If the dollar is rising, the other currencies are falling (relative to the dollar on the USDX) and then gold becomes more expensive, or rises in other currencies. That’s exactly why they are hitting gold now, so even though it is rising in euro, yen, etc. if they knock it down low enough, it won’t “appear to be rising” and they hope it will curtail demand. But there is another aspect to this drama – Cyprus
I would expect a strong buying interest will quickly develop after the heavy-handed way the Northern European banks raided the savings accounts in Cyprus. This is just JPM, the Fed, the Treasury, with the help of the funds, whose TA tell them to sell, once the ball is set in motion, moving lots of paper around, forcing the price lower. This is not representative of the physical demand. Do not be fooled by this. Be patient. Gold will spring to life, in spite of or actually because of this foolish manipulation. With fiat currencies and the banks on the ropes, and they are, the powers that be are playing every card in the deck to hold back gold, which would focus attention on the problems, if allowed to rise now, in the midst of the crisis.
Here is what Jim Sinclair had to say about gold on Monday morning…
It’s obvious that the intention of the paper market for gold is to collapse the price under $1,600. The buyer of this market has been the physical buyer. The transition we are going through is, who is the arbiter of price, paper or physical?
The worst thing that could happen to the paper shorts is that, yes, they do get it through $1,600 (on the downside), but barely. Gold may trade to $1,575 to $1,580 in that event, but gold will immediately come back through $1,600 and all the way through the $1,800 level. This action would be the beginning of the end of the paper market controlling the price of gold.
Continue reading the interview on KingWorldNews.com
And then, the following from Reuters. It must have been a very early article, because from what Ranting Andy told me, the bottom fell out, after the initial “exuberance” faded. Not only of the three “big French Banks,” but the euro tumbled, and European stocks fell. At this hour, even the Dow is down 100 points. The amazing thing is the suddenness of the turn-around. It usually doesn’t happen this way. In spite of the best efforts of the ECB and Fed and their minions in the MSM, the markets rejected the “good news” and started to buy the metals and shed virtually anything European. Maybe, people are finally beginning to wake up to the hype, lies and manipulation? It’s noon, and there is a lot of time left, but let’s see how today ends up.
By David Brett
LONDON | Mon Mar 25, 2013 2:04pm IST
(Reuters) – European shares rebounded and safe-haven German government bonds fell early on Monday after Cyprus clinched a last-ditch deal with lenders to bail out the debt-ridden island and avert a collapse of its banking system.
In the early hours of Monday morning Cypriot policy-makers agreed a deal with the European Union, the European Central Bank and the International Monetary Fund to shut down its second largest bank and inflict heavy losses on uninsured depositors, including wealthy Russians, in return for a 10 billion euro ($13 billion) bailout.
Without the agreement the ECB said it would have cut off emergency funds to the banks, triggering a meltdown of Cyprus’s banking system and potentially pushing the small country out of the euro currency bloc.
The euro zone banking shares index .SX7E rallied 2.4 percent, while the price of German 10-year Bunds, which moves down as yields go up, fell marginally.
Continue reading on Reuters.com
If you want honest reporting on the Cyprus fiasco, a good place to start is with the following from Jim Sinclair:
March 25, 2013
Today legendary trader Jim Sinclair spoke with King World News about the disaster in Cyprus, the timetable for a new monetary system, Russian chess moves, and what to expect from gold. Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say.
Eric King: “The comments from former US Treasury Official Dr. Paul Craig Roberts, what he had to say in a series of interviews this weekend on KWN, I wondered what your thoughts were as you read those?”
Sinclair: “I enjoyed those very much because there is no question that this man is an expert on how things work at the Treasury. And we know nothing changes very much in the way a department is operated.
He has the stage to stand upon, the qualifications to comment, the knowledge, without any doubt, of exactly how that department works, and that’s what he outlined to us in those first two written interviews this weekend.”
Eric King: “He spoke about the banks moving to enslave humanity, and he said the Cypriots had to do whatever it took to put a stop to this.”
Sinclair: “He sees the fact that this is a confiscation. He knows that the entire living system of the financial world is based on bank deposits….
Continue reading on KingWorldNews.com