Over the past eleven-and-a-half years, I have watched the Precious Metal markets tick for tick. In my prior life, I became an award-winning Wall Street analyst via persistence; and when it comes to gold and silver – in which I happen to hold my entire liquid net worth – NO ONE has been more persistent in learning how “the game” works.
I may not be an expert in lease rates or bank participation reports – although I certainly know more than most; but when it comes to the mechanics of the Cartel’s day-to-day operations, I’d be surprised if more than two or three people on the planet have done more research. It was I, for instance, that alerted GATA of the persistent 3:00 AM EST gold attacks and DLITG, or “Don’t Let it Turn Green” algorithms circa 2004; and later on, the 12:00 PM EST “cap of last resort.” My proprietary work on the “KEY ATTACK TIMES” of 2:15 AM EST and 2:00 PM EST is unparalleled, as are my signature “manipulation pieces”; in the PM market, the “Cartel Herald,” and in the stock market, the “Dow Jones Propaganda Average.” To this day, the five primers I wrote on COMEX manipulation in 2011 -available in the “newsletters” section of the Miles Franklin website, totaling 355 pages – are MUST READING for those seeking to empower themselves against the mirage that PAPER gold and silver trading has become.
My “manipulation motto” since the beginning of my Precious Metals journey has been “each day worse than the last”; a theme validated in spades this year. Of course, the reason the Cartel has been forced to exponentially increase such suppression is because the Ponzi scheme that is the global fiat currency regime is in its death throes. Not a day goes by when another “mini-crisis” must be addressed, as the holes in the dike increase in both size and amount. Whether it’s spiking Treasury yields, emerging market currency crashes, or bank failures, the “fallout” from 42 years of unfettered, global money printing is growing exponentially larger. And thus, as gold and silver are the “Achilles Heel” of this scheme to control the economy via Central bank printing presses, they MUST be contained to prevent an instantaneous collapse of all they’ve “worked” for. For 12 straight years, gold prices managed to rise despite such attempts; but alas, this year’s maniacal efforts appear likely – barring a massive late-year rally – to prevent a 13th straight up year. Oh well, 13 is an unlucky number anyway; and thus, we’ll likely have to wait until 2014; which, by the way, starts in less than two months.
Among the various suppression “operatives” I have reported on since 2002, one of the most blatant are Cartel “lines in the sand,” or LITS. In essence, Cartel “henchman” like JP Morgan set up naked shorting algorithms at ROUND NUMBERS, and particularly KEY ROUND NUMBERS like $1,300 and $1,400. Such levels are utilized to cap gold rises – usually at 1% per day – enabling “open interest” to build as clueless PAPER speculators use “black box” technical analysis to set up buying programs. By preventing the PAPER price from rising above such levels – when technical analysis says they “should” be breached – the black boxes quickly turn sellers. And thus, new WATERFALL DECLINES are initiated, often when fundamental news says prices should surge – as was the case last Wednesday, when the Fed announced an indefinite continuation of QE4. Such activity was “fine and good” for TPTB’s aims when physical demand largely mirrored paper price changes. However, as the entire world is waking up to the fact that said Ponzi Scheme is approaching its terminal stage, the gap between the two is sharply widening – as in China, where last year’s record imports will be doubled this year; and India, where despite massive tariffs, gold premiums and silver imports, respectively, have reached record levels.
The reason I penned this article is because what I have witnessed the past two months is the most blatant, heavy-handed “lines in the sand” of the past eleven-plus years. In other words, the “ultimate lines in the sand” or ULTI-LITS. For gold, the Cartel has now been protecting the ROUND NUMBER of $1,320/oz. for the past two months; and for silver, $22/ounce.
In late September through early October, for instance, we saw an incredible span of 13 straight days in which gold and silver traded above those levels intraday, only to close below them by day’s end…
…and ditto this week, where gold has been repelled from $1,320 a whopping ten times already – and it’s only Wednesday morning; in each case, of course, via a typical Cartel Herald capping algorithm. Sure, prices have briefly spiked above the “LITS” amidst “extreme news items” – like surprise no taper announcements and poor NFP employment reports. However, the Cartel simply “dug in” immediately afterwards; and the next thing you know, we’re back below $1,320 and $22. As I write, gold is $1,318 and silver $21.90/oz. – you can’t make this stuff up. And thus, the PAPER farce continues; while simultaneously, PHYSICAL inventories dry up the world round – from the COMEX, to the LBMA, the Shanghai Gold Exchange, and Indian jewelry shops.
Don’t expect any help from the “authorities” – especially not “Bad Bart” Chilton, who yesterday resigned from the CFTC after failing in his supposed attempts to crack down on such manipulation; as it’s the government itself perpetrating the fraud. And don’t expect the situation to “improve” any time soon; as like the fiat currency system itself, PM suppression is a Ponzi scheme that MUST expand to survive – lest the forces of natural demand will swamp it.
Fortunately, the forces of “Economic Mother Nature” are on our side; as the more intense the Cartel attacks PAPER PM markets, the more aggressive global physical buying will become. Moreover, PM supply is in the early stages of what will likely be a multi-year freefall; and thus, it’s just a matter of time before the scant above ground inventory is permanently exhausted. And rest assured, a veritable sea of PM-positive “horrible headlines” will support new, worldwide demand; such as today’s news alone of surging Challenger job layoffs, plunging mortgage applications, a plummeting Gallup job creation Index, record individual income taxes and home rents, falling GDP estimates, plunging “household formation,” and yet another Fed President endorsing indefinite QE – and that’s just in the U.S.! Not to mention, a nationwide Greek worker strike and uh oh, renewed weakness in the Indian Rupee – as it prepares to challenge its all-time low following a month of unprecedented government intervention.
Try to picture how many thousands of hours I have dedicated to uncovering the secrets of the Precious Metal suppression scheme – promulgated for the sole purpose of deferring the inevitable collapse of history’s most cataclysmic financial bubble – the U.S. dollar based global fiat currency regime. I initially did so to empower myself to “stack” in the face of such frustration; but in recent years, spreading the word to others has become my life’s calling. We at the Miles Franklin Blog promote Precious Metals ownership; but as David Schectman wrote yesterday, Bill Holter and I wrote of the same things long before joining the bullion industry – and more importantly, we practice what we preach. Hopefully, you will be part of the “new 1%” who have PROTECTED themselves when the end game arrives; as when it does, the opportunity to own PHYSICAL gold and silver – certainly, at prices anywhere near the current levels – will be permanently gone.