I just finished listening to Larry Edelson’s latest report titled “Coiling up, BIG market moves near …” Larry relies 100% on his technical analysis charts and they are telling him the following: The markets are coiling up like a spring, which is rather unusual for this time of the year and they are on the cusp of very big moves in most markets.
He is bearish on gold and silver and warns that the stock market is near a top and the dollar is near a bottom. As usual, he points out that after the coming correction, gold and silver will rebound to spectacular new highs but for now, his models in the precious metals are bearish. He goes out of his way to point out that gold has not yet taken out either its November 2011 high or its May 2012 high.
What’s wrong with this picture? Maybe nothing. He could be correct. But his analysis is based strictly on technical analysis that completely ignores intervention by the Fed, JP Morgan and the PPT. I have a hard time paying much attention to those who still cling to the idea that our financial markets are unencumbered and work perfectly to the rhythm of moving averages. It is true that the large commercial interests (JP Morgan and friends) are loaded up big-time on the short end of gold and silver on the COMEX and that they could pull their bids, and dump a huge amount of paper gold and silver contracts on the market to engineer a major pull back in prices at any time. They have a history of doing that since the start of this bull market, over a decade ago.
Or maybe not. Ed Steer is unsure of what to expect, as is Ted Butler. They are rational and understand that at this juncture, the gold and silver markets can go in either direction. Jim Sinclair emphatically states that the bullion banks are deliberately forcing the price down so they can accumulate the physicals at a lower price. Larry, true to form (and a slave to his charts) is still pounding on the table that the next big move is down, period! He has been bearish since last spring and has left a lot of money on the table.
Even if there is a correction looming around the corner, I don’t see gold falling back below $1,750 or $1,700 max and then only for a short period of time. Gold has already sliced through every resistance point, including the highly contested $1,775 plateau. $1,800 is the next battleground. The folks at JP Morgan are doing everything in their power to keep silver below $35 and for a brief while this morning; silver did top $35 only to be smacked down below this important level for the umpteenth time. Granted, gold and silver are having a hard time making headway here, but that is not due to Larry’s charts or free market factors, it is due to massive manipulation by the usual suspects.
This chart (Monday) is so typical of the manipulation that is fighting fiercely to keep gold below $1800.
And look what they did to silver after it pushed above $35.
Every time the “Cartel” hits gold and silver like the action above, they use up more ammunition. The day is coming when their measured retreats will turn into a bullish rout. Edelson says that day will be when the sovereign debt crisis comes to our shores and the focus will leave Europe and we will be in the crosshairs of the bond buyers of the world. On that point, I do agree with him. But that may not signal the beginning of the move up in gold and silver, it may simply add fuel to the fire that is already smoldering.
Take note – Jim Sinclair presents his views that are contrary to Larry Edelson’s, totally contrary. Who do you want to believe, Jim Sinclair or Larry Edelson? Vote with your wallet!
All you have to do is read Ranting Andy Hoffman for a few days and you will get an education on manipulation. Andy is very passionate and is the proverbial hammer looking for a nail when it comes to manipulation, but he backs it all up with facts, undeniable facts if you choose to be open minded about it. But alas, very few people are open-minded about much of anything, including politics and religion. We do best when “preaching to the choir.” I don’t imagine we change very many people’s long-held views and that’s o.k. I can tell by looking at our newsletter subscription data. We lose a dozen or two readers every week. We add many, many more than we lose however. Considering that we don’t charge for our information and it is of the highest quality, it just re-enforces my view that you can’t change people’s views no matter how strong your arguments are.
Hey, I’ve been trying to open Backwoods Jack’s eyes for the last half a dozen years with absolutely no success. Last week he emailed me:
I have grave concerns that you have isolated yourself from reality by not reading newspapers or observing newsworthy programs on TV. Is not almost everything from David`s Desk a merry-go-round between Gold and the choir of contributors and Miles Franklin.
No, we can’t change people’s minds but we can do wonders for those of you who approach us with an open mind.
Throughout the duration of this bull market the best advice turned out to be GATA’s catchy saying, “You’ve Gotta Be In It To Win It.” I am convinced that the worst advice you can get, like the comments from Larry Edelson, is to think like a “trader.” Trading in and out of your physicals is bad advice! Sitting on the sidelines waiting for a pullback, which may or may not come, is bad advice. You will never get that kind of advice from Russell or Sinclair or Miles Franklin. Gold is NOT an investment. Gold is money. You buy it, set it aside, and never touch it, unless you need it for an emergency. It is your core financial asset. It is the last thing you ever sell.
My son Andy and I already have our gold stored with the Miles Franklin International Precious Metal Storage Program in Montreal. Both of us have come to the same conclusion that this is the safest place for it to be. We have long advocated that you keep your gold at home, hidden or in a safe. And please, if you do, make sure NO ONE knows that you have it and I do mean no one. But the best choice is to store it OFFSHORE and safely out of harm’s way. It makes perfect sense to keep a few gold coins and a bag of junk silver close by, but if your holdings represent a significant portion of your net worth then don’t take the risk of losing it all. Remember, the one thing you don’t want to do is to take The Big Hit, either via a bad investment or a theft.
Storing your gold and silver with the Miles Franklin Precious Metal Storage Program in Canada helps eliminate concerns about a home break-in or government confiscation. It is very cost effective. Storing gold one-ounce coins only costs around 0.006% ($1/month/ounce – or less for large amounts). You should call us at 800-822-8080 and we will send you information on how the program works. This program is unique in what it offers. We also offer offshore storage in concert with our partner BFI, in Switzerland and in Asia, but we think our Canadian program is simply in a class by itself. I can honestly tell you, I sleep better knowing my most precious asset, my gold is out of harm’s way.
I used to think that having a good home security system with motion detectors and a battery back up cell phone (in case robbers cut the power and phone lines) along with a good gun safe was sufficient. When my wife went to our local police department to get a permit to own a firearm last week, they told her that the type of protection mentioned above would deter the casual robber it would not stop the professional! A close friend of mine told me that recently someone he knew in Suffix County, NY, who had a very sophisticated home system and safe came home to find that all of their jewelry and substantial precious metals holdings were gone. I am not trying to scare you. I am giving you an option that costs little and gets you out of harm’s way. Remember, if you do keep your metals at home; make sure that no one knows. The most important thing in investing is sleep! Having your gold out of the country, stored with our storage program at Brinks, a non-bank private storage facility, and one of the most revered names in the business – and insured by Lloyds of London should give anyone peace of mind and a good night’s sleep.
I have been in the precious metals industry since 1983. I have tried hard to set Miles Franklin apart from the rest of our industry. That is not to say there are no other good choices, but I believe that what we now have to offer is unique.
We offer you very experienced brokers and they are all really good and caring people. Bob Sichel started in the business in 1982. Mike Spector, Kathie Bortnem and I started in the same training class on the same day in 1983. My son Andy, Miles Franklin’s President, has been with me since 1990. Joel Kravitz has been in and around the precious metals business for over 15 years. Derek Winebarger joined us seven years ago and Ross Kiefer has been here going on three years. Our most recent hire, John Herbert worked for one of the biggest companies in the industry for over a year before moving over to work for us. They will all tell you that Miles Franklin is a very special company and a great place to work. As you can see, our people are very loyal and do not leave.
Our off shore programs are the best you will find. We spent 18 months developing a uniquely excellent program with Brinks in Canada, which I have mentioned above. It’s really so good that Andy Schectman and I now have our gold and silver stored there, and many of our clients have made the move as well. We have several clients who have between 5 and 8 million dollars in metals in this program.
We are growing by leaps and bounds every year and our reputation throughout the industry is gold plated. We have a physical presence at many of the large financial conferences and Ranting Andy is burning up the airwaves with weekly interviews on YouTube and podcasts that are universally well received.
I just want you all to know what we are about, who we are and what we have to offer. We pick up many new readers every week and this information is especially helpful for you newbies.