As Housing Crashes, Gold Will Soar

The precious metals market is at the end of its typical mid-July to last August “breather.” This is the time of the year when the eastern hempisphere physical buyers are somewhat dormant.  Over the last several years, China’s emergence as the world’s largest gold importer has somewhat reduced the late summer seasonal sell-off.  But it’s the period of the year when it’s the easiest for the paper manipulators to push the price of gold lower.

Quite frankly, gold is up 25% since mid-December and 10% since early June.  Notwithstanding the fact that, if left alone to trade freely, gold would go parabolic for at least $700-$1000, it’s been one of the best performing asset classes YTD and can use “technical breather.”  But India is starting to flex its muscle as it heads into its biggest seasonal gold buying period of the year from right around now to mid-December.

On the other hand, the housing market is getting ready to rollover. Its already crashing in some areas (Hampton, Aspen, Miami), as noted by Investment Research Dynamic’s Short Seller’s Journal two weeks ago.   The higher end of the price spectrum is loaded with inventory in most major MSAs  and inventories in the middle and upper-middle price segments are building quickly.   July was negative month for existing home sales and mortgage applications.   The only area homes were being “sold” was in the Government’s highly manipulated new home sales report.

The Shadow of Truth discusses gold and housing  and the direction in which each is headed in its late episode:

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3 thoughts on “As Housing Crashes, Gold Will Soar

  1. Dave, things are getting weirder almost by the hour..they are running hit pieces on Trump daily in Australia? Clinton is virtually declaring war on Russia as part of her policy agenda? If we get through next month without something very bad happening I’ll be very surprised. Arrests need to start happening at the highest level of US gov & i’m not talking about Trump..also the MSM & corporate America ..these people are seriously trying to start ww111

  2. Dave, it’s not directly related to this post, but crazy things are happening so fast & furious (pun intended) now, that couldn’t be bothered to search for most appropriate thread.

    Anyway, the geo-politics genius F William Engdahl has written a great blogpost on Hitlery titled: “Brain Damaged US President with Finger on the Nuclear Button?”

    http://williamengdahl.com/englishNEO24Aug2016.php

    This is a terrific read. Pls pass along this link to Dr Paul Craig Roberts. I don’t know how to get in touch w/ him directly, as I’m not in his subscription base email list.

  3. Dave, there is a fascinating article on King World News from Ronald-Peter Stöferle (http://kingworldnews.com/this-firm-has-issued-a-nearly-60-target-for-the-price-of-silver/) which forecasts a silver price of $60 by June 2018. The fascinating part is that, because of the ruination effect of inflation, not only should we have seen that price ‘in the rearview mirror years ago, we should now be witnessing prices in the 100s of dollars but we do not! Here is some simple maths (I am English so we spell it with an ‘S’) for you. Assume an inflation multiple of 20x since 1980 which I think is fair. Either, the price of silver should be 20x today’s price, $18.60, which is $372 or, to put it another way, today’s price in 1980 dollars is $0.93 , that is 93¢.

    We all fall into this trap at looking at the world (and silver prices) as they are. Why is no one talking about the utter fraud that has been perpetrated simply by removing the multiplier effect of inflation that applies to everything else consumed in life? Is there anything other than silver that costs a fraction of what is cost in 1980? I cannot think of one, Can you or any of your clients or blog readers.

    The elites laugh at us all because they see how stupid we really are by ‘buying into’, not the fraud of the silver market, but the actual prices themselves. We are all stupid, dumb, idiots for not calling this out and suing the whole bally lot of them for 40+ years of false prices. The manipulation isn’t the bombing of the markets (now on a daily basis), it is the promulgation of totally false prices which bear no relationship whatsoever to the value to the product sold. Would you sell your Toyota or Ford 4×4 for $100? No, you would not. Then why do we accept, as a matter of course, a comparative price (93¢) for silver? We should demand $372 for an ounce of silver now as a fair price.

    That is the fraud, Dave, explained for you here in plain and simple language.

    Jack

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