My Call On The Precious Metals Sector

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I think the best indicator that we are at a bottom is the attacks I have been getting via email, comments that I can’t post because they are so insanely idiotic and even on twitter. Frankly, given the degree of manipulation by the Fed-sanctioned banks and the anti-gold bias of the financial media, I am stunned that anyone would expect that my “bottom” call would be perfect to the day.  Here’s an example of completely fraudulent propaganda coming directly from Wall Street.  This was an email received by Dennis Gartman yesterday that he published in his daily newsletter today:

“Interestingly we got an e-mail yesterday from an individual noting that he had been told by his brokerage firm that it was illegal to own gold in non-US dollar terms. This is nonsense; of course one can own gold in non-US dollar terms… otherwise the NYSE would be trading our ETFs… GYEN; GEUR, GGLD and GLDE illegally, or the CME would be illegally allowing us to be long of gold/short of the EUR, or the Yen or Sterling or any combination therefore. We are stunned by the nonsense that is sometimes so prevalent in the markets.”

THAT is what anyone who is trying time the precious metals market is up against.  What’s ironic is that, when I ask any of the morons ridiculing me on my views to show me their market view/analysis, I get crickets in response.

I am standing by my call that we are at, or at least forming, a bottom in this vicious manipulated attack on the precious metals.  I had taken some profits on some trading positions in my fund two weeks ago to raise some cash, knowing the end of August is one of the most manipulated times of the year, and I have been putting it back to work into every single stock for which I have posted research reports.  Yesterday AND Friday.

Patience is the key because eventually manipulated markets – throughout all of history – end badly for the manipulators.  George Soros has bet at least $2 billion on put options that the S&P 500 will experience a significant.   Do you think he’s losing sleep on that bet?  No, based on his history of betting against Government manipulation, I would bet good money that he added to his short bets over the past couple of weeks.

14 thoughts on “My Call On The Precious Metals Sector

  1. unfortunately most everyone expects immediate gratification out of any trade they make. A variety of reasons for that incl the algo trading which creates regular moves.

    way back when you made what was called an investment (not a trade) which was based on fundamentals of a company or sector or economy, an expected new product, or something like that.

    Holding periods were much longer back then. You made your investment and then sat back and being patient would look to see if you made a good investment.

    Wayne Gretsky said something to the effect that he skates to where the puck is going to be.

    Investing should be much the same.

    McDonalds having a rough time increasing sales -but so is Burger King and WEN, and many but Chipolte and a few others–systemic problem.

    Its only been a year of lower same store sales but it took an Asian problem and sanction problem to send the stock down a whopping (sarc) 10%-no growth in the company, a squeeze on costs and potential min wage issue for the franchises. (I suppose higher prices would help the mother ship MCD re franchise fees on higher prices).

    Amazon (and you have discussed AMZN) shows negative margins for 17 years but its building for the future with its infinite PE. Again, in theory, a company current and future value based on future cash flows-whats AMZN foreseeable cash flow besides negative? Just asking. But AMZN growing sales by over 20%. they make it up on volume.

  2. Hi David,

    some remarks regarding your latest post:

    1.) The number of idiotic and insulting emails is not a reliable indicator.
    2.) You shouldn’t ask idiots for their analysis.
    3.) You should never ever quote Gartman esp. if it comes to anything related to PMs.
    4.) Soros uses shorts as a hedging not as a trading position.

    Good luck fighting each and every criminal central bank in the world.

    Mike

    1. Actually, if you monitor Gartman’s letter every day – which I do – he gets some pretty good inside info from big hedge funds about gold/silver. What he doesn’t have – nor do the hedge funds – is an inside line to the Fed and its bank tentacles. The trend Gartman does not see right now is that the Comex paper bullion banks are covering their short positions aggressively and the hedge fund are shorting aggressively. That’s a pattern that historically forms a bottom and a big move higher.

        1. So scalp the market second by second. I don’t care about the next five minutes. My call is secular. Not even watching
          I’m finishing up short-sell homebuilder report that is the most no-brainer short idea of the year so far.

  3. Dave,

    We all know (or should) that the depth and intensity of Cartel manipulation is in direct proportion to their desperation. So how freaked out must they be in 2014? In that environment, it takes a brass set to even make a call, never mind trying to get the timing right. Having said that, I must say I’m happy my name isn’t Bo Polny these past few weeks 🙂

    To me the main takeaway hasn’t changed: this interval remains incredibly valuable as long as one is in accumulation mode. The longer it lasts, the more we stack.

    Bottom timings aside, if the accumulation strategy no longer works or adds up for anyone, they should sell out now and redirect those monies elsewhere. If not, please STFU and stack on. Nose to the grindstone and all that (can’t use Stay the Course ever since GHWB ruined that sucker).

    Keep up your fine work.

    1. Thanks for the feedback. I saw Bo’s piece this morning. I think he may have be a bit over the line with his view but I’ll be the first one to erect a shrine to him if he’s right. Completely agree that the degree of manipulation and criminality going on reflects the degree of desperation.

      1. The so called cartel must have read Bo’s piece too and tries to make a statement right now. Meaning taking out $1240 in gold.

  4. DAVE BEEN BUYING ON THE WAY DOWN IF IT GOS MUCH LOWER MINES SHUT DOWN LESS SUPPLY MEANS ONE THING HIGHER PRICES .BUY THE BLUE LITE SPECIALS.YOUR SITE IS A MUST READ EVERY DAY THANKS .

  5. To me Agnico Eagles (AEM) bid on Cayden Res (CYD.V) yesterday was of great significance. Last time they bought a junior was 2005 right before the PM sector took off from below $400 to $1900 six years later
    I too read this site everyday. I really like it. Keep up the good work

    1. Agree. I was thinking about that last night. AEM is paying $200 million for a deposit
      that doesn’t even come with 43-101 declared resources. AEM is the shrewdest of the big
      mining companies. They don’t overpay for acquisitions like GG, NEM and ABX and KGC do.

      This should revalue most of the juniors with bona fide resources that have demonstrated
      economical metallurgy.

  6. DAVE YOU JUST GOT TO LOVE THE ACTION IN GOLD AT THE CLOSE NICE FLIP .I THINK IN A YEAR FROM NOW WE WILL LOOK BACK AND SAY ONLY IF WE BOUGHT MORE.

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