Tag Archives: GLD

“Buy” Signals Are Appearing Everywhere In Gold

The prediction I presented in the last Mining Stock Journal to subscribers about gold is developing even before the new year.

Although it seems like the precious metals sector has experienced another down year, the
HUI index is still up 48.6% from its 12/31/15 close and it’s up 65% from its low on January
19th this year.

The technicals in the gold market never been set up better than they are now for a contrarian move higher. On the assumption that gold closes on Friday lower for the week than last week, it will mark seven straight weeks in which gold has closed lower on a weekly basis. This has never happened before.

The premiums for physically delivered gold in China have never been higher. Egon Von Greyers, in Switzerland, reported in his latest King World News interview that there are reports that Swiss refiners have been paying a premium to buy gold. My suspicion is that the Chinese are willing to pay $30+ premiums to world gold in order to keep the supply from Swiss refiners flowing, which is why Swiss refiners are willing to pay premiums to acquire dore bars and scrap.

This illustrates the growing disconnect between the price of gold being paid by the markets in which physical delivery is a requirement vs. the price being paid by the paper gold markets (NYC, London) in which physical delivery (i.e. removed from the exchange and received into private hands) is highly limited, if not outright discouraged or considered a peculiarity.

The above analysis is an excerpt from the latest issue of the  Mining Stock Journal.  In thi s issue, I present several technical indicators which suggest gold is poised for a big move higher.  The mining stocks have been telegraphing this since late November – I detail this point in the MSJ

The MSJ is a bi-weekly subscription-based newsletter delivered to your inbox every other Thursday. The focus is primarily junior exploration mining companies, which have provided the best upside returns since January. Bloomberg featured an article – LINK – which explained that in-ground reserves at the large gold producers are dwindling. This will make small exploration companies with demonstrated gold/silver resource in the ground a lot more valuable going forward. You can access the MSJ here:  Mining Stock Journal Subscription Info.

I am a subscriber to both of your journals.  I just want to say “WOW” to this post on your site. Thank you for all your work.  As a financial professional of 28 years’ experience, I can tell you why there is no churn in your journal subscriptions. Your work is extremely sound and well done even in a massively manipulated environment.  – Kevin B.

New subscribers receive all of the back-issues (via email) plus a glossary of terms which help explain mining technicals.  The latest issue, released yesterday, has a junior explorer that has a proved resource on the largest copper-gold deposit discovered in recent years. This stock is worth at least twice it’s current market price based on the fundamental value of the deposit.

Mint Suspends Silver Eagle Production – 2008 Redux?

Silver Doctors invited me on their weekly Metals & Markets program to discuss notable events unfolding in the physical precious metals markets, the meaning of the Mint suspending 2016 silver eagle production several weeks earlier than normal, the bond market blood bath and other market occurrences that are eerily similar to events which unfolded before the 2008 de facto financial market collapse.

IRD is featuring an extraordinarily undervalued gold producer in its next issue of the Mining Stock Journal (out tomorrow). The previous issue featured a sell recommendation that might surprise those who own this particular stock. It also contained trading ideas on some high quality larger cap mining stocks that will bounce back quickly when this latest take-down of the precious metals market passes (likely this week). You can subscribe to the Mining Stock Journal with this link – MSJ Subscription. All of the back-issues are included (email delivery-based).

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Gold, Silver Action: The Criminals Are Still In Charge

Out with the old, in with the old.  Wall Street and  the Fed wants to make nice with Trump so as soon as he accepted the next Presidency, the market manipulators went to work on pushing stocks higher and gold lower.

What happened with the threat issued by the media that if Trump were elected the stock market would crash?  Yesterday Stanley Drunkenmiller issued a proclamation that he sold gold because inflation was coming.  I do not believe that I have EVER come across any reference to the notion that gold in inversely correlated with inflation.  Someone must’ve slipped Drunkenmiller some LSD in his scotch.  But, then again, Drunkenmiller is part of the Soros family, which means he’s the enemy of the people and the truth.

The economic thesis connected to Trump is infrastructure spending and inflation generation.   The insanely overvalued, over leveraged “infrastructure” stocks like Caterpiller and Terex screamed higher the last few days.    But if Trump has his way with his economic ideas, corporate taxes will be cut and the Government will re-do the work Obama did on the infrastructure.   Bridges to nowhere funded by more Government debt.

I’m sure most market participants with at least two brain cells to rub together – which de facto would exclude Larry Kudlow from this human demographic – have figured out that Trump’s game-plan would widen out the Federal spending deficit and further accelerate the issuance of more Treasury debt.  It is likely that the Fed will have to monetize some of this new debt issuance.  This is the perfect recipe for higher gold and silver prices.

What is occurring right now in the markets  is nothing more than a knee-jerk response by the hedge fund algos to the overt intervention by the PPT (the Fed + the Working Group on Financial Markets).  The PPT steps in to get stock and precious metals futures moving in opposite directions and the hedge fund black box computers pile in.

The massive take-down in gold is designed to make everyone feel better about Trump as the new president.  But the price-smashing can only occur in the fraudulent paper gold markets in NY and London.   Drunkenmiller is a fan, not surprisingly, of GLD – the quintessential postcard for fraudulent paper gold derivatives.

Today gold traded flat to up in the physical gold clearing eastern hemisphere markets.  It wasn’t until the Comex opened that the real party for the criminal manipulators began.  At one point, from 11:30 to noon EST 48,239 paper gold contracts were dumped on the Comex:

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48,239 contracts represents 4.8 million ozs of paper gold – over 150 tons.  Close to $6 billion worth of paper gold in 30 minutes.  From 11:30 to the 1:30 Comex close EST, a little over  103,000 contracts were sold, representing  10.3 million ounces of paper gold, or 321.8 tons.  The U.S. produces about 200 tons annually.    Make no mistake, it is no coincidence that this hit on the price gold was gold timed to occur on a Friday holiday after the rest of the world had shut down their trading systems and went home for the weekend.  This is standard modus operandi for the criminals running our system.

The Comex vaults are reporting a little over 2 million ounces available for delivery.  If an imbalance between the futures and the underlying available physical commodity were this wide in any other CME market, the Government regulators would be cracking down on it immediately, no questions asked.  Why is gold different?  The gold and silver markets are the most manipulated markets in the world and the same people doing the manipulation will kept in place under Trump.

The good news is that the physical accumulation going on in the eastern hemisphere will accelerate next week with the lower price of gold.  This always occurs.  This will be the catalyst that will put a floor under the ability of the western elitists to push gold much lower.

I personally bought some physical gold this morning via Bitgold and reloaded some call options on some high quality large cap mining stocks and added to positions in my existing junior mining stock portfolio.  The subscribers to my Mining Stock Journal were given my gameplan last night, including some names of other high quality mining stocks that have been beaten up and are overdue for big bounce.

Most Idiotic Comment Ever? “Sell Gold Because Inflation Will Spike”

Stanley Druckenmiller said:  “I sold all my gold (sic) on the night of the election” because he sees inflation spiking and that will force money(sic) out of gold…hmmm….sell gold because you see inflation coming?  That has to be the most idiotic investment rationale I’ve ever come across.  Even “buy stocks because they keep going higher” is less dumb than that.

You’ll note the “sic” I added after Drunkenmiller’s comment about “gold.”  “Sic” is used after a quoted word (from someone else) that seems odd or out of place.   I inserted “sic” after Drunkenmiller’s use of “gold” because he never owned gold.  He bought GLD, which is a paper derivative of gold.  The only way you own gold is if you buy physical gold and keep it outside the system. GLD is a fraud, just like every other fiat paper “asset.”

I also inserted “sic” after his use of the word “money” with respect to “money flowing out of gold” (because he thinks inflation will spike up).  Gold is money.  It’s the second oldest form of transaction currency – silver being the oldest.

Finally, the idea that gold should be sold ahead of an expectation of a spike in inflation is…well, for lack of a better term, retarded (apologies to safe-space and socially correct people).   Gold is the ultimate inflation hedge.

I sincerely do not know what would motivate Druckenmiller to make those remarks about gold – maybe he was patronizing what remains of CNBC’s imbecilic audience.   I don’t feel any need to directly address each component Drunkenmiller’s assertions about gold – and about his expectations about feeling good about the prospects for the economy.  The audiences of blogs like this one get it.

The current trading action in gold is being fueled by the paper market manipulation. If you review overnight charts for the last 3 months, you’ll see that on average and in general gold moves higher during the eastern hemisphere physical gold trading hours and gets bombed once the London and NY paper gold markets open after the Asian markets close.

It’s as simple as that.  The paper gold market, like Drunkenmiller’s comments and investment rationale,  are emblematic of the fraudulent, debt-riddled Ponzi nature of the U.S. and western hemisphere economies.

While the mantle of “power” in the U.S. was handed from Uncle Tom to Andrew Dice Clay, the real financial, economic and political power is being shifted from the western hemisphere to the eastern hemisphere.   The massive flow of physical gold from west to east is the root of this tectonic geopolitical and economic movement.

Gold And The Dollar Moving In Tandem?

One interesting occurrence that has not been written about in the precious metals alternative media or blog space yet is that gold has been quietly moving in tandem with the dollar over the past several trading sessions. It has been quite pronounced during the past four trading days, today inclusive. In the previous 15 years, gold’s best periods of return have occurred when gold and the dollar move in tandem higher for a brief period of time, followed by a period of time when the dollar heads south and gold continues higher.

If you look at graphs of both gold and the dollar side by side, you’ll see that this occurred in late 2005 into early 2006, when gold moved higher until May while the dollar fell and again in late 2008. It’s too early tell if that will happen now, but suffice it to say that both are moving in tandem right now and it’s worth watching to see if it continues. My theory is that there’s flight to safety into gold and the dollar ahead of an adverse economic event. As the event unfolds, the dollar begins to sell off but capital continues to flow into gold as the ultimate wealth preservation asset.

The above analysis is an excerpt from the latest issue of IRD’s Mining Stock Journal which was released last night.   Earlier today, Bill “Midas” Murphy poked his head out of the New Orleans Investment Conference and asked me why the metals were acting “so goofy” this morning, to which I replied:

Interestingly, gold and the dollar have been moving in tandem the past several days. Not perfect correlation but I bet its 80-85%. I discussed this in the latest issue of my Mining Stock Journal. Over the last 15 years, gold has had some of its best performance periods when it moved in tandem with the dollar for a bit then took off higher while the dollar sold off. It’s been moving in tandem with the dollar today as well.

The manipulated correction is over. India and China are buying a LOT of gold right now. Two days ago nearly 100 tonnes were delivered onto the SGE. I don’t think the cartel can take gold lower and I think right now they are merely trying to keep the “beachball” from popping above the surface of the water. Every time gold pops up, they hit it, but gold bounces back like one of those punching clowns.

At some point they are going to have to go back into “managed retreat.” Maybe once the election is over.

You’ll note that there’s now been a complete reversal in the precious metals sector, with gold, silver and the HUI running higher and the SPX/Dow headed south.   MSJ subscribers have been getting analysis like this since early March.  In addition, my picks have been substantially outperforming the sector. MSJ is $20/month, with no minimum commitment period.   You can access this content by clicking here:  Mining Stock Journal.

You’ve got a great journal for an amazing price  – James, happy subscriber

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Global Supply Of Gold Tightens After Barrick Mine Closure

An Argentinian judge has ordered an indefinite suspension of mining at Barrick’s Veladero gold mine in Argentina due to a serious cyanide leak.  To underscore the severity of the situation,it is being speculated that Barrick’s mine manager – who is no longer working at the site – has fled to Canada to avoid any possible prosecution.

Lawrence Williams provides a good analysis of the situation here:  LINK.   However, it is also worth reading an article in the Buenos Aires Herald, which reports that the Government has filed a complaint against Barrick:  LINK.

This is an interesting development because the Valedero mine produces 10% of ABX’s 6 million ounces per annum – or 17 tonnes.  This represents approximately .6% of the annual global gold mine production.

It’s not clear how long this mine will remained close.  Certainly longer than the couple weeks that Barrick CEO, Kelvin Dushnisky, asserted after making light of the issue at the Denver Gold Forum.

In the opinion of this blog and the Mining Stock Journal,  Barrick is a corporate abortion of a company and should be avoided at all costs as an investment.

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Paper Gold Is Legalized Fraud

A lot of questions were raised when it was reported that Deutsche Borse failed to deliver physical gold in exchange for its Xetra-Gold Notes.  But the only real answer to those questions is simple:  the only way you ever own physical gold is if you buy actual physical gold and take possession.

The allegations that Xetra-Gold or Deutsche Bank or Deutsche Borse committed fraud or failed to deliver gold are strictly false.  One thorough reading of the Xetra-Gold prospectus dispels those allegations.  The prospectus little more than a blanket legal disclaimer.   The language is clear.  It says right in the prospectus that the an investment in the Notes “does not constitute a purchase or other acquisition of Gold.”  There is not case for fraud because none of the participants in Deutsche Borse, and Deutsche Borse itself, did not commit any breach of contract per the terms of the prospectus.

The term “economic” in the prospectus is defined (pg 12) to mean that the “bears the market risk associated therewith. If the gold price decreases, provided that all other conditions remain unchanged, such decrease may result in a partial or complete depreciation of the invested capital. If the gold price increases, provided that all other conditions remain unchanged, such increase may result in an increase in the invested capital.

In this latest episode of the Shadow of Truth we discuss why buying paper forms of gold like GLD or Xetra-Gold is nothing more than an investment in a paper claim to the rate of return on gold during the period in which you own the security.  If you don’t hold your gold in your own possession, you don’t own it:

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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Powered by The Daily Coin, Investment Research Dynamics

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Full Metal (Gold And Silver) Price Manipulation

I’m not sure of the significance of 20 minutes past the hour, and I’m sure it has some sympbolic meaning to the gold manipulation cabal, but for the last week the price of gold has been getting slammed with an avalanche of Comex confetti at regular intervals at 20 minutes past the hour.

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THAT is not the graph of a market that is allowed to trade freely.   But notice how gold bounces back sharply from every take-down attempt.  This is especially significant given that this is one of the slowest seasonal periods of the year for the buyers of physical gold and silver.

This morning (Tuesday morning) was particularly blatant.  Gold had traded steadily higher overnight from $1344 (December futures basis) to $1364 just after the Comex floor opened for business (8:20 a.m. EST/6:20 a.m. MST).

Whenever the elitists start to lose control of gold, they roll out one of their Fed stool pigeons to threaten the world with a 25 basis point (one quarter of one percent) rate hike at the next FOMC meeting (September).   Today’s park bench popcorn scavenger was NY Fed President, Bill Dudley, who stated on Fox Business that a rate hike in September is “possible.”  I guess that means September’s meeting is a “live meeting” – a phrase Dudley and SF Fed Prez, John  Williams, propagated the mainstream media propaganda meat grinder with in May – LINK .

But gold shrugged off Dudley’s empty, Straw-man threats and closed today respectably up about $5 from the close of yesterday’s afternoon “access market” trading session.  I still believe that gold could see $1500 by Halloween despite the Comex B-52 paper bombs being dropped religiously on the market.  And we are just one economic, political or societal catastrophe from gold making a rapid run toward $2,000.

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Buy every manipulated sell-off in gold and silver.  It’s the true “TINA” idea.

A lot of readers have asked me if it’s too late to buy mining stocks at this point. I refer them to a long-term graph of GDXJ so they can see where the junior miners have been relative to the level at which they bottomed. It’s a prototypical chart of a market that is in the early stages of a massive move higher. The key is to identify the exploration companies that have a high probability of hitting the proverbial pot of gold. The last 5-years caused a lot of damage to the junior sector, but there’s a lot of companies with “a pulse” that have been revived, albeit significantly undervalued from a risk/return standpoint.

My Mining Stock Journal is focused on finding companies that are currently overlooked by the mainstream mining stock analysts and newsletters. As an example, I presented a stock idea in mid-April that is up over 280%. It recently doubled in price shortly after a major newsletter service poo-poo’d the idea. I draw on several seasoned veteran contacts plus 15 years of experience researching and investing in this sector. You can access the MSJ – a bi-weekly report – here:   Mining Stock Journal.

I just received your August 4 Stock Journal and before getting to your suggestion and half way through your guidelines for picking stocks I wanted to write this first. I have attempted to find those obscure companies and must say it is most difficult. Upon reflection I should have just waited on your bi-weekly report because your picks have been awesome. – “Jim”

Where Is The IMF’s Gold?

In mid-2009, the IMF announced that it was going to sell a portion of its gold.  It ended up selling 403 tonnes of its then-reported 3218 tonnes of gold.  Back then the original announcement made it sound like the IMF was trying to push down the price of gold with a big sale announcement, as the price of gold went parabolic after the 2008 de facto collapse of the financial system.   The excuse for the gold sale was to “shore up” IMF finances.  However, historically, the IMF has sold off portions of its gold holdings as a policy to reduce gold’s role in the global fiat currency system.

At the time, India and China jointly delivered a research paper which suggested that, if the IMF were interested, the two countries would be interested in buying all of the IMF’s gold. The IMF limited its sale to the 403 tonnes:   200 tonnes to India, 2 tonnes to Mauritius and 10 tonnes to Sri Lanka.  By  December 2010 the IMF concluded the sale of the balance of the gold without ever disclosing the buyers.

The IMF’s gold comes primarily from the member countries, who pledge gold to the IMF as part of the cost of their “quota” assigned to become a member country.  25% of a country’s “quota” were to be paid in gold.  The IMF states that its gold is held in various depositories, like the NY Fed, around the world.  The truth is that most of the gold “pledged” to the IMF has likely been leased out by the custodial Central Banks.

Curiously, over the IMF’s 71 year history, it sold its gold intermittently.  Each time the demand by Central Banks to buy that gold has far exceeded the amount of gold offered.  This is an important point to note because it drives home the point that gold is significantly undervalued and that real Central Bank demand emerges when large quantities (100’s of tonnes) of gold are offered for sale.

In the latest episode of the Shadow of Truth, we discuss the interesting shift occurring in the IMF’s SDR structure and what it means for the U.S. dollar as a reserve currency.  We also discuss why the price of gold will likely begin to move much higher as we move from summer into autumn – we also discuss why GLD is a total fraud: