Tag Archives: Gold

Gold & Silver: Light At The End Of The Tunnel

Gold and silver and the mining stocks still have tremendous YTD gains despite the highly manipulated take-down that has been orchestrated since early Wednesday morning.  The smash has been executed entirely in the paper derivatives in London and NYC.   De rigeur for the Central Banks.

Eric Dubin discusses why we’ve probably seen the last of the downward manipulative pressure on gold and silver:  Gold and Silver Decline Is Fading, Dow Rolling Over  and Rory Hall published an article on Trump that accompanies the precious metals analysis and our Shadow of Truth episode to be released later today:  The Trump Trojan Horse

I moved checking account cash into my Bitgold account on Saturday, Sunday evening and this morning.  I shorted Capital One at the open today and added to my First Majestic calls. At least I put my money where my mouth is, unlike most of the alternative fear porn promoters…

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:

The Stock Market Is A Weapon Of Massive Wealth Destruction

The discussion about p/e ratios and other valuation ratios derived from Company-issued GAAP accounting financials is idiotic.  The GAAP accounting allowances have been liberalized beyond a Bernie Sanders wet dream over the last 20 years.   The p/e ratio at the peak of the tech bubble is completely different from the p/e ratio at the top of the 2007 stock bubble which is completely different then the p/e ratio now.

If 1999’s or 2007 GAAP standards were applied to today’s earnings, the P/E ratio on the S&P 500 would be at least as high as 65 p/e ratio registered in 2007.   By several other metrics, most notably market cap/sales ratio, the current stock market is by far the most overvalued in history.

And that does analysis does not incorporate any adjustments for the fraud component of contemporary corporate accounting.

The S&P 500 and Dow are hitting all-time highs this week.   This was triggered by the Ben Bernanke influenced Bank of Japan decision to engage in “helicopter money” activity in an attempt to stimulate economic activity.  Notwithstanding the fact that Bernanke is likely the most destructive Central Banker in history, Japan’s decision will end in destruction of its currency.  Maybe that’s what the NWO’ers are working toward achieving anyway.

Interestingly, the U.S. stock market reacted counter-intuitively to Japan’s move.  The yen and other Asian currencies plunged vs. the dollar, making U.S. manufactured exports to Japan/Asia more expensive and making Asian imports into the U.S. cheaper.   This in turn will further depress U.S. corporate revenues and earnings, which have dropped 5 quarters in a row – likely a 6th quarter when we get to see Q2 earnings reports.   To label this response by the U.S. stock markets “idiotic” is an insult to the word “idiotic.”

Beneath the glow of a stock market on fire, the U.S. economy is collapsing, especially the consumer.  I’ve detailed the decline in a key consumer spending metric, dining out, to demonstrate that middle class disposable income is shrinking quickly.  The Canadian brokerage firm, Canaccord, released a report this morning which stated that, “said the firm’s checks indicate a material decline in sales and traffic trends in casual dining restaurants was seen in June LINK.

June auto sales came in below expectations.  This is despite a new record in auto debt issuance.  The auto debt bubble is starting to look a lot like the housing mortgage bubble of 2005-2008.

The price of oil is starting to drop quickly again.  Refiners are cutting crude oil orders quickly as demand for refined products slips as another oversupply condition has accumulated:  LINK.   The Fed and the TBTF banks have been working hard to keep the price of oil propped up.  They know all too well that a big bank balance sheet disaster looms if too many junk-bond financed companies go tits up all at once.  That will happen anyway and for that we can soon expect Helicopter Money in this country.

Speaking of Helicopter Money, Cleveland Fed President, Loretta Mester, gave a speech in Australia in which she alluded the possibility of using “Helicopter Money” to stimulate economic activity.  Mester is a voting member of the FOMC. This tells us that the FOMC itself has been discussing the possibility of dropping bags of money on the population.

This reflects a Fed that is in a complete state of desperation about the collapsing economy.  $4 trillion in direct money printing plus several multiples of that amount of money injected into the system in the form of credit failed to stimulate real economic activity.  Why are they talking about even more?   Sure, housing and auto purchases using DEBT were stimulated, but that ship has sailed unless the Fed wants to give out money for down payments.

The Fed is even more desperate to keep the stock market elevated. If the stock market collapses, or just drops over 10% for an extended period of time – as in a few months – every single pension fund and insurance company in this U.S. will collapse.  It’s a simple as that.

In other words, the stock market is one big weapon of Mass Wealth Destruction.  You can protect yourself by unloading your non mining stock dollar-based “investments” and moving your money into physical gold and silver.

I am expecting a MONSTER move in the precious metals between now and the end of the year.  I will lay out an overview of my views later this week…I save details behind my analysis for subscribers to my Mining Stocks and Short Seller Journals…

 

Brexit To Catalyze Economic Collapse?

The global financial system is collapsing – not just Europe. If the Central Banks stepped away from both their observable and covert money printing, the system would collapse tomorrow. Brexit is not the catalyst and it’s not the cause. Brexit is nothing more than the cover story – the device used to deflect the public’s attention away from truth.

The truth is that the western Central Banks (let’s leave China aside for now) have created the biggest asset bubble in history. And the time has come for it to pop. It’s been a divisive, albeit brilliant, wealth confiscation mechanism.

Elijah Johnson invited me onto his Finance and Liberty podcast show to discuss Brexit, precious metals and the ongoing systemic collapse, which will be more catastrophic than the 2008 collapse financial crisis:

One of the immediate consequences of the BREXIT has been the “gating” of six UK property investment funds. Investors threw money at these funds and helped inflate a massive property bubble in the UK, similar to the one in the U.S. And now investors are trapped because the funds are unable to sell illiquid, overvalued real estate in order to meet redemptions. The same exact process will occur in the U.S. My view is that investors in mutual funds will get what they deserve because blogs like mine have been warning about this for several years now.

On another note, one of the stocks featured in my Mining Stock Journal is up over 7% today. It’s trading at a market cap that is about 10% of the potential valued of this Company’s primary gold property. It also looks like one of its strategic investors is starting to make a move to eventually acquire the entire Company. New subscribers to my Mining Stock Journal currently receive all of the back-issues when they subscribe, including the above-described company which was an early pick and is still highly undervalued. You can subscribe by clicking here: Mining Stock Journal.

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This “De-Risked” Junior Is Up 35% Since Late July

My last #1 risk/return play – Silvercrest Mines – agreed to be acquired by First Majestic earlier this summer. The takeover premium was 35%. My newest #1 risk/return play is a gold mining exploration company with a large gold deposit in both Canada and Nevada.

There are two large mining companies that are likely buyers of this company, as I discuss in my report. But aside from the possibility of an M&A transaction, the stock of this company appears poised to take-off again if we can get some cooperation from the price of gold:

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There are several reasons for this, not the least of which being that this company, in my opinion, is the potential takeover target for two large-cap gold miners, one of which is Goldcorp.  

This stock has also significantly outperformed the S&P 500 since the end of July:

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You can access my in-depth report on the stock  which I explain in detail why this Company’s stock is significantly undervalued and why it has a “takeover target” on its back by clicking on the pic below or this link:   De-Risked Junior Mining Stock Report.

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22% Of Austria’s Gold At The Bank Of England Is Missing

My colleague Rory Hall of The Daily Coin has posted an article sent to him by Peter Boehringer, who is leading the effort to force the German Goverment to repatriate all of its gold held by the Fed, the Bank of England and the Bank of France.   In the article, Boehringer presents the findings of an audit conducted by the Austrian Federal Court which states that 22% of Austria’s national gold held at the Bank of England is missing.

Essentially what the text presented by Petern Boehringer says is that a report published by the Austrian Federal Court (“OBRH”) states that at least 22% of Austia’s gold which the Austrian Central Bank – “Oesterreichische Nationalbank” (“OeNB”) – has been “safekept” at the Bank of England is missing. It also states that in 2009 as much as 56% was missing:

The composition of the gold holdings of the OeNB in the years 2009 to 2013 changed greatly. Thus, the proportion fell to non-physical inventory of approx. 56% in 2009 to approx. 22% in 2013

You can read the entire text of Rory’s post here:   22% of Austria’s Gold Is Missing From The Bank Of England.

This , of course, implies that the Bank of England is illegally leasing out foreign-owned gold which is being held in “safekeeping custody” at the Bank of England. No shock there to anyone who has been studying the precious metals market since GATA made the information available to the world about all of the illegal gold activities being conducted by western Central Banks in the late 1990’s.

 

This Junior Miner Was Up Over 9% Today

It is back to break-even from when I first recommended it and has outperformed the sector by significant about (28%) – it’s also up 6.5% from when I posted the original update last week:

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I updated the report from June and explain why I think this stock is outperforming and has the potential for significant upside over the next 12 months:   Junior Miner Outperforming The Sector.
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This Junior Mining Stock Is Outperforming The Sector – Update

This stock is green again today – with the mining stocks getting hit hard by the hedge funds/banks…

Since I posted this two days ago, the stock is up over 5% – I added a technical report which gives advice on accumulating this stock from DenaliGuide’s Summit subscription area.  You can access the updated report here:  Junior Miner Outperforming The Sector.  I explain why this stock can at least double in the next year.

I originally published a report on this Company in early June.  Since then, here is how it has performed vs. gold and the sector (click to enlarge):

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I have updated this report to reflect recent developments and I offer an explanation for why this stock has been outperforming the sector. You can access this report here:  Junior Mining Stock Report.

I know the management was in China late last spring meeting with several of the largest Chinese mining companies.  I believe the Company is engaged in very prelimary discussions about selling one of its huge copper projects to one of China’s largest mining conglomerates.   I’m pretty certain that’s why this Company’s stock has held up well since the takedown of the sector began in mid-July.

Even on its own, separate and apart from the possibility of any kind of M&A event, this stock is significantly undervalued.   It is currently generating royalty revenue from a big gold mine in Nevada.  That mine is going to be operating an expansion project in late 2015. This expansion will increase the Company’s royalty stream.

Furthermore, this Company has a massive prospect/project portfolio, a handbook of which is attached to my report.  As the price of gold and silver recover and move higher again, which will happen sooner or later, I believe this stock can provide close to a double in the next twelve months and a triple over two years.  That’s assuming the metals don’t go parbolic…(click on pic to access this report):

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Black Swan Sighting: Sub-$50 Oil Prices Seen In Bakken Shale Region

I opined the other day that perhaps the crashing price of oil would be the “black swan” that no one saw coming.  Bloomberg is now reporting that Bakken region well-head oil is being sold for under $50:  Sub-$50 Oil Surfaces In North Dakota.   Too be sure, shale-derived oil sells at a discount to standard West Texas Crude for a few reasons.  But the shale-oil model rests on $100 oil.

Wall Street has pump and dumped the shale oil/fracking industry onto the public in a major way.  Of course, now that the Justice Department new enforcement policy – spearheaded by Obama and his corrupted clan of Covington Burling attorneys (see Eric Holder’s resume) – is that Wall Street is too big to prosecute, we’ll never know the true degree of the fraud-laced hot air pumped into the oil shale bubble.

But rest assured, your pension funds and IRAs will suffer the consequences, as semi-retarded institutional money managers herded investor money into these deals.   The fall-out from this will resemble the collapse of the mortgage/housing bubble.  But this time the big Wall Street banks are protected – for now – by the $2.5 trillion in cash (excess reserves) pumped into their balance sheets by Helicopter Ben and Grandma Yellen.

Most of the oil shale/fracking stocks that went  public over the past few years have come crashing down – even harder than junior mining companies.  The difference between the two sectors:  gold is real money, shale oil is fool’s gold.   Gold mining stocks will do a moonshot once the Fed loses it’s ability to suppress the price of real with gold with paper gold.  If you have any exposure in your investment portfolios to oil shale/fracking – any exposure whatsoever – get out now before it all goes to zero.