Tag Archives: Silver Doctors

Is The Fed On The Verge Of Losing Control?

After hitting an all-time low of 8.84 three weeks ago, the VIX more than doubled at one point this past week, closing up 55% for the week.  The attributed cause, those far from the primary reason, was the childish verbal skirmish between North Korea and Trump.  The cat-fight bordered on the traditional playground, “my dad is stronger than your dad” duel.

From the U.S. propagandists’ perspective the show itself was a great device to deflect the public’s attention from the collapsing U.S. financial and political system, the process of which will get a boost from the upcoming political war over the Treasury debt ceiling (remember that?).

Silver Doctor’s invited me to join Eric Dubin and Elijah Johnson to discuss last week’s action in the stock and precious metals markets and why the stock market may be on the verge of a historic sell-off.

The Mining Stock Journal and the Short Seller’s Journal are designed to offer a low-cost, high-quality stock and financial markets research tool help you take advantage of the historically undervalued precious metals sector and greatest asset bubble in history. Click on either image below to find out what each has to offer:

Dave, just a moment for some feed back. I just placed an order for 1oz gold eagles thx to my profits off your Tesla and BBBY short-sell ideas, thx as always. – subscriber feedback

This Feels Like the Action in 2008 Right Before the Collapse

Doc asked me last minute to fill-in for Eric Dubin, who’s M.I.A. somewhere on the shoreline of southern France, on Silver Doctor’s Metals and Markets weekly podcast. Among other topics we discussed why the current trading action in the precious metals paper market feels very similar to trading in the spring/summer of 2008 – ahead of the great financial collapse crisis and why the Fed/bullion banks are making it obvious that they seek  to scare investors away from buying precious metals with their “shock and awe” price-takedowns.

But one big difference between now and 2008 is that these “zip-line” vertical drops in the paper are being met with aggressive buying from the eastern hemisphere physical buyers, thereby limiting the size, intensity and duration of the price-hits.

As of the latest COT report release Friday which details the constituent trader positions through last Tuesday, the trader positions are moving toward a highly bullish set-up for gold and silver. In silver, the hedge funds are now net short silver futures and the swap-dealer segment of the bullion bank positioning is net long. In gold, the hedge funds have aggressively reduced their net long position and the swap dealers are long to a relatively large degree. Historically, this position shift has preceded major bottoms.

In the latest Mining Stock Journal, I present a silver producer who’s stock that was ruthlessly taken recently. I review the details in-depth, including my conversation with the CEO, and discuss why this is an opportunity to buy into a major producing company at irrationally low price level based on the facts of the situation. I also lay-out the call options I put into the fund I manage in large quantities to bet that my assessment has good probability of being correct. You can find out more about subscribing here:   Mining Stock Journal info.

After subscribing to Brent Cook for 3 months, I was underwhelmed.  Resubscribed to you a few weeks back and sure am glad I did so. You are one the few straight shooters still out there. Keep up the great work. I think we are right on the cusp of a serious market break, thus the war drums.  – subscriber “Chris

Forget GDXJ – Follow The Real Money Into Gold, Silver And Juniors

Silver Doctors / The News Doctors invited me onto their weekly SD Bullion Metals and Markets show to discuss why both the technicals and fundamentals are setting up for an unexpected rally into the summer in gold, silver and the mining shares, specifically the juniors.

Subsequent to our recording, the weekly Commitment of Traders report released Friday showed that the bullion banks continue to cover their net short positions in both gold and silver rather aggressively and the hedge funds are unloading long positions and piling into the short side.  Historically, this has been a set-up for big moves higher in the sector.  The hedge funds chase momentum and they are almost never right in the precious metals sector.  When they pile into short positions, like they are now, it’s always a valid contrarian indicator.  We also discuss why the “summer doldrums” in the precious metals sector is no longer a valid seasonal play.

Another contrarian indicator is the negative sentiment connected to the GDXJ ETF.  Adam Hamilton wrote a non-compelling critique of GDXJ and made the assertion that GDXJ was diverting the flow of capital away from junior companies that deserve to get funding. The problem with this analysis is that retail investor buying of junior mining stocks on the secondary market is not a source of capital for junior mining companies. The secondary trading of stocks is not a source of capital for any stock, for that matter.  ETFs are a “derivative” of the secondary trading market and thus are also not a source of capital for companies.

Junior mining stocks get their capital from new share issuance or from direct investment by strategic investors.  If Hamilton bothered to call on the companies themselves rather than take quarterly filings and throw numbers into a spreadsheet as his primary tool of analysis, he would discover that many junior exploration CEO’s would tell him that they are getting a lot interest from strategic investors. Furthermore, many junior mining companies with investment-worthy stories are having no problem raising capital  through primary share-issuance, notwithstanding the recent turmoil connected to GDXJ. GDXJ is a derivative security. Derivatives are a source of fees for their issuer/sponsors, not a capital raising conduit for companies.

The Mining Stock Journal focuses on the emerging junior exploration mining companies that are seeing an elevated level of investment interest from sophisticated private investment funds and from strategic investors.  These are the stocks that offer the greatest upside-potential in the junior segment of the sector – not the larger-cap, developed companies in the GDXJ Trust.  The latest issue features a company with a potentially prolific gold property that is in negotiations with a strategic investor.  Two juniors featured in the Mining Stock Journal were acquired recently.  Looking at companies one-by-one, not en masse, is how you find the potential home run stocks.  You can learn more about investing in these opportunities here:  Mining Stock Journal information.

Here’s the download for the latest SD Bullion weekly show:  MP3 download  and here’s the podcast:

Phenomenal movement lately with one of your stock picks, Dave, and I have no doubt it’s still in the first inning of what will be a very long game. Superb. Thank you! – subscriber “Mark”

Gold And Silver: Legal Weapons Against The Deep State

  • Question:  Why do Central Banks and Governments hate gold?
  • Answer:  Because they can’t print it

“An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense – perhaps more clearly and subtly than many consistent defenders of laissez-faire – that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other.”  – Alan Greenspan, “Gold and Economic Freedom”

Just like everything else in the western financial system, the paper trading markets are leveraged beyond redemption.   The amount of paper “claims” on actual physical gold was estimated to be 100:1 in 2010.   We can assure you that ratio is much higher now.  On the Comex alone, for instance, if more than 9% of the  April open interest in gold futures were to stand for delivery – based on the currently declared 1.4 million ounces of gold reported as being “available for delivery” (registered) – the Comex would default.  The entire open interest in gold futures is 60x greater than the amount of gold available for delivery.

This is just the publicly traded paper gold derivatives.  There’s also the shady world of OTC gold derivatives.  We have no idea what kind of leverage is embedded in these contracts.  But the total notional amount of OTC “precious metals” derivatives according to the OCC’s latest quarterly report on OTC derivatives (Office of the Comptroller of the Currency) is over $28 billion.  Just to highlight the degree to which the Government goes in order to hide the facts about the gold and silver market, the OCC used to break out OTC precious metals derivatives into the categories of “gold” and “silver and other.”  Now the OCC  reports just “precious metals.”  What is it that the Government and banks are hiding?

The amount of leverage embedded in a Comex futures contract, based on the current amount of margin required, is about 25:1.  There’s no telling how much leverage is embedded in the OTC derivatives agreements.  All we know is that the disclosure requirements are becoming increasingly more opaque.

Silver futures began trading on the CBOT in 1969.   But gold futures were not around until 1974, three years after the U.S. closed the gold window, completely disconnecting the dollar from gold.   Gold futures were developed to enable the Fed and the U.S. Treasury to control the price of gold as a means of reinforcing the legitimacy of the dollar as a fiat currency used as the world’s reserve currency.

While the price of gold has been heavily manipulated since at least the 1960’s, when the U.S. was running out of enough gold to fulfill its obligations under Bretton Woods, the manipulation and “shock and awe” price attacks are used as a form of propaganda that is designed to discourage investors from converting fiat dollars into gold and silver.  It’s a powerful weapon used by the Deep State against gold and economic freedom.

In today’s episode of the Shadow of Truth we discuss the manipulation of gold and silver and how it’s used by the Deep State to increase the Government’s control over the population:

What Happens To Gold & Silver When Trump Attacks The Dollar?

Get prepared because we’re going to have the worst economic problems we’ve had in your lifetime or my lifetime. – Jim Rogers, Macro Outlook in the Trump Era – MacroVoices

Make no mistake, it’s going to get ugly at some point in 2017. Elijah Johnson at Silver Doctors invited me to discuss why I believe Trump’s policies, assuming he gets anything passed and implemented, will be phenomenal for gold. Another factor not being discounted or widely discussed is an acceleration in the rate of inflation over and above the ability of the Government’s CPI sausage grinder to mute actual price inflation in everyday consumables.

Major Silver Bounce – Can It Last?

The bullion bank gold cartel pulled out all of its stops last week in order take down the price of gold and silver. Particularly useful was selling by longs connected to fear over the week-long closure of China in observance of the Chinese New Year’s celebration (Year of the Rooster). Interestingly, last year gold was volatile during the Chinese New Year week off but traded sideways, not lower.

In addition, this upcoming week features the FOMC meeting and the January employment report. On average and in general, both of these events typically are accompanied by a take-down in the price of gold. On Friday, however, after the obligatory smashing of gold and silver associated with Comex options expiration (Thursday), gold snapped back sharply $9 from its Thursday low of $1181 and silver soared nearly 50 cents from its Thursday low.

Eric Dubin and the Doc invited me onto Silver Doctors’ weekly Metals and Markets Report to discuss the factors behind last week’s gold and silver trading activity and the reasons why gold and silver could turn in a better 2017 than 2016:

If you agree with the views in the above podcast, the Mining Stock Journal offers great junior mining stock ideas to help you take advantage of the next move higher in the precious metals sector. You subscribe using this link:   Mining Stock Journal subscription link.   As subscription includes all the back-issues and superior customer service.

Hi, i really like your mining stock newsletter. I am fairly new to the mining sector and i did start investing in last febuary pretty much at the lows  –  recent new subscriber “Thomas”

 

Buy Every Price Hit In The Metals And Miners

Eric Dubin (The News Doctors) and Doc or Silver Doctors, SD Bullion invited me on to their weekly Metals and Money Wrap last week.  We discussed signs that show the gold/silver manipulators are losing control of their ability to control prices, the record amount of paper being thrown at gold and silver on the Comex, the current seasonal “lull” in the precious metals market and the latest developments on Japan’s TOCOM futures exchange which could have a big effect on the price of gold and silver.  In short, we discussed why investors should be adding their positions on every price drop:

In fact, silver and gold were hit hard overnight last night (Sunday night, early Monday morning) and silver is now 40 cents off its low of the day and green vs its Friday close and gold is $8 dollar off its low of the day. Click on the link below to find underfollowed junior mining stock ideas with huge upside potential:

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The Precious Metals Train Is Leaving The Station – Especially Silver

The Nikkei is down 3.7% right now, the dollar index is below 93 and the U.S. seems bound and determined to start World War Three.  The U.S. is collapsing and everyone in the world knows it but the majority of the U.S. population.   Hubris rules the day in the Democratic Party as Obama is going on a farewell tour around globe to tell everyone he saved the world and Hillary Clinton feels confident enough to commit any kind of crime under the sun and get away with it.

Doc and Eric Dubin – The News Doctors – invited my onto Silver Doctor’s Weekly Metals & Markets show sponsored by SD Bullion.

“This Thing [the Comex paper short interest] Could Get OUT OF CONTROL to the  Upside Quickly!” – Dave Kranzler, Investment Research Dynamics

Click on the image to the right below to subscribe to the Mining Stock Journal

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It’s A Truth Or Dare Stock Market

Hi Dave, I purchased a box of silver eagles on SD Bullion today! I also did the 250 strike on Amazon! Great report on Amazon! I’m really excited about the coins! Thanks for the help! I feel like I have taken a big step in protecting my family!  Thanks, Jeff

I received that email yesterday from a subscriber to my Short Seller’s Journal.  He made a $7500 profit on AMZN puts that I had recommended.  He took the profits plus part of his original capital and bought a box of silver eagles from Silver Doctors (SD Bullion is the best source to buy silver eagles based on price and reliability of service – I receive no benefit from saying this but I’ve been buying silver for over 15 years and I know how to differentiate between good and bad coin dealers).  He rolled the rest of his capital from the original AMZN put trade into the January 2017 $250 puts, which could end up being a home run.

There’s a rumor floating around the market that Google is looking at buying AIG. Remember AIG?  AIG is the big insurance company that was taking insane risks in the subprime mortgage derivatives market.  It blew up in 2008 and, in the process, had technically blown up Goldman Sachs.  Ex-Goldman CEO, Henry Paulson,  was strategically inserted into the Treasury Secretary post specifically to make sure that Goldman was bailed out when this happened.

AIG was also saved by the taxpayers.  It’s businesses were reinflated by the Fed’s QE and it’s stock ran from $20 to a recent high last of $64.  Carl Icahn, the quintessential stock operator took a stake in AIG in October and had been trying to force a break-up of the company.  The stock is down over 18% since Carl announced his position in the stock.  The Google rumors started flying around about a day ago. It has to be one of the most retarded ideas I’ve seen floated in quite some time.  It reminds me of the “clicks and eyeballs” analysis to justify the bloated valuations on internet stocks back in 1999.

Carl Icahn makes mistakes.  I took other side of one of his mistakes in the late 1990’s when he decided that taking control of the badly failing Stratosphere Casino in Vegas was a good idea.  His idea failed miserably and I made a lot of money for Bankers Trust from shorting the daylights out of the Stratosphere first mortgage bonds, which ultimately were worth zero after trading as high at $110 (110% of par value).

My point here is that something not being mentioned anywhere is going with AIG’s financial stability.  The credit default swap rate on AIG bonds has mysteriously shot straight up:

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I have no idea what has the CDS market spooked. But I know from 1st-hand experience that credit markets tend to have information and “see things” well before the stock market sees it. Accounting disclosure, by design, has become catastrophically opaque in the financial sector. Anyone who has only access to the SEC-filed financial documents is seeing no more than a sliver of the truth about what is going on at AIG, or at any financial company for that matter.

Whether or not this will turn out be big mistake for Icahn remains to be seen. But anyone who is jumping on AIG because there’s a rumor that Google should buy it is ignoring the signal being broadcast by the CDS market.   Often rumors designed to juice a stock are “coincidentally” floated at a time when someone privy to inside information decides that it’s time to get out of Dodge and needs an influx of “dumb” money to buy the stock so he can exit.  The CDS market is suggesting this could be the case with AIG.  We know Icahn is dumping AAPL right now…

This is the type of analysis and insight that subscribers to my Short Seller’s Journal receive on a weekly basis. At some point I will wade knee-deep into AIG’s financials and see if I can figure out why the CDS market is so spooked because I know the original factors which sunk AIG the first time around have likely reappeared, in a different form, and AIG could well be an epic short opportunity.

Silver Will Be The Trade Of The Decade At It’s Current Price

I’m starting to warm up to the idea that the fraudulent silver price fix on the LBMA a couple weeks ago marked the final “capitulation” of the nearly 5-year price pullback in silver and 4+ year pullback in gold.  We have yet to hear a satisfactory explanation from the LBMA for the exceedingly odd price behavior of silver seconds before the  a.m. London silver price was set on January 28th.

I believe that event marked the “last gasp” effort by the highly corrupt LBMA bullion banks to shakedown the physical silver market in order to get their hands on as much physical silver as possible at as cheap of a price as possible.  I believe, not uniquely by the way, that the synthetic short interest (paper derivatives shorts) in silver is even worse than for gold, which we know is at least 100:1.

Big banks hate losing money and will do anything – legal or illegal – to avoid losing money or to minimize losses.  I saw this first-hand and peripherally participated in activities designed to minimize losses when I worked on Wall Street in the 1990’s.  Everything is worse now in that regard and the people who are supposed to enforce the laws and oversee trading activities at these banks are now in on the corruption.

With that as the preface, I believe silver is beaten down and cheap relative to gold and any other investment alternatives and I think buying silver now – at it’s current price – will prove to be the trade of the decade.

Right now gold is outperforming silver on up-days BUT silver outperforms gold when the metals sell off.  Typically gold will outperform silver in the early stages of a big bull market move.  Gold current outperformance vs. silver is reflected in retail activity, as noted by Doc at Silver Doctors and some other bullion dealers to whom I spoken about the market recently, in which sales volume of gold coins is outpacing volume in silver.

But this will soon crossover as gold appreciates in price and waves of new buyers flock to silver rather gold because it feels better to buy more ounces of silver than gold.  Silver is poor man’s gold and always has been for 1000’s of years.  When this dynamic kicks in, the gold/silver ratio will drop quickly from its current 78x.   I suspect before this bull market is over, the GSR will drop well below 20, if not 10.

We saw this in 2011, when silver began to go parabolic before the western Central Banks had seen enough and began to throw 100’s of tonnes of paper gold and silver at the market in order to not only prevent the metals from moving higher but to beat down the price on gold and silver to their current levels.  In the bull move from late 2008 to April 2011, the GSR dropped from 100 to 32.

Eric Dubin and “Doc” hosted me for their weekly metals and markets podcast last week.   We discuss a range of topics but focus on the precious metals.  Note:  I mention a new emerging junior exploration silver miner that I featured in a recent issue of my Short Seller’s Journal.  Anyone who subscribes to the SSJ and mentions that they heard about it on the Silver Doctors podcast will receive a copy of that back-issue when they subscribe: