Tag Archives: silver

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”

Silver – The Only Commodity 66% Cheaper Than 37 Years Ago

Silver has gone from being the cartel’s kryptonite to being its LHC, or Large Hadron Collider. There are a lot of theories on what is going on with silver but the reality will probably be something even more fantastic. I keep getting back to lumber by way of comparison. The OI in silver is 55 times higher than in lumber, yet the global physical lumber market by dollar volume is actually higher. – quote from LeMetropole Cafe’s “Midas” Report

Those of us who have studied and traded silver for a long time (16 years in my case), have concluded that the Western Central Banks have painted themselves into a corner with their multi-decade effort to control the price of silver. Central Banks ran out of silver to unload on the market a long time ago. As such, they’ve had to resort to using paper derivative silver in the form of Comex futures, LBMA forward and OTC derivatives in their effort to cap the price of silver. In the last year, the amount of paper silver sold short against the available supply physical silver has grown into an astronomical number. At this point the banks can only pray that less than 1% of the longs each delivery period will continue to settle the contracts in cash…

“As a fiduciary, to the extent that you own gold and are going to own it a long time, it is not a trade….in the COMEX warehouse they had $80 Billion of open interest, and $2.7 Billion of deliverables….thats an easy one, you go get it.”  -Kyle Bass

Kyle: “What if 4% of the people want delivery?”
COMEX Delivery Manager: “Oh Kyle that never happens. We rarely ever get a 1% delivery.
Kyle: “Well, what if it does happen?”
COMEX Delivery Manager: “Oh, well price will solve everything.”
Kyle: “I said thanks, give me the gold.”

Here’s the link to that interview with Kyle Bass: “I’ll Take My Gold, Please”

The Daily Coin chatted with GATA’s Bill “Midas” Murphy about the current degree of manipulation in the silver market. The banking cartel is trapped, in a sense. The only resolution of this dilemma is a much higher price of silver – the free market solution – or war:

The CME Extends The Paper Fraud To The Coin Market

On April 11th, the CME and England’s Royal Mint announced that they were testing a blockchain-based platform for trading gold.  The product to be traded is a new crypto-coin called, Royal Mint Gold (“RMG”).  The token will be issued by the Royal Mint and will represent the digitized version of 1 gram of gold.   The gold will be stored in the Royal Mint’s vaults.

This news announcement was surprisingly overlooked by the alternative media, except for Rory Hall at his Daily Coin website:  CryptoGold and Thieving Bankers.  However, the fact that the CME is involved should have set off the smoke alarms throughout at least the segment of the alternative that seeks to shine the light of truth on precious metals trading and ownership.   This is because the concept of a “new alternative way to trade gold” is an extension of the “fractional gold and silver bullion market” that is driven by the paper derivative precious metals products traded on the Comex and the LBMA.

The truth is that this new “blockchain-based” technology is nothing more than a mechanism to divert investor money away from taking delivery of actual physical gold and silver in the form of Royal Mint bullion coins and LBMA bars, thereby removing the availability of physical gold and silver that can be used for hypothecation.  Furthermore, the new  product is an extension of the institutional-level fractional bullion system that utilizes Comex/LBMA paper gold and silver contracts in order to fabricate the illusion that the buyers of those contracts have purchased legal ownership the underlying bullion bars. Below is an excerpt from the Royal Mint’s website which promotes the new concept:

RMG®, an innovative new product launching in 2017, will provide the investment performance of the London Gold Market with the transparency of an exchange-traded security. RMG holders will negate counterparty risk, by having direct ownership of physical gold bullion where each RMG represents ownership and full title to 1g of physical gold bullion held in the form of fully allocated, LBMA Good Delivery Bars within The Royal Mint’s vault.

We believe these features, coupled with the guarantee of zero ongoing annual management fees and free storage, represents one of the best and cost-effective ways to invest in physical gold today. At any time RMG can be redeemed for physical gold bars and coins produced by The Royal Mint, with physical delivery.

The basic tenet of the RMG is that “counter-party” risk is eliminated because the buyers are purchasing direct ownership of gold that is stored in the Royal Mint’s vault.   However, the idea of custodial possession – where the owner trusts the safe-keeping of an asset with a third party – is in and of itself a primary source of counter-party risk.   The first law of ownership of gold is that you do not fully “own” it until it is in your personal possession. Just ask the German Government.

The second myth in that statement above by the Royal Mint is the gold is held in the form of fully allocated LBMA Good Delivery Bars (in the Mint’s vault).  This is GLD’s holy grail claim as well.  The problem, again, is accountability.  Until gold custodian’s are willing undergo a fully independent 3rd party audit at any time and without advance notice, it’s silly to assume that these custodians possess full, legal title to the gold they are reporting to be in their vaults.   The poster-child example is the U.S. Federal Reserve, which has spent millions to avoid the prospect of a legally enforced audit of its gold vaults by a third party, fully independent auditor.

The Shadow of Truth discusses this new mechanism of deceit in today’s podcast and we explain why it’s riddled with counter-party risk and the potential for fraud on the same scale as Comex and LBMA gold and silver derivative products.

Massive Attacks On Gold Reek Of Desperation

The paper silver open interest on the Comex is at all-time highs.  The previous all-time high was 224k contracts when the price of silver was pushing $50 in 2011.  The current paper silver open interest is 229k contracts with the price of silver at $18.  At least the degree of fake silver open interest in silver was more appropriate to the price level at which silver was trading in 2011.

Having said that, the current paper silver open interest is entirely inappropriate relative to the amount of silver reported to be held in Comex silver vaults.  229 thousand silver contracts translates into 1.15 billion ozs of paper silver.  That number represents  about 37% more actual silver ounces produced by global by mining companies in one year.  Compare that paper representation of silver to the actual 193 million ozs of silver reported to be held in Comex vaults, primarily “held” by JP Morgan which is reporting nearly 102 million ozs of silver in its vault.

Notwithstanding whether or not those 101 million ozs of silver are actually sitting physically in JP Morgan’s Comex-designated custodial vault (and much of it has likely been hypothecated), the amount of paper silver issued primarily by Comex bullion banks is nearly 6x the total amount of silver reported to be held in Comex vaults.

But it gets worse.  The amount of silver that has been designated as available for delivery, or “registered silver,” is only 30 million ozs.  In other words, the amount of paper silver issued by the Comex is 38x greater than the amount of silver made available to be delivered to the holders of those silver contracts.

The point here is that the Comex is likely the world’s most fraudulent market. In fact, It’s inappropriate to refer to the Comex as a “market.”  The Comex is nothing but a mechanism by which the Fed, in conjunction with the Treasury’s Exchange Stabilization Fund and the Comex bullion banks, exerts control over the price of silver.

The degree to which the Fed et al has to exert fraud in order to contain the price of silver is reflected by the absurd imbalance between paper silver contracts issued in relation to the amount of the underlying silver available for delivery.   In any other commodity sector this situation would be labeled “criminal.” With silver and gold it’s labeled, “nothing to see here, move along.”

As with silver, the trading patterns in gold reflect a high degree of desperation by the bullion banks to contain the price and demand of physical gold.  Interestingly, right now most of the blatant manipulation appears to be connected to the London p.m. gold fix activity on the LBMA.  We believe it’s evidence of a growing shortage of physical gold available to deliver into India, China and other gold-buying countries.   We explain this view in detail in today’s Shadow of Truth episode:

The next issue of the Mining Stock Journal, released this evening to subscribers, will have new junior explorer idea with 5-10x upside potential. It will also have an alternative explanation to the JNUG suspension of new unit issuance and why this could be very bullish for the sector. You can find out more about subscribing to the MSJ here:   Mining Stock Journal Subscription Info.

Animal Spirits Are Percolating In The Gold Market

The use of the term “animal spirits” is most commonly attributed to John Maynard Keynes. But it originates from the Latin term, “spiritus animales” in reference to the spirit that drives human thought, feeling and action. We saw animal spirits at work in gold and silver on Tuesday this past week when the Dow dropped 237 points and gold quickly popped up $16. Silver jumped 72 cents, much to Wall Street’s surprise, on March 16th after the FOMC issued its latest monetary policy statement despite an assurance that the Fed would raise rates three more times this year.

At some point the paper control of the gold market is going to fall prey to animal spirits. I think the reaction of the metals after the FOMC policy release and when the Dow plunged are evidence that “animal spirits” are percolating in the precious metals market. (Excerpt from yesterday’s issue of the Mining Stock Journal)

In the latest issue of the Mining Stock Journal I review a junior mining stock that was heavily promoted last summer ahead of a big issuance of stock. Many of you may own it thinking you sitting on junior with close to 20 million ounces of gold in the ground. What I found when I examined the background of management and quality of the alleged mineralization on the company’s properties, with no plans for advancing the properties, might shock you. This stock is down 50% from its highs last summer and insiders were dumping shares in September before the stock sold off. This is a stock you want to avoid and you can find out more about it by subscribing:  Mining Stock Journal subscription info.

When I asked a colleague and subscriber who invests in junior mining stocks and participates in select financings if he had an opinion on the above-mentioned company, this was his partial response: “No, I have never looked at it principally because of the people behind it, who are well-known to front run their own subscribers.”

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:

Gold & Silver: Buy The Paper Price Attacks

These premiums [the ex-duty import prices being paid for legal kilo bar imports in India] are actually quite remarkable as the need to import kilo bars only arises if Indian demand is not satisfied by Dore imports (which had a duty advantage of $15.52/oz this afternoon) and smuggled gold. Reports of apprehensions at Indian airports are continuing to appear, indicating that smuggling has in fact revived. – excerpt from John Brimelow’s Gold Jottings Report (contact John at brimelowgoldjottings@gmail.com to learn more about his service)

The price of gold & silver have had a big move since mid-December, despite the flood of “fake news” connected to the temporary disruption of gold imports into India precipitated by Modi’s now-failed attempt to limit the ability of Indians to buy physical gold and despite the plethora of fake news about the quantity of gold flowing into China both before and after after the week-long Chinese New Year observance.

Brimelow goes on to assert in one of his Monday updates that, “Viewed from a US-centric and technical perspective, gold’s friends have something to worry about. However the Asian buying is about as strong as it ever usually gets and for that reason the Bears’ prospects are probably limited.”  Note, the “technical perspective” indirectly references that use of paper gold by the western bullion banks in their attempt to control the global price of gold.

As an example of the price-control mechanism implemented in the western paper market, you’ll note that after a surprise bounce in gold on Friday, likely stimulated by paper short-covering on the Comex, was met with an attack after the Monday a.m. LBMA gold price “fix” and again right after the Comex floor paper gold trading commences:

These are typical times during the day, when the physical gold buying markets in the east are closed for the day and the western paper market manipulators take control of global gold trading via LMBA forwards and Comex futures and OTC derivatives.

Just as notable about Friday’s move higher in gold during NY trading hours is that fact that the price was moving in correlation with a move higher in both the dollar index and the U.S. stock market.  Often, there is an inverse correlation between gold and the USDX/Dow/SPX.

There’s is an “invisible hand” in the market pushing the prices of gold and silver higher in defiance of the attempted price control schemes being exerted in London and New York. This silent operator is without the pressure being exerted in the physical market.

This week I’m sure will prove to be a bit of a price roller-coaster, as the semi-annual “Humphrey-Hawkins” (as it used to be called) Fed Chairman testimony on monetary policy and the economy is a time used by the western CB’s and bullion banks to control the price of gold using paper. After all, they can’t have the price of gold moving higher when the Fed’s El Hefe is extolling the virtues of the fiat currency and fractional banking system in front of Congress and the world, which begins today.

The point here is that it’s my view that the next longer term trend move in gold is higher, which means that price attacks should be used as buying opportunities, both for the metal and the mining shares.  In fact, the mining shares were quite stubborn about going lower when gold was being hit hard in New York after being hit hard in London.  Typically this is a signal to the market that prices in the precious metals sector are going higher.

 

Trump Will Be Great For Gold And Silver (If Nothing Else)

I love days like today when both gold and the dollar are green. Historically, some of the best moves in gold occur as gold and the dollar move up together for short period of time. Today, of course, is just one day. And there’s no question that the Trump Government will need a significantly lower dollar in order to stimulate U.S. industry, assuming the latter is at all possible anymore.

On the other hand, if somehow Trump manages to get Congress to pass his border control and excise tax proposals, consumer prices on the products being imported at prices much lower than the same products can be produced domestically will soar. Let’s not forget, gold loves inflation.

In terms of the fundamentals supporting gold, the Fed’s unanimous decision to leave rates unchanged confirms my suspicion that the likely next move sometime later this year will be some sort of loosening of monetary policy. Consumer liquidity continues to dry up. This is especially evident in the retail sales reports plus the big drop reported for January auto sales.

In addition, various price inflation reports are starting to emerge. On Feb 1st, Bloomberg reported that the Citigroup Inflation Surprise Index, which is a global index that measures price surprises relative to market expectations, is at its highest in more than five years. Even the Government-produced inflation reports in the U.S. have been coming in “hotter” than expected. This is a difficult feat given all of the hedonic adjustments plus other various gimmicks the Government statisticians inflict on the data in order to mute the ability of the index to measure true inflation (note: the manipulation of the CPI was implemented by the Arthur Burns-led Federal Reserve shortly after Nixon closed the gold window – they knew what was coming, which was massive money supply expansion and the resulting price inflation).

In other words, even the Government will be unable to hide fully the effect that trillions of QE and credit expansion is having on consumer prices. This will act as a turbo-booster on the price of gold when this reality eventually grips the capital markets.

In the physical markets, despite China’s week-long closure to observe the Chinese New Year (Year of the Rooster), the eastern hemisphere markets continue to “consume” a lot of physical gold. Premiums all week in India have been high enough to reflect moderate to heavy legal kilo bar importation. Dore bar imports have been flowing steadily for several weeks.  Additionally, Vietnamese were paying $135 over world spot gold, indicating voracious demand.

The latest official Swiss gold export report for December shows that the Swiss exported 154 tonnes of gold to mainland China in December. This was almost four times higher than exports to Hong Kong and more than three times the amount of gold shipped from from HK into China’s mainland. This would be the gold that enters China via Beijing and Shanghai that goes unaccounted for by the World Gold Council and the GFMS data-keepers. Additionally, East and South Asian countries accounted for 87% of Swiss gold exports in December.

Thus, contrary to the popular mainstream financial fake news, China’s appetite for gold remains voracious. Needless to say, all the “stars are aligning” for what could be a spectacular year for the precious metals and mining stocks. Not the least of which is the unpredictability of, and the undefinable nature of, the Trump presidency.

Most of the above commentary was an excerpt from the February 2nd Mining Stock Journal.  In that issue I reviewed five previous names presented, of which three are significantly higher from when the MSJ presented the idea.  Of the other two, one is down about the same amount as the sector since August and the other one is a silver exploration company that is percolating on top of what may turn out to be one of the larger silver deposits in the world in addition to containing large quantities of zinc, lead and gold. I also mentioned an emerging producer that may be acquired before summer.

You can subscribe to the MSJ here:  Mining Stock Journal.  The publication is a bi-weekly newsletter with unique insight on the gold and silver market that also focuses on undervalued junior exploration and emerging producer ideas.  New subscribers, for now, will receive all of the back-issues.

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.  –  recent email from a subscriber to the Mining Stock and Short Seller Journals

Gold and Monetary Populism: The Oligarchs’ Mortal Enemies – The Peoples’ Salvation

Desperation is setting in. The blatant attacks on gold are occurring almost exclusively during the Comex floor-trading hours now. Every night gold pushes higher as Asia’s appetite is seemingly voracious. The two most systemically dangerous banks right now, it was revealed according to the IMF, are JP Morgan and Citibank. I’m sure part of the smash is in response to that. All this action between gold and the dollar means is that the counter-force reaction to what the Fed is doing is going to be even more forceful. They already can’t control the dollar and the strong dollar is going to decimate Q4 revenues and earnings. Give it 6 months and I bet they start talking about the need to print more money. Gold will sniff that out well ahead of time.

Stewart Dougherty has provided another guest post for IRD. I think this is his best commentary yet.

The people hold in their hands the key that can unlock the door to financial independence and steadily increasing wealth, but they do not realize it. An obvious truth, being clear, is the hardest thing for people to see. They look right through it, as though it were not there, even though it is. Once they do see a truth, they never overlook it again. It becomes an invaluable fixture of their thinking.

Like the adult elephant taught from youth that the light chain around its leg cannot be broken, the people believe that the strangulating government currency chain around their necks is unbreakable. The fact is that if the grown elephant pressures the chain, it will snap, setting him free. The people, too, have the power to break the currency chain that chokes them and reclaim their financial freedom from the plunderers who have usurped it, if only they would study, understand and act.

The key to which we refer is private money, the most important forms of which are physical gold and silver. Cash is another, albeit greatly inferior form, in that currencies (not technically money) are controlled by their issuers. Global Deep State efforts to restrict or even eliminate the people’s ability to possess private money are now rampant, and running into resistance. Denied the ability to possess private money in the form and quantity they desire, the people will be deprived of financial freedom, and in the end, given that freedom is indivisible, any freedom at all.

Given the oligarchs’ clear, unmistakable intention to deprive the citizens of financial freedom, the people now have not just a financial, but a moral obligation to redenominate a portion of their liquid assets into private money. The people need to tell the Oligarchy in clear terms that they have gone too far, and will not be going any farther.

There are 7,000,000,000,000 people on this earth. There are fewer than 5,300,000,000 troy ounces of gold. If every person were allotted an equal share, each could possess 0.76 troy ounces of gold. In that gold can only be mined, and not printed by Deep State oligarchs, this sum is projected to remain consistent going forward, and may even shrink if mining cannot keep up with population growth.

The actual ownership of gold is vastly skewed. Fewer than one billion troy ounces of physical gold worldwide are thought to be potentially available to the market, in current circumstances. This is not gold actually offered at this time, but that could be offered to the market if the selling climate were opportune and owners decided to sell. The other 4,300,000,000 ounces are believed to be immobile, at least for now, and include government reserves, non-trading private reserves, and forms of jewelry that are highly unlikely to be sold unless people’s personal or financial circumstances significantly change. People do not sell their wedding rings or other jewelry having deep sentimental value unless there is a pressing reason to do so.

This means that there are perhaps 1,000,000,000 ounces of gold available to 7,000,000,000 people. Put another way, 1,000,000,000 ounces are available to what is estimated to be well more than $200,000,000,000,000.00 in net private wealth. Which translates into 0.143 available ounces per person; and total available gold amounting to only 0.65% of total global private wealth, at a price of $1,300 per ounce. If a low single-digit percentage of the people or the private wealth decided to mobilize into gold, where would the gold come from? The answer is: from radically higher prices, because that is the only place it can come from. We wonder, what is it about these numbers that the people cannot see? The conclusion is: the obvious, which is the hardest thing for them to see. Gold is so rare, and demand for it so potentially overwhelming that it is literally ridiculous it sells at today’s price. Yes, the “Great Oz” of price manipulation and corruption continues to hold sway for now, but Toto is sniffing him out and zeroing in. He is going to find the curtain and pull it back, and then all hell is going to break loose, because the current price of gold is a colossal fraud and lie. An historic price reset is inevitable.

At its core, gold’s price is not a Deep State oligarchy manipulation problem, even though we know for a fact that the oligarchs totally dominate and rig the precious metals market to manufacture fraudulent profits for themselves while advancing a corrupt, statist narrative to assist their government puppets.

Gold’s absurd price is, in fact, a marketing problem. The gold mining industry has been singularly incompetent when it comes to marketing its precious product. The gold industry has not produced one original marketing idea in 250 years, and gold’s current price proves it. Once people’s eyes are opened to gold’s unparalleled virtues as private, personal money, everything is going to change, most notably, its price, which is going to surge out of fundamental necessity.

Brexit and the Trump victory reflect a rising populist tide in the west. The people are saying that they want to take back their countries and their lives. We believe that the same type of popular anger and dissatisfaction that has produced the sharp and ongoing political reset in the west is likely to erupt next in the field of currency and money. The populist movement was fomented in the first place by people who had become disgusted by constant financial regression and the real prospect of and trajectory toward eventual impoverishment. Their sentiments have set the stage for a populist monetary revolution. A determined segment of the people, those who still have liquid assets, is going to figure out that now is an excellent time for them to take back their money. They are going to say it’s time to “drain the monetary swamp” of its Wall Street swindlers and central bank fakers, escape the financial tyranny of zero interest rates, and return to ancient money that is rare, possesses intrinsic value, is beautiful and is virtually certain to appreciate.

For the oligarchs, it is one thing if the people want to take back their countries; it is an entirely different, and totally unacceptable thing if they want to take back their money. The control of national currencies, money supplies and interest rates has been the Deep State oligarchs’ secret preserve and heavily protected “No Go” zone for decades. Their domination of this preserve has enabled them to mint phenomenal amounts of, guaranteed, risk-free profits; profits not measured in the millions or billions, but in the trillions of dollars. To the oligarchs, monetary populism means war. Which now rages, even though most people don’t yet know it.

To combat monetary populism, the oligarchs have launched a War on Private Savings. To put the monetary genie back in the bottle, they need to herd the people’s liquid funds into institutions they control. Now that they can clearly see the whites of the people’s eyes, as the populist sentiment spreads into finance, they have put their actions into overdrive. They need to defeat monetary populism before it becomes a “movement,” which it has every potential of doing.

The War on Private Savings is the largest conflict ever declared in the history of mankind. It is different from all other wars because: it is being fought against humanity, not a national or political enemy; it is global; it is being waged with trickeries, lies, schemes, propaganda, prohibitions and demonetizations, not military weapons; it is synchronized; it targets personal, after-tax savings, not a country’s natural resources, geography, government or political leaders; it has been declared by a non-elected Oligarchy; it is about contempt for freedom; and its ultimate objective is about one thing and one thing only: the conquest of other people’s money.

The War on Private Savings, while massive in itself, is actually part of a larger conflict, the War on Human Freedom. While human freedom has been under attack in various ways since the dawn of mankind, it has never faced such a concerted, coordinated, massively well-funded attack as the one now declared against it by the Deep State oligarchs. If the initiators of the War on Private Savings win, the real casualty will be human freedom, because there can be no human freedom if there is no financial liberty. The stakes of this war for the people are impossible to overstate.

India has been turned into a 1.3 billion person human laboratory for the advanced research, development and testing of the weapons to be used in the full-scale, global War on Private Savings. The weapons that prove successful in India will then be used on other people in other nations throughout the world. What happens in India is a global prologue of what is yet to come.

The term “War on Cash” is a deliberately misleading misnomer. It is merely one act in a much more sweeping drama. There is no war on cash; there is an attack on cash. The attack on cash is just one of the many battles within the much larger War on Private Savings. We can now observe a rapidly intensifying, synchronized, global effort to demonize, control and eliminate cash in Australia; Europe, especially the Nordic countries; the United States; India; and virtually everywhere in between. The War on Private Savings is strategic; cash controls are tactical. The oligarchs want you to focus on the tactic, not the full strategy. You don’t want to fall for that.

In addition to the attack on cash, other tactics currently being used in and planned for the War on Private Savings include: 1) Low and negative interest rates that are less than the rate of inflation and therefore rob savers; 2) Civil asset forfeitures; 3) The explosion of government regulations accompanied by confiscatory fines; 4) Across the board tax increases; 5) The creation of entirely new tax categories (e.g., Obamacare; carbon taxes) that pile onto but never streamline or reduce existing tax structures; 6) The intense manipulation of precious metals prices, resulting in artificially low prices that lessen savings; 7) Endemic corruption resulting in increased consumer costs and national debt that must be borne by the people (e.g., Medicare; Medicaid; Military (for example, the $6 Trillion in unaccounted-for Army spending, alone, all of which is now constitutes additional national debt); 8) Massive, structural government deficits that heap even more non-repayable debt upon the people; 8) Open borders, which spike the cost and deficits of government, which are similarly borne by the people and nationally impoverishing; 9) Deliberately engineered inflation that devalues national currencies and savings; 10) Outright demonetizations and forced conversions of currencies, with massive attendant costs, a new weapon that has been rolled out in India; to name just a few examples of the existing and emerging weapons being used against the people in the War on Private Savings.

To sum up the situation, we believe that: 1) Populism is spreading into the Forbidden Zone of currency and money; 2) To prevent Monetary Populism from becoming a “movement” that they cannot contain, the Deep State Oligarchs have declared a War on Private Savings, as part of a larger conflict, a War on Human Liberty; 3) Precious metals, particularly gold, are an extraordinarily powerful weapon in the hands of the people, and one that can defeat the Oligarchs’ oppressive, anti-humanitarian campaign, but only if the people take up the weapon en masse, and soon; 4) The Deep State oligarchs are fully aware of the threat posed to them by the weapon of private money wielded by the people, which is why they are attacking; 5) If, through simple messaging, the people’s eyes are opened to the unique capability of precious metals to restore to them the financial stability, freedom and dignity that are rightfully theirs, no less than their other constitutionally guaranteed rights, they will embrace this obvious solution in large numbers, ensuring their victory. In the process, monetary populism will be transformed from a sentiment into a powerful, invincible movement.

In our next article, we will discuss the simple ways by which the managements of publicly traded precious metals mining companies can ignite demand for and price escalation of their product, as is required by their fiduciary obligation to shareholders.

Stewart Dougherty
November 22, 2106

Stewart Dougherty is the developer of a principles-based forecasting methodology named Inferential Analytics. The unique IA model assesses monetary, fiscal, financial, market, social, political, empirical and anecdotal factors to get a glimpse of tomorrow, today. He has 35 years’ worth of management, corporate strategy and business development achievement. He is a graduate of Tufts University (MA) and Harvard Business School (MBA).

Is Bottom In For The Latest Gold Market Paper Attack?

The move by Modi to eliminate large-denomination cash bills from India has set off an unanticipated physical gold buying frenzy that has driven Indian ex-duty import premiums in the mid-$30’s.  It’s the widest I’ve seen in them in the many years I’ve been tracking that data (via John Brimelow’s Gold Jottings report).  “”I’m getting non-stop calls from unknown numbers from people asking for gold,” the jeweller told a Reuters reporter in an interview inside his shuttered showroom..”

Ditto for China.  The SGE premium last night was $12.59 to spot gold.  As Brimelow describes: “In this case the high premiums probably simply reflect capacity constraints among Chinese import dealers. Possibly there is a Trump/devaluation effect boosting local appetite, besides of course the price decline.”

My personal view is that, given the extreme amount of paper being launched at the LBMA and Comex right now, and given that the price of gold seems averse to going any lower (at least for now), the worst of the beat-down is over.  Too many people are looking “down” right now…Eric Dubin has also called a “double bottom in gold.”   He and Jason discussed the precious metals market, among many other topics in their lates Welcome to Dystopia episode, which you can access here:   The Bottom Is In.