Tag Archives: silver

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”

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…

 

Will Silver Hit $54?

With all the action in silver and gold on Sunday night July 3, 2016 we, at Shadow of Truth, thought we would provide a quick update on what has happened and what could potentially happen. Silver, in particular, looks very, very bullish. Dave breaks down all the technical charts and Rory provides some color commentary.

Some of this was inspired by our friend Jesse, Jesse’s Cafe Americain, in a recent article, Silver Cup and Handles Project to a Price Target of $54, Jesse shared the following:

I know some of you have been projecting these nested ‘cup and handle’ formations on your own, because several readers have sent their examples to me and have asked for comments.My first comment is the most important and I wish you to take it to heart.

Projections such as this are not forecasts, because the chart formations in these examples for the most part have not been ‘activated’ and are therefore merely potential things, possibilities, lines on a page subject to a great many exogenous forces and variables, including human and institutional decisions.

Only the cup and handle ‘a’ on the chart below has been activated and achieved fairly quickly I might add. We are now working on ‘b’ and it will not be activated unless the price of silver takes out 21.50 or so.

And then and only then if the price of silver in dollars holds that level with the kinds of retracements and pricing action one would expect to see as a confirmation of it can we say that the chart formation is active and ‘working.’ And even then it could fail. Continue Reading>>>

If you look at the following charts the picture it paints seems to be fairly clear. The first chart, weekly silver movement, clearly shows the first line being broken. The second line, approximately $27.00, is the next line of resistance. Once that line is broken, according to technical analysis, silver should run to the mid $30’s before it meets the next line of resistance.

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Will any of this happen? Your guess is as good as mine. What is 100% clear and undeniable – the first line of resistance has been broken and the algorithms should be entering the market. If silver stays above $20.30 overnight Monday July 4, 2016, the algo’s should kick in and it should be game on.

Bullion Banks Are Starting To Lose Control Of Silver

The Open Interest in silver is close to the new all time record high – set just last week – and gold’s Open Interest is at the same level as 2011 when gold hit it’s all time high in value. As you know the acquisition cost of gold is about $600 less than in 2011 which makes the Open Interest all the stronger. What will it be when gold really starts moving again?

In this episode of the Shadow of Truth’s Market Update, we dig into the signals being given by the market which indicate that the silver manipulation scheme is becoming unmanageable.  In addition, we discuss the ongoing global systemic financial and economic collapse.

John Embry: An Explosive Move In Silver Will Dwarf The Move In The Late 1970’s

I  can make the case, Dave, gold and silver may never have been cheaper than they are at the bottom in this cycle compared to the amount of money, and particularly debt, in the world. So, to me, this move we’ve had so far this year is, it’s like a rounding error. – John Embry, Shadow of Truth

It’s becoming more apparent on a daily basis that the Federal Reserve is attempting to exert complete control over the markets.  The Federal Reserve operates from its NY Fed trading base in conjunction with the  U.S. Treasury’s Exchange Stabilization Fund, which operates in the same building as the NY Fed.   So much for the notion that the Fed operates independently of the Government.

But it’s not just the markets. It’s becoming more apparent to more people that same cadre of insider elitists who are rigging the stock market also do their best to rig the political process.  This is exemplified by the fact that the SEC announced yesterday that it is investigating the accounting methods of Alibaba.   This is eyebrow-raising because it’s quite obvious that Alibaba’s chief competitor, Amazon.com, has been engaging in fraudulent accounting practices for over two decades.

Oh, I forgot to mention that Amazon CEO Jeff Bezos owns the Washington Post.  This is the perfect political hand grenade with which to threaten the DC politicians and political appointees if they were to start probing around Bezos and his enormous business Ponzi schemes.

This insider DC establishment did its best to derail Trump’s attempt at assuming the Oval Office throne.  But the fact that Trump set a record for Primary popular votes  made it next to impossible for the elitists to plausibly justify perverting the Republican convention nomination process with one of its lap-dogs like Romney or Rubio.

On the other hand, it looks like Hillary’s three decade crime spree is finally starting catch up to her. Something happened behind “the scenes,” because all of a sudden the State Department’s Inspector General decided that Hillary broke the law.  This is the first time in Hillary’s history that any official entity has held her accountable for a list of crimes that date back to her days as an attorney and the State of Arkansas’ “First Lady” (I use the term “Lady” very loosely).    Even MSNBC was on her case today.   Some group of unidentified insiders who operate at a level above Hillary have decided she’s not the one  to be their Oval Office pawn.

Meanwhile, the precious metals sector has sprung back to life after a 5-year period of an unabated manipulated price-thrashing of gold and silver.   Despite Goldman Sach’s incessant plea for $800 gold, the yellow dog ran from $1050 in mid-December to just over $1300 by the end of April.  A 24% rise in 4 1/2 months.  In the same period of time, silver ran up nearly 31%.  The mining stocks, per the HUI index, ran up just over 130% since January 19.   If the general stock market or any of the fast-moving sectors made moves like this, the meat with mouths on CNBC etc would be doing naked cartwheels on air every morning.

Rory Hall (The Daily Coin) and I hosted John Embry for a lively discussion of what is happening, why it’s happening and what might happen:

SoT – Peter Schiff: The U.S. Is One Gigantic Bubble Economy

The admission that the economy is so weak that it needs more QE is going to destroy the narrative that the U.S. economy is in great shape and it’s no longer going to be the safe haven for capital around the world…it’s going to prick the bubble in the dollar…and people are going to realize that we’ve never recovered from anything, the economy is sicker than ever, the Fed’s going to make it even sicker with more of its toxic monetary policy, the dollar’s going to tank and the price of gold is going to skyrocket – and people need to prepare for that now.  – Peter Schiff on the Shadow of Truth

When Mt. Vesuvius blew, no one knew when it would happen or how big the eruption would be.  Everyone knew a volcanic event was going to occur and yet, the magnitude of the event caught a lot of people by surprise. The eruption destroyed two Roman cities and several surrounding settlements.  It killed an estimated 16,000 people.  The question is, how come more people didn’t leave the area surrounding Vesuvius when they knew that something was going happen at some point?

The United States financial system – including the viability of the U.S. dollar – is analogous to the eruption of Mt. Vesuvius.  A lot of people know something is wrong – evidenced by the growing support for the Trump candidacy – and yet 99.5% of the population is ignoring the warning signs of a systemic eruption of unknown magnitude.  It’s an event that draws closer with each passing day.

The warning signals of the coming financial markets collapse are in full view.  The warning signal from the junk bond market, triggered by but not limited to the collapsing energy sector, is beginning to spread into and infect the rest of the financial markets like an uncontrollable virus. If you are an investor or a professional money manager, what more of a warning do you need that this:

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That chart resembles a giant tsunami that has coiled offshore and is getting ready to slam into the the nearby beach. Only in this case millions of people remain on the “beach” to watch the horror show unfold without leaving for safer ground. It’s as if everyone knows a catastrophe is about to occur and yet most remain embalmed with the hope that it can’t really happen.

The willingness of people to park their paper in financial assets like bonds is simply a function of their lack of understanding of the problems that exist and their false confidence in Central Banks.  – Peter Schiff

The systemic causes of the financial crisis that hit in 2008 – and which was really a de facto financial system collapse – were never properly treated. Rather, they were medicated by heavy doses of money printing and free money, the latter which is otherwise known as ZIRP. The moral hazards of this monetary policy have fomented in impending systemic eruption which will be the financial market’s equivalent of the historic Mt. Vesuvius volcanic blast. The timing of this is just as unpredictable as the consequences.

The Shadow of Truth hosted a conversation with Peter Schiff to discuss to discuss the impending financial market eruption and the inevitable dollar crisis, which will ultimately rip apart the U.S. financial and economic system:

The Global Bubble Is Popping – SGT Report Podcast

“Two kindred spirits talking about reality” –  SGT

“What caused me to almost fall off my chair when I read that article (San Francisco Fed President John Williams gave a speech in which he stated that he Fed would raise interest rates 3-5 times in 2016 and asserted that the economy “is in good shape”) was when he said the economy was doing fine. I’m not really sure what data he’s looking at or if he’s being completely disingenuous for the sake of being a cheerleader on the economy…We would have to sit down with him in private and show him the data and say, “what are you really looking at here, John, because your statement makes you look like a complete idiot to everyone out there who knows the truth.”

“Anyone who wants to buy precious metals now and they understand the reason why and they want to convert their fiat currency into precious metals – buy as much silver as can…silver is extraordinarily cheap outright and its extraordinarily cheap vs. gold.”

The Manipulation In Silver Has Reached An Extreme

You think the silver reported as being held by the SLV ETF Trust is really all there?  Really?  I guess you’re probably expecting a visit from Santa Clause in about a month as well…Silver has been hammered by the paper market for 16 trading sessions in a row.  This is the longest losing streak in the history of silver futures trading.

The manipulation of both the metals markets and the stock market has reached proportions that would have been unfathomable before the 2008 de facto financial system collapse.  The Fed has been intervening in the markets since its inception, but the executive order signed by Reagan authorizing the Working Group on Financial Markets – a secretive subset of the U.S. Treasury Department, opened the door for the full-fledged near-continuous intervention in the markets we are now witnessing.

Clearly, there is something very wrong going on behind “the curtain” and the Fed, in conjunction with select TBTF banks and hedge funds seems to be doing whatever it takes to keep it contained and hidden from the masses.

The Doc and Eric Dubin invited me on to their weekly market Metals and Markets show to discuss these and other issues:

Silver Is The Most Manipulated Market In History

The price of paper silver has been mauled since Janet Yellen and her band of FOMC merry clowns released their policy statement last Wednesday which made the claim that there was strong possibility that the Fed would hike its Fed Funds rate in December.   Silver is now down 8.5% since that statement hit the tape (click images to enlarge):

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But as you can see, silver is still in an nice uptrend, up over 7% from the bottom it hit in late August.  Of course, in testament to just how manipulated the markets are, the S&P 500 – which should have experienced the same type of sell-off as silver and gold on the threat of higher rates – is up 1.3%.

Part of the reason silver may be getting hit is the news of a report from the investment conference in New Orleans last week that some company had invented an aluminum-based replacement for silver used in solar panels.  Obviously, if this were true, it would impact the amount of silver going into India (see this report in which the U.S. exporting 100’s of tons of silver India).  And it would impact the amount silver China is using in the development of its massive solar program.

However, if you investigate the “beneath the surface headlines” of this claim being made, the Company has not proved its technology works or is practical in commercial applications.  I’ve seen at least two claims by companies over the last 10 years that they’ve developed a pill to cure alcoholism. Still haven’t seen that cure  hit the market.  And for how many centuries has the world had to endure claims from “scientists” who state they had figured out how to convert lead into gold?  As for this company’s claim?  I’ll believe it when I see it in action.  Until then, it’s nothing but hot air.

Feel free to read the source story here:  Natcore swaps silver for aluminum in solar cells.

Until proven otherwise with real life, profit-making applications, I believe that this story will fall into history’s dust-bin of false-flags.  Seems a bit coincidental that this story emerges just as the Fed/bullion banks are in the process of raiding the paper precious metals markets…again.  The only thing missing from this story is Jordan Belfort (the Wolf of Wall Street) resurrecting his old Stratton Oakmont penny stock brokerage and taking this company public.

The anti-gold/silver propaganda is reaching epic levels again.  It also happens to coincide with another multiple-day run on the gold in GLD and a record-breaking run up in the paper/gold ratio on the Comex.   The paper to gold ratio at close to 300 is nothing more than a reflection of how desperate the banks are becoming to keep a lid on the price gold/silver.

This paper to underlying deliverable physical commodity ratio is many multiples beyond the ratio that the CFTC and CME allow in ANY other commodity market. It completely destroys the purpose of futures markets.  It’s crystal clear that gold futures were introduced in 1974, one year after the U.S. devalued the dollar vs. the yen and Paul Volker admitted over 20 years ex post facto that the Fed made a mistake not preventing the price of gold from moving higher when the dollar was devalued.  They couldn’t manipulate the price of gold in 1973 because gold futures didn’t exist.

When history looks back on this period, one of the biggest official frauds will be the Fed’s empty threat of raising interest rates and the world will understand how and why it was used to help keep a lid on the precious metals. PCR5  But most of us who have been involved in this market already know the reason…Et tu, Janet?

This commment from “Martin” is most apropo with respect the aluminum for silver claim:

I remember the year 2011 whcen the German company Schott AG made the announcement that they had developed a solar cell completely void of silver. They said they successfully replaced the precious metal by copper. I could not find their press release, but found some news about it in the Internet: LINK So now 4 years have passed. I have not heard since then that silver in solar cells has been replaced by copper. So I do not put to much confidence in any such news in regard to solar technique that silver may replaced by some other metal. At least not on a big scale.