Here’s the latest update from the collaborative effort between The Daily Coin and Investment Research Dynamics, AKA the Shadow of Truth:
Stewart Dougherty is back with scathing commentary about the big mining companies – Barrick, Newmont, Goldcorp, etc – and their unwillingness to fight the obvious intervention in the gold and silver markets by western Central Banks and Governments.
While the Fed and other Deep State puppets have floated subtle memes that there is a noble purpose behind the control of gold, such as to support the dollar and preserve confidence in their (disintegrating) financial and monetary system, these are nothing but contrived and coagulated lies designed to cover up the biggest financial crime in history. – Stewart Dougherty
In 1980, the Financial Deep State realized that there existed an extraordinary opportunity for serial plunder and profiteering: the manipulation of the gold and silver markets. They immediately mobilized to exploit it.
During the subsequent 37+ years (we are now well into the 38th), the Deep State manipulators have criminally looted the gold and silver markets, pocketing astronomical profits for themselves in the process, all of which have come from real victims on the other sides of their fraudulent trades. While literally billions of people worldwide have been financially damaged by this crime, many of them severely, not one of the perpetrators has spent so much as ten seconds in jail for the global looting spree they have conducted. This is because precious metals price fraud is a state-sponsored crime.
While in this article we will concentrate on gold from here on, the exact dynamics we describe also apply to silver. The only difference between the two is that the price carnage in silver has been far worse than it has been in gold, on a percentage basis.
As a consequence of the unrelenting gold price manipulation, gold has been thrust into two severe bear markets that have lasted for more than 27 of the past 37 years, or more than 72% of the time.
The first bear market ran from 1980 until 2001, during which the gold price was savaged from $850 to $250 in nominal dollars, a plunge of 71%. Inflation-adjusted to today’s dollars, the carnage was even worse: it collapsed from $2,674 to $344, an 87% implosion.
In 2001, in the midst of unprecedented (at the time, but far worse now) economic, financial and monetary pressures, gold embarked on a ten year rise to a nominal (although not inflation-adjusted), all-time high of $1,925. The Financial Deep State had its hands full then with other, more pressing matters (such as keeping its global financial and monetary Ponzi schemes from disintegrating), and was forced to take its eyes off of the gold ball. It is impressive what gold can do when it is freed from the chains of greed, looting, and official corruption.
By 2011, after employing its signature techniques, including rampant counterfeiting and reporting fraud, the Deep State had returned the errant financial genies to their poison bottles, and was able once again to focus its attention on its favorite, most profitable crime: precious metals price rigging.
For the 6+ years since, gold has been slammed into a second major bear market, during which its price has been crushed from $1925 to $1050, a collapse of 45%. It has recovered somewhat to $1210 at the time of this writing.
During the entire 37+ year period, and particularly during the 27+ years of outright price annihilation, the major gold miners have done precisely nothing to expand the market for physical gold via advertising, direct marketing or any of the other proven demand-creation techniques. They have also done nothing to support gold’s price in any way, or to take action against the criminal price manipulators.
Silver Doctors invited me on their weekly Metals & Markets program to discuss notable events unfolding in the physical precious metals markets, the meaning of the Mint suspending 2016 silver eagle production several weeks earlier than normal, the bond market blood bath and other market occurrences that are eerily similar to events which unfolded before the 2008 de facto financial market collapse.
IRD is featuring an extraordinarily undervalued gold producer in its next issue of the Mining Stock Journal (out tomorrow). The previous issue featured a sell recommendation that might surprise those who own this particular stock. It also contained trading ideas on some high quality larger cap mining stocks that will bounce back quickly when this latest take-down of the precious metals market passes (likely this week). You can subscribe to the Mining Stock Journal with this link – MSJ Subscription. All of the back-issues are included (email delivery-based).
One interesting occurrence that has not been written about in the precious metals alternative media or blog space yet is that gold has been quietly moving in tandem with the dollar over the past several trading sessions. It has been quite pronounced during the past four trading days, today inclusive. In the previous 15 years, gold’s best periods of return have occurred when gold and the dollar move in tandem higher for a brief period of time, followed by a period of time when the dollar heads south and gold continues higher.
If you look at graphs of both gold and the dollar side by side, you’ll see that this occurred in late 2005 into early 2006, when gold moved higher until May while the dollar fell and again in late 2008. It’s too early tell if that will happen now, but suffice it to say that both are moving in tandem right now and it’s worth watching to see if it continues. My theory is that there’s flight to safety into gold and the dollar ahead of an adverse economic event. As the event unfolds, the dollar begins to sell off but capital continues to flow into gold as the ultimate wealth preservation asset.
The above analysis is an excerpt from the latest issue of IRD’s Mining Stock Journal which was released last night. Earlier today, Bill “Midas” Murphy poked his head out of the New Orleans Investment Conference and asked me why the metals were acting “so goofy” this morning, to which I replied:
Interestingly, gold and the dollar have been moving in tandem the past several days. Not perfect correlation but I bet its 80-85%. I discussed this in the latest issue of my Mining Stock Journal. Over the last 15 years, gold has had some of its best performance periods when it moved in tandem with the dollar for a bit then took off higher while the dollar sold off. It’s been moving in tandem with the dollar today as well.
The manipulated correction is over. India and China are buying a LOT of gold right now. Two days ago nearly 100 tonnes were delivered onto the SGE. I don’t think the cartel can take gold lower and I think right now they are merely trying to keep the “beachball” from popping above the surface of the water. Every time gold pops up, they hit it, but gold bounces back like one of those punching clowns.
At some point they are going to have to go back into “managed retreat.” Maybe once the election is over.
You’ll note that there’s now been a complete reversal in the precious metals sector, with gold, silver and the HUI running higher and the SPX/Dow headed south. MSJ subscribers have been getting analysis like this since early March. In addition, my picks have been substantially outperforming the sector. MSJ is $20/month, with no minimum commitment period. You can access this content by clicking here: Mining Stock Journal.
You’ve got a great journal for an amazing price – James, happy subscriber
The precious metals market is at the end of its typical mid-July to last August “breather.” This is the time of the year when the eastern hempisphere physical buyers are somewhat dormant. Over the last several years, China’s emergence as the world’s largest gold importer has somewhat reduced the late summer seasonal sell-off. But it’s the period of the year when it’s the easiest for the paper manipulators to push the price of gold lower.
Quite frankly, gold is up 25% since mid-December and 10% since early June. Notwithstanding the fact that, if left alone to trade freely, gold would go parabolic for at least $700-$1000, it’s been one of the best performing asset classes YTD and can use “technical breather.” But India is starting to flex its muscle as it heads into its biggest seasonal gold buying period of the year from right around now to mid-December.
On the other hand, the housing market is getting ready to rollover. Its already crashing in some areas (Hampton, Aspen, Miami), as noted by Investment Research Dynamic’s Short Seller’s Journal two weeks ago. The higher end of the price spectrum is loaded with inventory in most major MSAs and inventories in the middle and upper-middle price segments are building quickly. July was negative month for existing home sales and mortgage applications. The only area homes were being “sold” was in the Government’s highly manipulated new home sales report.
The Shadow of Truth discusses gold and housing and the direction in which each is headed in its late episode:
Powered by The Daily Coin, Investment Research Dynamics
A lot of investors have invested in GLD and SLV under the mistaken assumption that they are investing in “gold.” In the latest episode of the Shadow of Truth, we discuss why GLD/SLV are Ponzi schemes created as a mechanism to control the price of gold/silver. We also report the latest on China’s massive investment in the new Silk Road and why it will change the world – The Daily Coin published and extensive article on this topic: Silk Road. Investment Research Dynamics explains why the Central Banks are losing control of their precious metals price control scheme: LINK.
A highly engaging and informative interview with Eric Sprott from Palisade Radio
A Massive Move In Precious Is Coming
After the collapse of Lehman and the “official” great financial crisis, gold ran up 260%, silver soared 500% and the mining shares per the HUI moved up 418% – many junior mining shares spiked up multiples of the HUI’s percentage move.
Now that the systemic problems are worse than in the middle of 2008, we believe this current move in the precious metals sector will easily exceed the move it made from 2008-2011. We are confident that the returns in PMOF since the beginning of 2016 are an appetizer that precedes the main course. – Precious Metals Opportunity Fund quarterly investor letter
Note: the current delivery-month for Comex gold is June – I absent-mindely reference July as the current gold delivery month in the podcast below.
The trading patterns in gold/silver are starting to reflect the real possibility that the Central Banks are losing their ability to use paper gold/silver derivatives a price manipulation device. Nowhere is this more evident than on the Comex, where the ratio of paper gold/silver futures vs. the amount reported physical gold/silver available for delivery into those paper claims is at historically high levels.
Elijah Johnson of FinanceAndLiberty.com invited me on to his podcast show to discuss the precious metals market, along several other topics. Elijah posted the portion of the show in which we specifically discuss Comex gold trading because it coincides with the strong move higher made by the metals this week.
If the CFTC passed a regulation prohibited the issuance of gold/silver Comex contracts in excess of 120% of the amount of underlying physical gold/silver it would probalby cause a doubling of the price of gold and a quadrupling in the price of silver…
The disappearing stock of physical gold on the Comex and the LBMA has been documented and discussed by several analysts recently, including this website. In correlation with the disappearing physical gold is the preposterous amount of paper gold claims issued against the dwindling supply of gold both in NY and London.
But what does it mean and where is all this gold going?
Long time precious metals market professional and analyst, David Jensen, has written a must-read analysis which explains why the explosion in the amount of paper gold and the disappearance of physical gold is transmitting the message that the NY and London bullion markets are collapsing:
Many will chuckle at the proposition of Western gold market failure and note that the price of gold has gone nowhere. If the markets are in collapse due to lack of available of gold, then where is the price action exploding to the upside? Well, digital gold and silver are still available in copious (infinite) amounts and continue to trade on both the LBMA and COMEX exchanges – you can have as much digital or virtual metal as you want on these digital exchanges. There is no shortage of virtual metal and thus the virtual price that most investors follow won’t move up. The bullion banks have always sold-down this virtual gold price when it has risen.
The telling of the story is instead in physical metal availability and so we look first to the LBMA – the primary global ‘physical’ exchange. The LBMA indicates in it owns market guide that its primary gold trading contracts, unallocated spot market contracts which are claims for spot physical gold (ownership right-here, right-now), give the holder just an unsecured claim for physical gold. This has allowed the creation and trading of non-existent gold to the point that the London spot physical gold market trades 200% of the global annual gold mine production of gold – each day.
You can read the rest of this article here: LBMA/Comex Gold Markets In Collapse
We must not forget that when Germany, in 2013, asked for the return of 674 tonnes of their gold primarily from the Federal Reserve and some from France, they only received 5 tonnes. They were then told that they could get the rest back by 2020. They then announced that they actually received around 150 tonnes back in 2014.
But Germany has since stopped repatriating their gold, with Merkel declaring that Germany is happy holding its gold in the United States. Egon Von Greyerz, King World News