In real terms, most international fiat currencies could come to be near valueless when measured against gold and silver…And of course that climate will cause the utter collapse of the global stock markets, not to mention impact most severely our societal stability; all as direct consequence of the delusionary monetary practices employed for decades. – Safewealth newsletter
Sell please. I’m buying. There’s a lot of analysis out there with highly flawed assumptions. The biggest problem with this analysis – Seeking Alpha link – is that the author assumes the Fed will raise interest rates. That won’t happen until the entire is system is forced into a reset from a collapse. The Fed knows this and has no interest in hastening that reset.
Just like the continuous threat of raising interest rates, there’s been a continuous threat of “gold is overbought, too many longs, market is going to cliff-dive at any moment” like this article pouring forth (click to enlarge image). Where was this story-line when gold was being hammered daily as if the market was trying to dig a hole to China for the price of gold?
The gold net long is “stretched?” That meme is now quite tired. Put it to sleep please. Analysts with a longer track record in this sector than the author of the above article have been instilling the “net long” fear into the market for nearly three months now. Where’s this overbought sell-off?
They key to finding profit opportunity is to think outside the box. Based on my findings, there is a lot of institutional cash on the sidelines waiting to buy into the pm sector on any pullback. That’s why the metals have popped after that manipulated take-down on Monday – a takedown fueled by the “net long is overstretched” commentary that littered the airwaves last Friday after the COT report was released. (click image to enlarge)
This market has been surprising everyone to the upside and will continue to do so. At some point the lemmings who blindly soak up the “market is overbought” fairy tale will be running to catch the train. That’s when the real fun begins.
Currently gold is behaving similarly to the way it behaved back in 2003 when it was trying punch through $400. The “overbought” garbage was permeating the media back then just like now. In fact, Robert Prechter issued a call for gold sell off to $50. How’s that call look? Shortly thereafter the market blew through $400 and eventually hit $1900. I would suggest that the author in the article linked above was not around back then and thus has no context for what is happening now. (CLICK ON THE IMAGE TO THE RIGHT TO ACCESS IRD’s MINING STOCK JOURNAL)
I really don’t care where gold is priced accept when I’m trying
to unload green paper so, I try and get as much gold as I can for
the green paper. Whenever this clown show ends and gold is revalued
at a new green paper price the only people who should care are the people
who did not buy at lower green paper prices.
True – I love the price-hits.
I finally got onto BitGold a couple weeks ago after they ended their forex charges when you ‘deposit’ non Canadian dollar money with them for gold purchase. I use my regular bank debit card (US dollar) to make purchases, so no wiring fees, no ACH transfer rigamarole. Just boom, instant purchase and no fees (except for BitGold’s 1% charge).
I’m having fun with price hits now, converting my digital $$ into BitGold when the mood strikes me, in any amount I choose. I have plenty of physical already, so now it’s onto the brave new world of gold backed debit cards.
It’s really cool, right?
I like the little clink sound when you open up your account, and when you buy gold. I imagine my digital $$ zipping across the internet, suddenly turning up as physical allocated gold in a vault in Zurich. Very satisfying. And all of it waiting to turn back into currency via debit card whenever I want.
Why would I want my money to sit in a bank as digital 1’s and 0’s, as my liability??
Once people wrap their heads around it, they’ll understand that BitGold is a type of gold standard for safe money, just as our currency used to be.
I interviewed the CEO pretty thoroughly. I plan on writing up the stock at some point
No doubt I’ll get taken to the woodshed for asking this, but am I the only one who is concerned that the policy elites are not going to allow private citizens gold holders to benefit when the banker-owned paper ponzi finally collapses?
No question, when this house of cards comes down, the precious metals holders will be the only ones left standing–and we will stand out like prime rib to starving wolves.
Does anyone believe the owners of this rigged system are going to allow us win when they are losing everything? Is it reasonable to assume they will sit idly by and watch their wealth transfer to a bunch of serfs and commoners?
Nobody could have imagined just 7-8 years ago that these PHD-wielding sociopaths could have dreamt up such abominations as QE’s and negative interest rates. But they did, and they’re forcibly cramming their perversions down our preverbal throats. So what’s to stop these same miscreants from confiscating our “excess wealth” via taxation or confiscation, or by some other yet-to-be invented, unimaginable, lawful form of looting?
When gold ultimately goes to $10,000/oz on it’s way to 50,000/oz, are the little guys going to get screwed out of this price move?
Zen – who knows how it plays out, but what else you gonna do? Where are you going to store your wealth, providing you have some? If .gov taxes or confiscates in the early running and suppresses it, eventually things will shake out and gold will re-emerge. It may be your kids who will use this gold, however.
In the meantime, there will always be barter – somebody will always gladly trade you land or fuel or food or transportation for your PM. You just won’t get to trade it for whatever the new currency is, but so what. At that point there will be multiple currencies because everyone will be under duress. You’ll just have to be careful showing your PM, but there will always be a black market.
Andy – agreed, suppose there’s nothing else to do but buy PM’s, which I have done and continue to do, however (from my perspective), there is a lot of discussion and commentary about buying, stacking, and storing, but little to no talk about banning, confiscating and taxing. If the policy elites can get away with banning green currency, what’s to stop them from banning gold currency? Nothing is my answer.
Count me among those buying physical on the dips. Yes, I have what I believe is an excellent portfolio of miners, and they continue to do well … but my emphasis (and the overwhelming majority of my capital) has been and will continue to be the metals themselves — the “powers that be” may ultimately find a way to deprive us of a substantial portion of our mining stock gains, but they’ll never be able to take away our metal, and they will ultimately fail in their attempts to cap their price.
Yes the only truly safe repose for your wealth is physical gold or silver, until after the inevitable, total revision of the monetary system back to sound money. Secondarily the best at-risk bet is, as Dave recommends to good effect, carefully selected mining stocks (which Dave is great at analysing!), however they too remain “at risk”, which is why I recently cashed out all of mine with some profit and shifted totally into physical PMs. (Mind you, that’s just for me, as I want to position myself TOTALLY non-risk now, but some measured risk in miners still seems warranted for those who choose it.)
What worries me even about good PM mining stocks is that they, too – even being the best at-risk bets of all – are potentially vulnerable to panic liquidations when the rest of the “markets” crash as they’ll do soon. I mean there’s SO much hyper-leverage out there, mostly on insanely over-valued assets, that when the margin calls start rolling in, the danger I foresee is that even essentially strong mining stocks that have spiked in value might be sold off for precisely that reason, to meet margin calls for the other malinvestments. Like, I imagine some idiot who bought Amazon on margin at 600, suddenly needing to pay his leverage debt when Amazon goes down to 300 overnight, so where will he find the cash? In his mining stocks that have simultaneously spiked upward.
And then there’s the additional question of whether, or for how long, the stock “markets” will even remain functioning when the crash comes. Granted, in the LONG run, gold and silver mines will become extremely valuable in a STABLE way, but the only way to defend against the INTERIM instablity will be to hold physical.
I think the bull market is back…only way they can smash metal from here on in is smashing the dow & .gov wont let it happen…it would only be temp anyway ..I hate preempting this market but yep IMO it’s on again maybe 28-35 bucks before a correction then any thing could happen 500-1000 dollar silver who knows …? it’s coming sooner or later…as Zen points’ out might be nigerian gunboats dominating the world by 2025
PS, I see this morning in American time (May 13) there was another waterfall attack on silver, driving it down a mere ten cents. And those more and more futile attacks on silver, remind me of “Private Pyle’s” attempts to get over the obstacle, here:
To clarify, in the above video I’m imagining “Private Pyle” as the cartel…
…and this, also, reminds me of the cartel, and the Federal Reserve (a re-run, but an appropriate one until Judgement Day):
…but meanwhile, what the Prophet Ezekiel wrote around 2,600 years ago, has become true again for today: “They shall cast their silver into the streets”…which was and still is one of God’s indictments against the moneychangers and their dupes.