Out with the old, in with the old. Wall Street and the Fed wants to make nice with Trump so as soon as he accepted the next Presidency, the market manipulators went to work on pushing stocks higher and gold lower.
What happened with the threat issued by the media that if Trump were elected the stock market would crash? Yesterday Stanley Drunkenmiller issued a proclamation that he sold gold because inflation was coming. I do not believe that I have EVER come across any reference to the notion that gold in inversely correlated with inflation. Someone must’ve slipped Drunkenmiller some LSD in his scotch. But, then again, Drunkenmiller is part of the Soros family, which means he’s the enemy of the people and the truth.
The economic thesis connected to Trump is infrastructure spending and inflation generation. The insanely overvalued, over leveraged “infrastructure” stocks like Caterpiller and Terex screamed higher the last few days. But if Trump has his way with his economic ideas, corporate taxes will be cut and the Government will re-do the work Obama did on the infrastructure. Bridges to nowhere funded by more Government debt.
I’m sure most market participants with at least two brain cells to rub together – which de facto would exclude Larry Kudlow from this human demographic – have figured out that Trump’s game-plan would widen out the Federal spending deficit and further accelerate the issuance of more Treasury debt. It is likely that the Fed will have to monetize some of this new debt issuance. This is the perfect recipe for higher gold and silver prices.
What is occurring right now in the markets is nothing more than a knee-jerk response by the hedge fund algos to the overt intervention by the PPT (the Fed + the Working Group on Financial Markets). The PPT steps in to get stock and precious metals futures moving in opposite directions and the hedge fund black box computers pile in.
The massive take-down in gold is designed to make everyone feel better about Trump as the new president. But the price-smashing can only occur in the fraudulent paper gold markets in NY and London. Drunkenmiller is a fan, not surprisingly, of GLD – the quintessential postcard for fraudulent paper gold derivatives.
Today gold traded flat to up in the physical gold clearing eastern hemisphere markets. It wasn’t until the Comex opened that the real party for the criminal manipulators began. At one point, from 11:30 to noon EST 48,239 paper gold contracts were dumped on the Comex:
48,239 contracts represents 4.8 million ozs of paper gold – over 150 tons. Close to $6 billion worth of paper gold in 30 minutes. From 11:30 to the 1:30 Comex close EST, a little over 103,000 contracts were sold, representing 10.3 million ounces of paper gold, or 321.8 tons. The U.S. produces about 200 tons annually. Make no mistake, it is no coincidence that this hit on the price gold was gold timed to occur on a Friday holiday after the rest of the world had shut down their trading systems and went home for the weekend. This is standard modus operandi for the criminals running our system.
The Comex vaults are reporting a little over 2 million ounces available for delivery. If an imbalance between the futures and the underlying available physical commodity were this wide in any other CME market, the Government regulators would be cracking down on it immediately, no questions asked. Why is gold different? The gold and silver markets are the most manipulated markets in the world and the same people doing the manipulation will kept in place under Trump.
The good news is that the physical accumulation going on in the eastern hemisphere will accelerate next week with the lower price of gold. This always occurs. This will be the catalyst that will put a floor under the ability of the western elitists to push gold much lower.
I personally bought some physical gold this morning via Bitgold and reloaded some call options on some high quality large cap mining stocks and added to positions in my existing junior mining stock portfolio. The subscribers to my Mining Stock Journal were given my gameplan last night, including some names of other high quality mining stocks that have been beaten up and are overdue for big bounce.
I also think the black box computers are programmed to sell gold and buy stocks and us dollars when bonds fall in price because that usually means higher economic growth. That is incorrect! And once the machines get reprogrammed (over the weekend?) to view falling bond prices are due to inflation fears everything will flip the other way!
“Drunkenmiller is a fan, not surprisingly, of GLD – the quintessential postcard for fraudulent paper gold derivatives.”
I could not agree more. You are absolutely correct on how much of a fraud GLD is. Paper gold GLD claims to be fully backed by physical gold bullion but yet it refuses to give retail investors the right to redeem for any of these ‘claimed’ gold bullion. This fact alone would mean GLD shares are nothing more than paper at the end of the day. Furthermore, GLD’s prospectus is chalk full of weasel clauses and legal loopholes that allows the fund to get away without the full physical gold backing. One good example of this is the clause that states GLD has no right to audit subcustodial gold holdings. To this day, I have not heard of a single good reason for the existence of this audit loophole. I’ve also verified the following to be true and welcome everyone else to do so:
“Did anyone try calling the GLD hotline at (866) 320 4053 in search of numerical details on GLD’s insurance? The prospectus vaguely states “The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody.” When I asked about how much of the gold was insured, the representative proceeded to act as if he didn’t know and said they were just the “marketing agent” for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.”
“I remember there was a well documented visit by CNBC’s Bob Pisani to GLD’s gold vault. This visit was organized by GLD’s management to prove the existence of GLD’s gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this “GLD” bar was actually owned by ETF Securities.”
I’m getting sick of all this blatant criminality and people telling me to be patient with precious metals. This criminality will not stop until the rule of law is restored and the criminals are prosecuted and jailed. That much is obvious.
You know, Dave, I agree with everything you say, and although I suspect GLD is used purely for hedging by some funds, this action is just too consistently predictable. Why would anyone buy gold and silver futures on the COMEX when this occurs so regularly? Who in their right minds would deal on this exchange unless they were fully hedged for spreads? And for what point?
There also has to be criminal self-dealing, among the bullion banks, for this to be so one-sided? Am I missing something here?
Like the Chinese, I have not yet purchased all the gold I need.
Like the Chinese, I am grateful for the rigged paper manipulation scheme that allows me to buy (as I did today) at artificially suppressed prices.
Like the Chinese, I am playing the long game, waiting for the Western debt-based ponzi-system to collapse under the weight of it’s own hubris and criminality.
If you are done accumulating and have a full allocation to gold, then you have a reason to bitch, however, if you are still accumulating you should be gleefully cheerlead every paper smack-down because you have the opportunity to buy a $10,000 ounce of gold at the fire sale price of under $1300 an ounce.
Zen Zen: “If you are done accumulating and have a full allocation to gold, then you have a reason to bitch.”
I 100% vehemently disagree. Actually I find it 1000% more ironic, given your double “Zen” moniker, among all things.
Even if somebody is in such situation, as long as they have no immediate financial commitments needed to sell that gold to pay for something urgent e.g. medical insurance or college tuition: THEY HAVE NO REASON TO BITCH. They have NOT lost absolutely anything, as long as they didn’t buy those metals on margin by borrowing money.
With the kind of extremely dangerous shenanigans over past 2 months e.g. precarious Deutsche Bank situation, possibility of Hitlery being elected leading to WWIII worries etc.: If someone felt uncomfortable about trying to time the markets, being akin to playing with fire & made full allocation to gold, they are FULLY justified @ being content with the decision they made. After all, it’s everybody’s personal threshold for what level of risk-aversion they can stomach. It can’t be exactly same level for everybody across the board. Praxeology is the name of the field that delves into topics like these for understanding fundamentals of human action. It’s far more important for such people to be at peace with their decisions, instead of second-guessing the madness that followed “to bitch”.
Theravaida – I read your response three times over and have no idea what the hell your point is. I’d welcome a lively debate, but you will need to try again if you want me to engage.
The point (which is clearly lost on you) is that you need more Zen in your life & less lively debating or repeated reading over.
Maybe if you changed your moniker from “Zen Zen” to “Zen Zen Zen” you would have an idea “what the hell” my point is.
Then again, maybe not.
they can keep the game going as long as they want,,,they can buy streaming gold ,the mines output ,and make it not easy to take delivery,,money is not there goal ,
A couple of weeks ago I closed out my last short position. I only have miners in my account. Now I am thinking if I should get out of those as well. The action in gold and the miners make me sick. The American public cannot vote out the banksters unfortunately.
You consistently said on this blog from the beginning that voting for Trump & expecting him to be some kind of savior to totally defeat NWO was a nonsense idea. I maintained this stance as well, possibly coming from a slightly different angle. There were many people who got burnt in 2008, betting on a “Change” platform. I learned about what healthy cynicism is after 2008.
All I know is: Most likely, we have avoided World War III by getting Trump elected. That’s the only thing Paul Craig Roberts focused on, which was THE MOST important thing to worry about during the election, mind you. Nowhere in his commentary do I recall PCR speculating on whether Trump’s election would/could end status quo of Federal Reserve/interest rates, Plunge Protection Team, Exchange Stabilization Fund, etc.
I feel David Stockman focused on this angle more. But I can’t say for sure. Since the last month or so, David Stockman turned his blog into a paid subscription site. I only get to see synopsis snippets of his articles. Unlike Paul Craig Roberts, David Stockman is not the kind of person to discuss bigger geopolitical angles like Russia/Syria/Military Industrial Complex etc. He stays mostly in the financial/monetary domain. And he has definitely been a big Trump cheerleader.
The dawn is still very young, Trump hasn’t even been inaugurated yet. It’s been only 3 days since his election. The stock market & paper gold/silver shenanigans happening over these 3 days are extremely concerning & eyebrow raising developments, to say the least.
GLD is not even paper. GLD is just some digits in a computer memory cell. They trade against some other digits (called US Dollars) in some other computer memory cell.
To change anything all people have to wake up , before Zionist Mafia take over everything. They maybe pushing gold down , but on other hand they buy shares of mining companies.
I bought nearly all my gold and silver in 2002-2004. At that point I thought the financial collapse was imminent and that the PM’s would reflect what happened in 1979-1980.
I was obviously wrong in my sense of timing. However, I mask out all the ‘gold going up real soon now’ predictions as nothing but noise, because I have come to the realisation that the most difficult position in any kind of investing is to draw the correct conclusion way in advance of the anticipated movement in the commodity.
So I sit tight knowing if I don’t live long enough to see the event I am prepared for, then my heirs will and in that regard, I think they will have fond recollections of me.
Thank goodness I’ve got $$ currency to ride out this madness for a few years. My Au horde hasn’t changed, its still sitting there quietly, ready for a shinier day. I can wait, but sure hope it takes flight before I’m dead.
If an entity such as JPM buys 100,000 monster boxes of silver coins, what
stops them from turning around and melting them down into bars for the
raw material for the latest years coins? They cold churn indefinitely and
the market would never run out of supply. 3