Gold, Silver And The Mining Stocks Are Showing Signs Of Life

“Shanghai Gold will change the current gold market with its ‘consumed in the East but priced in the West’ arrangement. When China has the right to speak in the international gold market, the true price of gold will be revealed.” – Xu Luode, Chairman, Shanghai Gold Exchange, 15 May 2014

The quote above is for the benefit of anyone who refuses to acknowledge or accpet that the price of gold is manipulated by western Central Banks, led by the BIS, using the paper gold derivatives traded on the LBMA and the Comex as well as using “structured notes” in the OTC derivatives market. Those who assert that the precious metals market is not manipulated do so from a position of either complicity or ignorance.

The price of gold began spiking higher on Thursday, May 30th. Over that time period the front-month futures contract (August) has run from $1280 to $1340. I believe this is being driven primarily by the market’s perception – in response the steeply inverted Treasury and Eurodollar futures curves – that a significant problem or problems is/are occurring in the global financial system.

The idea for this chart came from a  chart I saw posted by @StockBoardAsset (he had it labeled “Gold/Silver”). The chart shows the XAU index since inception to the present on a monthly basis. I also edited the labels and added the British pound crisis label.

I like it because it shows why it’s highly probable that the precious metals and mining stocks – especially the mining stocks – are near the bottom of a long-term trading pattern that goes back 35 years. The low end happens to correlate with a period in which the stock market was at or near a top followed by a significant sell-off in stocks.

If I spent the time to create a chart showing the SPX to XAU ratio, it would look somewhat like the inverse of the chart above. I’m encouraged by the move in gold and silver over the last week. At some point there will be a pullback/ consolidation of the sharp price-rise. But if you study the chart above, it would appear that the mining stocks have the potential to make a big move in the 2nd half of 2019 and that move may be starting.

One of the “tells” which indicate the fundamental underpinnings are in place for a big move in the sector is the escalation in the frequency and intensity of price manipulation on the Comex.  The banks have been significantly enlarging their net short position in gold contracts plus the volume of PNT and EFP transactions (Privately Negotiated Trades and Exchange For Physicals) has increased substantially over the last couple of weeks. There’s a high correlation between the volume of PNT/EFP transactions and the price-capping efforts exuded by the Comex price-action.

Note: PNT/EFPs are a way for the banks to “deliver” under the terms of the Comex contract without producing and delivering an actual physical Comex bar, recording the serial number on the bar under the receiving party’s name and moving the bar into an allocated account. It’s an extension of the fractional bullion system that is used to manipulate the gold price. It allows the banks to deliver phantom gold in lieu of delivering real bars.

7 thoughts on “Gold, Silver And The Mining Stocks Are Showing Signs Of Life

  1. The comment at the top by Xu Luode, Chairman, Shanghai Gold Exchange, 15 May 2014 is now over 5 years ago. It is now time for China to make good on that statement. As I have written here before, it is now time the Shanghai Gold Exchange and other Gold Exchanges (Singapore, Dubai, etc) to announce that 1 oz. of gold will now be starting $10,000USD and reset the world’s gold price. What can the crimex & Lbma do about it – nothing! What can the WTO, IMF, BIS, CBs and other sham entities do about it – nothing! Time for the world to overrun the PM paper futures price suppression scheme.

    So the Dow gains 1,000 points plus based on pricing in rate cuts from the Fed. Another PPT sick joke. Their failed plan is to pump up the stock markets, backstop all big banks and give cheap free money away in a feeble attempt to stop a Global & U.S. recession and depression. This has been going on since 2008. Putin & XI just met in Russia and are digging in their heels. Not playing the game anymore.

    1. Why should they do that now as long as they can suck London drier and drier of fizz bullion? If one wants to maximize bullion holdings (long-term) would they not be happy about the artificially low prices? Many short-term price speculators (including some bullion holders) have been smothered and given up their metal (watching bitCON, stocks, bonds, and just about everything else SOAR; which is what we need for higher prices). Only when the last weak hand has let go of their bullion and/or London is sucked dry and has to default on metal obligations to the East will this paper charade called gold (and silver) “price” (a.k.a. the $-price for naked short/long futures contracts) end.

      Either way, short-term I think we’ve already fizzled out to the top and if the daily chart’s gaps are all to be filled, will more likely than not retrace most if not all of the move seen. Latest COT report also show that the evil empire has gone heavily short by the end of last Tuesday – I bet they wanna cash in on these shorts which will mean lower “prices” ahead – unless we break 1370 to the upside with gusto, but it doesn’t look like it for now… Time will tell before long how and when this is all going to change for good. When it will, $10k au might even be conservative and till then we’re likely to see even more price repression (and possibly huge “fiat-$-carrot” stock gains as the Fed will lower rates into the weakening global eCONomy.

  2. I just e-mailed the Shanghai Gold Exchange to both the President and Chairman and will see if I receive a response.

    Xu Luode left the SGE about May 2015 and was appointed executive vice president of Bank of China. However, I referenced his statement and made it all clear.

    We know that GATA has been there so many times in the past years speaking of this Western price suppression scheme.

    1. Please do let us know if you receive a response. Let me say that I applaud your activism and salute your optimism.

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