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SoT – Alasdair Macleod: If you’ve got gold, you’ve got money – If you haven’t got gold you’ve got a problem
Akin to ancient Rome, the United States has over-extended herself. She has created a climate that could easily be transformed into a war on a slight pretext. Wars, as it is well known are also a means a nation can extricate itself from debt and financial responsibility. – The U.S. Endgame, Jeremiah Johnson (nom de plume, retired U.S. Special Forces, excerpt from Zerohedge
One would have to be blinded from either denial or ignorance not see the escalating political and military tension between the U.S. and Russia/China. While the U.S. media spins the story into a tall-tale in which BRIC nation leaders are the provocateurs, the truth is that the U.S. has transformed its illegitimate “war on terror” into war on the world in a last-gasp attempt hold onto the economic and geopolitical hegemony it has enjoyed for several decades.
When you see that men get richer by graft and pull than by work, and your laws don’t protect you against them, but protect them against you – you see corruption being rewarded and honesty becoming a self-sacrifice – you may know that your society is doomed. – Francisco’s “Money Speech,” from “Atlas Shrugged”
If you reread that passage, think about how it applies to the Patriot Act, Homeland Security Act, Wall Street, the Justice Department and Hillary Clinton. It’s pretty obvious the U.S. is collapsing economically, politically and socially.
Perhaps the one last chance at saving the United States is embracing the truth – the truth as it is and not the “truth” the U.S. Government would have you believe. But economic and political truth is seeded in honest money – think about the Federal Reserve, the Comex and the political elitists in the context of this passage from “Atlas Shrugged:”
Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. – Francisco “Money Speech”
The San Francisco Fed’s “President,” John Williams was blowing his weekly smoke on Monday. He said that higher interest rates would trigger “big movements downward” in asset valuations. He didn’t exactly discover plutonium with that revelation. But with his comments, Williams inadvertently admitted that the policy makers were responsible for creating what is now the biggest asset bubble in history. This is not going to end well.
The Shadow of Truth hosted Alasdair Macleod for a discussion which ties into the ongoing financial, economic and political collapse of the United States. Alasdair offers some original insight into the manner in which the inevitable geopolitical and financial “reset” might unfold:
Until and unless you discover that money is the root of all good, you ask for your own destruction. When money ceases to be the tool by which men deal with one another, then men become the tools of men. Blood, whips and guns – or dollars. Take your choice – there is no other – and your time is running out – Francisco “Money Speech”
India’s Silver Imports Up Almost 200% In March
India’s silver bar imports jumped by nearly 200% in March according to data published by India’s Gems and Jewelry Export Promotion Council – LINK. On a trailing twelve month basis (April 2016 – March 2016), India’s silver imports jumped 33% over same period a year earlier.
John Brimelow (Brimelow’s Gold Jottings) commented in his early a.m. report that: “This suggests silver fabrication may have continued during the jeweler’s strike. Silver is not subject to the disputed duty. Silver was also almost unprecedentedly cheap compared to gold in March.”
Silver is poised to explode higher in price, which is why the bullion banks have printed a record number of paper silver Comex contracts with which to throw at the market. It’s my view that this market intervention scheme, which has sustained for over three decades, is on the verge of failing.
Global silver production declined in 2015, with silver production in Mexico down 6%. Mexico produces 31% of the global mine silver supply, The Daily Coin interviewed First Majestic’s Keith Neumeyer, who explains why silver is more rare than the market understands – you can access that interview here: Daily Coin / Keith Neumeyer
The Silver Market And Inaccurate Analysis
Commentary was posted on Zerohedge today about the silver market that needs to be swatted out of the air. Some investment advisor who for some reason gets air-time on Zerohedge posted an analysis which asserted that commercial hedgers hit their most “extreme net short position ever in silver futures” LINK. This is at least the fifth “analyst” I’ve come across who’s written, incorrectly, about this topic.
While it’s true that the open interest in silver hit a high as of LAST Tuesday (April 26), the “net short position” by the Commercial trader Bullion Bank segment, the trader segment to which Dana Lyons refers to as “smart money,” did not come close its most “extreme net short position ever.”
Since that COT report was released showing April 26th’s open interest, the open interest in silver futures has declined to 199k. As of the date of that COT report, the bullion bank short interest as a percentage of total open interest in silver is 71%. But the highest this ratio has been going back to April 2005 is 82%. The average short interest as percentage of total o/i over the time period is 63%. In fact, from the week ending December 9, 2005 to the week ending January 27, 2006, the short interest as a percentage of total o/i ranged between 78% and 82%, which is quite a bit higher than it is currently
During that week – which was the most extreme net short position taken by the bullion banks – the price of silver actually rose. More interestingly, that extreme net short interest in silver preceded a huge move that took silver from $9 in early December to an intra-day high of $15 (futures basis) the week of May 12, 2006.
There’s been plethora of repetitive precious metals market analysis that has proliferated recently. Many of these so-called “analysts” have not been around the precious metals market very long. The trader category which Dana Lyons references as “smart” money did not look so smart when its true net short positioning in the context of total silver futures open interest outstanding (Dec 2005 – Jan 2006) is assessed. And the trader category to which he labels “dumb” money made out like bandits.
Too be sure, there have been several periods in which the short term direction of gold and silver can be anticipated with better than 50% probability based on assessing the relative long/short distribution across the COT trade classifications. But a superficial analysis of the nominal open interest positioning is not the right tool to use in analyzing the driver of the gold and silver markets. And furthermore, the Comex is a small part of the overall global market equation.
The reality is that many of us believe, based on well over a decade – and in some cases several decades – of precious metals market assessment and participation that purveyors of paper derivative silver face a potentially bigger problem than with gold of finding enough actual physical silver to deliver into those paper promises should the “dumb” money in any unexpected quantities decide to stand still with their paper longs and demand physical delivery. And this why you get long term graph that looks like this:
Why Was A Mile Long Convoy Of U.N. Vehicles Travelling North Through South Carolina?
The building is burning and no one is leaving because the fire alarm has been de-activated – IRD long-time friend and colleague
A long-time friend/colleague of mine, who’s been involved in the precious metals world almost as long as me (2001) called this a.m. He was driving south from DC to Florida to visit some of his accounts (he runs high net worth managed accounts).
He said in South Carolina he saw a convoy of UN vehicles that was literally a mile long. He said it was nothing but heavy equipment carriers, cargo transport trucks and construction equipment trailers. He said the trucks and trailers were empty but they where beat up and looked well used. He said at first he thought it might be U.S. military equipment but saw that it was 100% U.N. transport vehicles. He said it was “very spooky.”
There’s civil unrest starting to break out in the U.S, albeit mostly connected to the Trump campaign. There’s all kinds of civil unrest breaking out all over Europe – very little of it is being reported in this country by the mainstream media. The EU military is rehearsing for civil war in Germany: LINK
The U.S., under the guise of “NATO,” has amassed 4,000 troops along the Russian border with Poland and three other Baltic States in “return to war planning exercises:” LINK
Sports Authority is now going to liquidate and shut down all of its 463 stores nationwide. Originally it had planned to close down 140. This is relevant because it is emblematic of the fact the economic condition is in a state of collapse. The deteriorating standard of living is the root cause of the civil unrest that is beginning to foment in this country and globally. Puerto Rico is defaulting on its debt, Atlantic City is going belly-up and Chicago is debt-engulfed zombie which has already experienced over 1000 murders this year.
The U.S. Government is working to provoke a large-scale global military conflict with the BRIC nations in response to the impending demise of the petro-dollar. Empiric rulers never willingly concede their hegemonic power without a fight. Something terrible on a global scale is brewing. Although still just a small percentage of the population in the U.S. is catching on to the truth, it’s large enough to cause problems for the elitists.
In thinking like a criminal, I fully expect the aristocrats running the show in DC and Wall Street to figure out a way to take down Trump. But the backlash from that from the populace will have to be dealt with. They’ll have to do a lot better than the fictitious lawsuit filed against Trump in California because everyone has already smelled the fraud in that case. Perhaps there’s some connection to the planning being done to deal with the growing civil unrest and the U.N. the mile long convoy of U.N. vehicles moving north through South Carolina.
It’s probably ultimately a waste of time to prep for what’s coming, unless you want to exist solely for the purpose of survival. But if you are going to make that attempt, you would be best advised to get all of your money out of custodial accounts and into gold, silver and lead.
The Precious Metals Train Is Leaving The Station – Especially Silver
The Nikkei is down 3.7% right now, the dollar index is below 93 and the U.S. seems bound and determined to start World War Three. The U.S. is collapsing and everyone in the world knows it but the majority of the U.S. population. Hubris rules the day in the Democratic Party as Obama is going on a farewell tour around globe to tell everyone he saved the world and Hillary Clinton feels confident enough to commit any kind of crime under the sun and get away with it.
Doc and Eric Dubin – The News Doctors – invited my onto Silver Doctor’s Weekly Metals & Markets show sponsored by SD Bullion.
“This Thing [the Comex paper short interest] Could Get OUT OF CONTROL to the Upside Quickly!” – Dave Kranzler, Investment Research Dynamics
Click on the image to the right below to subscribe to the Mining Stock Journal
Silver And Mining Stocks Continue Up The “Wall Of Worry”
Currently skepticism toward the ongoing rally in the precious metals sector is rampant. A lot of it based on shamelessly presented analysis of the COT data. But the COT data analysts have been wrong since March on their doom and gloom outlook based on the attributes of the long/short data in the weekly COT report.
Let me preface this with the proviso that the veracity of the COT data is predicated on the reliability of reports generated by the likes of JP Morgan, HSBC and Scotia. If these banks are providing bona fide, non-fraudulent Comex data reports, it would be the only area of their entire business for which they are not publishing corrupted financial information.
The narrative promoted by the various false prophets of the precious metals market will have you believe that the net short position of the Comex bullion banks and the net long position of the hedge funds is at a record high and thus we can expect a massive price decline because of this. But the presentation format is highly misleading.
My fund partner compiles the weekly COT data back to April 2005. Too be sure, the open interest in silver futures is at an all-time high right now. But the “net” short / “net” long is quite different than might be construed from the piggishly superficial drivel that has been published.
Currently, the bullion bank short interest as a percentage of total open interest in silver is 71%. But the highest this ratio has been going to April 2005 is 82%. The average short interest as percentage of total o/i over the time period is 63%. Now here’s the shocker: the highest the short interest as percentage of o/i has been is 82% . In fact, from the week ending December 9, 2005 to the week ending January 27, 2006, the short interest as a percentage of total o/i ranged between 78% and 82%.
For the week ending December 9, 2005 thru the week ending January 27, 2006, the price
silver traded higher (click on graph to enlarge). In other words, during a period of time when the relative short position of the bullion banks in relation to the total open interest was at its all time high, the price of silver moved up 37 cents, or 6%. And there was a violent price take-down in silver (and gold) but that did not occur until mid-May 2006.
Quite frankly I am as guilty as anyone out there in the obdurance of my view that a price correction bullion bank price take-down is imminent.
Too be sure, at some point there will be a hefty pullback in the precious metals market – nothing goes straight up. But anyone who asserts that the market is not manipulated by the bullion banks and the western Central Banks is either disingenuously persuaded by ulterior motives or is a complete idiot.
Make no mistake, in the context of the massive price manipulation of gold and silver that has occurred over the past 5 years, it’s become infinitely more difficult – as if it isn’t hard enough as it is – to use historical measurement devices in order to make educated guesses on the next directional move in any of the financial markets.
Obama’s Comments Are Mindblowing
I don’t know if he’s delusional and really believes what he’s saying or if he’s so used to saying the opposite of the truth that the lies just flow naturally out of his mouth. I just don’t know. But this I do know: the truth about anything is the opposite of what Obama claims to be the case. I just have to point to Obamacare to prove that point.
Fox News this morning is reporting that Obama’s Syria policy has failed. It’s more like Obama’s Presidency has failed.
Obama made the claim yesterday that the movie, “The Big Short” is a lie and that his Presidency reigned in Wall Street and made “the financial system more stable.” But the truth is that not only is “The Big Short” 110% true, the reality is that Wall Street’s fraud and criminality is worse now than it was during the housing bubble.
The reforms passed by the Obama Government not only did nothing to clean up Wall Street, but in fact these reforms were nothing more than acts of misdirection which enabled Wall Street to engage in even more recklessly fraudulent business activities.
This point of fact really struck hard the second time I watched the movie (two weeks ago). Not only is Wall Street’s lending and securitization activities just as corrupted now as it was then, it’s actually worse because it extends beyond mortgages and into any asset class which can be monetized with debt which is then packaged into derivatives-enshrouded “structured financial” instruments.
In 2008 the public was forced by Obama to bail out the securities divisions of the big Wall Street banks. After 2008 every big securities converted into a bank holding company. This has enabled all the big banks to shift their derivatives holdings out of their securities units and into their FDIC-insured bank holding shells. This time around the country will be asked to not only bail collapsed securities units, but the also the entire bank.
I suggested back in 2003, after I realized what was really happening in this country vs. the media-fed propaganda gobbled up by a dumbed-down, naive and faith-driven public, that the elitists would hold up this country with printed money and credit-based Ponzi schemes until they had swept every last crumb on middle class wealth off the table an into their pockets. Unfortunately for those of you who are worth several million based on whatever value measurement of your assets you want to use, you are middle class.
The truly wealthy strata of elitists are ones who have enough spare cash sitting in offshore tax haven accounts to buy several of their own Congressmen. Hillary Clinton may be worth $10’s of millions that have been transferred to her by these elitists, but she’s no more than a pawn. She will be destroyed or put out to pasture with the likes of Jon Corzine or Franklin Raines when they are done with her. The rest of us are mere ants, waiting to by squashed by Orwell’s “boot stamping on a human face.”
The U.S. financial system is edging closer every day to a collapse that will make everyone long for simply a repeat of 2008. The amount of debt that has been assumed by all segments of the system is far greater now than it was in 2008. Same with the amount of derivatives connected to this debt. The only difference is that the rules were changed by Congress and the SEC to enable the banks to more effectively hide the truth.
I had a long conversation with Paul Craig Roberts last night and we both agreed that if applied a true market to market on the pension system in this country, just about every single pension fund would be 80-90% underfunded at the very least. An underfunded pension is no different than a securities account on margin. The looming pension disaster is one of the primary reasons the Fed is working overtime to keep the stock market from collapsing.
The wife of a friend and colleague of mine is reading “1984” for the first time. He told me that he hears occasional “gasps” of shock and horror coming from her as she reads. The gasps are because she knows that what is unfolding right now in this country is very similar to the world portrayed by Orwell when he wrote the book. She remarked in amazement “how did he know back then what was going to happen to this country?”
The Precious Metals Are The Market Story Of The Year So Far
“Short gold on market overreaction” – Jeffrey Currie on CNBC on Feb 16, 2016; CNBC host: “Is there any commodity that you can recommend to help our viewers make money?” Jeffrey Currie: “Short gold” – CNBC on April 5, 2016;
Goldman Sachs’ Jeffrey Currie has become the “Jim Cramer” of the gold market (click on graph to enlarge). When he
issues a table-pounding call, do the opposite. When gold was approaching its bottom around the $1050 level, Currie’s price target was $800. Much the same way Wall Street banks like Goldman, with AAPL at $96 and down 27% since July have been forced to lower their price target from $200 to $150, Currie was forced to raise his price target for gold to $1080. And he’s still pounding table with a “short gold” advisory. I guess when he receives a taxpayer-subsidized seven-figure bonus every year, he doesn’t mind looking like a total idiot with regard to the market.
To be sure, there’s several developments that warrant designation as the market story of the year so far. The shocking performance of the stock market would likely get the nod except for the now-obvious fact that the Federal Reserves continuous intervention is the force behind the stock market’s buoyancy. In relation to the true underlying fundamentals, perhaps the only two markets in history that have been more irrational are the Dutch tulip bulb mania of the 1630’s and the Weimar Republic stock market from 1914 – 1923.
Without a doubt in my mind, the move up in the precious metals sector since January 20th is the market story of the year so far. What makes this even more remarkable is the relentlessness of the move despite the obvious repetitious attempts by the Federal Reserve/bullion banks to push the price of gold/silver lower with fraudulent Comex paper derivatives, as evidenced by the rapidly escalating amount of paper gold/silver contracts printed and sold into the “market.” The open interest of paper in relation to the amount of underlying deliverable physical gold/silver on the Comex has been multiplying recently at a geometric rate.
This rise in the price of gold/silver has ensued despite a plethora of skepticism from even the traditionally bullish precious metals-investing analysts. Most market prognosticators – and I’m more less guilty of this myself – have been forecasting a sharp pullback/correction in response to market technicals which heretofore have signaled the imminence of a massive bullion bank price attack.
Further contributing to the surprising price-behavior of gold is the absence of Indian imports which push the market higher with elephantine seasonal demand at this time of year. India’s import machine has been effectively shut down from a jeweler’s strike since March 1. This source of physical demand has begun to stir, which could make the present build-up in the paper short interest in gold and silver particularly interesting to watch.
There’s a flood of capital on the sidelines that stands ready to move into the sector but that is waiting for a big price pullback before initiating or adding to position. The “smart” institutional money has been unloading historically overvalued stocks and is loathe to buy near-zero yielding Treasuries. Perhaps this dynamic in and of itself will pre-empt any meaningful price corrections for the time-being. While it may feel like the metals and mining stocks have made an unsustainably large move since mid-January, these two graphs below provide some perspective on the “scale” of the current move (click to enlarge):
As you can see, the two graphs of gold and the HUI index, while making a large percentage move since mid-January, have barely moved the needle in relation to their mid-bull market tops in 2011.
For as brutal and relentless as the manipulated price correction has been for the last five years, we can expect the next move higher to be a least as equally forceful in its power and durability. Make no mistake, the underlying fundamentals which triggered the de facto financial system collapse in 2008 and drove the precious metals sector its peak in 2011 have become even stronger since the advent of QE – the money printing which further fertilized and enabled these systemically catastrophic inducing trigger-points.
The junior mining stocks are set up to provide life-style changing wealth creation. But finding the ones that are bona fide companies is a challenge. The Mining Stock Journal presents bi-monthly commentary and insight to the precious metals market plus a well-researched junior mining stock idea with each issue. You can access the current report plus the back-issues (distributed via email) here: Mining Stock Journal. The issue that will be published today presents a relatively undiscovered and incredibly undervalued company.
The FOMC’s Cirque du Merde
Silver continues to trade DIFFERENTLY, in a positive manner that it has not done in YEARS. The potential for the silver price to explode in the very near future is all there. The shares continue to maintain their own positive tone and refuse to give up much ground on corrections. – Bill Murphy from GATA’s Midas report
Nearly the entire precious metals investing community looks at the Comex options expiration and the Fed’s FOMC meetings with trepidation, as historically those two events have triggered a massive Comex paper attack on the price of the metals. Having both events back to back in the same week elicits even more fear. Of course, Goldman Sachs commodities clown, Jeffrey Currie, was on CNBC again today calling for $1000 gold. This guy has absolutely no shame about continuously making an idiot of himself with his price predictions for gold.
I exchanged emails with Bill Murphy on Tuesday morning because the precious metals, especially silver, were unexpectedly buoyant in the morning. I wrote last week that the Comex bullion banks, based on the put/call open interest for May silver, were incentivized to make sure silver closed below $17 today for options expiry.
I emailed Bill asserting that “they” can’t keep the metals down. Gold spiked at 9:00 EST 
on no news or event that would have triggered a spike The 5-minute graph indicates that it started to move up and then short-covering kicked in. Silver started to move and then there’s a red bar and then silver pops. That tells me that they tried to hit silver to keep it from popping but short-covering still kicked in. (click on image to enlarge)
The 60 minute bar chart of silver shows silver oscillating between $16.80 and $17.30 since 
last Tues, with a move up that was slammed with a paper hit on Thursday. But silver refuses to go lower at the direction of the Fed/bullion banks. At this point silver could break either way. They are very desperate to keep it from breaking up, but they seem incapable, at least for now, of forcing it lower. (click on image to enlarge)
The charts smell of serious desperation. Most gold commentators are pointing at the COT structure and sweating bullets. That side of the ship is too crowded in my opinion. We may well get another surprise move higher tomorrow after the FOMC’s Cirque du Merde show is over. Gold and silver are definitely behaving differently than we’ve seen over the last 5 years. The criminal bullion banks seem to be having trouble pushing them lower.
Last week I was invited on a Denver-based radio show, Wake Up With Steve Curtis. We discussed a lot of the factors that are underpinning this surprising strength in the precious metals. You can listen to the podcast here:
I will be publishing the latest issue of the Mining Stock Journal on Thursday. I’ll be featuring a relatively undiscovered junior mining company that has 5+ million proved ounces of gold and silver in the ground. You can access this report here: Mining Stock Journal. I am sending the back-issues to new subscribers but this won’t last much longer.
“Looking forward to the next mining recommendation. I sold my TAHO Sep 12.50 for a nice profit and need a place to put some of it.” – Subscriber “Ed”
China And Russia Look To Take Over Global Gold Trading
BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets,” First Deputy Governor of the Russian Central Bank Sergey Shvetsov told TASS – RT.com, April 19
The article in RT.com from which the above quote is sourced surprisingly did not receive a lot of attention from the alternative media. Perhaps it was overshadowed by the highly anticipated move by China to commence fixing the price of gold on the Shanghai Gold Exchange in yuan. I suggested that we would not see an immediate impact on the price of gold, which we have not, but that the move was part of a larger plan by China to “de-dollarize” the world.
Also largely ignored by the alternative media was the fact that Russia added another 500,000 ounces of gold to its Central Bank reserves – data provided by Smaulgld.com. To put this into some context, currently the Comex, which is sporting over 50 million ounces of paper gold open interest, is reporting 643k ounces of gold designated as available for delivery (“registered”). In 2015, Russia added a record amount of gold tonnage to its Central Bank stash.
I would argue, as would many, that China and Russia are strategically and methodically weaning the world off paper gold and fiat currencies and are looking to officially remove the dollar from its reserve status and to re-introduce gold into the global monetary system – without triggering WW3. Of course, this would explain the Obama Government’s recent military belligerence toward both countries…
Dennis Gartman, among many others, has expressed anxiety over the net short position in gold futures by the “commercial trader segment” bullion banks per the Commitment of Traders report. The fear is that the banks are getting ready to attack the price of gold with another hedge fund “long liquidation” operation. This, of course, is a trading pattern in the precious metals that we have become accustomed to enduring since the bull market began in 2000/2001. Obvious manipulation that for some reason seems to be undetectable by the Government regulators (CFTC) who are paid by the Taxpayers to enforce laws.
I looked at some statistics from the COT data that goes back to 2005 (compiled assiduously by one of the partners in the investment fund I co-manage). While the net short position in gold futures held by the bullion banks, 240,121 per the latest COT report, is quite a bit higher than the average net short over the period (-161,781), it’s not even close to the highest net short of -308,231 in December 2009 or -302,740 in September 2010. In 2009, gold sold off for a bit after that -308k reading but in 2010 gold continued higher toward $1900 after the -302k reading.
The point here is that the relative net short position held by the criminal bullion banks is not necessarily the best predictive metric with which to forecast the next move in the price of gold. Furthermore, it’s quite possible that the physical gold market activities being conducted by China and Russia will act as a counter-force to the manipulation efforts exerted by the western Central/bullion banks.
I have argued for years that traditional chart and t/a analysis applied to the precious metals is thoroughly useless because of the high degree of intervention by the Central and bullion banks.
With that reservation about using charts, I wanted to present a couple charts of gold and one of the dollar because, in my view, gold is potentially set up for a monster move higher and the dollar appears to be potentially headed off the proverbial cliff (click on images to enlarge):
The graph on the above-right is a 10-yr weekly of gold. You can see that over this time period, the price of gold is still exceedingly “oversold” per the TRIX indicator. The graph on the above-left is a 1-yr daily which shows that gold has been “oscillating” laterally in a consolidation formation. It’s brushing up against its 50 dma (yellow line). Of course, at this point, the price of gold could “break” either way, higher or lower. Perhaps even a quick trip down to its 200 dma (red line). Having said that, the longer term graph of gold, combined with the massive demand for physical gold from Russia and China, suggests that every manipulated price hit should be aggressively bought. You can see the dollar (lower left graph) is positioned treacherously, as it has traded well below its 50 dma and could be headed lower. Certainly the ongoing economic and political deterioration of the United States is not giving anyone a reason to buy dollars.
There’s been a lot of “chatter” about whether or not the mining shares, which have had a tremendous run since mid-January, are “overbought.” The general consensus is that the mining shares are due for a pullback and I know a lot of my subscribers are hesitant to buy right now. My view is that, in the context of the brutal beating inflicted on the miners since March 2011 by overt manipulative forces – from both official entities and predatory hedge funds – it’s impossible to determine a true measure of “overbought” because the mining shares have been oversold for nearly five years.
I’m in an email group with a very impressive roster of precious metals investment and analytic professionals. One of them who is rather well-known made this comment today, which I thought summed up the situation perfectly: Now everybody is desperately waiting on the sideline to build up a first positon in gold, silver and miners, but nobody wants to buy into the rally, but rather buy into a correction… that’s why I am convinced, that every bigger dip will be bought and gold might head to 1,400-1,500 by year end!
The next bi-monthly issue of my Mining Stock Journal will be released Thursday. I have a sub-50 cent junior exploration stock to present with a market cap that is likely 1/10 the intrinsic value of the Company given the amount of proved gold and silver it has already discovered. This company is self-funding for now as well. You can access the next issue plus I’m offering the four previous back-issues (for now) by clicking here: Mining Stock Journal.
