Precious Metals Are Ripping Higher As The Government Jobs Report Loses All Credibility

The Government’s non-farm payroll report announced the creation of 242,000 news jobs in February. When the numbers hit the newswires, the Fed trading algos triggered a 12 point spike up in the S&P 500 futures and a $14 cliff dive in Comex gold futures.

The Government’s propagandized economic reporting has deteriorated into nothing more than an epic insult to anyone with two brain cells to rub together. Beyond that, the reports are nothing more than a source of embarrassment for the “experts” who gather on the financial networks to dissect and analyze the numbers for the purpose of “baptizing” the report.

But once the momentum from the Fed’s intervention had subsided, the SPX futures quickly retreated into a loss for the day and gold spiked up as much as $20.  The response to the Fed’s “invisible hand” in the market reflects the fact that these blatantly rigged Government-produced economic reports have lost all credibility with the market’s smart money:


Gold and silver this week have traded in complete defiance of Wall Street’s “siren call” for a big price correction. The Goldman Sachs analyst, Jeff Currie, incessantly insists on embarrassing himself with a forecast of $800 for Wall Street’s Pet Rock. Contacts at Goldman told me he was instructed under no uncertain terms wipe some of the rotten egg off his face and get on CNBC to raise his target to $1000.

The behavior of gold this past week reflects an increasing loss of credibility in not just Government economic reports, but also a deteriorating faith in the fiat nature of the U.S. dollar. How can anyone place any faith in a Government which is comprised of nothing but thieves have any “credit” to back its currency?  As it stands now, the U.S. dollar is backed by a technically bankrupt Government run by corrupt politicians who serve as well-paid human puppets for the banking and corporate interests who control them.

On an interesting note, it was reported today that is suspending issuance of new shares in its physical gold ETF (ticker: IAU) due to a shortage of registered shares: LINK.  This is highly misleading because market makers can borrow shares and short them to buyers. Currently there’s only 2.4 million shares short in IAU out of 635 million shares issued. That’s only .3% of the float, which means there’s 10’s of millions of shares available to borrow and short in order to satiate buyer demand.  Compare this to GLD, which has 4.5% of the float shorted right now.

The real reason Blackrock had to suspend issuance of shares is because it is seeing something in the physical market that is stopping the firm from creating new share “baskets” which require the procurement of physical gold to back those “baskets.”  The best bet is that Blackrock knows it will ultimately be unable to buy enough physical gold on a timely basis to back the registration of new shares if called upon to do so.   In other words, there is a short of Pet Rocks.

Gold and silver are moving higher because all signs indicate that the markets are broken and the Government is beginning to lose control over the system.   The flow of capital out of paper assets and in to physical gold and silver is further evidence that the Government, Wall Street and the financial markets are both quickly losing credibility.

14 thoughts on “Precious Metals Are Ripping Higher As The Government Jobs Report Loses All Credibility

  1. Everybody has been talking about auditing the FED. Won’t happen. I’d prefer auditing GLD anyways. I don’t trust these asswipes.

  2. I’m not sure if you remember – but aprox. 6 weeks ago I said the Chinese were trying to buy up the Mom&Pop Placer Gold production in Canada from myself & other Placer operators …. at that time; I said with the Chinese trying to buy up the Mom&Pop Placer Gold production that the Chinese were scrapping the bottom of the barrel for supply ….. as you can see from this Blackrock news; I wasn’t exaggerating about the shortage of supply.

  3. If the Fed hadn’t meddled with the markets, prices would have fallen further for 1-2 years more, then recovered gradually and be at realistic levels now. But instead, they succeeded in only reflating the bubble, making buying as well as renting unaffordable for the average worker. The only people who have benefited from the so called recovery are Hedge funds, banks, Venture capitalists capitalizing on the tech bubble, geeks who float tech companies, real estate speculators, and rental property owners. Sensible people who wanted no part of this craziness and who never engaged in reckless speculation are getting punished for no fault of their own. The Federal reserve and its shenanigans need to stop!

  4. Dave, listening to the last bit of the Turk interview, I think Rory , James & yourself touched on the real reasons for the spike. I rang a dealer that holds’ stuff here in OZ friday& the thing is he said things have gone a bit crazy(he never use hyperbole at least not before) ,, I mean the phiz market in gold. The upper middle class are starting to panic and hedge real-estate exposure etc.
    The thing with silver is the real sleeping giant, the lower and working classes’ when that side wakes up, I mean world wide…the paper money markets will be toast JMO but the thing is no one, i mean no one with half a brain that is not American here is talking $US anymore…6 months’ ago everyone was…Dave in short i think it’s over & it come’s before Trump is president, like the next 3 months’ JMO

    1. “The thing with silver is the real sleeping giant, the lower and working classes’ when that side wakes up, I mean world wide…the paper money markets will be toast…”

      Red, that is true IF the lower and working class has any fiat left after living expenses to buy silver with. That or a small number of very wealthy individuals or corporations buying…particularly corporations who use silver. A corporation may have the capital [or access to it at low interest rates] to buy their own stock to jack the price up [artificial demand].. or maybe they realize silver will cost more next year so they see purchasing extra not just as an expense, but an appreciating way to park capital for a while. What if three of the top ten silver users in the the top industrial countries each decided to buy an extra million ounces of silver this spring…and word got out they had.

  5. Also Dave how many deliverable ounces of any metal did you say are at any of these paper exchanges? (rhetorical) OOh gee I wonder why there are suddenly all these billionaires running around JIZZING up the $US fraud…is it because every one of them HAS to stay long the $US….in order to mathematical retain anywhere near the imaginary purchasing power of their imaginary wealth. Seriously some of these guys ..even the ones playing the straight out folksy crap…I am not saying i don’t admire some of these guys ….but seriously do you have to be so god damn greedy …yes that is all it is ….straight out greed….you’ve got the floor 3..2…1 C’mon I know some of you “creators” read Daves blog…..

  6. I live in Perth and have been buying for years from the Perth mint. I have always simply driven in and generally been able to get a park spot right in front, go in purchase.
    I have always wondered how long i could keep doing this as the day would come when the panic really hits and lines of people would be trying to purchase metal from the mint.
    The only problem will be, will there be any metal to sell the hordes, it seems not.This panic is so close you can smell it.

  7. Had detailed plans in place to stake ground in the Yukon last season, did not work out. Really motivated to get the job done on a 5 mile lease this season, although there will be many Albertan’s heading up north due to the oil patch crash. However I am undeterred, one better than owning gold in a time of crisis is to own a placer mine. At least I can buy myself a job. I agree with the timing on the crash, my theory is it will be before the election, that way Obama will get his 3rd term or more. As the alternative is to assassinate Trump before he is sworn in, & the Rothschild / Fed Reserve group will, but that is a last resort to keep him out of office.

    1. Love your thinking!! I’ve done exactly the same here in OZ!! I own actually tiny amounts of real metal, but the property I recently bought in reasonably under worked old placer zone may have anything from 50 to a thousand oz still in ground… so when genius’s turn up to rob..I can truly say take all you want here is the detector and shovel it may take you a month or so to find some 🙂

  8. Even more Cassandras out this weekend, I see. I suppose that if it’s been a winning trade all the time, then why wouldn’t one continue to utilize it, given COT positions and technicals – until it isn’t, I guess. But who knows?

    I just can’t believe that there never seems to any entity of size calling their bluff. If you want to shoot big game on the Serengeti, you hang around the watering holes. The COT leverage position seems to be a pretty big watering hole to me. Maybe the Hedge Hunters are too worried about being dinner themselves, as I’m sure they’re financed by these same TBTF banks in the cartel.

    1. I guess the only entity that would call the cops on the party would be one that is ready to leave and doesn’t want to be a party participant in the future.

      Who knows what level of cooperation or participation the CME et al have with foreign governments?

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