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Category Archives: Ted Bultler

Here We Go Again!

04 Thursday Jun 2009

Posted by jschulmansr in 10 year Treasuries, 20 yr Treasuries, Austrian school, banking crisis, banks, bear market, bonds, bull market, capitalism, central banks, commodities, deflation, depression, dollar denominated, dollar denominated investments, Dow Industrials, economic, economic trends, economy, Fed Fund Rate, Federal Deficit, federal reserve, Finance, financial, follow the money, follow the news, Forex, fraud, Fundamental Analysis, futures, futures markets, gata, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, hard assets, How To Make Money, hyper-inflation, inflation, Investing, investments, Jschulmansr, Make Money Investing, manipulation, market crash, Markets, mid-tier, mining companies, mining stocks, oil, Paladium, palladium, physical gold, platinum, platinum miners, precious metals, price, price manipulation, prices, producers, production, protection, rare earth metals, recession, risk, run on banks, S&P 500, safety, silver, silver miners, Silver Price Manipulation, sovereign, spot, spot price, stagflation, Stimulus, stock market, Stocks, Strategic Metals, Strategic Minerals, Strategic Resources, TARP, Technical Analysis, Ted Bultler, The Fed, Tier 1, Tier 2, Tier 3, TIPS, Today, U.S., U.S. Dollar, volatility

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Tags

ANV, Austrian school, AUY, Bailout News, banking crisis, banks, bear market, Bollinger Bands Saudi Arabia, bonds, Brian Tang, bull market, CDE, CEF, central banks, China, cobalt, Comex, commodities, Copper, crash, Currencies, currency, Currency and Currencies, deflation, Dennis Gartman, depression, DGP, dollar denominated, dollar denominated investments, Doug Casey, economic, economic trends, economy, EGO, Federal Deficit, financial, Forex, FRG, futures, futures markets, gata, GDX, GG, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, GTU, hard assets, HL, hyper-inflation, IAU, India, inflation, investments, Jeffrey Nichols, Jim Rogers, John Embry, Keith Fitz-Gerald, majors, Marc Faber, market crash, Markets, Michael Zielinski, mid-tier, mining companies, monetization, Moving Averages, NAK, NGC, NXG, PAL, palladium, Peter Grandich, Peter Schiff, physical gold, platinum, platinum miners, precious metals, price, price manipulation, prices, producers, production, protection, recession, risk, run on banks, safety, Sean Rakhimov, silver, silver miners, SLW, small caps, sovereign, spot, spot price, stagflation, SWC, Technical Analysis, TIPS, U.S., U.S. Dollar, volatility, warrants, XAU

Here We Go Again! (DJI) Key make or break point 8750. The rah rah is working partially and so stocks continue to creep up. However after looking at Gold, Oil, and Treasuries we have to ask what is really about to happen. Here’s my take in one word… Inflation. Now let’s make that word a little bit more truer… Hyper-Inflation! Yes, my readers that is what is about to come up. You may now just be starting to hear the mainstream press talking about inflation fears, but still they have their heads in the sands and are going on ad nauseum about the glimmers of recover and how were are in a new Bull market for stocks. The only real Bull Market for Stocks are in the hard assests sectors i.e. Gold, Silver, Oil, and the like. Oh, don’t get me wrong, I think the (DJI) will make another stab at 9000 if it can successfully break thru the (DJI) 8750, (S&P 500) 975. Failure here means the beginning of the downward spiral all the way down to (DJI) 6500 again. The Dollar is doomed and is already on the way down. Just think what happens to your purchasing power with the Dollar going down and inflation kicking in? Definitely not a pretty picture!

Now for Gold and Silver is there any doubt? To the moon Alice! Do yourself a favor take your profits out now in Stocks and put them into hard assets.  The reason is simple, they tried to manipulate the prices yesterday by taking huge short and driving Gold down to $960 level. Then look what happened today Gold came screaming back. Gold will take out the $1007 barrier! There will be resistance and more huge short positions taken around $990 in a last vain attempt/manipulation to hold Gold back, but it will fail. Remember to preserve the purchasing power of your dollar is to buy Gold and Silver, especially Silver NOW! Get aboard the Precious Metals train now, it is leaving the station… Good Investing! – jschulmansr

ps- I promised a HOT Stock go to last section of today’s post.

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Claim a gram of FREE GOLD today, plus a special 18-page PDF report;

Exposed! Five Myths of the Gold Market and find out: 

  • ·        Who’s been driving this record bull-run in gold?
  • ·        What Happens When Inflation Kicks In?
  • ·        Why most investors are WRONG about gold…
  • ·        When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault

====================================================

Today only One Article – I know you just can’t wait for the Hot Tip, so if in a hurry scroll down to bottom/end of post. But then COME back and read this article and click on the links within the article to learn what is really going on with Precious Metals price manipulation. -jschulmansr

Will a ‘Silver Bullet’ Finally Kill the Metal Manipulators?- Seeking Alpha 

By: Jeff Nielson of Bullion Bulls Canada

In my previous commentary, “Silver market fundamentals DISTORTED by bullion-ETFs”, I pointed out how (so-called) “bullion-ETFs” were (with rare exceptions) merely a tool of the manipulators – with two primary purposes.

First of all, bullion-ETFs soak-up billions of investor-dollars each year, which would otherwise be invested in real bullion, or in the shares of precious metals miners. Naturally, this has helped to depress the price of silver, and severely depress the price of silver miners – since almost all of the diverted investor-dollars were diverted from the miners, and not bullion, itself. I also showed how these fraudulent investment vehicles have been used to artificially inflate the supposed inventory-levels of silver stockpiles.

Specifically, at a time when actual silver inventories are at their lowest level in centuries, the (supposed) amount of “bullion” these funds claim to hold has singlehandedly resulted in “official” inventory levels tripling in just three years – after plunging by 90%.

Today’s market price is based upon these phony “inventories” despite the fact that the bullion-banks who claim to hold all this silver are never subjected to audits, to determine that they are not only holding enough silver to cover their custodial agreements with the “bullion-ETFs” – but are also holding sufficient silver to cover the MUCH larger “short” positions of these Manipulators (see “Silver Manipulation the worst in history – Ted Butler”).

Unless and until there is such a full and complete audit, the only rational assumption for investors is this supposed “tripling”of inventories is totally illusory, which also means that the “bullion” that is claimed to be held by these bullion-ETFs is also illusory.

As I have also mentioned before, it is elementary economics than any “good” which is undervalued will be over-consumed (relative to its current price). Thus, we have TWO extremely important dynamics which are setting up this sector for a final “implosion” of the criminal conspiracy by the anti-precious metals cabal.

First, price-suppression means the (actual) tiny inventories of silver are still declining not increasing. It is simply absurd to claim that with record, investment demand and declining mine production (due to the dramatic cuts in base metals production) that inventories are increasing. The under-pricing of silver simply confirms this trend.

Secondly, with real inventories only 1/3rd of what is claimed by the Manipulators, continuing to under-price silver (through continued manipulation) must result in a supply “squeeze” which inevitably causes the price to “spike” (and begin to correct toward some sort of medium-term equilibrium). Given that there has been no similar depletion of gold stockpiles (merely the transfer of ownership), it is far more likely that the final defeat of the anti-gold cabal will be accomplished via a default in silver markets.

The BIG question in the minds of all precious metals “bulls” is when and how will this final victory occur?

Many commentators have pointed to the rigged Comex markets in New York as the place where the final destruction of the Manipulators will occur. However, with the short positions of the bullion-banks, and their (supposed) “custodial agreements” with the bullion-ETFs being “two sides of the same coin”, then implosion could originate in either component of this fraudulent manipulation.

A bullion-default at the Comex (or “Crimex”, as some like to call it) is a very simple scenario. The Comex is essentially selling its phony, “paper” futures for less than any other bullion market. Thus, at some point, large buyers will simply step into this market and continue relentless, heavy buying until default occurs.

Specifically, there would be a “failure to deliver” of bullion to a buyer (or buyers) – who chose to hold their futures contract until expiry, and thus take “physical” delivery of real bullion. As has been reported by several commentators, apparently such a default nearly occurred just weeks ago (see “Did ECB save Deutsche Bank from Comex gold-default?”).

There has been a great deal of frustration among the “gold bugs” (in particular) that such a final “show-down” has not already taken place. However, perhaps we would all be more patient in this respect if we were to try to put ourselves in the position of such big “players”.

Looking at silver, based on fundamentals, it is totally obvious that silver is headed for a spectacular explosion in its price. At a time of record demand for gold and silver, there are lower inventories of silver (relative to gold and in absolute terms) than at any time in centuries. Simultaneously, the gold/silver price ratio is more unfavorable for silver than at nearly any time in history, currently over 60:1. The long-term price ratio (over thousands of years) is 15:1. Additionally, as “elements” in the Earth’s crust, silver is only 17 times as plentiful as gold. Thus, a 60:1 ratio is not remotely sustainable, even over the medium term.

Therefore, armed with the knowledge that investing in silver will yield a huge windfall for all long-term investors, do you (as a large “player” in the silver market) force the inevitable implosion now (and “kill” the proverbial “goose that lays the silver eggs”) – or, do you patiently use the Manipulators game against them: buying as much grossly undervalued silver as you can from these criminals, before their inevitable self-destruction?

From this perspective, it is suddenly much less automatic that the demise of the Manipulators will occur at the Crimex.

I would remind people about an event which went practically unreported last year in North America: at the time of AIG‘s near-bankruptcy, the European bullion-ETFs “guaranteed” by AIG briefly plunged in value – to a price MUCH lower than the nominal price of the bullion they (supposedly) held. The reason? Investors were “betting” in a clearly visible manner that if AIG was forced into bankruptcy it would not be able to honour its “custodian agreements” with these bullion-ETFs – leaving the investors in these funds holding paper and not bullion.

Thus, the outrageously expensive bail-out of AIG (over $180 BILLION, and counting) was not undertaken solely in order to secretly funnel roughly $10 billion into the vaults of Goldman Sachs. It was also bailed-out to prevent a domino-like chain of events. All it will take is for one “bullion-ETF” to default, and then the entire scheme/scam of the Manipulators would inevitably collapse.

The sequence of events is obvious: after seeing one group of bullion-ETF investors wiped-out (or nearly so) by fraud, then obviously the unit-holders for all (so-called) bullion-ETFs would demand thorough and honest audits of the bullion-banks who are essentially running these scams.

Even if the bullion-banks could scrounge-up enough bullion to cover their “custodial agreements”, there would be little if anything left over to “cover” their much larger “short” positions. With “blood in the water”, futures-buyers would obviously immediately start lining up for “delivery” at the Crimex – hoping to be the last buyer to grab some real bullion before the Manipulators were completely wiped out.

Thus, there appear to be three very plausible scenarios leading to the destruction of the Manipulators, and the explosion of the price of gold and silver.

  1. The frequently-predicted default at the Comex;
  2. The bankruptcy of one (or more) of the bullion-banks; or
  3. A default of one or more bullion-ETFs through a thorough audit being performed.

Given what the U.S. government has already shown it was willing to spend to “defend” AIG’s custodial agreements with bullion-ETFs, the second scenario would appear to have the least probability of occurring. However, there is still somewhere close to a quadrillion dollars of derivatives floating around in Wall Street’s private “casino”. Any surprise-implosion of a position in this market could create such unimaginable losses (hundreds of times higher than those of AIG) that a bail-out would simply be impossible to ram-through the corrupt, U.S. government – without literally setting off a second “American Revolution”.

Personally, I see the default of the bullion-ETFs to be slightly more likely than any other scenario for destroying the Manipulators. As with any scam, the larger it grows, the greater the likelihood of exposure. When bullion-ETFs were first created, their claim that they could buy infinite amounts of bullion, with zero “premiums” and store all this bullion for zero storage costs attracted little attention.

With the holdings of these bullion-ETFs rapidly approaching the total annual production of precious metals miners, and already being larger than the national stockpiles of almost every nation on Earth, this obviously-suspect “business model” will attract increasing doubt and skepticism among informed investors – until even blind/deaf/dumb “regulators” are forced to conduct a reputable audit of this sector.

For those hoping to read precisely when and where the Manipulators will meet their final defeat, I suppose you will be disappointed. Sorry, but I’m an “economist” – not a “psychic”. However, hopefully readers will derive some use out of this commentary.

First, because of depleted inventories, it is much more likely that it will be a silver default which “kills” the Manipulators, instead of a gold default. Secondly, as precious metals investors wait for this inevitable occurrence, you are reminded that there are three potential developments to watch for – and not just a “failure to deliver” at the Comex.

In the meantime, any/every investor who continues to add to his (or her) precious metals positions (preferably during short-term dips) is guaranteed to be richly rewarded. Given the extremely uncertain times in which we live, the reward of financial security is “precious”, indeed.

Disclosure: I hold no position in bullion-ETFs.

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One last note- I didn’t forget my promise, here is another HOT stock to buy and forget (hold). (WTMNF) a junior explorer West Timmins Mining. Currently trading in the .70 to .80 cent level.  I have mentioned before load up on the junior and mid-tier Precious Metals Producers, but to throw in some good exploration companies. West Timmins fits in the latercategory. They have the financing in place and are currently drilling. Here is a copy of one of their press releases from May 12th, 2009. I think it speaks for itself. -Good Investing! -jschulmansr 

WTM Intersects 13.64 g/t (0.40 oz/t) over 8.20 metres (26.90 feet) on North Zone Target, 100% owned Thorne Property, Timmins, Ontario

Bonanza grades confirmed including  41.30 g/t (1.20 oz/t) gold over 2.40 metres (7.87 feet) 

West Timmins Project drill program to be expanded

(Vancouver, May 12, 2009) – West Timmins Mining Inc. (WTM:TSX) (“WTM” or the “Company”) today announced that bonanza grade gold mineralization has been intersected from the North Zone on its 100% owned Thorne Property, part of the Company’s West Timmins Gold Project, in Timmins, Ontario. All three holes testing the North Zone returned high-grade gold mineralization, highlighted by hole GS09-31 which returned 8.20 metres (26.90 feet) grading 13.64 g/t (0.40 oz/ton) gold, including 2.40 metres (7.87 feet) grading 41.30 g/t (1.20 oz/t) gold.
 
“The North Zone adds another zone of high grade gold mineralization over significant widths on our 100% owned property package in Timmins. These results continue to confirm the presence of multiple high grade gold zones located in close proximity to each other in the West Timmins District. This clustering of high-grade gold zones is perhaps the single most significant characteristic of the Timmins Camp. History does appear to be repeating itself in the west end of the Camp” said Darin Wagner, President and CEO of West Timmins Mining. “WTM will immediately expand the scale and scope of our drill program on our 100% owned properties in Timmins and welcomes the recently announced expansion of the drill program on the adjacent Thunder Creek Joint Venture.”
 
WTM now has six expanding zones of high-grade gold mineralization located within 3 kilometres of each other in the West Timmins District: the Rusk and Porphyry Gold Zones on the Thunder Creek Joint Venture, the High-grade and Central sub-zones within the Golden River West Zone, the Hwy 144 Zone where high-grade intercepts have recently been reported and now confirmation of continuity and bonanza grades from the North Zone.

The North Zone is located along the northern flank of the Golden River Trend on WTM’s 100% owned Thorne Property. Historic work in the North Zone area has been re-interpreted based in large part on the recent discoveries of high-grade gold mineralization on the Company’s adjacent Thunder Creek Property and within the Golden River West Zone. This work has lead to the identification of a steeply plunging zone of high-grade gold mineralization. The North Zone mineralization is characterized by silica veining and flooding associated with significant visible gold mineralization and is very similar to many of the vein-style gold deposits in the Timmins Camp. Drilling has also intersected additional gold bearing structures beneath the North Zone, the NL1 and NL2 structures, which remain open for additional testing – again characteristic of gold systems in the Camp.

On-going exploration activities are focussing on the area between the Timmins West (now Timmins) gold deposit and the Destor-Porcupine Fault, located 5.0 kilometres to the south, where multiple gold-bearing systems have been confirmed within WTM’s extensive West Timmins Project land holdings. The Destor-Porcupine Fault is a deep-seat fault system which can be traced throughout the entire Timmins Camp.

Quality Control and Assurance

Geochemical results reported are from halved drill core samples collected from WTM’s 100% owned Thorne Property, part of the Company’s West Timmins Gold Project. Core samples were collected by employees and consultants in the employ of the Company and are subject to the Company’s quality control program. Sampling was conducted on site at the Company’s exploration office in Timmins, Ontario and sealed samples were transported to Swastika Labs preparation facilities in Swastika, Ontario. Samples were assayed for gold by standard fire assay- ICP finish with a 30 gram charge. Gold values in excess of 3.0 g/t were re-analyzed by fire assay with gravimetric finish and intercepts returning in excess of 8.0 g/t, or displaying visible gold mineralization, were re-analyzed by pulp screen metallic assaying for greater accuracy. The remaining half of the drill core is stored on-site at the Company’s Timmins exploration office. 

For quality control purposes blank, duplicate and analytical control standards were inserted into the sample sequence at irregular intervals. Mr. Darin Wagner (M.Sc., P.Geo), the Company’s President, has acted as non-independent qualified person for this news release. The qualified person has visited the project site, examined the intervals reported and, has verified that any significant analytical discrepancies have been resolved and that the reported results meet the Company’s quality control standards.

About West Timmins Mining Inc. (www.westtimminsmining.com):
 
WTM is focussed on the exploration and development of district-scale gold projects in the major gold camps of North America. The Company is advancing the high-grade Rusk and Porphyry Gold discoveries on its Thunder Creek joint venture in Timmins, Ontario and continues to test the nearby 5.0 kilometre long Golden River Trend. WTM also has active gold exploration projects in Mexico, highlighted by the high-grade Lluvia de Oro gold-silver Project in Chihuahua State. West Timmins Mining is based in Vancouver, British Columbia, Canada and trades on the Toronto Stock Exchange under the symbol WTM.
 
On behalf of the Board of
West Timmins Mining Inc.
 
“Darin W. Wagner”
 
Darin W. Wagner
President and Chief Executive Officer
For further information contact:
John Toporowski, Manager, Investor Relations
West Timmins Mining Inc., Vancouver
Tel: (604) 685-8311 / Toll Free: (866) 685-8311
E-mail: jtoporowski@westtimminsmining.com
 
The TSX has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
 
For further details on West Timmins Mining Inc. please refer to prior disclosure at www.sedar.com. The securities described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended, or under any U.S. state securities laws, and such securities may not be offered or sold in the United States absent an exemption from such registration requirements.
 
This press release contains forward looking statements within the meaning of applicable Canadian and U.S. securities regulation, including statements regarding the future activities of the Company. Forward looking statements reflect the current beliefs and expectations of management and are identified by the use of words including “will”, “expected to”, “plans”, “planned” and other similar words. Actual results may differ significantly. The achievement of the results expressed in forward looking statements is subject to a number of risks, including those described in the Company’s annual information form as filed with the Canadian securities regulators which are available at www.sedar.com. Investors are cautioned not to place undue reliance upon forward looking statements.  
>READ PDF – Complete With Maps and the Entire Press release

===================================================

Claim a gram of FREE GOLD today, plus a special 18-page PDF report;

Exposed! Five Myths of the Gold Market and find out:

  • ·        Who’s been driving this record bull-run in gold?
  • ·        What Happens When Inflation Kicks In?
  • ·        Why most investors are WRONG about gold…
  • ·        When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault

====================================================

Nothing in today’s post should be considered as an offer to buy or sell any securities or other investments; it is presented for informational purposes only. As a good investor, consult your Investment Advisor/s, Do Your Due Diligence, Read All Prospectus/s and related information carefully before you make any investing decisions and/or investments. –  jschulmansr

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I’m Back- Time to Play!

27 Wednesday May 2009

Posted by jschulmansr in 10 year Treasuries, 20 yr Treasuries, agricultural commodities, alternate energy, ANV, Austrian school, AUY, Bailout News, banking crisis, banks, bear market, Bear Trap, Bollinger Bands Saudi Arabia, bonds, Brian Tang, bull market, CDE, CEF, central banks, China, cobalt, Comex, commodities, Contrarian, Copper, crash, Currencies, currency, Currency and Currencies, deflation, Dennis Gartman, depression, DGP, dollar denominated, dollar denominated investments, Doug Casey, Dow Industrials, economic, Economic Recovery, economic trends, economy, EGO, Fed Fund Rate, Federal Deficit, federal reserve, Finance, financial, follow the money, follow the news, Forex, FRG, Fundamental Analysis, futures, futures markets, gata, GDX, GG, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, GTU, hard assets, HL, How To Invest, How To Make Money, hyper-inflation, IAU, IMF, India, inflation, Investing, investments, Jeffrey Nichols, Jim Rogers, Jim Sinclair, John Embry, Julian D.W. Phillips, Junior Gold Miners, Keith Fitz-Gerald, majors, Make Money Investing, Marc Faber, market crash, Markets, Michael Zielinski, mid-tier, mining companies, mining stocks, monetization, Moving Averages, NAK, NGC, NXG, oil, PAL, palladium, Peter Brimelow, Peter Grandich, Peter Schiff, physical gold, platinum, platinum miners, precious metals, price, price manipulation, prices, producers, production, protection, rare earth metals, recession, risk, run on banks, safety, Sean Rakhimov, silver, silver miners, SLW, small caps, sovereign, spot, spot price, stagflation, Stimulus, stock market, Stocks, SWC, Technical Analysis, Ted Bultler, The Fed, Tier 1, Tier 2, Tier 3, TIPS, Today, U.S., U.S. Dollar, uranium, Uranium Miners, volatility, warrants, XAU

≈ Comments Off on I’m Back- Time to Play!

Tags

ANV, Austrian school, AUY, Bailout News, banking crisis, banks, bear market, Bollinger Bands Saudi Arabia, bonds, Brian Tang, bull market, CDE, CEF, central banks, China, cobalt, Comex, commodities, Copper, crash, Currencies, currency, Currency and Currencies, deflation, Dennis Gartman, depression, DGP, dollar denominated, dollar denominated investments, Doug Casey, economic, economic trends, economy, EGO, Federal Deficit, financial, Forex, FRG, futures, futures markets, gata, GDX, GG, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, GTU, hard assets, HL, hyper-inflation, IAU, India, inflation, investments, Jeffrey Nichols, Jim Rogers, John Embry, Keith Fitz-Gerald, majors, Marc Faber, market crash, Markets, Michael Zielinski, mid-tier, mining companies, monetization, Moving Averages, NAK, NGC, NXG, PAL, palladium, Peter Grandich, Peter Schiff, physical gold, platinum, platinum miners, precious metals, price, price manipulation, prices, producers, production, protection, recession, risk, run on banks, safety, Sean Rakhimov, silver, silver miners, SLW, small caps, sovereign, spot, spot price, stagflation, SWC, Technical Analysis, TIPS, U.S., U.S. Dollar, volatility, warrants, XAU

I’m back but before we get into the markets, I want to give everyone Thanks for your prayers for my Dad. We though we were about to lose him. So, I arranged for everyone to come out and see him, even his Grandkids. The visits perked him up tremendously. I continued to stay with him along with my wife. We took him out to his favorite restaurants and other places. So for the 3 weeks we were there he gained 16lbs, his color came back, and his body even started to produce Red Blood Cells. Even though he still needs occasional transfusions, was a major step in the right direction.He has regained his will to fight instead of giving up and slowly dying. So a very heartfelt Thank You to all who were praying! Each of you is very appreciated and I know God will Bless You manifestly in return…

Now for the markets… Wow! these last three weeks have been very interesting! When was the last time you have seen Stocks, Gold, and Oil rally at the same time? I will use the Dow (DJI) for my post today and provide links to some excellent analysis on the S&P 500 and Crude later in the post. Once again 8500 is the key marker for the Dow, failure to close strongly and move higher will mean we have a head and shoulders top here. A breakout above 8640 will confirm continued uptrend. Conversely a break below 8265 will mean the beginning of a strong correction to the 8000 level first and then 7850. If screams below that then down to 7500 with a test of the low around 6547. Personally I predict we will test the lows of 6550 first before we will ever see the DJI at 9000 or even 10,000. Sorry you bulls out there that is what I see in the charts.

For my favorite complex of Gold, Silver and Precious metals, a breakout over $978 signals a new strong push over $1000, or at least another test. Personally, I like the action of Gold here, building a nice base at $950. I predict that Gold will break $978 and push up to approximately $1075 to $1090 on the first leg. We will see a normal retracement down to $950- $975 and then blast off to $1150 -$1250. I personally think with the inflation shoe about to drop, coupled with the remaining half of the derivative crunch. We can easily see $2250 to $2500 Gold by the end of the year. Keep accumulating Gold and Precious metals especially the junior and mid-tier producers. There are still companies out there selling at or below book value.

I just came across a sweet little play in the cobalt industry, supplies are dwindling fast and there will be a shortage just at the time this company comes on line with production. This company will have the only high grade cobalt production in the United States and will be able to supply approximately 12-14% of Cobalt needs for the USA. If you check out what Cobalt is used for you will understand why this stock ahs the potential to be a Grand Slam. Production is anticipated to be approximately 1525 tons per year with a 10yr life based on current reserves. I just received an offer to buy this tip along with an advisory service for $297 yr. I’ll give it to you for free. That’s just the kind of guy I am, LOL! The name of the company is Formation Capital Corp. Trading symbol (FCACF). I just picked up a bunch @ .35 cents/share, but as always do your due diligence, read the prospectus and company reports. If nothing else put (FCACF) on your watch list / radar.

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Subject: Two trending markets revisited and analyzed for you 

Last week I watched a video analysis of the S&P and Crude Oil markets. The technical analysis was right on at the time, but those markets have changed quite a bit in the last few days. The S&P had a huge rally and Crude seemed to steady out, so what’s the new analysis? Glad you asked!

Below are two free videos, one on Crude Oil and one on the S&P, that gives us an indepth technical look into these markets. Again the videos are free and very informatitive. Just Click on the Links Below…

          S&P Video Analysis:                                                    Crude Oil Projections:

Here’s your chance to analyze that stock you have been thinking about adding to your portfolio. Just enter the ticker of any company, name of a commodity, or forex pair and get your complimentary technical analysis. It cost you nothing and and no payment info will ever be requested.

Click Here To Enter Your Symbol/s

===================================================

Claim a gram of FREE GOLD today, plus a special 18-page PDF report;

Exposed! Five Myths of the Gold Market and find out: 

  • ·        Who’s been driving this record bull-run in gold?
  • ·        What Happens When Inflation Kicks In?
  • ·        Why most investors are WRONG about gold…
  • ·        When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault  

====================================================

Now for some current news…

Peter Schiff on $1000 Gold and Senate Bid – Gold Stock Bull

Source: Gold Stock Bull and Fox News

Peter Schiff was on Fox Business today and made the following points:

* Gold to break $1,000 soon and push much higher this time
* 50% or more of Peter Schiff’s liquid assets are in gold/gold stocks
* Most people should have 10-20%, more if you are young and aggressive
* Many gold stocks could go up 50 or 100 times from current levels
* At some point, the rest of world will stop lending the United States money
* America is in for a rude awakening, when we have to return to producing and saving again
* It is impossible for the U.S. government to pay back its debt. Default is only option.
* Peter Schiff might run for Senate in Connecticut

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A new site that is in pre-launch state that will become a virtual world – chat, shop, play, videos, etc. Anyways they are giving free shares (that should become actual company shares) to anyone who signs up and more shares if you refer people.

===================================================

What Is Even More Enticing than Gold? SILVER! — Seeking Alpha

By: Andrew Mickey of Q1 Publishing

The dollar is out. The U.S. dollar index has fallen 5% in the last week.

Treasury bonds are quickly falling out of favor. The yield on 10-year Treasury bonds has climbed from 2.5% to almost 3.5% since March signaling inflation fears and an unwillingness to fund ballooning government borrowing.

Gold is hot. Gold prices are back on the rise and gold stocks have done even better.

Is this a sign of things to come?

Well, if you take a look at the mainstream headlines, you’d think so.

An editorial headline on Bloomberg proclaims, “Dollar is dirt, Treasuries are toast, and AAA is gone.”

Even CBS News is warning, “Inflation could be coming to a U.S. dollar near you.”

To me, it seems just like a typical overreaction in the short-term.

Yes, the long-run trend for the dollar is down as the Fed keeps printing more and more of them and monetizing government debt. And yes, the prospects for gold get brighter and brighter with each passing week.

But there’s no reason to lose your head here. It’s going to take a few years for all this to play out. And the window of opportunity is still wide open to buy precious metals, real assets, and assets not denominated in the dollar (like ADRs).

That’s why, despite the strong interest in gold at the moment, I encourage you to continue to look for value in the sector. Right now, there seems to be some exceptional value in an asset which is so undervalued, it could outpace gold by 400% or more.

I’m talking about Silver.

When Gold Climbs, Silver Soars

In the past few weeks gold has been getting a lot of attention. With all the big money finally taking a liking to gold, the attention is justified. Remember, a turn in the big money’s attitude towards gold must happen before gold can break through the $1,000 mark and stay there.

The excitement surrounding gold’s surge has only pushed silver further onto the back burner. (You don’t hear about any major hedge funds loading up on silver do you?) And that’s the point. Gold is hot and silver is – in a relative sense – not.

So if you want to find an investment which isn’t so hot but still has a lot of potential in an inflationary environment, you’d want to look at silver. When you do, it won’t take long to realize silver – at current levels – could easily trounce gold in the months and years ahead.

That’s right. Silver has a much brighter future than gold. All you have to do is look at the silver / gold ratio to see how potentially lucrative the situation has become.

Ratios Don’t Lie

We’ve looked at a few ratios in the past. The reason is because ratio analysis can help identify value even in volatile markets. For instance, we looked at how the gold / oil ratio was signaling oil was a buy back in January. Oil prices are up almost 50% since then.

We looked at gold / gold stocks ratio back in December. We saw that gold stocks were significantly undervalued relative to gold. Since early December, gold is up a respectable 22% while gold stocks – as a group – have rebounded 70%.

That’s the value of ratio analysis. They can quickly show you how undervalued some assets are relative to others. And if you’re able to find them at extreme points, you can get into a trade or investment with less risk and greater upside.

Right now, the gold / silver ratio (the measure of how many ounces of silver can be bought for an ounce of gold) is at an extreme and working its way back to historical norms.

The chart below shows the gold / silver ratio is slowly working its way back to a much more normal level:

Gold-Silver

As you can see, the gold / silver ratio hung around 50 for most of 2008. Then the credit crunch threw everything out of whack and now it’s slowly working its way back to normal. But this chart doesn’t show the real upside in silver. That comes from the long-run average.

Over the long term, the gold / silver ratio has averaged about 30. That means one ounce of gold would buy about 30 ounces of silver. Today, with silver at $14.60 an ounce and gold at $953, the gold / silver ratio is 65. In other words, an ounce of gold would buy 65 ounces of silver. That’s more than twice the long-run average.

Silver prices would have to double just to be in line with the long run average.

Silver Slingshot

But here’s the kicker, when gold races, the gold to silver ratio gets flipped around. During the last precious metals bull market in the late 70s and early 80s the gold / silver ratio hit lows of 15.

That means if gold goes nowhere (granted, chances are pretty slim of that), silver could easily shoot up to $50 an ounce. That’s a 400% move for silver without gold moving up a single dollar.

Here’s the thing though, gold isn’t staying where it is. Over the next few years, gold is going much higher. And silver is going to go even higher. Silver will slingshot past gold.

Think about it. With a gold / silver ratio of 15…

At that ratio, silver would be at $66 when gold hits $1,000.

$1,500 gold = $100 silver.

$2,000 gold = $132 silver.

So if you expect gold to do well, you’ve got to expect silver to do even better.

According to the historical relationship between gold and silver, if gold does well, silver will do exponentially better. In past gold bull markets, silver prices zoomed past gold in relative terms. There’s no reason to expect this time to be any different.

In Search of Value

In the end, precious metals have been one of the few sectors which have maintained an uptrend through all this. As the long run prospects for the U.S. dollar continue to worsen, I expect the uptrend to continue. However, I expect this to take a longer time to play out than most.

Just take a look at what happened earlier this week. The Financial Times reported China is continuing to buy U.S. Treasuries. Granted, they’re switching to short-term durations, but they haven’t even come close to invoking their “nuclear” option yet and probably won’t for a long while.

We’re in the midst of a slow and steady decline of the dollar. The Fed is printing dollars to fund the growing government deficits and there haven’t been any significant inflationary consequences…yet.

That will change and it’s not too late to get prepared. Now is the time to buy precious metals and precious metals miners for your portfolio. Right now, with the gold / silver ratio indicating silver as undervalued and gold a hot topic, silver is a bit more enticing.

===================================================

Claim a gram of FREE GOLD today, plus a special 18-page PDF report;

Exposed! Five Myths of the Gold Market and find out: 

  • ·        Who’s been driving this record bull-run in gold?
  • ·        What Happens When Inflation Kicks In?
  • ·        Why most investors are WRONG about gold…
  • ·        When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault  

====================================================

                                        – Trend Analysis Revealed –

Substantial moves like the ones that we have recently witnessed present opportunities to succeed or fail in the markets. Traders who stayed on the correct side of the trend were rewarded substantially.

Serious questions effecting your portfolio still remain:

– Have we seen the Indexes bottom or top?
– Is a reversal in the near future?
– Is it too late to go short?

Stay on the correct side of the market. Let our Trade Triangle technology work for you. It’s free, It’s informative, It’s on the money.

Free Instant Analysis delivered to your email inbox. Analyze ANY Stock, Futures, or Forex symbol.

Click Here For Your Free Analysis

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Nothing in today’s post should be considered as an offer to buy or sell any securities or other investments; it is presented for informational purposes only. As a good investor, consult your Investment Advisor/s, Do Your Due Diligence, Read All Prospectus/s and related information carefully before you make any investing decisions and/or investments. –  jschulmansr

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How to Catch A Fool

16 Monday Mar 2009

Posted by jschulmansr in ANV, Austrian school, AUY, Bailout News, banking crisis, banks, bear market, Bollinger Bands Saudi Arabia, Brian Tang, bull market, CDE, CEF, central banks, China, Comex, commodities, Copper, Currencies, currency, Dan Norcini, deflation, Dennis Gartman, depression, DGP, dollar denominated, dollar denominated investments, Doug Casey, economic, economic trends, economy, EGO, Federal Deficit, financial, follow the news, Forex, FRG, Fundamental Analysis, futures, futures markets, gata, GDX, GG, GLD, gold, Gold Bullion, Gold Investments, gold miners, GTU, hard assets, HL, How To Invest, How To Make Money, hyper-inflation, IAU, India, inflation, Investing, investments, Jeffrey Nichols, Jim Rogers, Jim Sinclair, Joe Foster, John Embry, Jschulmansr, Junior Gold Miners, Keith Fitz-Gerald, Latest News, majors, Make Money Investing, Marc Faber, market crash, Markets, Michael Zielinski, mid-tier, mining companies, mining stocks, monetization, Moving Averages, NAK, NGC, NXG, oil, PAL, palladium, Peter Grandich, Peter Schiff, physical gold, platinum, platinum miners, precious metals, price, price manipulation, prices, producers, production, protection, recession, risk, run on banks, safety, Sean Rakhimov, silver, silver miners, SLW, small caps, sovereign, spot, spot price, stagflation, Stimulus, Stocks, SWC, TARP, Technical Analysis, Ted Bultler, TIPS, Today, U.S., U.S. Dollar, volatility, warrants, XAU

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ANV, Austrian school, AUY, Bailout News, banking crisis, banks, bear market, Bollinger Bands Saudi Arabia, Brian Tang, bull market, CDE, CEF, central banks, China, Comex, commodities, Copper, Currencies, currency, deflation, Dennis Gartman, depression, DGP, dollar denominated, dollar denominated investments, Doug Casey, economic, economic trends, economy, EGO, Federal Deficit, financial, Forex, FRG, futures, futures markets, gata, GDX, GG, GLD, gold, gold miners, GTU, hard assets, HL, hyper-inflation, IAU, India, inflation, investments, Jeffrey Nichols, Jim Rogers, Joe Foster, John Embry, Keith Fitz-Gerald, majors, Marc Faber, market crash, Markets, Michael Zielinski, mid-tier, mining companies, monetization, Moving Averages, NAK, NGC, NXG, PAL, palladium, Peter Grandich, Peter Schiff, physical gold, platinum, platinum miners, precious metals, price, price manipulation, prices, producers, production, protection, recession, risk, run on banks, safety, Sean Rakhimov, silver, silver miners, SLW, small caps, sovereign, spot, spot price, stagflation, SWC, Technical Analysis, TIPS, U.S., U.S. Dollar, volatility, warrants, XAU

A new week and I have a new warning… What I mentioned before in previous posts is starting to happen. We are now starting to hear the “bottom” is coming in place for Stocks and the Economy, everyone from Benanke to many “name” financial advisors are starting to jump on the bandwagon. Sure enough this morning the “sheeple” started to put their money back into stocks. The Dow is currently up 70 points and Gold was down $13.00. Nasdaq hasn’t ever gotten out of the negative yet today. This is how I see it- we will probably have a nice rally at least this morning as smaill investors pile in thinking “we are close to the bottom or at it so lets get in now so we won’t miss it!” My key resistance points for the Dow, are around 7300- 7320 and the S&P 500, 770-775. If those are cleared we have the potential for a really big up day. However if the markets can not successfully get above those points, Bang! the Bear Trap is sprung!. Be careful out there and Buy Gold now while you can still catch the market before we run to $1050, and later by end of year $1250-$1500, maybe even higher as inflation will really be clicking in from all the money flooding the world economies now. I especially like the Precious Metals producers as a whole many good bargains to be found out there. Even bullion bought now should produce minimum $100+ oz. gain over the next few months. Be a wise and prudent investor – not a “fool”. Remember a “fool” and his money are soon parted! Good Investing- jschulmansr 

=========================================================

Claim a gram of FREE GOLD today, plus a special 18-page PDF report; Exposed! Five Myths of the Gold Market and find out:

·        Who’s been driving this record bull-run in gold?

·        What Happens When Inflation Kicks In?

·        Why most investors are WRONG about gold…

·        When and How to buy gold — at low cost with no hassle!

Get this in-depth report now, plus a gram of free gold, at BullionVault

=========================================================

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Guru’s Say Bottom Near – Financial Times

Source: Financial Times

Gurus say bottom near

By Pauline Skypala

Published: March 15 2009 09:36 | Last updated: March 15 2009 09:36

 

He said much the same in October last year, so in a video interview, FTfm asked why he thought he was right this time. Opening with the remark that it is “very difficult” to get market timing right, Mr Bolton said he looked at three factors: the history of bull and bear market cycles; sentiment – how investors are behaving and thinking; and valuations. Those reached an extreme back in November that he thought might have marked the final low, and again in the first week of March.

“That is why I think we are pretty near the end of this pretty awful bear market,” he said.

He is not talking about a bear market rally, he added, but the start of a new bull market. Mr Bolton, and Fidelity International, generally advise against trying to time markets. Investors should hold on through thick and thin to avoid missing out on the best days that often come when the market turns, they have frequently said.

Mr Bolton now appears to be timing markets. He admits to being “a bit foolhardy going against my own advice” but remains consistent in putting out the message that it is hard to time markets and most private investors should employ a buy and hold strategy.

He believes all risk assets are now attractive, not just equities. The only one that looks less attractive is government bonds, where there could be a bubble building, he says.

He is not alone in his assessment. Jeremy Grantham, co-founder of GMO, told clients in a newsletter last week to adopt a reinvestment plan and stick to it.

GMO made one very large reinvestment move in October and has a schedule for further moves contingent on future market declines, he says, in the belief that a few large steps are better than many small ones.

Mr Grantham is not brimming with confidence but says it is vital to have a battle plan, otherwise paralysis sets in. He points out that in June 1933 the US market rallied 105 per cent in six months long before all the bad news had played out. Similarly, in 1974, the UK market jumped by 148 per cent in five months. “How would you have felt then with your large and beloved cash reserves?” he asks.

In common with Mr Bolton, he advises the market is a powerful discounting mechanism. Investors who wait for light at the end of the tunnel will miss the upturn.

The market turns “when all looks black, but just a subtle shade less black than the day before”.

Copyright The Financial Times Limited 2009

=========================================================

Fed’s Bernanke sees recession ending ‘this year’ – Market Watch

Source: Market Watch

Calls health of banks key, but worries about lack of ‘political will’

By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — The chairman of the Federal Reserve said in a rare interview televised Sunday that the U.S. recession will come to an end “probably this year,” but he also warned that the nation’s 8.1% unemployment rate will continue to rise.
Appearing on the CBS network’s “60 Minutes,” Fed Chairman Ben Bernanke told correspondent Scott Pelley that concerted efforts by the government likely averted a depression similar to the 1930s. He also said the nation’s largest banks are solvent and that he doesn’t expect any of them to fail.
At the same time, Bernanke expressed concern the U.S. might lack the political will to take further measures to shore up the financial system. Although he said he believes the largest banks are solvent and that “they are not going to fail,” Bernanke said a full recovery won’t take place until the system is stabilized.
“The lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis,” he said. Bernanke noted that banks are unable to raise cash from private investors as is normally the case because of fears about their solvency.
The 15-month recession, which began in December 2007, is set to become the longest in the post-World War II era. The downturn took a sharp turn for the worst last September after the collapse of the Wall Street brokerage Lehman Brothers.
“Lehman proved that you cannot let a large internationally active firm fail in the middle of a financial crisis,” Bernanke said.
The same error was made 80 years ago when the U.S. government let thousands of banks fail, contributing to the Great Depression, said Bernanke, a former economics professor who’s extensively studied the 1930s. Another big mistake the Fed made back then was to let the supply of money contract, he said.
Since the crisis exploded last fall, Bernanke has sought to avoid both mistakes. The Fed and Treasury have committed hundreds of billons to the bailouts of banks, insurers, mortgage lenders and other entities. While Bernanke said he understood the public’s outrage at the cost, he said they were necessary to prevent a more severe contraction and steeper job losses.
Bernanke also pointed out the bailout aid doesn’t come directly from taxpayers and is “more akin to printing money than it is borrowing.” He said the Fed can adopt that approach because the economy is very weak and inflation is low.
Once the economy begins to recover, Bernanke said, the Fed will have to raise interest rates and reduce the supply of money to “make sure we have a recovery that does not involve inflation.”
The Fed chairman said the recovery won’t begin until early 2010 and will take time to gather steam. He reiterated his call for an overhaul of the nation’s financial regulations — the first in decades — to prevent similar financial conflagrations.
Bernanke is the first sitting Fed chairman to conduct a television interview in 20 years. End of Story
Jeffry Bartash is a reporter for MarketWatch in Washington.
=======================================================
What Do Those Who Called The Downturn Think? – MarketWatch
Source: MarketWatch
OUTSIDE THE BOX

A few who got it right

Commentary: What do those who called the

downturn think?

By Howard Gold
ORLANDO, Fla. (MarketWatch) — The financial markets are littered with the broken reputations of so-called “experts” who failed to anticipate the global financial crisis, or the recession and bear market that have followed.
Finance ministers, central bankers, Wall Street strategists, famed economists, hotshot hedge-fund bosses, former star mutual fund managers and, yes, journalists and cable-television bloviators all dropped the ball big time in the years leading up to the current meltdown.
But a handful of brave souls got it right. Economist Nouriel Roubini, analyst Meredith Whitney and some others have gone on to fame and fortune for warning about the disaster to come.
They weren’t alone. Economist Gary Shilling, options specialist Larry McMillan, strategist Sandy Jadeja and market technician Dan Sullivan all saw a big bear market ahead and advised moving money to the sidelines before the roof collapsed. We caught up with them in the midst of this week’s rally to get their take on what’s ahead.
Most believe we’re getting pretty close to a market bottom, but we’ll have to go through more pain before we get there. None thinks the current rally is for real.
Shilling, a longtime Cassandra and publisher of “Insight,” has warned about the housing and credit bubbles for years and repeatedly predicted that the current recession would be deep. His 13 predictions for 2008 were right on the money.
Excess housing
And guess what? He’s still bearish on housing. Shilling estimates there’s excess inventory of 2.4 million homes on the market and “it’s taking a long time to work that [down.]”
That’s why home prices have a way to go before they bottom: He’s looking for a peak-to- trough decline of 40% in housing prices nationwide. As of the fourth quarter, the 20-city Standard & Poor’s/Case-Shiller home price index had fallen 27% from its high in 2006.
At the bottom, Shilling expects some 25 million borrowers will be underwater on their mortgages. That’s half of all mortgages and one-third of all owned houses in the U.S. Similarly, he doesn’t think the current recession will end until at least early 2010. That would make this the longest recession by far since World War II.
He thinks the market might actually bottom some time this summer at around 600 on the S&P 500 – at 15 times estimated earnings of $40 — six months or so before the economy does. But he doesn’t see prosperity just around the corner.
“It took about 30 years to build up the credit bubble,” he says. “My guess is, five to ten years to unwind this.”
“What it probably means,” he explains, “is longer and deeper recessions and shorter recoveries — and reflecting that, shorter, less exuberant rallies and more frequent and deeper bear markets.”
Thanks, Gary.
Short-term concerns
Options specialist Larry McMillan, president of McMillan Analysis Corp., typically looks at trading patterns over weeks and months rather than years. But he still doesn’t like what he sees.
“I don’t see a bottom in this leg here,” he says. “I find this market to be strangely calm. People have not panicked. All the pros are picking the bottom.”
That, he argues, means investors haven’t capitulated yet, the true sign of a market bottom.
McMillan has been cautious since late 2007, although he has traded in and out of rallies. He can’t say where the ultimate bottom will be. “I don’t have a target,” he says. “I’m looking for a spike in volatility that washes this thing out.”
He’s waiting for the Chicago Board Options Exchange’s volatility index, or VIX, to shoot up into the 60s from the 40s and 50s now, and then fall back. “That to me would be capitulation,” he says.
Until then, he advises being out of the market — or staying short.
Market projections
Technical analyst Sandy Jadeja, chief market strategist for ODL Markets in London, did have a target: 6425 in the Dow Jones Industrial Average. On March 9, the Dow hit 6440 at one point before Tuesday’s massive rally.
He thinks Wednesday’s higher close for the Dow is a good sign for the short run. The Dow was up nicely Thursday morning on retail sales data that were slightly better than expected. He’s looking for a rally that would take the Dow back up to 8300.
But don’t count on much more than that, he cautions.
He says 6400 is “a critical level going back to 1987, the 1930s and the 2002 lows.” He expects it to be retested, and if the market can’t hold that support level, then it could go a lot lower.
He thinks the bear market could hit bottom in 2010 or even 2011 or 2012. “5300 is the most probable low,” he says. But Fibonacci and Elliot Wave analysis — tools used by technical analysts — may point toward 3700-3800 as the ultimate bottom. Ouch.
Less gloomy
Another prominent technician isn’t quite that gloomy. Dan Sullivan, who has published “The Chartist” newsletter for four decades and has beaten the market consistently over the last 25 years, according to the “Hulbert Financial Digest,” advised clients to go 100% into cash as early as January 2008.
He, too, is looking for a 15%-20% rally that would take us into the 800s on the S&P 500, but then he says we’ll retest Monday’s S&P close of around 676.
“I think it’s a bear-market rally, so I’m advising subscribers to sell into the rally [or stay on the sidelines],” he tells me.
Like Shilling, he expects to see a market bottom or new buy signal some time during the summer. But for now, he says, “this is not a good time to buy.”
That’s my take, too. Although the Dow and S&P have lost more than half their value — no doubt the lion’s share of what we’re going to see in this bear market — I think we have more to go on the down side in view of the knotty problems we face.
So, if you’re young and saving for a distant retirement, this isn’t a bad time to make regular contributions to a 401 (k) plan.
But if you’ll need that money sooner, I’d keep my powder dry, and wait for those who really got it right to change their minds.
Howard R. Gold is executive editor of MoneyShow.com. The opinions expressed here are his own. End of Story
=======================================================

Joe Foster: Chemistry Is Good For Gold – Seeking Alpha

Source: SeekingAlpha and The Gold Report


In this exclusive interview with The Gold Report, geologist Joseph M. Foster—a Van Eck Associates portfolio manager who also leads its International Investors Gold Fund—sees nothing but good news for gold in the months and years to come. Joe isn’t holding his breath for mania to set in, but he does see a mix blending that will get gold “firing on all cylinders.” Once a declining dollar, increasing inflation and an improving economy fill the combustion chamber, all it will take is a sustained spark of optimism for gold to forge ahead.
The Gold Report: We appreciate the opportunity to talk with you fresh from site visits in Mexico and the BMO Global Metals & Mining Conference in Florida. What do you see for gold in ’09 and ’10?
Joe Foster: Our outlook is quite favorable. We’re into a new phase of this bull market that’s been going on since 2001. The credit crisis, everything that’s happening to the global economy and the reaction of the governments and the monetary authorities set up a very, very positive environment for gold, not only in the near term, but going out many, many years.
TGR:What launched this the new phase?

JF: Earlier in the cycle, it was more an inverse dollar play. We’ve had a bull market in gold. The dollar had embarked on a bear market and gold reacted to the inverse of that. What’s changed is that the level of risk to the financial system has elevated dramatically and we’ve come into an environment where even if we have a strong dollar, we can also have a strong gold price. Investors are genuinely frightened and it’s brought a whole new dynamic to the gold market.

TGR:Where do you see this taking gold?

JF: I’d have to split it into a near-term and a longer-term outlook. First of all, looking at the near term, gold is finding support now because we are in crisis mode. The financial system has not been fixed yet. The economy is in decline. In that environment, investors are seeking gold as a safe haven. They’re also seeking out the U.S. dollar as a safe haven. So that’s creating investment demand for the metal.

Jewelry demand, however, has fallen off a cliff—it’s almost non-existent right now and a lot of scrap is coming into the market. Two dynamics in the gold market are pulling against each other: strong investment demand and very weak jewelry demand. I would see gold somewhat range-bound as long as we’re in crisis mode, being pulled by these two factors. We test $1,000, we pulled back, we’re sitting here around $940 an ounce. It wouldn’t surprise me to see it range-bound between $800 and $1,100 an ounce for the next six months or so until we see some sort of resolution to the situation.

As we look further out, you have to wonder if everything the government is doing will work and whether the laws of unintended consequences play out down the road. Will all this stimulus create inflationary pressure looking out into 2010 and beyond as the economy starts to get back on track? I happen to think it will. At some point, it will come time for the government to withdraw the liquidity they’ve put in the system. However, I think we’ll be in a slow-growth environment that will make that very, very difficult.

We won’t have the access to credit that we had in the past. Credit creation fueled a lot of the growth over the last decade. That will be missing in the next growth phase, so I think we’ll be faced with a low-growth environment that will make it difficult for the Fed to raise rates and rein in liquidity. As the velocity of money begins to pick up when the economy starts to grow a bit, I think we will see some serious inflationary pressures. That will give gold the next leg to stand on and lift it to the next level, which I think will be much higher than what we’ve seen so far.

TGR: In essence, aren’t we going back to an inverse play based on the U.S. dollar? That was the first phase. Now we’re in this crisis phase. As we move into an inflationary era, aren’t we just hedging against the dollar at that point?

JF: Yes, that’s another aspect of what I’m talking about, too. How does the dollar play out in this scenario? As long as we’re in crisis mode, people think of the dollar as a safe haven. As soon as we see a bit of light at the end of the tunnel, equities and other investments will begin to attract investment dollars. At that point, I think money flows out of the dollar. So the dollar could resume its downward trend with a better economic outlook and that would be positive for the gold market.

TGR:So we’d go back to dollar going down, gold going up.

JF: Yes, back to that situation. And then when you layer some inflationary expectations on that, you get gold firing on all cylinders.

TGR:Is that when we begin to see mania or is that the next phase?

JF: As markets go, there probably will be a mania in the gold market as well, but I would guess that’s a number of years off. Who knows? But at least several years off.

TGR: What will trigger the mania? If we’ve made it through the banking and financial and economic crises, and are looking for money to fly back into equities and devalue the dollar, why is mania several years off? Why wouldn’t it be happening as these other shifts begin to occur?

JF: The economy needs to be doing better. Money is too tight. I just don’t think there’s enough liquidity, frankly, to support a mania in the current environment. We need a more positive economic environment to get a true mania going and pull everybody from mom and pop up to the high net worth investors to the institutions, everybody jumping in with both feet. I don’t think there’s enough liquidity in the system at this point, or perhaps it’s all on the sidelines.

TGR: How interesting. So maybe fear won’t spark the mania. You’re almost saying the mania will start when there’s a little bit more optimism.

JF:That’s right, if it happens it will probably occur with more optimism and more entrenched inflationary expectations.

TGR:When you talk about gold, are you talking about bullion or gold stocks?

JF: I’m talking about both, definitely. There’s a different dynamic playing out with the gold stocks because we have to look at earnings and operating risk and political risk and all these other things, but historically there’s been a very high correlation between gold and the gold shares, and I expect that to continue throughout this market.

TGR:Will we see more of that in inflation or in crisis mode?

JF: As far as gold shares go, their crisis was the second half of 2008. They got caught up in the downdraft of the credit crisis and the equities collapse. The stocks have roughly doubled since they bottomed in October of 2008. Gold is up roughly 25% to 30% and we’re seeing money come into the gold sector. A lot of equity financing amongst the gold companies lately tells you there are investment dollars available to the sector. So I think the gold market and gold equities are out of crisis mode. They’re being recognized as an alternative, as a safe-haven hedge.

TGR:And an inflation play, I imagine.

JF: Yeah. The inflation play, or at least a flavor of it, will be with us. People see the Fed printing money to support the financial system, which creates a level of inflationary fear already—and it’s very, very early days. Then the next phase will be if and when we get evidence that inflation is actually taking place, when we see various economic measures telling us that inflation is starting to pick up. Those fears will intensify then. Even though we’re in a deflationary environment at the moment, the seeds of inflation it are already there.

TGR:How do you see silver reacting relative to gold?

JF: Looking at its performance over the last three or four months, I think it’s shown itself to be a currency hedge and a currency alternative like gold. Silver had a tough time last year. It tumbled with the base metals. But again, since October, the performance has been good and we’re seeing high demand for the silver ETF, a shortage of coins and bars. So it’s acting as a currency alternative just like gold now.

TGR:What do you make of the shortage of the coins and the premiums to the spot price?

JF: It’s a small but growing corner of the market, so to me it’s an indicator of investor sentiment. It’s not that big a demand driver. When you look at the tonnage, it’s modest. But it tells me that the sentiment among investors, especially individuals, is very positive. From what I hear, it’s mainly high net worth individuals who are buying the stuff up with a long-term view. It’s quite a leap to go out and invest in physical gold. If a few are actually doing it, then many, many more are probably considering it.

TGR:Would you like to talk about some companies you currently own and think other investors should be considering?

JF:

Growth is a common theme among the larger companies that we overweight. We like a growth story because good news flow comes with growth. Hopefully, we can find managements that can deliver the growth and meet expectations for production and costs. Among the large caps, one of our favorites in that category would be

Goldcorp

(GG). They’re mining mainly throughout the Americas. Most of their mines are in politically safe areas. They’re great operators and are developing some deposits—one in Mexico, called Penasquito; and the other one in a JV with

Barrick Gold Corporation

(ABX) in the Dominican Republic, called Pueblo Viejo. They’re going to drive Goldcorp’s growth for the next several years, and we see some good numbers coming out of Goldcorp looking forward.

TGR:And moving down the ladder?

JF:Going down into the mid-tier group, I guess Randgold Resources Ltd. (GOLD) would be our favorite in that category. Their operations are in West Africa. Randgold’s growth has come organically, which is really the best kind of growth. They discovered the properties where they’re mining and developing, and that’s the cheapest way to add ounces to the portfolio. Currently they’ve got a developing property in Senegal, which is early days but we see it turning in to a significant mine. Perhaps looking out three or four years, that will add significantly to their bottom line. It’s another internal discovery, so very cheap ounces coming on line for that company. Also, we’ve been to West Africa and Randgold is probably the best connected, knows the Continent probably better than any other company out there. So they’re one of our top mid-tier companies.

Going down to the small caps, we’re seeing exciting plays in several areas with the small caps, mainly in the Americas, particularly Canada. There’s been a resurgence of activity in Canada in some of the old mining camps. We’re seeing new discoveries and new developments that we’re very excited about. Mexico and other parts of Latin America look very favorable to us as well.

In Canada, one of the emerging producers would be Lake Shore Gold Corp (LSGGF.PK). In the Timmins camp, they’ve made a discovery where nobody thought to look before. And Timmins is historically one of the largest producing camps in North America, so there’s still gold to be found there. Lake Shore is developing an underground mine there that we think will be very profitable and should come on line over the next couple of years.

Another Canada small cap is Osisko Mining Corp (OSKFF.PK). They’re in the Val d’Or camp, an old mining camp. They’ve found a very large low-grade deposit that they’re developing there and I guess it will be the first large-scale, low-grade, world-class deposit that’s been developed in Val d’Or. The company just raised enough money to develop it. It’s going to be expensive, costing north of a half a billion dollars, but investors have shown confidence in the company and that they raised over $300 million just this month to build it. They’re well on their way to becoming the next gold producer.

TGR:Does Osisko have a 43-101 on that Val d’Or property?

JF: Yes, it has. After going through several iterations of their resource estimate, more recently they found a new zone they call the Barnett Zone. It’s higher grade than what they’ve found in the past, so it appears to be shaping as a sweetener that will enable them to get a more rapid payback once they begin production. The project is getting better as it moves along.

TGR:Does your website list the stocks you’re invested in?

JF: We publish the full portfolio twice a year with our semi-annual and annual reporting, so for the most recent you’d have to pull up our December 2008 report. Also, our website publishes our top 10 every month.

TGR:Do we do that through the site or we can find that on the site?

JF:Just go to vaneck.com and you can bring up a PDF. (http://vaneck.com/sld/vaneck//offerings/factsheets/IIG_Factsheet.pdf )

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Be cautious out there, especially if going back into Stocks (even mining stocks), do your due diligence and stay tuned for more of the best news and views personally handpicked for my most valued readers! – Good Investing! – jschulmansr

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A new site that is in pre-launch state that will become a virtual world – chat, shop, play, videos, etc. Anyways they are giving free shares (that should become actual company shares) to anyone who signs up and more shares if you refer people.

 

Schedule automatic tweets, Thankyou for following me messages and much more! Be More Productive- Free signup… TweetLater.com

 

 

 

Nothing in today’s post should be considered as an offer to buy or sell any securities or other investments; it is presented for informational purposes only. As a good investor, consult your Investment Advisor/s, Do Your Due Diligence, Read All Prospectus/s and related information carefully before you make any investing decisions and/or investments. –  jschulmansr

 

 

 

 

 

 

 

 

Investment gurus are lining up to call the bottom of the market. Anthony Bolton of Fidelity International did so last week, telling delegates at a pensions conference markets were at or near lows.

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Are you going to let them do this?

23 Monday Feb 2009

Posted by jschulmansr in 10 year Treasuries, 20 yr Treasuries, Austrian school, Bailout News, banking crisis, banks, bear market, capitalism, Comex, commodities, Copper, Credit Default, Currencies, currency, Currency and Currencies, deflation, dollar denominated, dollar denominated investments, economic, Economic Recovery, economic trends, economy, Fed Fund Rate, Federal Deficit, federal reserve, Finance, financial, follow the news, Forex, Fundamental Analysis, futures, futures markets, gata, GDX, GLD, gold, Gold Bullion, Gold Investments, gold miners, Gold Price Manipulation, inflation, Investing, investments, Junior Gold Miners, Latest News, Make Money Investing, manipulation, market crash, Markets, monetization, palladium, physical gold, platinum, platinum miners, precious metals, price manipulation, prices, producers, production, run on banks, Short Bonds, silver, silver miners, Silver Price Manipulation, spot price, stagflation, Stimulus, Stocks, TARP, Technical Analysis, Ted Bultler, The Fed, U.S., U.S. Dollar, XAU

≈ Comments Off on Are you going to let them do this?

As I write there is selling pressure or maybe price manipulation on the gold market right now. Are we going to let them do this? Especially with everything else in the markets i.e. the dollar, banks, stock markets in chaos and dissarray? The best way to fight back is to keep buying gold especially on Comex and taking delivery. That would catch them and for once the little guy wins! The Gold price is holding steady at $990 oz after being tested early this morning, Gold bounced right off the $975 – $977 support and is now holding steady. Today’s articles do talk about the manipulation going on in the Gold and Silver markets. To date the largest short positions and majority of the short interest on Comex consists of a few banks who went short in the $750 to $950 range ( I know a large spread but they have been cost averaging their positions). If all the longs would start taking possesion of their gold and silver off of Comex, I am telling you this, we would have one of the largest “Short Squeezes” in history! – Good Investing! -jschulmansr

 =======================================

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“Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. “Stand and Deliver or Go Home” should be the rallying cry of the gold longs to the paper gold shorts.” –Trader Dan Norcini
=======================================

This is an older article which explains the manipulations which have been going on. The same banks still hold teir positions of as last published Comex reports.– jschulmansr

Chris Powell: Gold and Silver Market Manipulation Update – Gold Anti Trust Action Committe GATA

Submitted by cpowell on Fri, 2008-11-14 20:51. Section: Essays

Good afternoon and thank you for being here. It’s an honor to get to speak with so many interested in silver, especially at such an interesting time in history. I’m going to ramble a bit, and try not to get too detailed and save some time for questions where you can get specific.

Remarks by Chris Powell, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
New Orleans Investment Conference
New Orleans Marriott Hotel
Thursday, November 13, 2008

A year ago it was still a struggle to persuade some people that the gold and silver markets were being manipulated by Western central banks. Now, after months of financial turmoil around the world and constant central bank intervention in the markets, to believe that the gold and silver markets are not being manipulated by central banks you have to believe that those markets are the only markets not being so manipulated.

Why are the gold and silver markets manipulated by governments and the financial houses that serve as their agents? Because gold and silver are competitive currencies and because their value greatly influences interest rates, which ordinarily governments like to keep low. 

 Last year at this conference I reviewed in detail the official documentations and admissions of the gold price suppression scheme. Those documentations and admissions remain posted at GATA’s Internet site:

http://www.gata.org/node/5654 

Today I’d like to review some evidence that has turned up more recently, as well as some related developments.

Maybe most interesting have been the studies of the U.S. Commodity Futures Trading Commission market reports done by silver market analyst Ted Butler and by Gene Arensberg, a market analyst for ResourceInvestor.com. Butler and Arensberg reported that as of August just two banks held more than 60 percent of the short positions in silver on the New York Commodities Exchange. This was an unprecedented and seemingly illegal concentrated short position, and it implied that the smashing down of silver was very much a manipulation by one or two very rich and powerful market participants, a destruction of the free market. Complaints about this concentrated short position prompted the CFTC to undertake still another investigation of the silver market, this time by a different division of the commission, its enforcement division. Further, CFTC Commissioner Bart Chilton has told GATA that the agency is investigating the gold market as well.

This week Arensberg found that the CFTC’s latest report shows that just three or fewer banks now hold half the short positions in gold on the Comex and more than 80 percent of the silver short positions.

Also this week Butler obtained a copy of a letter from the CFTC to U.S. Rep. Gary G. Miller, R-California, that sought to explain the concentrated short position in silver. The CFTC’s letter implied that this extreme short position resulted from JPMorganChase’s acquisition of Bear Stearns in March. If we construe the CFTC’s letter correctly, that would make MorganChase the big short in silver now and imply that, in financially underwriting MorganChase’s acquisition of Bear Stearns, the Federal Reserve was also underwriting MorganChase’s assumption of that short position in silver.

Of course MorganChase was also the bullion banker to Barrick Gold, the biggest gold shorter over the last decade. In 2003 Barrick told U.S. District Court Judge Helen Berrigan right here in New Orleans that, in shorting gold, Barrick had become the agent of the central banks in regulating the gold market and thus should share their sovereign immunity against lawsuits.

MorganChase is also the world’s biggest issuer of interest-rate derivatives, instruments by which interest rates are suppressed.

All this causes GATA to believe that MorganChase is in effect an agency of the U.S. government, or rather, perhaps, that the U.S. government is an agency of MorganChase. In any case, MorganChase has had an intimate relationship with the U.S. government since the days of J. Pierpont Morgan himself.

Incidentally, Jean Strouse’s 1999 biography of Morgan, which won the Bancroft Prize for American History and Diplomacy, recounts that Morgan’s first big triumph in finance was to corner the gold market in New York in 1863 during the Civil War. Nearly 150 years later there really may be nothing new under the sun.

Also lately raising suspicion about surreptitious government intervention in the precious metals markets has been the refusal of the Federal Reserve and the Treasury Department to release to GATA hundreds of pages of government documents about the disposition of the U.S. gold reserve. The Fed has told GATA’s lawyers that the documents are being withheld in part because their release might compromise information that is proprietary to private companies. Why anything about the U.S. gold reserve should be considered proprietary to anyone is beyond those of us at GATA — unless, of course, the reserve is being used to manipulate markets surreptitiously.

But we at GATA do not feel picked on by the Fed and the Treasury. For the Fed and the Treasury seem to be treating everybody as if the disposition of public assets is nobody’s business but Wall Street’s. This week Bloomberg News Service reported that the Federal Reserve is refusing to disclose how much it has lent to particular banks and exactly what sort of collateral the Fed has accepted for those loans, which have reached hundreds of billions of dollars. For example, is the Fed valuing the same kind of collateral from different borrowers the same way, and lending against it at the same rate? Or is the Fed giving advantages to certain borrowers and not others, depending on their political influence and straitened circumstances? That is, are the Fed and the Treasury Department now being operated as the greatest patronage and market-rigging schemes in history? The government is concealing the evidence.

Since we last gathered here in New Orleans many of us been cowering under the prospect of more official-sector gold sales, particularly gold sales by the International Monetary Fund, which has approved a plan of selling gold to raise cash to replace the income it is no longer getting from interest on loans to developing countries. But despite more than a year of loud talk about it, the IMF has not sold any gold yet, and GATA suspects that the IMF really does not have the 3,200 tonnes it says it has, only a tenuous claim on the gold reserves of its member nations, particularly the United States, which has a veto on any IMF gold sales and has not approved any yet.

Back in April I tried to engage the IMF in a dialogue about its gold and I had an exchange by e-mail with an IMF publicist, Conny Lotze.

My first question was: “Your Internet site says the IMF holds 3,217 metric tons of gold ‘at designated depositories.’ Which depositories are these?”

Conny Lotze of the IMF replied, but not specifically. She wrote: “The fund’s gold is distributed across a number of official depositories,” adding that the IMF’s rules designate the United States, Britain, France, and India as depositories.

My second question was: “If you’d prefer not to identify the depositories for security reasons, could you at least identify the national and private custodians of the IMF’s gold and the amounts of IMF gold held by each?”

Conny Lotze replied, again incompletely: “All of the designated depositories are official.”

My third question was: “Is the IMF’s gold at these depositories allocated — that is, specifically identified as belonging to the IMF — or is it merged with other gold in storage at these depositories?”

Conny Lotze replied, still not very specifically: “The fund’s gold is properly accounted for at all its depositories.”

My fourth question was: “Do the IMF’s member countries count the IMF’s gold as part of their own national reserves, or do they count and identify the IMF’s gold separately?”

Conny Lotze replied a bit ambiguously: “Members do not include IMF gold within their reserves because it is an asset of the IMF. Members include their reserve position in the fund [the IMF] in their international reserves.”

This sounded to me as if the IMF members are still counting as their own the gold that supposedly belongs to the IMF — that the IMF members are just listing the gold assets in another column on their own books.

My fifth question was: “Does the IMF have assurances from the depositories that its gold is not leased or swapped or otherwise encumbered? If so, what are these assurances?”

Conny Lotze replied: “Under the fund’s Articles of Agreement it is not authorized to engage in these transactions in gold.”

But I had not asked if the IMF itself was swapping or leasing gold. I had asked whether the custodians of the IMF’s gold were swapping or leasing it.

This prompted me to raise one more question for Conny Lotze. I wrote her: “Is there any audit of the IMF’s gold that is available to the public? I ask because, if the amount of IMF gold held by each depository nation is not public information, there doesn’t seem to be much documentation for the IMF’s gold, nor any documentation for the assurance that its custody is just fine. Without any details or documentation, the IMF’s answer seems to be simply that it should be trusted — that it has the gold it says it has, somewhere.”

And Conny Lotze … well, she never wrote back to me again. After all, I had uttered the dirtiest word in government service: A-U-D-I-T.

That the International Monetary Fund refuses to account for the gold it claims to have should be potential news for the financial media. It would be nice if the financial media pursued that issue before their next attempt to scare the gold market with stories about IMF gold sales.

But even if such sales by the IMF should be undertaken, they might not be much for gold investors to worry about. For a month ago I happened to attend in New York City the annual fall dinner of the Committee for Monetary Research and Education, and it had an unscheduled speaker, Columbia University Professor Robert Mundell, who, as you may recall, won the Nobel Prize in economics in 1999 and is regarded as the father of the euro. Through great luck I got to sit next to Mundell on the platform and so heard him clearly as he went out of his way to join the discussion of my topic, gold. Mundell remarked that if the IMF sold any gold, China should buy all of it to diversify its foreign exchange reserves. Since Mundell is a consultant to the Chinese government, the Chinese government surely heard this advice from him long before the CMRE meeting did.

You can do a lot of market rigging when you can print legal tender to infinity, pass out huge amounts of it to your friends, and induce them to use derivatives to siphon speculative demand for real stuff away from actual possession of that real stuff. But in the end printing legal tender and contriving promises to deliver real stuff don’t produce real stuff. With infinite legal tender and derivatives you can push the futures price of a commodity below its production costs and below its free-market price for a while, but you risk causing shortages. And of course that’s what we have in gold and silver right now — falling prices for the paper promises of metal even as little real metal is to be had and the spread between the futures price and the real price grows. Last night a GATA supporter in Bangkok, Thailand, who long has been in the silver business e-mailed me that real silver there is priced at $18 per ounce for orders of 1 kilo or more and $23 per ounce for smaller orders. Our friend in Bangkok added that when he shows silver dealers there the New York silver futures price on the Internet, they laugh at him. Shortages can have various causes but generally they are their own cure. When shortages persist, they well may result from government intervention in markets.

Of course prices always have been determined to a great extent by the volume and velocity of money and credit, and so the creation of money and credit is, all by itself, inevitably an intervention into markets. But lately money and credit have been disappearing and reappearing in a flash in the billions and trillions. How can so much come and go so quickly? Maybe because what passes for money and credit today is a bit too ephemeral, having little connection to reality and a lot of connection to politics.

That is why market advice today is more doubtful than ever: Markets have become more politicized than ever. Supply and demand and profitability are no longer the primary determinants of markets. No, the primary determinant of markets is now politics: Which countries will cut interest rates the most? Which countries will subsidize their banks and corporations the most? Which countries will get IMF and World Bank loans? Which countries will be given unlimited currency swap lines and which won’t? Which companies will get bailed out and which won’t? How much more dishoarding of gold will central banks do to keep the price down, and which central banks? When will central banks run out of gold or decide to stop spending it this way? Most importantly, when will the world decide to stop financing the wild irresponsibility of the United States by lending the U.S. money that can never be repaid?

These are all political questions, and only political decisions will answer them. Some of these questions may be answered as soon as this weekend at the international conference in Washington. Answers to some of the other questions probably will be conveyed in advance to certain insiders — like the financial houses that serve as the market agents of the central banks — and those insiders will get richer. As good as this conference is, you will not be hearing from any of those insiders here.

But we may gain some confidence from politics too, since we know that governments are no longer shy about intervening in the markets and since central banking was invented precisely to inflate, to avert debt deflation, to devalue the currency when that is deemed necessary or convenient by those in power — which is most of the time. We know that the world is now drowning in debt, and in a research paper published in May 2006 a British economist, Peter W. Millar — founder of Valu-Trac Research in London, formerly an executive with the Abu Dhabi Investment Authority — forecast that to avert debt deflation and to increase the value of their monetary reserves, central banks would need to increase the value of gold by at least 700 percent and maybe by as much as 2,000 percent. This could be done easily, for to increase the value of their monetary reserves central banks need only to stop selling and leasing gold and to stop subsidizing the sale of gold derivatives by their agents, the financial houses. Revalued high enough, gold could cover all government debts and let the world start over again.

Millar kindly has given GATA permission to post his research paper at our Internet site, and you can find it here:

http://www.gata.org/files/PeterMillarGoldNoteMay06.pdf

When Millar made his forecast about such an upward revaluation of gold — 2 1/2 years ago — gold had just reached $700 per ounce, not far from where it is now. Multiplied by 700 percent, that would mean a gold price of about $5,000 per ounce. Multiplied by 2,000 percent … well, if that happens, we may be able to afford to hire someone to do the math for us — if, of course, those of us who do not live in free countries like China and Russia are allowed to keep our gold. But that is still another political question.

 ==========================

 

 “Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. “Stand and Deliver or Go Home” should be the rallying cry of the gold longs to the paper gold shorts.” –Trader Dan Norcini
==========================

 Gold’s Assault on the Clueless – Rick’s Picks

By: Rick Ackerman of Rick’s Picks

We’ve been monitoring gold’s vital signs closely, since any foray above $1000 is cause for nervousness. The yellow stuff has always been free to roam, and even to misbehave, below that threshold; but once above $1000, the bankers regard each rally with a glower of malice.  While it is clear that debt deflation’s overwhelming power has rendered the central banks impotent in their efforts to arrest the collapse of the global economy, the bankers still retain the ability to crush any hint of rebellion by gold bulls who would deign to challenge the monetary order. With their relatively large stocks of physical gold, and the complicity of institutional agents such as JP Morgan to help suppress “paper gold” in futures markets, the bankers and the IMF have enough influence over bullion’s price to temporarily suspend the laws of supply and demand.

 

panic-small

 

The politicians are on board, of course, although not as conspirators. They are all knee-jerk Keynesians at the moment, either too stupid and/or lacking in imagination to understand why fiscal spending, no matter how much of it, cannot possibly extricate the economy from a deflationary black hole. They have put their trust in eggheads and MBAs to fix things, even if most of us have begun to suspect that throwing yet more trillions of dollars into the maw of deflation will not solve anything. And although our elected leaders might not feel so strongly about gold as Keynes, who was appalled by the popular appeal of “that barbarous relic,” they are nonetheless dumbfounded as to why anyone would prefer gold-backed currency to the Monopoly money that The Government has empowered as legal tender.

 Concerning our immediate outlook for gold, we have identified 1025.20 as the next significant point of resistance for the Comex April contract. The number is yet another in a series of  Hidden Pivots that have told us unequivocally and at each step along the way whether buyers were ready to forge effortlessly higher. So if 1025.20 gives way easily, as other points of resistance already have, we’re ready to infer that the benighted acolytes of Keynes are about to get fragged by investors who are growing increasingly restless, if not to say panicky, about The Government’s apparent powerlessness to ameliorate economic distress.

 

(If you’d like to have Rick’s Picks commentary delivered free each day to your e-mail box, click

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Catch the New Bull! – Buy Gold Online – Get 1 gram free just for opening account– just click on the Gold Bar!, no minimums – Buy Safely, quickly, and at low prices, guaranteed! – Bullion Vault.com

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Only Seller Left? – Silver Seek

Source: Silver Seek  Author: Ted Butler

Another week, another data release from the CFTC proving manipulation in the silver market. The most recent Commitment of Traders Report (COT) provides additional compelling evidence that the COMEX silver market is manipulated. The new report proves manipulation so clearly, as to make it almost undeniable. In recent weeks and months, it appears that all the additional short sales of COMEX silver futures contracts are coming from one entity. If true, there could be no clearer proof of manipulation.
I am going to try to make this as simple as possible, but it does involve different facts and figures. It is very clear and simple to me, but that is because I have spent decades studying this data. I hope I can make it clear enough for both you and the CFTC to understand. This is not about whether silver is manipulated, as that’s a given. This is about whether I can explain and prove it.

The COT, for positions as of the close of business February 10, the total commercial net short position increased by 1864 contracts for the week. However, the net short position of the 4 largest traders increased by 2832 contracts. This means that of all the commercial traders, the only short selling came from the 4 largest traders, with all other commercial traders (the 5 through 8 largest traders and the raptors, the 9+) buying. This was very unusual, in that the commercials generally operate as one cohesive unit, all buying on the way down in price and selling on the way up.

Even more unusual is that this pattern has persisted back to the December 22, COT report. On an almost $2.50 rise in the price of silver since then, the total commercial net short position has increased by 4357 contracts, yet the big 4 have increased their net short position by 5396 contracts. This means all new short selling in COMEX silver has come from the biggest traders, for the first time in memory. That should be enough for any semi-alert regulator to conclude manipulation, as such concentrated short selling by so few participants should have every alarm and whistle blaring at CFTC headquarters. After all, there could be no clearer motive for such selling – the capping of price for the purpose of protecting already obscenely large short positions.

But even while it is easy to conclude that all new short selling is coming from the same four or less large traders, where do I get off suggesting it is one entity behind all the new silver short selling over the past 7 weeks? Here we have to look at another CFTC data source, the Bank Participation Report. Since the Bank Participation Report (BP) is a monthly publication, while the COT is weekly, we must make appropriate calibrations between the reports. The two most recent BP reports are as of January 6 and February 3. Using those two reports, plus the COTs of the exact same dates, this is what the reports show. Between those two dates, the COT indicates that the total commercial short position increased by 2253 contracts, with the big 4 category increasing by 2256 contracts, once again accounting for more than the entire increase in the commercial category.

The Bank Participation Reports corresponding to January 6 and February 3 indicate that the two U.S. banks increased their net short position by 2500 contracts in that same time period. This proves, at least during this specific period of time, that one or two U.S. banks accounted for more than 100% of all the commercial short selling and all the selling in the big 4 category. One or two entities, accounting for more than 100% of all total short selling for more than a month is manipulation. Period. It can only have occurred to attempt to cap the price and protect the existing short position.

Please remember that while I have been documenting the incremental changes in the concentrated short position of what may be one large trading entity, those changes are small compared to the total short position of this entity, which I estimate to be back above 30,000 contracts, or 150 million ounces. That’s more than 22% of the entire annual world mine production of silver. It is impossible for such a large concentrated short position not to be manipulative.

I’m fed up with the CFTC and their so-called investigation. They claim to be investigating , while the manipulation grows more obvious. I think we’ve passed the point where we can eliminate incompetence as the explanation for their inaction. I have a good idea of what is behind their refusal to right a very obvious wrong, although I won’t get into those details here. Let me just remind them that while they may fear the possible ramifications of a truly free silver market, after decades of manipulation, the greatest damage is their abandonment of the rule of law.

(Editor’s note – here’s a detailed report of Ted Butler’s past and present dealings with the CFTC regarding the silver manipulation –

http://www.investegate.co.uk/invarticle.aspx?id=66705)

 

 

====================================

“Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. “Stand and Deliver or Go Home” should be the rallying cry of the gold longs to the paper gold shorts.” –Trader Dan Norcini

====================================

Silver, Past, Present, Future – Phoenix Silver Summit Speech – Silver Seek

Source: SilverSeek.com

By: Theodore Butler

 

I’d like to acknowledge a few people who are not here that had an awful lot to do with me being here today. First, I’d like to thank Jim Cook, from Investment Rarities in Minneapolis, for his sponsorship of my work for more than eight years. It was this support that enabled me to devote all my time to studying and contemplating everything I could about silver. Thanks, Jim.

Second, I’d like to thank my friend of 25+ years, Israel Friedman. It was Izzy, who back in 1984, issued to me the challenge to prove him wrong in his analysis of silver. Although I had traded and invested in silver for years before his challenge, I admit to never having studied it in depth. Izzy’s claim that the world was and had been consuming more silver than was being produced seemed so at odds with the price at that time, that I took up his challenge. I also admit that I thought it would be easy to prove him wrong, although I was well aware of his buying of silver in the $4 range and then selling it in the $40 range a few years later. When I discovered that he was correct, it set off a thought process that I couldn’t satisfy. I couldn’t reconcile how there could be greater demand for an item than there was current production with prices not moving higher. I’m sure that many had also been deeply perplexed with that puzzle.

For some reason, rather than to simply dismiss and put out of mind something I couldn’t figure out, I thought long and hard about the silver supply/demand/pricing enigma. It was that thought process, plus my background as a commodity broker, that led me to the conclusion that the silver market was manipulated by excessive short selling on the COMEX. The actual Eureka Moment came one day as I reading the Wall Street Journal Commodity Tables. It wasn’t an accidental discovery. I was looking for something wrong. I was looking for anything that was different about silver that could account for it’s very different behavior compared to other commodities. After all, we were all taught that when consumption is greater than production, price must rise. Yet silver didn’t. The light bulb went off in my head when I realized that COMEX open interest, when converted into real world supplies was completely out of line with every other commodity. This meant that the derivatives market in silver was larger than the underlying host market from which it was derived. A complete absurdity. The paper market tail was wagging the physical market dog. This is something that has remained constant in the subsequent 25 years of manipulation.

Much later, I would come to understand the role of leasing in the silver manipulation, which answered a lot of open questions in my mind. It was Izzy who caused me to be bitten by the silver bug, just as I may have, in turn, infected others, who in turn infected still more. The good news about this silver virus is that instead of giving you the flu or killing you, it could make you rich. For introducing me to silver, thanks Izzy

Finally, I’d like to thank my wife, Mila, who has been subjected to my preoccupation of silver for the entire duration. While I have both suffered along the way and enjoyed the journey, it was always my choice to continue or not. I know it was much harder for Mila as a partner, and a I marvel at her ability to persevere where I know I could not, were our roles reversed. Thanks Mila.

The Past.

The silver story goes back, quite literally, for thousands of years. You won’t find many stories of longer duration, except if you’re an archeologist. For those thousands of years, it was prized as money and jewelry and for ornamental objects and as a measurement of wealth. Silver’s history is similar to its precious metals brother, gold. Both precious metals were the cause of exploration and the discovery of new worlds, and instrumental in the development and formation of nations, including war. Both gold and silver were dug out of the ground and held and accumulated throughout the ages. For use as money, governments for hundreds of years assigned a fixed ratio of roughly 15 to 16 ounces of silver being worth one ounce of gold. This made sense, because that ratio was close to the rate at which silver came out of the ground compared to gold. There was a lot more silver accumulated above ground than gold, so it further made sense that 16 ounces of silver was equal to one ounce of gold. In the late 1800’s tremendous new silver production came to market, due to the massive supplies from the Comstock Load in the western US. Coupled with a demonetarization of silver, but not gold, by many world governments the price of silver plummeted and with that the amount of silver needed to buy one ounce of gold rose to 100 ounces in the 1920’s. The world was truly awash in silver.

Coincident with these developments, starting about 100 to 150 years ago, around the same time that the world found itself awash in silver, something else dramatic was occurring. We began to enter the industrial age. Inventions and devices of all kinds began to be introduced, impacting the world as never before. Electricity came into wide use. The automobile was born. Photography was introduced. As dramatic as this overall change was to how people lived, the transformation in silver was even more dramatic. It turned out that the substance that the world was awash in, the substance that had been accumulated for thousands of years, had properties that no one could have contemplated through the vast sweep of history. This largely too abundant material was a perfect fit for the rapidly transforming modern and industrial world. Silver was, and is, the best conductor of electricity, the best heat transfer agent, the best reflector of light, a marvelous lubricant, a versatile catalyst and alloy for a wide range of industrial applications, including medical. Silver was the key ingredient that made photography possible. All these uses, plus abundant supply and cheap prices. It was the perfect consumption set up. And consuming silver is something the world took to in a very big way, until this very day.

It was the push into the modern age that caused a parting of the ways between silver and gold in how they were used. Gold has many potential industrial applications, although not near as many as silver. But because gold was, and is, so high-priced compared to silver, it wasn’t practical to use it in widespread industrial applications. Because silver was so cheap and abundant, it was used extensively. So extensively, that not only did the world begin to consume every ounce of silver that was taken from the ground, it also began to consume the accumulated inventory from the past.

In 1940, there were approximately 10 billion ounces of silver above ground in the world, with half owned by the US Government. At that time, there was about a billion ounces of gold. Ten times more silver existed in the world than gold. After more than 60 years of over-consumption of silver, of drawing down and depleting the inventories built up over hundreds and even thousands of years, the relationship of how much silver exists above ground compared to gold has flipped. Now there is much more gold left in the world than silver. Currently there are up to 5 times more gold in the world than silver, depending on how you define inventory. Silver inventories have declined from 10 billion ounces in 1940 to 1 billion today. The U.S. government, the largest owner of silver in 1940, with over 5 billion ounces, now owns zero ounces. Gold world inventories, including jewelry, have increased from 1 billion ounces in 1940 to 5 billion today, according to all reputable sources like the World Gold Council.

I ask you to think about that for a moment, there being more gold than silver aboveground, as this is one of the most important factors in silver today. It is also one of the least known facts, even though it is easily verifiable and has evolved over such a long time. When people first hear or read it, they instinctively disbelieve it. 99.9% of the people on the planet, to this day, would tell you that it can’t possibly be true that there is more gold than silver in the world. Or even that there is an equal amount of gold and silver. None of this 99.9% has ever taken even a minute to think about it or read or try to verify how much of each remains above ground. They don’t have to. Their verification comes everyday, as it has everyday for decades, from one simple source – the daily price of each. The price of silver and gold is broadcast constantly, to every nook and cranny around the world, that there are 60 to 70 to 80 times more silver in the world than there is gold. That’s what 99.9% of the people in the world think. And I’m not just talking about uneducated people in third world countries. I would include the most sophisticated, wealthy and educated people, who have come to believe that the price doesn’t lie. I do hope 99% of the people here don’t think that.

It is this simple fact, that the relative price of silver compared to gold is so distorted, relative the their respective quantities in existence, that is all anyone needs to know to buy silver. This is not a knock on gold. I will stipulate to and accept as true every bullish argument that anyone could make on gold. You could spend hours or days lecturing me on all the good things that gold has going for it, and I will accept them without dissent. When you are done giving all the bullish gold arguments, I would just add two things. One, all those arguments apply to silver as well, and two, there is less silver than gold.

I’m compressing hundreds and even thousands of years of silver history into a few minutes of time. For many centuries, the world dug up and used silver for money and beauty and wealth. In the last century or so, we discovered incredible new uses for this age-old material and continued to dig it out of the ground, in ever increasing quantities, basically consuming all the newly mined silver plus almost all of the old stuff as well. And even though this is a fairly easy set of facts to verify, only an infinitesimal amount of people are aware of how little silver remains. And in spite of the growing rarity of this age-old cherished and desired material, its price, on any objective measure, is dirt cheap. There is less silver in the world on a per capita basis, than in history, yet the price still reflects super abundance. At the risk of over using a statement I’ve made in the past, I couldn’t make this up if I tried.

The Present

I’m going to include the 5 years or so, maybe even a little longer, as part of the present. Today, thanks to the Internet and other means of communication, including conferences like this, the true silver story is coming out. I think I’ve played some role in that. Investors, in ever growing numbers are grasping the disconnect between the price and the true value existing in silver. It is this disconnect that presents an exciting investment opportunity.

Perhaps the most unique and attractive characteristic about silver is its dual role as a vital industrial material and its history and desirability as an investment asset. No other commodity comes close to silver in this regard. Of course, we need copper and zinc and lead for industrial purposes, but they have never been considered popular investments in their pure metal state. Same with other natural resources, like oil. None of these commodities can be practically held in one‘s personal possession. Gold is the primary investment metal, but its high price prevents widespread industrial use. Platinum and palladium are both precious metals and are used extensively in industrial applications, but have not evolved into broad and popular investment assets.

As the true dual role material, silver stands alone. In its industrial consumption role, silver demand has been so strong for the past 60 years, that it has depleted inventories that took hundreds of years to accumulate. Now that industrial demand has been interrupted by current bleak economic circumstances, investment demand is stepping in to take up the slack. And make no mistake, the evidence clearly indicates that an investment rush is developing in silver.

The introduction of the silver and gold ETF’s (Exchange Traded Funds) has been the single most important factor on the investment side of silver’s dual role. Since the introduction of the first silver ETF, less than three years ago, over 300 million ounces have been absorbed by the various silver ETF’s. That is remarkable and much more than I ever thought they could accumulate. More importantly, these ETF’s will turn out to be, in my opinion, what my friend Carl Loeb has nicknamed, the Death Star, in that they may absorb all the world’s available silver.

Lately, I’ve noticed quite a bit of suspicion and criticism concerning the legitimacy of the ETF’s, particularly the gold ETF’s, with the criticism centered on whether the real metal exists that is said to be on deposit. I’d like to add my two cents. Quite frankly, I don’t understand this criticism. If someone would prefer to own metal in his own possession or control, they should do so. It’s an easy choice. Certainly, this has always been my advice. And it’s not like the ETF’s are beyond criticism, and I have publicly done so in the past when I detected massive unreported short selling in the big silver ETF, SLV. I think that’s fraud, and I think there is currently a big unreported short position in SLV.

But that’s not what the current criticism of the gold ETF’s is all about. The current criticism revolves around allegations that the metal said to be deposited is not really there, even though serial numbers and weights of all bars are listed. It seems some are claiming that the big quantities of gold flowing to the ETF’s are beyond anything reasonable. Where can all this metal be coming from? While I can’t personally guarantee the metal is in the ETF’s, nor do I wish to, I don’t understand this line of thinking. The gold ETF’s have been accumulating gold for more than 4 years. In that time, roughly 50 million ounces have been absorbed by the all the gold ETF’s. That’s one percent of all the gold in the world. Even if you reduce the 5 billion ounce gold inventory by 60%, and say there is 2 billion ounces of gold in good-delivery bullion bar form, the 50 million ounces in gold ETF’s is only 2.5% of that 2 billion ounces. Is it so hard to imagine 2.5% of anything being accumulated over 4 years and with more than a doubling in price? After all, the silver ETF’s have accumulated almost 30% of total world bullion inventories and little is said of that by gold people.

The fact is, for the most part, the investors who buy the silver and gold ETF’s are institutional investors who probably wouldn’t buy the metal if the ETF’s didn’t exist. You would think the gold analysts criticizing the ETF’s would recognize that. The buying in the silver and gold ETF’s are a very big reason behind the doubling in price in a few years. You would think metal people would be cheering the ETF’s on, instead of complaining. Go figure. Look, I understand that investment demand in mining shares has probably suffered as a result of buying in ETF’s, but that’s a different issue and is no reason to claim that the gold ETF’s don’t have the metal. Metals prices wouldn’t have climbed if there was no metal demand from the ETF’s.

Back to silver investment demand. Aside from ETF demand, the past year has seen other compelling evidence of an investment rush into silver. For the first time in any of our lifetimes, we have witnessed a persistent retail investment shortage, characterized by soaring premiums and delays in product delivery. I have to laugh when some people say there is no retail shortage, as the very definition of a shortage is rising premiums and delays in deliveries.

Also, we have witnessed, for twelve straight months, something never seen before. The US Mint, even after doubling its production capacity, hasn’t been able to fully supply Silver Eagles in the quantities demanded, for the first time in the 23 year history of the program. There is no doubt in my mind that my friend Izzy is responsible for kicking off the rush into Silver Eagles with his article in December 2007. I know of no one else who recommended Silver Eagles, then or now.

The current economic collapse has resulted in a sharp drop in industrial consumption of all commodities, including silver. Production, while falling, has not yet fallen as much. It will, given silver’s byproduct production profile. So, temporarily, we have a “surplus” of silver. Unlike other industrial materials, the surplus in silver is being gobbled up as an investment. Instead of being dumped into exchange warehouse inventories, like copper, zinc, or other industrial metals. Once production of all these metals falls sufficiently enough to balance with industrial consumption, as it must, there should be a shortage in silver that will seem unreal.

The economic condition of the world is dreadful. That it came like a thief in the night makes it more ominous. When and how we turn this around, I haven’t a clue. Many of us have worried about this for 30 years or more, hoping it would never come. Despite that hope, the wolf has come to the door. We must deal with it. Fortunately for silver, these scary economic times rev up investment demand. The worse economic conditions become, the more silver investment demand should grow. Silver is positioned well for whatever economic conditions prevail.

The Future

I want you to do me a favor. I want you to play a little game of imagination with me. It may sound silly at first, but try to play along, as I want to make the central point of the day. I want you to imagine that in this room, right there, in the space between you and me, is a giant elephant. Not a regular elephant, mind you, but the biggest elephant ever documented. A 26,000 lbs African Bush Elephant, 14 feet tall in the shoulders, with absolutely massive tusks. I looked this up, so I‘m not misstating the dimensions. Not only is this the biggest elephant ever recorded, it’s loud, agitated and it stinks to high heaven, flapping its ears and swinging its giant trunk. And it’s right there and has been right there the whole time. I want you to imagine that you’ve been sitting there, listening to me talk about silver with this 13 ton elephant right there, interrupting my speech all along and scaring the dickens out of you. And the kicker is that we’re all trying our best to ignore the elephant. Pretending it’s not there, speaking around it. We’re all trying to act like it’s perfectly normal to be in a room speaking about silver with this giant elephant and trying to act like it’s not there, when it clearly is there.

The African Bush Elephant in the room is the silver manipulation. But whereas the elephant is imaginary, the silver manipulation is as real as rain. But like the imaginary elephant, most are doing their best to pretend that the silver manipulation doesn’t exist. Not me, of course, as the manipulation is the most important pricing factor in silver, and I write on it continuously. I sense I have convinced many thousands of readers that silver is manipulated and maybe many in this room. But it is absolutely amazing to me how so few analysts and industry people publicly speak out on the manipulation.

I’m talking of people working for the financial firms and banks whose job it is to follow and write about silver. I’m speaking of those in the mining industry and in particular the Silver Institute. I’m not complaining about this lack of manipulation talk. Maybe at one time it upset me to be so alone, but not anymore. Now it’s just amusing. I read everything there is to read on silver and 95% of what I read never refers to the manipulation in any way. I find that bizarre. I find that to be the real life equivalent to my previous imaginary exercise of the elephant and pretending it’s not in the room.

I’m not demanding that anyone agree with me about silver being manipulated. I’m human and I reserve the right to be wrong. Besides, it’s better for me to be the only making this the main issue. In the past, many did challenge and attempt to refute my allegations of manipulation, especially those in the mining industry, which never made much sense. But as the issue has become so specific as to the documented facts about the concentration, I’m not even hearing lately anyone explaining why I am wrong or answering simple questions, even on the Internet. If there is one thing I have learned about the Internet, because of its shield of anonymity, many love to tell you why you are wrong and they are right, and in generally a rude manner to boot. But I’ve asked the question for 6 months for how can one or two U.S. banks being short 25% of the world silver production not be manipulative, with no response. I was seriously considering running a contest with a reward for every legitimate answer.

Stranger still in the collective avoidance of even talking about a potential market manipulation is that the prime regulator, the CFTC, has initiated a formal investigation into my allegations of manipulation in silver. This is the third silver investigation in less than five years, and the first by their Enforcement Division. This has never occurred in any other commodity. Regardless of the outcome of the investigation, the fact that there is another investigation is extraordinary, in and of itself. Nothing could be a more important issue than whether any market is manipulated or free. You would think that there would be wide discussion on the potential outcome or the merits, pro and con, on the investigation itself. Instead, mum’s the word. That so many establishment analysts and mining and industry people can pretend that everything has been completely aboveboard in silver is more bizarre than my elephant in the room example. Especially now that the CFTC has stated that they are investigating.

Like all manipulations, the silver manipulation has resulted in an artificial price level. Unlike most manipulations, the one in silver is a downward price manipulation. Admittedly, that does make it harder for folks to grasp the issue. But the saving grace to this manipulation is that those not involved in the manipulation can take advantage of the artificially depressed price. The special essence of this manipulation is that outsiders can profit from it in a simple and easy manner. All you have to do is buy and wait.

Like all manipulations, the silver manipulation will end suddenly and the price must move sharply in the opposite direction of the manipulation. In this case, the price of silver will explode upwards, once the manipulation is terminated. Those holding silver when that occurs will be rewarded. This is not complicated.

But what happens if the CFTC’s investigation ends with them, once again, finding that no manipulation exists in silver? It doesn’t matter. The silver manipulation must end, suddenly and violently, to the upside, no matter what the CFTC says or does. I wouldn’t be no naïve as to depend on the CFTC for doing the right thing. The price, having been depressed so low and for so long, must result in a shortage. The shortage has been clearly evident in the retail market for more than a year. Not as clearly, but present nevertheless, are strong signs of a wholesale shortage in the unreported shorting of SLV shares and other wholesale indications. When this shortage hits in earnest, no one will be able to stop the sudden demise of the silver manipulation.

You might further ask, “If the manipulation in silver will end regardless of what the CFTC may or may not do, why do you (meaning me) persist in focusing on this issue? Why not just sit back and let it happen? Well, I have no choice in waiting to let it happen, so I guess the question is whether to keep quiet about it. The answer to that is while the manipulation presents the strongest reason for buying silver, it is a market crime of the highest order. There is no more serious market crime than manipulation. It is the equivalent to Murder One, Treason or kidnapping.

In addition to providing the most compelling reason for buying silver, the manipulation is a crime in progress. As such it offends my sense of what is right and wrong. Being the best reason for buying silver and being a crime in progress are not mutually exclusive. Just like recommending that people buy silver and write to the regulators and lawmakers complaining about the manipulation is mutually exclusive. And I am gratified that so many have taken the time to contact the regulators, as it has really made all the difference in the world.

In conclusion, the supply/demand set up in silver, which has evolved over an incredibly long period of time, has been one continuous process promising to culminate in an explosion in price at some point. Quite simply, we are rapidly approaching that defining moment when there just won’t be enough physical material to go around at anything but rapidly escalating prices. Those escalating prices will encourage and drive others, including industrial consumers, to enter what should become a buying frenzy. Superimpose upon that the sudden destruction of a decades-old downward price manipulation and you have all the necessary ingredients for price event that will be referred to forever.

Thank you and I’d be happy to take any questions you might have.

================================================

 “Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. “Stand and Deliver or Go Home” should be the rallying cry of the gold longs to the paper gold shorts.” –Trader Dan Norcini
=====================================

My Final Note for today: How long are we going to continue to let 1 or a few Banks disctate the prices of Gold and Silver. If you read their short position is 22% MORE than world’s production in Silver! Everyone needs to be contacting Comex, CFTC, FTC, SEC,and the Federal Justice Dept and screaming their outrage at this! Plus it being allowed to continue! The other action step is to take physical delivery! Sooner or later by bringing all these pressures to bear, (no pun intended), we will see the “Short Squeeze of the Century” as these traders/manipulators will be forced to cover their Short Positions. Just how long are we going to let them do this to us? Good Investing – Jschulmansr now you can also follow me on twitter just click here and be notified every time I make a post and the best part it is absolutely free! 

! Catch the New Bull! – Buy Gold Online – Get 1 gram free just for opening account– just click on the Gold Bar!, no minimums – Buy Safely, quickly, and at low prices, guaranteed! – Bullion Vault.com

===================================

Nothing in today’s post should be considered as an offer to buy or sell any securities or other investments; it is presented for informational purposes only. As a good investor, consult your Investment Advisor/s, Do Your Due Diligence, Read All Prospectus/s and related information carefully before you make any investing decisions and/or investments. –  jschulmansr
 

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