| The Keynesian Clowns Strike Again |
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As many predicted, the flapping gums of the world's top serial inflationist ignited another waterfall drop in the gold price last Wednesday; apparently helicopter Ben's brilliant plan to give dollars more value by printing them is working so good everyone's shedding their gold. Uh huh. We've all seen this movie before, and fortunately for us the volume and the timing of the selling has left a trail of popcorn leading right to the criminals. Thanks to Bill and his team at LeMet we can always identify the terrorists (they just never get caught). Via James Mc., we know that "the cartel's 3:00 AM "plan A" was in full force" ... "while on most evenings the night access trade volume averages anywhere from 40-200 contract per minute, in 9 minutes (between 2:55 AM - 3:04 AM) 12,985 short August contracts were dumped, for an average of 1,440 per minute. In just one minute alone at 2:55 AM 1,898 shorts hit the market." And so once again we can connect the dots and surmise that only an illegitimate trader would ever dump this volume into such an illiquid market. How much lower can the 'official' price of gold go you ask? How about $1000, or even $100, really! .. they have unlimited paper. The question becomes by how much will the price of physical gold and silver disconnect from their fantasy pricing platform? When the mine production stops and all the workers go home? How's that going to work, cause Chinese housewives don't buy paper gold, nor does Samsung buy paper silver. I believe these prices are a gift, and that silver at a 60 (plus) to 1 ratio is almost free! Now is a great time to be adding to your physical position, contact me for the very best pricing and performance ...
Former US Treasury Official - Fed Orchestrated Gold Plunge
In fact, there was nothing new in the Fed's statement. The markets have known for a long time that at some point the Fed is to taper down its bond purchases and eventually stop them. So the lack of any real information in the statement makes the market reaction seem puzzling. And it actually suggests that the too-big-to-fail banks had inside information, the Fed's statement, and used it to short the stock, bond and gold markets.... They (banks with inside information) cleaned up on this Fed statement. It's entirely possible that's what the Federal Reserve is doing is orchestrating events that make huge profits for the banks, and that this is the way it recapitalizes them."
Silver Price to Rise as Production Evaporates!
One of the most insidious problems taking place in the gold and silver mining industry is the decline in falling yields. Not many realize, when yields decline, production evaporates and disappears. If we take a look at the top 6 silver producers, we can see that the average yield declined 38% since 2005, from 13.0 oz/t (ounce/tonne) to 8.1 oz/t in 2012:
Gold Bears Ignore Supply Contradictions
If the gold-mining industry isn't sustainable (at all) with gold priced at $1,300/oz; what would happen with gold at $1,000/oz? A collapse in suppy, in a market which already has a greater-than-1,500 ton per year supply-deficit. A deficit already 60% greater than annual mine-supply. Yet this is precisely what we see with all of the shrill, irrational gold bears. Out of one side of their mouths, we hear these sages "predicting" much lower sustained prices for gold. Out of the other side of their mouths; we have the bears explaining how most of the companies who produce that gold will be unable to remain in business even at current prices.
South Africa's Gold Mines to Close as Prices Fall
South African gold mining currently ceases to be profitable below a gold price of $1,400. Jack up the cost of labor (by 60%) and it becomes so unprofitable you might as well shut down the mines, and that is what the owners say will happen next.
Happy to Help ..
Now is NOT the time to be complacent. Those that have been right about this market (Sprott, Sinclair, Turk) believe that these recent paper price attacks were a signal that the coming financial hurricane is closer than ever, and that physical silver an gold ownership is an absolute necessity. We currently have a healthy supply of gold and silver products, in all shapes and sizes. Please contact me for the very best pricing and discreet, informed service.
Sprott (Review): Do Western Central Banks Have Any Gold Left???
You may be interested to know that central bank gold sales were actually the crux of the original investment thesis that first got us interested in the gold space back in 2000. We were introduced to it through the work of Frank Veneroso, who published an outstanding report on the gold market in 1998 aptly titled, "The 1998 Gold Book Annual". In it, Mr. Veneroso inferred that central bank gold sales had artificially suppressed the full extent of gold demand to the tune of approximately 1,600 tonnes per year (in an approximately 4,000 tonne market of annual supply). Of the 35,000 tonnes that the central banks were officially stated to own at the time, Mr. Veneroso estimated that they were already down to 18,000 tonnes of actual physical. Once the central banks ran out of gold to sell, he surmised, the gold market would be poised for a powerful bull market and he turned out to be completely right - although central banks did continue to be net sellers of gold for many years to come.
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Sovereign Exchange International Ltd.
Steven Merrill, President
www.sovereignize.net
phone:
778.835.7667
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Engage a Rich New Audience; Reconcile to your Private Account; Settle for Metal at Any Time. The Sovereign Exchange was founded by Steven Merrill and a small network of individuals from across British Columbia with a vision to embrace Austrian economic principles and provide a sound and stable payment facility than be trusted for commerce and used to store wealth.
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