LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Profiting as the Golden Shoe Drops



-- Posted Friday, 25 May 2007 | Digg This ArticleDigg It!

DEEPCASTER LLC

www.deepcaster.com

DEEPCASTER FORTRESS ASSETS LETTER

DEEPCASTER HIGH POTENTIAL SPECULATOR

Wealth Preservation         Wealth Enhancement

Financial and Geopolitical Intelligence

 

 

All reasoned investment and trading decisions are premised upon some sort of Forecast, whether explicit or implicit.

 

Thus it is essential when making such Forecasts to have a view about what the biggest players in the markets - - the U.S. Federal Reserve and the other Central Bankers’ - - short, medium and long-term goals are.

 

If an investor or trader acts in a manner at odds with the Market Outcomes which the Central Bankers actively seek, that investor or trader is placing himself in considerable financial peril.  Thus Deepcaster’s Forecasts and recommendations are made with attention to the Interventionals, that is, to the presumed and inferred intentions of The Cartel of Central Bankers.

 

 

One Forecast Realized, One Yet to Be

 

One aspect of Deepcaster’s two-pronged Forecast made nearly five months ago is already being realized and the other is yet to be.  Specifically, Deepcaster and a few select others noted then that the economy is moving into a phase of apparent deflation.

 

In the past five months the key hallmarks of this apparent deflation have indeed been, and are, a slowing economy and the takedown in price (again) in precious metals, as Deepcaster forecast.  Thus the takedown in prices of precious metals has begun, but is not yet done.

 

The other component of that Forecast - - the takedown in price of strategic assets in general and crude oil in particular - - has not yet seriously begun.  Indeed, crude oil has moved somewhat higher in the last two weeks.

 

The Case that the takedown of strategic assets in general (and particularly crude oil) is yet to come is based on the evidence that much of the apparent deflation is likely engineered by the Fed and other Central Bankers-led Cartel to achieve their policy goals.

 

Regarding the apparent deflation, we specifically refer to the official U.S. CPI and PPI numbers which have been tepid at best.  Of course, it is Deepcaster’s view (following John Williams’ shadowstats.com) that real U.S. inflation is much higher, indeed in the 10% range annually, and that the real U.S. GDP is a negative number - - see Deepcaster’s May, 2007 Letter.

 

In any event, it is in the interest of The Central Banker Cartel to reduce the attractiveness of Tangible Assets in order to boost the attractiveness of their Treasury Securities and Fiat Currencies.  It is apparent that this Cartel Interest is advanced through Markets Intervention.  [Those who question the breadth and depth of Cartel intervention are invited to review Deepcaster’s October, 2006 Letter, “Mega Manipulations - - Juiced Numbers IV:  How the Government Gets the Statistics It Wants, Markets Get Manipulated, Citizens Get Deluded, and Worse” at www.deepcaster.com.

 

 

The War Against Tangible Assets

 

Indeed, maintaining the legitimacy of their Treasury Securities and Fiat Currencies is so important to the Central Bankers that they seem to continually to conduct an intense campaign against their main “competitors:” the key tangible assets - - the precious metals and strategic commodities.

 

This campaign is so intense that it can justifiably be called a “War.”   [And of course there appears to be a private profit motive for doing so.  The U.S. Federal Reserve is neither a Federal nor a U.S. entity.  It is an amalgam of Private Bankers, some of which are not U.S. owned or based.] 

 

The “competitors” are tangible assets, and gold and silver specifically (because gold and silver are historically the only  “real” money - - all important fiat currency regimes have historically failed eventually), and the strategic commodities including especially crude oil.

 

From the Cartel’s perspective this “War” requires periodic attacks on the prices of precious metals and other strategic tangible assets so that these assets will not come to be seen as alternate stores of, and measures of, value.

 

Deepcaster, and a select few others, including preeminently the Gold AntiTrust Action Committee (www.gata.org) have collected substantial evidence that (otherwise inexplicable) price drops are actually price Takedowns engineered by the Central Banker-led Cartel.  Otherwise (just to consider two examples) how can one explain the periodic huge price drops in silver prices, when its demand over supply deficit has been steadily increasing for years?

 

On the gold front, how can one explain the drops in Newmont Mining shares from a high of $62 in February, 2006 to its present condition below $40?  (See Deepcaster’s May 20th Alert)

 

 

Profiting as the Golden Shoe Drops

 

When “armed” with the aforementioned perspective on the Central Banker Cartel’s probable goals - - to keep investors in paper Treasury Securities and Fiat Currencies and to bolster their legitimacy and perceived value - - one need mainly to get the timing right in order to invest or trade profitably.

 

But getting the timing right is a challenge, even when one employs interventional as well as fundamental and technical analyses.

 

But Deepcaster and a very few others have employed all the aforementioned to generate profitable trades.  For example, Deepcaster High Potential Speculators could have taken 60% profit on May 16th a mere two weeks after putting on the trade.  It was based on Deepcaster’s accurate Forecasts that the shares of a major gold producer would be taken down.

 

However, on the crude oil and strategic commodities front in general, a significant takedown of those is yet to come.  This comes as something of a surprise to Deepcaster, but on reflection not a great surprise.

 

For the Central Bank Cartel to take down the price of crude and other strategic commodities, at least two conditions must be met.  First, the geopolitical conditions must not clearly dictate a higher price for crude oil and strategic commodities.  Second there must be a plausible explanation or pretext (from the Cartel’s viewpoint) for such a takedown.  Otherwise the appearance of Market Manipulation would be even greater than it already is.  And that transparency would tend to defeat Cartel goals.

 

Thus, Deepcaster expects a takedown of crude oil and strategic materials when a plausible explanation (from the Cartel’s viewpoint) is available.  Such a plausible explanation could be a peace agreement in the Middle East or could be an agreement among oil producers to sell crude oil at a fixed price, or a variety of other possible causes.

 

Simultaneously, we expect another sharp takedown of Gold and Precious Metals prices in the near future.  Thus Deepcaster will be carefully monitoring the fundamentals, technicals and especially the interventionals, for a signal the Golden Shoe is about to drop, again.  At that point Deepcaster expects to have made recommendations which would lead to substantial profits on the short side.

 

 

 

Deepcaster

May 24, 2007

 

 

 

 

DEEPCASTER LLC

www.deepcaster.com

Wealth Preservation         Wealth Enhancement

Financial and Geopolitical Intelligence

 

Gravitas, Pietas, Virtus


-- Posted Friday, 25 May 2007 | Digg This Article




 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.