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Gold Rockets Higher While Munich Listens To GATA



By: Bill Murphy, Le Metropole Cafe, LemetropoleCafe.com


-- Posted Monday, 2 May 2011 | | Source: GoldSeek.com

April 30 - Gold $1556 up $25.20 - Silver $48.58 up $1.06

"A society grows great when old men plant trees whose shade they know they shall never sit in" … Greek proverb

GO GATA!!!

Couldn’t resist that MIDAS headline today. It was during a question and answer period following my presentation to a sold out, standing room only crowd in Munich that I was told gold was trading at $1570. More on that and my trip to Munich in a bit. First, some comments on yesterday’s stunning market action.

The Midas remark on Thursday that The Gold Cartel looks increasingly desperate seems to be on the money. They are going to need to pull a bunch of rabbits out of their hat to derail the precious metals markets from going much higher and seriously affecting their Behavioral Finance operations.

For the second time in a week the CME raised margin requirements on silver ... Thursday after the Comex close. While The Gold Cartel requests timed tactics such as these to assist their price-capping efforts, this move is very understandable as silver rose more in a single trading session than the old margin requirement the other day. Thus, it was very appropriate for the exchange to raise margins on silver…

CME Increases Trading Margins Amid Silver's Volatile Ride

  • By Tatyana Shumsky
    Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Exchange operator CME Group Inc. (CME) raised margins for Comex silver futures for the second time this week as silver prices soar amid much volatility.

The higher margins take effect at the close of trading Friday, the exchange said. The CME revises its margin requirements as a normal course of business, and has previously raised bond requirements during times of high volatility to guard traders against additional risk. The operator owns New York Mercantile Exchange, which trades silver on its Comex division.

For speculators in the benchmark 5,000-ounce silver futures contract, the exchange is raising initial margin requirements, or the deposit required to purchase a contract, to $14,513 per contract, up from $12,825. Maintenance margin requirements, or the additional capital needed to keep the contract overnight, will increase to $10,750, from $9,500.

For hedgers and exchange members, both the initial and maintenance margin requirements will also increase to $10,750 from $9,500 per contract.

CME also raised margins for the Comex silver trade at settle contracts, which allow traders to lock in the day's settlement price for their purchases or sales.

Additionally, the exchange raised initial and maintenance margins for Comex Miny silver futures and the E-Mini silver futures contracts.

Thursday's increase follows a similar margin increase Monday, and comes during the astonishing volatility in silver prices. Silver posted another huge price swing Thursday, with the front-month contract rising 3.4% to a record settlement of $47.520 a troy ounce. Investors have been flocking to this relatively small market to take advantage of the metal's much lower price than that of gold, which is sky high.

-END-

The move appeared to be a precarious one in the early trading for the shorts yesterday as the price of silver roared to $49.24 in the early going. Any small spec short had to be really feeling it and probably caused some shortcovering. However, The Gold Cartel and JP Morgan cannot afford to let opportunities such as this one pass in order to press their case and they did … at least by preventing silver from taking out $50 per ounce with gold surging like it did.

The name of the game yesterday was gold. What a performance! … and little of it did I see as James Turk and I were at the Hofbräuhaus making presentations. Gold exploded, with a high at the $1570 level before it set back to more modest, but substantial, gains by the Comex close. However, the price stormed back in Access Market trading to finish the day at $1565.70. How’s that for a one day trading performance!

As might be expected, silver came under a good deal of pressure relative to gold. Have to give GATA’s colleague James Turk a high five as he told me before the trading for the day started that he thought the gold/silver ratio had gone far enough for the time being and had just acted accordingly. Great call and move!

After surging early, silver began to wilt quickly relative to gold … with the buy gold, sell silver train picking up speed as the Comex session wore on. After what the price of silver has done the past few weeks, this is a normal and healthy development for both precious metals markets.

What was so pleasing about today was the SURGE in the price of gold, so POWERFUL! In recent days we have watched gold struggle, for whatever reason, while silver has soared. Not today. Gold was action central and continues to validate what the GATA camp said it would do, and why … for the short term that means a total repudiation of Bernanke, the Fed, and US government policies ... a repudiation which even the Planet Wall Street crowd acknowledges.

Gold was aided slightly by a weaker dollar, which fell to around the 72.90 level early, but ended the day at 73.05; and by a higher price of oil of $113.99, up 86 cents, a new high for its move up. At last glance the CRB was also making new highs for its move, up 4.25 to 370.56.

It is no small deal that gold surged like it did at the end of the month. The close will have an impact on those who trade technically and from a longer term point of view. The monthly gold chart…

http://futures.tradingcharts.com/chart/DG/M?anticache=1304070532

Speaking of monthly charts, silver is nothing short of SPECTACULAR, to put it mildly…

Monthly silver
http://futures.tradingcharts.com/chart/SV_/M?anticache=1304070574

The gold open interest fell 5174 contracts to 532,576, meaning Thursday’s solid move higher in gold was due to a good deal of shortcovering ahead of Friday’s super breakout. The silver open interest went down another 6132 contracts to 129,712. The dramatic drop in the silver open interest the past three days is also stunning. It appears JP Morgan and friends have used the margin increases and profit taking by specs to finally begin to reduce their massive short positions. If so, and we will only know that in the weeks ahead, they still have a long way to go.

That deduction regarding the reduction of the massive JPM short position appears to be corroborated by the COT numbers released Friday afternoon…

Silver

*The large specs reduced longs by 5,247 contracts and increased shorts by 3,524.

*The commercials reduced longs by 1,720 contracts and reduced shorts by a steep 8,438 … and that did not include the large open interest drops of the last two Comex trading sessions on Wednesday and Thursday.

*The small specs increased longs by 982 contracts and increased shorts by 2,369.

Gold

*The large specs decreased longs by 13,601 and increased shorts by 59. Those longs who exited missed out on the dramatic move higher in the price of gold the past two trading days.

*It appears some commercials saw this move coming. They increased longs by a significant 9,242 contracts while reducing shorts by 8312.

*The small specs reduced longs by 1,377 contracts and increased shorts by 2,517.

It should be noted that the past five weeks or so the price of silver has popped in Access Market trading following the release of the COT report on Friday afternoons when it showed the commercials (JPM) were not reducing their short positions. That all changed yesterday when it was revealed some commercials (probably JPM) were finally running for the hills. Silver dropped $1 from its Comex close before recovering to $47.94 late in the day in Access Market trading.

The latest from James Mc yesterday morning…

Nefarious numbers are in

Bill,
The gold manipulation numbers are in for the first 4 months of 2011 and it is nothing short of incredible. This level of artificial suppression can only lead to one thing, and that's a melt-up similar to silver. Like silver's recent "disorderly" behavior the physical gold market will soon be causing BIG time trouble for trapped Comex shorts. Nobody could even remotely claim gold is frothy after looking at these figures. If you knew nothing about the underlying fundamentals of the product, and were strictly looking at these figures you would conclude that the world is fine, and "inflation expectations are well-contained". Such is the hypnosis being applied by the sycophants. Here is the tally of nefarious cartel trading up to April 30th:

Total Comex trading days: 82

Trading days above 2%: ZERO

Trading days with a close above 1%: 5 ( 6.1% )

Trading days with rallies stopped near 1%: 31 ( 37.8% )

Trading days with a sharp AM selloff: 71 ( 86.6% )

Average daily gold gains 1.36 (at $1,538)

Total PM fixes at least $5 higher than AM fix: 12 (14.7% )

Total PM fixes at least $10 higher than AM fix: ZERO

Total PM fixes at least $10 lower than AM fix: 8 (avg. loss $13.40 )

HUI close 12/31/10 573.22

HUI (10:00 AM) 4/29/11 584.00 (+ 1.9%)

It is notable that almost ninety percent of the time the cartel needed to paint the early tape with an AM selloff. It is also interesting that over one third of all trading days were wanting to go MUCH higher, yet were tagged at 1%. This is evidence of fierce buying being met by resolute cartel paper selling. Curious too how there seems to be a lid on the PM fix at about $9 higher. Apparently for that event even 1% gains are out of the question. In fact only 3 out of 82 PM fixes even came close to a $9 gain. Nearly 85% of the PM fixes were either lower, or no higher than $5.

Lastly, as everybody here painfully knows, the HUI has acted oblivious to a 60% rise in silver and 8% rise in gold. If you didn't know better you'd think the HUI represented the homebuilder index, rather than precious metals. In fact up until late this week the HUI was actually DOWN for the year. I'm still waiting for the first major mining executive to publicly proclaim foul. They don't deserve the bounty they're being afforded.
James Mc
(Good luck in Munich, and hope you have some fun too.)

Now a recap of my trip on behalf of GATA to the lovely city of Munich…

Yesterday morning and early afternoon was filled with interviews, including Germany’s Smart Money Magazine, Gold Money’s James Turk, and Lars Schall.

Then it was off to the Hofbräuhaus from 6 to 10:30 with James Turk for a presentation in front of a packed room of around 200 people from 15 countries who came to hear what the GATA camp had to say. The crowd in attendance was a sophisticated one, including the renowned Egon von Greyerz, Managing Partner of Matterhorn Asset Management AG, who flew in from Zurich and is coming to GATA’s Gold Rush 2011’s August conference in London.

The event was held by Peter Boehringer of Deutsche Edelmetall-Gesellschaft (DEG):

"An Evening with Bill Murphy", Munich, 29 April 2011

Nabend Edelmetallfreunde,

in der Sache erlaube ich mir einen Veranstaltungshinweis:

  • Peter Boehringer (DEG): Introduction
  • James Turk (GoldMoney Foundation, http://www.goldmoney.com): Short Speech „Current Status of the World Economy, the Financial Crisis & the Role of Precious Metals"
  • Bill Murphy (GATA, http://www.gata.org): Key Note Speech "The Secret to understanding the Gold and Silver Markets is to know what GATA knows"
  • Panel Discussion: Bill Murphy, James Turk, Peter Boehringer
  • Audience & Panelists: interactive Q&A session
  • Informal & "inofficial" group discussions

***

When it was remarked gold was $1570, it lit the park up for me as it meant the price of gold finally shattered the 2% Rule, so often brought to our attention by James McShirley. Both James and GATA have long said that once the 2% Rule was broken convincingly (especially now after so many 1% Rule days), it would mean The Gold Cartel is really on the ropes. Little did I realize (speaking at night in Munich) there was still time for the cabal forces to make sure their 2% Rule was not violated by the Comex close. Hence, the price was taken back down $14 for that close, which I did not know until I returned to my hotel room. So much for my saying to the attendees that Friday was a watershed gold day. Close, but no cigar quite yet.

I would like to thank Peter and James Turk for organizing such a special event for GATA. Although to my regret, there were so many questions and people to talk to, I only had time for one small beer in this renowned beer hall.

It is like two worlds out there. Come to Munich and it is standing room only to hear what GATA has to say. Do the same thing in the US and you can’t give the tickets away.

In that regard I had breakfast this morning with GATA consultant Dimitri Speck, who has been instrumental in spreading the gold suppression scheme notion throughout Germany. Dimitri, a money manager who bases his trading on quantitative analysis, has written a book titled, Geheime Goldpolitik (Secret Gold Policy), which is quite extraordinary. (He went through the book explaining the chapters over breakfast.) An overview…

What a Managed Gold Market Tells us about Bubbles

The Book

In times of financial crises and imminent sovereign defaults, gold is on everyone’s lips. As a safe investment, one could rely on good performance. But often the price suddenly drops. It does so without visible reason and even when the panic reaches its peak. Buy why? Dimitri Speack knows the answer. He has found out in detail how central banks secretly mange the gold price with the intention to calm the markets and to control inflation.

There is an even bigger issue behind this manipulation: Since the abolition of the gold standard in 1971 the indebtedness of the global economy is increasing. It has now reached a level which is way beyond comprehension. What are the mechanisms that have led us this mega bubble? Is it possible to avoid a catastrophe outcome like deflation or hyper inflation?

***

Thanks to Dimitri’s efforts the gold price suppression scheme and GATA’s analysis and claims are generally accepted (even if privately) in the German money manager world. He believes it is only a matter of time before someone in the mainstream central banking world acknowledges the gold price suppression scheme and overnight it will be a generally accepted fact in the investment world. Dimitri’s work has been covered in mainstream publications such as Suddendeutsche Zeitung and Handelsblatt. GATA congratulates Dimitri and hopes to see him in London.

Oh yes, the "quant" Dimitri believes the price of gold is headed for $15,000 per ounce as inflation picks up speed.

The euro was last at 1.4806, the pound at 1.6703, and the yen at 81.17.

More gold goodies:

Astute Gartman comment

Friday, April 29, 2011

The CME Final for Thursday reports that on volume of 198,960 lots open interest dropped 5,174 contracts, 0.96% or 16.09 tonnes, to 532,636 lots. Gold of course was up 0.49% basis stock market close. Apparently the market still contained a lot of skeptical shorts. Gold share owners are well aware of this.

(The CME Final for Wednesday reported that on volume of 178,542 lots, 29.1% or some 40,000 lots above estimate, open interest rose 7,678 lots – 23.88 tonnes or 1.45% to 537,810 lots. Gold closed up 1.8% basis 4PM NY time: at one time a much bigger open interest increase would have been guaranteed. Probably part of the post-Bernanke surge was short covering also.)

Indian ex-duty premiums: AM $6.59, PM $5.29, with world gold at $1,532.62 and $1,537.05. Very ample for legal imports. The rupee helpfully surged 0.5% to close at $1= R44.21 (R44.43). The stock market closed down 0.81%.

Some years ago it was common for India’s local prices to lag a world gold move of this type by $10 or more until the public there adjusted or world gold fell back. That is just not happening this time.

Local Vietnam gold this morning stood at a $13.18 discount to world gold (Thursday $12.58/$1,528.15).

Shanghai gold closed at a discount of $5.05 to world gold of $1,533.05 on volume equivalent to 9,570 NY lots (Thursday (39c/$1,531.05) The Yuan was allowed to edge up further, to a 5.01% post $US "depegging" appreciation (Thursday 4.84%). This was despite the $US Index being more or less stable.

It is a logical possibility that Chinese dealers are pulling out of the market expecting a significant firming in the Yuan. All things being equal this would reduce the Yuan price of gold. JBGJ, however, will believe this when it happens.

Tokyo was closed today.

Gold only responded only tepidly to silver’s surge to a record high around 11-30 PM NY time, but it has staged a powerful rally all of its own today in the later floor session. Estimated volume at 12noon was only 88,703 lots but most of the move came later.

JBGJ was struck by the apposite nature of a comment by The Gartman Letter today:

"This morning we’d like to take yet another look at the Fed. St. Louis’ Adjusted Monetary Base, which continues to skyrocket and which continues to cause us a great deal of concern. Since the start of this year, the AMB has gone from just barely below $2.0 trillion to nearly $2.55 trillion. That is an increase of 27.5% in only four months and that is, in our opinion, very nearly criminally inflationary. We don’t even want to annualize this sort of increase in the AMB, and we needn’t given that we would want to see the base grow at an annualised pace of only perhaps 4-6%, sufficient to fuel real economic growth of 3-4% and population growth of 1-2%. Clearly the monetary authorities are fuelling something more than that. Why they are doing so is another question for another time." Reporting M3 was abolished for a reason. An additional discussion of this event is at

http://www.marketwatch.com/story/m3-mutterers-refuse-to-give-thanks

***

CARTEL CAPITULATION WATCH

The always rising DOW finished up 47 to 12,810. The DOG lost 1 to 2872.

U.S. economic news:

08:30 Q1 Employment Cost Index +0.6% vs. consensus +0.5%
* Q4 ECI was +0.4%
* * * * *

08:30 Mar US Personal Income +0.2% vs. consensus +0.4%; Consumption +0.6% vs. consensus +0.6%
* Core PCE +0.1% vs. SA consensus +0.1%
o Feb Personal Income revised to +0.5% from +0.3%
o Consumption revised to +0.9% from +0.7%
o Core PCE unrevised from +0.2%
* * * *

COMEX Warehouse Stocks Apr 28, 2011

SILVER

ZERO ozs withdrawn from the dealer’s (registered) inventory
401,423 ozs deposited in the customer (eligible) inventory
Total dealer inventory 33.32 Mozs
Total customer inventory 68.73 Mozs
Combined Total 102.05 Mozs

GOLD

ZERO ozs withdrawn from the dealers (registered) category
ZERO ozs withdrawn from the customer (eligible) category
Total dealer inventory 1.94 Mozs
Total customer inventory 9.09 Mozs
>Combined Total 11.03 Mozs

There were no movements of gold in or out of the warehouse but 107 kozs of gold were transferred from the customer inventory to the dealer inventory by an internal adjustment. In silver 0.4 Mozs were deposited in the customer inventory putting a "102" handle on the total inventory.

The Comex failed to update the daily report on delivery notices. The APR gold delivery notice total for the month is 3,884 notices or 388,400 ozs.

The APR silver delivery notice total for the month is 312 or 1.58 Mozs.

MAY is now the front month. The OI in silver stands at 10,960 contracts with first notice day tomorrow. In gold it stands at only 457.
Cheers
Adrian

COMEX Warehouse Stocks Apr 29, 2011

SILVER

14,275 ozs withdrawn from the dealer’s (registered) inventory
106,872 ozs withdrawn from the customer (eligible) inventory
Total dealer inventory 33.30 Mozs
Total customer inventory 68.62 Mozs
Combined Total 101.93 Mozs

GOLD

ZERO ozs withdrawn from the dealers (registered) category
2,857 ozs withdrawn from the customer (eligible) category
Total dealer inventory 1.78 Mozs
Total customer inventory 9.24 Mozs
Combined Total 11.03 Mozs

There were 2.8 Kozs of gold withdrawn from the customer inventory. 152 Kozs of gold were transferred from the dealer inventory to the customer inventory by way of an internal "adjustment". In silver 0.12 Mozs were withdrawn from the Comex warehouse bit not one single ounce was received!

There was 1 delivery notice issued in the MAY gold contract. The MAY gold delivery notice total for the month is 20 notices or 2,000 ozs.

There were 4 delivery notices issued in the MAY silver contract. The MAY silver delivery notice total for the month is 10 or 0.05 Mozs. This is another shocker because the Open Interest standing for delivery is 2,166 contracts which is 10.83 million ozs. The lack of deliveries after two notices days tells us the shorts do not have any silver available. No wonder MF Global compliance dept. is in a state of panic and has increased their margin requirement to 175% of what CME minimum is set at.

The OI for MAY in silver stands at 2,166 contracts and in gold it stands at only 202 contracts.
Cheers
Adrian

Fed's secrecy is deceitful and corrupt, Texas professor Auerbach says on Bloomberg TV

Submitted by cpowell on 08:05PM ET Thursday, April 28, 2011. Section: Daily Dispatches

11p ET Thursday, April 28, 2011

Dear Friend of GATA and Gold:

Interviewed Tuesday by Bloomberg Television, University of Texas Professor Robert Auerbach, formerly an economist for the Federal Reserve and an aide to the late House Banking Committee Chairman Henry Gonzalez, D-Texas, recalls how the Fed has a long, corrupt history of hiding and then destroying its records to keep the public ignorant of what it is really doing. Congress should legislate to make the Fed more accountable, Auerbach says. It's something to keep in mind in regard to GATA's recent lawsuit against the Fed to obtain gold-related documents. The interview is not quite eight minutes long and you can watch it at Bloomberg TV here:

http://www.bloomberg.com/video/69042262/

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Zero Hedge speculates on short squeeze in silver

Submitted by cpowell on 10:07AM ET Friday, April 29, 2011. Section: Daily Dispatches

1p ET Friday, April 29, 2011

Dear Friend of GATA and Gold (and Silver):

Zero Hedge today cites GATA, GoldCore, and Max Keiser in an intriguing speculation about a short squeeze and cornering in the silver market. It's headlined "GoldCore Questions on Comex Silver Default Due to Secret Buying by Russian Billionaire, Chinese Traders, and People's Bank Of China" and you can find it here:

http://www.zerohedge.com/article/goldcore-questions-comex-silver-default...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Silver in India

Hi, Guys,
I spoke to my friend earlier today. It's still hard to come by silver in Kilogram quantities, even today, in India. We have to remember that the more common denominations in India are 100 grams and smaller.
Have a great weekend.
Tehmaas

Mexico Mike…

The silver debate

Hi Bill!
I would love to know where the silver market sentiment data is coming from. It seems every widely circulated commentary on silver these days is extremely bearish. The silver stocks have been selling down for most of the month and it is hard to find an investor that thinks silver can sustain this price range. However there is a disconnect that underway that we have expected for a long time. All of those whom are bearish point to the spot silver price to support their case. Consider this article from Market Watch:
http://www.marketwatch.com/story/silver-mania-may-c
ome-to-an-abrupt-end-2011-04-29?pagenumber=1

I question the term 'mania' to discuss silver because hardly anyone actually owns any silver and the silver stocks are trending lower for the short term. But further along, the author quotes such luminaries as Nitwit Nadler, poor old Ned Schmidt who has been screaming the silver bubble story since it traded at $30, and even clueless Chris Ecclestone gets quoted to suggest the fair value of silver is only $30.

I do not take anything these clowns have to say seriously, since when silver was below $10 the commentary stated that the market is never wrong and that the low price is a sign of abundance. Well now that silver has moved up to more reasonable levels, the same guys are all calling a bubble. I thought the market was never wrong? None of the discussion I have read even considers the possibility of a short squeeze in the futures market, or a real shortage of the metal. None of these bozos that point to wild speculation ever discuss the wild shorting spree that has contained the metal. I hear all the time about irrational spec buyers but is it not even more irrational to be wrong about the trend of a metal and still pile on more shorts as your position blows up by hundreds of millions of dollars?

The price level that silver has reached seems high in the context of the lows that were endured at the bottom of the bear market. However, why should silver be the only commodity that has NOT broken to new all time highs in this bull market? And on a fundamental level, I doubt that the $50 range is going to suddenly be the magnet to increase supply. Every silver miner was running flat out when silver broke above $25. There is not one silver producer on the planet that can easily increase production just on the basis of the price rise. On the contrary, some producers have been hedging forward sales into this rising price, which does not produce one single ounce of new silver.

And on a related topic, I wonder if the corrupt Mexican cops have all been hired by the SEC? Mexico has a tradition of cops that are paid not to see things and so they are ideal for the job. I mean how else to explain the failure to investigate obvious market rigging operations. It does not take a genius to spot that silver stocks have been hammered the day before every COMEX margin increase. Every time, and usually when silver is rising strongly prior to this action, the silver stocks are hit hard. THEN the news comes out about increased margin, usually followed by downside pressure on silver itself, allowing the new shorts to cover easily on high volume trading. This scam is so easy to spot and one need only pull the trading tickets on the larger silver stocks on those specific dates prior to margin increases to identify and prosecute the criminals. I doubt anything will ever be done to protect investors on this or any other scam in the PM sector. So much for the free and fair markets.

At the end of the day, the fundamentals are going to determine the longer term trend for silver. Those who believe there is abundant supply and irrational speculation on the long side will have sold and gone short. Those who believe there is an acute shortage of the metal will continue to accumulate and will await a resolution to the countertrend selloff in the silver stocks. The rhetoric flying around has certainly attracted the attention of the market but if there is indeed a silver shortage as I believe, then the price of silver will run much higher before all is settled. There is plenty of silver bullion still around, but not for sale below $50 and those who have been shorting against this move may find it the most costly mistakethey ever make.
Cheers!
MexicoMike

Bill H:

Remember when...

To all; can you remember way back when... if you spoke your mind and said something crazy like "Gold really should be trading at $600 or more" people would just laugh or roll their eyes. $50 Silver was a whole 'nother story while trading for so many years between $4 and $7, a new high in Silver? $50? Never, not possible, can I give you the name of a good shrink? My point is this, we are now trading a new high (albeit suppressed) prices for both Gold and Silver that even 2-3 years ago were thought to NEVER be possible!

But there is a kicker, the Dollar although quite weak has still not totally collapsed and is still being propped up artificially to continue the facade of functionality. What do you suppose Gold and Silver will do once the artificial support to the dollar gives way? Again, many many smart people have been putting "Dollar price" forecasts out of $2,000, $5,000, $10,000 and more. Whatever the highest number is that you have EVER read is flat out wrong in my opinion because as Jim Sinclair says, "QE to infinity" is where we are headed. I completely agree with this concept as mathematically the U.S. (and the entire world for that matter) MUST inflate and print at rates ever greater and in an exponential fashion!

"Infinity". Think about this concept for a moment, "infinity". What does it really mean? Can it ever really be attained? Doesn't it really mean that something "goes on forever and has no end"? Of course it does but the Treasury and Fed cannot borrow and print forever because markets will balk long before the "exponential stage" really gets going. The opposite of infinity is "0" or in other words NOTHING which is exactly where the Dollar is headed no matter what policy response is chosen from here.

I started this out with "remember when", in the future people will look back $50 Silver and $1,500 Gold as if they were FREE. These levels in the future will look far cheaper than $4 Silver and $250 Gold does now! This entire episode is all about the end of a financial and monetary system with no foundation. I have written many times before that "this is for all the marbles", it truly is. Wealth by paper has been created and believed in for nearly 100 years now, once we make the "jump" to the next monetary system, those holding real money assets will be the ones who accrue ALL THE MARBLES!

ALL of the paper wealth will accrue back to where it always belonged, into real money! $100 days, $1,000 days $10,000 days will be commonplace IF they don't evaporate the Dollar for another currency. The future will in my opinion be entirely about "revaluation". It is happening now but once the process goes exponential it will be too late. Yes I know, many many people believe it is already "too late" and Gold is "too high". It is not and it is not, you can still purchase Gold and Silver for paper currency. The day will come when physical metal will not be offered and paper not accepted, THAT is when it will be "too late"! Call it the "infinity zone" when no amount of paper currency will bring physical metal out of it's deep dark sleep and onto the market. Scary concept this "infinity thing"! Have a good weekend. Regards, Bill H.

There is little doubt in my mind there is an organized effort to keep gold/silver excitement as managed as possible by preventing the gold/silver shares from going to where they ought to go … and WILL GO! With all that the prices of gold and silver have done, the HUI remains contained. It rose 9.54 to 592.50. Voila…

HUI
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?symb=HUI&sid=16794&time=8

The XAU only went up 1.83 to 222.22.

It is uncanny how many times the price of gold has taken off when GATA has made organized, publicized presentations outside of the United States. Call it a fluke, but it has occurred time and time again over the past decade. For whatever reason, we will take it.

Clearly the investment world is realizing the need to own gold as a protection against inflation and massive money printing. While this has been extremely obvious to us on Planet GATA for some time, it is wonderful to have so many new investors join the party, a party which is going to last for a long time.

As the general investing public comes our way, and they gradually are now, watch for the gold/silver shares to go ballistic some day. We are not there yet, but that day is coming. So remember…

GATA BE IN IT TO WIN IT!

MIDAS

Appendix

Bart,
The criminal take downs by JPM, Dimon, Masters and the CME have escalated over the past week.... I know.... hard to believe since they have been doing this on a daily basis for years. Please pull the trading tickets from today.... at noon a 60 cent take down in silver over one minute and at the SAME PRECISE moment a take down in gold with NO NEWS that was pertinent to either precious metal. Then a second take down in both metals at the same moment at 1:30..... and then tonight the criminals at The CME announce a second margin hike in one week. They did this before ( two margin hikes in one week) in November of 2010 with the same pattern of trading activity preceding both margin increases. If I can see it and figure it out.... the economic and financial ivory tower intelligentsia at The CFTC should be able to see it.

Come on Bart.... this is a joke..... The CFTC is there to be a regulator not an accomplice to a crime that has been ignored for two decades !
Dave


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