I wasn’t planning to write this morning, but as usual found something to RANT about.
Following the commencement of OPERATION PM ANNIHILATION just HOURS after the Labor Day holiday, the PAPER gold market has been put back into its box. That “box” is quite familiar to me, as I have been watching tick for tick for 9½ years, and see EVERYTHING the Cartel does.
As I’ve noted numerous times, the gold market ALWAYS seems to be falling, yet rises every year, just as the Dow ALWAYS seems to be rising, yet never goes anywhere.
The reason for this dichotomy, of course, is the PPT is constantly SUPPORTING the Dow, but cannot by itself make it RISE, just as the Cartel is constantly CAPPING gold, but cannot by itself make it FALL. The 200 DMA is a POWERFUL long-term support level (LONG-TERM charts DO matter!), nearly impenetrable in fact, as soaring PHYSICAL demand ENSURES all PAPER attacks will fail. The only time the 200 DMA was penetrated in recent memory was for a brief month at the 2008 lows, in that case because the Cartel still had the ABILITY to create DOUBT in the hearts of even die-hard “goldbugs.”
Unfortunately for the evil ones, those days are over, as today’s PHYSICAL Precious Metal owners KNOW the bull market is JUST GETTING STARTED, and don’t even BLINK in the face of DEATH STAR and other vicious attack tactics. The MACD below indicates gold to be MORE oversold now than November 2008, only this time gold is $1,650/oz. compared to $675/oz. then, just as silver is more oversold than in late 2008, only then it was $8/oz and now it’s $32/oz.
Gold is USUALLY going down, certainly on more than 50% of all trading days and, on a net basis, in New York trading hours thanks to the PAPER Cartel. Overall, however, it continues to rise, with most of its gains typically made in short periods of time, such as we saw in October 2010 (before “D-DAY”), April 2011 (before the SUNDAY NIGHT PAPER SILVER MASSACRE), and in August 2011 (before OPERATION PM ANNIHILATION). As frustrating as it is WAITING for the next big surge, sure as day follows night it comes, taking PMs to new highs. In this case, the “new high” for gold will be above the key ROUND NUMBER $2,000, and for silver will be its first ALL-TIME high in 31 years, above the hallowed “Hunt Brothers” high of $50/oz..
Given the explosive fundamentals and “black swan” potential, the next great surge could commence any day, and I truly believe it will be by the end of 2011, if not shortly thereafter.
In the meantime, we will continue to tortured by unnatural waterfall declines, underperforming mining shares, and, of course, the typical Cartel attack patterns that are so easy to spot. This morning, for instance, I walked into the gym to see Dow futures down a whopping 26 points, or just 7% of yesterday’s 330-point gain, while gold was down $14, or 35% of yesterday’s $40 gain, and silver $0.60, or 54% of yesterday’s $1.10 gain. To add to injury, here’s the lame headline the media used to explain the dreaded 26 point Dow futures drop.
No significant news had occurred overnight (not that there is ANY negative PM news), so it was obvious the Cartel was just instituting its hard and fast rule, “all great PM days must be followed by horrible ones.” Not that a $1.10 silver gain is great when you’ve had several $5.00 down days in a row, but when you’ve been tortured for six straight weeks, a day like yesterday is certainly considered great (that’s how the Cartel utilizes psychological warfare). Only during those brief surges, as described above, does gold have strong back to back performances, although of course those days, too, are typically capped at 2%.
Next I looked at the daily gold chart, and lo and behold gold showed its typical pattern of Asian trading. Just as it appeared to turn parabolic, a strange force came in to knock it down, finishing off the “budding excitement” with a DEATH STAR attack an hour later. And the time stamp on the high trade of the day was…drumroll please… EXACTLY 3:00 AM EST. Amazing how I could have written this same article in 2007, or 2005, or 2003. Some things never change.
There’s little need for today’s “horrible headlines”, as it should be clear to all that NOTHING happened last night except yet another Cartel PAPER attack. But now that they have me writing on my planned “off day”…
I MUST start with this vile story, highlighting EXACTLY what is wrong with America, and why the OWS (“Occupy Wall Street”) movement will NOT die. Goldman Sachs not only DOMINATES illegal HFT trading, it also DOMINATES political contributions. And you wonder why so many Goldman executives are running the U.S. government (the ITALIAN government as well, by the way!)…
…and don’t forget Congress finally found a cause to unite on, ACCUSING THE CHINESE OF CURRENCY MANIPULATION. Talk about the pot calling the kettle black! Gee, I wonder if this will have any negative ramifications…
…and how about Greece, the GURANTEED default-in-waiting, which somehow the world wants to believe can be avoided. I assure you it cannot, but if you don’t believe me, let’s take a look what the Greek government bond market is saying…
…and finally, I thought all was well in Egypt after FREEDOM and DEMOCRACY was supposedly achieved earlier this year. I guess not…
All bad, all the time, and this is what I would consider a GOOD day.
Anyhow, the key point of this RANT is that the current period of WAITING is unlike ANY I have seen in 9½ years, in that, for the FIRST TIME EVER, investors en masse are using the current weakness to MASSIVELY increase their PHYSICAL purchases. Global investors no longer FEAR the end of the PM bull, but are starting to KNOW, as I have all along, it is just starting, and that ANY and ALL declines are to be utilized to add to positions. This is why physical PREMIUMS are soaring toward record levels, and delivery waiting times, particularly for silver, stretching out dramatically.
It won’t be long before the NEXT PM SURGE, and when it occurs, I assure you it will not be due to positive economic, political, or social news.
PROTECT YOURSELF, and do it NOW!