Update 03-01-2019

I remember a few years ago as gold was going through an unusually weak period in terms of price, it was disclosed that our government had taken for “safe-keeping”, 40 tons of gold that was previously in Ukraine.

Of course, this was necessary just in case the Russians were to come to steal it. Or so it was explained.

I thought at the time that this gold was likely being used to keep the price of gold suppressed. The reasons that I had at the time, and continue to believe today, is that the likely downfall of the price-suppression of gold and silver scheme could be ended by a failure to deliver the physical metal. It is somewhat surprising to me that this hasn’t happened yet but it always seems that when it appears physical supply is dwindling another “source” seems to show up to save the day for those who are actively shorting (mostly naked shorting) the market.

Of course, the powers that be can trade many multiples of actual available gold and move the price as we have seen over the past few years.

Gold is weaker as I am writing this on March 1st. and I just came across an article (1) that states that the BBC has uncovered a story about the US Army relieving ISIS fighters of 50 tons of gold. For the 50 tons of gold it is reported that the ISIS fighters were allowed safe passage out of Syria.

Anyone who thinks that gold is a “barbaric relic” let me ask you a question. Why would our own government allow safe passage out of an area by our deadly enemies in exchange for gold? Could it be that getting their hands on more gold is more important than knocking out ISIS?

The Syrian Observatory of Human Rights (SOHR) said:

“The US-led coalition forces and the Syrian Democratic Forces (SDF) deliberately do not target the areas under control of the ISIL terrorists and commanders in Eastern Euphrates in Deir el-Zour as they are trying to locate this treasure by forcing the ISIL militants to speak about its location after surrendering.

In an article by Elias Mariat on Zerohedge he wrote:

“Syrian and Russian media alike have long alleged that, contrary to Washington’s claims, it is waging a war on the extremist group US forces are instead collaborating with them in a myriad of ways.”

“During the destruction of ISIS-controlled Raqqa in Syria by the US-led coalition, a secret deal was struck with the group that granted members safe passage as it evacuated the area. The deal, uncovered by the BBC, ensured the survival and freedom of many top ISIS leaders and a number of foreign fighters”.

It is pretty obvious when you hear stories like this along with stories about Venezuela surviving because of their gold reserves and oil (both hard assets) that while those in power want to keep you in the dark about the value of gold (and silver) they obviously value it much more highly than they admit.

I have written extensively about central banks buying gold in record amounts, major commercial banks buying tonnage of gold and silver, countries buying and repatriating their gold in particular (when they can actually get it) and many billionaires- some who have NEVER bought gold in the past like Sam Zell.

What is it that has these entities talking the price down and shorting the paper proxies for the metals while purchasing the real assets for themselves? My guess is that they are actively manipulating the price lower and with that action keeping sentiment at rock-bottom levels because it appears that gold is a dead asset compared to many others. Let’s just look at how dead.

Doesn’t it seem amazing- almost surreal that ALL asset prices have risen since all of this money “printing” and buying of assets has started in earnest in 2008 EXCEPT gold and silver and a few other commodities?

If money is “printed” in the trillions- which it has been- likely tens to hundreds of trillions in reality ALL hard assets should rise because of a weaker fiat currency. Of course, stocks, bonds and real estate have all risen as we would have expected but gold and silver have not participated recently. Basically since 2011 when JP Morgan, et al took control of the pricing.

However, for those with an attention span longer than that of a goldfish lets keep these numbers in mind. Also keep in mind that this artificial suppression will come to an end one day and when it does I expect that this charade will be exposed in a way that most cannot fathom at this time. This is why I believe the rush is on for gold and silver globally even though most US citizens are totally in the dark as to what is taking place.

Since the year 2000 these are the returns of our major stock averages versus gold. Keep in mind stock and bond markets sit near all-time highs and gold is NOWHERE near its all time highs right now.

INDEX                   2000            2007            2019 (3-1)        % Return since 00       Average Annual

DOW                    11,500          14,000         26,000                   132%                               7.21%

S&P 500                 1,500           1,566           2,800                     87%                                4.73%

NASDAQ                5,000           2,500           7,575                     52%                                2.83%

GOLD                         250             700.           1225                      390%                              21.19%

Which asset would you like to have owned since the start of the century? Which appears to be set up for the best long-term returns today? The central banks have this information as do the commercial banks and governments. They also know that any pause in “printing and buying” dooms paper assets as we saw in December.

I always say- forget what they say watch what they do.

Be Prepared!

Mike Savage, Financial Advisor

2642 Route 940 Pocono Summit, Pa. 18346

(570) 730-4880

Securities are offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

1-      US Army Takes 50 Tons of Gold From Syria In Alleged Deal With ISIS (Elias Marat)

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