As I write this on November 24th. the DOW hit 30,000 for the first time and the S&P 500 also hit another new record. Some of the reasons given for the uber-bullishness are the idea of having Janet Yellen (Former Chair of the Fed) as Treasury Secretary in the supposed new Biden presidency, the idea that the new administration will cause more “printing” than the last and propel asset prices even higher.
In addition to this the US dollar is under pressure because of these very same reasons.
In a non-manipulated market this would be monstrously bullish for gold and silver also. Of course, we have massively manipulated “markets” and we are seeing the exact opposite taking place here.
As I look at what is happening I would normally be worrying that the gold market is smelling something fishy and is giving a leading indicator (as it has many times in the past) to the other “markets” that something bearish is coming our way. This may still be true but I believe there is a much more sinister answer out there.
The bullion banks have gone all-out this year to keep the price of gold and silver from skyrocketing. They do this by conjuring up paper contracts for gold and silver (much like central banks conjure up trillions of currency units out of nowhere) and dumping it on the “markets” which leads to more selling. (King World News, et al)
According to Andy Schectman last Monday Nov. 16th. 1.5 times of the year’s mine supply of silver was dumped into the “market” just in that morning alone. Really?
The reason for this is that it appears there is a shortage of the metal (last week I reported that Andrew McGuire -metals trader in London) said that the major banks were threatening anyone who wanted to take physical possession of the metals from the COMEX would be blackballed going forward.
In addition, the bullion banks have been massively short and with prices where they were could have caused some massive pain in their balance sheets.
In my opinion it is obvious that stocks, bonds and real estate are being artificially propped up while the metals are being artificially repressed either to disguise the massive loss of purchasing power of fiat currencies, the accumulation of the physical metals at a repressed price by central and major banks, or more likely BOTH.
While the “markets” scream higher for the time being we can see a real chasm between the economy and the “markets”. Just today, it was announced that ANOTHER 778,000 people lost their jobs last week. While these numbers are far superior to the millions we were seeing earlier this year the numbers are stubbornly high and there appears to be no end in sight as lockdowns are continuing to grow.
I believe we can expect the Fed and other central banks to continue to prop up the “markets” but it will just lead to more of the same- the rich getting richer and the poor getting poorer. Oh- and don’t forget the middle class becoming FAR less middle and moving lower.
I have written many times that every fraud has its own demise built in. This one is NO different. As I have pointed out, the 4 precious metals that have their price determined in the paper markets are gold, silver, platinum and palladium. All of these prices have been massively manipulated but as I write this gold is $1818.00, Silver is $23.57, Platinum is $965.00, Palladium is $2353.00 (all per ounce) and the one metal NOT traded on a paper market- Rhodium is at $15,700.00 per ounce! Palladium is in short supply and has historically been the cheaper cousin of platinum. They are still playing the paper games with palladium but this is what happens when there is a physical shortage. The price goes up anyway. With Rhodium- certainly not the most “precious” precious metal- this is what happens when there is real price discovery and metals are actually changing hands. This information alone leads me to believe that gold is massively undervalued and I continue to believe silver is THE most undervalued asset on the planet.
My point here is you can “print” all you want but as the numbers explode higher there is only a finite amount of everything- including metals and eventually the price will adjust to where it should actually be rather than where it is because of intervention.
There are plenty of clues that we are getting very near this point. Don’t let the paper games and manipulation deter you from getting where you need to be.
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