Thursday, January 3, 2013

WHAAAACK!

Gold target painted...now hit um with the hellfire strike......light um up NOW!
SHOCKING collapse of the PM trade today just as several key technical breakouts were about to kick in the algobots into bull mode. Funny how that happened with the FOMC release of the consternation of several members regarding the roughly 84Billion in monthly debt purchases. I guess we now know the growth in our GDP is going to exceed 9% by later this year as we glide onto a sustainable path of growth that will allow us to mathematically begin paying down this years budgetary debt of over 1.5 Trillion AND financing our multiple wars AND paying down the overall debt of 16 Trillion AND reestablishing our unfunded liabilities balance sheets of over 100Trillion AND getting our state and local red ink back into balance AND getting our consumer debt back into the black AND finally getting our structural job collapse into a recoverable pathway of private sector growth.

Some of you may find the above paragraph worthy of a snooze but it is essentially the summary of the mathematical variables that make the FOMC release today worthy of a gut ripping belly laugh. I almost became incontinent when I heard this garbage being spewed while I was traveling today. ARE YOU KIDDING ME?? Does anyone with a high school algebra backround understand JUST HOW LUDICROUS this faux debate is. YOU schmucks are going to pull QE this year??? JUST TRY IT....I DOUBLE DARE YOU...You pull it and every apocalyptic doom and gloomer out there will get their wish in less than 24 hours. Simply put .....of course its all an illusion. Maybe it was a test case to see how the reaction of the bond market participants would react.......at least those that are purchasing outside of the Fed's purchases. Maybe they just wanted to have a bizarre joke on those that are still market participants that believe the punch bowl can really be taken away. Even more nefarious....maybe they want to try and hold the price of gold and silver in check by continuing the illusion that dollar and Central Bank printing can repair the system by the end of this year. I hope they can. Don't spit in your cereal..........I do hope they can keep this delusional system alive and twist illusion into reality. I HATE what I see coming and it is going to be painful and WORSE a lot of my friends and yours are going to suffer even further if it deteriorates into chaos.

NEXT........back on my home terf and don't be bothered by today's noise...I'll repeat THEY don't want you in this trade....When I talked with a hedge friend of mine this spring about this trade... he just shook his head and said I don't know how you deal with their volatility.....They had crushed him in a run he had taken at one of the silver miners and he wanted no further part of the miners. Another friend that is a banker and reads this blog discussed with me how bad the miners were a few months ago and we both agreed that Where in the hell would we prefer to park cash if we HAD to be in paper??....Both of us have physical but have to be in some paper right now. Most of you should be in JUST physical if you don't have to be in paper........I mentioned recently that I would be comfortable with a beatdown in the near term before they really went into the next ramp. Let's see how it plays out now with gold just under its 200dma now.......should be fun and I still may get my silver buy under 28ish..........YOU procrastinators just might get that gift bullion buy.......It will be your last so I hope your trigger finger doesn't freeze on your buy. gl



53 comments:

  1. I ain't going to lie, this recent breakdown in precious metals is painful.

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    1. of course it is....that's the idea.......if its not then you ain't really in da trade......

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  2. hehe, been in this trade too long to bail at this point. I will stick to the fundamental thesis on this trade and hold tight. the thieves play the game very well. too well actually.

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  3. Excellent post Kli. Following the release, I immediately received a few panicky emails from friends as PMs were beaten down. A few wondering if the Fed had finally got its act together and that the gold/silver trades were finished. I thought to myself this is EXACTLY the reaction they wanted. They didn’t make the necessary budget cuts to save the US$ and thus so it tumble the day following the “stick save” as you call it. They had to stop the bleeding somehow following that jump in PMs, Euro, etc. etc. etc. I’m running down to my local coin shop during my lunch break for another round!

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  4. Phil Davis points out today the 3 Fed Governers are speaking today, and...the treasury needs to sell 100 billion in bonds next week. So, perhaps an overall bearish tone comes out of the mouths of these Governers to help sell those bonds.

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  5. They could have made that statement for a number of reasons, one being to give Moody's cover so they don't downgrade US Debt. While they are making the trade uncomfortable for many by design, in retrospect, we will look back someday and say this was actually the easiest trade ever.

    We know with 100% certainty that PMs will skyrocket (physical) so if you buy and hold, you will do very well relative to everything else when the SHTF.

    So while some of us may have some indigestion or sleepless nights, buying physical PMs and miners is actually the easiest trade with a 100% probability of success.

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    1. What the cabal relies on is fear....they are scaring people out of positions..no different then a short attack on a stock...look at Qcor, cash up the ying yang, great earnings, going to blow out again this qtr. Approved FDA drug, shotrs are using a play on words from Insurance companies and The Street publishs article that hedgies pay for and boom...kill the retail...

      Same with Arna, the reason it's being held down was MM's didn't do their homework and were not expecting fda approval, they owned only about 7% of shares, while they held it down they have taken retail jittery traders with no patience out of trade. Now they own 50% of float....

      Games are just that! play with them...have patience...unbelieveable patience...rewards come...

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  6. Most of us here assume that everyone that reads this thread knows what to do here......I have received private e mails from some that remind me how many out there are just getting into this trade......so I will remind those in that position buy one oz silver rounds ....at your local coin shops or online........also ask about "junk" silver ...old dimes quarters etc pre 1964........gl and enjoy the beatdown.......got my fingers crossed....the deeper the better but I am afraid the rebound could be just as fast and furious.......

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  7. also I hate to be a debbie downer for the morning but the current discussion on CNBS with secretary hilda solis......is beyond laughable...even CNBS is asking her some tough questions regarding the absurdity of the recent "fiscal cliff" fiasco using those words and "laughable" and "a joke" and that CNBS felt "used" in promoting the "rise above" mantra......hehehehhe....hey the ponzi is beginning to feel the strain so try and laugh about it and keep preparing all of you.....hope for the BEST and plan for some real pain......tighten up your game

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  8. We are in the end game and this is analogous to the roar of a mortally wounded lion that is backed against a wall by a pack of hungry hyenas.....he is using his only defense..."hot air" and that's all that's really left from the ponzi.....

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  9. Hello everyone. My name is Joe, I am new here and will be asking lots of questions in the near future. I am trying to follow along with times but am too new to understand alot of things. First what does PMs stand for? Do you guys negotiate prices with your local coin shops?
    Thanks in advance for any insight and knowledge!

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    1. Precious metals and there are no dumb questions.....you have to own physical metal which means you have to HOLD it yourself.......buy silver or gold rounds at your coin shop

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    2. Put this blog on your favorites........
      http://www.brotherjohnf.com/archives/115618

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    3. Welcome Jeoda.

      For online gold purchases, a lot of us use Gainesville Coins:


      http://www.gainesvillecoins.com/

      Their prices are quite literally "real time".... Sure they get a mark-up, but it's pretty small compared to most.

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    4. I hate to pump anyone but I second Jay and use gainesville also

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    5. Joeda,

      Welcome to Kli-Ville! He's right there are no dumb questions, considering I had the market cornered on them for a while :) Would be worth your while to go back in time to review some of the older posts to try and play catch up, especially those by Palmer Joe and Immred plus there's tons of great links to follow.... Keep an open mind and over time you'll SEE things it ain't what you though they were.....

      Picked a fine day to be out of pocket.... Grrrrr

      Wasn't able to take advantage of sub $30 on Silver

      Idiot!!!!

      Anyway, Hope they kick it down below $30 again next week, $ 26 would be a dream...

      I have had no problems with APMEX but will check into your suggestion

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  10. The beatdown in silver is basically resting on major support from what i can see and hasn't broke it. Looks like this *may* be it. I plan on buying SVM on Monday if this holds.

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    1. cmon Hubz....let um really scare out the peeps......run it to 26....puleeeeze

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    2. That's fine with me haha... SVM for $4? Ridiculous!

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  11. My feeling is that they will suppress the price for as long as paper trades with the catalyst to higher prices being the drying up of physical supply. With everything that has gone on up until now, QE3, QE4, etc etc and silver still hovering around $30, I don't see why they'll ever let the paper price move up much.

    I'm starting to believe that they can and will control the paper price until we wake up one morning with the COMEX closed and physical silver at $250/oz.

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  12. The limiting factor is the purchase of actual bullion. Much of the bullion that has been purchased is in the form of paper. BUT the bigger ponzi is the purchase of actual bullion BUT being held in storage vaults of the bullion banks....ITs being leased ...when the owners find out it will crush the trade

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  13. http://www.brotherjohnf.com/archives/115712

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  14. Capitulation on Turd's post today....that's why I go there nowadays......for sentiment and he hit bottom today......he has been taught "respect" by the PTB and has been brought to his knees.....love those sentiment indicators

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    1. I don't even go there anymore. I like him and feel his intentions are good but I just can't take it anymore. Same old same old. Not dealing with reality.

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    2. Funny how he would accept "some" of the "conspiracy" theory if it suited him but he wiped out the great posters like EWC58 and Bay of Pigs...etc that obviously were much better informed and stuck with the neocon shills that were the same schmucks supporting the cabal he was fighting in his trade. Way too many contradictions to trust his judgement and his constant short term pollyanna stance..... There were many seasoned traders warning of this type of smackdown including PalmerJoe and Imred here......You HAD to believe the cartel is EASILY powerful enough to do this in the near term......so live with it turd and I warned him NOT to play in the options with these guys........any leveraged trade has to be made with this as the result......

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  15. KLI: Your photo and caption at the top of today's blog post had me laughing in tears. You made my Friday.

    Have a good weekend.

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    1. I know a lot of people that read this blog do not understand HOW this trade can be so controlled......that's because they truly don't believe what we are telling them in terms of just how controlled their lives have been and are.....thats fine......but ALL of this validates my thesis and yes Jay I truly do find this entire situation bizarrely amusing and just have to laugh my ass off at the humor of it......gl to you.....and thank you cartel I just converted some more fiat to silver bullion

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    2. It is frustrating to talk to people about it as I usually end up just saying that if you watched it daily since 2007 like I have you know it's manipulated to all hell. People refuse to believe it! It is all gamed!

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    3. Agreed Hub's, I only converse now if the person is open minded, other wise its a waste of time. However, You have to MARVEL at TPTB for just how well the have conditioned us! It's really amazing and to Kli's point it is bizarrely amusing at times that the chit spewed from the Pol's and Media is actually believed by the Peep's as reality......

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  16. The beatdown continues:

    Gold Feb 13 (GCG13.CMX)
    -COMEX

    1,649.40 Down 25.20(1.50%) 1:30PM EST

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  17. Geez the Yen is getting smashed.

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  18. what's with 8:30 AM EST? why such drops always happen at this time?

    looks like today's drop was to take out some more stops.

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  19. some miners r turning green. interesting

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  20. should read this

    http://www.guardian.co.uk/world/2013/jan/02/euro-greece-barter-poverty-crisis

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    1. I wonder if America will ever become like this?

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    2. thats why i put it up........VERY possible

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    3. we are doing this in the us as well. i remember reading about some major ones in the south back in 2008/9 time.

      http://money.cnn.com/2012/01/17/pf/local_currency/index.htm

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  21. something I found in my hard drive....LOL

    I found the article on www.jsmineset.com (http://www.jsmineset.com/) where Jim Sinclair discusses his relationship with his father Seligman. He mentions his mother also, and for the curious, he confirms that his name has been James E. Sinclair since the day he was born.

    Source:
    http://www.jsmineset.com/home.asp?VAfg=1&RQ=AR,1&ARList=1&cTID=-1&cCat=&PRID=-1&cSubCat=&Full=1&Archive=&ArtSel=$1017$

    Saturday, August 16, 2003, 12:32:00 PM EST
    http://www.jsmineset.com/spacer.gif
    Margin of Risk
    http://www.jsmineset.com/spacer.gif
    Author: Jim Sinclair
    http://www.jsmineset.com/spacer.gif
    Q: Jim, you used margin when you where building your foundation.

    I am young and willing to accept risk. So Jim, what's your problem?

    A: Let me answer your question under two subheadings for simplicity's sake.

    Responsibility

    Few who write on the Web fully recognize the responsibility they have to their readers. I would also suggest that this statement applies equally to those in the print and electronic media as well. In contributing to the debate on questions of the day - whether they be economic, political, or both - you need to consider your words with attention and care, especially when someone else's livelihood is at stake.

    Training

    My father is Bertram J. Seligman. From simple observation and a study of history, I believe he was the greatest trader that ever lived. Yes, greater than Jesse Livermore who befriended Bert because of his talent.

    Bert traded like an old master painted. He used to trade 10% of the NYSE's volume and ended the day with a 500 share position. He taught me to trade from as far back as I can remember. I sat beside him in the car, in the office, and in the house.

    We failed miserably as father and son but succeeded beyond anyone's wildest imagination as partners. He was also a business man. He financed the first movies in aircraft via 'In-flight Motion Pictures, Inc.' He put the first refrigeration device in trucks via 'Thermo King Inc.'

    A partner of Smith Barney who ran its trading department had inadvertently become a controlling shareholder in a small company and called Bert when the company asked him to lower his position. Bert took on the man's entire position and control of the company and went on to promote Dr. Land's new camera. The company eventually became Polaroid and Dr. Land visited my home on several occasions.

    Bert financed a company that had invented a feminine hygiene product called Pursettes which was sold in the U.S. through the 1960's and 1980's. One of the great fortunes he made was in a metals company called Strategic Materials.

    He was also a partner in deals and trading operations with Jesse Livermore, Old man Kennedy and Arthur Cowen. He invented what is today called the NASDAQ.

    At my request, he left me totally out of any financial or material inheritance, having given me more than that: the knowledge to spot value in businesses and - more importantly - how to trade for a living.

    I was in a trading department when I was 12 years old. At 19, I was an over-the-counter market maker maintaining 35 markets. That is the training and qualification you need to handle huge margin positions.

    During the entire gold market, I never got a margin call - not because I never made a mistake but rather because I margined myself and if a call was pending I liquidated my holdings before the close of that trading day.

    I am trained to be a survivor in a battle that takes no prisoners. You may not be. I live markets day and night. I come from the lineage of Jesse Seligman and a famous banking family.

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  22. part 2..

    same as above


    Now you will love this. The Cartel of Common interest is comprised largely of Seligman firms. Yes, my ancestors founded them all except Merrill. Goldman and Lehman are my family's. Many of you made fun of me when I first told you those cartel members had met their match. Well, they have. They face the bloodline of their founder and did not know it until know.

    Read the book, 'Our Crowd,' by Stephen Birmingham and it's all there. Markets, metals and entrepreneurialism course through my entire body not just my blood. The market is my mistress but compared to the real life equivalent I thrive on the volatility associated with this one.

    I am committed totally to markets. I love risk and feel alive only when all is committed. Absolutely nothing else in the material sense interests me. Now that I have played the material game, even that no longer interests me. Money does not interest me. I have given away much more than I have. The game interests me. The game is called building companies and trading markets.

    Now I am passing my love of this business on to whoever recognizes the gift and is willing to run with it. My two youngest children have chosen to go their own routes outside the financial sphere and my eldest daughter is in my service in Africa. She is an adventurer in her own right but remains uncomfortable with the intensity I show when the bell rings which is her feminine prerogative.

    For the curious, my name has been James E. Sinclair since the day I was born. My mother was Abbey's Irish Rose.

    The Solution

    The solution for you is to trade gold and gold share options (limited loss and no margin calls) but not to write them. The solution is not to trade option spreads because nobody gets rich in spreads; they generally only launder money of scam commissions.

    They demonstrate you are mathematicians and so what? Pros don't scream at that statement. What I consider a fortune and what you consider a fortune might be two different things. Options are only for the start and finish of a move and have little application in the middle.

    For you and others like you, I will prepare a 'how to' article on options this weekend. They are not investments and apply to only a few out there. But like all members of the Community you have a piece of whatever I am able to offer. I will therefore deliver.

    For the conservative majority, it can be a learning experience for the time you wish to sell covered options on your positions. As an example, a covered option would be to sell a call on 100 NEM because you own it and want income. The risk there is only lost opportunity.

    The day will come when such a transaction is wise but that is down the road. Right now we trade and invest for opportunity.

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  23. very impressive find.....and the book "Our Crowd" and I have a history that perhaps I can talk about in more detail one day and I highly recommend you read it

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  24. Responsibility

    Few who write on the Web fully recognize the responsibility they have to their readers. I would also suggest that this statement applies equally to those in the print and electronic media as well. In contributing to the debate on questions of the day - whether they be economic, political, or both - you need to consider your words with attention and care, especially when someone else's livelihood is at stake.



    Kil is not you..
    but Jim Willie

    the hat trick letter

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  25. Jim Willie..

    The Jackass does not align with the expectation of mining stock rise. The stocks are paper wealth in a new era of paper wealth implosion, during which inflation of shares through dilution is rampant. My full expectation is for physical metal prices for Gold & Silver to rise, while mining stocks continue to fall in value from dilution and reduced metal output. The leverage is a mirage when large deposits are seized by desperate foreign governments in need of income. What on earth is complicated about understanding this point?? The leverage is a mirage when workers are the focal breakdown point for a higher cost of living. If workers cannot afford to feed their families and survive, mine output will suffer. What on earth is complicated about understanding this point?? The leverage is a mirage when rising mine operation costs must be handled, by the simple practice of share dilution. Combine with regular executive stock options, and the dilution on stock shares is huge. What on earth is complicated about understanding this point??

    http://www.silverdoctors.com/jim-willie-the-coming-isolation-of-usdollar/#more-19313

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    1. could not agree more with this as a possibility.....KEEP IT IN MIND......Red has reminded us numerous times what the casino can do to anything paper....

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  26. Still without a computer as had to order with windows7...kli, at some point would ou comment on Juan Phillips' articles declaring that there WILL be confiscation of physical? Many thanks as always, good to have you back.

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    1. hello nancy and glad to be back......I have not had any reason to change my stance on the confiscation....IT IS ALWAYS A POSSIBILITY......but remember there are a variety of assets to confiscate in "soft" methods. Taxation is a method of confiscation.....Imagine a doubling of your property taxes and the YEARLY impact this would have on your property worth and overall wealth. Imagine the number of taxes you pay such as sales tax etc increasing.....these are "confiscations" All of this has to be considered. Time is becoming short and the game is desperate. All of you need to be alert.

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  27. hey sis.....good to here from you....

    just buy it.....it does not matter...in 3 years it will be old

    kil......you need to address the new to gold/silver...or newbe,s

    in 1975/76 I was into to gold...in 1980.s I was into to bonds...15%

    today in the repo market I can not come close to 15 %



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    1. Jim Willie paragraph that sums up my "east vs west" war.. "A Paradigm Shift is taking place, and the ASEAN-China summit gave proof positive in a seminal event of the vast changes in progress. The United States just suffered its worst humiliation ever as a nation on the Eastern global stage. It was exceeded only by the humiliation for a US president personally. The story went uncovered by the lapdog inept US press. The late November Asian summit meeting held in Phnom Penh included 15 Asian nations, which represent half the world’s population. They decided to form a Regional Comprehensive Economic Partnership that excludes the United States. The Asians are pushing to isolate the United States. Regard it as punishment for hegemony, or a reaction to prevent further capital drainage, or to protect from central bank abuse, or to wall off continued bond fraud export, or to defend against military aggression. Regard it as confirmation that China is the regional leader in Asia, even for military security. Regard it as a response to banker criminality, or simply for being totally full to the brim of American corruption and arrogance and abuse of position, led by creation of the USDollar as an elaborate weapon and credit card whose balance is never to be repaid. Abuse of power and sponsored financial corruption will have extreme consequences in the reshaping of global commerce and banking. The US will be isolated, so as to protect the rest of the world from its fascist exhibitions and deep manifestations."

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  28. Sister,

    It is Julian Phillips, not Juan.

    He admits that if gold is confiscated, it will not be due to the same reason as Roosevelt in 1933. Roosevelt did it to increase the money supply. By revaluing gold from 20.67/oz to 35/oz dollars, he was able to print new paper money and thus increase the money supply. It was a form of quanitative easing. Since Nixon took us off the gold standard in 1971, new money can be printed at will.

    Phillips writes that gold may/will be confiscated to bolser "confidence",...there's that "confidence" word again.

    My rebuttal would be:
    1) Would confiscating everyone's gold actually improve confidence? It seems like an act of desperation. What would other countries think? Will those countries actually trade with the USA more because they are confiscating gold/wealth from its people? Since the USA is a consumer economy, taking wealth away makes our ability to purchase products from other countries worse.

    2) The larger quantities of gold coins/bullion are likely held by wealthy individuals. Wealthy individuals have influence with politicians. Your average "Joe Citizen" has no gold coins/bullion at all. In 1933, much of the population had some gold coins. I don't know the percentage, but I would guess today, less than 5% of US citizens have any gold coins/bullion. Many own gold jewelry, I highly doubt that they will go after that.

    3) I suspect Phillips has some financial connection with this "Stockbridge Management Alliance" that he is promoting. Thus, there may be a secondary gain issue for him to write about gold confiscation.

    But,...when in doubt,...there's silver.

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    1. VERY well written Doc....and I would underscore as you said that very few investors own physical gold....they own some paper gold but not physical...when that paradigm shift occurs it will STILL be held only by very upper income individuals and hedge funds.

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    2. Public gold confiscation has been going full steam for the past 2 decades through leasing (replaced with paper IOU buried in some obscure derivative contract on a sheet of toilet paper locked in storage shed), wars (Kuwait to Iran, guess where that gold to pay for oil is coming from?) and tungsten.

      Most countries and funds will never see 90% of their gold stored in the US and England vaults.

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    3. yup.....as you know direct theft of bullion such as MFglobal et al. then add indirect theft of bullion through taxation changes and don't forget what I believe is happening with the miners....and on and on...rough game so you have to be prepared for the lumps

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  29. many of us have known this for years and "suddenly" the MSM reports it.......hmmmmmmmmmm...why?
    http://entertainment.msn.com/videopreview/?channelindex=4&from=en-us_msnhp#/video/8da275e1-0773-4e3d-ab1d-6de8dedfc7c4

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