Thursday, April 18, 2013

HARD TARGET

Paper muppet 700 yards
Paper muppets remain under the gun as the puppetmasters continue to pull the trigger on the paper price of bullion and the miners. Just as the 46% gold correction in 78 devastated the traders in gold, today's correction has also managed to chase out the leveraged paper traders. The difference today is there is a much greater divergence in paper trades than in the 70s with the paper masters providing an enormous array AND quantity of paper products to divert fiat from the actual bullion. Whereas in the 70s the paper diversion was the COMEX and the miners, today we have hundreds of billions in the various ETFs and ETNs  pretending to be backed by actual bullion but most will not even allow the simplest of audits. What is even more perplexing are the number of big investors that use these vehicles as pseudo gold and silver investments. One would think that someone with their resources would not be involved with such a dangerous trade. Nothing to see here now move along.

Nothing to indicate a bottom is in and further pain is probably ahead but this is indeed a treacherous time and as I have stated previously the bottom will only be identified well after its established and you WON'T be on the up bus unless you get on a stop or two early.

Next on the agenda are the reports of silver and gold shortages developing. I can report that my LCS had only a little over five thousand dollars in bullion inventory left. The only gold they had was one 10oz bar. Some odd silver coins and some junk. He stated that he was unable to get any silver from his usual suppliers and they didn't give him a delay time. He was worried and had never seen anything like it. 

Don't expect relief and if you have fiat left for bullion you may very well get a much lower spot price ahead but you won't be able to obtain bullion anywhere near the price. gl





69 comments:

  1. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/18_Farage_-_New_Government_Confiscation_%26_Gold_Turbulence.html

    “What these guys did was to decide that the next phase of dealing with the bailouts of the failed eurozone countries is to resort to behaving like common criminals. That was exactly the phrase that I used, and that’s what caused the looks of consternation and shock. But that’s what they did, and they also violated the rule of law.


    ... I know something for certain, a precedent has now been set, and when the Spanish banks face their nadir, and it’s coming make no doubt about it, they’ve found the solution to how they are going to fund it. They are going to steal money from big bank accounts, and possibly even from small bank accounts.


    There is now a new German proposal on the table which says they will even confiscate a percentage of the value of your house. We have not seen this sort of thing going on in Western Europe since the 1930s and 1940s when the Nazi regime did this to people they hated.

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    So any opportunity to see the gold price lower is a good thing from their perspective. The (gold) market is going to find a base somewhere. I don’t know where it is. Once those moving averages break down, markets tend to have a bit of a life of their own.


    But I was saying to a friend of mine, if we do get forced liquidation (of physical gold) from European central banks (such as Cyprus and Italy), it will represent one of the greatest historic buying opportunities of anything you will ever see in your lifetime because the fundamentals have not changed.”





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    1. yup.....question is......will you be able to lay your hands on gold at anywhere near the price

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    2. I don't know and I aint waiting to find out....... How bout the thought of digging into equity of real estate Fkn animals!

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  2. I think my question in the previous post got lost in the shuffle, so here I go again, would appreciate any insight:

    Those who invest in physical bullion do so as a form of insurance, store of wealth, with the intention of preserving that wealth. This is due to the fact that there's little faith in FIAT currencies, with history and math being the guide. However, there will come a time when you will get to collect on that insurance.

    Suppose that 3 or 5 years from now, the dollar has collapsed, along with all the other major currencies, and we have a new currency, global or not. So, FIAT is not going away, but this new currency will be backed in part or full by gold. People will get to exhange their existing paper with the new one. Those holding mostly worthless USD are pretty much wiped out. If you have $100K in your savings account, it's now worth 1000 units of the new currency.

    Those smart enough to have bought gold can exchange theirs for much higher than a 1:100 ratio than Joe Schmo. Kli can exchane his 100 ounces of gold for 100,000 units of the new currency, for instance, and then use the proceeds to invest in other assets. All of this assumes you'll be free to do this, without any sort of penalties or confiscation by the government. Basically, the gold you bought has gotten you to the other side, and unlike 95% of the population, you have not lost your life savings.

    Do I have this correct? Are those borderline accurate assumptions? Anything else to know and be aware of? Apologies if these are noob type questions, because when it comes to gold bullion, I'm more or less a noob, and would like to learn as much as possible.

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    1. Correct.....gold is a store of value NOT an investment......miners are an investment....YOU DO have other options with your gold if you wish.....you can trade out well before the top if there are assets that get hit in the deflation cycle years of 2014-2015 such as two gold coins for a 69 Chevelle SS........or 20 coins for a nice rental house.....I do not mean a direct buy but you will have to go to fiat first for the transaction ESPECIALLY in the rental house case.....I am NOT an accountant but I believe you need to be aware there is a tax that will need to be paid so keep all records of your gold buys......I do not plan on selling my gold but I do have records for the tax man. I am a stickler for that.

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    2. don't forget gold is transportable as a major store of wealth.....ie....it can provide you an avenue to safety...in many ways...Munger did a disservice to the role gold played in gaining the freedom from Hitler's Germany for many Jews that used it to cross the borders and buy there way out through various means to safety. Gold can also be gifted to children and grandchildren as estate planning as long as you know the amount and consult your accountant first. Gold simply is real money without the same counterparty risks of most fiat paper. I know very few people planning to sell their gold.

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  3. It seems stupid to ask this after all these years, but do you see silver as a store of value as well?

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    1. Silver is a wild card and could actually outperform gold by a wide margin.....possible...and yes its money

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  4. Bud - Gold bullion is subject to a 28% federal "collectibles" tax. Also, some recommend rare coins which were exempted from confiscation in the 30s. I got lots of info from reading Peter Schiff's book but that was almost 6 yrs. ago.

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  5. Thx. I have lots of silver...and of course the paper cef, pslv (poor performer) plus the miners.

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  6. Gold trying so hard to get to 1400 tonight. Of course they could do this, then proceed with the smashing.

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  7. Thanks for the answers, I'm glad I've understood most of this accurately.

    I guess one viable strategy would be to have a core that you'd never sell (unforeseen circumstances notwithstanding), and anything above that is your "play" gold, whether you buy low/sell high or trade it for other assets. Got lots of reading and number crunching to do over the weekend. Meanwhile, I hope they take it lower as it would be nice to have a chance and pick up physical cheaper (if you can still find it).

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  8. Kli
    In driving the spot price of gold and silver down the banks must have known that bullion would be bought up and supply would become tight. So I guess my question is does limited supply of gold/silver function in some sort of positive way for the banks?

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    1. I must say I never looked at it that way Tom......my inclination is to look at what the large sovereign buyers are doing and they are lined up at the LBMA and they are buying by the tonnage... Also even though LCS are out of product the retail buyers still can make orders and wait for delivery......Gainesville still can deliver bullion coins in silver just delayed and the premium is higher

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  9. Found this on the Phil's Stock World site:

    http://www.thedailybell.com/29000/Hugo-Salinas-Price-4-12-PSYOPS

    I am hoping for a quiet day today so I can sneak out to the coin store. It would be nice if gold falls too.

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  10. Boston scene is surreal. War zone in Boston; people terrorized twice.

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    1. police state keeping us safe......

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    2. Yup..... Sure is ain't it! Sadly Thing 1 & Thing 2 look nothing like the folks the TSA molest on a daily basis, hmmmmm

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    3. Don't you feel safer?

      http://l.yimg.com/bt/api/res/1.2/ZM1AkuJ6FbM1gAUXvDTVyw--/YXBwaWQ9eW5ld3M7Zmk9aW5zZXQ7aD0zNDI7cT04NTt3PTUxMg--/http://media.zenfs.com/en_us/News/ap_webfeeds/03038f242a8e7b0d2f0f6a70670021e6.jpg

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    4. Just itchin' to pull the trigger on a "perp"......

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    5. Guess that is all right as long as the gun is registered.

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  11. You are so right Tom, last 2 times I flew got a patdown, lol. Little ole Caucasian lady. I do know the people of Boston would need food & supplies right now. Also saying UMass is on lockdown now. Not reported, but Duke U. was on lockdown here on Mon.

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  12. Dead men tell no lies......its not essential they are killed but it will make things easier for the narrative.......look for a big roll out over the next few weeks of more urban check points

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    1. Indeed..... Check out G Beck he has some interesting stuff that's not being told and I'm certain AJ has the same but as for the narrative they are going to have trouble but I'm sure it will get played we are so stupid.... As for check points try taking Public Transport in NYC its started in earnest!

      You know timing is everything........

      http://www.zerohedge.com/news/2013-04-18/what-exactly-did-obama-say-wall-streets-ceos-last-thursday

      Guess I'm getting skeptical iny old age......




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  13. You guys are lucky, you're all nearing retirement. I'm only 41 and get to watch the police state come to complete fruition.

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  14. My son got in huge shouting match with his "friends" last night as to what is really going on...they entirely buy msm as do most of my now sometime friends. Head of Mass. State Police up next...well over 60% of area they are covering. Controlled explosion over in Cambridge & will continue with new leads in the last few minutes.

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  15. Not sure when I can retire, but I'm glad about two things. I don't live in Boston and I don't have black hair. Hopefully they will catch the guy soon. There must be some look alikes there that are freaking out.

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  16. Al least you have hair. I did have black hair. The key is DID. I have decided to shut down my companies 401K and most everyone is cashing out. I havn't decided yet. They whole Cyprus thing and Obama's budget has me leaning towards taking it out and taking the big old hit.

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  17. Well I ain't retiring what ever that is nowadays, I know of too many that got there only to meet there maker within a year or so..... Keep busy living or well you get, it besides somehow I have this nagging feeling life is about to get harder for all of us.....

    btw: dropped fourty lbs since Sandy and am only 8 lbs from my graduation weight! Still need some work to get the energy and the tone back but its getting there!

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    1. Damn tom you are preparing.....I am up to 1hr/day on bike and can still drop some wt.....unfortunately for many Americans we've been fattened up for the slaughter and the next weight loss will be involuntarily....for many of us it will be about 10lbs in one second.

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    2. The triple bypass congestive heart failure diet works - but I suggest you try a different weight loss program. LOL

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    3. Hey not for nutting but Sandy scared the snot out of me and I thought I was prepared but physically not so much! Look at it this way what good r u to friends and family if the stress of the situation gives you a frigging heart attack! Did the NEW Atkins diet again I stress the NEW Atkins it works..... Plus not eating a pound o pasta at one sitting helps!

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  18. I had that same nagging feeling for several years now. I need to lose 30 lbs and I am workig on it. My gold and silver buy will be here next week and am looing forward in seeing what it looks like. Bought some scrap silver and some of APMEX's 1/2 oz rounds for the first time. I have even kicked around getting some industrial silver for making items, I find silver craft interesting.
    Also, I knew when those two were found they were dead. You can create a good story without anyone alive to contradict it.

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  19. Chinese Gold Exchange Sold Out - Begins Importing From Switzerland


    http://www.zerohedge.com/news/2013-04-19/chinese-gold-exchange-sold-out-begins-importing-switzerland

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  20. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/19_Sinclair_-_The_US_Will_Be_Cyprused_%26_We_Will_See_$50,000_Gold.html

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  21. KWN...Eric King: “As they are doing this kind of smash, it’s not having the impact that they anticipated, which is, ‘Hey, we will discourage buying. We will get people to walk away from (buying) physical.’ It seems to have blown up in their faces last time (2008), and the same thing is happening this time.”

    Kaye: “I think that’s right. There is a real risk that they lose control of this process. So it could get very, very interesting. The timing here is extremely suspicious. Again, we can speculate as to what these guys are worried about, but they are definitely worried about something, and they are desperate.”

    Eric King: “Bill, when you say lose control of this process, can you elaborate on that?”

    Kaye: “Lose control of their ability to engage in price suppression and therefore send false market signals that distort reality to their benefit. By that I mean they (Western central planners) want the financial community, and they want the public and the world to believe the global system of fiat currencies is sound, it’s stable.

    That there is no reason to worry about currency debasement. There is no need to worry about competitive currency devaluation. There is no need to worry about the prospects of future inflation. They need people to believe that because if people cease to believe that, then all hell breaks loose.”

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  22. NEVER EVER NEVER give up......no matter how bad they drag this mess down.....no matter how much fear they create......no matter how dark it gets ......these bastards will face their justice too and there are people out there that give a shit and there WILL be a pendulum that eventually swings back to justice......use your voice to make people aware..........

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    1. Oh just get a Boston Creme Donut,

      http://www.boston.com/businessupdates/2013/04/19/cops-request-dunkin-donuts-stays-open/a981LXWXrfuZAAgnIM1YjL/story.html

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    2. Heheeeee! Can't make this stuff up!

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  23. Don't know what you guys think of Professor Fekete but he is one of the first I read on the subject of Austrian economics. Here's his latest which I would love for you to comment on: http://feketeresearch.com/upload/Who-said-the-hydra-would-take-it-lying-down-Prof-A-E-Fekete.pdf Permanent backwardation will bring 'em down and we seem to be close if not already there.

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  24. Hate to disagree with Jim Sinclair, but I don't think gold will be $50,000/oz. because it will be Priceless in a chaotic world.

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  25. The Secret World Of Gold (Documentary)

    http://news.goldseek.com/GoldSeek/1366397576.php

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  26. Enjoy this site...it won't be up much longer

    http://blogdogcicle.blogspot.com/2013/04/while-we-were-watching-boston-cispa-hr.html

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    1. This comment has been removed by the author.

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  27. Jay,

    Look at who voted for this trash and if that don't tell you what you need to know about our one party, oop's I meant to say two party system what they think about "Whats Left" of the Constitution nothing will......

    jfyi: Cispa still need to go through the Senate or rather hopefully not......


    On a more embarrassing topic.....

    Boy Genius is at it again!

    I personally think this guy has some mental issues.....

    http://politicker.com/2013/04/governor-cuomo-says-boston-bombing-part-of-new-normal/

    He has to be off his MED's..... you know they take your guns from you here in the once Great State of NY, if you have dabbled in psychotropic drugs, you know Boy Genius's "New Normal", however in the three cases where they tried, that I am aware of, they Fk'ed up royally and by the time the lawsuits are settled the good taxpaying folks of NY will be coughing up some serious coin due to their Fkn incompetence!

    Hmmmm, I wonder if they are gonna go for his?

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  28. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/19_Refiners_Cant_Keep_Up_With_Massive_Global_Gold_Demand.html

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  29. http://www.businessinsider.com/jim-rickards-explains-paper-versus-physical-gold-2013-4

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  30. http://silverdoctors.com/gold-silver-cot-report-bottom-not-in-yet-commercials-add-23-million-oz-to-silver-shorts/

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  31. http://blogdogcicle.blogspot.com/2013/04/is-anybody-listening-us-intel-chief.html

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  32. Hello everyone'

    Once again, I listened to the Financial Sense Radio show and here are my notes about what was said about Gold & Silver. Jim Puplava was the main commentator.

    1) Gold is likely at the bottom and will consolidate. Possibly one more wave lower, but he bought physical gold this week.

    2) Wall Street made a huge incorrect bet on Gold (they were short) and thus all sorts of negative articles came out over the last couple months about selling Gold, trying to get retail to panic out of Gold. Wall Street wanted the price to move down and they do this by selling paper.

    3) This entire move down (selling) in the Gold price was due to paper. Very few, if any, are selling their physical metal. In one day, 80% of all the gold mined throughout all the world for an entire year was traded. Obviously, this can only be done with paper contracts.

    4) The FED this year will expand their balance sheet by 35% (another 1 trillion dollars) and Japan will expand their balance sheet by 40% this year. Thus trillions of new dollars coming in and this is good for Gold.

    5) The economy has hit a soft patch and thus there will be talk over the next month or so about deflation. The reason for this is because taxes are going up by 1 trillion dollars (cited the payroll tax & Obamacare-type taxes). If your taxes go up, there is less money for the economy.

    6) Since there is concern about deflation, the FED cannot exit QE. Any talk about exiting QE by the various FED governors is just talk to spook the markets in the direction they want. They might actually have to accelerate QE if the economy gets too weak.

    7) Don't store your Gold at a Bullion Bank (ARN Amro was mentioned and also MF Global).

    8) There has been record buying of the Physical Metals (Began with the Cyprus event).

    9) Buying PM's now is fine, but Gold Stocks are a better bargain (Newmont Mining was mentioned again). "Late-stage Juniors" are OK, but expect higher volatility.

    10) Then a bullion dealer spoke about the record buying. Out of Silver Eagles for 6-8 weeks, and who knows what the price might be when they become available. Very few people came in to sell their physical.

    11) The bullion dealer described what has happened as "a gift". She mentioned price could move lower, but then there could be problems with availability.

    Those are my notes. So, pretty much in agreement with what we feel is going on here.

    Some non-metal comments were that Financial Sense still feels that after this market correction, the markets will still move much higher. They again mentioned that the banks will eventually start extending credit to people, and as that money enters the system, the markets (and Gold) will move higer.

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  33. A bit OT..

    Just wondering if anybody had cellphone issues this week. My home internet was whacky too.

    Occasionaly I work on emergency generators kinda on an as need basis. This week had me in San Diego at a military facility where my cell phone stopped working... I think because of what I read on the internet (zero hedge and such) I get jammed at crisis times.

    Maybe coincidence. Tis a new phone HTC-1.

    Just saying.

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    1. thats what you get for the new tech.....now they know where your bunker is.......;-)

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  34. sheeps.

    I will move the the bunker..

    I have most of my Accounts under 100K

    if you all thing 250K will save you ......you are bran dead

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  35. Again, fwiw, here's M.Armstrong: http://armstrongeconomics.com/2013/04/ I am posting this hoping that he is wrong but I do agree with him that Jim Sinclair is starting to look/sound shillish. No way gold will be $50, 000 oz. but what I believe is that it will be unavailable. Esp. if they take it to his 907 (futures)...this is only if 1158 is breached. No one commented on Fekete. I think commods are so far telling us DEFLATION. Been saving some cash for house repairs at the deflationary cycle. I don't see food/necessities dropping yet tho.

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    1. food/necessities will not be dropping....gold can easily hit 50K......but that would be in a hyperinflationary situation and NO ONE would be selling the physical until the "reset" with a new currency.....Sinclair is taking a beating for his calls and anyone making shorter term predictions in this market has had their teeth handed to them Red and Joe excluded....longer term I'll still stick with Sinclair....Something that is necessary is for the massive gold reserves to pay off the debt so the price will need to be much higher for the Central Banks to balance their books......This game has a LOOOONG way to to so sit back and enjoy the ride.

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  36. I hope this sumbitch is right:)

    "We elected Weekly Bearish Reversals in both metals with gold closing at 1397.2 and 2304.1. Gold closed also just below the Weekly Break line 1398.6. This is warning that the FAILURE to exceed Friday’s 4/19 high intraday, and a penetration of 1310, we are looking at a drop to 1158. Breach that, and we very well may see 907 in 2 weeks,

    The gold promoters instead of $30,000 and now out in force desperately trying to suck people in claiming the new target is now $50,000. This is insane. This type of break could be monumental. We now must watch for new lows next week will point to a collapse into the follow week.

    This is just amazing." JD

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  37. If it drops to $907, that will really cause some gear stripping in the ole "transmission", LOL. jd.

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    1. hehehe......got some nice fiat coming in a week so LETS GET READY TO RUUMMMBLE

      My disbelief is only exceeded by my greed if they do crash it there.......but I'll bet the physical markets are so dislocated froom the spot price that it should be wild

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    2. Chit still waiting on red tape bs but should be cleared up in a week or two, than I'll have a gooood amt of fiat.... can't go fast enough! Save me some Kli..... hehehe

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  38. Yep, first time in 5 years I actually have a little cash at the right time - biggest fear is nothing will be available anywhere close to "spot", LMAO.

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  39. when I saw Jim say that Free gold people might be right


    what is your thinking of freegold?

    I ask all of this.

    paladin

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    1. Whatever ultimate role gold plays it will remain a store of value......even if they have "gold standard" they will easily co-opt and fractionalize it......so just realize that gold will have long term value and protect you from whatever they through at you long term.....it will have ups and down......but until they reset the entire system you had better have some

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  40. ...yep the bunker is no too hard to find. Juat so that you know the bunker is a booty trap. I am thinking about a reality show: Pimp my Bunker....just saying.

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  41. http://www.zerohedge.com/news/2013-04-20/10-signs-paper-gold-crash-unleashed-unprecedented-demand-physical-gold-and-silver?page=5

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  42. http://sherriequestioningall.blogspot.com/2013/04/jim-willie-golden-jackass-information.html

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  43. http://www.infowars.com/ny-times-fbi-staged-terror-attacks/

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  44. Tom.

    http://www.washingtonsblog.com/2013/04/the-black-and-tan-men-at-the-boston-marathon-were-national-guard-civil-support-teams.html

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  45. "Gold was the ultimate guarantee of national survival" from the Secret World of Gold...seems like to me it still is. Trader Dan has good analysis of the open interest on his website. Also, it appears that gold was taken down about 50% in the '76-'77 timeframe before the huge runup in '79. Hmmm.

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