Tuesday, April 16, 2013

PANIC AND FEAR FOR GOLD TRADERS

PANIC and FEAR....nothing like these emotions to clear the mind of a trader. Many of us have used different metrics to try and attach meaning to the recent movements in gold and silver while ignoring the macro events swirling in front of us on all the Main Stream Media outlets. Once again the same emotions of fear and panic arrive from seemingly nowhere to punctuate the psyche of a wounded populace. As the K Winter supercycle begins it final deflationary wave a fragile social structure begins to crumble. After the recent events in Boston one can rest assured that a very well crafted plan will be put in place to create a sense of government "doing something" to establish "safety" for a "public under attack".....more than likely this threat will be from "within".....or as we have been conditioned previously for....a "homegrown" terrorist. Rest assured though, after a careful analysis and the "proper balance" of control vs liberty will be established. THEN....we will be safe....for awhile.

Meanwhile back on the ranch gold and silver were licking their wounds and traders wondered if they would ever see a return on their investment. Of course those that are only in the physical market are only smiling and licking their lips wondering if their good luck can continue. Can the paper price in the rigged casino continue to pull the actual bullion prices down to lower levels before a complete disconnect occurs or the trade itself reverses for the moonshot to fiat heaven? Only our Central Bankers know for now. The real terrorism will continue in the PM trade that is for certain.

Wring your hands and hide your women and children....this game is just warming up.....war, terror, volatility, fear, panic are all part of the super cycle. Whether you recognize the game as rigged or not it doesn't matter. You have a lot more to be concerned about. We're a nation of torture now...we condone it....we institutionalize it, and we glamorize it in movies and television. You can either recognize how far our nation's moral standing has fallen and admit you are a slave now or you can speak out and accept your own responsibility for allowing our country decline into this abyss. Its a lot easier to not trade this corrupt mess right now and I hope all of you a peaceful year. If it is peaceful then be grateful. Look around the rest of the world....peaceful is not what I would describe a lot of it as. I was asked today where I thought would be a good place to bug out to. I couldn't answer. Hell is being exported everywhere.....gl

81 comments:

  1. COMEX default now within weeks

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    1. did you ask for delivery of your gold?

      seriously, are you being serious? i am not saying its impossible, but that would be quite an event.

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    2. Yes.. all the necessary preparations are almost in place......

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    3. well, i guess the positive is, we would find out what the real value or gold and silver is , with a huge chunk of the manipulation out. eek, honestly, this would be a scary event.

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    4. scary only if you don't have any physical

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    5. hehe, true, but i was thinking that could be the event where everything starts to unravel.

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    6. If the COMEX did default, I assume the paper price would collapse (be halted) in NY but on exchanges which do have the supply to fulfill the contracts, the price would presumably increase. It would be an odd thing to watch because gold and silver trade nearly 24 hours a day.

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  2. Peace between the ears is the only peace we've access to. At the lower end of the morality spectrum for now for sure.

    Hanging on to miners knowing that their day is coming (yeah, been saying that for a few years) but nothing's been/being fixed, the sweepings under the carpet are becoming mountains.

    What a ride! Glad I'm old enough to appreciate how momentous this time of history is.

    Thanks Kli for this great site and the comments. You give an important viewpoint to add to the mix.

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  3. Jay:

    Obocare ain't what it was touted to be......

    http://www.truthdig.com/report/item/truthdigger_of_the_week_anonymous_obamacare_explainer_20130209/

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  4. "Peace between the ears is the only peace we've access to"

    Amen to that, cause every thing else is insane!

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  5. even after my 2 monster buys I am under water....LOL...LOL...hehehe

    as I look over the years of buys and $ avg it all

    my cost of silver is 11.00

    that is a good price....I think it is a good price....do you all think it is a good price?

    in the 1970,s gold had a huge run up....in 75 ...76...gold went form 200 to 100....a 50% drop...in 78-79 they tried to hold gold at 400.....I do not have my notes...best I can remember..

    that is when I was told to trade gold above 400....buy and hold below 400

    I did not see 400 tell 82-83-84

    but the avg price was 400.....some years higher.....some lower for most of the 80,s and mid 1990,s

    the 10 year was out of this world..13-14-15%...this is where the gold bugs went

    something happened in 1995-96

    paladin









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  6. Kliguy,
    Do you really think comex defaults? Seems like the powers that be will just cancel contracts or just cash settle. Could be the reason for the beatdown. I had an x Goldman prop trader tell me to never underestimate the ability/willingness of the insiders to change the rule in their favor. Thats why I do't think there will be a default. Again thats for the site, its a great resource.

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    Replies
    1. Without the ability to supply bullion as the non Western Central Banks and large bullion buyers drain the bullion banks, there has to be a break. Giving the COMEX paper players an IOU cash settlement and closing it down at the BOTTOM of an artificially low price is the "best outcome".....There could be a myriad of "reasons" WHY it shuts down.....but getting MFGlobal'd is not a choice.....its a solution.... without physical the game HAS to change Direction and the Comex cannot exist WHEN it changes directions....its the CHANGE OF DIRECTION that kills the COMEX

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    2. Kli,

      If as you say the COMEX bites the dust, might be a stupid question but what will happen to availability, preimum and price or will there be any availability at all?

      Delete
  7. Well, maybe hell has frozen over. Phil Davis has always hated Gold. But he feels that it has fallen too much and suggested buying (1350'ish). He is also looking at DBC (25.50'ish).

    The Keystone Speculator feels the miners should start trading sideways and it may be worth buying some. Even Phil Davis said he is looking at the miners.

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  8. Even as Morgan Stanley joins the "sell" bandwagon, someone is buying this morning. GL everyone.

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  9. I've read many articles on "what happened" but this one is a particularly good synopsis for anyone interested: http://news.goldseek.com/GoldSeek/1366207440.php Never knew L**d B***fn worked at J. Aron as a precious metals salesman. Very, very interesting.

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  10. Buying physical going out will become VERY difficult......higher and higher premiums will become the norm and availability will decline....entering the danger zone

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  11. enormous physical buying has been triggered...should be wild the next few weeks

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  12. most of these guys like lloyd geithner etc have swiss storage accounts and guess what is in them

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  13. AAPL guiding down and market tanking

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  14. 2 things:

    A) Gainesville shipment wait time has been increased from 5-7 days to 8-10 days on many items. Silver Buffalos won't ship until May 10th at the earliest. Going to a local shop to see if I can bypass the wait.

    B) I haven't been able to find Doomsday Preppers on TV the past few weeks, so I looked into it. Not that it's an amazing show, but relatively entertaining and gives you some interesting ideas. Anyway, turns out there aren't any new episodes being aired...could be end of a season or they ran out of peeps to film. However, I figured they have to air reruns! So I checked...the next episode will be on in a week at 3:00 am lol. Maybe I'm being paranoid, but I’ve read that this was one of NatGeos highest rated shows...season premiere a few months ago supposedly had record ratings for the channel. It’s a little suspicious wouldn’t you say!?

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    1. So far Apmex on time but well see over the coming weeks..

      Stupid show, too extream and meant to belittle prepping.... JMHO

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    2. Yeah I hear ya Tom, still suspect.

      Market is tumbling, scary events are increasing in frequency, like Kli has said several times.

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  15. The miners are getting slaughtered again:

    Silver Standard Resources Inc. (SSRI)
    6.94 Down 0.29(4.01%) 12:31PM EDT - Nasdaq Real Time Price

    Hecla Mining Co. (HL)
    3.13 Down 0.12(3.55%) 12:34PM EDT - Nasdaq Real Time Price

    Golden Minerals Company (AUMN)
    1.54 Down 0.06(3.75%) 12:34PM EDT - Nasdaq Real Time Price

    McEwen Mining Inc. (MUX)
    1.85 Down 0.07(3.40%) 12:36PM EDT - Nasdaq Real Time Price

    Here's one for the old time SKF posse:

    ProShares UltraShort Financials (SKF)
    27.19 Up 1.16(4.46%) 12:36PM EDT - Nasdaq Real Time Price

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  16. http://i.imgur.com/hxZTlIC.jpg

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    1. Hmm, this doesn't fit the CBS description at all(other than the white male part)....

      The man sought as a possible suspect is a white male, wearing white baseball cap on backwards, a gray hoodie and a black jacket, according to CBS News.

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  17. joe sent this from another site
    The futures market is nothing but a tool for the dollar managers (US Government/Fed/Bullion banks) to manage/control the price of Gold. Any rational observer with an iota of brain who has watched the gold market for any reasonable length of time can tell that the price is intentionally driven down during the Comex trading hours. If you don’t believe this, either you’re in denial or worse – collusion - and IT WILL end up costing you big time. Given the massive, concentrated and long-term (the entire past decade - they haven't been net-long - not once - during that time period) nature of their short positions, it really isn’t that hard to deduce that the banks do not nearly have enough metal to cover their shorts and that the sole intention of the massive short position is to control the price. Whenever the price rises (or threatens to rise) the big bullion banks ala JP Morgan create massive naked shorts introducing fake supply of Gold in the market, thus driving the price down. “But the price has been rising for the past decade, hasn’t it? So how can you say they are driving it down?”, many people ask. Well, the constraint on the bullion banks has been the availability of the physical metal. If the metal is not available, the fraud of the paper market is exposed and they lose their price managing ability. So they allow the price rise to a level at which there are some weak hands willing to sell and then they hold it there till all the sellers have been exhausted (I am assuming the Fed has already sold all the US Gold during the past decade). So strong are Gold’s fundamentals that despite the massive rigging, all they have been able to do is slow its rise. The weak hands who sell the physical metal at every price rise have helped them in this endeavor. But soon, as the bond market implodes, they will run out of sellers. Treat the availability of real metal at today's paper price a gift and buy as much as you can.



    To those who think that the Comex shorts will be crushed one day and the price of paper Gold will do a moonshot, to them I will say that you are dreaming. The Comex shorts will be crushed, but not in their own casino! If and when a majority of paper Gold longs demand delivery a force majure (who do you think the US Government will side with?) will be declared with cash settlements and/or offers of equally worthless GLD shares (don’t tell me you didn’t know about this). By some accounts, this is already happening. What will happen to the paper price then? That’s right – it will utterly collapse even as the physical’s price is rocketing. Paper gold holders will dump it all to buy the physical – which, unfortunately – will most likely not be available at all…in light of the sum total of the recent developments mentioned in this update I think it is too risky to be trading right now and one should just sit 100% in physical Gold and some currency for day-to-day needs…Trading paper markets for paper gains is like picking up pennies in front of the steamroller. It’s time to stop trading and just buy the physical metal….

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    1. So perhaps the way to play the paper game is to short on rips knowing full well that they will not let the price run too far and eventually, when the paper price does eventually collapse, you make a killing.

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    2. the problem is when rips become tears..with so many shorting metals I imagine premium is high.

      The guy is right about the market in whole, as right now algos are playing havoc to traders...QCOR ex-divi tomorrow generated some buzz at end of day, might be a scalp trade tomorrow..

      Delete
  18. It's all Bullshit nobody really knows whats going on. JMO

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  19. I have a few questions:

    1) Have the stock/metal markets always been manipulated??

    2) If yes, has the manipulation drastically increased in the last 10 years?

    3) Is manipulation legal?

    Thanks.

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  20. I heard that premiums for large physical purchases of gold are sky high. I know at my lcs that gold eagles are selling for about 6% premium, silver eagles go for 25%, up from 10-15% several weeks ago. So does anyone really know what the premium is for say 400oz bars? Jim Willie claims the bars go for $2000/oz.

    Also I have heard claims that the GLD is being raided to get physical, and the decline in the oz held shows big outflow. But what about Sprott, can't you buy the Sprott gold fund and take delivery of 400oz bars? Should that fund also see a large ouflow if physical in in short supply , as it seems?

    Thanks

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    Replies
    1. bond: What's the point of having paper markets if the price of physical is so drastically different?

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  21. Yes Jay they have always been manipulated....and yes its worse now.......and Jay....the PTB OWN the government and justice system

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  22. The only "justice" will be nature's as you violate the Laws of Nature.....they don't own nature although they are trying too...

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  23. The price of physical is STILL tied to the paper market at least for now....yes the premiums are increasing but that will worsen. for now the "spread" is the profit for dealers and the supply of bullion and coins remains intact "somewhat"......be aware this will not continue indefinitely....spread and supply will explode/implode

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    Replies
    1. Agreed, spreads wideneing will indicated that physical market is taking over pricing. Thats why I asked about premiums on large purchases. How far along are we? Also if that is the case then isn't something like CEF trading at a discount a bargin as they own physical without the trouble of storing metal?

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  24. http://blogdogcicle.blogspot.com/2013/04/navy-seals-spotted-at-boston-marathon.html

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  25. MUST READ from Norcini..one of the best posts from him....

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/17_If_This_Continues_The_Currencies_Will_Literally_Collapse.html

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  26. http://news.goldseek.com/ClifDroke/1366214860.php

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  27. Breaking news: Boston federal court, hospital evacuated, Boston Globe reports

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  28. http://blogdogcicle.blogspot.com/2013/04/apocalypse-conspiracy-2013-illuminati.html

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  29. the race to zero continues with the miners. I wonder who is going to win. SSRI, svm, ego , auq, RIC, ppp, KGC, HL , GPL , MUX ect..... GPL would be my pick,, but it had a nice volume spike end of day, so maybe it isn't dead yet. best of luck everyone.

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  30. what can this possibly mean????

    http://www.brotherjohnf.com/archives/157493

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  31. I'd like to get some clarification on a couple of questions, if anyone can answer that would be great.

    1. First, we have been discussing the decoupling of the price of gold (paper vs physical). As the prices continue to fall, the theory is that it'll dry up the physical market, and if you're lucky enough to find anything, you'll be forced to pay a hefty premium. But what happens on the way up? In other words, if the price decouples, then what is the right price? Who will decide if gold is worth $3K an ounce, and will you be able to sell your gold at that price to your local dealer?

    2. Second, to follow up on the first, is how to benefit from this, in other words, how to exhange your gold when the time comes? If you have been buying for years and have 50 ounces, and now gold is trading at $3K an ounce, do you take 10 of your coins, walk to the dealer, and walk away for $30K and then use that to buy something else? Won't the IRS wonder where that money came from? How do you reconcile all this?

    I'm asking these, because I see an opportunity to finally get into bullion (still waiting for lower prices), but I want to make sure I can trade that gold a few years down the line for something else when the time comes. Hope this all makes sense.

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  32. whoa, looks like gold may have caught a bid, crazy action.

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  33. We are in bad shape here people. The markets are getting to a point where we may see a big drop. Look at Asia tonight gold down 30.00 oil down silver and stocks. The Fed's have to act NOW or they are going to lose ground they have gained over the last few years. Think of how much this is going to cost.
    Do they have it to print? I guess they can but the drugs are wearing off faster and faster. Watch out we are in the danger area here I think. Hope I'm wrong. Get everything you think you are going to need.
    Matt

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  34. Kli- Re the Brother John article, can you post the name as my browser won't pull the exact one from his blog. TY. Just remember there is a "collectible" tax rate for gold @28%...I am under the impression even if you owe no other income/cap gain/divi taxes.

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  35. And fwiw, Martin Armstrong saying the Euro wkly. must close @131.33 or greater to stabilize, if Fri's close is less than 130.2, there's more down.

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  36. What do you think of this Gary Dorsch article predicting that fracking and abundant energy in the U.S. will continue to enable the Dow & Transport Index to significantly outperform the metals. http://news.goldseek.com/GoldSeek/1366210800.php

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    Replies
    1. Sister, production has peaked and if oil gets to low...it will drop dramatically

      see here
      http://www.theoildrum.com/node/9506

      Delete
  37. A bit OT sorry...

    I came up form the bunker and am disturbed.

    Just saying...

    Attack #1. In Boston on tax day.
    Attack #2. AMR hacked and grounded.
    Attack #3. Ricin
    Attack #4. Waco.

    This is serious. Suggests sophitication. The bombs in Boston low tech in design set off by cell phone...You try and do that...Cut the legs off folks...by design. American Airlines Grounded? Computer glitch? Not.Hacked. maybe..too worried to fly more likely. Ricin I have no idea as to symbolism. Waco burning pretty self explanatory.

    Back to the bunker.

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    Replies
    1. They will not spin the Waco as a attack. Scare way too many sheep. Was it? who knows we will never.
      Matt

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  38. Before I ascend to the murky depths of the bunker...

    Forgot to add there was an attack on the grid in Cali yesteday focused on Silicon Valley..Bullets took out a power station and took it out..Monday.

    So either a lot of random or some coordination.

    From a market standpoint I remain short AA long vix and like having some PM. Also have seeds and knowledege how to grow stuff in all seasons.

    Thanks Kli for this forum. Thanks to those that post here.

    sheeps out.

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  39. Well seems all our PC and Goodwill crap has helped now hasn't it.... Guess all the molesting done by the TSA and the DHS has not had its intended results, seems things are the same as they ever were!

    http://www.nypost.com/p/news/national/feds_have_men_in_sights_j43UJwXZncr0wmysU42scJ

    Coincidence?

    http://ca.news.yahoo.com/obama-meets-saudi-foreign-minister-discusses-syria-223009934.html

    http://www.infowars.com/obama-covering-up-saudi-link-to-boston-bombing/

    Same as it ever was......


    btw: Its comforting to know re: Joe's post that I've been on the right track!!!!


    However I'm stepping up and adding a few things over the next couple O weeks as the spool of twine is unraveling faster that I though it would!

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  40. Duke University was in lockdown on Tues. as well...not reported at all, I know people who's children are students & one who works at the hospital. This just all seems a bit too coincidental. Chemical plants an easy target. Buy some water folks.

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  41. oops whose, watching the Waco situation while typing. Large part of town evacuated...treating as complete accident. Hmmm.

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  42. Question: If, IF QE has been about recapitalizing the banks and that has been successful, will the Fed indeed pull back on its buys (printing)? This would certainly be deflationary in the short term.

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  43. Just made a small silver purchase from Gainesville Coin. Won't ship till May 10th. I added on 50 1oz. Copper coins. I know they aren't worth nearly the $1.02 I paid for them, but the look soooo nice I couldn't resist!

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  44. Sister, the FED QE has been a total failure. The velocity of money has gone down each time the FED has put on a QE. What does that mean - it means that more dollars are required to do the same work.

    Add to that the increase in automation and robots and more is being done wit fewer workers. We have fewer people in the work force (% of people in work force similar to 1979 Carter era), but production (GDP) now exceeds 2007-8. Fewer paychecks means less demand and deflation. So printing more $s to support less demand (fewer pay checks) creates lower velocity and leads to deflation.

    FED and government intervention obstructs clearance of the system and will result in a worse situation in the long run.

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    Replies
    1. Amen Inlet. I've been saying this since '08.

      Sure it'll be a tough pill to swallow. But I'd rather have a little pain now than a LOT of pain later.

      Delete
    2. BTW, if you ever get the chance, read Bernankes book "Essays of the Great Depression".

      He's absolutely convinced that the Fed ended the Great Depression. He has this absurd notion that decreasing wages creates jobs.

      The scary thing is.... many people want Ben to print even more.

      Delete
  45. Why Buffett thinks investing in gold is stupid...

    http://www.marketwatch.com/story/why-buffet-thinks-investing-in-gold-is-stupid-2013-04-18?siteid=yhoof2


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  46. Jay,

    There is no arguing that Buffett has done well. I have favored the dividend paying stocks myself.
    The question we have to answer here is whether this time is different. If we are truly near the end of a 120 year Supercycle AND it is global, then there is no one alive today that has ever experienced such an event--even Buffett. So, maybe some Gold is fine--and how would you know whether Buffett has any or not. It is my understanding that physical Gold holdings do not need to be reported. Buffett didn't get to where he is now by being "Mr. Nice Guy".

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  47. Jay, just a simple country boy who did some computer work in factory automation some years ago and have had an interest in the progress of said automation since then. Progress has been slower than I thought it would be, but it has progressed and seems to have taken a leap forward since 2007-8 as companies figured out ways to increase production by tuning automation so that cut backs in staff became permanent.

    Being a simple country boy I don't see how printing more money that sits on the FED balance sheet helps the economy. I am sure any paper by Ben is way above my level of economic education (Only had a couple of graduate courses in economics. LOL).

    ReplyDelete
    Replies
    1. Simple Country Boy ? Sure you are hehehe. I'll take a Simple Country Boy and Common Sense over a City Slicker and all Glittz that goes with um any day of the Week! No offence Rudy hehehehe

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    2. None taken! I haven't always been a glitzzy city slicker, I was born and raised in the swamps of Louisiana! It was pretty country!

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    3. Hehehehehe...... You left all that for this? If it wasn't for the Boss I be in Tennessee right now doing BBQ!

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  48. http://market-ticker.org/akcs-www?post=219909

    Nice an admission after the fact......

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  49. Stepped out of my bunker for a few days and had the opportunity to meet Matt...very nice visit....back on the puter and will have new post up tonite.......don't forget that Bernanke IS NOT trying to "fix" our economy or ANY economy. He takes ORDERS.....and he ONLY works for "those" bankers that give him his orders....and "they" are NOT named Dimond or Blankfein......so careful when trying to "divine" what Bernanke will do for the economy.....His job may very well entail destroying this economy..

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    Replies
    1. Keep it simple....Ben is NOT the decider just as GW was NOT the decider...as much as he would like you to believe

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  50. EVERYONE please understand the game that is going on right now and just how incredible this casino is

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/18_Rule_-_More_Evidence_Of_A_Massive_Run_On_Physical_Gold.html

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    1. "The guy in front of me bought over $1 million in gold. He paid in cash and walked out of the door with the (gold) bullion in a nike bag. Amazing."

      About 60 pounds. Hopefully your Argentine friend is taking notes on how to buy physical versus playing with ETFs.

      Delete
  51. Kli, gotcha - us country boys know BS when we see it. Stepped in it a few times growing up. LOL

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    Replies
    1. buy when there's blood boyz.......THEY ARE...still got a stash for more bullion

      Delete
  52. If WB thinks gold is stupid, that's good enough for me. ;D

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