In the Miles Franklin Newsletter’s new format, my focus is on “big picture” commentary on the economic world; and specifically, the factors driving what are still the EARLY STAGES of an historical Precious Metal bull market. I promise I’ll drive this piece home with a poignant “punch line,” albeit through a circuitous route featuring the “nuts and bolts” analysis I have become associated with. After all, I cut my “blogosphere teeth” for more than five years on GATA’s Le Metropole Café; in the process, en route to becoming a global expert on government-orchestrated Precious Metals manipulation. In fact, I was already set to discuss the “big picture” issue serving as this article’s namesake when we were treated to today’s “Cartel special,” as described.
Anyone watching PMs as long as I know the Cartel’s top “KEY ATTACK EVENTS” are unquestionably geopolitical crises – as we are witnessing in Syria today. In other words, such events are deemed not allowed to catalyze safe haven PM buying – lest TPTB’s “reality mask” be exposed for what it is. Never mind what I wrote yesterday; i.e., there are MANY other factors contributing to the PM rally – as the fact remains that MSM commentary will focus solely on Syria to “justify” the recent gold and silver surges. Fortunately, the MSM’s grip on PROPAGANDA is rapidly loosening – per this morning’s news that CNBC’s ratings have fallen to 20-year lows, to levels last seen just before it went on air. However, the fact remains that the clueless, dumbed-down masses still look to such drivel for the “reasons” PMs are moving higher; particularly given the enigmatic trading patterns the Cartel has created over a decade of 24/7 manipulation.
For the past two days, we have seen violationsof what I long ago deemed “Cartel Rule #1”; i.e., thou shalt not allow PMs to surge whilst the Dow plunges. Moreover, yesterday was a COMEX options expiration day; and rarely in my eleven years of PM watching have prices risen into such events. Remember, the more contracts that expire in the money, the more likely buyers are to take delivery of the scant, plunging PHYSICAL inventories; per this shocking chart of “registered” COMEX gold inventory, depicting what is setting up for an imminent DEFAULT…
FYI, it is not the actual Expiration day that matters so much (yesterday), but the First Delivery day three days later (i.e., Friday). Often, the Cartel loses the “battle for expiration day” (in which only a handful of measly PAPER profits are at stake); but presses harder later in the week before in-the-money option holders pull the trigger on delivery requests; as essentially, they have this entire three-day period to decide. This is why the Cartel desperately capped gold at the ROUND NUMBER of $1,420/oz. yesterday – not to mention, shellacking the HUI by 5% to signal “raptor” traders of an impending PM attack today.
However, the Cartel’s best laid plans went awry last night; as following yesterday’s MASSIVE 3% gain, oil prices exploded higher last night; whilst the Rupee plunged an astonishing 3.5%, the Middle Eastern war drums beat louder, and expectations of Fed “tapering” rapidly shifted towards the “winds of more QE.” Thus, just ten minutes before today’s NYSE open – when prospects for a RECORD third straight violation of “Cartel Rule #1” were highest; the Cartel attacked PAPER gold and silver with such a blatant act of manipulation, even “Tyler Durden” wrote of it. Off topic, does anyone recall me attacking Zero Hedge mercilessly a year or two back for ignoring gold manipulation; which amazingly, they have not only done a 180-degree turn on; but in some ways, are starting to sound like “Andy Hoffman” himself…
With escalating Middle East tensions – as Israel now steps up with its own Syrian warning – it makes perfect sense that the precious metals are being slammed lower just before the NYSE open. No other asset-classes are exhibiting such vertical moves. Pre-open margin calls?
-Zero Hedge, August 28, 2013
Actually, Zero Hedge missed an even more momentous piece of news that emerged as the COMEX PAPER slam was occurring; as it appears the ill-fated South African gold mining union negotiations are on the verge of collapse. Given how far apart the two sides are, we may well see a major, long-term strike in one of the world’s largest gold-producing regions. You know the type of news that causes one to rapidly sell PHYSICAL metal (facetious)…
…like the $10/oz. collapse in PAPER gold in just two minutes time…
…or better yet, the whopping $0.70/oz., or 3%, silver WATERFALL DECLINE that occurred at – what do you know – EXACTLY the VERY, VERY KEY ROUND NUMBER of $25/oz. And oh yeah, notice what happened when silver first breached $25/oz. in the night’s wee hours; yep, you guessed it – a visit from its old nemesis, “THE 2:15 AM”…
Finally, to the point of this diatribe, as gold continues to fight today’s “war for $1,420/oz.”; i.e., the ENTIRE WORLD now understands what the Cartel – that is, the U.S. government – is doing!
Russian President Putin’s top economic advisor, Andrey Bykov, practically said so following GATA’s 2005 Yukon Conference. Lo and behold, he participated in GATA’s 2011 London Conference as well; and since then, the Russians have been MASSIVE gold buyers. Aside from the Russians, only the Chinese are bigger gold importers; at least officially, as most of the gold entering India today is smuggled. The Chinese have been manically acquiring gold for the past five years; but particularly since the summer of 2011 – i.e., when the expanding U.S. debt crisis came into full view. Since then, the U.S. national debt has risen by nearly $3 TRILLION (no, that is not a typo); with the official “debt ceiling” about to be raised to INFINITY, prompting interest rates to rise amidst historically weak economic activity. Not un-coincidentally, Chinese gold imports have gone parabolic…
We “shadow worlders” have long assumed the Chinese are aware of Western gold price suppression (how could they not be?); but now we finally have PROOF – via the below interview with a Chinese government official, in which he spells out the multi-decade, Federal Reserve and Bundesbank led schemes to mask the dollar’s and Euro’s “shortcomings” with secretive PAPER ploys like gold leasing. Forgive the poor English translation, and simply focus on key phraseslike “In the 1990s, we saw the introduction of the gold leasing business, to effectively combat the price of gold”; as TRUST ME, he is describing the whole, sordid affair no differently than I, Bill Murphy, or “ADMIRAL SPROTT”…
Chinese State Press on how the Fed has been Manipulating the Price of Gold for Decades
My point is simply thus. If the world’s largest gold buyers are aware of what I have been writing of for years, you can be sure they know every trick in the Cartel’s book. Such “subsidy” of their PHYSICAL purchases is the reason the East is rapidly overtaking the West in terms of economic and political power; and why, when the END GAME of dollar, Euro, pound, and Yen collapse commences, the East that will wind up owning the gold; and thus, dominating a new monetary order featuring gold-backed Yuan and Rubles. Thus, not only will the West suffer the HYPERINFLATION that accompanies currency collapse, but play serf to the Eastern feudal lords.
It is your choice if you want to be enslaved by the East – or West; and by continuing to hold dying “scrip” like dollars and Euros, you are GUARANTEEING such an outcome. Thus, I plead that you exchange them for REAL MONEY while you still can; as one day soon, the shrinking “window of opportunity” to purchase PHYSICAL gold and silver – to boot, at heavily subsidized prices – will PERMANENTLY close.
