NEWS MARCH 2013 (public)
GOLD MEASURES WHAT A CURRENCY IS WORTH AND THOSE TRUSTING GOVERNMENT WILL BE THE LOOSERS
Tuesday April 2, 2013 - under construction - Cyprus is immoral & legal theft of the weakest!
No more Eastern Eggs: From now on customers of an European bank can wake up to find that part of their savings
has disappeared overnight - We warned you and it may not be too late to act it you DO IT NOW!
Subscribers are kindly invited to send us an email if they need assistance*.
|The 17 member states of the Eurogroup took the unthinkable step. And they will do it again: all citizens of the European Union must realise they are the target of a financial policy determined to rob them of the fruits of their labours on the pretext of balancing the books. Local puppets in Rome, Athens and Nicosia appear resigned to carrying out orders from Brussels, Frankfurt or Berlin with the reward of public rejection (Serge Halimi).|
SECURITY is way more important than chasing PROFITS: today more than ever, you must keep savings with Banks which don't engage in Fractional Reserve Banking. You must keep your Savings in STOCKS and PHYSICAL Gold. NOT in Saving accounts, bank deposits, Treasuries/Bonds, Life insurances, Pension Funds, Structured products (incl. Tak. 21, Tak. 23), other bank manufactured products....Send us an email if you have doubts about the safety of certain investment instruments you are invested in*.
According to a study Belgium is #3 on the Top Eleven for a Deposit Haircut. Slovenia comes next and Germany comes before France, Italy and Ireland.
What is happening in Cyprus - and no doubt it will happen in other countries - is a Direct Consequense of Franctional Reserve Banking. Bank deposits, saving accounts and Bonds/Treasuries are affected. Money is created out of thin air by an interaction of the Banks and the Government which issues Treasuries in return for the Euro's.
Also see the difference between a DEPOSIT contract and a LOAN contract: In case of a Deposit contract, as funds are deposited within the banking system the depositor entrusts the bank to guard the funds and to return these to the depositor at any moment he should ask for it. The fundamental purpose of this contract is...click here for more
Happy Eastern !
Friday March 29, 2013 - Financial markets are closed today and next update will be tuesday !
This story will see a bad ending:
A lot has been published about DEPOSITS in Cyprus...NOTHING however was said about what happened to Stocks...!
Thursday March 28, 2013 - Hollande and Rajoy call Cyprus a BRILLIANT TEMPLATE and we do have capital controls in Cyprus!
We have entered a DRAMATIC VICIOUS DOWNWARD SPIRAL! - are you prepared for the last act??
|Legal Theft, LOOTING: They will freeze ALL banks Accounts, Saving accounts, Pension funds, Life insurances, take whatever they decide to take and leave the crumbles behind! They have done it before (Templar's' , Gutt after WW II,...) and they will do it again SOON! The legal looting will result in a SEVERE and DEEP DEPRESSION and end with a REVOLUTION or a WAR.|
Countries which will be worst affected will be those countries with the best social provisions. (France, Belgium, The Netherlands, )....Immobility will become a handicap. Real Estate will be a handicap, mobility, versatility and flexibility will be a plus. The total capitalization of the Gold and Silver sector is EXTREMELY SMALL. Therefore as soon as 5% to 10% start using bank deposits and saving accounts to buy Gold and Silver bullion and shares, the impact will be DRAMATIC and the opposite will happen of what we have experienced over the last 20 months.
Time to realize this is the 21st century and not the Middle-Ages. Storing food and energy commodities is like building the Maginot line. Either the enemy will travel around it or your neighbor will -with the help of the police - confiscate your provisions. Having said this, storing food commodities is only possible for a limited amount of time. During the Middle-Ages people only had to travel to another Town to be in peace. Today you may have to travel to another continent. Especially those countries with the SMALLEST SOCIAL SYSTEM, the most ENERGY and COMMODITIES (food stocks) will prosper most. Having said this, don't emigrate to countries with dramatically different traditions.
Wednesday March 27, 2013 - Is Slovenia next ?? - When the next episode about Cyprus !?? - What about Italy, Spain, Belgium??
Uppdated sections: The markets are carefully balanced near potentially major pivot points, don't expect a lot of action until after Eastern/Passover.
After Cyprus...Slovenia???...after Slovenia, Italy??? (Reuters) - Slovenian Infrastructure Minister Igor Maher resigned on Monday only five days after taking office in the new cabinet, adding to the problems of a new government striving to avoid a banking collapse to mirror that in Cyprus. The small eastern European country has been fighting for months to avoid becoming the latest euro zone member to seek a formal international bailout. Bad loans issued by its banks total 7 billion euros ($9.10 billion) or a fifth of national economic output and the cost of ensuring its government debt has risen by a quarter in the past week...more
|Last week, when all banks in Cyprus were closed, the London branches remained open and the money was freely transferred to other bank accounts...away from Cyprus. (reuters)|
We are moving towards a cashless society where government will totally control us, even our bank accounts. The fear that the crisis in Cyprus will rapidly spread throughout Europe is growing by the day. In Germany parliament wants to be able stop any potential bank run and a new law requires telecom providers to make the PIN and PUK codes of their customers available to the government. Police and Custom officers can under this new law have direct access to the bank accounts of German citizens, even if there is no immediate reason to do so. [all for your safety!!]
It is done through a special electronic interface which allows he authorities to have direct access to all national bank accounts. No doubt these measures can and will be extended to the EU-zone if necessary. The real danger is the electronic interface. Once it is installed, a simple amendment of the law will be sufficient for the authorities to have unlimited access to the bank accounts of its citizens. To obtain full control over all the money of the citizens cash is gradually abolished and all payments will have to be made electronically. In Japan, for example, almost everyone pays with his cellphone. The more people pay electronically and the more online banking, the better for the authorities.
In principle, citizens will be notified by the authorities when information was requested. This also applies to people working behind dynamic IP addresses. Under the new law, the German Ministry of Justice has become an European kind of FBI (which already has unrestricted access to all online private information of American citizens).
Tuesday March 26, 2013 - Cyprus is a template and shows how they can legally get around what there is left of Democracy -
Updated sections: Investment pyramid (important section) ,
Remarkable is that last week, during the heath of the Cyprus crisis, the fluctuations of the Euro and gold were extremely small. Clear was that the ECB and FED plunge protection teams did a great job...in avoiding panic. Some markets were a little volatile. The gold price improved, the dollar was slightly weaker and the DJIA and silver were sideways. Yet the markets are still carefully balanced near potentially major pivot points, with the silver price and gold in dollars and in euros becoming interesting now.
Few realize European depositors have become creditors and You're next to be served. The only reason the Cypriot bailout "passed" is because it was structured as a bank restructuring, a financial system "resolution", not a tax, and thus not in need of a parliamentary, democratic vote. Because as Cyprus also showed, votes to deprive depositors of cash, whether insured or uninsured, simply won't fly. As I expected the Authorities are minimizing the decisions taken by the EU-leaders and IMF... Don't forget the crooks of the IMF, ECB, EU, FED are shrewd intelligent psychopaths, lawyers, emotion less people who can not care less about you and me!
|We must be happy for the IMF and EU-Authorities have bought us more time which MUST be used for what must be done: become your own Banker, invest in physical gold/silver, move you assets out of political reach and dangerous countries (Cyprus, Portugal, Spain, Italy, Greece, France, Belgium, the Netherlands,...) to safer destinations.|
This is why it is so important to have a clear segregation between Deposit Banks and Commercial Banks. The Glass-Steagall act (limited commercial bank securities activities and affiliations between commercial banks and securities firms) was signed away by President Clinton (and as of 1990 Europe saw a similar evolution) and Banks will remain dangerous entities until the law is restored.
In Germany and the EU-zone Authorities are working on a legislation to tax the purchase of Commodities (incl, gold and silver) by private investors. Any private citizen buying Gold/Silver could have to pay a sales tax up to 171%. The legislation would also apply to other Commodities bought as an investment. Remember they are seeking to punish the bad speculators...
During the 1970's and up to the 1980's a special system was used in Belgium: a convertible franc was used to pay for the import of Goods (commodities) and the Financial Franc was used to buy foreign currencies used for capital transfers. The advantage of such a system is that a run on the currency has no direct impact on the official-convertible exchange rate...and that each time a Devaluation was expected there was a "de facto" devaluation of the financial franc by an percentage slightly higher. The "de facto" devaluation stemmed the outflow of francs. [South Africa used a similar system] Any capital transfer was subject to an ok of the BLIW covering Belgium and Luxemburg.
Monday March 25, 2013 -- Trust takes years to built but is destroyed in a flash --
Cyprus will end up as the ultimate defining event in the History Books. Don't fall for the Propaganda...what is happening right now under your eyes is lethal for your savings and your financial well being. Cypriots are being looted like the Templar's were by Phillips the Fair...an what's worse, YOU ARE NEXT ! What Lagarde doesn't know is that she is going to be a modern Marie Antoinette. She said and is repeating herself today, "Cypriots and you Europeans, Eat Cake". Up to now what has been done is to insure the bank depositors without the IMF/Central Banks having to lose. That's what has been put into risk because of this debacle in Cyprus and now they want the DEPOSITORS to loose. Got Gold and WHERE do you keep it ???
Again, what the IMF's catastrophe in Cyprus has done is put into jeopardy every single dollar and Euro, Pound Sterling and Yen that any central bank has put in to maintain sovereign solvency. The IMF originally telling Cyprus to 'Go to hell,' has in fact said to the world, 'Go to hell.' The Western financial world may now indeed go to hell, and Fed Chairman Bernanke knows it.
|I have warned you repeatedly that you must exit the financial system and move your savings out of political reach...while such is still legally possible. What are you waiting for???|
A Ministry of Foreign Affairs (MFA) "urgent bulletin" being sent to Embassies around the world today is advising both Russian citizens and companies to begin divesting their assets from Western banking and financial institutions "immediately" as Kremlin fears grow that both the European Union and United States are preparing for the largest theft of private wealth in modern history. This warning is being made by Russian Prime Minister Medvedev
A safe and a shotgun are better than keeping your savings within political reach (inside the legal bankrupt banksters system)!
I have warned you and I am warning you again...soon this will also happen to YOU. When it does, be angry at yourself for you were warned and did not believe it or were to complacent and lazy to do something about it. Following clip has close capitioning (CC) and subtitels (beta) are available in most languages.
Currency controls will be part of the scenario...and when it does happen, it will do more than regulating capital transfers out of the Eurozone. As savers in Argentina, Venezuela and the USSR know, once 'they' instore capital controls (for your safety...) capital is trapped. So much for those believing in fiscal amnesty.
This is the single most inexplicable decision in bank supervision since the 1930's: people will take money out of the banking system all over Europe. Cyprus is a test....and it will have ripple effects all over the World! GOT GOLD? GOT it OUT OF POLITICAL REACH? if not so, you're committing financial suicide NOW!!!...FRIDAY 13th and remember the Templar's..and don't say it won't happen again.
Friday March 22, 2013 -A clean government should start with itself.
What goes along, comes along: DSK, Lagarde, Sarkozy (Libya, Mali), Bernanke!?....(pope Benedictus)..., 2014 Van Rompuy and Barosso...what the heck is going on??? This is more than a tempest in a Cyprian Teapot !!!
Only when one is upright can he ask others to be upright. Corruption is incompatible with the nature of the government like fire is to water. Chinese saying.
The Berlin Wall has no more reason to exist...unless people decide to flee from the WEST to the EAST!
|"I can only compare it to some of the decisions taken ... by Soviet authorities, who did not give a thought to the savings of the population." Medvedev about Cyprus|
What happens in Greece, Cyprus, Italy, Spain is just the tip of the iceberg and the Ponzi scheme. Soon the house of cards will collapse and it all will be amplified by the Derivatives.
The Government and the Banksters ain't gonna save you. What is happening in Cyprus and soon will happen in other countries by mobsters dressed up as ECB, IMF and government officials.
The crisis has been created by the bankers and the governments and as usual the citizen will have to pay the piper. Authorities are already preparing the bill and in a cashless society it will be extremely easy to get to your account and money.
Thursday March 21, 2013 - Got physical Gold out of political reach? Still believe I am a pessimist?
Updated sections: Inflation index , Natural Gas ,
Do you play chess? The IMF only has one choice if it wishes to remain the spokesperson monetarily for the world, and that choice is to rescue the Cyprus banking system, exactly the same way they treated Greece, Spain, Portugal, Italy, etc.”
The important point here, besides the fact that what we have just witnessed is a clear and decisive Russian victory and an IMF defeat, what is absolutely crucial is for investors to understand that a wrong decision by the IMF here could create runs on banks throughout the entire Western world that make the likes of what we have seen previously in Greece and Spain look likes child’s play. The bottom line here is Lagarde took on Putin, but Putin has checkmated both her and the IMF the same way a Russian grandmaster chess player would destroy his opponent.
Cyprus cannot, will not and absolutely must not leave the euro. Cyprus will and must be rescued because they cannot be allowed to leave the euro.
The amount of debt worldwide is more than all of the bank accounts in the world, and the current financial situation in Cyprus is the inevitable next phase: Confiscation.
Wednesday March 20, 2013 - Legal Theft II - The amounts at play in Cyprus are a lot larger than what is openly admitted - Get your money out while you still can!
Following clip has close capitioning (CC) and subtitels (beta) are available in most languages. Once the Herd stops trusting the Banks, its' GAME OVER!
Don't invest one cent in the Eurozone for we now have the proof it's run by people who disrespect the rule of law and democracy. Also, don't keep large bank accounts in Europe and certainly NOT in Portugal, Spain, Italy and Greece. Keep your SAVINGS out of the Euro-zone and/or TRANSFER THESE OVERSEAS now. Don't listen to the FISCAL AMNESTY LIES....nothing but a HUGE TRAP!
To keep BANK NOTES in a safe deposit box or at home is NO SOLUTION as it will become extremely difficult, if possible at all to reintegrate the funds into the Bank System. Physical Gold is a safer alternate to paper money (and also offers as a protection for inflation) but advisable is to ensure you prepare a return to the Banking system now that it is still possible. Worst case scenario you will be forced to play the underground market.
|Bad money drives out good or when government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.|
Tuesday March 19, 2013 - Fiscal Amnesty... a dangerous trap - Money in a bank is not safe (seen in Argentina and Cyprus) - GOT PHYSICAL GOLD ???
Updated sections: Bond fundamentals I , Investment Pyramid , Corporate Bonds,
We know that a news is probably true when a politicians start denying it. Cypriot President Nicos Anastasiades explicitly promised in his election campaign, only a few weeks ago, that depositors were safe and EU-president Van Rompuy (the cheap bank clerk looking like a wet rag) assured the recovery was just around the corner. The Cypriot electorate now faces losses on deposits as well as years of austerity (under the bailout loan). What's worse, deposits under €100,000 are supposed to be protected by EU law, not raided by EU leaders. And Cypriot banks have frozen close to €5.8bn, i.e. imposed capital controls which is meant to be illegal under EU single market rules.This is political dynamite, a bank crisis and LEGAL THEFT. EU-politicians and Bankers have opened Pandora's box.
"We should say this directly: this simply looks like the confiscation of other people’s money, I do not know who the author of this idea is, but this is what it looks like." Medvedev
News that the International Monetary Fund initially demanded to loot a shocking 40% of savings from the private bank accounts of Cypriots underscores how residents of the Mediterranean country could be the latest victims of the infamous “IMF riot,” as the chief economist of the German Commerzbank calls for Italians to be similarly plundered for 15% of their savings.
Friday the hedge funds were short a staggering 68,700 Gold contracts. What makes this number even more amazing is that it represents an astounding 10+% of the entire open interest in the gold market of 667,000 contracts. So this is by far the hedge funds' largest short position in percentage terms in history. The thesis upon which the hedge funds have gone short of gold has now been destroyed. During the weekend we had the birth of a transition of the gold market to a cash market. The paper markets will now be moving towards becoming cash markets...and Gold will start a new bull run soon.
Brace for increasing volatility of the financial markets: We should do all that we can to prepare those who take a position in precious metals for what is coming, both good and bad. If you think this correction is depressing, just wait until you see what gold corrects to after it hits $3200. I promise it will be misery beyond comprehension and few will point out the significance of gold hitting $2800 and $ 3200 when it happens.
Ever played chess and know what it is to stay ahead of your airplane (especially in IFR conditions)? Soon Authorities and Bankers will ensure Paper Money becomes obsolete and they will BAN any use of it. Once all economic /financial action has been drained into the DIGITAL MONEY system, TAX optimization will become extremely hard and I am almost sure that Bankers will levy TAXES directly for Governments. Those holding physical Gold/silver must start to prepare their exit procedure TODAY.
|Depositors all around the eurozone MUST seek alternatives to bank deposits NOW. These alternatives are likely to be cash withdrawals (unsafe) , capital flight into other non-European banks, and into physical gold.|
Cyprus is the detonator for a small correction of the overbought stock markets.
Monday March 18, 2013 - Things are "fixed" and the recovery sits just around the Corner- EU-president Herman Van Rompuy: markets open and Euro is slammed, pre-market SP500 down 30 points, Gold breaks the $ 1600 level, Swiss is a bid, Pond, Loonie, CanDollar, SEK and NOK up!...are you protected???
Updated sections: Agriculturals , Copper & Platinum , Long term commodity charts , Bond Fundamentals II , Investment Pyramid
Cyprus savers are the first to be betrayed openly by both your politicians, and by Europe. Anywhere between 6.75% and 9.9% of your money, which you were foolish enough to keep with your banks (where at least you were compensated with a savings yield of... 0%) will be gone by Wednesday.
Reality is that the Money is gone, that the Money is debt, that the Money has become a Fata Morgana, a Mirage which is slowly evaporating. Reality is that Money is created out of thin air by Government and Banks: treasuries (paper debt) are exchanged for bank deposits (digital money) and you are being told the result has value: ZERO x ZERO = ZERO !!!
Usury there is when those who create Money don't have to pay interest but those who borrow must....
|Banks are technically BANKRUPT and as of this morning Europe has finally grasped that there is a 6.75% to 9.9% premium to holding physical cash in your mattress rather than having it stored with your local friendly insolvent bank.|
What's just happened is the IMF has backed up, lauded, supported, and publicized, as if it were a victory, the taking of 10% of what really turns out to be 80% of Russian 'black money.' Russian 'black money' is KGB money, now in business. The leader of Russia (Putin) was a former KGB official. Who's money do you think they have taken? This is the biggest mistake the IMF could possibly have ever made. Jim Sinclair
More on coercive interventions into personal wealth: BCG Back to Mesopotamia (the looming danger of Debt Restructuring)
And for those amongst you who think it is safer to keep Currency (paper money) under your mattress, be advised this also has a catch: paper money will also completely disappear and hence paper money will become worthless. Digital money and a cashless economy will become the FINAL TRAP.
|Who is stupid enough to short Gold and Silver in a rising market?|
Between November 2000 and September 2011, the HUI gold-stock index rocketed 1664% higher! Over that same span, the S&P 500 fell 14% and gold rallied 603%. Gold stocks are unparalleled proven performers. While sentiment drove stock prices lower, gold miners' profits continued to grow. Yet they've been correcting. As of last week, the HUI-index has fallen 46% over 18 months. That wasn't even close to being the biggest correction (2008-09). Yet it was enough to sour investors who most of the time have a short financial memory and have forgotten about the previous 1664% bull run.
Central banks manipulate far more than just gold -- interest rates, stock markets, housing markets, etc. That's what they do. And so what? The gold price has gone up for the last 12 years, despite the 'manipulation.' Even if Western central banks try to sell gold down, Eastern central banks are only too happy to accumulate at lower prices...and when demand is bigger than supply, the price goes up!
Friday March 15, 2013 - Socialism is a philosophy of failure, the creed of ignorance and the gospel of envy -
Updated sections: Recession Proof shares (what can be expected? - important changes) , Natural Gas (distinct BREAKOUT & check the shares in the basket)
GANGSTERS - BANKSTERS they are ! Not only did they manipulate the libor but they also rig the price of Gold. WANTED are Barclays, HSBC, Deutsche Bank, Bank of Nova Scotia and Société Générale...for their CRIMINAL behavior. Better think twice if you still have an account with these mobsters!
|Each time you have money in a Bank account or under a mattress you are trusting JP Morgan or one of his buddies....|
Why would one pay interest for worthless fiat money?? Governments by definition NEVER learn: Bank of Japan (8301) governor nominee Haruhiko Kuroda said that the central bank will consider buying derivatives if he's confirmed as governor and signaled a readiness for a quick expansion in monetary stimulus.
Bankrupt governments in decline almost ALWAYS fall back on a time-tested playbook. This includes imposing controls on EVERYTHING- wage and price controls, trade controls, capital controls, border controls, people controls. Everything. And this idea goes back to the dawn of human civilization.
In our modern times, Argentina has become the poster child for these tactics; the government has fixed prices at the grocery stores, banned advertising, prevented people from holding precious metals and foreign currency, nationalized pensions, and restricted beef exports. By doing this Kirchner (another intelligent psychopath) has ruined a country which used to be one of the richest in the world. Another example and another Intelligent Psychopath was Chavez.. [Argentina used to be the #1 beef exporter of the world]
Eventually the gold companies will become like utilities as the gold price is moving towards its final destination. These quality gold companies will pay big dividends the same way the utilities have always paid big dividends. If the company has the gold, the mineable ounces, and the ability to finance, then what are you worried about?
Thursday March 14, 2013 - Price and value are not the same thing -
Price and value are not the same thing. If a stock is higher and the value of the company hasn't changed, that's a signal to consider taking profits. If a stock is lower and the value hasn't changed, that's a signal to consider buying more. A similar reasoning can be made about Gold and a Fiat Currency. The share prices of many good Gold/Silver miners have been reduced to levels that are totally illogical and without reason other than baseless fear.
|Did you know that it will take the FED EIGHT MONTHS to deliver 1/3rd of the German Gold held in the USA...!?|
The Dow Jones Industrial Average (weekly & daily) surged to a new all-time numerical high today by exceeding its 2007 peak. Meanwhile, Dow Jones Transports continues its surge into new all-time high ground. However, I respect the long-term history of Dow Theory, often commented on by the venerable Richard Russell, and today's new high by the DJIA, if maintained and extended, signals a potentially significant Dow Theory buy signal, at least while we still have QE. Conversely, a DJIA close beneath 13,770 would indicate a potentially significant upside failure...Ever heard about Communicating Financial Vessels and QE????
Natural gas doubled last year from below $2 to test $4 by November. It has since pulled back to find support in the region of the 200-day MA and a sustained move below $3 would be required to question potential for some additional higher to lateral ranging. A sustained move above $4 will be required to confirm a return to medium-term demand dominance.
URANIUM-NUCLEAR ENERGY ETF traces out bullish revesal pattern... Uranium and nuclear energy have been in the doldrums since March 2011, which is when the Fukushima nuclear disaster occurred, but the worst may be over as the Uranium-Nuclear Energy ETF (NLR) forms a bullish double bottom. In fact, it looks like a reverse Adam and Eve double bottom. The Adam low forms first and is "V" shaped. The Eve bottom forms second and is more rounded in nature. The May-June low is rounded on this pattern, while the November low is "V" shaped. In any case, a clear double bottom is taking shade with the September high marking resistance.
A distinct flawless reversal we also have for the GLD ETF. Technically the series of breakaway gaps and bottom could well end up being an ISLAND reversal and an IMPORTANT BEAR TRAP for Gold....I expect the Gold and silver miners to become THE Dividend paying stocks by excellence of the next years...to be continued...
The Real Estate bubble is about to bust in France and Begium soon! Don't believe it won't happen because you haven't seen it happening yet...
Wednesday March 13, 2013 - Governments don't like Gold because it is keeping them under control -
It's not Gold going up you fool...it's the percepted value of Fiat Paper Money coming down. If this is true, how then can they pretend Gold sits in a Bubble...!? The idea that the gold bull market is over to be "beyond ridiculous". I would argue that for all practical government intents and purposes, it's bull run barely started. There will be no currency war, but there will be co-ordinated devaluation of all G20 currencies against gold, just like there was in the 1930s. Every time there's currency devaluation, the safety valve is gold. It's paying off as it should in Venezuela and Japan and who knows which currency is going to get weak...
What we are living will be a ONCE in a LIFE TIME experience...fortunes will be made and fortunes will be lost...what's gonn happen to you??
For those fools still buying BANK SHARES: If Greece, Spain, Portugal, ...and their banks would not have been Bailed out, the Major GERMAN and FRENCH banks would have gone bankrupt ! Basically those countries and Banks were bailed out to avoid the bankruptcy of the major German (Deutsche Bank) and French banks (Soc. Generale., Credit Agricole,...). There simply was NO POLITICAL ALTERNATIVE.
Tuesday March 12, 2013 - The more Bearish advisors, the closer the Bottom and the higher the next top ! -
1976 and the Mainstream Media and analysts about Gold: Obvious is that those who looked only at the price and ignored the fundamentals ended up eating their words and dispensing horrible advice. Investors who followed the "wisdom of the day" missed out on one of the greatest opportunities for profit in their lifetimes.
- For the moment at least, the party seems to be over. New York Times, March 26, 1976.
- Though happily out of the precious metal, Mr. Heim is no more bullish on the present state of the stock market than any of the unreconstructed gold bugs he's had so much fun twitting of late. He's urging his clients to put their money into Treasury bills. New York Times, March 26.
- It's a seller's market. No one is buying gold, a dealer in Zurich said. New York Times, July 20.
- Though the price recovered to $111 by week's end, that is still a dismal figure for gold bugs, who not long ago were forecasting prices of $300 or more. Time magazine, August 2.
(gold hit $300 almost exactly three years later, a 170% rise)
- Meanwhile, the economic conditions that triggered the gold boom of 1973 through 1974, have largely disappeared. The dollar is steady, world inflation rates have come down, and the general panic set off by the oil crisis has abated. All those trends reduce the distrust of paper money that moves many speculators to put their funds in gold. Time magazine, August 2.
- Our own predictions are that gold will go below $100, with some hesitation possible at the $100 level. Mr. Heim in the August 19 New York Times.
- Currently, Mr. LaLoggia has this to say: There is simply nothing in the economic picture today to cause a rush into gold. The technical damage caused by the decline is enormous and it cannot be erased quickly. Avoid gold and gold stocks. New York Times, August 19.
Following comments were made literally within days of the bottom!
- Gold was an inflation hedge in the early 1970s, but money is now a gold-price hedge. New York Times, August 29.
- Don't invest in Gold for it isn't backed by anything
- Private American purchases of gold, once this was legalized at the end of 1974, never materialized on a large scale. If the gold bugs have indeed been routed, special responsibilities fall on the victorious dollar." New York Times, August 29.
- It is still too early to buy bullion." New York Times, September 12.
- The price of bullion is headed below $100 an ounce. Who wants to put money over there now? Lawrence Helm in the New York Times, September The price of gold had bottomed two weeks before, making the timing of this advice about the worst it could possibly be.
- Any argument against putting your trust in gold, and backing it up with money, goes double for silver: silver is fool's gold. Elliot Janeway New York Times, November 21, 1976.
From the date of these comments to silver's peak of $50 on January 21, 1980, silver rose 1,055%! Obvious is that those who looked only at the price and ignored the fundamentals ended up eating their words and dispensing horrible advice. Investors who followed the "wisdom of the day" missed out on one of the greatest opportunities for profit in their lifetimes.
Monday March 11, 2013 - "When it becomes serious, you have to lie." That statement was made by Jean-Claude Juncker, head of the Eurozone.
Updated sections: Uranium (*** is breaking out = strong buy) , Crude Oil ,
There has been an absolute explosion of negative press towards Gold. The precious metals complex is arguably at its most bearish sentiment since the start of the bull market 12 years ago. Either the bull market is over or this will prove to be a tremendous buying opportunity...What will you take home: worthless monopoly money or the Gold bars??? Bear in mind that this is probably the LAST TIME one will be able to buy Gold at these low prices.
February 25, 2005 during a symposium I predicted we would see Gold at $ 1,000 !
Today (March 2013) I predict Gold will at least trade at $ 3,200 per oz.
Financial markets thrive on a Sea of Liquidity, Fiat paper and digital money (see communicating financial vessels) and will go up as long as the money printing goes on...until we have hyperinflation and the STUPID HERD looses its BELIEF in the Fata Morgana created by the Authorities and the Banksters and the whole financial system collapses. Having said this, there is little or no correlation/connection left between the Financial Markets and the Economy and financial markets must from now on be approached in a totally DIFFERENT way.
The good news is that we will ALL become billionaires....The bad news is that ONLY those who keep their purchasing power in physical Gold/silver (and in other well specified basics with NO counterparty risk) AND ALSO keeps these out of political reach will financially survive. Remember that NO PRISONERS are taken...and those who don't buy Gold today are those who will buy it at $ 3,500 and higher!
Late Summer 2011 was the beginning of a consolidation for Gold and Silver but also for Energy and many other commodities. Exactly the same consolidation we had for the US and EU money supply (see chart below)...and so as the Money supply goes, so goes the Gold and Silver sector. Last month was the END of the consolidation for Gold and Silver...
Green energy (solar, wind,…) is a luxury PROPAGANDA ENERGY and only serves the politicians to buy votes and to TAX the voters and the world the requested time to properly convert the old energy systems based on coal and oil to the new systems using Uranium and nuclear energy. [Modern politicians can with some exceptions be compared to Louis XV and will end like Louis XVI and Marie-Antoinette did]. Green Energy is probably the last victory for Globalism.
$xxx is a resistance to be broken for crude oil...that is before we can see higher levels. Expect a new bull run somewhere either before August this year, or either beginning of next year after the price of oil breaks out of the box. Having said this, the marginal production price of Crude Oil is $75 to $80 and the price of Natural Gas will go up in the wake of the Oil price.
2009 we had a V-reversal pattern for Gold/Silver and the miners. What kind of reversal do we have this time? ....a bullish Head and Shoulders pattern? a W-reversal pattern? a V-bottom with lengthy right-hand extension base formation? In 2009 it took no longer than 6 months before all Gold and Silver mines had bounced back to their 2007 level. How long will it take this time before we see a new high?
Friday March 8, 2013 - markets can stay illogic for a longer time than we can stay solvable (Keynes) -
Updated sections: daily news - see comment about Gold and Silver shares below
No inflation!?....check this out:
In 1960 a new house cost $12,700.00
In 1960 the average income per year was $5,315.00
In 1960 a gallon of gas was 25 cents
In 1960 the average cost of new car was $2,600.00
We have another bullish setup in Canadian dollar, a positive for Canadians and long-term Loonie investors, suggests a broadening price floor under oil and silver and warning to oil and silver bears. Together with the Australian Dollar, the Loonie is on of the safest currencies on planet Earth. Currencies cannot be compared with REAL Money or Gold/Silver.
Value must be expressed in REAL MONEY and not in Worthless Fiat Monopoly money. Because we live in a system where the people have been brainwashed (and still are) that Digital and Paper money do have some value (even if they have not) one cannot expect that perceptions change overnight. Politicians know people like SWEET LIES...However is an accident occurs, such could happen!...see our last newsletter
For Gold and silver shares we have an inverse correlation versus the SP500 and an abnormal high negative sentiment: as a result of this negative sentiment any occurance is resulting in negative price action and shares fall when the SP500 goes up and vice versa. $-Gold is completing a HUGE BEARISH TRIANGLE...will we have a break out on the downside as technically expected or on the upside and surprise the market...!? Browsing through the PF charts for Gold and silver expressed in other currencies show a totally different technical picture (ex. bullish flags) ; sentiment and fundamentals indicate we shall BREAK OUT on the UPSIDE !
note: Gold and silver shares got hammered (1,2,3,4) each time the gold price touched the bottom ($1550) line of its consolidation zone.
This is what a selling-climax looks like. Past week bearish sentiment for the Gold and Silver sector became extreme and the slightest doubt and/or anomality around a Gold/Silver co. resulted in a massive dumping of the shares.
In the past few days it rained negative/bearish reports about gold. Société Générale analysts warned yesterday that gold was in a bubble and that the bubble was about to burst.
- Gold got the short end of the stick
- Growing fears of deflation in the U.S. puts pressure on gold price (brokerage services)
- Rats leave the sinking ship gold (Nomura)
- Gold price will fall to $ 1,200 (Goldman Sachs)
- Deflation and Silver price mechanics
- The big bearish picture
The Gold and Silver sector has a rather small capitalization and the fact that those who believe that "It's over and done with gold/silver" jump out of the frying pan and dump all gold/silver shares in panic. Such sometimes results in illogical spectacular spikes. You can only protect yourself by doing nothing and by riding the wave. Experience teaches that a Selling climax normally is followed by a strong key reversal...
Interesting is to Google main events: stock market tops and bottoms, real estate top and bottoms, currency top and bottoms, etc...and see how EACH TIME the media EXACTLY NAIL the OPPOSITE of what is happening: extreme euphoria ends up being a top and extreme pessimism a bottom!
Thursday March 7, 2013 - check our PF charts in the subscribers' section "World Stock Indexes" for details on the new record for the DOW.
Updated sections: Gold & Silver Juniors (distinct bottom?), Juniors information (PZG) , Banks and Financials (AXA) , Oil Shares (check the technical signals and high yields) .
About Glaubensunwilligkeit and It's not gonna happen again:
Hyperinflation? "That's not going to happen." The US could become a socialist nation. "That's not going to happen." It's always the same response. Not only can these sorts of things happen - they do happen, and sometimes more frequently than one may realize.
When my grandpa was a teenager during WWII living in Croatia, he was watching the cows in the pasture one day; the next day, the local Croatian Nazis came through, murdered his grandmother, and burned down the family house. (On a side note, people's guns had been confiscated first.) During WWII in Croatia, there was even a children's concentration camp. If you think Sandy Hook was a tragic event, just think of the scale of a children's concentration camp.
Besides suffering the tragedies of war, my grandfather would also live under hyperinflation and communism in his lifetime, along with yet another war. So, all of those things which are supposedly "never going to happen" have happened to my family - sometimes more than once. The common response to my grandpa's story is, "Well sure, but you're from the Balkans. People over there are crazy. We're not like them. That's never going to happen here."
Stock markets are going up as a consequense of Money Printing (quantitative easing) and communicating financial vessels. As usual the Mainstream Media is filling up the reality with postive stories...which will become negative stories as soon as the markets come down. PRICE is what is important...anything else is STATIC.
Korea just bought 20 Tonnes of Gold. How much did you buy lately? How come so many are bearish or fear Gold will crash but Korea buys 20 Tonnes? Would they know and understand something you don't? Or are yous till listening to the Mainstream Media and the lies sold by the Authorities. Gold is back at $ 1580, next comes $1620, $1680 and $1820...before it shoots for $ 3,200!
Chavez was an excellent politican. He knew who in a DEMOCRACY votes somebody into power: the majority who's vote you buy with BREAD and GAMES. As usual the working class (Middle Class) had to pay for this...or this is how he ruined the Venezuelan Economy. There is NO SUCH THING as a FREE MEAL. Either you produce or you drown. Government can only sustain Socialism until the Money of the Others has been spend..or has left the country.
Wednesday March 6, 2013 -
Tout va tres bien Mme La Marquise: as long as the Central Banks can print money ($ 85 bn each month for the USA alone) and there is NO HYPERINFLATION we have an "Open Bar". Either you opt for printing money and hyperinflation, either you opt for austerity...and as a rule austerity results in Social unrest...and social unrest is the ennemy of Government and Authorities.
It's a trillion times worse than Enron. When it falls apart, then you will realize what level of corruption and deceit was really taking place: a Ponzi scheme (compared to what is happening today Madoff was an Altar boy) , a Mississippi story, a Tulip mania, french Assignats, Renten marks,...
China is a High Order Capital good country and will fall into an exponential depression as soon the Western world's economy stalls and money printing stops. Chinese GNP cannot continue to grow, they cannot continue to build ghost towns and ghost roads....
Welcome in Zimbabwe or all this Fiat Money flows (communicating financial vessels) into the financial system and creates bubble after bubble. Given the hyper-correlation over the past three months between US equity performance and the daily pump of Fresh Fiat Money, it appears clear that the target for the S&P 500 by year-end is around 2000. [note that the bullish objective of the HS-pattern has been reached]
Tuesday March 5, 2013 - “The difference between a welfare state and a totalitarian state is a matter of time.” Ayn Rand
Updated sections : Long term World Stock Market indexes , Gold and Silver Majors (end of correction or is there more to come?),
Real estate is a High Order Capital Good and it's price ALWAYS FALLS during (hyper)inflationary recessions and depressions...even in China! [click on the picture to view the movie]..three generation of savers will see their savings whiped out, washed away....A MUST see for anybody still believing in stones and concrete.
Monday March 4, 2013 - We have a Paradigm shift - official idiots still value gold at $ 42 per oz. !?
Updated sections: Peak Oil , Swiss-Gold & CHF/$/€ ,
More and more people are voting with their feet: In Europe Depardieu has found a new home country while Bernard Arnault (LVMH) is still shopping around London-based American lawyers, who specialise in tax and immigration, report a threefold increase over the last five years in the number of American citizens who are giving up their citizenship - a process known as “renunciation”. Across the world 1,781 Americans renounced their citizenship in 2011 compared with just 231 in 2008, when US tax laws changed, although it remains unknown how many are adopting British rather than any other nationality...more (click to enlarge)
Expensive energy doesn't tolerate complex societies and the USA will, just like the EU disappear, go bankrupt and break apart during the coming Hyperinflationary Depression. Interesting is that the evolution in Western-Europe (the EU) and the USA towards the catharsis is similar to the evolution pre-1989 in the USSR. The video clip is a presentation by somebody who actually lived the fall of the USSR...Also see Tainter and other sections about complex societies and remember that small is Capitalism (in the real sense of the word) and beautiful but LARGE and COMPLEX societies are Communism, seven headed dragons and NEVER survive. This implies that the USA will secede, that the EU will fall apart but also that countries as Belgium andregions as Catalonia, Basque Country,...will become independent. [the beauty of pure capitalism is that it is based on Individualism while Socialism, Communism and Democracy and Capitalism like they are referred to today, are nothing more but GLOBALISM and PURE COMMUNISM]
This ain't 1981 like many inexperienced, young, illiterate analysts pretend...but a MAJOR BOTTOM for GOLD...!
Because of the general feeling about Gold (the bull market is over...) we now have A Golden Opportunity With Miners whose price reacted in an exponential way: the divergence is now at its' maximum! I am guessing, but it could well be that for some reason the bull run for common shares stalls before the summer and the Gold sector has resumed its bull run.
1306 France was in huge debt and Phillipe le Bel was sick and tired of being a slave to the bankers (those days the Templar's were the Central Banks, the FED, ECB, BoE, BoJ). For this reason he ordered ALL Templar's (bankers) to be arrested and executed. Today we have a similar problem....the question is:"will banksters be arrested and executed and will the world decide to operate with REAL MONEY instead of running a financial system based on Worthless Paper and Digital Monopoly Currencies? The spring revolution in Libya was nothing more than enforcing the country run by Gadaffi to operate under a central bank instead of using a Gold-Dinar. The Iraq War and the execution of Saddam Hussein happened because he had decided to stop using the Dollar as payment for Crude Oil...and Iran is going through the same hell because the country refuses to work through a CENTRAL BANK. [1100–1300 – Knights Templar run earliest Euro wide /Mideast banking.]
Friday March 1st, 2013 - It is simple: trust Government and you will loose your savings - distrust Government and you will financially survive-
Paper money ain't wealth. America will win the currency war...so if you hold DOLLARS you will loose. Those holding Bonds will end up collecting coupons for nothing. Those holding Life Insurance policies will loose, those holding on to Saving accounts and Bank Deposits will loose, those living on Pension funds will loose....
The phony economy the Government is running is unsustainable. There is ONLY one way out and it is through reducing Government spending.
When browsing my charts, I get the impression the world is upside down - Even the Spanish Bolsa is doing well...: Gold and silver shares are in the doll-drums and common shares are HIP. For a non-specialist, the impression is that all problems have been solved and (some) Stock Markets are preaching that ALL is WELL Madame La Marquise. Recession is past and recovery is happening as you are reading these lines. There are renewed BUY signals for many shares. Oil shares and recession Proof shares are also doing well except for xxxx which should NOT be bought at these levels).
IMPORTANT is the know and to see that Gold and Silver shares may have fallen back more than I expected but they are now bouncing off the xxxxx of their Long Term Secular uptrend lines/channels. Having said this, it is advisable to wait until we have a technical confirmed bottom BEFORE adding to your positions or initiating new ones.
The making of the next global crisis: after Japan comes the UK ! The EU has 10,000 tonnes of gold, the USA has 8,000 tonnes of Gold...the UK has none (Gordon Brown sold it at the very bottom of the market).