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The Myth of "Summer Doldrums" in the Gold Market 
OK, as you all know my number one pet peeve is "good guys" that do a disservice to our cause by putting out two-faced, misleading, or in many cases, just plain lazy analysis. We are fighting a financial war against the evil forces in Washington, New York, and London, whom thrive on such reports, as their one and only goal is to promote FEAR in the hearts and minds of Precious Metals investors. In other words, as the financial Cat 5 hurricane hits American shores, they want you to be OUT of Precious Metals and IN the toxic assets they are promoting, such as stocks, bonds, real estate, and, of course, the U.S. DOLLAR. Such propaganda would never work in a freely traded market, but by now, particularly if you have read my recent RANTS, it should be crystal clear that not only are Precious Metals markets NOT freely traded (gold, silver, AND mining shares), but the LEVEL of manipulation has escalated exponentially since the physical market started showing major cracks late last year. November 9, 2010, or "D-DAY" was the Cartel's response to PHYSICAL CRISIS #1, when they resorted to the first ever INTRADAY silver margin increase to quell the metals surge, and simultaneously started viciously attacking large cap mining shares with GOVERNMENT COMPUTER ALGORITHMS to make sure people betting against them were punished (those "ALGOs" continue to this day unabated, and consequently I no longer own large cap mining shares). However, despite these despicable, illegal tactics, the physical market shocked them by rapidly rebounding, with both gold and silver setting new all-time highs on April 29, 2011, just five-and-a-half months later. Obviously, this surge was even more dangerous, particularly with the "end" of QE2 looming on the horizon, the European Community collapsing, and Japan amidst the most horrific humanitarian and economic crisis of the modern era. So after a three-day (Good Friday) weekend of planning, they launched the SUNDAY NIGHT PAPER SILVER MASSACRE, attacking the paper market in the wee hours of trading Sunday night while China was closed for a holiday. They started with a comical $6 drop in silver in NINE MINUTES, and then when it started to rebound reported the "shocking" news that bin Laden was killed (as if that matters), despite having no body to prove it. Moreover, when gold had the gall to recover ALL its Sunday night losses in Monday morning trading and reach another ALL-TIME HIGH, they turned up the juice with a patented 12:00 PM EST CAP and ATTACK, replete with a vicious follow-up paper attack in the last half hour of NYSE trading to make sure their plan was a success. Of course, after that attack every moron in the investment community started spouting how the silver bubble had popped, that it was "due" for a correction, blah, blah, blah. No matter that, on an inflation-adjusted basis, silver is still a third of what it would have been in a freely traded market, or that it was obviously blatantly attacked with the aforementioned Sunday night attack, as well as five margin increases in the space of a week. I mean, how dumb does one have to be to attribute silver's fall to "market factors" in the face of what was OVERTLY done to knock the price down? And, particularly, how could a so-called "ally" of Precious Metals investors not state otherwise? Geez, this world has gone to hell. Anyhow, as I noted in my last RANT this week, "2008 Revisited", the time between "labor contractions" (both literally and figuratively) are getting shorter and shorter, as physical demand continues to rise no matter how hard the "Ministry of Truth" tries to promote lies about economic recovery and that the Fed and President Obama are in control of the situation. In other words, it only took one month for the next physical uprising to occur after the SUNDAY NIGHT PAPER SILVER MASSACRE, with gold once again threatening to go through the critical $1,550 level that has become the obvious "line in the sand" for the criminals in Washington and on Wall Street. Obviously, another push for gold to record levels so soon after the SUNDAY NIGHT PAPER SILVER MASSACRE was not going to be tolerated, particularly as silver was now threatening to retake the critical $40/oz level. So what did they do? They of course attacked gold and silver at the typical time, EXACTLY 12:00 PM EST, and then followed it up with an incredible SMASH in the LAST 20 MINUTES of NYSE trading, with NO OTHER MARKET MOVING AT ALL! By the end of the day, gold was safely below $1,540, and silver had been attacked to the tune of $2.00/oz, with nearly all the decline occurring in a FIVE MINUTE interval from 3:40-3:45 PM EST. Alright, let's stop to do some math here: Event Date Reference Point Time Interval D-DAY November 9, 2010 CARTEL PHYSICAL CRISIS #1 SUNDAY NIGHT PAPER SILVER MASSACRE May 1, 2011 CARTEL PHYSICAL CRISIS #2 173 days 3:40 PM SILVER PRICE SMASH June 1, 2011 CARTEL PHYSICAL CRISIS #3 31 days And now, back to the present. Ah, let's see. For the entire month of June, we have seen nothing but imploding economic data, including some of the largest misses versus "expectations" I have seen in my 22 years of following the markets (not just in the U.S., but in Japan and Western Europe as well). Day after day, horrible data regarding employment, housing, construction, and sentiment, as well as higher than expected inflation on all fronts. And of course, the looming Fed meeting on June 22nd, at which they would state their intention to continue printing money ad infinitum. Not to mention, a cratering situation in Europe in which Greece, Ireland, Portugal, and others teeter ever more precariously on the brink of bankruptcy and outright default. In this environment, not only did gold slice through that same $1,550 level that the Cartel had been violently defending for months (leaving it just $17 from its all-time high of $1,575), but gold priced in Euros was back to its all-time high of E 1,080, a level that has been even more staunchly defended, for the past YEAR, and all on the day of the Fed announcement! Well, the Fed announcement came and went, and, as expected by every person on earth with half a brain, it stated that they will keep interest rates at ZERO for an "extended period of time", continue reinvesting maturing Treasuries ("QE2 light"), and remain ready for further stimulative action if the economy does not recovery quick enough (which it won't). It should shock no one that the announcement itself engendered, if anything, more buying in gold and silver, and surprise them even less that gold and silver started declining at EXACTLY 12:00 PM EST, irrespective. Moreover, late in the afternoon, ominously, suddenly gold and silver started to plunge for no apparent reason, with gold ending the day barely positive and silver losing all its morning gains at the hands of the Cartel. Irrespective, the Fed's statement was massively bullish for gold, as it always is, and based on the market close that day (Dow down 81, gold up $2 to EXACTLY $1,550, and silver unchanged), clearly a danger was present that gold might once again rapidly become the safe haven asset that it has been throughout 5,000 years of history. So what happened next, you ask? In the following two days, PM investors were treated to the next violent Cartel attack, which I have termed OPERATION POST FED PM/OIL ANNIHILATION. There was NO WAY the Cartel was going to let gold surge to new highs in the aftermath of helicopter, quivering lip Bernanke stating his intention to continue with QE to Infinity, so, just before the COMEX opening, "Breaking News" came out that the IEA, or International Energy Agency, was having an "Emergency Meeting". The IEA, a council of "leading economic powers", is as goose-stepping and toothless as its counterpart the IMF, but when its actions are coordinated with manipulative market attacks, their words would no doubt be perceived to hold weight by the moronic, patsy media. Despite the fact that global economic data has been imploding for weeks, and that oil prices have been declining for the past two months, the IEA somehow decided that an "Emergency meeting" was required the day after the pathetic Fed announcement, during which they URGENTLY determined that 10% of their cumulative Strategic Petroleum Reserves needed to flood the market to push down prices! Huh? Is there anyone with even a handful of brain cells that can see an URGENCY to smash oil prices in a market already in decline, much less the day after the world's most esteemed financial group, the Fed (facetious), determined that not only is the economy continuing to weaken, and likely will continue doing so into 2012, but that they can't even figure out why!?!? Or how incredibly stupid it is to release 10% of the Western World's SPR without a corresponding "emergency", when global oil supplies are already dangerously tight? Not to mention how poorly it reflects on the competence of TPTB, not just in the U.S. but essentially everywhere? Oh, why do I even bother, when the LEAD HEADLINE of this weekend's Yahoo Finance is as silly as this:
Yes, paying $3.45 per gallon (here in Colorado) compared to the $3.70 I was paying last month will make a big difference on my financial situation. The extra $4 per week in gas savings will have a tremendous impact on my life….LOL Anyhow, what a shock - the second the COMEX opens up on Thursday, gold is smashed for nearly $20, and by the time we reach 11 AM EST, gold is down to $1,515, an astounding $43 in 24 hours based on ABSOLUTELY NOTHING (not that we haven't see such Cartel attacks dozens of times before). Please tell me how a one-time sale of oil, which if anything makes the supply/demand balance more precarious, is negative for gold? Of course it isn't, but as noted above, of course that is what the media will print. If I had a nickel for every time oil surged but gold was smashed, I'd be a billionaire, but in today's world, in which financial markets are controlled by GOVERNMENT COMPUTER ALGORITHMS, PAPER gold and silver can be made to correlate with anything TPTB want, at any time. OK, so we survived Thursday, as painful as it was to see a Cartel attack generate yet another short-term victory for the bad guys. I wake up Friday morning to see new horrible news, that several major Italian banks were halted for not passing "stress tests", and that, consequently, Moody's was putting them on review for downgrades. www.equityhelpdesk.com/node/44744/who_voted I also saw copper UP 1.5%, and thus guessed that gold was higher as well. But that scenario only would occur in a freely traded market, which of course gold and silver are not. Both Precious Metals, irrespective, were essentially unchanged until the COMEX OPENING, when they started weakening immediately before the day's first, requisite waterfall decline at EXACTLY the 10:00 AM PM fix. Gold then tried to rally, but as always the CAP was in around EXACTLY 12:00 PM EST, and by the day's end (with copper STILL up 1.5%), gold had been pushed below $1,500 for a brief few minutes before closing at $1,502, down nearly $60 in 48 hours in an environment of massively bullish gold news. So before I get to the main point of this RANT (no, I haven't gotten there yet), I want to update the time interval chart between MAJOR Cartel attacks, to again show that the times between "crisises" is getting shorter and shorter. Mind you, TPTB are in the market EVERY SECOND of EVERY DAY attacking PAPER gold, silver, and large cap miners to keep the sector down (per my recent RANTS, "Cartel Secrets Revealed, Parts I and II" and the "2010 and 2011 COMEX Manipulation pictorials), but I am talking about MAJOR, COORDINATED OPERATIONS such as what we just witnessed the past two days. Event Date Reference Point Time Interval Between Events
OK, back to the myth of "summer doldrums" in the gold market… Of all the things that piss me off in the PM market, the two on the top of the list are:
I think I've discussed the short-term chart topic ad nauseum, although I'm sure it won't stop these dolts from continuing to publish charts with little arrows showing how gold is "breaking its trend line" and thus "could fall further." Notice how gold is never breaking out to the upside, despite the fact that it continues to hit new all-time highs year after year after year? That's your gold Cartel in action, as any time gold does hit a new all-time high (as its has done four times in the past six months), it IMMEDIATELY is slammed down by the Cartel, such as on the aforementioned "D-DAY", the "SUNDAY NIGHT PAPER SILVER MASSACRE", and this week's "OPERATION POST FED PM/OIL ANNIHILATION." In other words, gold's new highs are never around for more than a day or so before the next Cartel attack, leaving little time for "analysts" to publish short-term charts showing positive gold technicals. And believe me, as I have watched every tick for NINE YEARS, this is unfailingly the case, EVERY TIME. As for the summer doldrums, I agree that in the general equity markets (at least before the PPT took over daily support operations), it is common for indices to languish in the summer months due to reduced trading volumes. Moreover, given that nearly all American investors - retail, institutional, and government - have lost money in essentially every market they've traded in since 2008, and that we are currently in the early stages of the "Greater Depression", it is certainly reasonable to believe that stock trading will decline this summer, with no reasonable expectation for higher prices any time soon (outside of additional "QE" turbo boosts). But in gold and silver? You're kidding, right? Gold and silver are not "investments", they are MONEY, and simultaneously INSURANCE against the horrific stagflation and economic collapse that currently plagues the entire Western World, at an accelerating rate of speed each day, I might add. Imploding economic data, soaring inflation, the imminent collapse of the Euro, Japanese economic catastrophe, rocketing U.S. debts (not to mention breaching the debt limit), and a dozen other "black swans" threatening to destroy the financial system at any time, etc., etc., etc., to the point that the great Jim Sinclair THIS WEEK stated that a currency crisis could commence any MINUTE… And yet, even distinguished gold "analysts", including one very famous one whom I won't name so as to avoid a conflict, are already attributing this week's decline (actually, gold and silver were very strong until OPERATION POST FED PM/OIL ANNIHILATION on Thursday) to the beginning of summer doldrums, and that we could see more pain until the "seasonal" start kicking in in August. I can't find words to describe my anger at this garbage, which only serves to further the Cartel's attempt to create FEAR in the PM community. I can GUARANTEE that NO ONE, ANYWHERE ON EARTH, sold ANY material amounts of PHYSICAL GOLD AND SILVER in response to the Fed announcement, or to the IEA oil announcement. This was purely a Cartel attack on PAPER gold and silver, and per the charts at the same times of day as always. Not to mention this was a MAJOR CARTEL OFFENSIVE to ensure that the Fed's money-printing announcement would not appear to be gold bullish, just as the SUNDAY NIGHT PAPER SILVER MASSACRE last month, which occurred, not coincidentally, two trading days after a Fed money-printing announcement caused gold and silver to rocket to new ALL-TIME HIGHS! Attributing "seasonality" in gold is as archaic and ridiculous as any concept in the investment world. For example, many "analysts" point to the Diwali festival in India, which occurs each fall, as some type of "catalyst" for gold prices, as Indians tend to buy a lot of jewelry during this period. So JEWELRY DEMAND is now cited as a major catalyst for gold prices, in a market in which INVESTMENT DEMAND accounts for 75%+ of all global buying? Only the retarded/evil World Gold Council and GFMS (Gold) and CPM Group (Silver) are supposed to make such silly projections regarding jewelry, or even industrial demand, in an asset class with 5,000 years of evidence suggesting it is MONEY, NOT an INVESTMENT! But no, we even get our most famous "allies" spouting the same BS as well. Heck, I thought January was supposed to be a great month for gold and silver, right? Not so in the past three years (per my January 17th RANT, "Ya Think Someone Wants PM's to Start Each Year Down?"). It's truly amazing how every year now, the PM sector is destroyed just hours into the year's start, for no apparent reason. Of course, the answer is quite simple, per "Occam's Razor". The goal is to make sure spry, wide-eyed Portfolio Managers do not get any ideas about overweighting Precious Metals, and conversely to severely PUNISH them for doing so. This year, for example (per my "2010 COMEX GOLD MANIPULATION PICTORIAL"), gold and silver had HEROIC ends to 2010 following the "D-DAY" attack on November 9th, closing the year very strongly amid ragingly bullish fundamental factors. Anyhow, my point is that any "analyst" commentaries suggesting that gold trading has a "seasonal" aspect is either stupid, disingenuine, or an outright liar with an agenda. Even if there was some type of seasonal component to Precious Metals in the past, any such factor should be long gone from markets given that investors worldwide continue to gobble up PHYSICAL gold and silver to hedge against the currency debasement, and imminent COLLAPSE that will shortly occur due to the rapid deterioration of economic conditions and simultaneous exponential growth in DEBT. PROTECT YOURSELF NOW, and do it with UNENCUMBERED (no debt), PHYSICAL GOLD AND SILVER, as well as other REAL ITEMS OF VALUE such as food and other life necessities. Time is rapidly running out, and you do not want to be without these vital items when CONFIDENCE in global fiat currencies cracks, which is IMMINENT, and perhaps a lot sooner than you might think. |
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