Inventories – Most Unreliable Indicator of All
QUESTION: Martin,
The thing that gets me is when so-called precious metal “experts” say such thing as the silver inventory is very depleted at the COMEX or the gold inventory is very depleted and someone can come in and purchase up all the remaining inventory and then you have a default. come on , really, the seeds they sow. however,
I would like to hear your opinions on some of this. I know you have stated matters that gold is for insurance against a fall of the monetary system , not so much for inflation or the dollar .
Thank you ,
Vince
ANSWER: The COMEX is not the only storage facility. They can move any commodity into “official” storage and move it out. They have used this trick from the 1970s in grains. They can move metals from New York to London to create the impression prices should rise. That is what they did for the Buffet silver manipulations. It is the oldest game in town and it is not restricted to metals. Look at the inventories when gold crashed from 1980. The “official” inventory declined with the price. Gold will rise ONLY when all the markets are lined up. Then capital will move into all sectors of the commodities once again. These people desperate to see metals, create wonderful images that the world will collapse by tomorrow. It just does not work that way. Gold cannot rally until the capital flows begin to shift now that the German elections are done. We are still waiting for the Debt Ceiling issue that should be resolved by early October.
GLOBAL CONSPIRACY
Some readers have asked questions in regard to the popular conspiracy stuff about various notorious groups and why I disagree with such CONSPIRACYtheories. My point is this. IF THEY WERE truly in control, they would NEVER have cared about me. When there is a crisis, I am the one that gets called in. WHY?Because everyone knows I am not part of them. However, the crisis is caused by their attempts to manipulate markets – not the entire world economy.
This is the key point. There is a difference between TRYING to control andBEING in control. They try to control government so they can act freely without prosecution, but their object is to create the risk-less perfect trade where they defeat the business cycle and simply always make money perpetually.
Do they TRY to manipulate markets for quick cash, YES, but do they succeedNO! They blow themselves up every time like clock work. WHY? Because they are operating under the presumption that if you pay everyone off, they can control the outcome. They fail because they paid bribes and try to rig the game so they pay ZERO attention to systemic market risk. They assume like Karl Marx they can defeat the business cycle. NEVER have they succeeded even once.
These people blame me every time because Princeton Economics had actually under contract more than $3 trillion in portfolios for consultation. So they assumed they needed me on their side because they thought if I just said something, I could defeat their best plans. I would announce “they” are back looking to manipulate some market. Yes I stood up and warned they were targeting the yen in March of 1999 and the Japanese locked in their roll to defeat their manipulation. True, they lost more than a billion on that one and hated my guts for it. But it was my job to warn clients just as I warned gold would decline not rally.
I had NO personal accounts and that is why the Feds could NEVER charge me with insider trading or some other nonsense – yet they investigated every angle possible. I had to give up personal investment in order to do my job. I simply did know too much and I would select where companies should locate for the best outcome and restructure borrowings in cross currencies to turn debt into a performing asset. When HSBC was going to take over Republic National Bank, its former chairman came to my office in London to discuss what I thought of Republic. I knew the stock would double in price, but they knew I could also be trusted. I was paid well not to invest personally.
There are conspiracies to manipulate a market for a short-term play. There isABSOLUTELY no conspiracy for long-term objectives that do not produce money right now. They are greedy – not philanthropists. Do they buy governments and stuff people in political positions? Absolutely. They try to rig the game so they do not get prosecuted. That is a long-term plan that way. But they are incapable of rigging the economy because they CANNOT dictate capital flows. They own Obama right down to his socks. They will wipe out Europe and have Germany in their back pocket. Only a moron would consult with someone who can trade on that info pro or con. Smart clients will NEVER allow such a thing. How can they ever be sure my advice is the best or trustworthy if I have positions in what I advise on? IMPOSSIBLE! These politicians are simply BRAIN-DEAD. How can they possibly consult any banker in NYC who is a notorious proprietary trader? Pure stupidity or they turn the other way selling out their country for pieces of silver and scraps of paper. Pure treason at its best.
If they were remotely successful, there would be no crash and burn. Sorry – they too will go down in flames. All the bribes in Christendom will not save their skins.
Buy the Rumor Sell the News
Merkel’s victory was really a signal that the Euro Crisis will not be over and that if anything the current direction of Europe will merely pick up speed downhill. The positive thing for the euro is that perhaps we can now go into hyper-drive to get this Sovereign Debt Crisis in the open. The likelihood of a grand coalition in Germany that will be able to change the German constitution if needed to allow euro bonds to get the crisis really properly fueled stripping Germans of their future is a given is now viable. However, this trashing of the German constitution will be more or less akin to trashing Glass-Steagall. It will not happen overnight but I expect it to gradually come on to the agenda. This will help to set the stage for the next crash.
The markets have not shown any really surge. It is more reminiscent of Buy the Rumor and Sell the News.
US sowed the Seeds of Destruction of the World Economy – Brain-Dead
I have been warning that U.S. Foreign Account Tax Compliance Act is fundamentally destroying the world economy and is shrinking the US ability to expand business internationally. This is becoming wider known as people are just now starting to report the impact. Next year it will turn really bad all because politicians are broke and will destroy the economy before they will ever restrain themselves or reform the monetary system. This is MASSIVELY DEFLATIONARY and historically is how Rome itself committed suicide. This is one reason I said you will PRAY for HYPERINFLATION by the time these people in Washington are thrown out for destroying the global economy. The only way out is for Americans to marry foreigners and resign their citizenship. The days of marrying an American to get in have reversed. Now the number of people resigning their citizenship is at record highs.
Forbes Reveals Study that Gold Does Not Rise During Times of Inflation
Forbes has revealed a study that was published in the Financial Analysts Journal, which examines six different explanations for why gold prices rise and fall. The conclusion is that the assumptions of most investors sold to them by hard-money advocate just do not correlate to the historical data. Gold does not rise during times of inflation, or serve as a hedge against a collapsing dollar. Exhaustive correlations prove those assumptions have been sales-pitches only. Forbes interestingly explained: “The most likely explanation for why gold prices go up is because gold prices are going up.”
The passion behind gold is amazing despite the studies and facts. Any empirical evidence offered is attacked as conspiracy or some other nonsense. Then they slander me saying “I forgot the people who go me out” when it was the Supreme Court ordering the government to explain what they were doing that forced them to end the contempt. I have thanked all of those who supported me. I continued to provide info free. I did not turn my back on my supporters. Yet some of these people are simply mad that I said gold would decline and then accused me that it did because I said so.
The real man smiles in trouble, gathers strength from distress, and grows brave by reflection. The coward frowns and is unhappily with events that go against him, blames everyone else for his failures, cowards in the corner fearing the light of day, and clings to ill-founded concepts never reflecting upon his errors or accepting responsibility.
Gold is a market – trade it like it is and you will make far more money than yelling, screaming, or pontificating. Everything rises and falls. That’s just life. You cannot fix the value of money and then everything else floats. Do that and money cannot be fixed. When gold was money, it rose in value only when the economy crashed and declined in purchasing power with rising inflation, It had to or else it was not money. Today, gold is a commodity and a hedge neither against the dollar or inflation – but the collapse in the systemic monetary system but all tangible assets perform that function. Gold is movable where as real estate is not.