Gold Price Close Today : 1360.60
Change : -140.40 or -9.35%
Silver Price Close Today : 23.355
Change : -2.967 or -11.27%
Gold Silver Ratio Today : 58.257
Change : 1.233 or 2.16%
Silver Gold Ratio Today : 0.01717
Change : -0.000371 or -2.12%
Platinum Price Close Today : 1424.20
Change : -71.10 or -4.75%
Palladium Price Close Today : 665.85
Change : -42.10 or -5.95%
S&P 500 : 1,552.30
Change : -36.49 or -2.30%
Dow In GOLD$ : $221.81
Change : $ 7.50 or 3.50%
Dow in GOLD oz : 10.730
Change : 0.363 or 3.50%
Dow in SILVER oz : 625.10
Change : 60.36 or 10.69%
Dow Industrial : 14,599.20
Change : -265.86 or -1.79%
US Dollar Index : 82.37
Change : 0.103 or 0.13%
I'm writing Tuesday morning. In the 33 years I've been brokering silver and gold, there are five words I have never before yesterday heard from wholesalers: "We're not selling silver today." At least one major West coast retailer was not selling gold yesterday, and wholesalers well selling "as long as we can get it."
See how thin the physical silver and GOLD PRICE markets really are? By thin is mean that there is very little product in the pipeline. Wholesalers won't take any chances.
The market is backwardated, but the backwardation shows more in availability than in price. A "backwardation" occurs when the price of metals for immediate delivery climbs above the price for future delivery. Normally, the interest and storage cost of carrying metal for future delivery makes futures prices higher, so a backwardation reveals demand for immediate delivery greater than anyone can meet. In this case, you can't buy at ANY price.
It would be easy to draw the WRONG conclusion from the crash in silver and gold, namely, that the bull market has ended and Happy Money Pumping Days Are Here Again. Well, stop the band and think: if that were so, why did the Establishment need to crash silver and gold? Why make such a concerted effort -- SocGen and Deutsche Bank and Goldman Sachs downgrades and FOMC minutes leaked and all the rest -- to knock down silver and gold?
Because they're worried.
Ask yourself this question: if the US had the gold it claims, why did it tell the Germans, when they asked for their gold stored in the US, it would take seven years to return it?
Why? Bureaucratic maze? No airplanes to carry it? Why?
Why did the powers that be need to crash silver and gold? Why?
Go back to the touchstone of fundamentals, the reasons we began buying silver and gold in the first place. Ask if they have changed.
CENTRAL BANKING. Central banks and their fractional reserve banks create money out of thin air: INFLATION. Inflation makes money cheap, which causes bad investments and blows up bubbles, bubbles burst, panic ensure, they paper it over with more Liquidity and more Blarney, and they run the cycle again, stripping all you victims of your capital. Success begets excess.
Has the system changed? Has the monstrous, unimaginable debt burden been removed or written off? Or have they kept on papering it over with Quantitative Easing this and Stimulus that, blowing up another bubble in stocks?
MONETARY DEMAND, the demand for safety from this system, drives all silver and gold bull markets, and nothing else. Until the system changes -- and never mind the bloody raids the Establishment makes on silver and gold -- silver and gold will continue to rise.
THE BULL MARKET HAS NOT ENDED. SILVER and GOLD HAVE NOT TOPPED. The cause has not changed, the effect will not change.
I laugh at people worried about government confiscating their gold and silver. Why would they go to all the trouble to send out their thugs to collect it when all they have to do is manipulae the market down and people WILLINGLY turn in their silver and gold, at bargain prices. Why force them when you can trick them so easily?
The Establishment played this same trick in 1974-1976, driving gold down 47% immediately after ownership was "legalized." They did this in 2006, and I'm pretty sure they did it in 2008.
If the bull market has ended, why will no wholesalers sell silver? Why do retailers refuse to sell gold? Why does US 90% silver coin cost $3.50 over melt?
Yes, SILVER PRICE and GOLD PRICE have been wounded. Yes, it will take some time to recover, but ask yourself this: If you lived in Cyprus, would you rather have (a) electronic euros in a bank that you cannot withdraw, or (b) silver and gold in your hands, even though 20% lower than last week?
The Establishment's goal is to slowly pick your bones clean. Their chief means of bringing you into powerless serfdom is inflation and debt. Their system is breaking down, and silver and gold offer you a key to unlock your chains.
Do I understand the pain of market collapses? As keenly as every one of you, but I keep my eyes on the horizon. That's the only way you can prevent yourself being fooled, to your own destruction.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
10:00am-5:00pm CST, Monday-Friday
© 2013, The Moneychanger. May not be republished in any form, including electronically, without our express permission.
To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.
WARNING AND DISCLAIMER. Be advised and warned:
Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.
NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.
NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.
NOR do I recommend buying gold and silver on margin or with debt.
What DO I recommend? Physical gold and silver coins and bars in your own hands.
One final warning: NEVER insert a 747 Jumbo Jet up your nose. No, I don't.