Gold and silver stumbles. Jim Rickard’s reporting from the Daily Reckoning.
“Gold had its biggest one-day loss in almost three years…Tuesday 10/4/16. The question is why.
There was no shortage of explanations (as usual). The main theme was that the dollar is getting stronger partly due to sterling weakness on new Brexit fears. The market also took the view that a December rate hike is likely (we agree) and higher rates also add to dollar strength.”
Here’s an update on Saturday, February 25, 2017.
Revisited – Gold and Silver Update Tuesday November 10, 2015
As of 11:15AM CST on Tuesday November 10, 2015 the precious metals are still reeling. Silver has sunk to $14.41 per ounce and gold to $1091. Even though the Fed has continually stimulated the market with inflationary measures, the market cries deflation. Profiting from silver or gold in the short-term could be rather difficult…although you never know. However, our long-term outlook remains extremely bullish.
Gold and Silver Update Thursday October 6, 2016
As of 12:05AM CST on Thursday October 6, 2016 the precious metals have stumbled. Silver has sunk to $17.76 per ounce and Gold to $1268. As mentioned last year, our long-term outlook remains extremely bullish.
Gold and Silver Update Friday, December 30, 2016.
On Friday, December 30, 2016 Gold was $1150 per oz. Silver $15.90.
Update: Since the beginning of the 2017…the trend has reversed. Subjective values change…the war on gold and silver will fail. As of Saturday, February 25, 2017 Gold is $1257 per oz. and Silver $18.34. Now that’s what you can call a nice rebound.
Let’s find out what this is all about.
It might seem to you that the idea of paper gold smacks of the ridiculous. Unfortunately, during these times of the Elite and its treacherous economic policies…anything goes.
Ask your spouse or girlfriend to go immediately to her jewelry box and pull out her paper 14K gold-diamond ring…or her paper sterling silver bracelet. I’m sure the ladies think I’m just joking around…or maybe they understand it better than we do. Anyway, this is serious business.
One reason gold plummeted was because of weak hands getting smacked down in the paper gold markets. These markets consist of gold futures and ETFs. Are you familiar with margin and derivatives…such as options?
How about leverage. Maybe you think it’s a good thing…especially if you’re attempting to lift a ton of real gold. However, in the paper gold markets, losses are magnified by the use of leverage. You put up fresh margin money…or face liquidation.
If you’re holding a weak hand…you’re might be forced to dump your positions…quickly. You know what happens once the selling begins. Down, down, down goes the price…selling leads to more selling.
Here’s what you call buying and selling illusions. Of course, there’s people making money from the illusions. Members of the Elite feed on illusions…especially the ones their Soldiers from the Mainstream Press shove down your throat.
The China Connection
According to Jim Richards here’s what London-based gold guru Andrew Aguirre said about the fiasco.
“Close to a staggering 1,000 tonnes of paper gold has been rinsed out in the paper gold markets today… This takedown is a complete joke, and the wholesale market is all over this paper takedown. This is a desperate effort by Western officials to cover massive pre-Brexit short positions put on by their agent bullion banks near the $1,275 level.”
Let’s expose the whole scam. Western officials (Members of the Elite) waited for a Chinese holiday before hammering down on gold-silver prices. And guess who will be back in business? The People’s Bank of China (PBOC). It will buy gold with both hands.
Do you wonder why the Elite seems so gung-ho on China accumulating plenty of Gold? Here’s why. On September 30, the IMF agreed to include the Chinese yuan in its basket of currencies.
The dollar rates as another paper illusion. How long will it take the IMF’s SDRs to kick the dollar to the sidelines?
Another theory about why gold stumbles…is the current strength of the dollar. Come on…let’s get real and determine what’s real…paper promises or bonafide gold and silver. If you answered paper promises…come visit me and I will happily trade you my case of computer paper for 1oz of gold.
In addition, there’s some belief…the Fed will raise the interest rate in December. Consider this. Why not raise the rate before the November election? Because the Elite has a vested interest in dear Hillary winning the election. Trump’s anti-Federal Reserve stance doesn’t sit well with Wall Street…which relies on the Fed’s easy money policies.
Note: The Fed has Trump to deal with…and it did raise the rate in December.
The Reality of Gold…and Silver
Let’s keep it short and sweet. And gold certainly is sweet in its beauty and durability. Don’t allow members of the political and financial establishment to tell you otherwise. These crooks would love to render you defenseless against their predatory monetary policies.
Silver also possesses desirable qualities.
Do you realize gold not only personally makes sense…but it’s also the bedrock of sound money. Pure and simple…the gold standard puts the brakes on government spending…keeping politicians somewhat honest…if that’s possible. It protects the value of your money. It’s an ethical system that hampers the political and financial establishment’s ability to “tinker” with the monetary system. Is it any wonder members of the Elite hate the gold standard.
The Classical Gold Standard
Too many dollars in circulation cause people to wise up to the fact…their paper money is now overvalued in relation to gold. Eventually, they begin converting dollars, francs, marks, yen or whatever into gold. Soon gold begins rapidly flowing out of the treasury.
Do you get the idea? The government (Central Bank) must immediately quit inflating the currency…or risk suffering the probability of holders of the overvalued paper money demanding redemption in gold, eventually depleting the treasury of its gold. Obviously, the prospect of losing your gold and to foreigners or other interests is anathema to the political establishment…which informs you that when its members call gold a barbaric relic they tell “The Big Lie.” Why do we keep electing these sociopaths…dedicated Soldiers of the Elite? Anyway, the only real and honest alternative is not to resort to inflation in the first place…which is an idea that causes dishonest politicians nightmares. Can you imagine the horror of not possessing the power to steal from Peter in order to give to Paul? Plain and simple, inflation is theft.
The above makes a reasoning person realize that currency wars would become history. As long as we accept the paper money standard, vicious wars between nations will be fought in the financial markets. The race to see who can devalue their currency at the fastest pace is a sprint to the bottom of an international monetary collapse.
What the Gold Standard Represents
Here’s a fact for you to digest. The gold standard represents liberty, freedom, prosperity and a sound currency. According to the brilliant economist and praxeologist Ludwig von Mises, “It was the medium of exchange by means of which Western industrialism and Western capital had borne Western civilization into the remotest parts of the earth’s surface, everywhere destroying the fetters of age-old prejudices and superstitions, sowing the seeds of new life and new well-being, freeing minds and souls and creating riches unheard of before.”
Free minds and souls? Now that’s a happy thought. Let’s face it. The Elite and its Soldiers prefer mindless nitwits…members of the Hive Mind Mentality who unwittingly follow them down the hellish path to a dismal place called oblivion.
You’ve probably heard paper money enthusiasts call gold “a barbarous relic” If you believe that nonsense, I’ll be more than happy to take the useless stuff off your hands.
Apparently, members of the Elite think we’ve devolved to ignorant savages who believe paper promises represent more value than gold. Tragically these liberty violators may have hit the nail on the head. How many Americans do you think protect themselves from the voracious appetite of the financial establishment? Members of the Elite have a message for the hapless citizen. “You must be kept dumb.” Talk about insult on top of injury. How in the heck did we allow the evil bastards to take over our once great nation?
If you value your personal liberty and economic freedom, you will support a 100% gold standard. In fact, you may want to expand your consciousness…and consider the concept of “Free Enterprise Banking.” In addition, don’t believe the myth the government protects you from predatory, greedy banksters. Honestly, do you see any indication of their benevolent protection? Yes, the gold standard makes sense, much more sense than fiat money promises.
Let’s get to the bottom line. Members of the Elite fight the gold standard “tooth and nail” because they fervently desire to substitute government omnipotence for your personal liberty and economic freedom.
As you can see gold and silver stands tall. Do you believe anything the Mainstream Press (a Division of the Elite) tells you? An Objectivist Warrior sees through that BS.
RA Meyer – The Objectivist Warrior Masters the Social Maze