The Bottom May Be In! NY Times Hit Piece on Gold

Gold, Long a Secure Investment, Loses Its Luster

http://graphics8.nytimes.com/images/...ticleLarge.jpg

By NATHANIEL POPPER

Published: April 10, 2013




Below the streets of Lower Manhattan, in the vault of the Federal Reserve Bank of New York, the world’s largest trove of gold — half a million bars — has lost about $75 billion of its value. In Fort Knox, Ky., at the United States Bullion Depository, the damage totals $50 billion.

http://graphics8.nytimes.com/images/...icleInline.gif
Falling Fortunes The price of gold has had an extraordinary run up in the last 10 years, creating wealth for investors. But its price has fallen in the last two years.




And in Pocatello, Idaho, the tiny golden treasure of Jon Norstog has dwindled, too. A $29,000 investment that Mr. Norstog made in 2011 is now worth about $17,000, a loss of 42 percent.


“I thought if worst came to worst and the government brought down the world economy, I would still have something that was worth something,” Mr. Norstog, 67, says of his foray into gold.


Gold, pride of Croesus and store of wealth since time immemorial, has turned out to be a very bad investment of late. A mere two years after its price raced to a nominal high, gold is sinking — fast. Its price has fallen 17 percent since late 2011. Wednesday was another bad day for gold: the price of bullion dropped $28 to $1,558 an ounce.


It is a remarkable turnabout for an investment that many have long regarded as one of the safest of all. The decline has been so swift that some Wall Street analysts are declaring the end of a golden age of gold. The stakes are high: the last time the metal went through a patch like this, in the 1980s, its price took 30 years to recover.


What went wrong? The answer, in part, lies in what went right. Analysts say gold is losing its allure after an astonishing 650 percent rally from August 1999 to August 2011. Fast-money hedge fund managers and ordinary savers alike flocked to gold, that haven of havens, when the world economy teetered on the brink in 2009. Now, the worst of the Great Recession has passed. Things are looking up for the economy and, as a result, down for gold. On top of that, concern that the loose monetary policy at Federal Reserve might set off inflation — a prospect that drove investors to gold — have so far proved to be unfounded.


And so Wall Street is growing increasingly bearish on gold, an investment that banks and others had deftly marketed to the masses only a few years ago. On Wednesday, Goldman Sachs became the latest big bank to predict further declines, forecasting that the price of gold would sink to $1,390 within a year, down 11 percent from where it traded on Wednesday. Société Générale of France last week issued a report titled, “The End of the Gold Era,” which said the price should fall to $1,375 by the end of the year and could keep falling for years.


Granted, gold has gone through booms and busts before, including at least two from its peak in 1980, when it traded at $835, to its high in 2011. And anyone who bought gold in 1999 and held on has done far better than the average stock market investor. Even after the recent decline, gold is still up 515 percent.


But for a generation of investors, the golden decade created the illusion that the metal would keep rising forever. The financial industry seized on such hopes to market a growing range of gold investments, making the current downturn in gold felt more widely than previous ones. That triumph of marketing gold was apparent in an April 2011 poll by Gallup, which found that 34 percent of Americans thought that gold was the best long-term investment, more than another other investment category, including real estate and mutual funds.


It is hard to know just how much money ordinary Americans plowed into gold, given the array of investment vehicles, including government-minted coins, publicly traded commodity funds, mining company stocks and physical bullion. But $5 billion that flowed into gold-focused mutual funds in 2009 and 2010, according to Morningstar, helped the funds reach a peak value of $26.3 billion. Since hitting a peak in April 2011, those funds have lost half of their value.


“Gold is very much a psychological market,” said William O’Neill, a co-founder of the research firm Logic Advisors, which told its investors to get out of all gold positions in December after recommending the investment for years. “Unless there is some unforeseen development, I think the market is going lower.”


Gold’s abrupt reversal has also been painful for companies that were cashing in on the gold craze. In the last year, two gold-focused mutual funds were liquidated after years of new fund openings, Morningstar data shows. Perhaps the most famous company to come out of the 2011 gold rush, the retail trading company Goldline, has drastically cut back its advertising on cable television, lowering spending to $3.7 million from $17.8 million in 2010, according to Kantar Media.

More at:

http://www.nytimes.com/2013/04/11/bu...20130411&_r=2&

Anyone who takes economic advice from the NY Times is a de facto moron. This is worse that a hit piece on gold. It is a deceptive screed of misinformation and cherry-picked stats more egregious than the hockey-stick graph used to foist the global warming scam on us.

For example, this sentence is an out and out lie:

And in Pocatello, Idaho, the tiny golden treasure of Jon Norstog has dwindled, too. A $29,000 investment that Mr. Norstog made in 2011 is now worth about $17,000, a loss of 42 percent.

If he bought gold at the absolute top in 2011 he didn't lose 42% using today's spot price, not even close. This is total fabrication. Do the math if you don't believe me.

The premise presented is that the FED is "losing" money on it's gold holdings and gold has no investment future. Fine! So why doesn't the FED sell all that soon-to-be-worthless gold? Ben Shalom already stated on the record that it is not money - that they hold it only for tradition - in other words, it's worthless to a bank. So sell the fucking barbaric relic Ben, sell it! I dare you.

Fuck you Ben. Fuck you NY Times. I wouldn't line my bird cage with your rag of a newspaper.

Folks, don't let these fucking lying bastard presstitutes psych you out of gold. Gold is sitting on a massive long term support line after consolidating for 19 months. Gold is on the launch pad ready for the next leg up, and it will take your breath away. If you are dumb enough to believe that the economy is in recovery and our worst problems are over, then you are either sadly misinformed or just dumb as a bag of hammers.

This one is worse:

"The stakes are high: the last time the metal went through a patch like this, in the 1980s, its price took 30 years to recover. "

In fact, the last time the metal went through a patch like this was March through October 2008, when gold loss one-third of its FRN value, from $1020 to $680. No mention of that in the article, and the subsequent near-tripling in price.

This is the type of nay-saying that is needed to establish a bottom. It won't happen immediately, as there needs to be a period of time where these types of bold proclamations (e.g. Goldman Sachs) look correct. That's just the way it seems to work. I think the bottom happens in July, give or take a month.

I think this short article sums the gold (and silver ) situation just perfectly: the pull-out-all-the-stops efforts to kill gold sentiment by the FED, their minions on Wall Street, and their whores in the press and the MSM have been frankly, way over the top, transparently obvious, and reeking of repressed desperation. What's worse, these bastards are heartless monsters as they would seek to wipe out the wealth of billions to line their own pockets by killing the world's only true money, gold and silver, just as they have tried to kill God. They will fail because the blazing light of truth will fry them and theor lies no matter how deep and dark the corner they hide in. I spit on them every time I buy gold and silver (just the other day as a matter of fact). I don't buy gold and silver to make a profit. I buy gold and silver to reject their lying paper money, to deprive them of any sliver of my labors, and to weaken their Ponzi banking system which will collapse as sure as the Sun will rise tommorrow



What is Going on With Gold?

Author : David Schectman
Published: April 11th, 2013


READ THE FULL NEWSLETTER


Democracy lives over at Uncommon Wisdom. Sean Broderick is very bullish on gold – and you would never know he works for the same firm as Larry Edelson. They both can’t be right. Sean says that this is, “The potential gold-buying opportunity of the decade.” Edelson might agree, but first, he expects gold to drop below $1,400. Broderick points out that central bank reserves added over 15 million troy ounces of gold last year. That’s an increase of 16% to a 48-year high of 532 tons in 2012.

http://cdn.uncommonwisdomdaily.com/m...013-img-01.jpg


Their buying has continued into 2013 and so far, in just the first two months of the year, they have added another 1.9 million troy ounces.
Broderick mentions mining costs are rising rapidly (oil, rubber, labor) and the average break-even point has increased to $1,211 an ounce. That puts a floor beneath gold and it keeps marginal producing properties from coming on line.


Broderick is also big on silver. The U.S. Mint reported that the sale of Silver Eagles topped 15 million ounces in the first quarter. That is the most Eagles ever sold in this time period. Small investors are gobbling it up. But the silver chart may be telling us that the price is about to change:


http://cdn.uncommonwisdomdaily.com/m...013-img-03.jpg


Note the similarities between the May to August 2012 period and the February to April 2013 period.
Broderick says:

Gold could go either way right now. But there are plenty of forces lining up that could send it higher. The major factors affecting gold prices are aligning perfectly to set up gold for a huge rally.

Another reason to be optimistic about gold is because Goldman just came out with their prediction for 2013 and see gold at $1,450/oz. How often do they recommend one thing and privately invest in the opposite direction? More often than I care to remember. And George Soros says gold is no longer a safe haven. So let’s forget about centuries of history that says otherwise and why then are central banks buying gold hand over fist? I view comments by Goldman and Soros as self-serving, and far, far from reality.


I’m sure many of you are wondering, “What the Hell is going on with gold today?” Here is as good an answer as you are likely to find:

Today Jim Sinclair spoke with King World News about the massive and coordinated attack on the gold market. Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this interview.
“Today was a coordinated attack on gold. We had the Goldman Sachs recommendation to short gold. We also had the Federal Reserve Open Market Committee notes quite unusually released before the opening. Then we had the mainstream media focus on the sale of Cyprus gold, and Mrs. Lagarde on the wire telling people everything was fine with the economy.
The market in gold has significantly changed….
Continue reading on KingWorldNews.com

What are they afraid of? I have been involved in the gold and silver markets for 30 years and I have never seen such a concentrated effort to keep gold and silver from moving up.


J.C. Penny recently fired CEO, Ron Johnson. Johnson changed JCPs policy of offering their clients coupons for sales and re-branded the company to “every day low prices.” His marketing change was a total failure.


What we have now in gold and silver is the same “every day low price” philosophy that JCP tried. But in this case, the plan is to dull interest in the precious metals. If prices are “always cheap,” there is little incentive to buy (the physicals). But it is backfiring. Central banks are buying all the physical gold they can get their hands on. (See comments on central bank purchases, above.) Retail customer demand is so great, the mints can’t keep up with the demand. Junk bags of silver coins are nowhere to be found. The US Mint is allocating silver – they can’t keep up with the record demand. Never has the disconnect between paper and physical gold and silver been so strong. Comex is a market for the hedge funds. Physical gold and silver is for people and central banks that want a sound currency in the midst of global currency-devaluation.


Jim Sinclair has it pegged. He calls it “MOPE.” MOPE stands for Management Of Perspective Economics. Read his comments. The MOPE is everywhere; Goldman, IMF, the Fed… and of course the MSM (Main Stream Media) is the chorus singing their tune. Then came the news – Cyprus to sell gold. Of course, it never materialized. A spokesman for the Cyprus Central Bank says the $523 million gold sale was never discussed. The underlying problems must be immense! They are using every trick in the book to hold prices down. Of course, they will fail!

http://blog.milesfranklin.com/what-i...g-on-with-gold

Paul Craig Roberts, a true patriot, tells it like it is:

http://www.youtube.com/watch?v=2RtA0...layer_embedded

You know the asshole bankers are loading up on physical during this manipulated crash.

Quote:

---

Originally Posted by Son-of-Liberty

You know the asshole bankers are loading up on physical during this manipulated crash.

---

I sure as hell hope they are.

How the Gold Market was Crashed

There’s been a recent huge draw down of physical gold at the New York COMEX and at the JP Morgan Chase depository. Look at the physical market draw down on the charts below. It has taken a drastic plunge.

HOUSTON -- we have a problem.

Physical inventory drawdown at JPM


Charts by Nick Laird of www.sharelynx.com

http://goldtrends.net/Resources/Pict...MAPril2013.gif



Physical Drawdown at COMEX


Charts by Nick Laird of www.sharelynx.com



http://goldtrends.net/Resources/Pict...mexApr2013.gif



You can imagine the dilemma this is causing for the market interests behind these inventories. If the inventory runs out and one cannot meet deliveries then it has to be bought on the open market. Not only that but it could cause a run up in prices that would hurt the shorts in the market.

So what to do?

There is only one way out of this for the market controllers would be to devise a plan that would collapse the market and trip up all the stops at the correction lows in gold of 1525 thereby setting off the stop loss orders under this important market low. And what if the plan included a way to stop the physical market from purchasing gold under 1525 while that correction was underway?


And how can that happen?

They have to hatch out a plan and carefully orchestrate it in a series of events that takes the gold market by surprise and force the players out of their positions.

Read on for today’s lesson in market manipulation and allow me to relay my speculation about what transpired last week.

A successful ambush usually involves surprise.

One of the main new weapons in the FEDS arsenal is TRANSPARENCY.

After a lifetime of silence the FED all of a sudden has come out of the closet and has decided that the best thing for the market is to be transparent and to that end they now have televised communication meetings with the general public so chairman Bernanke can explain the FED policy and answer any questions that the market has on its mind as well as the usual minutes that get released to the markets that review the policy decisions and discussion of prior meetings.

Why does the Fed need to explain what they are doing now?

Well it isn’t because everything is going just fine. Put it this way. They must figure when you have 50 million people on food stamps and the Dow Jones is going up a few hundred points a week and making all time highs and you have 16 trillion dollars in debt and interest rates are zero, its best to have a communiqué every month before someone asks you to explain what is going on. It’s called staying ahead of the curve if you will. If you tell them what’s going on it makes it look like you know what you’re doing. Otherwise all we have is the statistics and by themselves they tell you something is wrong, something is terribly wrong. So they have become transparent.

During the last communiqué the chairman made it abundantly clear that QE was here to stay until the unemployment rate reached acceptable levels. This communiqué whether by personal appearance or by releasing the FOMC minutes of the prior meeting is something the FED relies on so market participants can remain comfortable and abreast of Fed monetary policy.

Three strikes and you’re out

The FOMC minutes from the last meeting were due for release during last week. But a funny thing happened. They got released EARLIER than expected. It was all a big mistake and the FED let the SEC and the CFTC know right away that the error had occurred. And lo and behold even with all its transparency there happened to be some language we didn’t get updated on until the FOMC minutes were released. The notes say that several members have been discussing cutting back on the stimulus. That was strike one. It got the gold market thinking that stimulus cuts might be coming.

Strike one

Surprise number two

Then a bombshell was released from news sources. It was reported that Cyprus would have to sell 400 million Euro’s of gold as part of the bailout package of raising money for their failed banking system. Gold prices came down to 1550 on the news and the day passed by. Even though Cyprus bankers tell us the next day that they didn't discuss selling any gold, market jitters seemed to remain and Friday was just around the corner. This was strike two.

Now we need a strike three and you’re out. Gold is a nervous market to begin with as a lot of people have already lost a lot of money in the last six months.
With Gold at 1550, all that is needed for the market to drop is to get one more push where all the stops are (just below the 2 year low of 1525).

The selling began in the Friday sessions overseas. By time we got to the New York COMEX gold open, the price was down to 1542. Now all the players are there and the volume and liquidity is there to create the final blow to the market.

And then the attack began. Wave after wave of selling until gold got to 1525. Then they break down the price below the two year low and all the stops that have been accumulating there start getting tripped up and the selling accelerates as it begins to feed on itself. The physical market for gold sees this as a gift and gets ready to make their move and buy up the gold.

Now comes the part that is pure genius or a total coincidental thing that just so happens to be a gift to those who are short the market and those who would be responsible to deliver gold should the inventory deplete.

ALL OF A SUDDEN THE LONDON PHYSICAL PLATFORM THAT BUYS AND SELLS PHYSICAL GOLD GETS LOCKED UP. THE SYSTEM FREEZES.

The screens all freeze.

What does that mean?

No one can get to the physical market to buy at these low prices but at the same time, they can’t sell or protect their position either. The system is frozen. Yes, just like at Bit-coin. The system locks up. And of course the results are going to be the same, just on a lower percentage level.

What can the physical holders do?

Meanwhile the futures market continues to drop.

So what happens? The physical market holders begin to panic. How can they protect themselves as they can’t sell either?

What would I do if I were in that situation?

There is only one solution, especially during a panic. Short and ask questions later.

Therefore it is my speculation that based on 350,000 contracts sold on Friday and the massive drop, some of those contracts was the physical market having no choice but to enter into the futures markets and in order to hedge their physical position holdings, sell contracts or short the market. It’s either that or wait until Monday and be subject to potentially heavy losses should margin calls go out over the weekend. With no time to think and survival instinct kicking in, the physical holders most likely did what they could to protect themselves. They went in and shorted the futures market.

From there the market goes into a free fall as the physical market can’t buy at these low prices because the computer system is down; they can only sell futures to hedge their long physical holdings and so they do what they have to and begin selling futures.

Now it gets worse. As the price drops even more, underfunded players are getting wiped out and now they begin to liquidate. The market goes into a total collapse as all the stops below 1500 get tripped up and the market tanks to 1490.

The market finally closes in New York and returns to the 1500 area.

But it’s not over. There's another situation going on. The weekend is arriving and players begin wondering about margin calls? How are holders going to get money to their brokers over the weekend for the Monday trade session?
But there is not enough liquidity as the COMEX has closed and only the aftermarket GLOBEX is there to execute trades.

But guess what folks?

The banks and brokers are open all weekend and as long as it takes to go through all the accounts and issue all the MARGIN calls.

If they get the margin calls out by Saturday, the customers have 24 hours to get more money to their brokers. If the money is not received by Sunday night or Monday morning, the positions will have to be liquidated, just when the market is at its lowest liquidity and the longs have had all weekend to think about it and the media has had time to tell everyone that the bull market in gold is over.

Not only that but the shorts know exactly what is about to transpire.

I hope you got the picture on how the control boyz forced a major sell off. I speculate the panic over low gold inventory had someone hatch a plan to save their accounts and a lot that is at stake.

They started with leaked information with explosive potential changes in USA policy, and then they published information that Europe/Cyprus would have to sell 400 million Euro's of physical gold. Finally once the sell off began the physical gold market platform in London locks up and no one has buy or sell access in the physical spot market.

As the market players begin to work this out in their mind there is only one thing left to do. Try and exit and get out in the Globex market. So the selling begins again. The market hits below 1500 and then 1490 get broken. The market sells as much as it can up until the very last minute of trade at 5PM New York time. Even then it’s not over. For some reason the volume and the price keeps moving. Was there special consideration going on for those connected who wanted out? I don't know. But at 5:07 PM Eastern standard time the market closes at 352,248 contracts and a price of 1476.10 down a whopping 5.67% -88.80 dollars.

Did the control boys lock down the physical market platform or was it pure coincidence? Either way they have total plausible deniability. HOW?

The computer system went down. It couldn’t handle the traffic and it shut down or a glitch happened in the server. It can be any one of many reasons.

This exact same thing happened during the last take down of gold in late December 2011.

VOILA. The perfect excuse and the perfect scenario.

The physical markets couldn’t buy at those low prices.
Let me repeat that. The physical markets couldn’t buy. They could only sell futures to hedge their physical gold positions.

Of course this will all be reported on the news and in the financials right?

Wrong.

None of it will be reported as none of it was reported on Dec 29th, 2011 when the control boyz did the same thing and locked out the computer and left the physical market holding the bag. Not one word hit the papers.

Most people are not even aware that the physical market is run by computers. They have never considered or thought about how the physical market works and executes. Guess what folks? It works the same way as Futures via computers and programs.

How do you think it works? Did you think that people show up with all their gold at an auction house and buying and bidding goes on with a mediator who can speak two hundred words a minute and gold is auctioned off like rugs or art?

No it runs off a computer system.

How do I know all of this happened today?

Because I was in direct contact with a big physical dealer out of the mid-east as it was happening. They have taken the time to explain the physical market and how they get SHUT out of the game --- just like they did during the last panic (and physical shortage) in Dec of 2011.

Here is the screen shot of the actual physical market in action from January 4th 2012 that the physical trader sent me.


http://goldtrends.net/Resources/Pict...e/PLATFORM.gif

That completes our lesson for today on how to force a major sell off. You start the ball rolling with disinformation and early leaks and surprise with potential policy change considerations at the Federal Reserve level and you follow it up with a potential huge gold supply story that could come to the market.

You've shaken up the market and the selling begins and gets to within 20 dollars of two year lows where all the stops are and then you bring it down to where all the stops start getting tripped up and you just sit back and watch the market do the rest. Finally, you shut off the physical system and stop gold buying and at the same time you force physical dealers to sell the futures to hedge themselves.

There's even a term for this in the trading world. It's called "Beat the Beehive." You smash the nest and then watch the total confusion feed on itself. By the next day all the bees are gone and all that's left is a smashed up beehive.

There has been a lot of speculation on the markets and manipulation that is going on. What I've offered in this report using the fact that gold crashed on Friday is a scenario on how it could have been orchestrated. I leave it to the reader to pass judgment on the potential.

At 8:33 AM Friday morning with gold just beginning to trade, GoldTrends listed a potential for $1490 on twitter if $1525 was taken out. Here is the chart of the COMEX session. Note the low. That blue channel line was what we based our projection potential on. The rest as they say is history.


http://goldtrends.net/Resources/Pict...2AprIntra1.gif

What Next?

I will be assessing the damage over the weekend.

If there really is a shortage then there will be clues that should show up that should show up in the physical markets. We will be on the watch for them if they develop. If we see these clues we will advise subscribers as they develop. The last system lock out was on December 29, 2011. The clues showed up then and a 270 dollar rally took place from 1525 to 1795 by February 29th. Interestingly on Feb 29th, gold fell 100 dollars an ounce on a Bernanke announcement that the Fed was considering slowing down on QE.

Let me say this. IF the Feds were to slow down on QE the entire system would collapse in a major deflationary spiral. In a speech two months ago at a college Mr. Bernanke admitted that the FED always tries to "talk" control or what they want to see happen. When that doesn't work they expand to other more important methods of policy.

There are only two things that can bring gold down. A manipulated event like we just saw or a liquidity squeeze like we saw in 2008 where an immediate need for cash forced the liquidation of all assets. Can it happen again? Yes, but this time it would be on a global scale and much more powerful than the Lehman crisis of 2008. While many think a sovereign default would create an inflationary spiral, it’s the opposite could happen. A default would result in liquidation and 99 cents out of every dollar in the banking system has been lent out. The need for cold hard cash would be enormous and the only way to get it to avoid leverage margin calls would be to sell assets at a low enough price to attract immediate cash. That is what happened in 2008. With one penny in banks and 99 cents of debt a spiral the other way could develop.

But you say the FEDS could print the money. Would they have time?

Once a deflationary collapse takes place, then a HYPER INFLATIONARY event can take place. But this is all for another report.

Stay tuned as it's probably going to get real interesting.

We are now at a critical juncture in gold’s 21st century bull market. At www.GoldTrends.net we monitor the price patterns on an hourly, daily, weekly and monthly basis. We offer commentary on what it all means along with support and resistance levels along the way in advance of each day’s trade. If you would like to join us for 30 days we offer a free trial. Visit our website home page for details. We’d like you to join us and try us out.


May you all prosper,
Bill Downey



Bill Downey
http://www.goldtrends.net/

Yep, the Perception Management is everywhere.

e.g., writers like Barry Ritholtz -
http://www.ritholtz.com/blog/

Ritholtz says, Gold is in a Bear Market -
http://www.ritholtz.com/blog/wp-cont...0412215103.jpg

but not a peep about how the Gold price was manipulated into bear-market territory.


Ritholtz believes in the Free Market Theory, not Conspiracy Facts.

The self-appointed masters of the universe may have lit the fuse on the gold and silver market with this paper price smash. According to this dealer, demand for physical has exploded. Of course, we note the source, permabull KWN. You be the judge:

Haynes - Gold & Silver Buyers Outpacing Sellers 50 to 1


Today 41-year market veteran Bill Haynes warned King World News that we are already already on the verge of seeing major shortages of available retail bullion products. Haynes also said gold and silver buyers are outpacing sellers by a stunning margin, and he is now seeing premiums on physical products that haven’t been seen in decades. Below is what Haynes had to say in this extraordinary interview.


Haynes: “Eric, last week we sold more gold and silver than we normally sell in a whole month. On Friday alone it was astounding because we sold as much physical bullion as we would normally sell in an entire week. There is a great deal of big money coming into the market on this decline.

If buying continues at the rate we saw on Friday, there will be immediate shortages of product....


“We will see instant shortages of silver products such as silver rounds, 10 ounce bars, 100 ounce bars, silver eagles, and silver maple leafs if this relentless demand continues. Silver eagles and silver maple leafs are already seeing delayed delivery.

In other words, the mints can’t keep up with the demand for those coins. The US Mint could easily have another record year of 40+ million ounces of American Silver Eagle sales. I would also add that there are already premiums on 90% silver coins that we haven’t seen in decades.

But the buying is coming in huge for both gold and silver. The physical gold market is on fire as well. Our largest 7-figure order this week was specifically for one ounce gold bars. There was also big buying of American Gold Eagles. This massive buying is taking place in the entire metals industry right now.

This is why I cannot stress to you enough that we will see immediate shortages of product if this continues. If another ‘Black Swan’ happens I can promise you we will see immediate shortages of gold products as well.”

Eric King: “Bill, does this remind you of what we saw in 2008/2009 when there was an orchestrated smash in gold and silver? As you know there were massive shortages of product when central planners organized that takedown in both metals. The shortages were taking place all over the world at that time.

If you remember, Bill, I got permission from the government of Dubai to interview Ian MacDonald who was in charge of running the entire gold and commodity operations in Dubai or what people call the ‘City of Gold.’ Demand was incredibly relentless at that time. He told me buyers were outpacing sellers by a remarkable 99 to 1.

Ian told me that as the takedown in gold and silver was occurring in 2008/2009 that he was getting calls from New York all day, every day. Guess who was calling him? Bankers from New York. The bankers from New York had only one question: “Who is doing all of the physical buying?” Ian told them, “It’s people from all over the world trading in their fiat money for real money.”

Ian knew there was concern because the West had been sending him gold from central bank vaults for years, but at that time he told me he was getting the strangest ‘scrap’ gold from the Western central bank vaults in the form of old coins. He said it looked to him like they were at the back of some of the vaults getting whatever scrap was left to ship to him in order to fill the massive demand for gold that was taking place. Dubai would then melt this gold down and ship it all over the world, including places like India, the Middle-East, and Far-East.”

Haynes: “We could be looking at the beginning stages of that type of situation. If prices head even lower we will continue to see an explosion of buying. Every time gold and silver tick lower big money comes in to the market, and it is coming in from different buyers.

Eric, we are entering another phase such as 2008/2009 where the physical buyers are going to have a major impact on both of these markets. The physical market is on fire and it will become an inferno if the central planners continue to artificially push prices lower.

Buyers are already outpacing sellers by a stunning 50 to 1 ratio. We are seeing the beginning of shortages, but this will only accelerate if Western governments continue with this raid on gold and silver.”



http://kingworldnews.com/kingworldne...Shortages.html

made a couple calls. Want to make a large purchase. Inventories are down, but process of 're-stocking' the shelves is happening. No shortage current. Just due to high demand, shelves got zapped. Personally am waiting for short cover rally to fizzle out and see what happenes. You all think after putting everyone underwater who bought since late 2010, they gonna bring them back up ? or make them suffer a bit more ? My long term price target to buy phys was 24.05, it got smoked and yet I wait.

Personally, I expect that since a whole trainload of longs got wiped out due to margin calls that the price will soon turn sharply to the upside to wipe out the margin shorts as well, bankers rape from the ass end as well as the front.

i don't think these hit pieces are a flash-in-the-pan.

they're going to be printing this BS probably for the rest of the year.

well, probably, forever.


one place i found where you can get market price quotes without dealing with Yahoo/ Bloomberg/ Barry Ritholtz BullShit is the left-over financial charts website from Michael Ruppert's old website.

they never took it down, it has a good summary of currency markets, metal markets, stock markets, etc.

http://www.fromthewilderness.com/live_charts.shtml

and for Dr. Copper

http://www.kitcometals.com/

I think the public run on silver is very real and very durable. I don't think that the suppliers will be able to get in front of this demand unless the silver paper price turns much higher - and the bankers will not let that happen. People should keep the pressure on by placing orders for silver, even if delivery is not for 4-8 weeks. There is blood in the water, banker blood; this means that this paper silver price is a gift from the gods - because we are amidst a major silver physical supply squeeze with no advent of increasing supply coming on line any time soon.

As for gold, the fate of gold is now in the hands of the big money people. It now appears certain that a run on the gold bullion banks is in progress. This is the very thing that will cause a default at COMEX and LBMA and send the gold price into the stratosphere. Silver will follow gold. This is really big and again, there is no escape for the bankers who are short thousands of tons of gold that they leased and sold illicitly for years. Jim Willie, via industry contacts, had asserted this was the case for several years. It appears he has been vindicated.


From KWN: Today whistleblower Andrew Maguire spoke with King World News, providing even more details by elaborating on the events surrounding the LBMA default. Maguire, who recently appeared in the extraordinary CBC production titled, “The Secret World of Gold,” also told KWN about the ensuing panic which has taken place in the aftermath of the LBMA default. Maguire described entities as “panicking.” Below is what Maguire had to say in part II of his remarkable and exclusive interview.

Eric King: “Inside that piece (“The Secret World of Gold”) you talked about gold leasing and the mechanics of that. Jim Sinclair wanted me to bring that up to you, the gold leasing, the mechanics of it, can you talk about that?”

Maguire: “We did a piece on King World News about it, about the LBMA bullion bank default. Stepping back, how did they get to such a mismatched (trading) position where they had so little gold and silver in their inventory to be able to back up people coming and asking for their gold and silver? They never anticipated that this would happen....

“But what had happened was, over the years, basically what you would do is you would sell gold, sell silver, financed almost for nothing, take that money and invest it. Then, obviously incentive was there because it had built up to such a large (short) position, they were so over-collateralized, that it was important to defend the price (of gold and silver) from rising because they didn’t actually have the physical.

What’s happened now is they are in a position where that leased gold is being asked for and they don’t have it. I know of a very large client who actually turned up for his bullion, was refused his bullion, and told he would be settled in cash. I felt I should go public with that (on KWN).

...(ABN AMRO) really was the tip of the iceberg. What happened was that we saw that first bullion bank create the first visible default of the LBMA fractional reserve system. I hear of other clients who are now panicking, and what happens? You get an official intervention. That what it (the takedown in gold and silver) was all about.”

Eric King: “Andrew, you were getting contacted by people all over the world after KWN did the interview with you regarding the LBMA default situation.”

Maguire: “I must say I had some really distressed emails. What they were asking is, ‘What should I do?’ All I could say to them is, ‘If I had physical stored in any bullion bank related warehouse, whether it be COMEX or LBMA, I would remove it right now.’

We all know that ‘default’ will not be called a ‘default.’ It will be settled with cash. I do not believe for a minute that the Fed can’t print a few billion (dollars), whatever it costs, to bailout the bullion banks for cash. Why wouldn’t they just bail them out with cash? It’s just an electronic keystroke. People will be sitting on the sidelines and they will not get any physical (gold).”

Maguire also added: “It’s been several years since I’ve taken any delivery from the COMEX, or any of my clients have. But I do remember on those prior occasions it was already difficult to get your physical out.

Arranging to actually have the audacity to back up a Brinks truck to the COMEX warehouse door, it just incurred every defensive tactic you can imagine. There were unreturned phone calls. There were questions as to, ‘Why do you want this physical?’

That was a few years ago, so just imagine how many more obstacles there are now. And obviously we are at the point of a critical default unfolding, so I would think think it’s going to be difficult to get your physical out now.”



KWN-
"As Russia, or China, why not just pick it (gold) up and ship it over? It’s quicker (than mining it). So you’ve reached a point where the lines cross, and the physical market diverges. I have checked the numbers now and we are very close to 1,000 tons of deliveries just this year into Shanghai.

That does not account for the 25 tons we are seeing everyday through London. And that does not account for what is being directly purchased through producers. So there comes a point where you get such a discount that this demand increases exponentially. And we are not just seeing the central banks and the sovereigns coming in, we are also seeing some very smart money, I’m talking investment money, coming in (to the gold market as well).

So for them (the central planners) to try to continue to take this (market) down, I think the lines have crossed to the point where they are not going to be able to actually suck out enough paper discount to offset what they are losing in physical.”

Quote:

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Originally Posted by Sparky

...
This is the type of nay-saying that is needed to establish a bottom. It won't happen immediately, as there needs to be a period of time where these types of bold proclamations (e.g. Goldman Sachs) look correct. That's just the way it seems to work. I think the bottom happens in July, give or take a month.

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Important follow-up to this today, as Goldman has announced they have closed their short positions. Let me give you an interpretation of their statement, in two parts.

'We have closed our recommendation to short COMEX Gold, as prices moved above the stop at $1,400/toz. We have exited the trade significantly below our original target of $1,450/toz, for a potential gain of 10.4%. The move since initiation was surprisingly rapid, likely exacerbated by the break of well-flagged technical support levels."

This part of the statement is Goldman telling everyone they were right, and that we should listen to them when they speak. As I said previously, when they make a call like this, it's very important that they look right, which this statement is verifying. Now for the second part:

"Our bias is to expect further declines in gold prices on the combination of continued ETF outflows as conviction in holding gold continues to wane as well as our economists’ forecast for a reacceleration in US growth later this year."

This part of the statement is telling others to continue to sell their gold position, so that Goldman can begin accumulating a long gold position at artificially low prices. Again, they need to look correct for a while. This is very consistent with my expectation that we won't see the consolidation bottom for another month or two. Once they have accumulated a low-priced base, they will be willing to drive the momentum upward if full force.

Remember, all markets are manipulated in four stages:

1) Slow accumulation at low price and low volumes
2) Price mark-up on high volume
3) Slow distribution at high price on low volumes
4) Price mark-down on high volume

Stage #3 took place over the long period from September 2011 to March 2013. Stage #4 is furious, and has taken place this last few weeks. With the announcement by Goldman, they are returning to Stage #1. They want to begin the accumulation phase as quietly as possible before price turns upward.