Wednesday, December 31, 2014

The Age of (Un)Reason

I wanted to get a snapshot of this article because it truly represents where the banking cabal has brought us:

From Zerohedge:

Hugh Hendry Embraces The Central-Planning Matrix: "I Am Taking The Blue Pills Now"

Hugh Hendry's Eclectica Fund has had a great Q4 (up 3.3%, 4.0%, and 5.0% in the last 3 months) despite portfolio risk being quadruple his 'old normal'. How did he achieve this? He begins... "There are times when an investor has no choice but to behave as though he believes in things that don't necessarily exist. For us, that means being willing to be long risk assets in the full knowledge of two things: that those assets may have no qualitative support; and second, that this is all going to end painfully. The good news is that mankind clearly has the ability to suspend rational judgment long and often... He who hangs on to truth has lost. The economic truth of today no longer offers me much solace; I am taking the blue pills now."

Friday, December 12, 2014

Tuesday, December 9, 2014

Silver Skeptic--Today Only

I haven't posted a chart of silver in a while because, well, why? But I'm going to today  because seeing $17 silver is oh so nice. Even if it's temporary. Still many calls for $10 silver. but when this turns, no one will be prepared.

Are we in the turning now? Now that the most ardent metals bulls have gone bearish? That is how it works....

I encourage everyone to read the Paul Mylchreest report below. When the Nikkei/Short gold trade unwinds it will be something to behold!

Monday, December 8, 2014

Are the Saudis Attacking US Shale Companies

I keep reading and hearing that the Saudis are intentionally "lowering" the price of oil to crush the US shale companies.

Please refer to the chart below.

When you bring that much product online, what do you think is going to happen to the price?

No, the Saudis are not intentionally going after the US companies. Will they benefit if US shale companies go under? Sure. Are they enjoying this? I would imagine they have mixed opinions, as do the Russians.

Friday, December 5, 2014

Important Developments in Gold and Silver

I'm still digesting this report by Paul Mylchreest but this has to be one of the most profound reports I've read in years.

From Zerohedge:

From Paul Mylchreest of ADM Investor Service International

Long Nikkei/Short Gold: Profitable, dangerous and missed by everybody?

Has the market completely missed a huge long/short trade which has helped to drive up the Nikkei and drive down the gold price for more than 2 years? One that puts risk-taking and leveraged speculation by our industry in an unfavourable light again.

Alternatively, what if somebody knew that the gold price was being pushed down on the back of a leveraged short trade rather than on fundamentals? Might they gradually build up a long position in silver on the basis that the weakness in the gold price was not sustainable?

We don’t know but…

The much smaller size of the silver market, limited above-ground silver inventory, and stretched level of the gold/silver ratio, means that a major reversal in the gold price would have a disproportionate impact on the silver price.

Silver is unique as it is both a monetary metal and an industrial metal. Unlike gold, there are limited above-ground stocks of silver because so much has been consumed in industrial applications. As stated earlier, the official estimate for the world gold stock is 177,200 tonnes, or 5.7 billion oz.

Nobody knows the level of above-ground silver stocks, although the majority of estimates are in the 1.0-2.0bn oz. range, i.e. between 17-35% of the comparable figure for gold.

Monday, December 1, 2014

Gold and Silver! You Confuse Me So!!!

Who could have expected a day like today? What in the world is going on?

Hard to say but if I had to guess I would say that the “insiders” already know that deflation is well upon us and will be addressed accordingly (more QE).

When the market crashed in 2008 and wiped out a bunch of bad debt (actually the Fed just bought it) the Fed threw $1 Trillion at the markets and “reflated” them (by continuously throwing money at them). But it didn’t really work. They “painted” the tape.

Ever since 2008 the trading volumes on the Dow and S&P have dried up and withered away. But yet the market has risen? That means people have been paying a premium for the Dow/S&P. Insiders are borrowing money and using company profits to buy their shares back and selling their own shares for a fat profit.

Also, the banks have been using their own customer’s deposits to speculate in the market.

Well had those things not taken place the markets surely would have crashed. Looking back at 2008, shortly after the crash the gold market rebounded very quickly. If this stealth deflation has already happened and has been hidden while silver and gold have crashed as if 2008 happened again, it would make sense that they would rebound when no one would expect them to.

Bull markets usually leave the plebes behind. As they wallow in fear and doubt they lack the courage and conviction of their own shallow beliefs because they let others (MSM) dictate their thoughts to them.

As Rick Rule says, "Your greatest enemy is to the left of your right ear and to the right of your left ear."