"In all the excitement over gold, silver has been largely ignored or forgotten. Today, it was the poor man's gold's turn to state a dramatic comeback posting its biggest single-day jump in 15 months. Having now retraced the Fibonacci 38.2% level of the record plunge, it appears $25 is the next target - which is around 50% retracement levels."
- Excerpt from a recent Zero Hedge article, read the full article here:
Eric King: “Jim, what will be the net result of the failure of the paper gold market?”
Sinclair: “It will release the tools of manipulation and allow the physical price of gold to find its own level. It will also lead to a tidal wave of demand for physical gold. The failure of the paper market will be as if you pulled back the curtain from the real condition of gold, which is currently in very short supply.
The bottom line here is the failure of the paper market in gold is going to result in extraordinarily increased demand for the physical metal, and a new record high price as the physical market for gold begins to take its rightful place as the lead price setting mechanism. This will also be the beginning of the end for the gold shorts.”
- Excerpt from a recent King World News interview, read the full interview here:
"In a review of the reasons the gold and silver prices collapsed, Mike Maloney spoke with Chris Martenson of Peak Prosperity.
Dr. Martenson is a scientist at his core. His Ph.D. is from Duke University, and his MBA in Finance was earned at Cornell. For Dr. Martenson, reaching conclusions simply results from the data, and when it comes to gold and silver, the data is shocking.
From the 4,500 tons of missing gold Eric Sprott pointed to in U.S. export figures, to the 300-ton German gold repatriation, the questions of who benefitted from the plummeting prices and how are all answered in this blockbuster video.
Learn how unsophisticated investors got "fleeced," and how this price event and media blitz may go down as one of "the cruelest jokes ever played on the people who get scared away from gold and silver at this moment in history, given where we are."
This is the first time in history in which currencies around the globe are failing simultaneously, as more and more currency is printed, and confidence in this mathematically untenable system under which debt is "money" collapses.
As gold and silver's true values are realized, in the market or by revaluation, we will witness the greatest transfer of wealth ever seen in human history. Episode One of Hidden Secrets of Money, our free series, expands on the big picture view—the cycle of behavior across history revealed as it progresses toward the ultimate resolution."
The COMEX will default in the next week or several weeks and people will be “settled” with Dollars, no more metal will be delivered! So, knowing that “game over” has arrived, they are dumping a massive volume of paper contracts with impunity to push the metals prices as low as possible before the “default”. This way the “shorts” do not have to and will not be “covered” when “supply” cannot be obtained because of “an act of God”. They will be settled in cash (at a profit no less) because these “unforeseen” disruptions in supply. “Who could have seen it coming?” will be the mantra.
I would suspect that banking stress and “bail ins” will also become prevalent globally. The pricing structure” will now push any and all physical sellers away from the markets and the “door” to safety is effectively being shut. Either you own metal or you don’t.
After the closure of the COMEX and LBMA doors there will be no availability and “price” will be meaningless. Your ability to protect yourself is right now for all intents and purposes being eliminated.
- Source Silver Doctors, read the full article here:
Chris Duane of "The Greatest Truth Never Told" released an amazing video breaking down why you should choose silver over gold as your primary investment of Choice.
I am a strong advocate of diversification and believe that you should have a portion of your income divided into both gold and silver, although I strongly lean towards silver as my primary investment.
As explained nicely in this video, silver is not only a monetary metal like gold, but is also an industry metal that is being rapidly consumed and is in just about everything we use in our modern lives.
The reasons to invest in silver are countless. I believe this video does an amazing job at breaking down the pro's and con's of both metals. It is definitely worth 12 minutes of your time.
Last week we laid out the apparent 'blueprint' from the EU Commission for every other country with a banking system in which non-performing loans are soaring. With Mario Draghi's patsy in place at the Cypriot Central Bank, happy to hand over the nation's gold at the beck-and-call of the EU leaders - despite the Cypriot President's disgust at the 'coercion' of the new deal chiding the central bank for "catching the government by surprise," it now seems, as this Cyprus Mail op-ed explains, that the people of this nation are ready for change - real change, , otherwise, "we may wake up one morning and find the country has completely shut down, crushed under the weight of its mounting, unserviceable debts with no banks, businesses or services able to operate."
- Excerpt from a recent Zero Hedge post, read the full post here:
"Late Friday afternoon in New York (April 12, 2013) gold plunged through the critical support level around $1525 level that has held resolutely since the start of this 19 month correction from $1900 in September 2011. In the process of this sudden drop, confidence in gold by long term investors has been badly shaken.
The sad thing is that this late afternoon selloff was an orchestrated event by people wishing to see the gold price lower so that they could cover short positions in the paper gold markets. Proof of this is that London PM fixing on Friday was $1535. Once the London physical market closed, the orchestrated selling in the paper markets gathered momentum. By the close of the Comex paper gold market, gold had dropped $60 in just the last couple of hours on very high volume.
This is not something new. Observers of the gold market have been aware of many other occasions where similar events on a smaller scale have taken place on Friday afternoons. There is little point getting one’s knickers in a knot about this because every short sale in the paper market has to be covered by a corresponding purchase in due course. Thus if people who bought into the selling spree simply hold onto their positions, a short squeeze will eventually develop as the short sellers try to cover their positions, causing the gold price to rise.
Often the physical markets come to the rescue as the lower prices generated by the Friday selloff sparks increased buying in the physical markets, helping to spur the recovery. The result is that the price of gold recovers fairly quickly after a Friday afternoon selloff. The coming week will show whether this happens again this time.
In January this year I published an article indicating that there seemed to be a reasonable chance that the long gold correction was over. That article indicated that if gold dropped below $1636, that the analysis was incorrect and that something else was happening. Gold did drop below $1636 and has continued to decline, proving that the January analysis was faulty.
At that time last January I had assumed that the rise from $1540 to $1790 in 2012 was the first upleg of the new bull market and that the correction to $1636 was the first minor correction of the new bull market. These were incorrect assumptions. The big correction from $1900 in September 2011 was still under way. The low had still to be reached.
In my Keynote speech to the Sydney Gold Symposium in 2011 I had a target of $1480 for the low of the expected correction. Despite several plunges into the low $1500’s, the price never achieved that $1480 target. The low price for Comex was $1523 and the lowest PM fixing was $1531 in late December 2011.
It bothered me from time to time that gold had not achieved my target. Now the late Friday selloff last week has driven the gold price to a closing level of $1477, finally reaching the target of $1480 set 19 months ago. What remains to be seen is whether this target holds and that the bull market resumes. The coming weeks should indicate what is happening.
What we need to look for is a swift recovery to above $1500 and an ongoing strong up-move in a truly impulsive manner. The fundamentals for holding gold are as strong as ever. Gold is an insurance against a range of financial disasters that we don’t need to go into now. You do not cancel your fire insurance when you can see fires burning all around you.
Certainly confidence in gold has been shaken and sentiment indicators are at record lows in some cases. This is exactly what one would expect at a major low in the market after a brutal 19 month correction. The conclusion is that factors are now in place which could support a major low in the gold price."
"Remember that under a fractional reserve banking system only a small percentage of deposits is kept on hand for dispersal to depositors. The rest of the money is loaned out. Not only are many of the loans made by these banks going bad, but the reserve requirement in Euro-system countries is only one percent! If just one euro out of every hundred is withdrawn from banks, the bank reserves would be completely exhausted and the whole system would collapse. Is it any wonder, then, that the EU fears a major bank run and has shipped billions of euros to Cyprus? The elites in the EU and IMF failed to learn their lesson from the popular backlash to these tax proposals, and have openly talked about using Cyprus as a template for future bank bailouts. This raises the prospect of raids on bank accounts, pension funds, and any investments the government can get its hands on. In other words, no one's money is safe in any financial institution in Europe. Bank runs are now a certainty in future crises, as the people realize that they do not really own the money in their accounts. How long before bureaucrat and banker try that here?"