The Golden Truth: "Pictures At An Exhibition" - of a Bull Market in Gold and Silver

Tuesday, May 11, 2010

"Pictures At An Exhibition" - of a Bull Market in Gold and Silver

With complete apologies to Modest Mussorgsky...

(click to enlarge - source: Richard Russell - Dow Theory Letters)

It will take the Government quite some time I'm sure to figure out how JP Morgan has been fraudulently manipulating the silver market with extreme impudence and recklessness. But perhaps the market will extract a lot of pain out the rogue bank before the Government catches up with insight of its own. My best guess is that Dimon will throw his metals trading unit to the wolves and plead ignorance.

In the meantime, the bulls are loose and there's no rush like a gold rush. And here's the sucking sound of physical bullion being drained from the LBMA: CEF to Issue $350 million to Buy Physical Bullion Central Fund Increases Equity Offering to U.S.$376 Million

7 comments:

JoeTuesday, 11 May, 2010
Dave,

Did you see the commentary by Jesse today about a trader he knows? It reminded me of a characterization of WallStreet types he did recently which bears repeating.

"An entire society built around white punks on dopamine, trapped in the infantile stage of development, allocating resources for the many, the arbiters of utility and worth, from Wall Street to the Congress: this is what America has become."
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AnonymousTuesday, 11 May, 2010
Dave - Love the blog. One of the best written and most concise out there.
Quick question - any thoughts on silver bullion longs besides comex? I see that CEF did a secondary today and grabbed some w low premiums, but any other plays? Own slugs of PAAS and SSRI, but when blood is in the streets I'd like to push....
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Dave in DenverTuesday, 11 May, 2010
Joe - LOL. I did see that. He usually emails me when he posts. Actually a lot of those white punks step off the floor and into the bathroom to snort coke. If they did random drug testing on Wall Street, 1/2 the personnel would be fired.

We're in the controlled demolition of Western culture and now it's spinning out of control.
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Dave in DenverTuesday, 11 May, 2010
Hey Anonymous - thanks for the feed - really appreciate it. For pure silver plays I like SVM, Hecla Pfd C (6.5% stock dividend that yields 10% right now), ECU Silver, and SDRG for junior spec play.

You can also CEF's pure silver play, SBT on the Toronto exchange, but it has a bulletin board symbol. Yahoo finance will have the symbol.

Make sure you buy some silver bullion that you keep "under your mattress." I prefer silver eagles and maple leafs over the private label stuff, even though the premiums are higher. silver eagles are extremely hard to counterfeit and they're recognized globally. On a relative scale, the premiums are low right now. Buy a sealed mint box from Tulving if you can afford it.
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HopiumTuesday, 11 May, 2010
Dave you don't like the 1oz bars? Such as Sunshine or Silver-town? I pretty much buy a variety pack if you will, and switch off between eagles, maples as well as the bars.

Great posting as always

http://reason.com/archives/2010/05/07/we-are-out-of-money
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AnonymousTuesday, 11 May, 2010
Dave -
Actually just took delivery from the comex on a mini bar. Damn feels good. Will hide it under my sofa, little will my guests know... Thanks for those hints, will look into. Not as well versed in silver bullion/products compr to gold, and yet perhaps silver will be the cause of comex default....
Thanks again.
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AnonymousTuesday, 11 May, 2010
"Actually a lot of those white punks step off the floor and into the bathroom to snort coke. If they did random drug testing on Wall Street, 1/2 the personnel would be fired."

What they are actually snorting are derivatives of cocaine, not the real deal. In fact, I bet they are massively naked short cocoa leaves and poppy fields.
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.