The Golden Truth: One Last Observation On Thursday's Price Ambush

Saturday, July 3, 2010

One Last Observation On Thursday's Price Ambush

Gold is in a long term bull market. As such, all sell-offs, price pullbacks, secular price corrections and overt, illegal manipulative price attacks, like Thursday's, are to be bought - aggressively. Feel free to take profits on part of your positions on big price rallies only if you have mining shares or paper surrogates (GLD, CEF, GTU, PHYS, etc). Never, I mean NEVER, sell your physical gold/silver holdings until this long term bull has run its course.

On average, bull market cycles last 18-20 years. We are only 9 years into the precious metals bull market cycle. Historically, the most spectacular price gains occur in the latter stages of a bull cycle (think: stocks, 1981 - 2001; housing 1991 - 2007).

Those of you/us who are willing to spend the time learning about, researching, investing in and trading the precious metals market will know what to look for when it is time to sell. Until then, as per Jim Sinclair's perfect advice: "never trade your core 2/3's position, always buy 'fishing line' sell-offs (like Thursday's) and take profits on 'rhino horn' price rallies."

Have a great holiday weekend.

5 comments:

AnonymousSaturday, 03 July, 2010
When the bull market in gold and silver is near its end, do you think we'll see the mania towards gold and silver that we saw with houses? Bullish as I am on PMs, I'm having a hard time visualizing the Reality TV crowd getting on board. In fact, when gold first hit $900, there was a picture in the local paper of people lined up outside a gold store to sell their gold.
ReplyDelete
Replies
Dave in DenverSaturday, 03 July, 2010
Yes. Definitively. As per Jim Dinas circa 2001: because the mining stock and precious metals market is very small, it won't take a lot of capital moving into the sector to push everything up to unimagineable price levels. Pension funds have no exposure to the sector. Imagine what will happen when they move just 5% into the sector. And then the public eventually will want it.

Dines, myself and many others firmly believe that the mania stage of this bull market will be one for the record books.

This biggest problem faced by those in it now is haveing the knowledge, underdstanding and mettle to not get bucked off this bull. The goal of the insider bullion banks is to buck as many people off as possible before the real upside begins.
ReplyDelete
Replies
AnonymousSunday, 04 July, 2010
I have always thought that the first stage of the crisis will be a Middle East War because:

1. It allows repudiation of all the COMEX and LBMA contracts through force majeure and martial law. Also it is easily explainable to the sheep who will agree to it.

2. Martial law also allows the cancellation of the OTC contracts and the introduction of gold sequestration and war frenzy to allow the over riding of normal commercial events.

It won't be until the second or third stage depending on who you read that mania caused by hyper inflation will cause the mass of the public to be involved. This stage of course will be cheer led by our professional bullion banks like JPS and GS who will get let off the first stage by the martial law. jim Sinclair always says that the bullion banks will end up making more money out of this bull than anyone else and I am sure he is right.
http://www.atimes.com/atimes/Middle_East/LG03Ak01.html
ReplyDelete
Replies
Dave in DenverSunday, 04 July, 2010
I think your scenario has a good probability of occurring. The reason Sinclair believes that is because it is very likely that JPM, HSBC et al actually have accumulated a lot of the bullion that has been unloaded by the various Central Banks, including our Fed.

What better way to pull of a huge heist than to do it right in front of everyone and keep the price as low as possible while you're doing it.

"The greatest trick the Devil ever pulled was convincing the world he didn't exist." (Usual Suspects)

Thanks for the link
ReplyDelete
Replies
AnonymousSunday, 04 July, 2010
Just in case you have any doubts about why BP is not paying out in the Gulf you should have a look at the moral fibre of the hand picked people running this Rothschild company.

http://www.dailymail.co.uk/news/article-1291829/Lord-Brownes-male-escort-lover-assists-case-BP.html?ito=feeds-newsxml#ixzz0sgy8YwmK
ReplyDelete
Replies

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.