Gold & Silver Attached to Upside Down Rocket- No Major Upswing before Dollar Collapse
The Unhived Mind
Marshall Swing: Gold & Silver Attached to Upside Down Rocket- No Major Upswing before Dollar Collapse
Posted on September 18, 2014 by The Doc 32 Comments 4,939 views
http://www.silverdoctors.com/marshall-swing-gold-silver-attached-to-upside-down-rocket-no-major-upswing-before-dollar-collapse/
Silver and gold have an upside down rocket attached to them and they have been speeding downwards ever since they made their highs in 2011 and 2012, respectively.
Never mind the fact they are spoken for and used up as soon as they hit the market, never mind the fact they are hard to amass in great quantity, never mind the fact demand is high and production is steady.
What happens next is like the final act of a masterful play.
Look for this depressing scenario in the precious metals markets to continue for another 12 months and then, WHAM!!, worldwide economic collapse- the commercials crash silver and gold, flip their short positions to long cashing in near the bottom and stripping massive amounts of money away from the little people in the process (they always do).
I fully expect there to be some ups and downs before that worldwide economic crash.
I use no caution whatsoever in urging everyone to liquidate as much paper as possible and buy physical silver and gold at these prices.
Yes, the depression is going to last another year but after that no one will be able to buy ANY PHYSICAL once the world wide collapse is in full swing.
Submitted by Marshall Swing:
Time has a way of easing pain whether it is one’s love life gone wrong or financial life gone wrong. I want to encourage anyone who is holding silver bought in the $30s or $40s not to sell, if you can stand the pressure. The reason is the principles upon which you bought are unchanged, unless you were stacking to make a quick buck (or playing the paper game and held onto longs you should have sold long ago). Okay, so the part in parentheses is not encouraging! No one should ever buy precious metal after reading the hoopla of commentators that constantly say metal is going to the moon.
Unless you are buying gold for a ring and jewelry for your wife or silver for your table, gold teeth, or bullion, it is the long term story that is attractive to metal investors and that is they see the clouds on the horizon, they have done their research, they know how much gold there is in the ground, they have read SRSrocco and know all about diminishing ore grades, and are confident in their decision to buy at a price they can afford to watch go up or down because up and down the price will go.
But, the day of reckoning is coming!
Silver and gold are the two most manipulated things on the planet (except for people who watch TV) and anyone with only one eye and a calculator can see that. They are not out there stockpiling right and left as price slowly drops down. No, silver and gold have an upside down rocket attached to them and they have been speeding downwards ever since they made their highs in 2011 and 2012, respectively.
Never mind the fact they are spoken for and used up as soon as they hit the market, never mind the fact they are hard to amass in great quantity, never mind the fact demand is high and production is steady.
I had a long conversation with someone I admire greatly, recently, and when I told him that demand and supply had no angle or presence in the silver and gold futures price markets, he literally was ready to pronounce me an idiot. I told him, “go to corn”, that is pretty stable, just plan on drought for higher prices and lots of rain for lower prices, or something like that. Pretty easy market! He was livid. The very idea that price is not controlled by supply and demand infuriated him and I was afraid a stroke or heart attack were on the way.
Most people in this world want to believe that what they see on TV, particularly in the financial news, is above board, kosher, and as solid, filling, and wholesome as mom’s homemade apple pie.
They want to believe when silver and gold price go down that no one is getting married anymore, Indians are not buying jewelry anymore, that people are not getting cavities anymore so silver and mercury prices are dropping, that no one is interested in American Eagles, that the economy must be so bad that no one is building anything electric or electronic and silver is stockpiled by the million metric tons in warehouses all over the world, and countries are not buying gold anymore.
They want to believe all is right, or at least the same status quo, with the world.
They want to believe ISIS is merely a backyard Sunni creation that evolved from a mud puddle and sprung up because there are great rains in Iraq and money grows on trees over there to fund war at its ugliest. They have no interest in the possibility that ISIS could be a CIA/Mossad creation and they turn red with anger when you suggest the downing of the Twin Towers on 911 was not as we all watched on TV and no they never heard about WTC7 the third tower that fell in the late afternoon that day and NO they do not want to hear about it now.
There is a premium on Truth and those who are determined to tell it can pay a very high price.
Ridicule is everywhere for Truth tellers when the truth does not fit the norm.
Speaking of ridicule, I noticed some unusually complimentary comments on my article last week and I see some are awake and listening with an open ear. I don’t ask anyone to believe I preach the gospel on silver and gold. Time is the proof of the pudding and will determine if what I say is the gospel, or not.
As far as what I say, I got it right several years ago after silver reached its high and I have rode this wave of ridicule right down to the teens where I said it would go. But, that is just half the gospel, not the whole gospel…
What I have been saying happens next is like the final act of a masterful play.
The basic story line is we keep playing this depressing scenario for another 12 months and then, WHAM!!, worldwide economic collapse, the commercials crash silver and gold, flip their short positions to long cashing in near the bottom and stripping massive amounts of money away from the little people in the process (they always do).
I fully expect there to be some ups and downs before that worldwide economic crash. Take a look at the 2 year charts I included on silver and gold, chart back 1 year, and use your imagination.
Is gold going to $2,000 by the end of the year as some have suggested? I think not.
Could it? Yes, but only if there is a major, MAJOR, world event to strike fear in the hearts of everyone who has cash to put into the paper casino. The FED might raise some interest rates but capital flows are not going to be bound by interest rates. That might change where the capital flows, a little, but in the great scheme of things the capital still exists. I do not see a great war breaking out with Russia over the Ukraine. I do not see some great affect caused by a bunch of nations gathering together to bomb ISIS. I do not see a great affect even if 100,000 die from Ebola. The one thing that could create a huge rise in metal price is another stunning event like 911 but I do not think the world elite powers that be are interested in that happening. It is my opinion that terror is engineered and they have achieved their desired goal, namely the ability to marshal the military forces of the West and most of the middle East against a band of well funded Sunni radicals, or so they say that is who ISIS is.
What I think they want is people to lose all faith and confidence in gold and silver as physical investment metal bullion, sell it, and put their faith in the paper game and into government thereby giving government all the power it so richly craves.
Simple!
In silver, we see a broad slowing down of open interest total’s changes this first period after the Labor Day weekend. There is 2,974 new contracts and we can see almost all of that on the aggregated report. Price is hardly changed in a week but since the COT period it has declined at a slightly steeper pace. Volume is pretty thin since the COT week as well. It appears to me, the large speculators are figuring out no matter how many new short positions they take they cannot force a price fall to reap the covering of shorts. That is because the commercials control the puppet on strings from above and below the spot price.
In gold, we see almost 13,000 new contracts total open interest. Large speculator short gains slightly outweigh their long additions but notice the long number in the commercials – they pick up longs at a pace of 5 to 1 over shorts in the aggregated report. The small speculators pick up an almost whopping 3,000 new short positions and that is a huge mistake unless they have sold since the COT week going for small gains. They do not want to hold those shorts long enough to get trapped in a HFT long rally by the commercials!
In disaggregated gold, we have the producer merchant adding shorts and longs almost equally. It is no mystery they play both ends against the middle. They can unleash those shorts causing quite a stir in volume then force price high via HFT, sell the longs, exact the pound of flesh from the speculators and no one is the wiser.
Unless…
You’re a reader at SilverDoctors!
I use no caution whatsoever in urging everyone to liquidate as much paper as possible and buy physical silver and gold at these prices. Yes, the depression is going to last another year but after that no one will be able to buy once the world wide collapse is in full swing.
Stay thirsty for physical, my friends,
Marshall