Think Like A Criminal And You'll Understand What's Happening

Investment Research Dynamics

Hi Dave. I am a long time follower of your work.

Just reaching out for your opinion if you don’t mind the intrusion.  I made a decision back in 2005 to put most of everything except the homes we have into metals. Been riding this monkey up and down but I feel like the guy in the twilight zone episode where everyone speaks another language.   Any advice for an amateur to stay the course?

My response:

The most important aspect of this to understand – and I’m sure you do – is that this manipulation and take-down of the metals is being done almost entirely with Comex paper contracts. As long as they can keep printing paper contracts for which they’re never called on to deliver, they can fabricate fraudulent gold and silver supply. As you know, when supply exceeds demand, price goes down. I watch and trade the Comex everyday. And everyday, like clockwork, gold and silver start to sell-off in the last 30 minutes of Comex floor trading. There is no better example of how manipulated and corrupt the Comex is. It would be equivalent to a baseball player getting a hit every time he went to bat.

As I’m sure you also know, gold and silver drift higher on most nights when the Asian/Indian physical bullion markets are open. That’s where the real market for precious metals is taking place. London is not only no longer the biggest physical bullion market in the world, it is now predominantly a fraudulent paper-derived market from which most of the physical gold has been transferred from London vaults to the eastern hemisphere buyers, who do demand actual physical delivery. In fact, as we’ve witnessed with this nonsense surrounding the gold/silver fix system and the removal of GOFO/SIFO rate reporting, the London bullion market has evidenced itself to be at least as, and probably more, corrupt than the Comex.

With that as a back-drop, I honestly do not know the extent to which the western Sicilian Mafia-like elitists can continue their manipulation of the gold and silver markets using unbacked paper gold/silver. No one really knows. I do truly believe that the action we’re seeing now reflects extreme desperation by the Fed/DC to keep a lid on the price of gold using paper AND to keep a floor under the S&P 500. After all, it’s not just the precious metals markets that are being tightly controlled. But that’s where it starts (think: Exter’s Pyramid).

The instant they take their foot off the gold market, gold will snap higher than anyone can imagine. Along with that will be an instantaneous release of the all the information contained by the warning signal that a rising price of gold transmits about the total rot and decay going on beneath the fabricated surface of our system. One of the primary reasons they are executing a war on gold is because they know that if they were to let the price go, it would completely undermine the dollar and they would lose the power of the dollar’s reserve status. They’re going to lose it eventually anyway but let’s hope they’re not insane enough to start WW3 in their effort to keep it.

I honestly do not know how much longer this can go on. No one does. My bottom call a couple weeks ago was clearly wrong. But I wasn’t wrong because I’m wrong about the markets. I’m wrong in my assessment of the extent to which the people running our system are insanely corrupt.

Unfortunately, the degree of this corruption is crystal clear evidence of the degree to which our system is collapsing. Anyone who can not recognize this is either ignorant of the facts or in complete denial.

Eventually these criminals will lose control of their ability to keep a floor under the SPX and a ceiling on the metals. But I also am convinced that will be the point at which all hell breaks loose and the result will not be pleasant for anyone, even those of us who are somewhat prepared for the inevitable. I’m sure this is why the U.S. Government is working overtime trying to create global military conflict and why it has re-invented the “war on terror.”

My best advice – and the advice which I’ve been offering for about 12 years now – is that if you want to try and survive financially with what’s coming, keep moving as much of your money as you can into physical metals and into any supplies you might want when the system goes into actual failure. A lot of people who are prepared for this just want the fireworks to start now so that a re-set can happen and “normal” life can resume. Unfortunately, I’ve come to the conclusion that the “other side” of whatever happens will end up being most unpleasant for everyone regardless of how prepared they are.

I remember back in 2003, I was having a discussion with a colleague about what had already happened – Enron, 9/11, the illegal Iraq war, the fomenting housing/mortgage/debt/derivatives bubble, etc. You know, stuff that is mind-blowing to most people. My colleague and I were unfazed at that point. But I remember we both agreed that we would see events unfold eventually in this country that would blow our mind. I can truly say that’s what I’m seeing now.

I’ll just end by saying that my best, best-est advice is to just keep moving money into physical metals, keep your metals out of the hands of any custodians (banks, brokerages, etc) and hope for the best by praying I’m wrong about what’s coming at us.

Just enjoy what you can, as much as you can, while you can. Unless someone can summons up a country-wide popular revolution, there’s nothing we can do about what’s going on in DC and NYC.