Calm Water

Care for a dip? Maybe you would like to dip your toe in first? Something just isn’t right, but you aren’t quite sure what. One thing that is becoming increasingly clear now to even some of the most stubborn investors is the obvious war drums of desperation coming from the system. Why is this worthy of a post you may ask? Once again I will bring back the word CONfidence. It seems too simple doesn’t it? This is JUST about CONfidence? The answer is simply….yes. Its everything and the discussions inside the war rooms center around this simple word. If you listen to people like the President, Ben, Buffet, etc. you will hear over and over the word CONfidence….and its essential role in reversing our malaise. If you want to go back to Obama’s initial speeches in 09 he promises over and over during those initial dark days that CONfidence in markets would be restored through a program including TRANSPARENCY and establishing a level playing field in markets. This would then usher in a new era of CONfidence in our free market. I won’t rehash what really happened next. Where are we NOW and where are we going near term. Typically I do not speak in “near term” but today I am because I do believe an important point in the game is now upon us. We (the world) are truly collapsing right now. We have lost complete confidence and the momentum is astounding with bank runs occurring across Europe. Money is flowing into every form of mattress they can find over the pond. Yes, yes….its going into gold too. Its just that there are still plenty of peeps across the pond in the investment community that refuse to recognize the paper market and bullion market in gold are two separate and distinct entities. THEY ARE NOT TO BE CONFUSED AS THE SAME. The reason that the paper market manages to maintain the current range is simply the reserve status of the dollar remains intact, albeit a “tenuous intact”. As long as the dollar keeps its reserve status gold will be controlled to some degree. Bullion on the other hand is another issue for the paper price of gold. Incredible tonnage of bullion is now being accumulated outside of the hands of the casino and they will bring up the price of paper gold to prevent “giving” their gold away. This will happen very soon. I believe in the next few weeks gold will be trading to 1700 and over 2000 before the year is out. This is not a revelation to anyone that has followed this trade but this is where I diverge from some people. I believe the paper price move in gold will be matched by a much bigger move in the miners during the next 6 months based upon the miner’s importance strategically for the West and the East to control their future stores of precious metals. The strategic shorting of these miners was nothing more than an effort for the strong hands to accumulate the miners at dirt cheap prices…..nothing more. You have seen a historic trading move in many of these miners almost equal to the 2008 manipulated bottom. I always try to leave you with the possibility one more leg down but I believe they have run out of time to establish a lower low in the miners and the CONfidence and the waning momentum MUST be restored VERY SOON….days or weeks. gl

Read more at Great Depression 2