The Gang

Right now we have slipped into a stalemate in the market for precious metals equity investors. The control of the market must be maintained by the boyz above or chaos follows quickly. As mentioned here on numerous previous occasions the headline price of gold must be contained to prevent a flashing warning light for the peeps. As long as the gold price remains stable then the value of the world’s reserve currency will remain stable. The reserve currency status is critical to keeping the game going so make no mistake the price of gold is being watched very closely by everyone. Cliff Droke had an excellent post describing how investors are watching the machinations in gold and are waiting for the crowd to move.
http://news.goldseek.com/ClifDroke/1342703400.php

His cycle analysis AND precious metal analysis has been spot on. Can you use it to trade gold? I can’t…but then maybe some of you can. On the other hand I do not want to ignore his view of the bigger picture on PMs and that is the longer term direction in them and that is UP! Many of you may look at some of the last few months in PMs with dismay but if you have then I wonder what part of a manipulated market you have not been able to accept. We’re in trouble and this situation is reaching a major turning point. Unless we get a tremendously large injection of print money then we are going to enter into a crisis phase that’s irreversible. THAT’S because we are losing CONfidence in virtually all aspects of our market and our political institutions. This must be contained or things will rapidly deteriorate….so more dramatic events ahead folks. In the meantime we are still in an accumulation phase in PM’s and PM equities. Many of you may not have trading cash to take advantage of any further beatdowns and are just holding long. Unfortunately I am with that crowd but I am sleeping well. Why you may ask. As I told a banker bud of mine from Texas a few months ago…..”Where in the hell WOULD I park my money in this mess outside of physical?” I have accounts that are hard to exit the market without penalties and I sleep very well knowing they aren’t in USD or general equities……hope you do too.

Quick note on the drought. We are in trouble. This nation had better get rain and a lot of it this year. That’s not for this years crop……its done for……its for next year. THAT IS THE BIGGER RISK! Some of you that read this blog can add more over the coming weeks and months on this matter and your comments are greatly valued from your knowledge and on the ground first-hand experience. Last night serious liquidation of cattle due to NO hay available began in earnest in this area. GL

BTW……take a look at this Droke chart………Unbelievable!!!!……That’s what you call power…

Read more at Great Depression 2