Kinda Gloom Out There

I like it. Well, I don’t like being gloom, but I like the sentiment in precious metals getting beat shitless by this last smackdown. I do maintain this long CONsolidation phase in precious metals and miners will end when we least expect it. We at least have a technical marker they’ve established and that is the 1360 mark in gold. Until then their paper vs physical will CONtinue to CONtrol the price of the gold. 

If you have been lucky to keep making your fiat money over the past 6 years AND you understand the futility of this printing as a long term fix for a real economy then you were given a magnificent opportunity to buy cheap metal…..especially silver. I have and I did. I suppose in a hypocritical way I should thank my masters of the universe. I do feel empathy for the majority of the people that are kept in the dark and have made no preparation for the eventual reckoning coming. I have zero sympathy for the millions of people given information about this pyramid scheme but have willfully ignored the warnings.

So I’ll keep this post short and sweet. We will get another down move in the market before fall and most likely before summer. It will be ugly just as the downturn was at the end of 2018 was and the Fed will then have to reverse policy with printing and interest rate freezes with probable cuts in rates this year. Until this downturn happens, they will jawbone interest rates as stable and even hint at a rate hike. 

All of this will be leading up to “the Transition”. That is the transition from “deflation/stagflation” we’ve had for years to the “stagflation/inflation” phase of this collapse. They will not allow a deflationary collapse as Harry Dent has predicted. It will be a inflationary collapse. It think the first phase of the “stagflation/inflation” phase will start this year. That phase is when gold crosses 1360 AND confirms with a monthly close. This phase could go on for several years with gold moving well over 2000 maybe to 5000 or more. 

The final move in gold is multiple years away and if they lose CONtrol of the final phase then its final price could be in six figures. You’ll have decide at critical junctures whether to trade some of your PMs for “other” hard assets…..maybe even general equities. My guess is most of you will not part with any of your PMs in the coming scenario of uncertainty and fear. Be aware the predator class is giving you a bone in metal prices, NOT because they like you but because they HAVE to keep the paper prices suppressed while the transfer of wealth is completed. This will end. gl