No One Could Have Seen It Coming

We have watched for months while the COMEX prices of gold and silver were capped.  We watched a circus of paper selling 2 weeks ago crash the “prices” and we watch again today.  Gold is “down” $25 and silver 75 cents.  This in the face of massive physical demand which has at least doubled globally and up 3 or 4 fold depending upon the area of the world you are looking at.  Premiums for “in hand” delivered metal have exploded and in the case of silver you still are paying close to $30 an ounce to get it.  This represents a roughly 30% premium currently.  This “discrepancy” between the price that they “say it is” versus what you need to pay to actually get physical in your hand metal may even increase (it apparently will).  As the discrepancy remains and were it to widen, inventories of physical metals will be drawn down further, faster and at some point no longer exist.  I wrote about this phenomenon 2 weeks ago during the paper smash.  I said that the COMEX could default within a week or several weeks.  Were paper “buyers” (even less than10% of them) to stand for delivery, the inventories would be wiped clean.

There is now all of a sudden a big backlash pointed at “us.”  By “us” I mean Jim Sinclair, Eric Sprott and his partner John Embry, James Turk and others who have been and are bullish gold and silver.  The net is swirling with “these guys are wrong,” “they are charlatans talking their book” and “the sky isn’t falling, they’re full of crap.”  First off, the thought process of this group has been nearly 100% correct for 13 years.  They have been correct even in the face of forecasting exactly the opposite of what governments, treasuries and central banks would like to see.  In fact, they have been correct in the face of outright and blatant in your face manipulations and price fixings by these very governments.  They have been right… and for the right reasons.

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