Gold is out of fashion like flared trousers: no one wants it I expect it's likely I will be called a perma-bull who has ben calling "silver to the moon" for the last 5 years.. well I have not.. I have been out of silver for a long time now but as i posted recently I am now beginning to cherry pick a few companies in the silver space because I think the writing is on the wall in great big letters now that we are finally aproaching a turn around and being presented with a rare life changing opportunity.. I have nothing to gain from writing here.. I have been researching the PM sector for over 12 years and I could write pages about what I am seeing right now.. especially in the silver space but I havent the time or inclination to do that. I did though think i would just clarify a point I made earlier about watching the trading patterns of certain juniors in the PM space and how this can work to the advantage of anyone wanting to accumulate shares in those companys.. and how, by observing, it becomes evident that there are other buyers taking advantage of this opportunity right now. I'll leave it at that.. just a couple of quotes below as examples of why I am beginning to position stink bids.. It may be a few more months and even lower prices to come but the end of this bear is clearly in sight.. good luck
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From Taki Tsaklanos
Consider the following mainstream media headlines of the last week:
- “Let’s Be Honest About Gold: It’s a Pet Rock” (Wall Street Journal)
- “Gold is Doomed” (Washington Post)
- “Gold Is Only Going to Get Worse” (Bloomberg)
- “Two Reasons Why Gold May Plunge to $350 an Ounce” by (Market Watch)
- “Gold’s tumble is far from over” (CNBC)
- “(Deutsche Bank) says gold’s fair value is $US750 an ounce” (AFR.com)
- “Wall Street Bets Gold Drops Below $1,000″ (Barron’s)
- “Are There Any Reasons to Own Gold?” (Bloomberg)
From those articles, we selected the three most impressive quotes:
- “Gold is a weird relic of antiquity.”
- “Gold won’t just drop below $1,000 an ounce but, eventually, to a far, far lower price.”
- “Gold is out of fashion like flared trousers: no one wants it.”
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From Dr. Jeffrey Lewis
The trade reporting data says it all. Where the managed money collective has piled on short to a lever never before seen.
Indeed paper price is a COMEX – trade position – paper-managed affair.
COMEX is the most important derivative exchange for silver volume by far. It remains the primary price determining mechanism. Tokyo and Shanghai are tiny in comparison. London is a dark , non-standard over-the-market, priced in US dollar, that keys from COMEX while being fully managed by the big banks.
The COMEX silver speculative short or the sized of the managed money category has once again, moved right back to all time highs joined now by gold for the first time in reporting history.
In silver, that’s 55,000 contracts, or a staggering 275 million ounces. More than one third of the metal produced by the world in one year, against a paltry 178 million “physical ounces” held in the warehouse system – registered and eligible combined.
This, in a market with 190,000 open contracts or nearly one billion ounces in derivative form.
All while the commercial net short positions in both metals are at extreme cyclical and multi-year lows.
The big banks – with JPM as the leader – have essentially cleared the runways for higher prices.
For the metals it simply doesn’t get anymore bullish than this. And yet, almost no one sees it. In fact, the majority paying attention are celebrating the end of precious metals.
Given JP Morgan’s colossal hoarding of physical silver over the last four years beginning in May of 2011, it ‘feels’ scripted.
As soon as we cross over the next few levels of ever-lower moving averages we will be off to the races. A race that will stop only when and only if they decide to stop it’s advance.
Price suppression remains vexing for even the most diehard investors.
It’s natural to want to find justification for any price.
And yet, there is very little issue and basically no mainstream opposition with regard to interest rates.
This all anyone should need to know.