Paper Gold will soon be priced differently from Physical Gold
Gold, silver & Newton’s Third Law
In the last couple of months we have worked hard to study the gold market and illustrate to readers all of the different parts that make it up. The overriding conclusion is that demand for paper gold and demand for physical gold are two very different phenomena and we believe soon, they will no longer be priced under the same umbrella.
When will this be? Who knows, says Michael Noonan, author of today’s Best of the Web, but should it make any difference to when you decide to buy gold bullion or silver? The futures market, which, for so long as driven the gold price appears to be ‘fraying at the edges’ meaning that the number of chances of getting gold and silver whilst they are so low, are falling each month.
Our clarion call is for the physical market to soon take over the actual price for buying and selling. When, we do not know? Timing is now less critical than actual possession, from this point forward.
The probability of a new low, in futures, may be 50-50. It was much higher a month ago. The odds of successfully picking a bottom are remote. Not to pick on Richard Dennis, but he is a poster boy for losing big time when he tried to pick a bottom in sugar, to the extent of decimating one or a few of his funds. How hard could it have been to lose so much money buying sugar when it was under 5 cents, at the time?
The point is, never think you know more about the market than the market itself. It is for that reason we always say to follow the market’s lead. Too many try to get ahead of it, speculating that it will catch up to one’s brilliant “market timing.” Margin departments are usually the first ones to let the ego-driven speculators know that their [questionable] prescience has gotten a little more expensive, in the process.
The odds of being able to buy physical gold and silver, at current levels, diminish with each passing month. In terms of pricing for buying physical precious metals, [PMs], we are more than likely looking at the lows. The timing for buying and holding as much gold and silver as you can will not be much better than at current prices for a few generations. If anyone wants to pick a bottom in physical gold and silver, the odds are against them.
If silver were to go to $140 the ounce, will it matter if you paid $20 or $24? Same for gold.
Here is how we see it.
If there is one law that is not on any known government’s books, but one that none of them can avoid, it is Newton’s Third Law of Motion: To every action there is always an equal and opposite reaction. All government, Keynesian, and central planner idiots abuse this law profusely, and at the expense of the masses, throughout history. Every once and awhile, it catches up to them, and we stand fortunate enough to be the beneficiaries for decades suppressed prices.
Decades, we say, and not just since the 2011 highs. The New World Order, [NWO] has had marching orders for their central bankers to keep gold prices low, especially since the United States was placed into their receivership hands by Socialist Franklin Delano Roosevelt, in 1933. Price has been steadily rising, ever since, with a few upside bursts that the NWO has tried to contain. That is about to come to an end.
The fiat game has run its course. We also said there is no evidence of a change in trend. That was last week. This week is different.
JPMorgan has been the recognized culprit for suppressing the paper market by naked shorting by the tens of thousands of contracts. It does not matter if others were acting in concert, the intervention was intentional: Scare everyone out of the gold and silver market. It worked, in a small part, pretty much destroying the futures market, and it failed on a grand scale by attracting world-wide pent-up demand for bargain prices of the physical metals. Unprecedented demand!
The natural law of supply and demand has been unnaturally distorted, and the fiat buzzards are about to have their paper asses handed back to them, with their heads still up there. The final push to keep PM prices artificially low has created such a tightly coiled spring that once the pressure lets up, or is forced up, the reaction is going to push gold and silver to levels unknown that will be equal and opposite to the misplaced energy spent keeping them down.
….read page 2 HERE