Friday, June 24, 2011

They can't milk gold and silver dry this time

12:54 pm (Hawaii) Charts and ETFs don't mesh often times, but with Spot Silver and Gold prices locked in a range, it's possible, just possible that we see certain patterns remain for the coming weeks.

• ZSL has run from 17 to 19+, back to 17, and up to 19.58, all in the past two weeks.

• DUST ran to 52, down to 44, then up to 48.92 since June 16.

• QID went from 54 to 57, back to 54, up to 56 since June 14.

• MCP pure kookoo in two weeks. 46 to 52 in two days, then down to 47 and up to 54 in another two-day span. then 52 to 56 between yesterday and today. It's one of those you can trade like a madman, or just pocket it and forget about it for a year. Rare earths are here to stay and the Chinese are going to make sure supply (they control 97% of the stuff) is limited.

• Other rare earth princes like REE have been roller-coaster nauseating. REE went from 9.00 to 11.40 in two days. Sank to 9.40, rode up to 11.10 and is at 10.67 after hours today. All in two weeks.

• Puppet masters knocked gold down as it was about to break to new highs, which means DZZ went from 6.35 to 6.89 since Wednesday. Same move for GLL, from 22.40 to 24.12 in the same time frame.

• FAZ is hovering between 46+ and 52. As more and more banksters (and insurance companies) announce huge writedowns and losses in the coming weeks due to Euro debts, fear of bank collapses and closings should drive FAZ much higher. Nothing would surprise me, though, including some devious plan that would keep the banksters solvent and maintain their current levels of stock price and Monopoly currency.

• JJC, the copper subindex ETN, has been stuck between 53 and 55. Currently 53.83. If stagnant, almost predictable action is your thing, let 'er rip. China's not coming to a complete standstill anytime soon.

• AGQ is a sight. From 165 to 186 in steady action for almost two weeks, then blindsided by the CME mafia the past two days. By CME mafia, I do mean all the powers that manipulate the "Free Market" of commodities, such as crude oil. I am NOT for blatant naked shorting, but I don't see the point of kneecapping any price discovery, especially when the LONG-TERM effect will be negligible at best.

Same goes for all the silver plays that were hammered the past two days, even though MINERS SHOULD BE GAINING DUE TO DECREASED ENERGY COSTS! It's mind boggling to see it all play out. I'm not advocating a full swan dive into miners (gold and silver) here, but AGQ is among many  metal plays now near YTD lows. At 160, AGQ is only a couple of bucks higher than its low a month ago.

It all comes back to what Mike Maloney has said for years and years: The Fed, that private entity that runs our finances, may not have any gold and silver in its vaults. Meanwhile, central banks across the globe have wizened up in recent years and started to accumulate mass quantities of metals to hedge against their valueless US fiat currency/IOUs. So how does the Fed respond? By holding gold and silver hostage.

It ain't pretty. They've got one, maybe two bullets left and they're up against Justice. You can't fuck over the world this long, borrow to the hilt, and not pay back WHILE STILL ASKING FOR MORE FUNDS TO BORROW. It would be best to restructure and concede rather than drag out the hostage crisis. By doing this to us, the Fed and banksters are simply prolonging the inevitable. I have no doubt that they are personally stocking up on all the gold and silver they can at these levels, and I would not be surprised if this is also a way to benefit all our debt masters, particularly China. This gives them ample opportunity to stock up at low prices.

Meanwhile, the value of the dollars we make by working every day (if we have jobs) is eroding by the day. A fucking candy bar at Safeway costs $1.29 now. This is like shopping for snacks at the movie theater. It's just getting worse. And it's been far worse in other countries for a much longer time.

I am not sweating the decline of spot price. I am just anxious to buy at the best discount I can get. That might come on Monday in two weeks or two months, but it's coming. I'm loading. I'm stacking. I'm not waiting for my bank to re-open after some strange "inventory" closing when one of our debt masters calls our bluff at the poker table. I think some of the experts are right. Jeff Christian is probably right when he says silver will drop to 26, then go up, up, up from there late in the year. Jim Sinclair is probably right when he says silver will rocket this year. Maybe not this summer, but eventually, yes.

By then, it won't be a question of how much we paid to protect our assets. It'll be a matter of how much protection we accumulated. I feel for the hard-working folks who were stretched to the limits, but there are also a lot of lazyass bitches who borrowed off their credit cards to the hilt. They bought stuff they couldn't afford for decades, and I'm not about to let them get me again. If they aren't ready this time, that's their effing problem.

Denise Milani

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