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More "Source" Input On Coming Precious Metals Price Explosions

lemetropole's picture




 

 

Bill Murphy

Chairman Gold Anti-Trust Action Committee

www.LeMetropoleCafe.com

August 12 - Gold $1619.70 – Silver $28.06

More "Source" Input On Coming Precious Metals Price Explosions

Over the past month+ I have been pounding the table that based on information from three extremely informed sources the prices of gold and silver would begin their launches to much higher prices in August … a launch that would lead to all-time highs in both precious metals and well beyond.

The reason for this Mini-Midas is that I just received some new input, which supports what my original sources have been telling us for some time. It is from someone I have known for a long while and is of the same caliber as my other sources in terms of reliability. When you have traded commodities and stocks as long as I have, and get to be my age, it is fairly easy to sort that all out … and what to run with.

Here it is … short, sweet, and maybe VERY important:

August 10, 2012

The METALS

I have spoken before about my contact on the Board of Trade who trades mainly the metals and is in touch with New York minute by minute. He has been saying for several weeks that the metals would have one more big drop (1525-1550) before they really took off. Today he changed his mind. They saw heavy covering of shorts in Chicago and New York. This should show in next week’s COT. They see an explosion of huge proportions and are adding four more floor traders as they see August as a record month for them. He closed by saying "We could see a 100% increase in 90 days." Tie this in with other things that we have read and heard. Golden regards
Peter

If what Peter sends us pans out anywhere close to what he has been told, this Mini-Midas is more than well worth the read. What fascinates me is that this new input confirms what my other three sources have been saying. Now we wait to see how this plays out in the three weeks of trading left ahead in August.

In addition, as you well know by now, it has come to my attention from all of my original contacts that JP Morgan has a big problem with their silver short position and that this problem will reveal itself in a public way in the near future…

***

?

 

 

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Mon, 08/13/2012 - 11:20 | 2700860 Money 4 Nothing
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Again, I call nonsence. There will be no price discovery IMHO. Why empower the slaves?

If there is a war waged against the Constitution, Bill of Right's, that's a war declared against you.

Molon Labe

Mon, 08/13/2012 - 11:00 | 2700822 Bastiat009
Bastiat009's picture

All those extreme views based on nothing are annoyingly stupid.

Gold price will double in 90 days. Gold price will fall to $300/oz. What's the point of printing that???

Mon, 08/13/2012 - 11:35 | 2700895 Stuck on Zero
Stuck on Zero's picture

Based on nothing?  My Wife's hair dresser said that gold bling is going to be all the rage next year.  She's right more often than most of the ZH pundits. 

 

Mon, 08/13/2012 - 09:55 | 2700647 Lost Wages
Lost Wages's picture

Doesn't really seem like the kind of information where you have to keep your source a secret.

Mon, 08/13/2012 - 13:02 | 2701086 Nadaclue
Nadaclue's picture

Just taking a cue from Harry Reid. lol

Mon, 08/13/2012 - 07:52 | 2700406 Northeaster
Northeaster's picture

GATA is starting to sound like one of those Iraq Dinar RV sites.

The fundamentals no longer matter, which anyone here on ZH can attest. Case and point, which to this day NO ONE on ZH could answer, is why there was no sell off on August 6th due to a CME triple margin hike. Once upon a time, that would have created an opportunity, which I was personally waiting for, but somehow, no sell off ensued. Why?

Let's say that GATA is right, which they may be, let's also concede that "gold bugs" are right as well. At what point do readers believe, the government, and those they are beholden too (read bankers), will do everything in their power, legal or otherwise, to make sure YOUR holdings are worthless by whatever means (i.e. confiscation, can't redeem, etc.)?

Hopefully there are some readers here that can use sound reasoning for a response, as no one could answer the CME question 3 weeks ago. I'm all cash, and I sure as hell not giving it to a brokerage to piss away. However, while PM's are a hedge, it's foolish at this point to be all in this hedge. Sure, if you went in 10 years ago, you're sitting pretty, but many missed that, but looking for sound alternatives, while understanding this is the internet and there's a nice ZH disclaimer should anyone be bothered to read it.

Mon, 08/13/2012 - 11:46 | 2700922 fonestar
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All cash or all binary?

Mon, 08/13/2012 - 10:02 | 2700657 _underscore
_underscore's picture

>> ..no sell-of ensued. Why?

I may be dumb, but doesn't the mere fact of that say something bullish for PMs? Margins raised without a sell-off?

I was like you - all in cash - until a ~12 months ago. I'm underwater (just) with my PM holdings & have averaged down since Dec '11, B-ingTFDs, as it were.

I'm now intensely relaxed - for the 1st time in my life, my wealth has no counterparty associated - not promises or others' good (or otherwsie) intentions or 'legal obligation'

(I should add I was intensely relaxed until my recent kayaking accident, the de rigeur post-script here!).

My understanding of hedging isn't very deep, but I do understand that fiat can completley evaporate in value, but PMs most likely not. As far as a % PM hedge, I suppose it depends on your

running costs & how much fiat buffer you need. I still have all 4: cash, equities, PMs, property, so a four-sided hedge, if you will.

Do tell me if i'm missing something here though, I'm ego-free when it comes to good arguments/advice.

 

 

Mon, 08/13/2012 - 09:57 | 2700648 fockewulf190
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The banks and all the powers behind them have had over a decade to destroy gold. Mission Impossible, however, they have shot a few RPG's at the price, that I will give you. I feel much better knowing my phyzz pile is next to Davy Jones locker. Fiat just doesn't do it for me. Good luck stacking your paper.

Mon, 08/13/2012 - 06:14 | 2700346 Gringo Viejo
Gringo Viejo's picture

I like the amount of negative sentiment I'm reading in these posts. Sounds like weak hand capitulation.

Smells like victory.

Mon, 08/13/2012 - 04:59 | 2700316 IronShield
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I have been in this market since 1999 and stacking all along the way.  I tried sharing its virtues with my relatives and friends but had been rebuffed so often I stopped trying a couple years in.  With one financial disaster after another, one would think a sane person would have a WTF moment; but no, that isn't happening.  Instead, the muppets continue sipping lattes, watching reality tv, indulging in useless trinkets while skipping happily along towards their own demise.  I would laugh if the outcome wasn't going to be so tragic.  Lives will be lost, fortunes squandered, families broken; and all unecessarily so.  But THAT, I have come to discover, is the human condition...

Mon, 08/13/2012 - 07:54 | 2700412 america4me2
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Ditto exactly your sentiments...only for me the starting year was 2002.  When TSHTF it WILL get very ugly.  Only then will our friends and loved ones realize what we were telling them.  I can just see the look in their eyes.  My message:  I can't take care of you all.  I warned you...

Mon, 08/13/2012 - 11:51 | 2700931 fonestar
fonestar's picture

Yes exactly, I warned you and I don't have a silver mercury dime for every one of you who wanted the new iPhone 4S a few short months ago.

Mon, 08/13/2012 - 06:37 | 2700358 bunnyswanson
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It isn't over until the fat lady sings and then yes, I agree, it will be a time of funerals if allowed to unfold as designed in this transfer of wealth and resources.

 

http://www.youtube.com/watch?v=bAYiul6uyaI&feature=player_embedded

Mon, 08/13/2012 - 02:14 | 2700240 Conax
Conax's picture

You got no place else to go!

Try all you want, where else can you hide some money and really keep it?

And silver is potentially capable of creating new generational wealth.  (When that lead boot comes off its throat, that is.)

Mon, 08/13/2012 - 11:16 | 2700849 Jungle Jim
Jungle Jim's picture

Yeah, when.

Mon, 08/13/2012 - 11:38 | 2700904 Conax
Conax's picture

The $64,000 question...

When they can't deliver and the customer won't settle for cash,
I guess.

Mon, 08/13/2012 - 01:46 | 2700216 Me_Myself_and_I
Me_Myself_and_I's picture

eh.  i've never seen an article online that quotes an 'unreliable' source.

That being said:  three considerations:

  1. the amount of metal being mined and refined each year only grows by a very small amount.
  2. The amount of fiat money being created electronically is growing by a very large amount.
  3. The number of people in the world is also growing by a large amount.

These three things make physical PM an attractive investment for the long-term.  No matter your trust in NY-connected reliable sources.

If it pays out for you, glory!

If it pays out for your children or grandchildren.. they will honor you forever!

Either way, just chillax, stack it, and carry on.

Mon, 08/13/2012 - 10:03 | 2700661 fockewulf190
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Don't forget that only 1% of Americans even own phyzz. Imagine the price if that number grows to 3 to 5%...let alone Europe implodes and the demand for phyzz their goes into hyperdrive.

Mon, 08/13/2012 - 01:43 | 2700208 Jungle Jim
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I'll believe it when I see it. Right now all I know is that the gold I possess is worth about $10k less than it was this time last year. The silver I possess is also worth very considerably less. I'm not quite sure how much less. A lot.

I've grown pretty tired, and pretty skeptical, of all these tales of Eldorado/Silverado and some great and glorious new day which somehow never seems to come.

I just want to know one thing: When?

 

Mon, 08/13/2012 - 12:17 | 2700994 dirtbagger
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Amen,  I am way ahead in the gold game with  Eagles and Kruggerands purchased in 2003, but that does not exuse these GATA Gold Peddlers who said gold was a screaming buy at $1900.  It is like a circular tape - gold is going up - buy now - again and again.   

 Like all commodities, gold prices go up and they go down and every day is not a buying opportunity.   Best indicator is your local newspaper.  When you see an article about gold on the front page, you can be nearly 100% certain that prices have peaked for a while.  Buy Gold when it is unpopular and unloved.  

Mon, 08/13/2012 - 11:57 | 2700941 fonestar
fonestar's picture

Nice to take a step back and look at the one-hundred year chart.  A one-hundred year chart is comprised of only twenty five-year sections, a fact lost upon the heads of day traders.  I don't want "when" to happen too soon, it is inevitable but I want as much time as possible to take position.

Mon, 08/13/2012 - 08:06 | 2700427 america4me2
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If I may, I can understand your anxiousness.  We (stackers) all feel that way.  Then the rationale kicks in, and all is better...and we keep stacking.

The rationale for me is this story:  In 1960 I would take THREE DIMES drive to the gas station and the guy would put a gallon of gas in my '54 Ford.  Recently, I tried that at my regular station and the guy laughed at me...amazing, huh?  Here I was giving him SIX DOLLARS worth of silver for a gallon of 3.48 gas and he LAUGHED.  THAT is why you MUST keep stacking.  Be patient.  TSHTF is coming!

 

Mon, 08/13/2012 - 05:27 | 2700326 Fudomyo
Fudomyo's picture

having lived through a similar silver bug rush in the early 80s, all I have to say is you may be holding a very long time. same rhetoric, same bunker mentality that the world as we know it was coming to an end, and 30 years later people barely recouped their investment. 

one thing to remember when listening to people like Peter Schiff championing his gold trade results is he's not factoring inflation on the long term hold. 

when I look at the  ROE of everything I ever put money into, PM were the worst performers. 

these are certainly troubling times, but there have been troubling times before, and there will be troubling times afterwards. living in a perpetual state of emergency is not a happy way to go through life. 

my best investment was buying farmland and raising my kids in nature, and we are not rich or get to have fancy holidays or buy a lot of new stuff, but we laugh a lot and have fun, and they're growing up as balanced decent people. I was a lot like people posting here many years ago, and it really ended up being a colossal waste of energy. the world is more resilient, more surprising than one may expect. 

someone said to me a long time ago, it was the height of egotism or arrogance to presume the apocalypse would happen in your lifetime. the world will probably go on pretty much the way you found it after you die, and more likely than not you'll pass with a whimper instead of a bang.

as I get older, these words grow wiser. 

 

just a thought.

Mon, 08/13/2012 - 11:45 | 2700918 Livingstrong
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Bravo! That is the way to go. Buying land with cash, no monthly payments, be happy, living in emergency status as you pointed out is a very depresseing way to live. I congratulate you for your words and actions, very wise indeed. Just, if you have extra cash, buying a little extra coin of silver or gold once in a while wouldn´t hurt at all. I already did what I had to do; own land 100%, not in the US, no morgage involved, full stock with Ag and Au, cero money in the bank, cero credit cards, no debt, cero debt, only one car to carry heavy things otherwise, bicycle. My life is peaceful, secure  and happy. 

...and my hat is off to you.

Mon, 08/13/2012 - 10:15 | 2700691 Nothing To See Here
Nothing To See Here's picture

Although I would disagree with your assumption that the world evolves according to a flat line with some bumps, whereas I would rather suggest that the bubble is growing exponentially with little room to grow much further, I found your post very much relevant and I must admit that you may also be right about many things.

I have also noticed that doomsday predictions are proned to fail just as much as any others, and my time holding PMs the last few years in the anticipation of a major collapse has not been a happy time.

Thanks for posting, you have put some of my concerns into words.

Cheers

Mon, 08/13/2012 - 08:51 | 2700518 lieutenantjohnchard
lieutenantjohnchard's picture

good thoughts. calming. thanks for posting.

Mon, 08/13/2012 - 06:54 | 2700366 chipworley
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Good luck.  At least you can farm when TSHTF...

Mon, 08/13/2012 - 03:02 | 2700261 madridisburning
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Just hold your breath long enough and it won't matter.

Mon, 08/13/2012 - 01:55 | 2700225 JLee2027
JLee2027's picture

When? Never on COMEX. I've given up on that manipulated POS. 

Mon, 08/13/2012 - 01:48 | 2700220 Me_Myself_and_I
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Next tuesday.

Then you can buy the boat, pay the babes and retire with an unlimited supply of PBR.

Mon, 08/13/2012 - 01:57 | 2700229 Jungle Jim
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 "PBR"? Oh, Pabst Blue Ribbon, the beer, Frank Booth's favorite. Actually, I'm more of a Keystone Light kind of guy myself. As for boats, I'm a serious landlubber. What I really want is a house in the country. On dry land. I'm already retired, for all practical purposes.

Mon, 08/13/2012 - 01:32 | 2700202 pies_lancuchowy
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'my contact who is in touch with NEw York' . That was hilarious

Mon, 08/13/2012 - 01:10 | 2700178 jonjon831983
jonjon831983's picture

Why bother read this?  :P Just BTFD.

Mon, 08/13/2012 - 01:12 | 2700173 JLee2027
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In a market manipulated since 1983 per Ted Butler, 100% moves are possible in a day, not 3 months. Why not? Stocks do it, so can metals.

At some point,the pedal goes to the medal..then to the moon.

 

But I wouldn't put a dime into COMEX. That's just a big bear trap, controlled by paper. Wait till the "offical" market breaks down...the black market will then set the price.

Mon, 08/13/2012 - 11:03 | 2700826 Jungle Jim
Jungle Jim's picture

Well, somebody wake me up when silver gets back up to $50, and gold gets back up over $1900, and when they both look like staying there, or even going higher. I'm ALL phyzz, by the way. The problem with phyzz, I've learned, is that it takes serious time to liquidate if need be. You can't just trade in and out of it on a moment's notice, the instant you see which way things are going.

Mon, 08/13/2012 - 00:35 | 2700138 strannick
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No use asking 'will they confiscate gold again, like Roosevelt did in 1933'. Most people's gold has already been confiscated. They invited the statists right in to their vault and gave them possesion. Anyone holding GLD, COMEX gold futures, unallocated gold, gold certificates, some allocated gold, has already had their gold confiscated. Thats why it has been so easy to suppress the price and such an uphill battle for GATA, ZH and others, because they are using people's pseudo gold to do it

Mon, 08/13/2012 - 00:46 | 2700151 Dr. Engali
Dr. Engali's picture

If they decided to confiscate it I'd have a lot of jewelry that had been eagles at on point in time.

Mon, 08/13/2012 - 00:16 | 2700119 boeing747
boeing747's picture

I actually think there is a big crash coming to de-rail Obamao's election. Even without this crash, Dow still needs to go down down 13000. PPT needs your money flows into Housing and Bonds, a overheated stock market is no no for PPT. Not too cool not too hot, just enough for a clueless frog.

Mon, 08/13/2012 - 00:02 | 2700100 vincent
vincent's picture

All "reliable sources" and "my guy inside" stuff aside, plenty of technical indicators for the metals are looking bullish.

The eventual reverse of USD , which has already fallen out of the recent uptrend, will only add fuel.

I'm not expecting the moonshot, however recent steady incremental movements upward (2 forward, 1 back admittedly)  have helped to bust out of the downtrends, and appear to be a nice setup for some big moves heading into EOY.

I have little faith in the COT numbers, and techs are subject to the same skullduggery, however it appears to me that a nice run is coming. 30 dollar silver is a gift. When we look back at this, we'll be laughing about how we agonized over 2 bucks.

Recent expectation for no outright QE in U.S, but more MBS purchases was a pretty easy call.

I'm now waiting for the first report of how many depressed Euros we've purchased ( or continue to).

Wonder who will break that story.

GLTA

Sun, 08/12/2012 - 23:19 | 2700030 SgtShaftoe
SgtShaftoe's picture

The FT story should be an indicator to all that see the metals as attractive long term. Why now??? With the order for banks to build their doomsday plans, and Europe to enter a new phase of fucking crazy, they're losing it, this all reeks of desperation. I think they're losing control. This is a managed retreat. The narrowing movement in the chart is telling of a major movement soon, and from the human "battlefield" factor, seasonal, and market factors, I can't see it going to the downside. I just wish I had more money...

Sun, 08/12/2012 - 22:54 | 2699991 spinone
spinone's picture

The only thing that could cause that kind of price action is the dollar drops out from under silver and gold.  As long as OPEC only takes dollars for oil, no worries.

Sun, 08/12/2012 - 23:54 | 2700089 CrockettAlmanac.com
CrockettAlmanac.com's picture

 

The only thing that could cause that kind of price action is the dollar drops out from under silver and gold.

 

Or somebody could start backing some portion of a currency with gold. Not saying it will happen but if the US dollar were backed in part by gold it would likely increase the price of gold and the standing of the dollar. Maybe they were trying to tell us something when they declared gold a risk free asset. Who's up for a screening of Bob Hope and Bing Crosby in The Road to Roota?

Sun, 08/12/2012 - 23:30 | 2700044 SgtShaftoe
SgtShaftoe's picture

OPEC is an American cartel stood up by US hegemony and the us military. Those governments are in a state of slow collapse, like empires before, it's splitting at the seams... OPEC is not the game, that's the US. Look deeper at the social fabric of those countries.

Sun, 08/12/2012 - 22:16 | 2699930 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

I hope the goldbugs are having fun right now because if a dramatic move doesn't come soon, they will have caused thoughtful people to completely swear off gold investing for good.

 

As a long time gold liker, I think the fundementals more than speak for themselves.  This "last chance to get on the rocket to the moon" nonsense gets so tiresome.

Sun, 08/12/2012 - 22:52 | 2699986 kliguy38
kliguy38's picture

gold bugs aren't the price movers in gold......retail is the last rat on the ship and the last rat off......this trade is for the boyz to deal with on Olympus...the rest of us just need to stack it......when the last bit of radiation settles out and you still have flesh on your bones then go dig your stash up and maybe there'll be something to buy with it........that's if you're an optimist

Sun, 08/12/2012 - 23:50 | 2700078 CrockettAlmanac.com
CrockettAlmanac.com's picture

Over fifty percent of gold is purchased in Asia. They are the price movers. North America only buys nine percent.

Sun, 08/12/2012 - 20:49 | 2699767 Dr. Gonzo
Dr. Gonzo's picture

Yet physical premiums are low. I don't get excited unless I see high premiums telling me the NYMEX quoted price is too low because the fake paper market rules the world.  Of course who knows? maybe the thing is close to defualt and they have to let the price escape.  I'm doing what no one is doing with their money in the middle of this depression and buying rhodium bars instead. Gold is the obvious play though. 

Sun, 08/12/2012 - 22:23 | 2699938 Sean7k
Sean7k's picture

Hallelujah! Anyone been to Tulving? Everything is on sale, very few sold out items. Premiums are lowest I've seen them in awhile. The CME is NOT raising margins, they are lowering them. 

You can get anything you want at any coin dealer anywhere. Sellers are meeting contracts and though appears to be a lot of shuffling of inventory and yes, maybe the papers are all paper, but this has been going on for over a year and with a market this small, one big fish could push the price of silver in a heatbeat. Even PHYS, with a new tender, is not moving the market.

I love what GATA,org is doing, but this is just talking your book. 

Sun, 08/12/2012 - 23:33 | 2700051 tenpanhandle
tenpanhandle's picture

contrarian indicators as is much of the sentiment here at Zero Hedge.  The situation at Tulving can and will change overnight when the sentiment turns.  While Murphy and le metropole cafe can, in parts, get tedious in the day in - day out repetition of certain dogmatic phrases and ideas, I believe his intent is pure, which is partly to bolster the spirit of downtrodden PM Bullion and PM shares holders so they don't capitulate, to their great loss.  I find his blog both informative and entertaining and only miss reading it when I'm off in the tules on a prospecting trip. 

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