Why Did Gold Recover More than $53 an Ounce in Yesterday’s Markets?
Consider this blatant, and what I consider to be deliberate, deception of this UK Telegraph article, in which journalist Nick Squires reports that newly appointed Pope Francis blamed “free market capitalism” for the economic tyranny spreading across the globe today. Upon reading this, I thought to myself, “Well, we may have yet another religious leader with influence over millions that has no clue as to how the global banking system operates and consequently is going to mislead millions into adopting the belief that free-market capitalism (a market theory that is not practiced by any country in the world), and not the global banking system and bankers, are responsible for conditions of global economic misery.” But my second thought was, "Did the Pope really say what Nick Squires said he stated?"
Whether you are religious or not, it is undeniable that the Pope’s public statements have an incredible amount of influence over people. However, religion aside, the key point I want to make is that people in extremely influential positions must be very careful to spread truth instead of falling victim to banker propaganda. In fact, Pope Francis’s alleged statements sounded eerily similar to the disinformation favored by former Federal Reserve Chairman Alan Greenspan, who also blamed free markets and the lack of “regulation” for spreading global economic misery instead of the true source - fractional reserve banking and Central Banks.
However the truth to Greenspan’s massive banker propaganda is that the idea of a Central Bank, an authoritarian entity that centralizes the control of a nation’s credit and reports to no one but its owners, is 1 of the 10 major planks of Communism. Therefore, the very existence of a Central Bank means that no free markets can co-exist at the same time. Greenspan further deceived the people by blaming a lack of “regulation” as the central cause of our current global economic crisis, thereby implying that Central Banks should be granted more power to “regulate” the financial markets. However, most people that read Greenspan’s statements don’t understand that Central Banks never “regulate” capital markets, but only manipulate capital markets for their own benefit and to the detriment of the nation’s people. Only people that understand Greenspan’s propaganda understood that when he used the word “regulate”, one should instead substitute the word “manipulate” to understand the truth.
What does this have to do with being able to grasp the real reasons behind falling and rising gold and silver prices in the past month? Stick with me for a second and I will arrive at this point in just a moment. As I always do whenever I read something in the mainstream media, I decided to perform my own fact-checking, questioned the objectivity of Nick Squires, and went directly to the source of Nick’s article – the transcript of the Pope’s speech. The below is what the Pope REALLY stated versus the Telegraph’s lies that the Pope had blamed “free market capitalism” for the proliferation of economic tyranny worldwide:
“Certain pathologies are increasing, with their psychological consequences; fear and desperation grip the hearts of many people, even in the so-called rich countries; the joy of life is diminishing; indecency and violence are on the rise; poverty is becoming more and more evident. People have to struggle to live and, frequently, to live in an undignified way. One cause of this situation, in my opinion, is in the our relationship with money, and our acceptance of its power over ourselves and our society. Consequently the financial crisis which we are experiencing makes us forget that its ultimate origin is to be found in a profound human crisis. In the denial of the primacy of human beings! We have created new idols. The worship of the golden calf of old has found a new and heartless image in the cult of money and the dictatorship of an economy which is faceless and lacking any truly humane goal…While the income of a minority is increasing exponentially, that of the majority is crumbling. This imbalance results from ideologies which uphold the absolute autonomy of markets and financial speculation, and thus deny the right of control to States, which are themselves charged with providing for the common good.”
Nowhere in the Pope’s speech does he blame free market capitalism for conditions of economic tyranny as Mr. Squires reported. Instead, the Pope referred to “the absolute autonomy of markets and financial speculation” as to blame, but he never referred to these markets as “free” nor did he ever refer to these markets as “capitalistic”. The reality today, of course, is that every major global capital market is unfair, rigged and manipulated by Central Banks and their participant commercial banks. The deduction that the Pope meant “free market Capitalism” in his reference to “markets” and “financial speculation” was one entirely conjured up out of thin air by Squires. That said, I absolutely disagree with the Pope that the right of control should be granted to the State, as the natural equilibrium of the State is to gravitate towards tyranny and the disenfranchisement of the people. Power should be granted to the people instead through the re-establishment of free markets, but this is an argument for a different day. Still, Squires absolutely misled people in his article by implying that the Pope blamed "free market capitalism" for our current plague of economic tyranny, when the Pope clearly blames the immorality of those that control markets and engage in the "manipulation and subjection of people."
So now to gold and silver. Just as one can never trust the mainstream media to report any truth about the real reasons behind the rapidly growing economic suffering of people all over the world, one can never trust the mainstream media to report any truth about gold and silver markets as well. This is the point of this article. If you develop your beliefs about gold and silver by sourcing mainstream media news, everything you believe about gold and silver will always be wrong.
Here is a portion of the text from a Reuters article released early yesterday, with an obvious anti-gold bias filled with many lies: “Gold fell on Tuesday for the eighth of nine sessions, hurt by a firm dollar and persistent outflows from exchange-traded funds, pointing to more downside pressure on the metal…Gold has been hit by a shift in investments into higher-yielding equities as fears grew that the U.S. Federal Reserve could soon end its bullion-friendly bond buying program…‘We can still see some selling pressure this morning. We don't see too much physical demand from the market,’ said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.” Let’s count the lies in that article:
(1) A firm dollar? Nope. The USD is projecting the illusion of rising because it merely is falling less rapidly than two other major fiat rubbish currencies it is measured against, the Yen and the Euro. Since we know the US Federal Reserve is still creating massive amounts of USD out of thin air, we know that in reality, the USD is merely devaluing less quickly than other major fiat currencies at the present time.
(2) Shift in investments to equities? By whom? Middle Eastern and Asian physical markets have been on fire as of late, and there is a huge rush to unload dollars for hard assets right now.
(3) Not much physical demand for gold right now in Hong Kong? Really? Then why were net flows from Hong Kong to China of physical gold a massive 223 tonnes in March, well over twice the amount from the previous March. Furthermore, as I noted in my interview with Max Keiser several weeks ago, physical gold buying in Hong Kong has exploded as bankers have artificially discounted gold prices. Haywood Cheung, president of the Hong Kong Gold & Silver Exchange Society, stated, "In terms of [physical gold buying] volume, I haven't seen this gold rush for over 20 years. Older members who have been in the business for 50 years haven't seen such a thing."
Thus, the Reuter’s article emphatically reinforces the modus operandus of the mainstream media to spread banker propaganda and the fact that you must seek out alternative media if you want to know the truth, especially in regards to financial matters and the true origins of our current global economic crisis. Consider that when I released my article "Why the Western Banking Cartel’s Gold and Silver Price Slam Will Backfire" to another mass media distribution outlet, Outbrain, in which I disclosed the facts about this current gold and silver banking cartel-initiated and artificial price slam, Outbrain refused to distribute my article for the following reason, even though tens of thousands of other news sites found enough interest and factual content in the article to link to it.
“Unfortunately, we can’t accept and amplify your content across our publisher sites. We’ve had a several complaints about this category/type of content from our audiences, editors and publishers.” - Outbrain
I might have thought that perhaps this was one isolated case, but when Outbrain rejected another one of our articles about bitcoins for distribution that thousands of internet news sites again chose to link to, you may conclude for yourselves if Outbrain is just another mass media distribution site that has an agenda other than spreading truthful financial news. Given this pattern, we're quite sure that if GATA ever attempted to use Outbrain, that every one of their articles would likewise be rejected, even though they are the first organization to publicly speak out against banker manipulation of gold prices of which I am aware, and their documented accusations that were once accused of being "conspiracies" have now long been vindicated as fact.
Articles about gold and bitcoin, rejected for distribution from Outbrain, but distributed by thousands of other news sites
In any event, an individual that seeks out banking truth will never receive the truth about the real source of this massive and intensifying global economic crisis (Central Banks and the fractional reserve banking system) if his only source of information is the mainstream media. One needs to source alternative media news sources if one ever wishes to understand the truth about this monetary crisis and the reasons for gold and silver’s enormous volatile movements as of late. Gold and silver’s recent price fall has zero to do with, as the above Reuter’s article claims, fears that the US Federal Reserve may end its “bullion-friendly bond buying program” or a lack of physical gold and silver purchases.
Gold and silver’s recent price fall occurred not because either precious metal was “overbought”, not because of a “stronger US dollar”, and not because the Federal Reserve may stop intervening in the Treasury bond market and stop artificially propping up the US treasury market. Gold and silver’s recent price fall was 100% created by artificial banker manipulation of bogus paper derivative markets as I’ve explained in the article above. Furthermore, the price surge yesterday in gold (from a low just above $1340 in Asia to a close above $1395) and silver (closed about 8% higher than its low in Asia yesterday) yesterday was simply due to the fact that gold and silver remain in a strong bull market due to the race of competing Central Banks across the world to devalue their fiat currencies, and in the process, bankrupt the wealth of their citizens. Yesterday’s large surge higher in the paper gold and silver markets was merely a counter-movement to the recent massive banking cartel manipulation and an attempt of paper prices to meet the real and considerably higher physical prices. Though gold and silver paper prices are likely to remain choppy and volatile in the short-term, this will not change the fact that physical gold and physical silver markets remain in a strong bull market. Any continuing volatility in paper gold and paper silver prices will also not change the fact that very significant premiums will continue to exist for real physical silver and gold over their paper prices.
For information about the real reasons behind gold and silver’s paper price volatility over the last several weeks, reference the below articles:
About the author: JS Kim is the Founder and Managing Director of SmartKnowledgeU, a fiercely independent research & consulting firm that focuses on the best ways to buy gold and buy silver as well as the provision of information about banking manipulation of paper gold and paper silver prices that allows investors to make rational, intelligent decisions versus irrational ones driven by emotion. For those that believe JS to be a gold and silver permabull, our clients were instructed to sell out of an Ultra Short Silver ETF we employed as a hedge at an average price of $85.53 a share in yesterday's markets, right before silver rocketed higher and the ETF plunged to $75.50. We will continue to hedge further volatility with new hedges as necessary.