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Gold & Silver Banker-Cartel Prolonged Price Suppression Has Set the Foundation for an Explosive Move Higher in 2012

smartknowledgeu's picture





 

Recently, public interest in gold and silver and gold/silver mining stocks has been at multi-year lows. And that is a super bullish contrarian indicator. In fact, a glance at the Gold Miners Bullish Percent Index illustrates that sentiment to start the year was at a three-year low.

 

smartknowledgeu bpgdm

 

At the end of last year, there was a lot of chatter on the internet, due to the end-of-the year slam down effected on gold and silver futures by the global banking cartel, that silver prices were going go collapse to $20 an ounce and gold prices were going to collapse well below $1000 an ounce by the first quarter of 2012. We felt that these discussions and the consequent, induced panic selling out of gold/silver mining stocks and physical gold/silver at the end of 2011 was highly unwarranted and the result of people falling for the global banking cartel price suppression tricks. In fact, we sent Special Alerts to all of our clients at the end of 2011 informing them that the banking cartel often paints charts in gold and silver to fool people and that one cannot make accurate predictive behavior based upon the assessment of technical charts alone.

 

At SmartKnowledgeU, it has always been our mantra that technical analysts often make huge mistakes in their predictive calls due to their sole reliance on technical charting and therefore often have to flip-flop like a politician on their calls regarding gold and silver, one moment calling for a huge crash and to sell everything gold and silver, the next moment calling for a huge run-up and to buy back everything gold and silver. While nimbleness is a good trait to have given the volatility of gold and silver assets and staying on the sidelines is sometimes necessary, trying to get out of the market on every single weekly downturn in gold and silver will surely drive an investor insane. Thus, sometimes it is necessary to ride out difficult periods of volatility and maintain your eye on the long-term trend instead of short-term banking cartel tricks. We prefer to remain more long-term trends with our calls and to keep our eyes grounded on a more fundamental outlook that incorporates technical analysis with more than a decade of knowledge regarding global banking cartel price suppression schemes. We have stated since day one of launching our company in 2006 that gold/silver technical analysis performed without incorporating the contextual nuances of global banking cartel price suppression schemes will not be accurate, especially since the cartel’s gold and silver price suppression schemes exert the most influence right now over setting the futures and spot prices.

 

Last year, we informed our clients at the very start of the year in January of 2011 that 2011 would yield massive volatility in gold and silver assets, proclaiming the coming year as “The Year of Volatility”. Before the year started, we knew that 2011 would produce a fierce battle between the global banking cartel and the dynamics of the physical markets for gold and silver as the global monetary crisis deepened. And indeed it did. Though we can mark 2011 as a win for the global banking cartel as they collapsed open interest in gold and silver futures repeatedly throughout the year by raising initial and maintenance margins for gold and silver futures (once raising margins on silver futures a ridiculous five times in just 9 days when silver broached $50 an ounce) and by also using the MF Global bankruptcy to force involuntary client liquidation of gold/silver futures at the end of the year, I am confident that all the banking shenanigans of 2011 has set the stage for a spectacular year ahead for PMs in 2012. If you are interested in my thoughts about how the banking cartel used the despicable MF Global fiasco to collapse gold and silver prices, you can read about it here: Did Bankers Deliberately Crash MF Global to Crash Gold and Silver Prices? 

 

In 2011, due to the extreme volatility in gold/silver mining stocks, there were periods we opted to cash out and sit on the sidelines preceding banking cartel smash downs of gold and silver prices, and other periods we opted to stay in the market and ride out the extreme volatility due to our belief that the downside volatility would be short-lived. Thus, admittedly we had to sacrifice short-term performance for our mission of a longer-term reward with the gold and silver mining stocks in 2011. As you can see in the chart below, the HUI Gold Bugs Index re-tested lows in the 490-500 range on five separate occasions last year and greatly underperformed the metals themselves. No wonder bullish sentiment regarding gold and silver stocks just recently hit a three-year low!

 

smartknowledgeu massive gold mining stock volatility in 2011

 

However, despite the severe underperformance of the mining stocks last year, from the launch of our Crisis Investment Opportunities portfolio in June 2007 to December 31, 2011, even in light of our slight setback of 2011, our cumulative performance of +135.18% during the past four-and-a-half year period has still respectively outperformed the S&P 500, UK FTSE 100, and Australian ASX200 indexes by whopping +153.12%, +152.37% and +169.20% margins. Furthermore, our Crisis Investment Opportunities portfolio has even outperformed our closest comparable index, the Philadelphia Gold/Silver Sector (XAU) index by a whopping +104.75%. Thus we see 2011, as nothing more than a temporary setback in gold/silver mining stocks, and we’ll explain why below.

 

More than 3 years ago, on October 16, 2008, I wrote an article titled, JS Kim Uncovers Four Parallel Markets for Gold: Asia Futures, NY Futures, Physical Bullion, Physical Coins. In this article, I discussed the complicity of regulatory agencies such as the CFTC in the global banking cartel price suppression scheme executed against gold and silver that was, at the time, creating very significant premiums in the futures and spot prices in Asia over the Western markets, and in physical gold/silver prices over paper gold/ silver prices. Since the time I wrote that article, I have followed up with many more articles that express my belief that the premiums of physical gold/silver will increase, and eventually in exponential fashion, over the prices of bogus global banking cartel-produced paper gold/silver derivative products. Eventually, I believe that the world will ignore these bogus paper gold/silver markets entirely when setting prices for physical gold/silver. Because the global banking cartel expended so many of their bullets in 2011 in keeping the price of gold and silver much lower than their respective free market prices, it is of my opinion that it will be much more difficult for them to contain the price of gold and silver moving forward in 2012.

 

Today, there are still many reasons to expect a stellar next couple of years from gold and silver performance, including the mining stocks. From a technical standpoint, gold and silver appear to be on the verge of making a very significant run higher. I’m not saying that this will happen tomorrow, but it does look very probable within a short-time period. From a manipulation factor standpoint, gold and silver also look poised for a run higher too. So the two factors I use to assess gold and silver’s direction both appear aligned with one another to move gold and silver higher very soon.

 

As far as the timeframe? Currently, due to excessive banker meddling in gold and silver futures markets, and the unknown factor of when greater divergence will occur between physical and paper PM prices as public awareness of the paper scam grows, the exact “when” part of the equation is the most difficult to assess, though I still believe that we will see some strong moves higher in gold and silver during the first quarter of 2012. Furthermore, I strongly believe that gold and silver will still both rise multiples higher than their current banker-suppressed price and that 2012 will see periods of explosive growth for gold and silver, more so for silver than gold, and that PM mining stocks, although accompanied by great volatility once again, will perform much better than they did in 2011. I believe that the largest difference between 2012 and 2011 will be, despite some continued large bouts of volatility in the PMs, a much stronger annual trend higher for gold and silver.

 

The start of 2011 was a phenomenal start for junior mining PM stocks but the latter half of the year was very negative. Still, one could have done very well in 2011 with junior mining stocks by taking profits off the table when they existed and letting one’s remaining capital ride risk-free in the junior mining sector. In addition to using discipline to protect profits when they exist in the junior mining sector, the greatest friend of a gold/silver investor is patience. Sometimes one knows that great moves higher are coming, but one’s timing may be off by a mere six to nine months. Patience will allow one to still reap the bulk of the rewards from these great moves higher as long as one isn’t shaken out of the markets by the banking cartel induced price volatility in gold/silver assets. To this end, I leave you with 10-year charts of gold and silver. Sometimes, it really is necessary to step back and take a deep breath to see the forest from the trees.

 

smartknowledgeu gold 10 year chart

 

smartknowledgeu silver 10 year chart

 

 

About the author: JS Kim is the Chief Investment Strategist and Founder of SmartKnowledgeU, a fiercely independent investment research & consulting firm with a focus on precious metals. For much more detailed commentary about gold and silver, consider the SmartKnowledgeU Crisis Investment Opportunities newsletter. To sign up for our free investment newsletter, please visit SmartKnowledgeU and sign up here.

 

 


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Wed, 04/25/2012 - 05:24 | Link to Comment handbags replicas
handbags replicas's picture

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Sun, 01/22/2012 - 22:05 | Link to Comment arg
arg's picture

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Tue, 01/17/2012 - 23:27 | Link to Comment HungrySeagull
HungrySeagull's picture

I think it's good thinking Trading Troll, except I see the rise of the USD equals a small hit in PM's

 

What I don't yet understand in the Metals is the zombie like stripping of copper left and right downtown. Our own area had a theft of close to 100K worth of copper overnight.

Then again scrap dealers are being hunted as well because it only takes one bad dealer to turn a profit,

Wed, 01/18/2012 - 00:16 | Link to Comment Divine Wind
Divine Wind's picture

What I don't yet understand in the Metals is the zombie like stripping of copper left and right downtown.

 

I have family in the burbs of Detroit. Apparently most of the vacant homes filling the city have been stripped of anything resembling copper. Pipes, wiring, etc..

Block after block after block.

Kinda tough to visualize any residential area EVER being revitalized after the mongreals have stripped what amounts to the vascular and central nervous systems out the homes in vast sections of the city.

Tragic.

 

 

 

 

Tue, 01/17/2012 - 22:40 | Link to Comment TradingTroll
TradingTroll's picture

Whatever the reason, whether Greek default or German exit, EU will fail

When Euro drops as funds depart Euro, USD and PMs rise except to extent:

-failing Eurozone depresses PM demand among 500m people
And
-Europeans with margin calls sell PMs because they have a bid

The EU risk is already priced in, looking for more catalysts

Tue, 01/17/2012 - 22:02 | Link to Comment 847328_3527
847328_3527's picture

The Creature from Jekyll Island : A Second Look at the Federal Reserve

 

 

http://www.amazon.com/gp/product/0912986212/ref=cm_cr_dpvoterdr?ie=UTF8&...

Tue, 01/17/2012 - 20:06 | Link to Comment 57-71
57-71's picture

Buying and selling mining shares is a great gig - huge money to be made... BUT one needs to know something about the business, and more importantly, the management of the companies. There are good properties and marginal properties, how they are mined and with whom at the helm will make all the difference.

Tue, 01/17/2012 - 21:52 | Link to Comment Divine Wind
Divine Wind's picture

57-71,

Any recommendations on newsletters and or analytical services covering this sector would be most appreciated.

Thanks in advance.

I am curious as to the origins of your user name.

- DW

Wed, 01/18/2012 - 01:18 | Link to Comment 57-71
57-71's picture

57-71 is for the numbers on the periodic table. They are the rare earths.

I don't follow newsletters on mining companies/properties because I am educated in reading drill results, feasibility studies, and start up plan reports. Also, I have worked in the business for many years and know who is doing what. I do read Infomine online.

My experience with most of the analysts is not very productive. Often they are out to flog for large funds. Or, they are overly concerned with strictly financials on the proven side of the reserves, and miss the potential reserves geology.

So I just do what I can to read company annual reports. One needs to understand the business to understand what is being said. The execs are not above buffalowing the analysts and public, but the insiders can see through the dialogue. Mining is a highly specialized and commercially variable proposition. A reserve with good metal grades can be a fail if not handled properly. Also, very few mining companies really apply start up capital to the best advantage for long term results. Instead preferring to spend operating money on never ending upgrades. When metal prices slump, they are without sufficient capital reserves to weather the downturn.

So be wary, it is not for the unknowing, nor faint of heart.

Tue, 01/17/2012 - 19:01 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Let me start by saying....
Fuck You's Benny B and Timmy G.
You's useless pieces of fucking mouldy shit.
I know you's read Zero Hedge,or have your puppets read it for you,so...once again....
...............FUCK YOU's.both,and your MASTERS

So lets get this right,oil up over $2 bucks on the day,and gold and silver....?
Well,just look at kitcos precious metals charts.

Tue, 01/17/2012 - 17:00 | Link to Comment FranSix
FranSix's picture

Here is a list of gold companies, which you could probably enter into a thematic portfolio such as Yahoo Finance.

AGG.V , AMM.TO, ANI.V ,ARZ.TO, ATC.V, ATN.TO, BGM.V, BPM.V, BRD.TO, BVG.V, CAN.V, CRK.TO, CRJ.TO, CSI.TO, DMM.TO, EDV.TO, EPL.V, ER.TO, EVG.TO, FST.V, GPD.TO, GRL.L, ICI.TO, KAM.V, KGN.TO, MAD.V, LSG.TO, MJS.V, MMM.TO, NCG.V, NGG.V, PDG.V, PLG.TO, PG.TO, PTNMF.PK, PMV.V,R.TO, RIC.TO, RR.V, RRI.V, RGD.V, SDR.V, SGR.TO, SLI.V,TRR.V, VGZ.TO, WDO.TO, WTG.TO

They make interesting reading overall, all you need is stockwatch.com or TMXmoney.com to get to the individual Canadian listed stocks, where links to their websites are also posted.

Tue, 01/17/2012 - 15:29 | Link to Comment Bartanist
Bartanist's picture

From what I can tell, nobody has any real understanding of the actual existing physical supply. More seems to mystically become available whenever official stocks "appear" to be low, even with China and India buying mass quantities and investors sticking physical away.

Tue, 01/17/2012 - 15:29 | Link to Comment CH1
CH1's picture

As my Daddy used to say: Figures don't lie, but liars figure.

I don't believe any number from a government or a central bank.

Tue, 01/17/2012 - 15:03 | Link to Comment GFORCE
GFORCE's picture

Why is every pullback in a highly speculative move labelled as a banker cartel takedown?

Gold will rise again but the flood of hedge fund and etf money taking end of year window dressing profits had a lot to do with gold's collapse.

 

Tue, 01/17/2012 - 14:44 | Link to Comment Freddie
Freddie's picture

Good article.  I prefer seeing articles like this over the Allah lover who posts his pictures and the other fans of our Chicago Allah - hero of the Democrat Party.

Tue, 01/17/2012 - 19:41 | Link to Comment weinerdog43
weinerdog43's picture

You know what...Fuck you Freddie.  Fuck your stupid and pointless comments.  Fuck your moronic 1 note anti Democratic Party bashing all the fucking time.  Fuck your stupid mother and father for raising such a stupid fucking fuck.  Fuck you and your fucking Limbaugh/Hannity talking points.  Fuck you for ruining a perfectly good article with more fucking red state/blue state bullshit.  And finally, fuck your stupid pet Yorkie for not biting you in the nuts everytime you get near a keyboard.  Fuck.  You.  (Just for good measure.)

Wed, 01/18/2012 - 02:49 | Link to Comment akak
akak's picture

I do believe you pretty much fucking covered all the fucking bases there.

Tue, 01/17/2012 - 18:16 | Link to Comment prole
prole's picture

Hmm there you go mentioning "our Chicago Allah" again. So you say he is one who submits to Allah- and I believe you, because I am sure you kind sir would not come on here and tell bold-faced-lies would you? Of course not.

But I am having the hardest time figuring out why our Allah Lover is waging economic war and war of assasination against his co-religionists in Iran.  Do you think he is confused? Shouldn't we tell him that he is starting a war against people he must obviously not know are Moslems?

And what's up with the drone strikes? 100% of the drone strikes are against Moslems. I am having the darndest time figuring out why an "Allah Lover" is killing so many Moslems. Could you help me figure that out please? I am sure I can count on you to tell me the truth and help out poor old confused me. TIA!

Tue, 01/17/2012 - 16:20 | Link to Comment Lord Koos
Lord Koos's picture

"panic selling of physical gold and silver" at the end of the year????   Really -- does anyone know anybody who sold?  I don't. 

Tue, 01/17/2012 - 23:16 | Link to Comment HungrySeagull
HungrySeagull's picture

I managed to get out at what turned out to be a top.

Two weeks later it fell to about 25 dollars on Kitco for a few minutes and steadied on the 30 dollar floor.

I backed up the truck.

 

Profits? Not much, take a few losses to learn how to do it right.

Tue, 01/17/2012 - 14:03 | Link to Comment ebworthen
ebworthen's picture

DOW up 0.8%

Gold and Oil up 1.8%

Ooops!

I hope you are right, my PM stocks are down 20% this year; but showing as oversold and crossing the trend line recently into "Buy" (MACD).

Tue, 01/17/2012 - 14:08 | Link to Comment JW n FL
JW n FL's picture

 

 

I told everyone to stay away from Miners.. unless you are participating with management in a an equity injection..

mining stocks NEVER PAY!

Tue, 01/17/2012 - 14:49 | Link to Comment ebworthen
ebworthen's picture

It's o.k., I'm 50% ahead so far, will get out when the time is right.

Tue, 01/17/2012 - 16:20 | Link to Comment Lord Koos
Lord Koos's picture

A gold or silver mine is often just a guy with a hole in the ground and a good story.

Tue, 01/17/2012 - 13:56 | Link to Comment JW n FL
JW n FL's picture

 

 

in 2001.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2002.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2003.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2004.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2005.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2006.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2007.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2008.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2009.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2010.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2011.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2012.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2013.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2014.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2015.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

in 2016.. the Suppression of Gold and Silver Pricing.. was going to lead to a Blow Off Top!

when the economy of the World is half way working.. the demand for silver or other industrial use metals helps drive the price higher.

when the Government / Federal Reserve sees the prices going higher.. the FED buys down the Price.

until the World is working half way correctly..

and until the FED can no longer buy down the price of Metals..

there will not be a blow off top!

there are not enough buyers!

the Big Money is not allowed to play with the market, ala' Hunt Brothers.. and no one is looking to get served for an appearance before congress…

Now if owners of Gold and Silver (or other Precious Metals) are able to find some kind of shelter from inflation or the de-basing of Dollars.. thusly a better store of wealth or store of labor then that would be GREAT!

But for the FED to keep the Prices Low.. the Owners of Gold and Silver will be made to suffer!

Iran has tried to push the apple cart over.. buying how many hundreds of tons of Gold in secret? And JP Morgan just kept on chugging! And now that JP Morgan is the single Largest share holder in the London Exchange! WOW!! Things will be that much easier on us.. the owners of Gold and Silver!

Never mind all the Rule changes that ALLOW for JP Morgan to do whatever the fuck they want that keeps the Price of Gold and Silver down!

But don’t try to sell people the dream that JP Morgan will be up rooted from the position of maintaining an artificially low price in ALL precious metals.

Until you see Ben Bernake in your back yard cutting down your trees.. to be used to make paper for him to print on.. then we are nowhere near the end.  

see? Senior'?

 

Wed, 01/18/2012 - 00:59 | Link to Comment Divine Wind
Divine Wind's picture

Se Se...

Except that I see some additional factors worth consideration that pertain to the following statement:

 

"there are not enough buyers!"


That may have been true up until 2002. Then China made it legal for the general citizen to once again own gold. It had been made illegal by MAO in the 50's.

All of a sudden, there were another billion or so potential buyers. But back in 2002, China was well along in it's economic climb.

Now the economic outlook for many industrialized nations looks far more grim, some of which are preparing to enter formal default.

We have central banks worldwide increasing their stockpiles of Au and jettisoning fiat and other paper.

We also have core faith in the banking system and the concept of a fiduciary becoming the butt end of jokes (ala MF Global).

We also have incredible amounts of money being injected into the system.

Now there 1.3 billion eligible buyers in China.

There is also the Shanghi Exchange.

The Chinese government is also proactively urging the population to buy gold and silver. And the volume is getting louder.

And this does not take into account India's similar insatiable demand for the yellow metal.

I think we are getting closer Compadre.

Then it is on to scoop up the next undervalued investment class.

 

Tue, 01/17/2012 - 16:54 | Link to Comment FranSix
FranSix's picture

Its just as much an indicator that no real control exists over the gold price, when Iran can't seem to budge the price on its own, though it had for a time become a depreciated asset years ago.

King World News had the following to say about demand,  now in  the Eurozone added to Chinese buying:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/1/17_London_Trader_-_Staggering_Gold_Demand_Creating_Shortages.html

The gold price depends very much on negative real interest rates.

 

Tue, 01/17/2012 - 13:38 | Link to Comment ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

The London Gold Trader is on KWN again talking about "staggering gold shortages"

Any other longs scared by this?  Every time that guy gives me unsolicited advice to buy, gold gets hammered.

Tue, 01/17/2012 - 14:06 | Link to Comment JW n FL
JW n FL's picture

 

 

http://www.tulving.com/

http://www.apmex.com/

https://online.kitco.com/?utm_source=kitco&utm_medium=tab&utm_content=20110331_Store_Charts_Tab&utm_campaign=Store_Charts

http://www.monex.com/prods/?gclid=CMWRx9TR160CFUQRNAodq1sSmA

http://www.bullionvault.com/spot/EN/homepage/home-vid-faq-02.html

the last one is for bulk purchasing.

there is LOTS! of GOLD!! and it is priced cheap! compared to last year!

now.. when Europe or the Euro more accurately goes under.. the World Markets will lose some amount of value.. I say 40% on a good day.. but whatever amount it is.. the markets will see some downward pressure when the Euro fails.. or when Greece fails.. or whatever the Crisis of the scripted day will be!

and then on that day you may have the oppurtunity to pick up some Gold of silver enve more cheaply than today.. maybe.. if people are selling on the day.. or! it could go the other way! and drive prices skyward with a flight to safety..

but iether way.. industrial use of metal is down.. and Ben Bernake is Printing like a Mad man for the Euro SWAP Window!

so the FED will continue to buy the price of metals down!

 

Tue, 01/17/2012 - 16:48 | Link to Comment silverserfer
silverserfer's picture

two simple reasons to price supress silver

1. the government  needs cheap silver and commodities for improving the economy.

2. the FED does not want silver to compete with fiat.

printing endless sums of $ to keep these down is not going to go on forever. But that clearly is what is going on now. Mainly because we import a LOT of our silver. We are regulating the shit out of our domestic miners and shutting them down like Lucky Friday in idaho so we preserve our in ground reserves. We can buy up all we can from mexico and south america for cheap and store it. It will be in short supply but really nor for 20 years or so. Take advantage of what uncle Ben at the FED is doing right now, he is doing us little guys a favor.

And to all the casino junkies wishing for the price to skyrocket, fuck off!

BTFD and think of your children's future!

Tue, 01/17/2012 - 21:11 | Link to Comment PSEUDOLOGOI
PSEUDOLOGOI's picture

that's all nice and dandy until they won't sell it to us for federal notes anymore.

and as far as mexico goes, all you need is the cartels to begin diversifying out of dollars and into gold/silver

what will DEA do then?

Tue, 01/17/2012 - 12:15 | Link to Comment HungrySeagull
HungrySeagull's picture

Regarding the farms, we are fixing to choke the world in Corn this year. If we are smart we store some for hard times.

 

Again, we cannot depend the future, History teaches us lessons so that we can not make the same mistake twice.

Tue, 01/17/2012 - 17:33 | Link to Comment akak
akak's picture

Regarding the farms, we are fixing to choke the world in Corn this year.

Poor grammar HungrySeagull.

The proper phrase, of course, is "we is a-fixin' ".

Carry on.

Tue, 01/17/2012 - 12:12 | Link to Comment Quinvarius
Quinvarius's picture

The only problem I have with thinking the paper prices will not eventually reflect true physical pricing is that if the correct pricing is not reflected, it will destroy the US commodity system and economy, as well as the ability of the US to manipulate other commodities.  You cannot have a fraudulent default in one commodity without taking out everything else and the entire system along with it.  The commodity exchange has a function beyond speculation.  If it dies, we could lose a lot of farmers and producers of other things along with it.  No one will use the system to hedge at all.  The US will lose control over those markets.  We would be in complete isolation.  The dollar would not be needed by anyone outside the USA for anything related to economics.

I think that necessity will force the system to correct before bankers are allowed to take it to the grave with them.  However, I do not doubt that today's bankers view our system the same way Adolf Hitler viewed Germany at the end of WW2.  I suspect they do think that if they can't have it, no one else will be allowed to. 

Tue, 01/17/2012 - 18:51 | Link to Comment bill1102inf
bill1102inf's picture

The rest of the world will take our 'dollars' whether they are green or changed to blue (without the debt).  They will get those dollars and pay us with them for things like, oh, idk, MUCH OF THE WORLDS FOOD. MEDICINE maybe?  Bombs n shit like that???

Tue, 01/17/2012 - 11:56 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Anyone know where I can buy American Eagle Platinum Coins (1oz)?  All the usual suppliers are out of stock.

Tue, 01/17/2012 - 21:14 | Link to Comment PSEUDOLOGOI
PSEUDOLOGOI's picture

http://www.kpmcoins.com/

ask for vince if you're doing a serious order.

Tue, 01/17/2012 - 15:18 | Link to Comment Sandy15
Sandy15's picture

If your looking NOW for gold, your too late.  Bought 2 1/2 years ago. 

Tue, 01/17/2012 - 14:42 | Link to Comment Stuck on Zero
Stuck on Zero's picture

I found a reliable source.  The U.S. Mint.  They are selling Platinum Eagle proofs for about $1690.  That's not such a bad price and you get a collector coin.

Tue, 01/17/2012 - 12:14 | Link to Comment HungrySeagull
HungrySeagull's picture

Google it. You will find it.

 

I checked my own exchange, and you are right, there is none to be bought. The Ask side is dry while the Bid is from 1576 all the way down to 1100 for a total of about 300 ounces in play.

Tue, 01/17/2012 - 12:13 | Link to Comment Quinvarius
Quinvarius's picture

I think they stopped making them in the recent past.

Tue, 01/17/2012 - 12:29 | Link to Comment HungrySeagull
HungrySeagull's picture

If that is the case, then we have missed out.

The prices will go higher. Or Lower as the weak hand sellers undercut each other to get some cash.

Tue, 01/17/2012 - 11:50 | Link to Comment hairball48
hairball48's picture

I live in a small town in the West. Plenty of gold and silver available for the small buyers like me. I buy in a small local coin shop.

The premium is minimal too unlike the ripoff sellers that advertise on TV. Last junk silver I bought at the spot asking price. My gold Krugerands were $30 over spot at thetime I bought them which amounted to just over 3%. And I got a similar deal on 10oz silver bars.

Look around. PMs can be bought without getting ripped.

Tue, 01/17/2012 - 13:08 | Link to Comment BeerBrewer09
BeerBrewer09's picture

I rely on the coin shop also. They make sure all the incoming stuff is legit, and I can buy with confidence at only a dollar or two above spot. However, after this recent price dip they were pretty much out of everything. There must be a lot of buyers out there.

Paying cash leaves no trail.

Wed, 03/21/2012 - 14:19 | Link to Comment lakecity55
lakecity55's picture

I too use a local coin shop run by 2 retired armed forces guys from the "old school." Minimal markup, no bullshit advice from them.

Plenty of culled silver available at a good price (over spot).

Plus I like to Buy Local. All the local cops and military buy from them. Around these parts (somewhere on the SE US Coast) Cops and military are stocking up on everything you could possibly imagine.

Tue, 01/17/2012 - 12:10 | Link to Comment HungrySeagull
HungrySeagull's picture

My doctor has checked me over recently after a run of medicines caused by my own Temper.

There was a sort of Home Shopping Channel on Satellite. But this one is for Precious metals.

They had the gall to sell the goddamn (Slams both fists on the table) at 95 dollars plus 8 dollars shipping and handling! when the spot at the time was less than half that.

If that telephone counter is true (Me thinks bull) at least a 1000 people bought. It would take me a week to calm down with the doctor's help.

If people are truly that stupid then hell, like Barnum said, A Sucker Born every minute.

Tue, 01/17/2012 - 12:15 | Link to Comment A Lunatic
A Lunatic's picture

A guy I know put an ad in the paper a few years ago and reeled in quite a bit (shitload) of pre 64 and other silver related coinage from the sheepletons. It's still a good strategy.

Tue, 01/17/2012 - 11:50 | Link to Comment tony bonn
tony bonn's picture

thank you, smartknowledgeu!!....you are my hero and i applaud your public pronouncements about the fraud in the pm markets instigated and managed by the rockefeller-mic-yale-cia axis of evil....

for those seeking confirmation of smartknowledgeu i would recommend the legendary jim sinclair whose message is nearly identical particularly about the need to stay calm and patient amid the vile crooked schemes of the plutocrats' designs on pm.......

indeed mf global was as you described....god bless you!!

Tue, 01/17/2012 - 11:14 | Link to Comment The_Euro_Sucks
The_Euro_Sucks's picture

Mr Kim, Usually I like your pieces but this suggestion to buy mining shares without telling that even if you buy a share you don’t own it until you take delivery of the (fucking PAPER) proving you own it, smells a bit fishy. If gold and silver prices explode, what do you think the corrupt, broke governments and banksters will do? Tax them to near death of course (or nationalise). Look at the Australian government, or the South African government, or the Venezuelan government to get a taste what will be done.

Deal with the financial industry if you like getting raped. If you don’t like that buy physical bullion (and coins). Investing has never been easier before. All paper will burn.

Tue, 01/17/2012 - 11:24 | Link to Comment HungrySeagull
HungrySeagull's picture

We have a few mining shares from Probate and frankly they are worthless. Maybe once in a while they will gasp and rise halfway from the corpse and death bed for a few cents only to fall back deader than before. All together it's what? 45 dollars worth? It would cost more than that to sell outright and recover the funds. Hell, it might pay for it's own bank wire. HAH /sarc

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