My Dear Extended Family,
In light of Bill Holter’s excellent article today, I would respectfully ask you listen to my last interview with Greg Hunter. Even if you have already heard it, listen to it one more time.
It carries the most important message since we talked about gold at $1650 when it was below $500.
It has been a while since I have written anything close to being considered a “rant”. Instead, using cool and common sense logic of connecting dots for readers has been my method of choice. Over just the last several weeks, the “obviousness” of what is coming has been astounding. I can only wonder why the “inevitable” has not yet been seen by the masses? Though Mark Dice giving the choice of a candy bar or a 10 ounce silver bar …only to run out of candy may be the answer?
The tone has definitely changed in the markets, nearly ALL markets. Maybe it is because of the things I wrote about recently, central bank’s loss of credibility or U.S. power and strength being questioned not only in the Middle East and elsewhere? Mainstream media who barraged the gold market with hit pieces and laughed at anyone not in equities only two months back have had to change their tone dramatically … because they had some explaining to do.
For brevity let’s just look at the gold and silver markets. While recently talking to Jim Sinclair, he said the price of gold is like someone walking up to you in a clown suit and wondering why you thought something might be wrong? I ask you this, what do you suppose will happen with silver and gold after UBS http://www.zerohedge.com/news/2015-09-28/ubs-about-blow-cover-massive-gold-price-rigging-scandal becomes the state’s witness in Switzerland’s gold rigging investigation? Before going any further, doesn’t this just confirm that us “conspiracy whackos” or “GIAMATTs” (gold is manipulated all the time) according to the Norcini’s/Gartman’s/Christian’s and Casey’s of the world …were correct? Are we to believe gold and silver are THE only markets in the world that are not manipulated? Only an idiot or the disingenuous could believe this!
It is most obviously clear the world needs to REFLATE. Not just part of the world, the entire world …which includes China as their bubble has burst. Zerohedge remarked yesterday http://www.zerohedge.com/news/2015-10-12/why-gold-surging-bofa-says-expect-massive-policy-shift-2016 “if China is indeed set to reflate at all costs, watch as a few hundred million Chinese drop their infatuation with the housing and stock bubbles, and go back to the one asset class that throughout history has been the best defense for currency devaluation and runaway inflation.” I ask, what do you suppose will happen to gold and silver?
As for the crazy “gold bugs”, what the heck has happened to them? They were on the right track and now become scared and petrified …just at the very moment they will need their insurance! The brain washing has worked, even the once sane are questioning their sanity! As Jim has said, “this is most probably the bull market in gold you never sell” …yet hard money people are in a panic?
Let me explain the above and also answer the question in the title. Simply put, gold and silver will ultimately go “no offer”. The laughable inventories at COMEX and LBMA will be gobbled up and erased within mere minutes. Gold will go into hiding and not be offered at any dollar price…for “a time” but I’ll get to this shortly. What “price” will gold reach in dollars? This is a question no one can answer because we have no idea how many new dollars will be created by the Fed to battle the financial monster of their own making. We also have no idea if even one ounce remains in Ft. Knox. Is the number $5,000? $10,000? $50,000? When literally $100’s of trillion in debt and over $1 quadrillion in derivatives come down (and they mathematically will), they will seek the safe haven of “cash”. “Cash” without liability that is! The above ground gold stock is only about $5 trillion, what do you suppose will happen when several $100 trillion sets their sight on the safety of real money? The number of $50,000 may be off by a zero or two!
As for Jim’s comment about this rally being the one you never sell, I’d like to clean this up a bit. “Never” is a very long time and one should “never say never”. What he meant to say is this, this coming rally will be the one you NEVER sell for dollars, euros, yen, pounds or maybe even yuan. It will be foolish to “sell” your gold for a fiat currency …ANY fiat currency. I believe when the system breaks and gold does go into hiding, it will not reappear for sale until new and credible currencies are issued. The mindset will change and holders of gold will only be coaxed to sell for something they can have confidence in. It is this thought process which will be at the center of asset repricings as we reset.
Let me finish with this, I and many others have been called “fearmongers” for writing about the coming collapse. “We”, those who said these same things in 2007 and 2008 were branded fearmongers then also. The thing is this, nothing has changed, nothing has been fixed and in fact the world is more in debt and further leveraged than it was back then. This is 2008 all over again only worse and this time …the global central banks and sovereign treasuries cannot ride in and fix anything because they have already blown their credibility!
We live in a world which is financially foundationed by the currency of a bankrupt issuer who prints this money to purchase their own bonds. Several $100 trillion of debt and over $1 quadrillion in derivatives rely on this currency for their “value and pricing”. It amazes me how so many people who once knew “what” exactly they owned, now don’t even have a clue because of the psy ops so well orchestrated. This is for ALL THE MARBLES and THE MOST IMPORTANT CROSSROADS IN MODERN DAY HISTORY! Please dig deep for your own common sense and logic …your financial life depends on it !
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