November 13 – Gold $1223.50 – Silver $17.36
Sunday Afternoon Reflections From A MIDAS Perspective
“Three
things cannot be long hidden: the sun, the moon, and the
truth.” … Buddha
GO
GATA!
First the world, including the investment one, tried to
figure out how a Brexit could have happened. Very few
thought it would. Brexit caught the mainstream
investment world, The Gold Cartel and PPT by surprise. Gold
soared and the DOW tanked. It took time but those surprise
market moves were totally reversed by the establishment in
the coming weeks and months.
Now the big deal to be was our presidential election. The
same crowd, along with the rest of the world, naturally
figured a Clinton win was in the bag. Yet, lo and behold,
another Brexit with the stunning Trump win. Caught asleep
the first time, The Gold Cartel would not be so unprepared a
second time. When gold took off following the result and the
DOW plunged, as EVERYONE said would happen should Trump
somehow win by a perceived miracle, THEY both went into
action to change the entire market tone. It worked. The DOW
has made all-time highs and gold was annihilated.
There wasn’t ANYONE in the investment world who predicted
such market moves ahead of the election should Trump have
won. We know, for a fact, that any hints of Trump having a
chance prior to the election (following the Comey letter,
for example) immediately put the DOW under pressure and put
staunch bids into the gold price. This is so important to
appreciate. The Trump win was anything but a buy the rumor,
sell the news event. It was just the opposite, and free
markets should, and would, have responded accordingly.
How ironic that the American pundits and press are
spending an inordinate amount of time trying to explain what
occurred and why … and how they got it so wrong. You don’t
need me for that. But it is fascinating how one of the
themes is that the Democratic party has fallen apart –
losing the Presidency, both houses of Congress, State
Legislatures, etc. And yet, the most visible disintegration
of a party, was the Republican one in that most of the big
shots in the party deserted Donald Trump. From House Speaker
Ryan to the Bush family, etc., etc. The most visible names
and leaders in the Republican party could not extradite
themselves from him fast enough prior to the election.
Almost all of the elitists, rich and powerful, in America
were for the establishment Clinton, not the political
outsider Trump. You all know that … so how could the
financial markets do what they have just done? It makes no
sense on the surface … especially the surface net response
by the gold price. Good ole Kitco headlines on Friday…
“Gold At 5-Month Lows – Why Aren’t Prices Up
Following Trump’s Win?”
“Where Did That Gold Rally Go?”
“Expectations Dashed For Gold; What Happened To The
Rally?”
“Gold Bulls Couldn’t Withstand Trump Win; What Next?
“
However, it all makes sense if you appreciate it all from
a market manipulation perspective and from a GATA viewpoint,
which is not allowed to be vented in our hideous financial
market press and gold world community.
Simply put, the rich and powerful have had an ironclad
lock controlling our financial markets and press with their
rigging of our markets. All of a sudden (especially after
their Brexit lesson), they were forced to be ready and
waiting to make one of the great financial market
interventions in all of history in order to change investor
perceptions to buy time to figure out how to deal
with the Trump phenomenon.
And it has worked for now. PRICE ACTION MAKES MARKET
COMMENTARY. Overnight, the Trump win is good for the stock
market. Higher interest rates (via the surge in the yield
of the 10 yr T note) is good for the DOW too. Higher
inflation is bad for gold. All this new uncertainty over the
Trump win is bad for gold too. That list could go on and on.
My two cents for emphasis purposes: the establishment has
made this move in order to buy some time on how to handle
their new predicament. Although you wouldn’t know it by what
the DOW has done, the rich and powerful elitist just got
their ass kicked. As part of that ass kicking, THEY have
taken out their outrage on the gold price. That blatant
kindergarten outrage is going to come back and haunt them.
The GATA camp has spoken for years (especially the last
five years) how artificially low the gold/silver prices are
and that the manipulation of these markets creating such a
situation is distorting the real financial/economic scene in
the U.S. That eventually this distortion would lead to
chaos and unrest in America. In the end it would be
about
the little guy in our country versus the big guy. Well, the
little guy just spoke. Clearly they are put
off
by the establishment in a myriad of ways. Wait until all
heck breaks loose, and the gold/silver prices go bonkers
(due to loss of Gold Cartel control) and their day to day
situation really deteriorates further. The small riots after
our election today are nothing compared to what is coming.
This is a major reason why what GATA has been articulating
for 18 years is such a big deal.
So, we carry on and fight the good fight!
As to the gold/silver nightmare. The gold chart is both
telling and a wild one:
The Gold Cartel made their first move on gold on October
4
before the Chinese took the week off for a holiday. After
taking out key support, the gold price fell a whopping $42
in one day. After an adjustment period, the price began to
come back, challenging its key support level in the $1308
area from where it was forced to break down. Then, following
the election, The Gold Cartel went bonkers, creating the
worst technical situation imaginable in order to encourage
SELLING. It create an outside day reversal to the downside
and a weekly one … enough to discourage many of the most
rabid hedge fund bulls. Heck, a monthly one is looming too.
(And what did gold fall on Friday?: $42)
There is one dichotomy, which is hopeful to the technical
folks. We discussed last week what a farce silver was, which
had every reason to make new recent highs, not collapse.
While it was tortured Friday, it held some recent lows, and
did not totally fall apart like gold did….
Perhaps this divergence is another “tell.”
On a silver note, had the pleasure of chatting with Cliff
“Nostradamus” High very late Friday afternoon.
Cliff has gained quite a reputation for his “seer”
predictions on all sorts of things. His latest, prominent
one was predicting a Donald Trump victory, which Greg Hunter
featured ahead of the election. As right as he has been on
SO many developments, Cliff is the first one to admit the
one
prediction that has gone very wrong has been his call on
silver. Figures.
Cliff is very well aware of how silver is being
manipulated,
which might explain why calling an explosive silver move to
the
upside keeps getting waylaid. The good news is that he is
not straying from his prediction that the price of silver is
going to go bonkers on the upside and trade in bizarre
fashion when it
does. May it happen sooner rather than too much later.
THE BOTTOM LINE, IMO:
Because of what we know The Gold Cartel has done, which
no one is
willing to give the time of day in the mainstream investment
world, the odds of gold and silver going berserk the other
way to the upside have gone to the highest level alert. Yes,
there may be some recovery work to do here, but the stage is
set.
Newton’s Law of Equal and Opposite Reactions is going to
work in SPADES.
GATA BE IN IT TO WIN IT!
MIDAS
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