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Gold/Silver ratio

Over the last decade this chart indicates
- Gold has outperformed Silver when...... precious metals are being... sold off.
But
- Silver is actually ......the better performer.... when the metals ...are rallying.

So Silver ,going forward
(should the precious metals... in fact be turning higher).
- looks as tho' tradionally, based on the the last 10yrs
- Silver should be......the better performer

Gold in Yen terms also seems to be indicating a desire
- to return higher
- within its upward channel





Sahara that one's..... much easier for me to see :o)

It's been a while since I came accross one of these,
- the last time I found it amazing
- as to the... near perfect ....correlation

- between... the US Debt, Limit....and price of gold.

Since I last saw it.....it's definitely gone... off song, as to correlation

If... we rejoined the trend....looks around $2,000 by the end of the year

But I like the look of the previous - off songs spells - as they seem followed by nice....overshoots....as it gets.... back with the band.

Sorry gaz/guys, have been a little busy.
Lots to catch up from having been away and year end to boot. Office is a furnace so not really the most productive grey matter as it's been fried.
Home now, with a cold one, so the world seem a lot better straight away :-)

Catch the Coming Gold Rally

By Nick Hodge | Friday, July 26th, 2013

Earlier this week, we showed you why silver was blatantly being manipulated.

Editor Adam English explained JPMorgan's massive short position, and how they covered almost all of it without the price of silver rising. The crooked bank unloaded the positions using high-frequency trading, flooding the market with thousands of low sell prices in a matter of seconds.

As the market followed those prices lower, the bank's algorithm switched to buy mode — and in an instant bought up contracts at prices it had intentionally manipulated lower... and walked away with a $3.6 billion.

Even today, JPMorgan holds 25% of the silver short market. And records indicate that paper positions outnumber the actual amount of physical silver traded by more than 140 times.

It's not hard, then, to understand why silver prices have headed lower, despite record physical demand...

So has buying precious metals become futile? Hardly.

Consequences

Actions have consequences. Sometimes not immediately, but always eventually.

At its peak, John Paulson's hedge fund owned 31.5 million shares of the SPDR Gold Trust (NYSE: GLD).

Though that position had been trimmed to 21.8 million shares by the end of the first quarter, Paulson — who made the so-called "Greatest Trade Ever" by shorting subprime mortgages in 2006 — has certainly still taken a beating on the yellow metal.

But he's still not deterred, telling investors at a conference this week that:

Although the Fed has printed a lot of money to date, there's very little inflation. People who bought gold in anticipation of inflation have lost their patience. I would say that the rationale for owning gold has not gone away. The consequence of printing money over time will be inflation, it's just difficult to predict when.

He added that the slip toward $1,200 gold is only "a pause period" in the bullish trend, and that, "If you're looking for a hedge against potential inflation in the future and have a longer-term view, gold is an important part of anyone's portfolio."

And while Paulson would not shed light on when he thinks metals will stage their breakout, 58-year market veteran Ron Rosen shed away this week...

$148 Silver, $4,300 Gold?

Speaking to King World News this week, Rosen said:

We are on the verge of the biggest move in the history of the precious metals market, and it's not far away from beginning. It's going to be a monster move....

What I don't understand is why everybody doesn't see it. There are so many analysts out there and if they just knew how to look at a monthly chart, and put it in a logarithmic form, they would see that gold and silver are going to explode.

This explosion higher in the price of gold and silver will just be Mother Nature at work, and there is nothing on the face of this Earth that can stop it — no individual, no central bank, no country, and no collection of countries.

And the timing?

We are looking at a massive move in front of us that will top sometime in 2014. At that point there will be a correction. Then, a massive blowoff will take us probably into early 2016. People who have been tortured by this long corrective phase, they will be thrilled if they have the ability to hang on. They just need patience here.

I expect the gold price to hit $4,300 in early 2016, but the really fascinating thing here is the silver chart because there have been three peaks. The first peak increased two times from the previous low. The low was $4.01 and silver went over $8 in that move. The second peak was $21.44. So silver increased four times the previous low, which was $5.45. The third peak was $49.82, and that was six times the previous low, which was $8.40.

You've got an old guy like me who has been at this business for almost six decades, and he sees 2, 4, 6. There's only one number that comes up next, 8. We then multiply 8 times the low of $18.17, and we have a silver price of over $148 sometime in early 2016. It's as clear to me as the sun rising and setting.

Of course, as go gold and silver prices, so go the miners.

And with so many companies right on the cusp of their break-even points, I expect will see more than a handful of bankruptcies in the junior mining space over the next few months.

Those that make it through will make it big.

Rosen thinks miners are going to be the best-performing stock group going forward, adding that the Gold Bugs Index (NYSE: HUI), which is currently trading around 252, "will be trading in the thousands before this bull market is finished."

Speaks for itself
- the red line
- denotes - the ratio of silver eagle sales -vs- gold eagles

The 'Bear Flag' has played out as indicated, and this blue support line needs to hold so a bounce from here please otherwise a retest of the lows and maybe new lows?/...



S.

Gaz - Those charts are a serious threat to my chart posting dominance ;-/

But keep em coming they are GREAT!!

I was hoping for the GSR to have peaked and put in a 'Double Top'
just above the uppr line of the Bearish 'Wedge' although today it has pierced so the hope is for it to close on or below the line before the close...



S

SLV - Bounced right where it needed to...



Can it hold?/...And clear the orange and green averages?/

S.

We are moving into the best possible time zone on average for buying Silver...



Whether we have had the lowest opportunity to acquire Silver already or we get a better chance in August remains to be seen, Better to have bought already I believe.

http://investmentscore.com/editorials/buy-silver-now--ii.php

S.

Well Sahara / Snurkle
- all the info of the last few days - in a sane rational world - seems to suggests that
- after the usual post options expirey tree shaking
- it is a - back up the truck time

But in a world where
- the insolvent Euro nations - guarantee bailouts of the other insolvent Euro nations and they - can still borrow in single digit %
- where the US has zillions of unfunded liabilities - yet USDA figures show - over 100 million americans are already on some sort of gov't - nutritional food stamp support
(so not so much - being paid - into.... the kitty)
- yet they too can supposedly borrow at low single digit %
(In reality - The fed is picking up/mopping up the T-Bonds)

Then who knows what - the current topy turvy world will bring along.
(- f/flag black swan season perhaps approaches).

It does feel as if the elastic band has been stretched a little further.
When it will snap no one knows, but the propaganda bull crap seems more over the top than ever.

Max Keiser said in his show from last Tuesday that :
'JPM would follow Lehman within the next 5 years... and that's a certain.... I bet whatever people want on that...'

Max is usually fairly accurate with his predictions, so lets see how that plays out... if / when it does. However if JPM indeed bites the dust means we'll see an almighty crash as they are the US government and Federal reserve string pullers.

Better stock up on the popcorn as that will be some fireworks. In comparison, Enron was just a very poor warm up act.

Now then........

here's one for the books......

J.P. Morgan to sell commodities business

http://www.marketwatch.com/story/jp-morgan-to-sell-commodities-business-2013-07-26

Bix' take is as follows

This is great news for the timing of on the END of physical gold and silver manipulation. Given that the paper price and the physical price parted ways a few months ago (at least in large quantities) it is now time to end the con for good. As I said before, the Good Guys are trying to make it as painless a process as possible. By removing JP Morgan from the physical side and the fact that they have likely covered much of their COMEX short anyways, the Good Guys think that they can quietly back out of the manipulation game.

My take...NOT A CHANCE!

Keep an eye out for an unregulated, gov't sponsored hedge fund like BlackRock to try and take over take the manipulation reigns. You cannot have a freely traded gold and silver market while you are running an unbacked fiat monetary system.

Very soon the chaos will come and JP Morgan will be right in the middle of it. Remember, they still have $69T in derivatives with $93B in gold derivatives and $17B in silver derivatives!

WAIT...given their total expose to both gold and silver it seems JP Morgan thinks the Silver/Gold ratio is more like 5-1!!!!

Also out today is a settlement between JPM and MF Global. JPM has agreed to pay MFG $160M as payola. After all it was JPM that sent them into the tailspin in the first place!

http://www.fa-mag.com/news/mf-global-reaches-settlement-with-jpmorgan-unit-on-recovery-14994.html

Looks to me like the events I talk about in this week's Friday Road Trip are beginning to materialize already!

Sahara - lol ...the difference is significant
- I just pop on what charts I come accross on my travels
- yours - are from your own personal knowledge, insight & skill

Taken together tho' - they do seem to tell the same story.

Snurkle

Re the propaganda mainstream crap
- I think McBean over the other side
- could get a regular weekly spot on CNBC

MaxK - has a great mix of truth, info and delivers it with excellent showman style
- I think when as he suggests JPM goes down
- the ...Bill Holter - bunker/hibernate will definitely apply,
(if not before)

Strangely
(as often happens at such times :o)
- The FA-MAG link is presntly...down
(as is their home page)

I will preface this extract from Jim Rickards with

He took part in the Govt/Pentagoons....currency wars planning exercise

He is an investment banker
- and investment advisor based in New York.
- has held senior positions at Citibank,
- Long-Term Capital Management and Caxton Associates.
- In 1998, he was the principal negotiator of the rescue of LTCM
(sponsored by the Federal Reserve).

His clients include institutional investors and government directorates.

He is an advisor on capital markets to .....
- the Director of National Intelligence and the Office of the Secretary of Defense.

So- based on the above
- is he.....a player
- or
- is this....a true pointer...based on his above... insights ?????????


.................................................................................................................


Gold prices will surpass $7,000 an ounce
- in an inevitable......... global currency reset

Said Jim Richards
- speaking at the Agora Financial Investment Symposium in Vancouver yesterday.

Mr. Rickards recalled
- how the global currency system
- has been reset....... three times..... in the past century:
- 1914, 1939 and 1971.
He noted that the dollar standard reigned
- from 1982 under Paul Volcker’s Fed to..... 2010.

Dollar in crisis

‘Now we are all at sea. Nobody knows which currency to follow,’ he said.
‘Some economists argue that we should have multiple reserve currencies but that is just too unstable’.

His forecast is
- that the IMF will issue a new reserve currency
- know as a Special Depository Receipt
(which it has actually previously done in crisis situations in 1972, 1983 and 2009).

‘The US dollar
- could collapse...... much faster than you might think.
- A complete collapse of confidence in the dollar is......
- much closer than ever.
But nobody knows exactly what...... the crucial threshold will be.’

In order to reset the monetary system this time Mr. Rickards argues
- that the gold reserves of the global central banks
- will be absolutely essential
(with 20-40 per cent gold backing sufficient).

That will mean a revaluing of bullion...... to around $7,000 an ounce
- or otherwise there will not be enough of it to do the job.
- Central banks will be in a position where they have to do this
- rather than constantly suppress the gold price to create an illusion of low inflation,
- he contends.

http://www.arabianmoney.net/gold-silver/2013/07/25/gold-going-to-7000-in-currency-reset-says-author-jim-rickards/

Just an interesting anecdote

An economics professor at a local college made a statement that
- he had never failed a single student before,
- but had recently failed an entire class.
That class had insisted
- that O'barmys socialism worked and that..... no one would be poor and no one would be rich,
(& everyone could holiday or play golf for half their life like him)
- a great equalizer.

The professor then said, “OK, we will have an experiment in this class on O'barmys plan”.
- All grades will be averaged
- and everyone will receive the same grade
- so no one will fail and no one will receive an A….

After the first test, the grades were averaged and everyone got a B.
- The students who studied hard were upset
- and the students who studied little were happy.

As the second test rolled around, the students who studied little... had studied even less
- and the ones who studied hard decided they wanted a free ride too.... so they studied little.

The second test average was a D!
- No one was happy.
- When the 3rd test rolled around, .....the average was an F.

As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings
- and no one would study..... for the benefit of anyone else.

To their great surprise, ALL FAILED
- and the professor told them that .....socialism would also ultimately fail
- because when the reward is great, the effort to succeed is great,
- but when government takes all the reward away,
no one will try or want to succeed

.....................................................................................................................


These are possibly 5 sentences ...... applicable to this experiment:

1. You cannot legislate the poor into prosperity
- by legislating the wealthy out of prosperity.

2. What one person receives without working for,
- another person must work for without receiving.

3. The government cannot give to anybody anything
- that the government does not first take from somebody else.

4. You cannot multiply wealth.... by dividing it!

5. When half of the people get the idea that they do not have to work
- because the other half is going to take care of them,
- and when the other half gets the idea - that it does no good to work
- because somebody else is going to get what they work for,

That is the beginning of the end of any nation.

...................................................................................................................

Perhaps pertinent if you come accross...anyone who thinks that
- over 100 million Americans
- on some sort of nutritional support programme (food stamps etc)
- and half the people in the US
- receiving some sort of government handout
...is okay.

Have stocks peaked against $Gold?... The timing would at least be consitent with the bullish seasonals for the metals...



Although we need to be cognisant of the 'Wedge' Ojective...



And a reminder of the Stocks to Miners ratio...



S.

Jeff Nielson's latest - Gold, Silver, and Hyperinflation

http://www.bullionbullscanada.com/gold-commentary/26290-gold-silver-and-hyperinflation

On a completely different note.
Saw this on sky news yesterday and just couldn't believe what I saw ..... on the MSM.

Some fat parents claiming that they couldn't afford to feed the kids during the school holidays... that is funny bit as these people clearly are thinking about their own tummy's first .

An ex-Iraqi war hero driving a bus with meals for the kids. He is honest in his views that the US is losing it's battle with the recovery.

http://news.sky.com/story/1121307/hungry-in-america-huge-demand-for-free-meals

Miners are meandering still and may wish to move on up without the re-test?/...



Whereas SLV has yet to get above the green average let alone the blue one...



If we get a confirmed breakdown here watch for a retest of the low, and potentially lower prices still.

Remember the end of month on wednesday and the FOMC meeting. Where talk of reducing QE could be the outcome?/

I will be looking to hedge my 20+% profits on the mining positions if we dip below the $26 area.

S.