"The more power a government has the more it can act arbitrarily according to the whims and desires of the elite, and the more it will make war on others and murder its foreign and domestic subjects. Power will achieve its murderous potential. It simply waits for an excuse, an event of some sort, an assassination, a massacre in a neighboring country, an attempted coup, a famine, or a natural disaster, to justify the beginning of murder en masse."
R. J. Rummel, Mass Murder and Genocide, 1994
Its a bit tough to forecast this rise in silver because of the nature of the rally which is a price breakout precipitated by the collapse of a market manipulation. The large naked short positions have yet to be covered.
Few people yet understand what is happening here. Silver is being re-monetized, and the back of the silver bear cartel is being broken on a wheel of global demand, shredding their paper pyramid schemes.
If there is no panic liquidation because of a collapse in China or US equities it appears quite possible for silver to reach the 37.50 target on its fourth leg up, with a spike to 40 possible.
If there is no spike higher then a steady climb can keep going until the market clears and the bears deliver their promised bullion, made available by higher prices. What that price will be is difficult to forecast because of the lack of transparency and excess of duplicity in the market fundamentals as they are publicly disclosed.
The more I think about how these markets are managed and regulated, especially in light of the 'mystery trader' who currently holds 90% of the copper at the LBMA, approaching a 'corner on the market,' and the enormous leverage and naked shorting in the 'bullion markets,' the more ridiculous they seem to be in terms of a productive economic market function and capital allocation system.
If as stated the market participants driving these schemes are recently bailed out Too Big To Fail Banks utilizing reserve currency freshly printed by Anglo-American banking cartel, then this is an absolute discrace, even worse than the manipulation of key commodities which flourished under Enron.
You are going to love the punchline to this US economic recovery story which should be arriving sometime in the first half of next year.
Fooled again. What a surprise.
One can almost never overestimate the self-destructive gullibility of people when a fraud appeals to their vanity, prejudice, or greed.
Raptores orbis, postquam cuncta vastantibus defuere terrae, mare scrutantur: si locuples hostis est, avari, si pauper, ambitiosi, quos non Oriens, non Occidens satiaverit: soli omnium opes atque inopiam pari adfectu concupiscunt. Auferre trucidare rapere falsis nominibus imperium, atque ubi solitudinem faciunt, pacem appellant. Tacitus, Agricola
Translation: "Plunderers of the world, when nothing remains of the lands to which they have laid waste by indiscriminate thievery, they search out across the seas. The wealth of another excites their greed, and its poverty their lust of power. Nothing from the rising to the setting of the sun can satiate them. They alone are as compelled to attack the poor as they are the wealthy. Robbery, rape, and slaughter they falsely call empire; and where they create a desolate waste, they call it peace."
These are not charts. This is an economic IQ test.
Kitco’s Jon Nadler is today’s most notorious gold bear; and, although Mr. Nadler’s predictions are remarkably consistent, they also have been consistently wrong; but within this consistency lies a clue to tomorrow’s price of gold.
The website www.buygoldco.com kept track of Mr. Nadler’s predictions regarding the future price of gold in 2010. In November 2006, he predicted in 2010 gold would average $800. In October 2008, he predicted gold would be in the low $500 an ounce range in 2010. In January 2010: he predicted “With a view to the three-year average gold price still near $845… In May 2010 (with gold at $1200), He predicted the 2010 price would end [lower]…gold at the $800 per ounce figure. I am not alone in computing such figures. I still think..between $680 and $880. From 2006 to 2010, Nadler predicted the price of gold would be in the low $500s to the high $800s today, a spread of approximately $400, the mean being approximately $700. Based on this data, the apparently unerringly accurate Nadler Gold Predict-O-Meter is as follows:
To accurately predict the future price of gold, investors can take the arithmetic mean of Mr. Nadler’s predictions—then simply double it, i.e. $700 x2 = $1400, a number which, astoundingly, is almost exactly today’s gold price, i.e. $1405, at the end of 2010.
I have lightened up on my bullion longs, and taken down some of the paired trade hedges on the other side. I own no miners at this time and my leverage is nil. I am interested in the short side of US equities but am biding my time. They did not break until the second week of January last year as I recall.
My short term bullion positions had grown to be my largest ever, as I felt more confident than usual that 1370 gold and 28.50 silver would hold support and that the selloff was very artificial. These jokers are not all that subtle at times. Their market manipulation has been particularly bold and heavy handed of late. Too Big To Fail or Prosecute apparently.
This lessening of my positions, however, has less to say about what I think is going to happen next, and more about my personal circumstances. After the New Year I will once again be preoccupied with non-financial things that are much more important to me. I should have plenty of waiting time to keep abreast of broader events and will maintain posting.
Money is necessary and we must provide for ourselves. But family and friends are to the heart of our priorities, our life. Things can be replaced, but people can't. And of course, God is all in all.
“Bankers know that history is inflationary and that money is the last thing a wise man will hoard.” Will Durant
Silver powered higher almost one dollar and gold punched up through resistance at 1400 today.
First we have our long standing target of 1455, called out when gold was still trying to break out of its cup and handle formation. I can see gold to 1620 and silver to 40 before this leg of the bull has a serious correction UNLESS THERE IS A PANIC LIQUIDATION IN THE MARKETS.
Then everything will be sold in the short term, depending on what triggered the selloff. At some point there could be a significant divergence between gold and silver bullion and other dollar denominated financial instruments, and perhaps even other commodities that have less of a fungible 'monetary' element.
The commentary from the carnies on the financial networks today was funny.
The explanation for these rallies is fairly straightforward. Some of the central banks are debasing their currencies, and there is great pressure on many of the others to do the same.
The power of Bretton Woods II currency regime and the dollar banking cartel is this:
"In the famous simile of the cave, Plato compares men to prisoners in a cave who are bound and can look in only one direction. They have a fire behind them and see on a wall the shadows of themselves and of objects behind them. Since they see nothing but the shadows, they regard those shadows as real and are not aware of the objects.
Finally one of the prisoners escapes and comes from the cave into the light of the sun. For the first time, he sees real things and realizes that he had been deceived hitherto by the shadows. For the first time, he knows the truth and thinks only with sorrow of his long life in the darkness."
Werner Heisenberg, Physics and Philosophy
This generation has a rendezvous with destiny in which old questions and principles will be put to the test once again.
Try not to get ahead of it, or in front of it. Despite the thin volumes is has some determined backing, and can go further than we might imagine.
Still, when the music stops and things start falling down, the wiseguys will be out in the parking lot smoking cigars in their limos, and the exits will be blocked.
Let us pray for those whose hearts are hardened against His grace and loving kindness by greed, fear, and pride, and the seductive illusion and crushing isolation of evil.
We pray that we all may experience the three great gifts of our Lord's suffering and triumph: repentance, forgiveness, and thankfulness. And in so doing, may we obtain abundant life, and with it the peace that surpasses all understanding.
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