4 May 2017
by Jeff Nielson, Sprott Money:
What can be said about precious metals markets in 2017? Gold and silver prices slid through most of the final four months of 2016, virtually wiping out all of the gains of the year.
Regular readers were told that this was going to happen. It was “the Fake Rally” which was the subject of several 2016 commentaries. Readers were also told to expect a “crash”, both in the broader markets as well as precious metals.
This is the agenda of the banking crime syndicate known as the One Bank . This crime syndicate encompasses virtually all of the Big Banks of the Western world, as laid out in the computer model of a trio of Swiss academics, first presented in an article in Forbes magazine .
Via manipulative, computerized trading algorithms (so-called “HFT trading”) the One Bank is able to march markets higher and lower just as easily as a puppet master maneuvers a marionette. So where is the crash in precious metals? Where is the crash in the broader markets?
It’s coming. The fact that equity markets (mostly U.S. equity markets) have been marched higher to even more absurd valuations does not mean there will be no crash. Rather, it simply means that when the bubbles are detonated, the ensuing crash will be even deeper and more violent. This must be true, for several reasons.
In the simplest terms, there is very little profit for the banking crime syndicate in continuing to prop up these bubble markets, let alone push them even higher. It takes an increasingly greater percentage of the One Bank’s time and energy just to maintain these perverted valuations in (Western) equities and (Western) bond markets.
This leaves a proportionately smaller share of time and resources to devote to the One Bank’s favorite activities: scamming and stealing. It would (will) be much easier for the banking crime syndicate to profit from staging yet another crash than to expand the bubbles to even more obscene proportions.
There are three hugely important reasons why down must be the principal direction for our markets going forward.
- With valuations in bond/equity markets at such ridiculously elevated levels – simultaneously – it requires much less energy to pull markets down than to push them up. This means greater profits from going short versus going long given the same amount of energy.
- Because it is the banking crime syndicate which drives our markets with its manipulative trading algorithm, the One Bank always gets to place its (huge) bets first, any time a change of direction is scripted.
- 86-year-old long-term ‘investor’ Warren Buffett is sitting with $85 billion in cash for a reason.
This is why we have these regular bubble-and-crash cycles. In a normal world, with legitimate markets, those markets would tend to mostly drift sideways, only occasionally surging up or down in response to some temporary or permanent change in the economy at the macro level. But there is very little profit for criminals to make in such markets.
It doesn’t matter if you get to place your (crooked) bets first in markets which go sideways. You can’t scam people for much when prices don’t change dramatically. Legitimate markets are simply “bad for business”.
The Next Crash will arrive, sooner rather than later, because it must arrive. Gold and silver must go downbefore they can go up (much higher). For precious metals bulls who refuse to accept this logic, ask yourselves this: what is going to drive these markets higher if they are not first pushed down to utterly ridiculous levels?
Precious metals markets are manipulated, ruthlessly and without interruption. Presumably, anyone reading to this point is already fully aware of that reality. Evidence exists all around us, presented in various formsin numerous previous commentaries.
For the few Skeptics, perhaps a direct confession from one of the One Bank’s senior henchmen is in order:
…central banks stand ready to lease gold in increasing quantities should the price rise.
– Testimony of Federal Reserve Chairman Alan Greenspan, July 24 th 1998
For readers who do not understand bullion “leasing”, this is a fraudulent transaction in which (central) banks engage for the purpose of dumping bullion onto the market (to depress prices) without officially selling it off of their balance sheets.
This form of fraud was first exposed by the esteemed James Turk, in an article from September 20, 1999(A Fraud, By Any Other Name Would Still Smell):
A bullion bank leases Gold from a central bank, but the bullion bank does not let this Gold sit in its vault. With the full knowledge – and usually even with the full cooperation – of the central bank that owns the metal, the leased Gold is sold into the market by the bullion bank. Are you shocked? Well, it is very understandable that you might be because the lessee is selling the asset of the lessor. It is a fraud, but the lessor condones this practice because the deception serves his purpose. As Alan Greenspan so clearly stated in testimony before Congress last year: “Central banks stand ready to lease gold in increasing quantities should the price rise.”
But that is such a 20 th century way to manipulate a market. In the 21st century, it’s much easier to do it the new-fashioned way, with trading algorithms. The same algorithm which pushes equity markets up and down also functions equally well in commodity markets and even bond markets.
The principal fuel for this algorithm is propaganda. As explained in the computer model previously referenced; the One Bank controls 40% of the global economy. One of its many tentacles is the Corporate media.
The media oligopoly is fed its script each day (all publishing identical propaganda), that propaganda is fed into the algorithm and processed, and the result is price movement in any/all markets in the desired direction. It is only when the bankers choose to push markets against strong short- or long-term fundamentals that additional “pressure” is required.
Today, such pressure is not only being exerted on precious metals markets, it is being exerted on all markets to maintain low prices in precious metals and (simultaneously) maintain high prices in other markets. Just as equity/bond markets can soar so high that it becomes totally impractical to push them higher, the reverse is true when markets (such as gold and silver) are pushed too low.
The longest/strongest rally in precious metals markets in roughly 40 years occurred immediately after the Crash of ’08 – where gold and silver prices were ruthlessly taken down to utterly absurd levels. The same boomerang effect will take place following the Next Crash.
Gold and silver prices must be taken down with the broader markets because the One Bank is permanently obsessed with concealing one of the primary virtues of precious metals: they are the ultimate Safe Havenasset.
Why is this an obsession with the banking crime syndicate? Because if people still knew that gold and silver protected their wealth (primarily from the bankers), then they would continue to maintain a significant gold/silver component in their portfolios as people have always done throughout the history of markets.
Typically, gold and silver represented a 5% – 10% component in every portfolio. In times of uncertainty (as befitting a Safe Haven) that percentage would rise significantly. Today, we live in more “economic uncertainty” than at any time in the history of our nations, as explained in a four-part series , When the Tidal Wave Hits.
We have historically unprecedented levels of debt . That is a house of cards waiting to collapse. We have historically unprecedented asset bubbles in terms of both their number and their magnitude. That is another house of cards waiting to collapse. But it gets much, much worse.
The currencies of our nations are worthless. The authority for this is none other than former Federal Reserve Chairman, B.S. Bernanke :
U.S. dollars have value only to the extent that they are strictly limited in supply.
But Bernanke did not “strictly limit” the supply of U.S. dollars. He engaged in the Bernanke Helicopter Drop, the most-reckless dilution of a major currency in history. In four years, he quintupled the supply of U.S. dollars – quintupling a supply accumulated over the previous 80 years, combined.
Despite this unprecedented economic uncertainty today and the extreme “risk” (certainty) of an economic cataclysm tomorrow, average holdings of precious metals amongst the Western population is less than 1%. Not the 20%, or 30%, or 50% needed to provide genuine financial security – less than 1%.
Real estate does not represent security. Western real estate markets are the biggest bubble of all, with many of these markets having been pumped up for well over a decade. Only one secure asset class is not presently at a bubble valuation: precious metals.
Our broader markets must go lower, because that is absolutely essential for the “business” of the One Bank: financial crime. Precious metals markets must go lower over the short term (as previously explained) because this is also an integral component of the One Bank’s “business”.
Then gold and silver markets will go much, much higher. They will do so not because the banking crime syndicate wants it to happen, but because the costs in trying to prevent such a rise would do even more damage to its crime empire.
Our markets are much more perverted today (to the upside) than in 2008. Gold and silver prices are already more perverted (to the downside) than in 2008. The rally which will ensue in these markets following the Next Crash will dwarf the gold and silver rally from 2009 – 2011.
Do not try to “time” these criminalized markets. Never sell your (physical) gold and silver bullion. When precious metals prices are pushed down to even more absurd prices there will likely be no supply.
This was true for the silver market during the Crash of ’08, it will likely be true with the gold and silver market during the Crash of ‘17(?). The way for readers to “prepare” for the short term decline in gold and silver prices (and the rally which lies ahead) is to do their final buying now.
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