“What? … we like shiny things that appreciate in value!”
From a post last night on ZH, that some of you may have missed … “seems
China is taking delivery of massive amounts of gold … see my shocked face”.
The link directly below.
delivery-massive-amount-gold-london-new-york
Now, it’s not my intention to rehash the entire article, but I do want to point
out some things I think are extremely important and relevant, to the future
price of gold; 1) at some point in the near future, probably a whole lot sooner
rather than later, China will begin to control gold price, 2) the Western
bullion banks are in “deep shit” and know it, 3) there is a “ONE WAY
DIRECTION” physical gold is flowing, and it’s New York & London to
Switzerland to China & India, and 4) that physical gold ain’t ever
… “EVAHHHH”! … coming back!
Currently, as we all know, the bullion banks that make up the LBMA
[London Bullion Market Association], control the price of gold through paper
markets like COMEX. Through their gold holdings, they lease gold to third
parties and, of course, earn interest … “do the third parties that have gold
deposited with the bullion banks KNOW their gold is being leased out for
interest? … do they know the bullion banks simply have nothing but IOU’s in
return? … finally, do they know if the gold is ever coming back, and if it doesn’t,
how the fuck is the bullion bank gonna get my gold back to give back to me”!?
Good question Skippy, and it’s the reason fewer & fewer governments around
the world trust New York or London to hold their physical gold, and instead
have it shipped “home”. “Cuz when SHTF, and price goes vertical, these banks
won’t be able to control price, or get their hands on physical at any price … and
the very next thing that happens, is that everybody with gold on deposit says
gimme my gold back NOW! … only it ain’t there … you got an IOU instead”.
If you’re the bullion bank, you got to be nervous here … cuz surveying the
“lay of the land”, you got less and less of physical, and more and more of IOU’s
at higher interest rates … how you’re gonna scramble to get physical someday
is beyond me, especially in the hard to get 400 OZ. bars that are certified
quadruple 9, i.e., 99.99% pure gold. “Why do you think that these physical bars
around the globe … right now this very second, as you’re reading this … are
commanding premiums to spot of $100 - $150 per OZ.? … EASY PEEZEE: Cuz
the refiners can’t make them fast enough to meet demand, and/or can’t get their
hands on physical to refine and certify the bars”!
The game right now, is that physical bars are going to Switzerland, then being
melted down there and refined into certified 1 OZ. bars & in some cases 1 OZ.
coins … from there, they are shipped by the refiner to India & China. EXIT
QUESTION: “If you’re the bullion dealer that made the delivery, and used
deposited gold that wasn’t yours, explain to me how the fuck you get the physical
back anytime soon? … yea, me neither”! Cuz if price starts going skyward
rather quickly, as it has done many times in the past, what’s your exit plan for
the bullion bank?
NEWS FLASH! … that gold that got shipped to India & China ain’t ever
coming back into Western hands … not at any price. Recently, in one of my
blog posts, I asked the question, and it wasn’t rhetorical in nature; “WTF
happens when billions of ordinary, middle class Chinese, who’ve been recently
scammed in Chinese real estate, stocks that do nothing but go down, and a
depreciating currency, suddenly figure out that gold is the only game in town, cuz
it can’t be depreciated and has no third party counter risk”? To that, I’d add a
few billion Indians … now whaddaya got?
“Answer: You got this guy times a few billion others”!
And now comes the uneasy moment when the COMEX is no longer the “price
discovery” mechanism it once was, the bullion banks are busted into
bankruptcy, and volatility and price movements in gold are gonna be “off the
charts” … and the new owners of the game are gonna be the ChiComs … and
“WHEN” not “IF”, the Yuan crude oil futures surpass the NYMEX in volume
and open interest … “well, now it gets really interesting, cuz remember, profits in
Yuan in the crude oil futures can be taken in gold bullion at the discretion of the
account holder … somebody explain to me … exactly where do U.S. markets fit in
here anymore, with declining global hegemony & a depreciating U.S. Dollar cuz
there is no longer complete dominance of payment for oil in dollars anymore?
… Bueller? … Bueller”?
So, what does it mean? … It means, at some point here real soon SHTF … and
by analogy, as an “out of the blue” meltdown in stocks led to the “FANGS”
getting “monkey hammered” in days, giving up gains it took months if not years
to accumulate, the OPPOSITE is gonna happen in gold at some point … “all the
gold market needs is a “CATALYST” to start the melt up in price … could it be the
midterms in 1 week? Could it be a rapidly depreciating dollar cuz the FED
reverses course? Could it be a further meltdown of stocks? Could it be the sudden
insolvency of a bullion bank? Could it be sudden and rapid demand for 1 OZ. bars
& 1 OZ coins, from the Chinese & Indians? … “yup to all of them and things
nobody can foresee … that’s why they call them “Black Swans”, to borrow the
phrase from Nick Taleb”.
Natch, it could start 10 minutes from now, or take another 10 years … I
dunno, they don’t email me and let me know … point is, it’s gonna happen,
and when it does, not only is the PAMM, but those in the C2 advisory signals,
going to be perfectly positioned to take advantage … “right now, we’re sitting in
the “eye” of the CAT5+ hurricane … you can see things aren’t right, that
financially, this country is fucked beyond belief, and that the books of the U.S.
are, to put it mildly, out of fucking control like a drunk going down a mountain
road at 100 MPH in a Ferrari… trillion dollar deficits as far as the eye can see,
and if the Libtards get back in power? … OMG, the floodgates of money printing
& QE will be mind boggling”! Of course, the ChiComs & others don’t want to
pay a higher price for bullion … they’d prefer to pick it up, “on the cheap”, so
the “great game” continues with the bullion banks versus the rest of the world.
In the end, though, we all know who wins and who loses “bigly & yuge”!
Turning to today’s gold market … “well, that escalated quickly to the downside,
didn’t it? … seems the “Chuckleheads” in Asia & early European traders are
puking … why should it be a surprise? … you think they can’t see the same
charts I put up yesterday, with 10/11 days highs getting shoved where the sun
don’t shine”?
Meanwhile, over in FX land, USDCNH keeps quietly threatening 7.0000
… “you know, the “line in the sand” for said ChiComs, that we’ve been told
repeatedly by the “smartest people in the room”, will be vigorously defended at
all costs by the regime”? Yes, reminds me of the old EURCHF “line in the sand”
at 1.20, that got wiped out in seconds when they changed their mind cuz they
didn’t like throwing money away … EXIT QUESTIONS: “If we can take their
word, then why is the USDCNH still above 6.9700, threatening today 6.9800, and
refusing to go lower? … If I didn’t know better, I’d think the market was calling
their bluff? … What does the market know that we don’t”? [HINT: “Wake up
some morning real soon and find out”!] USDCNH has been higher seven [7]
months in a row … around March 1, 2018 it was trading at 6.2400 … take an
approximate 10% depreciation since then, and you find the rate about where it
is now … “oh wait, doesn’t that wipe out most of the tariffs President Trump
levied, cuz the currency is cheaper”? … Oh, it’s good to be a gansta!
Starting at the open here in New York [7AM EST.], and gold has an $10+ range
to the downside … can 1220 get “taken out”? Will USDCNH continue
northward towards 7.0000, which on the surface is bearish for gold, but lately
the ChiComs have let the peg go? … was yesterday a short term bottom in
stocks, that got saved by the “Plunge Protection Team” [PPT] in the last hour,
and will we see the gold versus SP500 inverse correlation fall apart at the
seams? We’re about to find out.
Almost Noon in New York, and again we see bullshit trading, with no range
… volume is better, but since 7AM, almost 5 hours ago, all we got is a measly $5
buck range tip-to-tip, with most of the time in a $2 - $3 range … “this is
bullshit at its best, but I understand why it is so … nobody really wants to go out
on a hook until they see what the SP500 is gonna do come the P.M. … guess
wrong, and you’re toast”! Again, spikes up/down that go nowhere, then
minutes on end of boredom, until the next SP500 panic attack, and gold
traders react … it is what it is, but unless you wanna scalp for 30 -50 cents,
and then get blitzed by a $1 move against you that eats up 2 or 3 of your gains,
what the hell is there to do but watch and show discipline & patience?
OK, there’s the day … can’t even get $3.50 bucks in 6 hours … 9AM - 3PM,
and it’s nothing but a bucket of shit … again … won’t rally, won’t break
… just sits and teases, while the bullion dealers try and get suckers to buy or
sell support/resistance breakouts, so they can fade them … bottom line,
though, is simply the “Great bullion Wall of Selling” is very much still intact.
No PAMM trades today.
“Seriously, what am I supposed to do when the largest rally all day is about
$1.50 - $1.75, and that’s if you caught it perfectly … intraday volatility so low, I
need an electron microscope to find it”. Like I said, all we can do is wait and
show patience & discipline, cuz anything else and you just give money away
for nothing, and that’s defined as “stupid shit”.
Onto tomorrow, we’ll see what happens … I’m outta here … until tomorrow
mi amigos … Onward & Upward!!
PAMM Spreadsheet directly below [in old format].
click to enlarge
Have a great day everybody!!
-vegas
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