by Thomas Goehle, SGT Report.com:
I want to start by bringing up a few examples of how the metals experts continue to underestimate those in power. I start with the examples below, not so much to criticize, but to underpin what I have to say about how underestimating the powers-that-be (TPTB) ties in with confiscation of the purchasing power of our metals.
I think one thing that confounds me is that if the metals experts know that all markets are manipulated then why are they “surprised” that things continue for as long as they have? We’re always told that “it can’t go on much longer.” As Andrew McGuire told Eric King 7 weeks or so ago concerning the paper gold price dipping below 1300 – it’s “unsustainable.” Yes, we heard it was unsustainable when gold dipped below 1700, 1600, and then 1500 because of the “imminent” failure to deliver (default) and also because the Chinese were “putting a floor under the price.” Well that “floor” is about four floors down now at $1250.
Likewise, I don’t understand David Morgan’s prediction that gold can’t go lower because of what he labels the “Shanghai put.” When gold slipped from 1920 to 1750 we heard the same thing. It can’t go much lower because of the “Chinese floor.” In an interview with Greg Hunter on December 17, Morgan stated concerning gold, “definitely the bottom is in.” Actually, we won’t know this until at least 6 months to a year after the fact.
However I agree with Morgan that $26 for silver is the first hurdle and 1550 (I would argue 1485) is overhead resistance for gold. Those targets are a long way off. His call for $30-34 silver and $1700 gold by year’s end seems improbable to me. I don’t think the paper metal prices are going anywhere this year despite Morgan’s prediction or Turk’s call for an “explosion” in the metals prices for 2014. I think we have a better chance of hitting $1000 for paper gold this year than $1500. Why would anyone be surprised? The markets are manipulated.
Moreover, many folks continue to underestimate the lengths TPTB will go to achieve their nefarious agendas. Many continue to underestimate the power and influence and coordination it takes to continue this fraud. But the cheating and manipulating go on unabated. I just don’t understand how anyone who is awake can continue to be mystified by this anymore.
I think the single most important thing to watch is the 10yr note. When the 10yr breaks 3.00 and holds above 3.5 for 6 months or more, things will start to get interesting. Look how desperately they are defending 3.00 on the 10yr right now. When we get over 4.00 on the 10yr then things will really start to crack. As long as they can hold interest rates down, this whole fabricated economy could go on for a while. I certainly don’t foresee hyperinflation (Williams) occurring this year, for example.
This is what the experts in the metals market really don’t understand and why I decided to write this article. We are probably not going to be living in paradigm1 a whole lot longer (5-10 years tops) where everything is relatively normal. So, to take just one example, when Mike Maloney (who I respect for his historical work on the metals and fiat) blissfully forecasts that the metals will protect our purchasing power, he and many others fail to realize what I think should be obvious by now, but apparently isn’t. By the time the metals rise in real terms (true price discovery) we probably won’t be living in paradigm1 anymore, we will be swiftly transitioning to paradigm2. You know, paradigm2 where there may be riots, martial law, more rights taken away, curfews, etc.. If this plays out like I think it will then I don’t foresee the purchasing power of our metals transitioning seamlessly from paradigm1 to paradigm2 like Maloney thinks. Do you really think TPTB are going to sit by and reward us for our prescience in purchasing precious metals? No, they are going to CONFISCATE a lot of purchasing power through TAXATION. IMHO if you haven’t already thought about this as a possibility then you may want to consider this as part of your preparation.
In conclusion, I still think the metals provide one of the best insurance policies for what’s coming and I also think the bull market in gold and silver will commence again – but not this year and probably not with the paper price mechanism. I think we need to look at the future price rise in metals in the context of paradigm2 where TPTB are taking our rights away on a daily basis. Why then would you think they are going to sit by and watch those that oppose them get rich? I am bringing up the possibility of confiscation through taxation for all of us to think about because the experts won’t talk about this and they seem continually “surprised” by the efficacy of the manipulators. Considering where this country is heading, I think we need to include the possibility of confiscation through taxation as part of our financial and psychological preparation.
Manipulation won’t stop just because the paper markets will be a thing of the past someday. If we can foresee bail-ins for bank accounts and 401ks, then why is it so hard to imagine the cheaters and liars stealing purchasing power of the metals through taxation?
Godspeed to all- Tom G.