by Jeff Nielson, Bullion Bulls:
For 6 ½ months; readers have been warned that the anemic advance in gold and silver prices over this period of time was/is a Fake Rally. The arguments in favor of this conclusion are almost too numerous to list.
a) Gold and silver are currently undervalued by roughly an order of magnitude, and in the case of silver, closer to two orders of magnitude. In any legitimate rally, the upward slope in prices would have been much, much steeper.
b) In a legitimate rally, silver always outperforms gold. Yet despite silver being undervalued versus gold by roughly an order of magnitude, the price of silver lagged the price of gold originally, and has barely kept pace throughout this sluggish “rally”.
c) For the first few months of this “rally” we saw relentless hype from the mainstream media pumping gold – and only gold. Since then, the propaganda machine has reverted back to the same, anti-gold nonsense which we have seen for (in particular) the last 5 ½ years: the Fed rules the gold market. In a real rally, metals prices would continue to advance irrespective of the same Serial Liars repeating the same lie they have been spewing for eight years – that the Federal Reserve is going to raise interest rates “soon.”
d) The motive for the crime: preparing for the Next Crash. The next premeditated take-down of our markets (and economies) has now been telegraphed, unequivocally, for several months. All we wait for is the trigger/detonation. Obviously the banking Crime Syndicate will not allow gold and silver to rally during this Crash. So metals prices have been marched slightly higher so that they can be slammed lower that much harder.
The “case” for a Fake Rally is already conclusive. The quantum of the change in prices is totally inadequate to constitute a real rally. The nature of the change in prices (i.e. silver failing to grossly outperform gold) is indicative of a Fake Rally. The propaganda – and the change in that propaganda – shows that this is not a legitimate rally. Finally, we have an iron-clad motive for the Fake Rally: setting up gold and silver markets for a hard crash.
For those readers who choose to be Skeptics simply because they want to believe that the anemic advance in prices this year is a real rally, we now have even more evidence to dash such hopes. Western central banks have been accumulating large quantities of shares in major gold and silver mining companies. Why?
Yes, these fraud factories are up-to-their-eyeballs in “asset purchases”. But look at the pattern. They are buying up their own, worthless bonds, to protect their bond-bubbles. They are buying corporate equities to (especially in the case of the U.S.) prop up the equity market bubbles – bubbles that they created. All those asset purchases fall into a precise pattern.
The purchases of shares of gold and silver miners cannot possibly be rationalized along side of these other asset purchases. Even after the substantial advance in share prices, gold and silver miners remain radically undervalued. Companies whose shares were priced at roughly 5% of their fair-market value are now at 10% of their fair-market value. There are no bubbles being protected by engaging in such asset purchases.
We already know that Western central banks hate gold (and silver):
…[Western] central banks stand ready to lease gold in increasing quantities should the price rise.
– Testimony of [Federal Reserve] Chairman Alan Greenspan, July 24th 1998
“Leasing” gold is a fraudulent transaction with only one (nefarious) purpose: to artificially depress the price of gold – i.e. to manipulate it lower. These same central banks have no programs or policies to elevate gold (or silver) prices. Their manipulation of precious metals markets is a one-way game: always down.
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