The Phaserl


Precious Metals Hammered, Illusions Shattered – Jeff Nielson

by Jeff Nielson, Sprott Money:

Gold at a 3 ½ month lowGold and silver step over a cliff.

One can almost see the smirks, and hear the chuckles of glee, as the mainstream flock crows their news.

What is missing from all the gold (and silver) bashing is one, small detail: a reason. Yes, sift through the Corporate media muck, and one will see explanations: “a stronger dollar” or “fears of a Fed rate increase”. Infantile nonsense.

A stronger dollar? Gold was down over 3%. Silver was down over 5%. The dollar gained no more than a fraction of 1% against international currencies, except for the pound, which is currently in the Brexit penalty box. That’s not a reason.

Fears of a Fed rate increase? That’s not a reason, that’s not even a good joke . “The Fed promises a rate increase”? That happens every day. The Fed actually raises interest rates? That’s happened once in eight years. Can you say “token increase”? Why not just write that gold and silver are lower because of fears of a sasquatch attack? The two events have roughly equal probability.

As has been stated in these commentaries before; there is only one way we will ever see the Federal Reserve engage in a meaningful increase in interest rates (i.e. more than once every eight years). That will be if their Masters at the One Bank give them the command – and the purpose of that command will be to torpedo the asset bubbles which this crime syndicate has spent eight years inflating.

Gold and silver have fallen off a cliff. The price of gold is at a 3-month low, and there is absolutely no reason or explanation for this latest ambush. Sound familiar? It should. Investors in this sector spent more than 5 ½ years watching days like this – and listening to the non-reasons from the mainstream drones. That period was previously dubbed Hostage Markets .

Many commentators in the Alternative Media will now start to proclaim that “the rally is over.” Few will acknowledge that it never began. This was the correct explanation when readers first began seeing the term “fake rally” in these commentaries seven months ago. It is the obvious explanation today.

Equally obvious is the reason for this fake rally, i.e. an upward price-fixing operation. The asset bubbles across the Western world are already so grossly over-inflated, and so rancid with age that only the near-omnipotent market manipulating machinery of the One Bank has been able to hold them intact this long.

Western equity markets and bond markets are at obvious bubble levels. U.S. bond and equity markets are at simultaneous all-time highs – and that’s not even supposed to be theoretically possible.

There is no more money to be made by this crime syndicate prolonging the life of these asset bubbles any longer. The vast majority of the ‘money’ in these markets belongs to the One Bank itself, the mountains of counterfeit funny-money which it has needed to deploy to first create these impossible bubbles , and then keep them inflated beyond any iota of rationality.

The Next Crash must occur soon because it is “good for business”: the business of organized crime. When that scheduled crash occurs, it is an absolute imperative in the minds of the banking crime syndicate that precious metals prices must simultaneously fall, as well – lest they be perceived by Western sheep as the safe havens which most of the world knows them to be.

But you can’t “crash” markets which are already at rock-bottom prices, thus the necessity of the Fake Rally: a small climb before a big fall. The Next Crash must happen, equally a Fake Rally had to precede it. That upward price-fixing operation is now over, leaving two scenarios moving forward.

The first scenario is that (finally) the detonation of the Next Crash is nigh at hand. Gold and silver prices will now bounce steadily lower, either slightly preceding a broader crash, or simultaneous with it. The other scenario is that we could see some ludicrous holding pattern, if (for some reason) the banksters still aren’t ready to sheer the Sheep.

In the second scenario, we’ll see gold and silver prices (pathetically) inch higher most days, but then we will see periodic ambush-days like today, where all the price gains of several weeks are erased in one day. Indeed, given their Machiavellian tendencies, we might even see the banksters play this game for several months – just to see how long the chumps in the Alternative Media continue to call this “a rally”.

There have never been any sound reasons to characterize this upward price-fixing operation as a rally. After the price of silver had been driven down by roughly 75% from its 2011 high, and the price of gold had been driven lower by more than 40%, silver has recovered about 20% of that lost ground. Gold recovered only about 1/3 rd of its lost ground.

Pathetic. Ridiculous. In any real rally, the price of gold and silver would already be hitting new highs, or at least closing in on those numbers – as the first step toward rational prices for these metals. A previous commentary calculated how long it would have taken gold and silver to reach fair/rational prices, at the rate of the current “rally”: about 25 years.

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6 comments to Precious Metals Hammered, Illusions Shattered – Jeff Nielson

  • Eric

    Down and down she goes, where she stops nobody knows.

    Perhaps a coordinated takedown before the unemployment report. Maybe a pre-disintegration of the Eurozone to make Gold not look like the ultimate safehaven that it is.

    Lean hogs is up.
    Lumber is up.
    Crude is up.
    Soybean oil is up.
    USD is up.

    When it gets to 1200, I’ll start buying more. Today seems like a good day to buy some bacon instead.

  • Eric

    Going out of business sale! Everything must go!!!

  • d

    Print the names of the traders that dump countless FUTURE contracts on the market at lamba opening every day….and maybe then when the light of truth hits THEM….and GOD invokes his judgement on them…PM markets can return to a ‘market free of thieves’……imho

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