- Some of you have noticed gold soaring against the Franc and the Euro. Some are cheering “gold makes new highs!” against these paper currencies.
- While I argued in the past against the kitco math calculation that claimed gold was only rising a bit because the dollar had fallen,it’s key to understand that gold trades mainly in US dollars.
- The price of gold against the Euro and Franc is not really independently created. The price of gold is mainly determined by the price on the various exchanges in London and New York, where it trade in US dollars.
- The Franc tanked against the dollar, as did the euro, this week. Gold didn’t rise against the franc and the euro because of demand for gold from the Swiss or Europeans. It rose mathematically, because of the loss of price of the franc and the euro against the dollar.
- There is demand for gold, and then there is mathematics. If the dollar tanks against the franc and the euro, are the gold writers going to say, “gold is tanking against the euro and the franc?”. No. They will remain quiet, especially if gold is not rallying against the dollar as it falls against the other paperbug currencies.
- This bull market for gold is about the dollar. The dollar is being devalued, and has a high probability of being devalued to a much greater extent at a much faster rate, than you have witnessed since the dollar has been in existence. Very soon. Down the road, the next bull market for gold may be about the yuan or some global paperbug currency. We’ll watch the punisher take care of all comers, as they come, but for now, the paperbug that has to face the gold punisher is… the dollar.
- What happens to the other currencies against gold is like worrying about what happens at the concession stand at a rock concert. Watch the main stage, not the bathrooms.
- What you should focus on, if want a real adrenaline rush rather than a paperbug one, is the fact that while the USD ripped thru the euro and gold-back franc, it couldn’t do anything but put a mosquito bite on the punisher! Gold ended the week at 1858 (!), while the franc and euro ended the week against the dollar like somebody that fell into a leech pit for a week.
- That’s how powerful and mighty gold is right now; a mauling of the euro and even the “untouchable” franc, and gold ends the week with a mosquito bite!
- Eric Sprott says silver is going to $1200, if gold goes to Big Jim Sinclair’s new $12,000 target. I told him years ago that the OTC derivatives blowout numbers are vastly bigger than is reported, in the hundreds of trillions, and I expected this crisis to end with millions standing in breadlines. He’s worried about bank accounts, and the question is,
- ARE YOU?
- GoldLion told me this morning he believes the time the comex goes to a cash market for gold and silver is likely going to be around the time the comex has an open interest of 1.5 to 2 million gold contracts. I told those of you who have been with me since the beginning, that the idea that the banksters would blow up at gold $340 on a theoretical short position that never really existed was preposterous, and they could carry many millions of gold contracts, without leverage, both long and short, easily. I was laughed at, by leveraged futures traders, who thought the banksters were only short gold, and wanted to “hold it down”, so they were “destined to blow up”. Wrong on all counts.
- Team leverage is not going to be laughing very hard, when the banksters really execute on their plan to end all leverage in gold trading. They are going to feel “fear beyond fear”, as it really happens. Don’t become one of the idiots that is going to make millions as gold soars to thousands of dollars an ounce, and then have it all taken away, and more, as the banksters turn out the leveraged traders’ lights, permanently.
- Don’t put your head in the sand, when it comes to the safety of bank accounts and leveraged futures trading. This isn’t a funny joke or a theory to sell newsletters. This isn’t 1979, when you had the stupidest people in the gold community building bunkers while the top players laughed, and got richer. “Everything the gold community thought would happen in the last bull market.. is happening now” – Jim Sinclair. Sand in the leveraged futures hourglass is running down, and when it drains out, it explodes. The current margin increases only reflect the increased value of the gold contract itself, while the bozo patrol calls them “outrageous takedowns”.
- I don’t consider anything that has happened in the gold and silver markets since 1999 to be a real margin increase, but it’s coming, and it is going to blow every-leveraged-one away, as it happens. Obviously, when the value of a 100 ounce gold contract at $250 an ounce is $25,000, versus $185,000 now at $1850 an ounce. Margins are higher now than they were then, but they are still only about $10,000. The percentage is unchanged, for all practical purposes.
- Does anyone really know just how much leverage is in the gold market? Hedge funds get loans from the banksters to use even more leverage than the 18 to 1 provided by the exchange!
- There’s only one winner when leverage is changed from 18 to 1, to 1 to 1, and that winner is the banksters. They take ALL THE GOLD, and the question is, are YOU onside when it happens? If you are trading gold using full margins, don’t think you can predict when it happens, because all you’ll be doing is predicting when you get totally destroyed by the banksters. Nobody is going to outsmart gold, in any way, from the time we started to rise from $1478. No trader, no analyst, nobody, is going to beat the performance of unleveraged gold against the dollar with any kind of timing or leveraged scheme from that point forwards.
- The amount of loss booking you are going to see, by flip traders and levered lunatics, as gold launches its all-epic attack on the dollar is going to be surreal. It’s going to look like a giant freight train going thru a billion toothpicks at 500mph. There won’t beany toothpicks that survive.
- Leveraged traders are a TARGET of the banksters. Bigtime. The bait on the monster-size trap is being set now, and the banksters don’t just want some of the fundsters’ gold. They want it ALL. Think hard about that. The amount of carrot the banksters are going to feed team leverage is “beyond bug bunny’s wildest dreams”. The $50-30 move on silver may not be visible on the chart with the naked eye, the up move is going to be so big. Team leverage is going to pumped up with so much price-chasing adrenaline by the banksters it is literally unimaginable right now. The leveraged marks will see their accounts rising by 100% every single day, and they will go into a dream world that it will never end.
- It will end. It will be ended by the banksters and they’ll take everything from team leverage, and I mean everything. Picture silver at say, $600 an ounce and it feels “solid”. It’s just like gold!” -Levered wienerbrain, 2012-2014? It’s rising $10 a day, every day. You are up 15,000% in your trading account, and then one Sunday nite, the banksters turn out the lights. Silver opens at say, $280. You loaded up more and more from $300, buying the $10 “dips”. You look like an upside down pgen. When the lights go out, you are totally bankrupt and the banksters take your silver, all of it. Then the price rises back to $600, and far beyond.
- It’s all real, and it’s all coming to team leverage, the horror of horrors, to make thousands of percent on the way up, and then in a light switch moment, it’s all gone, and the banksters have it all.
- Greed is a force of ultimate destruction, and more so in an ultimate crisis. Gold, related items, and patience are all the leverage you need to get vastly richer, from here on in, in this crisis, but very few really understand.
- On a smaller level, a similar event may be very near for team stock market shorty pants. Put options, or a short position that is smaller than your base long position, are how to play the Dow in crash season, which is now. But you need to und
erstand that the banksters will likely close down the system if the Dow starts to go under 8000 and towards the 6500 lows. Shorting would in all likelihood be totally banned. A forced reval of gold goes right to the front burner of possible action by Tim “the terminator” Geithner, if a Dow roast-o-rama happens. The Dow could GAP UP by 5,000 or 10,000 points if gold got a forced raval of 100% or more. In the 1930s the reval was 70%, and that crisis was a drop in the bucket compared to this OTC derivatives super monster. Team shorty pants would look like team charcoal, and it could happen in one second. The banksters are playing large, here and now, and those in their way could experience mindboggling pain, as the banksters’ greatest wealth transfer schemes (GWTs) go into action mode.
- Report Card Day. A lot is happening and happening fast. This week saw Newmont at all-time highs, gold bullion untouchable while both the euro and franc were chain-sawed, GDX down 85 cents while the Dow crashed 300. The theme is gold, gold, and gold! Remember where we’ve come from. I’ll go over some of the key markets, like GDXJ, on the sites today, like GDXJ. It’s a time to look back at just how powerful this rally has been. Yes, a lot that is gold-related remains underwater, but the big picture is that in the short term we have moved up a lot, and when the leaders retrace, those that are still underway can look worse, before seeing any sunlight. Gold has moved hundreds of dollars higher, and is holding these gains. Click HERE NOW to see GDXJ against the Dow! Take a look at what I posted about this on the site. The bottom line is that gold juniors have risen from 26 to 35 against the Dow, just since June! Spend some time this week-end thinking about the phenomenal progress made by gold stocks since June, and what is really going on in this crisis, and how prepared you really are, for what really is coming.