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Check out the following news release this morning:

Gold ends lower as safe-haven bids dwindle – MarketWatch June 19, 2012

This is exactly the kind of MSM stupidity that passes as news.   Pray tell exactly what has happened in the last 24 hours to make gold less of a “safe-haven”?  What we are dealing with here is either gross incompetence by those writing this crap, or the markets really are servants to the short-term motivated hedge funds.

Today, the dollar was down, the stock market was up and still, gold was down.  I thought gold was supposed to move opposite to the dollar?  Well, the dollar and gold aren’t linked at the hip.  Gold is now gaining independence from its link to the dollar.  Up or down, whichever way the dollar goes (and most certainly that will be down, soon enough) gold is going UP.  With all the new gold buying (physicals) emanating from China, both the public and the central bank, and the change in over-all central bank policy from selling gold to buying gold, there is no way the paper manipulation on the COMEX will be able to hold back the bull market.  In the end, it is the DEMAND FOR PHYSICAL gold and silver that will determine the price, not some paper algorithm or futures contract.

On more than one occasion, Jim Sinclair told his readers to go dig a hole, climb in and cover it over with a rock – and don’t come out for several months.  That, dear readers, is the way to deal with the day to day misinformation and market manipulation that tends to drive most precious metals enthusiasts up the wall.

I think it’s important to remind you that gold and silver are in a bull market that still has a long way to go.  We haven’t even started the blow-off phase yet, and all bull markets go through that stage before they crash and burn.  When your hair dresser and the guy bagging groceries are giving you tips on mining shares and gold coins, then the bull market will be nearing the end.  These days, if you talk to your friends and relatives about the demise of the dollar and the necessity of owning gold and silver, they will look at you like you are crazy.  The truth is, if you try and talk your friends and family into owning gold and silver, you are crazy.  They won’t listen!  Let them figure it out on their own.  Mention it once, and if they don’t want to hear about it, forget it.  You are wasting your time.  Eventually they will figure it out, without your help, but they will pay dearly for waiting too long to convert their dwindling dollar portfolios into soaring precious metals.  But that’s their problem, not yours.  Was it an old Arab proverb that said, “You can lead a camel to water, but you can’t force it to drink?

My long-time friend, “James” tells me the reason he refuses to load up on gold and silver is because he is afraid to take the “risk.”  “Risk!”  The only “risk” is in not doing what I tell him to do.  He has listened carefully to my rationale for a decade and still has only a few percent of his net worth in the metals.  And then, only in the ETFs (which I urged him to avoid) and mining shares.  He has NO physicals.

He prefers to manage his own portfolio of over 100 common stocks and is glued to the TV every single day, soaking up every word from the goons at CNBC.  He thinks the sun rises and sets on Kramer and Najarian.  I ask him why his net worth is less today than it was in 2000 and why mine has increased five-fold in the same time frame, if the guys at CNBC are so bright and my advice is so “risky”?  I’m still waiting for an answer.

Onto another subject, I think it is very significant that since the first of the year,

Richard Russell, Jim Sinclair and Ted Butler all have done a turn-about and admitted that the gold and silver markets are manipulated by the government (PPT) and the Fed.

People like Bill Murphy, GATA, John Embry, Ranting Andy Hoffman and yes, even me have been writing about this for years and years and like Rodney Dangerfield says, “We don’t get any respect!”  That’s still true in many quarters.  My buddy trader David R scoffs at the idea.  So do Backwoods Jack’s kids.  But I’m patient, and they will come around too – at some point.  But I don’t expect a recant from Charlie Munger and Warren Buffet, but as Clark Gable said to Vivien Leigh, “Frankly, my dear, I don’t give a damn!”

In the chart, below, note gold’s fall in the AFTERMARKET.  What seller-for-profit will dump Gold after the market closes, when the volume is almost non-existent, which guarantees the lowest possible price?  Well, if you were trying to “paint the tape”…