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Bernanke speaks – gold plunges.  Did you really expect anything else?  The Fed “might” start cutting back next summer!  Yeh and I might lose 15 pounds by then too.  I’ve been trying for the last decade, with not much success – but I am working extra hard at it now.

Ed Steer perfectly summed up gold and silver’s performance yesterday.  He wrote:

I hope you weren’t caught off guard by JPMorgan’s high-frequency traders yesterday morning…as any time that Bernanke speaks it’s a sure sign that the precious metals are about to be taken out to the woodshed…especially silver.  That turned out to be the case in spades yesterday.

Ted Butler mentioned that most of the long positions put on during last week’s rally in both metals were mostly, if not all, blown out of the water after yesterday’s engineered price decline…and that was probably the objective.

Based on JPMorgan’s aggressive in-house silver deliveries during the July delivery month, they still aren’t done covering their short positions in that metal.  It’s obviously still a work in progress…and it remains to be seen how long it takes.  We can’t see everything they’re doing, but it’s impossible to cover monster short positions in both gold and silver without leaving a debris trail 50 kilometers wide…and 200 long.  That’s pretty much what they’ve done…and if this is what we can see, it’s a safe bet that what they’ve accomplished behind the scenes is probably even more impressive than what we already know for sure.

Casey Research, July 18, 2013

This wonderful recovery that has Bernanke chirping about the Fed’s cutting back early next year took a set back in housing yesterday.  How can they allow interest rates to rise with housing looking very weak?
Bernanke tells Congress Fed flexible on bond buying
Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. central bank still expects to start scaling back its massive bond purchase program later this year, but he left open the option of changing that plan if the economic outlook shifted.
While sticking closely to a time line to wind down the bond buying that he first outlined last month, Bernanke went out of his way to stress that nothing was set in stone.
“Our asset purchases depend on economic and financial developments, but they are by no means on a pre-set course,” he told the House of Representatives Financial Services Committee.
Nothing has changed.  It’s print, or suffer a deflationary collapse of Biblical proportions.  This Reuters piece, filed from Washington, was posted on their website late Wednesday afternoon…and I thank Roy Stephens for today’s first story.
Continue reading article at Reuters.com
Following 45% Collapse, Mortgage Applications Are Back To 2011 Lows
For the 9th week of the last 10 mortgage applications fell (led by refinancings – down 55% from their peak). Now down an incredible 45% from its May highs – the largest 10-week plunge since December 2010 – overall mortgage activity is languishing around the lowest levels of the post-recession ‘recovery’. Year-over-year, applications have dropped 44% which is close to the worst on record as applications and mortgage rates track one another in their ‘whocouldaknowed’ perfectly correlated manner. It seems – for all those blinkered Pollyannas – given this morning starts and permits disaster, that home sales are the next shoe to drop and judging by the empirical relationship with apps and rates, the ‘surprise’ could be significant for many who remain hopeful.
This is another short story that was posted on the Zero Hedge website yesterday…and the charts alone are worth the trip.  I thank Manitoba reader Ulrike Marx for her first offering in today’s column.
Continue reading the article on Zero Hedge
Over at LeMetropole Café Bill Murphy wrote:

When Bernanke spoke live, the prices of gold and silver were trashed on NO NEWS! It is beyond sickening. Even before they were really trashed, gold was hit for $5 in seconds as it briefly took out $1300 on the upside. Silver was making some decent headway above $20 at the same time.

The last time Bernanke spoke a week ago at a dinner, gold went bonkers. Today, The Gold Cartel did their thing and crushed the price for NO REASON, taking much of the gains back made on the Bernanke speech back then. Gold was punished down to $1268 while the DOW was still UP. This is beyond disgusting. Perhaps Doug Casey will come out and tell his followers how “marvelous” it all is.

The bad guys at work…

Kitco Graph 7-17-13 1419

Perhaps they got ticked off with my headline yesterday how they will be “crushed.”

We have gone over how pivotal it is for gold and silver to close above $1300 and $20 respectively. The Gold Cartel knows that as well as we do, which is why they attacked this morning. Most importantly, they can’t gold handle going higher on any sort of Bernanke pontification. It is sick that the dimwit mainstream financial market press who cover the gold/silver markets continue to refuse to go there.

Le Metropole Café, July 17, 2013

Bill Holter presents two excellent articles today.  Below are the articles and please do read them.  I sent Bill a note telling him how much I liked it.  Most people, even the majority of our readers, are more focused on Bernanke’s latest jawboning (Holter calls it “Bernocchio babble”) than concentrating on the big picture and the underlying issues.  They will have no one to blame but themselves when you know what hits the fan and they are left mostly in paper instead of tangibles.  So few people know how to pull the trigger and buy when “there is blood on the streets.”

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Three weeks ago I had cataract surgery on my right eye.  I opted for the special replacement lens that has the same prescription as my reading glasses.  I go in for surgery on the left eye on Thursday morning so I will not be publishing a newsletter for Friday, though I probably could since the surgery is very gentle.

For those of you considering cataract surgery and most people over 60 probably could use it, it is less unpleasant than a trip to the dentist to have your teeth cleaned.  You are awake the whole time, you feel nothing, no pain, no discomfort, nothing.  It takes 10 to 15 minutes max and there is no after-surgery discomfort.  My vision was virtually perfect almost immediately after the surgery.  I had to wear a protective clear plastic shield over the eye for one night after the surgery, but that was it.  This is truly a medical miracle.

Even with just one eye corrected, I can throw away my glasses.  I can read small print, can see clearly both near and far and I was shocked by the change in the way I can see colors.  White had a light golden or beige tint and most colors were flat and subdued.  I can easily make the comparison because the left eye has not yet been corrected so I can look at a painting, or computer monitor, or TV, or the walls, and watch the colors change – by closing one eye at a time.

Medicare pays for the surgery unless you want the “prescription lens option” which will cost you $2,000 – $3,000 per eye, out of pocket.  In my case, I felt it was well worth it to be able to throw away my glasses.  I have lived with reading glasses (and later prescription glasses) since the late 1980s.  What a great experience!