1-800-822-8080 Contact Us

The purpose of today’s RANT – ONE OF MY MOST IMPORTANT – is to refute “Cartel Rule #1,” thou shalt not let gold rise when stock markets plummet.  Over the past decade, the Cartel has been unrelenting in its efforts to drive PM prices down during crises, particularly when the “DOW JONES PROPAGANDA AVERAGE” falls by more than the taboo daily amount of 100 points.  To date, their greatest success was the commencement of Global Meltdown I in late 2008 – when they succeeded in convincing the masses that PMs fell due to “liquidity issues” – when in fact it was THEM naked shorting with all their might, creating a PERCEPTION of such.  Those that own PHYSICAL metal know full well that PHYSICAL gold and silver prices never fell to $700/oz and $9/oz, respectively – as the PAPER prices did – and in fact, PHYSICAL silver bottomed closer to $16-$17/oz due to the nearly 100% premiums that developed while the Cartel attacked PAPER silver with naked shorts.

Moreover, such EXPLOSIVE PHYSICAL DEMAND yielded rapid rebounds, with PAPER gold and silver rising by 43% and 42%, respectively, between early November 2008 and the end of Global Meltdown I in early March 2009, while the Dow fell an additional 26% during this period.  My point being that – invariably – the PROPAGANDA that PMs are “risk assets” that decline with stock markets is a myth, as described in my April 25th RANT, “GOLD’S LONG-TERM CORRELATION TO EQUITIES, i.e. ZERO.”

This morning, for instance, we learned that Greece’s new government – if you can even call it that – plans to RENEGE on the “bailout deal,” as I SHOUTED FROM THE ROOFTOPS would occur for the past six months.  From the minute the second Greek “bailout” was discussed – and HYPED – last Fall, I vehemently espoused that such a deal would destroy Greece, and thus, it would be RENEGED on after its May elections, yielding either secession or expulsion from the Euro, hyperinflation, and social unrest.

Greek Left Coalition Leaders Says Bailout Accord “Null And Void”, Demands Greek Debt Moratorium

This information was public yesterday, so I find it comical that PMs are being smashed TODAY, particularly as this “news” was posted LITERALLY AT EXACTLY 6:20 AM EST – the open of the COMEX – yielding the WATERFALL DECLINE BELOW, as usual.  Meanwhile, the Dow opened down just 80 points, accomplishing TPTB’s goal of PAPER PMs performing worse than any market during a time of crisis – other than the dying HUI mining index, of course.

But let’s not get sidetracked from the point of this RANT, that PHYSICAL gold and silver – at least before Cartel operatives were stair-stepped higher last Fall – have been the BEST PERFORMING assets during times of crisis over the past decade, contrary to what the Cartel wants you to believe.

For starters, let’s go back to the initial Greek debt crisis, commencing April 27, 2010, when Standard & Poor’s downgraded its debt to junk status…

S&P downgrades Greek debt to junk status – April 27, 2010

…and ending when their highnesses at the EU and IMF – in all their lordly brilliance – PRINTED $147 billion for the first Greek “bailout”…

EU, IMF agree $147 billion bailout for Greece – May 2, 2010

I have created the charts below to start on precisely April 27, 2010, so you can see the vaunted Dow fell from 11,250 to 10,250 during this period – or 9% – and didn’t bottom until July 1st at 9,650, after having fallen 14%…

Conversely, gold rose from $1,140 to $1,250 – or 10% – topping out coincident with the Dow’s low on July 1st at $1,270, a nearly 12% gain.  In other words, gold not only rose sharply during a crisis – as it did in early 2009, when the Dow was plummeting to 6,600 – but demonstrated a 100% negative correlation.

Ditto for last Fall’s Global Meltdown II, catalyzed by S&P downgrading the U.S. debt rating from AAA to AA+ on August 6th, 2011…

S&P Strips U.S. of Top Credit Rating

Again, the charts below were scaled to commence on EXACTLY August 6th, and what a shock – the Dow plummeted from 12,250 to 10,600 – or 14%…

…while gold surged from $1,620/oz (roughly where we are today) to an ALL-TIME HIGH of $1,920/oz – or 19% – before the most recent “stair-stepping” of Cartel urgency commenced on September 6th, 2011 – hours after the Labor Day weekend, and minutes before the Swiss National Bank devalued the Franc 9% – i.e. “OPERATION PM ANNIHILATION I”…

The reason I mention “OPERATION PM ANNIHILATION I” so prominently – as well as the February 29th “LEAP DAY VIOLATION” – is that these two days represent MAJOR Cartel “stress points,” as was the case on “D-DAY,” i.e. November 9, 2010.  In all three cases, the Cartel experienced fear of the destruction of its SUPPRESSION SCHEME, and thus, exponentially increased its manipulation techniques.  After “D-DAY,” the HUI mining index was the primary target – via LIMITLESS, NAKED SHORTED SHARES – resulting in the catastrophic underperformance below, scaled to commence on EXACTLY November 9, 2010.  As you can see, the HUI has since plunged 30%…

…while gold has surged 17%…

However, the real kicker of this SPECIAL RANT is the table below, listing the DOW’s 16 WORST DAILY PERFORMANCES SINCE 2008.  I also noted how GOLD performed on those days, and even I – RANTING ANDY – was shocked by the results.  Not only was gold up 1.1% (on average) during these 16 days – in which the average Dow decline was 3.9% – but rose on ten of the 16 days, including an astounding eight when the vaunted Cartel “2.0% daily cap” was broken.  In fact, THREE OF GOLD’S BEST SIX DAYS of the past three-and-a-half years occurred during the DOW’S SIX WORST DAYS!

Peruse the “Notes” in the right column, and you’ll see gold was the premier “safe haven asset” during Global Meltdown I, Global Meltdown II, the first Greek Debt Crisis, and the “Flash Crash” – in other words, a variety of crisis moments.  In fact, of gold’s six down days above – averaging a measly 1.1% compared to 3.5% average Dow declines – two occurred AFTER “OPERATION PM ANNIHILATION I,” including gold’s worst day on the table.  This is simply the aforementioned “stair-stepping” of Cartel operatives in a desperate attempt to prevent gold from carrying out its PROVEN – per the table above – role as the pre-eminent SAFE HAVEN.

Thus, for those owning PHYSICAL gold and silver, sit back and relax – and if you have been considering adding to your holdings, think long and hard about why you wouldn’t make the conversion at today’s blatantly suppressed prices.  For those principally owning “PAPER PM Investments” such as ETFs, futures, and mining shares, your options are more limited – given the severe thrashing they are taking – but fortunately, it’s NEVER TOO LATE to make the right decision.

PROTECT YOURSELF, and do it NOW!