It appears that the only thing holding gold back now, are withdrawals from SPDR, but there is sufficient buying power out of Asia to easily absorb the ETF gold that is hitting the market. Julian Phillips says, “The gold price continues to consolidate, but this week has seen it move to the top of the trading range at $1,365. The SPDR gold ETF and COMEX Gold Trust funds continue to see strong selling, losing more than 17 tonnes this week. With premiums in Asia persisting, unless gold supplies continue from the ETFs, we should see gold break through the $1,370 the current key point of resistance.
The main downward pressure continues to come from sales of shares of the U.S. based gold ETF SPDR, which shed another 17+ tonnes from its holdings. With such a robust gold price, it is clear that Asian demand is more than sufficient to take all offers. Let’s not forget the central banks of Russia and China’s ongoing purchases. The fundamentals for gold still have not changed, so we do not believe this is a trend change.”
I’m turning into a certifiable “night owl.” I usually wake up around 2 or 3 a.m. to put the finishing touches on the daily and now, at 2 a.m. I see that gold is back UP over $60, silver is back UP over $30, platinum is UP $21 and palladium is UP $11. It looks like an encouraging start for the week. My gut tells me that the metals are close to turning up again after a six-week minor correction. Now that things have settled down, somewhat, in Egypt, the PPT can ease up on their gold price suppression. The last thing the government needs in a time of crisis is for gold to take off. They can’t let the people start to believe that gold is a better “safe haven” than the dollar, now can they!
Do you remember playing “Musical Chairs” in grade school? That was the game where we all ran around in a circle until the music stopped and then everyone scrambled to get an empty chair. The problem was that there were not enough chairs for everyone and you had to be nimble, and lucky to stay in the game. Well, today we will all have to play an adult version of musical chairs. This time, when the music stops, instead of scrambling for an empty chair, there will be a mad scramble for gold and especially for silver coins. But in this adult version, if you lose out the consequences will be severe. With less than 1% of global investment funds directed into precious metals, and the handful of mints (US, Canadian, Australian, South African and Austrian) working round-the-clock to satisfy demand, it won’t take much for the music to stop.
How obvious can it be? You do NOT want to be caught with your net worth in dollars when the game is up. Many of you write to me and say “It will never happen. China and Japan own too many dollars and they will have to come to the rescue.” I say nonsense! Soon, it will be every man for himself and every country for itself. Can’t you see what’s coming? Food and energy are costing more dollars by the day and look at gold’s 10-year bull market. The signs are right here, in front of you. The dollar is already losing buying power. The government and the Fed can doctor statistics (which they do) to make it appear that inflation is not an issue but gold, oil, copper and bread play a different tune.
You can play this game in either of two ways. You can buy enough physical gold and silver to protect your family – your “financial insurance policy,” or you can load up the boat with gold, silver and mining shares and take an active part in the most spectacular bull market in your lifetime, and that includes the Nasdaq bubble and the housing bubble. Richard Russell says “there is no bull market like a gold bull market.” The reason this is true is because most bubbles are fueled by greed. But the gold bull market will be a fueled by FEAR and greed. Fear is a stronger motivator. By the time that most people figure out that our dollar-based fiat currency system is broken and they scramble to trade in their depreciating dollars for real money, gold and silver, it will be too late.
Andy and I are partners in a corporation that is about to launch gold dispensing machines. They are like the ATM machines that you see in super markets and outside of banks, but they dispense gold instead of dollars. It may be a rather short-lived venture. At the very time that everyone wants to buy gold coins, we will probably find it difficult, if not impossible to supply the machines with product.
The Emails keep coming in. I am humbled by the outpouring of concern, sympathy and love from so many readers, most of whom I have never met. It is impossible to reply to all of you, but I assure you, I have personally read every single message. Here are a few of the Emails I received. Thanks again to all of you who took the time to write to me.
My sincere condolences on the passing of your brother. I have been a client of Bob Sichel’s for ten years. Your newsletter is the highlight of my days. It is of such quality that it (along with Maybury’s EWR) is the best I could have. I particularly appreciate the
personal part that you include. I feel that I know you and your family personally and wish you all the best. Wiley ps also made a lot of money from your recommendations
Please accept my condolences on the death of your brother.
Thank you, also, for the help that I received from Mr. Michael Spector on my first gold purchase.
I was not familiar with your company and I was worried about pre paying for my purchase.
The Casey Research recommendation and Michael gave me enough confidence to proceed with my first purchase.
Incidentally, I look forward every day to receiving your newsletter.
Sorry to hear of your loss of a family member David. I know how that is, I lost my wife last March after 47 yrs. of marriage.
Reading your daily updates, when they don’t come for any reason are greatly missed. I very much enjoyed your recent daily describing your Bio of your moving into the precious metal investment area.
I became a rabid Silver investor about the same time, and have been quite thankful ever since. Being a somewhat aging old geezer (76) it gave me a much better sense of security.
I really appreciate getting your NEWS LETTER every day !..today was ‘Special and Different . You really spoke to me, from your Heart. I to, am 68. I Send off your News Letter to Folks on my list’. As you can see I am not a typist ! I do not know how to ”Paragraph things. Excuse me. I Also feel the Same way You Do About this MESS”
What I want To say is “Thank You,” for your Words, and thoughts. I also Follow ALL the brains you listed, especially Sinclair. I do not hold ”Paper,” just the Physical Gold/ Silver. Please Keep Up YOUR WORK” ..
A BIG FAN ,
I send my condolences to you upon the death of your brother. As I age, I know more and more, you are right; there is nothing more important than a loving family. Thanks for sharing with your readers, including me, a little about your own life. I have been a customer of yours since the Swiss annuity days and I thank you for your insights along the way.
Wishing you grace and peace,
I am so sorry about your loss. I too lost a brother back in November, 2008 (to a sudden massive heart attack) and he was 54 (I’m 58 now) and he smoked 3 packs a day . Thanks for all you do. I’m an avid buyer of silver from Mike Spector.
We have never met, but my wife Carol and I live down the river from you in Wabasha, MN. Today’s Greetings from you about your brother’s death was great, even though you were not close over the years. I have four blood brothers and we are all close as brothers and families. You and I close to the same vintage I believe as I am 67 years old, you a bit younger (older?). We took our stand in gold and silver back in the Fall of 2009, after my wife’s research, then meeting Andy at a restaurant in St. Paul for lunch and going nearly all in with our 401K plan. We have never looked back questioning the move (almost never).
What I really appreciate is your honest and faith filled perspective on life when you relate to life and blessings of family. We can relate as we have two great daughters, two awesome sons (in-laws but just like sons) thanks to their great choices, and nine unbelievable grandchildren. Regardless of how we live out our golden years we will have the rewards of our labors and love to enjoy and rest on. We are blessed.
Money and things are important, but nothing compared to where we hope to spend eternity, for that is going to be a lot longer time. As we start to mature a little more we can only pray and trust the best is only ahead of us.
Miles Franklin Friend,
Tom & Carol B.
Very cool letter, even though your dad and Steven were not close, losing a brother must sting. Please convey my sympathy to your dad.
Mo and I do not have a will and I appreciate what your dad is saying and we are getting one drawn up.
When I first saw this I thought it was another “shitface” email. Thank god it wasn’t, don’t need to gag today. Love ya, brother.