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Last minute comments

It’s 4:25 a.m. here in Minneapolis and I am checking out the markets in Asia and London. Gold is already back UP $19.40, and rapidly rising, to $1,668.20, and silver is up $0.81 to $39.69. The industrial commodities, oil (down $0.51 to 86.12), platinum (down $18 to $1,703) and palladium (down $5 to $739) are lower, but starting to recover. The big moves UP by gold and silver are telling, as they are truly starting to perform like monetary safe-haven currencies rather than as jewelry or a commodity. It will be most interesting to see what happens when Comex opens in NY at 8.

So much for Nadler at Kitco and the fools over at the World Gold Council who have, for over a decade, refused to acknowledge gold’s monetary role and tout it only as jewelry. You have read otherwise, in these pages, for a decade!

I tell you, it won’t be long now before a “gold or silver bear” will be an extinct species! I think Nadler should go into hibernation this fall.

I am impressed with the recovery shown by gold and silver. In the past, after a drop like we witnessed yesterday, it would take quite a while for gold and especially silver to recover. Like I have been preaching for some time now, the corrections are over quickly and the recovery is fast and furious. Do you know why? Because the take downs are “paper” take downs on Comex and then the “physical” buyers (in Asia and the middle east) jump right back in to take advantage of the lower prices and kaboom – back up they go. Make no mistake about it, this is a bull market that is starting to snort and kick dirt in the face of the traders in NYC who dare to go short.

In the gold chart, below, note that from peak-to-valley, (the current price is $1,668) gold fell “four squares” but in less than 24 hours has already retraced “three squares.” If the price holds, or rises even more, this is truly a remarkable thing. Perhaps the gold and silver markets are gaining steam by “osmosis,” from the GATA Conference in London, which begins now. This is more proof that it is only the “paper” fraud on Comex that takes gold and silver down. Once out of the US, the physical market kicks in and the prices start to rise. The “shorts” are playing with fire and one day very soon will be badly burned!

Since this is my last daily for a month, it is much longer than usual. (I must be feeling guilty! Just as so many of you, my dear readers, are addicted to reading this daily, I am addicted to writing it. I may go into withdrawal, along with you, for the next few weeks.) Plus, today was an unusual day in the markets, all of the markets, and I want you to be on top of what is happening.

In today’s daily, I have stolen a few paragraphs from Ted Butler’s outstanding newsletter and also part of an article from Whiskey & Gunpowder that I think you will find very interesting.  I have also gone back on my word, and inserted some of the latest comments by NIA – but with a few big caveats, prior to the article.

Don’t let today’s pullback in gold bother you. In the bigger picture, gold is up over 11% in the last month, in spite of the pullback. Some will tell you it is just normal profit taking. I say it is another blatant attack by the Cartel – the four large bullion banks, shorting like mad, pulling bids and forcing the weak longs to run for the hills. These crooks lost $1.5 billion yesterday (in gold and silver) but make it all back today and then some. I suspect our friends in Asia, Russia and the Middle East will smile and buy a lot of physical gold and silver on Friday.

It appears that the dollars gold are the place investors want to park their money now. Platinum, palladium, copper and the entire mining share sector were hit hard – along with the broader stock market.

Just before 2:30 p.m. Eastern, the Dow Jones Industrial Average fell 410 points, or 3.5 percent, to 11,486. The S&P 500 lost 47, or 3.7 percent, to 1,213. The Nasdaq composite shed 102, or 3.8 percent, to 2,590. The losses in the Dow were the largest since June 2010, when it fell 323 points.

Money poured into investments that are seen as relatively safe when markets are turbulent. Gold fell marginally to $1,648. The yield on the 10-year Treasury note fell to 2.51 percent, its lowest level of the year. The yield on the 2-year Treasury note hit a record low of 0.265 percent. Bond yields fall when demand for them increases. The Dow tumbled over 500 points. Pretty much the only people who did not lose money today are those who have none to lose. Gold and silver gave up all of their juicy gains from this week. Like Sinclair warned, “gold (and silver) will be very choppy between $1,600 and $1,764. Get used to this kind of action, but the trend still remains very, very bullish. Those of you waiting for a pullback before placing an order, especially in silver, well – now is the time to act. Give us a call at (800) 822-8080.

Large investors have moved so much money into cash accounts at Bank of New York that on Thursday the bank said it would begin charging some clients a 0.13 percent fee to hold their cash. I say – why would anyone keep all that money in cash, receiving no interest, or in this case, paying for the privilege to park their dollars, when gold has risen 10% in the last month and 40% in the last year? There are none so blind as those who refuse to see!!!