Graceland Updates 4am-7am

July 30, 2010

1. As the markets shut down Friday, with my trading accounts at yet ANOTHERnew high, I ended the week by selling a block of inner core paper gold positions I’d bought into the $100 decline and buying the same dollar amount of more physical, at the same time, once again DOING in the market, myself, EXACTLY what I tell YOU to DO. 95% of what I tell you to do now, in the market, is what I’m doing now, myself, IN THE MARKET.

2. Telling you where the market is going is all very interesting. My suggestion is you focus on where your ACCOUNTS are going more than where the market is going. The tactics required for consistent gains entail more than drawing a broken trendline and pressing the “sell it all at the market before gold goes to zero!” button.

3. Buying with the pgen as price falls in the paper market allows you to do things tactically, that are difficult in the physical market. Taking delivery of a paper cert in many cases is taking delivery of a promise by the banksters. Taking delivery of REAL GOLD is taking delivery of ULTIMATE WEALTH.

4. A few of you have mentioned you own silver, not gold, because of fears of confiscation of gold. Silver has been confiscated in the past too, keep that in mind. Owning gold stock, the dow, gold jewellery, and obviously any gold that you lost before the confiscation, when it fell into a vault buried underground, by accident, are your best tactics and luck, to manage the risk of confiscation. I don’t think confiscation will happen, because only 2% of investors own any gold.

5. The purpose of gold confiscation is to devalue the general population’s net worth in paper money, so when 98% of the population are wienerheads with NO GOLD, confiscation is the last thing needed to devalue the rolls of toilet paper.

6. Confiscation IS a risk, but owning zero gold is not the way to manage that risk. Own silver yes, but remember that hyperinflations of global powers tend to end with the reinstatement of gold as money, while ALL ELSE CRASHES. Sell silver for gold as silver skyrockets, not silver for paper money.

7. Predictions versus reality: Those who shorted gold into the 1160 lows already blew up in 48 hrs, as price soared $25 to 1185, basis dec gold futures yesterday. $25 is about double what the average super-leveraged comex trader can handle, before his broker force-liquidates him for failing to put up more margin.

8. The wheat bull supershow WAS joined by CORN late Friday, and cash register ringing mania was the supertheme of the food market supershow all week long. Wheat, corn, sugar. According to Elmer Fudd master investor, these are “dangerous” and “risky” investments. So Fudd wisely shorted them in size at the lows, 50% below where we are now, since he knew people would stop eating any day now, and these items would go off the board faster than Enron. How is Fudd’s food group report card looking this weekend?

9. The “gigglers”. As the Euro nosedived into 1.18, was I feeling it could go WAY lower? Absolutely. I didn’t feel FEAR for my trading positions, because I managed the SIZE with the pgen. Did I feel uncomfortable? Absolutely. Huge WAVES of almost HOURLY bloomberg news headlines poured out, featuring the world’s largest money managers analyzing the situation lower, one after another.

10. I highlighted the fact that GoldLion began buying the euro around 122. Here’s an update: He’s out of that range pgen totally now, positioning himself for a USDrally. I’ve mentioned that Goldman Sachs’ chief economist has a target of 138, and the FACT that the banksters have a 99.99% of SHORTING the euro into that rise.

11. The euro to zero trade is NOT DEAD. I argued that the “euro to zero” was better named the “fundsters to zero” trade, and that’s what happened; a bonfire of booked losses and now a price chase on the long side, as the GIGGLERS snicker at “how silly” it was to be worried about the euro going to zero.

12. Here’s a wakeup call to the lobotomized gigglers: The euro IS going zero, and the only question is the timeframe. So is the US dollar, just like every other paper currency in the history of the world has gone to zero. I’m still long the euro, but my USD longs outnumber by euro longs now, so am I really long in the biggest picture? GoldLion wonders if the coming usd rally might be VERY shortlived.

13. The current THEME is not “the recovery”, nor is it the now-dying debate over whether the stock market is in a bull or bear. The theme is the paper money crisis that started when the euro almost DID go to zero, and would have, if the banksters hadn’t ordered the Gman to print up a trillion dollars and hand it to the banksters to “save the system”. What really happened was a mini replay of the 2008 situation, where the banksters blackmailed the US Gman.

14. The global financial system is broken and bankrupt, but the reality is hidden by mark to model accounting. When you think, “but maybe this time will be different”, you are correct. This time you’ll LOSE MORE if you act on that EMOTION. My accounts are at a new high because I understand my own stupidity and bet against myself consistently, and win against myself consistently.

15. Work HARDER to position yourself for the gold PARABOLA and understand you need to use LESS LEVERAGE if you are a leveraged trader, or you won’t survive. Remember, paper money itself IS the opposite side of this trade. Your winnings will be magnified by the fact that virtually the WHOLE WORLD is on the other side, the wrong side, of this SUPERTRADE. I believe the banksters are buying huge blocks of physical gold right now, and the coming bull move in gold will dwarf all others since the start of the bull market, in both price and shortness of time.

16. Let me repeat the dangers of living inside the henhouse guarded by the fox. The CHARTS in 1979 gave gold market SELL SIGNALS on most of the oscillators and indicators in 1979 and price did come off. A BIT. Just as it has come off now. Also a BIT. The US dollar began to rally and the comex floor traders started to short gold, believing the top was in.

17. What happened? Both the dollar and gold rallied strongly, and then gold went VERTICAL, fuelled by some of the greatest loss-booking by leveraged wienerheads IN THE HISTORY OF MARKETS.

18. As the vertical phase seemed destined to go on FOREVER and was massively reported in the media by the banksters, the public joined the gold community in a buying mania that featured the public literally lined up down the street for BLOCKS to get all their FREE MONEY. Coupled with the comex short covering, price went on an even bigger astroblast upside as the banksters liquidated and booked OBSCENE profits.

19. Gold can go SUBSTANTIALLY higher before the public pays any attention. Remember that the public is DESTROYED in the markets; they view gold as an INVESTMENT and have ZERO CLUE that paper money is in a blast furnace operated by the banksters.

20. The public doesn’t want any INVESTMENTS. They don’t even KNOW that gold is safety. They think it’s an INVESTMENT and a RISKY ONE. The public thinks the crisis is ending, not beginning. They are starting to focus on SAVING paper money, hoarding it.

21. So if gold were to spike to say, 1400-1700, while it WOULD attract price chasers in the gold community and fund community, it would NOT attract the public. A fall in the US dollar to 70 is not going to bring the public to gold, NOT AT ALL.

22. What’s going to “attract” the public is when the banksters take the price of gold skyward and THEN start pumping the media with TERROR stories that the entire WORLD’S currency system is based on the US dollar, and the WHOLE THING is on FIRE, with NO SOLUTION. I don’t think most of you realize how much terror the banksters plan to instil in Elmer Fudd, but I would suggest you soon will get the message loud and clear.

23. While I don’t see any confiscation, what the banksters MIGHT do is BAN gold SALES. The reverse of 1934. They tell the dealers, “no more sales to the public, they can’t buy anything.” THEN they start the TERROR game. Fudd is locked in the blast furnace with his paper money in a bonfire and he’s BANNED from buying any gold.

24. As the gold parabola unfolds there’s a high chance that the comex floor trading, funds, and the retail speculator gang ALL piles on the long side this time, and the banksters may respond by ENDING margin trading OVERNIGHT. That would cause a massive hit to gold, maybe $500 in a week or so, perhaps from 1700 to 1200 for example, but it’s too early to know the exact parameters, far too early. The BANKSTERS would take every ounce of gold sold by the BANKRUPTED traders who can only withstand a $10-15 price fall. Removing margin is like taking the market to LIQUIDATION ONLY.

25. Then, with the public BANNED from buying new gold, the govt sets about “stabilizing the system”. The public might not even realize what’s going on if gold was, say, in the $1500-2500 range. The “wakeup” for the public comes if revaluation FAILS to end the crisis or appears to have failed.

26. If revaluation fails and Ben Bernanke and the rest of the central bankster managers are ordered to turn on the photocopy machines, the public will watch with HORROR as their paper money starts to HYPERINFLATE. Institutions will immediately pour ALL cash into the STOCK MARKET and likely would have that process well underway during the revaluation stage.

27. My view is that the crisis ends in the revaluation stage. Think about the initial interest rates tool. Rates to zero. It wasn’t a plop to zero. It was one cut after another, as one cut after another FAILED to end the crisis.

28. Gold revaluation will play out the SAME WAY in my view, which is how I get my gold $6000 final target price (although I wouldn’t place any bets on that happening. Market tactics and economic projections should not be meshed that way). I expect the initial revaluation will FAIL, and more revaluations will occur.

29. The gold community will FREAK OUT as gold goes to thousands of dollars an ounce and be 100% sure that FULL HYPERINFLATION is coming. I keep telling you to get a VISION of the SHOCK AND AWE TERROR CAMPAIGN the banksters have planned for GLOBAL PAPER MONEY in the media. Thousands of Elmer Fudds will commit REAL SUICIDE as the banksters unveil the MAIN ACT of this supershow.

30. Never be 100% sure of anything, except the odds you are WRONG. When Jim Sinclair set his target of $1600 gold, the market value of OTC derivatives was around 50-$100 trillion. It’s GROWN. To TEN TIMES that size, a number bigger than the net worth of the world.

31. The reality is that we don’t know what the number is to end the crisis, the number of dollars required to buy one ounce of gold, but it is VASTLY more than the number that buys an ounce NOW. IF the series of gold revaluations fails, then the Fed will go to money printing and that will by definition end the asset destruction crisis, through an EXTREME devaluation of the net worth of Elmer Fudd. Money printing as a pure tool is playing with FIRE. It can go out of control. I don’t think we’ll go out of control, or even get to the stage of all-out money printing to raise the prices of hundreds of trillions of worthless OTC derivatives.

32. Gold revaluation plus TIME “should” work. Remember that devaluation of the price of paper money is USELESS if NOBODY OWNS THE PAPER MONEY.

33. Fudd has no buying power, so how can HE raise asset prices? The banksters don’t want Fudd to buy assets, they want to DEVALUE FUDD’s paper money, and that’s what the fund community doesn’t really understand.

34. Believing that Fudd is going to bid the STOCK MARKET to new highs is MADNESS, let alone hundreds of TRILLIONS in OTC DERIVATIVES. So, by definition, paper money must be DEVALUED to make that happen. Do you really think the banksters want Fudd to be owning the assets that RISE during the paper money devaluation, or the ones that FALL? Fudd, as of today, is EXACTLY where the banksters want him, clutching his paper money as tightly as he can.

35. I posted a lot of stuff on the site yesterday, and on Juniors, and that’s only going to accelerate today and all next week. The action is heating up here at Graceland, while most are on the sidelines or short. That’s their PROBLEM and it’s a problem that’s going to grow BIGGER, while our kachingos grow equally bigger.

See you out there…

Note for juniors subs, I’m adding Jaguar mining as a possible flying five candidate; after the meltdown. The “Jag” is NYSE traded…

This week’s theme is going to be: web posting mania.

Thanks

Cheers,

Thank-you

Stewart Thomson

Graceland Updates