Apr 21, 2011

 

1.   If you are a Graceland Juniors sub, and you are not getting email alerts, let me know immediately.  I had a manual send alerts file, but it got corrupted.  The action is about to exponentially intensify in gold juniors, ironically just as most investors throw in the towel. 

2.   Remember back when silver was around $20 and I said silver was set to outperform gold, but would become too volatile for most to trade?  The worst investors I know sold silver for gold to chase the gold price, while T-Rex bought silver.  Does that tell you anything?

3.   There are those who can eat crow, and those headed to the breadline.  Bob Hoye can eat crow. After failing with a zillion top calls, he's just issued a new set of charts showing silver could go to $490 and gold to $8500.  Welcome back to the real world, Bob.  

4.   I consider Bob Hoye the 2nd best technician in the gold community after Dan Norcini.  Too bad that short term technicals don't mean anything in the 3rd phase of a super-crisis.  His short term top calls were mauled by the gold punisher, as were everyone else's.  If Bob Hoye was mauled like that by the gold punisher, should YOU play market timer or top caller with your gold.... now?

5.   My message to ALL technicians is: don't waste your chart time with another top call ever again in this crisis.  You think you know what you are doing but you do not.  Top callers now risk putting people on the coming bread lines.  The situation is out of control.  This crisis is exponentially accelerating. There is no recovery, there is no growth fantasy that can fix $500 trillion in blown OTC derivatives bets. There is only the gold punisher and her flock, versus those going to the breadline, at the hands of the punisher.

6.   Jim Sinclair said yesterday his $1650 target will look so low by the time the crisis is over that it will be SILLY.  That could happen to my $6000 target. Here's why: GoldLion's partner, GoldPriest, has used the same calculations that I used to get $6000, the same calculations that Jim used earlier to get $1650, and the fact is that unless gold is locked to the dollar or debt, gold is going to $80,000.  That is a FACT. The new math target is probably already $90,000, since GoldPriest  did those calculations several months ago.  Soon the final price target with no lockwill be $1,000,000.  One million dollars an ounce.

7.   Why?  Because when you fix a fire with gas, that is exactly what the mathematical CONSEQUENCES are. The final price for gold in this crisis is determined by the time of the lock, and nothing else.  Without gold revaluation and maybe even money printing as official policy, which Ben Bernanke has stated is possible, full hyperinflation is a done deal.  QE can't work, because there are not enough real assets [for the Fed] to buy in existence to make up for the blown OTC derivative losses. QE continues, but it is now a water gun on a forest fire.   

8.   The horror of drinking the banksters' swill that LIFE ITEMS like housing, food, and energy should be treated as INVESTMENTS [as opposed to assets/wealth, I guess - FNC] with the goal of society to drive them EVER-HIGHER....the full horror of that error is only beginning to be understood, and only by a few.  The consequences of that disgusting action to turn life items like housing into ever-higher priced investments...the consequences and payback for that transgression is only beginning and will accelerate for many many years. 

9.   Don't wish for something too hard, or you just might get it.  My message to Elmer Fudd Public Investor is:  You got what you wished for.  Now, how does it FEEL? 

10.         There is an old saying that capitalism is about a business person charging the highest possible price for their product.  That is wrong.  Did Sam Walton strive to rip off his customers?  No.  How about the Woodruff family at coke?  No.  The most successful business owner charges the fairest price for their product so the customers return.  Not the cheapest, not the most expensive, but the fairest.  Sell more, do more, be more.  Don't simply price more, or you'll disappear like the dust of greed, in the wind of time.

11.          When you jack up prices of the life items of food, energy, and housing, and tell people it's a good thing, you become a jerk.  The banksters and the Gman are of course.... First class jerks.  Ironically, YOU will profit from Fudd's pipedream of house prices to the end of the Rainbow, while he is financially impaled by his own fantasy.  In the words of Gold Lion, "Greed does not hurt.  It kills."   I'll add: The root of all evil is love of money.  Professionalism in the mkt vs greed.  Know the difference. 

12.         Live the difference. 

13.          Bonds will be destroyed by the banksters like a jack boot on a house of cards, and all govt toilet paper currencies, including those of Switzerland, Australia, Canada, and China, will look like emaciated skeletons after a financial ebola plague, compared to gold, once this rapture ends.

14.          The only hit of monster size [10-50% ?] coming to gold that I envision, comes after the food and energy crisis goes insane, as the punisher leads them to maul the dollar, and the banksters bomb the bond to stop starvation from becoming a global PLAGUE.  That bond bombing will have only a temporary effect on the gold price and will actually accelerate the gold punisher's actions in the bigger picture. Interest rates can't stop hyperinflation.  Higher rates stop inflation, not hyperinflation.  Inflation is about demand for goods.  Hyperinflation is about supply of toilet paper.  Only a lock of gold to toilet paper currency or a lock of gold to toilet paper debt, and maybe a lock to both, ends this crisis.   

15.            Yesterday's games in the corn and wheat markets were designed to do exactly what the Goldman lie [Thomson on April 15: If you look back at the goldman sachs call, you will realize it was a BULL CALL, not a bear call.  The game was to distract the institutional money managers from gold so only the banksters (and the gold community like fish riding a shark) make all the money as gold goes totally ballistic.  Then [after it has gone ballistic -FNC] they dump it on the taxpayers via maniacal central bank buy programs thru the LBMA, which is where the banksters will unload their physical [gold] onto the taxpayers. ] did a few weeks ago in gold; keep Elmer Fudd and the Fundsters out of the biggest move up yet in the whole bull market. 

16.          Just because the banksters' BIS (bank for international settlements) says the OTC derivatives are worth $650 trillion does not mean they speak the truth.  Mark to model (lies) accounting has hidden at least $500 trillion in losses that the Gman & corporate losers could not pay to the bankster winners.  For all you know, even more hundreds of trillions in transactions have never been reported and are on fire.

17.          The off-book gold trades on the LBMA are bigger than the entire trading volume of gold on the comex in a day, by the LBMA's own admission, and have been for decades.  If you are not living the world of gold as currency, you live on the outside.  Get on the inside. 

18.         Face gold as the king of all markets, or get blown to the breadline.

19.          There are hundreds of trillions in OTC interest rate derivatives.  Those are potentially destined to make OTC credit default blowouts look like a peanut parade, when the banksters bomb the bond.

20.         If you have not removed any cash from the financial system or bought any dried food, you should consider doing so IMMEDIATELY.  I'm flying to British Columbia in 3 weeks to hold a family pow wow with my relatives in the Okanagan Valley, who own a convoy of 4x4 trucks, high powered rifles, and are experienced hunters and fishermen.  The purpose of the pow wow is emergency planning.   

21.         Some days we look at our hot gold stock trades, and laughter and fun in a crisis is mandatory if you want to survive, but never forget that gold bullion is the punisher and thermometer of health of the financial world.  Every time gold crushes the price of the dollar by another gram of gold price, the crisis is proven to be intensifying, and the risks to you proven to be intensifying.

22.         Silver tagged the $46 marker last night.  I believe we are very very close to a short-covering frenzy.  We are probably in the beginnings of it now. The shorts are in agony.  A hard hit could follow such a frenzy, once they finish bailing. 

23.         Short covering is buying.   It is demand.  The old highs of 1980 for silver sit in the $52-54 area. Price could fail before that level, or there could be a super-blast of shorty pants loss booking right thru there, that could take silver to $60-80 in days.  All is possible, all is real, all is now. The bottom line? Shorty, shorty, pants on fire, hanging on a bullion wire!

24.          Attention gamblers.  The odds of a gold parabola occurring right now are higher now than at any time in the whole bull market.  Call options are your weapon of choice.  I've already told gold and silver hedgers that were earlier CONCERNED about a FALL to buy 70% put options and 30% call options. How many listened?  Do NOT play top caller in this market.   When price moves into a parabola, it takes no prisoners.  Speculative gamblers who want to take action should buy 70% call options and 30% put options, preferably using a range pgen, as I am.  In a parabola or crash, the COST of the option is DWARFED by the rise in the price of the option.  In a monster move, it's possible that even if you are on the wrong side of the trade, the 30% position makes hundreds of percent or even thousands of percent for you, making the 70% wrong side of the tradeirrelevant.  This is very rare in markets.  Then again, so are lifetime winners in markets a very rare type of person...

 

Grid Time.  Gold stock players need to move yourselves onto the tarmac at Houston, and get into the rocket.  Helmets on.  With the real Apollo missions, many countdowns are ABORTED.  It has been the same with gold stocks.  Do you see the Apollo astronauts climb into a Model T car after a couple of countdowns are aborted, and hope the car takes them to the moon?  Well, don't get out of the gold stocks rocket to ride a USD tricycle and think that will make you richer.  Each time there is a countdown, make sure you are in the rocket.  Nobody is joining the ride after blastoff, although right now a billion idiots think they can.  When blastoff occurs, it will dwarf what you have seen in silver....

 

Thankyou!

Cheers

St out