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May
27, 2011
1. Don't
take on Queen Gold and Prince Silver with your crew of human,
fundamental, and technical timers. You will
lose. The few points
in time where the price of gold is highly predictable create an
illusion, and an ego, when price rises against the dollar per
your predictions.
2. When
price falls against your predictions, ego and illusion become
terror and illusion. A crazed embracement of the
Gman, the banksters, and the photocopied dollar occurs. Gold
does not need the Chinese Gman, nor any other Gman, to
maintain full value
on the YOUR scale.
3. Here
we are at Gold $1527 this morning. The gold world
did not end, and the numbers on your scale are unchanged (or
bigger), despite the best efforts of the timers to ruin
everything for you.
4. Forget
timers. Focus on timeless. Gold's timeless
value is measured by weight. The
value of gold is notonly measured
by weight, but failure to embrace the scale as your main
valuation puts you at a massive disadvantage against the
banksters, in the wealth accumulation game. Valuing
your gold solely in paper currency is like playing English
football with one player, while your bankster opponent has
eleven players. There's not much left of you by the
end of the game, and you served only as entertainment for the
banksters, running willy nilly all over the price grid after
the price ball, while they laugh hysterically. Sound
good? It isn't.
5. If
real hyperinflation occurs, those clutching their paper
currency superhero action figure manufactured for them by
the banksters will
find they have zero players on the field.
6. The
US dollar chart, to me, looks like a trap
door chart. A
huge price blob sits there, and there is a 2/3 chance that
price breaks lower, with a target of about 50. A
move from 70 to 50 could put gold at
unknown but skyhigh price
levels. Click
here now to view theUS
dollar monthly chart.
7. Note
that while some of the short term oscillators are flashing buy
signals that are bringing a wave of technical analysts to the
toilet paper worship alter, others are waterfalling. Elmer
Fudd Public Investor calls it a "safe haven chart". Jim
Sinclair, world's largest gold trader in the last bull market,
calls it a joke chart.
8. Risk
on is buying the dollar. Risk off is buying
gold. Always. If
you buy gold when you should be buying dollars, you create an
illusion for yourself that gold is the risky asset. It
is the dollar that is the risk asset. Click here now
to ask yourself which item is in play, is
it gold ... or the dollar!
9. Since
the banksters created the Federal Reserve, the greatest wealth
transfer machine in the history of the world, the dollar has
tanked from 500 to 7 against gold. That's ten
times the
losses of the current 45 to 5 mauling. Calling
the dollar asset a risk off trade
is turns my stomach.
10. Some
toilet paper worshippers claim that the dollar pays interest,
so if you got interest on your money, the 500 to 7
disintegration is not so bad. Really? Gold
can be loaned out for interest, just
like dollars can. Clearing houses and brokers are
beginning to take gold for collateral as well, and the fact is
that big wealth has
always used gold for collateral. No
matter how you slice it, while there is wealth to be built in
buying dollars at the right time, it it's the dollar that is
the risk-on trade, and gold that is the risk-off trade.
11. The
dollar-rally fan club reminds me of a crew of zombies trying to
recreate Enron and promising this time it will all be
different. It will be different. The
losses will be vastly larger.
12. Some
writers claim the Chinese Gman is "so smart" for
exiting US dollars now. So smart? Look at
that chart. Does selling now after buying at the top
look smart? Leaving
his moronic and evil communism-obsession aside, the question at
hand for the Chinese Gman is, why is the idiot in US
dollars now, in all this size? Answer:
He's a price chaser. He
bought into USD 120 from the banksters and now he's bailing
at losses.
13. He'll
bail on a lot more at a lot bigger losses, as the banksters
open the trap door for him and he tumbles thru it at USD
70. Then goldland can call
the Chinese Gman a lot smarter than he is now, if that turns
their communist-worship crank. I believe the trap
door at 70 marks the point where the banksters will begin
an epic accumulation of
dollars, and
the Chinese Gman is directly involved in facilitating the
transfer of wealth from his taxpayers to
the banksters.
14. You
don't have the deep pockets that the banksters do, so my
suggestion is to wait
until you see a panic exit well
underway that
gets large media attention before you begin accumulating the
dollar. Catch a falling
dollar pin, not a price plopped sword, as the dollar heads
south. The USD chart point of 60 might mark a point
where that happens. The Chinese Gman is about to fry
his taxpayers to a beautiful burnt black crisp, but that's the
hallmark of all Gmen, so it's nothing new.
15. I
believe most of you will build more ounces of wealth and
dollars of wealth after the
dollar bear market ends than during it,
no matter how high gold goes against the dollar, barring full
hyperinflation.
16. Why? Because
I think this bear
ends with gold locked to debt/dollars, like it was in the
1930s, but not at an exact price like it was then. The
dollar will trade in a range against gold, anchored by gold. I
think that range trade will go on for decades. It
will be a free-money range trade for you,
in all likelihood.
17. Rick
Mills runs the "Ahead of the herd" website. He
posts my work fairly regularly. I'm not too keen on
his "all juniors" theme, not
at all, but he does send me some
interesting analysis of the big ticket markets from time to
time.
18. His
latest quotes two RBC (Canada's largest bank) analysts who say,
"....we expect that, at some
point in the next 12 to 18 months, utilities will begin to see
an increasingly tight long-term contract market to the point
where there is all but no supply availability."
19. What
are they talking about? Answer: Uranium. I
moved funds from my Chinese stock market PGENS to Uranium and
Natgas recently. These are two of the most depressed
markets out there. It has to grab you the seat of
the pants, their statement, "all but no supply
availability"!!!
20. Even
if they are only 10% correct, that is a big
issue. I think they are probably
70-90% correct. Let them focusing on getting
it correct. You
focus on getting richer!
21. Think
about the Dow at 6500. A huge supply of
stock. A glut of stock. How did investors
act? Answer: The same way they are acting with
uranium and natgas
now, to a degree.
22. Think
about all the great declines in markets. Think about gold
in 1980. All that most investors think about is,
"what if that happens again,
to me? Oh
no!" There is no
thought of, "wow, what can I do to
be sure I'm on the buy next time I can get gold in dollars at
that kind of price!" Buy
gluts, buy stories of how gluts will never end, sell stories of
how low rates are here to stay.
23. Click
here now to view the weekly uranium
chart. Run
modest pgens when price is moving up or just drifting. Save
risk capital powder for "end of the asset" type price
action. Once you see the idiot patrol move out
and ask openly, "Is it all over for uranium", while
the world health organization blames a million deaths a year on
COAL, you know it is buy time, and serious wealth building
time.
24. Once
you understand what an asset really is, you want more of it at
the lowest prices. Supply gluts become your
friend. The market is about assets, not production
lines, which is why most business owners consistently fail in
the market, despite building fabulously successful businesses
with incredible skill. Getting the richest boils down to
buying the most at the lowest price, but most investors simply
boil alive in water heated by the banksters. Getting
richer and understanding the nature of assets involves
patience. Patience is the leverage of champions, and
today's question is, Are You A
Champion?
Grid
Time. Reminder
that later this afternoon we get the liquidity flows reports,
the COT reports that cover the action thru Tuesday, May 24. I
told you last week that the cot reports are some of the most
bullish since the bull market began, ironically while the
majority of the gold community engaged in bail and fail action
in the market. Already this week, price is moving
higher. Many are looking for a test of the recent
lows. I say: Maybe it happens, maybe the lows break, or
maybe we just blast higher! Whatever does happen,
make sure you are professional in your response to it!
Thankyou
Cheers
St
out
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