Sep 14, 2011
For those unsure, yes, gold is still in the $1700-$1900 party room. Yes, things can get a little wild on Friday nights inside the golden party room, but it is what it is. You are where you are.
Unfortunately, the banksters held a "it's 2008 again, it's all over for gold, and for you, sell everything to us now, or you're finished, your cracker jack prize promises you it's true" funeral gathering, next door to our party room, on Monday Sep 12, 2011. Some members of the gold community didn't read the price address on their Graceland $1700-1900 Party Time invite cards correctly, and they knocked on the room next door, and the sicko banksters ushered them in there. After the door closed, and was deadbolted, the sound of financial chainsaws could be heard. Oh well, one more dollar bug, for the 2008 again gipper.
While the feelings of failure, bitterness, and fear on Monday this week were not as intense as at $1478, the fact is that swings of emotion from greed to fear, in terms of time, are going to exponentially condense, as you enter the golden parabolic zone, aka your parabolic party zone, aka the public's breadline zone.
One of you sent me an interesting piece on Henry Jarecki, ex head of Scotia Mocatta. I accidentally deleted your email. Any chance you can send that to me again? Thanks.
Leverage. While there's a place for leverage, you need to think it through very carefully, rather than just plunging into something thinking, "this looks huge, so I'll leverage it, and make even more." The banksters have been destroying leveraged futures traders for generations, and they understand the full range of emotions that cause their prey to take market action that turns them into marks.
Beyond that fact, you need to look at what is realistic in a market move. If Elmer Fudd Public investor is making his way to the breadline at an 8% destruction of his standard of living a year rate, and gold is poised to rise, say, 500%-1000% in the coming years, do you really need to attempt to make 50,000% out of that rise? When the market offers you the free gift of hundreds of percent of gains, while others around you are literally driven to pauper status, and you then say, "that's not good enough, gimme thousands of percent", you need to understand just how dangerous, and arguably insane,that idea is.
The most wealth is built by the banksters, moving from gold to bonds, back and forth, like the tide coming in and out, over and over, generation after generation. Everything else is a sideshow. Don't confuse sideshows with the main act, when it comes to your personal liquidity flows.
The banksters don't want short term bonds backed by some liar's mouth that pay 2% a year. Do you? I don't.
I want bonds that pay a bare minimum of 10% a year, every year, for 20-30 years, and they better be the bonds of a major national government. And Elmer Fudd better be telling everyone he knows how much he hates bonds and how rates will never come down.
I don't see that going on. What I see is Fudd and his crew of idiotic golf ball advisors making "growth with safety" statements about bonds. He sees them like some kind of Mommy figure, provided to him by the banksters to save what remains of his totally failed stk and real estate price chasing wiener plays.
Here's the reality of his no growth with no safety clown act. First, the term "growth with safety" is likely a bankster invention to herd their marks into bonds. Second, click HERE NOW for your bond market performance reality chart.
The fact is that bonds have tanked from 40.80 to 7 against gold. They are trading under 8 right now. That's an 82% wipeout. Hello, earth to nogrowthwithnosafety idiots on Mars, knock knock, anybody home?
Don't think that this chart can't look a lot worse. It can. By diluting the dollar, the bond could end up at 0.70, falling ten times the amount it has already fallen. The bond hasn't even begun a bear market yet, let alone moved to the stages where it becomes a PGEN buy. The bond is a siren on the rocks operated by the banksters, and billions of marks have heard the call to board the "growth with safety" Ship of Fools, and have followed the banksters' instructions to the letter.
What an ultimate horror, and if you think gold is volatile now, wait til you see what happens when the bond really implodes. The crash in gold in 2008 could look like a $10 blip move, compared to the action that lies ahead.
I posted a "GDX compared to Gold 1033" video report on the site last night. I believe the action in GDX now is very similar to the action of the gold community in bullion around the time and price of $1033, as gold burst out of the massive h&s continuation pattern.
Talk of 2008 again and talk of corrections to $1500 as being somehow all-important to avoid, are two key factors that make this GDX situation very very similar to that of gold $1033, when the analysts raced forwards in a mob to predict where the pullback would halt. I actually listened to 2 analysts debating about whether it where it would be within the 980-1000 range. My conclusion was that neither analyst owned any gold. They were afraid.
I've called GDX options gamblers to the plate, here and now. GoldLion wonders if the juniors could be 3-6 months behind the seniors. If so, a realistic options plan of action would be to start with the GDX call options and then move to GDXJ with profits from the GDX ones, once the skyrocket party is well underway. Don't predict the juniors skyrocket. Use the seniors skyrocket to pay for your juniors skyrocket.
You need to really "stare down" the dollar bugs, here and now. That's a big key to making it through the emotional side of this $1700-$1900 price box. One thing I'd like to see you do is become a little more aggressive even when you are on the defensive.
Meaning: Let's say gold does break the $1700 line, and begins a decline towards $1500, and it gets well underway. I don't think we go to $1500. I think we go to $2100, but who cares. What I'm talking about is dealing with the emotional side of things if I'm wrong and we go towards $1500.
You know full well that as we approach $1500, and even well before that number, the gold community's worst analysts are going to start getting terrified that much lower numbers could happen. So you need to understand the picture at $1500, now, not when it happens. Analysts will be telling that if "ABC happens", we could go to $1300, $1200, or even back to $1000 or $900." That's the reality. Better to face it now, than bail out at $1500 after facing it as a surprise.
The dollar bugs, mostly unwittingly, are bullies. They will sort of "pick at you" if price moves towards $1500. You need to be a lot more aggressive on declines towards the dollar bugs from here on in than you have been in the past. Ask these losers what's wrong with them. Tell them, "You're a millionaire business owner, but I'm sorry to have to tell you right to your face, that you're a coward. You have to face that fact. You Sir, are a coward. You can't even buy an ounce of gold on $400 of weakness. Gold is my financial friend. Not you. This crisis is extreme and I suggest you take it seriously. Your actions and words could harm my family. I'm sorry to have to tell you this, but, get lost. If you can show me something other than cowardice, then we can talk. Other than that, we go our separate ways, here and now." That is, exactly, the mindset you need to have if we go towards $1500. Victory in strength comes from how you handle yourself in weakness. Most are looking to avoid price weakness. Focus on enduring it, because nothing else will work in the parabola zone. If you don't have the level of endurance required to make it through, you'll be totally destroyed alongside Fudd and a mountain of flip traders. I'm not here to lose. Take the next step. Get aggressive on gold weakness and show your opponents you have a growing understanding of just what gold really is.
For those of you accumulating wheat, as I am, it's been a tough road the past few months. The past couple of weeks have been particularly gruelling. Almost more than even with gold, you can be aggressive with your opponents, with wheat. What is the ultimate low price to which price can decline to, where farmers stop planting and people begin starving? That's the number where your PGEN will place your largest buys, automatically. We can't know what it is, and we hope price begins a major bull rise before people start starving, but as long the Gman is around, the possibility that he is so stupid that he makes starvation happen, is real. Click HERE NOW to view the wheat chart.
There's a big price blob between about $6 and $10. On the downside from $10 to $6, that's a about a 40% drop. On the upside, from $6 to $10, that's a about a 65% gain. I like gains. Do you? You can take a fairly aggressive stance with wheat because all your paperbug opponent can do if he tries to get price lower is eventually starve himself to death. His risk to reward theory is straight out of the insane asylum. Remember that you want wheat, corn, oil, uranium, natgas at the lowest possible prices, but you are really not going to see the ultimate parabolic moves in these items until the bond collapses and institutional money managers begin to panic out of the dollar.
The problem with buying later, once the GR (great reflation) is underway, is that the banksters will be waiting for you, waiting to take all you have after making you look down. Those who locked and loaded silver between $4-10 are really not very afraid of the tin can timers who blab about some "I failed in 2008 and now I think I'll fail again" crash theory that is fed to them by the owners of the diaper store. Make sure that when it comes to the "reflation assets" like food and energy, you are locked and loaded at the lowest possible prices.
Gridtime. I'm a player in this crisis show for decades to come. Not months or years. The recipe for building great wealth in the gold-related assets in this all-epic crisis is: Buy the lowest prices, vault a minimum of 50-70% of what you buy as pgen inner core, and run a trading and outer core pgen on the other 30-50%. Apply a multi-decade coat of patience paint to your financial asset artwork or the banksters will have their kiddies vandalize it. All other approaches will create blips of wealth and blobs of tears. Some of you are aware that Elmer Fudd Public Investor's tactics are totally failed. Let's make one of the themes of this week understanding that when he begins to converse with you about markets, you should understand you are dealing with somebody with broken financial wiring, and worse, somebody basically incapable of change. He becomes a miniature siren on the rocks. Don't listen to his statements about markets, because there's a lot more wrong there than just the assets he's telling you he's chosen.... Lastly, understand that the more time gold spends above $1400, let alone in this $1700-1900 party box, the more upwards pressure institutional money managers are going to apply to gold stocks with their liquidity flows. Are you grasping the significance of the price of gold, here and now, in terms of this key fact, and even the significance of gold hundreds of dollars lower than where it is now, in the same way? The dow to gold stocks wiener link is over, just as 2008 is over. If you failed in 2008, the bottom line is: who cares. You can get onside with the cracker jack box prize flows of the gold community's leading top callers. Or, you can understand that this is 2011, and you need to get onside with gold seniors stock institutional liquidity flows. I'll leave the final decision.. in your golden hands!
Thanks!
Cheers
St out