Dec 14, 2011

In 1979 the banksters worked a double play. Some banksters were heavily long gold & silver as the metals skyrocketed.
People like Sad Sack shorted gold, convinced it was "all over". Gold went into a limit up situation in the futures markets, destroying speculators.
I told you that gold went vertical in 1979 on loss-booking by shorty pants speculators. The media told you it was public buying. Wrong. The banksters love investors to believe markets are rising on a "free money for all price chasers!" play.
The public didn't come into gold/silver, in size, until near the end of the 1979 bull, and did so as the banksters unloaded their longs onto people like Bunker Hunt.
The banksters didn't just sell longs. They took the other side of the Hunt trade in silver. They shorted it. Then they took the market to liquidation only, for 13 days. That action ultimately took silver to $13 from $52.50. At the bottom, the Hunts were force-liquidated and bankrupted. Who bought what the Hunts sold?
At the lows of 1929, JP Morgan Well, Paul Volker put together a crew to "save the silver market" (bankrupt the Hunts and buy their silver wad at rock bottom $13, then ignite a monster rally, for themselves).also "saved the market", buying stock at 90% on sale, for himself, on the NYSE in monster size, and "generously" paid, for example, $11.50 a share for blue chip stock, when the going bid was $11 (down from $150 a share at the 1929 peak). How generous....
"We saved the market by ending your ability to buy, cutting off all credit to you, and taking all you own for ourselves, at the low prices of the crash we caused. You better get on your knees and thank us for that." -banksters.
Sadly, the people did get on their knees and thank Morgan, and Volker, and they will do it again, in the bond mkt.
A new gold community is coming. The banksters have succeeded, like they did in 1979, in getting a huge chunk of this gold community to sell all their stocks and quit.
When gold blows the doors off $2000, the gold community zombies will not rise. There will be a new crew of fresh meat for the banksters to toy with. As gold makes its way towards my long-set $6000 tgt (the same percent gain as the 1970s bull, and I'll probably be too low on it), a new crew of idiot investors will be ushered into the gold arena to meet the bankster lions.
The new crew of idiots will be destroyed from much higher levels than where we are now.
That's just stage one of the bankster super-play. Stage 2: If gold falls much lower than current prices, levered funds and speculators will move from not just being out of gold and gold stocks, but to shorting them. EXACTLY LIKE THEY DID IN 1979.
A shorty pants on fire super-play is being prepared, and the marks are biting at the banksters' worm on the hook already.
Richard Russell joined the sell-everything crew yesterday. He said sell all stocks on the day of the Dow lows at 6500, at massive losses, while I bought there, in the agony zone, and I told a stunned the gold community when I told you to buy the Dow there. Sell all your gold stocks, at monster losses? Sound good? That's right, it isn't good!
I bought gold stocks yesterday. Let's see, should I sell them at a decent profit, or, should I sell them at massive losses, and lick the photocopier machine, like a dog?
Let's do a quick review of Sad Sack's portfolio over the years. There's the endless stock market short positions. He's lost hundreds of thousands there. Current value of his stk mkt portfolio: zero. Then there's his meats portfolio (hogs, cattle, etc). He's dropped about $100k there. Current value: zero. There's 100k gone in sugar. No value to his sugar portfolio today. Nice asset. Then there's his penny stocks portfolio. Losses: Approx $500k. Current value: approx. 10k. Build assets, not bets.
Bottom line: Bets go off the board. It's more difficult for assets to go off the board. Still, you need to stay real. A lot of gold fantasizers talk about "juicy bargains". When prices fall, it's not funny time.
In this crisis, there is no bottom and no top, in terms of how powerful a fundamental driver of liquidity event can become in terms of moving price. Enormous price weakness, and enormous amounts of time, must be endured.
Only a pinhead tells people in a gulag that everything is wonderful, or that it is not a gulag. It's like going into a prison and telling the prisoners how wonderful everything is. Wait til the door is locked and the little pinhead is locked in there. That will wipe the smile of his pinhead face. After hearing that "juicy buy on juniors" nonsense for the 10,000^th time, the story gets on your nerves.
The junior gold stock prices are held where they are by hedge funds shorting them, and a lot of it illegally, not by high fuel prices or any other such nonsense. The senior producers love the action, because they can expand reserves by eventually buying the explorers for peanuts.
They have unlimited patience, so YOU need to have that same unlimited patience, not massive loss booking, as your primary gulag survival tool.
Put options remain your remain insurance/emotional control mechanism if you are nervous. Like with buying via bankster-style pgen, you may need to insure more than just one area of the price grid. Remember than if you buy far-away strike price options, the price of those options can remain static even though price drops quite a ways, and then suddenly they explode into a fireworks show of profits. Don't play speculator with insurance.
My DUST-nyse position blasted higher yesterday. Carrying an up to 30% short position can be mentally as well as financially helpful. If Tom McClellan is correct about the "important in his own mind" $200 gold price fall, then I'll be covering some shorts and using profits to buy longs, particularly in silver and GDX and GDXJ. What if he's wrong and the short squeeze starts here and now? He's left in the dust, while you and I...get richer! I told you that all your favourite timers would be destroyed in this bull mkt. It's happening, and the theme is accelerating.

Gridtime. Staying long gold isn't a bet on higher prices. It's an understanding of the asset. Carrying tactical short positions on all major markets is a tool to ensure you don't play 'sell everything' with your gold items. If you are thinking of booking losses on your stocks, but have zero short positions, you need think hard about where the real problem is. It's tactical. Face the shorting issue, and go short, a bit, to stay more long.

Thanks!

Cheers