Sunday, July 8, 2007

All The World's A Stage

For Gold, All the World's A Stage...and the stage has been set. The battle between the forces of good and evil in Gold is on. In the words of Bob Chapman, The International Forecaster, "The cartel is in trouble."

Turkey’s gold bullion imports almost tripled in June as the wedding season held forth. That is a 178% increase yoy.

The stage is set for a bitter wage despite in the South African gold mining- sector after employers tabled an offer of a 6% increase compared to demands of 15% to 20% from the main trade unions. The 6% offer doesn’t even match inflation. We do not see an early settlement. Be prepared for at least a one-month strike.

Worldwide gold producers are facing mounting costs and they cannot make money at these gold prices. Central banks and Western governments cause all of these problems. They are increasing money, credit and inflation and simultaneously selling gold into the market. This is not a free market. It is a corporatist, fascist market. Yes, investors and companies get hurt financially, but much worse workers worldwide, who work for mining companies, get hurt much worse. You can see how much the rich elitists care for the common man. These Illuminists are not just hypocrites; they are criminals.

Commodities were strong and copper is about to breakout over $3.60 again to retest $4.00. All those in the pits, especially in London, know there are fully paid warrants claiming between 140% and 169% of the copper in stock. The copper market is soon going into default. Stockpiles have dropped for the 8th consecutive session, falling 2,425 tons or 2.2% to 107,950 tons. This year stocks have fallen 41%.

The Fed can now only stand still and watch. The game is almost over. In four years there may no longer be a Federal Reserve. There game and the game of the other Illuminists will be over. The dollar will soon test 80 and it will break, as interest rates move higher.

Fridays action in the Precious Metals was very encouraging as the US Dollar failed to catch much of a bid off of the June non-farm payrolls numbers and quickly slipped back underwater boosting the metals. Silver had a remarkable day Friday, closing 38 cents off it's low of the day. Is the rest of the world finally catching on to the farce these non-farm payrolls numbers represent? Dan Norcini over at JSMineset, , had some wickedly amusing commentary regarding these "bogus" numbers on Friday:

The big market mover today was the monthly exercise in statistical gymnastics by the Labor Department, aka the Payrolls Report. This time around, the pencil pushers – check that – the keyboard pounders – managed to find 132,000 new jobs for the month of June. That surprised the “expert analysts” who had placed their money on the red for an average of 120,000.
In another astounding feat of data prestidigitation the feds managed to “discover” another 33,000 for the month of May as they revised their previous “esteemed accurate count” of 157,000 to 190,000. Not satisfied with that bit of legerdemain they proceeded further on back to April and pulled an extra 42,000 jobs out of their black hats, revising that number upwards from 80,000 to 122,000.
Folks, I have to ask you, how many of us who live in the real world could consistently produce such grossly inaccurate and bumbling reports time after time and still retain our current paid positions in the workforce. Imagine a corporate planning board basing their business strategy off of estimates being created within their own firm that contained this degree of accuracy – off nearly 20% one month and 50% the prior month!
What is perhaps more amazing to me however is that so many people actually believe this swill that the government serves up.

And now, the stage is set. Gold is banging it's head on the downtrendline off of the May high, the 50% retracement of the same May high, and the neckline of a Reverse Head & Shoulders that has developed around the June 26th low simultaneously as I type this Sunday evening. A break and close above 658 may be just what the doctor ordered and light a fire under the shorts in this market. Is a short squeeze imminent? Dem Rat Bastids will not go down without a fight. Look for a marked increase in volatility as Gold attempts to power higher from here. 664 may be the Comex Vermin's last straw before their backs are broken.

Silver's battle for control of it's 65 week moving average continues at this hour. 12.64 is the line we must gain control of if Silver is to move higher. It should be noted that the 65 week moving average coincides with the 38% retracement of the February high off the major low of June 2006. Note also that the last time Silver was below it's 65 week moving average for two weeks running was the low established in August 2005. Silver went parabolic following it's recovery from this major low and ascended to it's highs in the 15's in May 2006. Past performance is no guarantee of future success, but the Summer of 2007 is looking more and more like the Summer of 2005 as each day passes now. The similarities of the two consolidations following major tops in Silver is uncanny. Da Rat Bastids know the consequences if Silver breaks back above today's triangle...their demise. Friday's 12.74 high was our first look at the battle line. I expect the Comex Vermin to fight dirty to hold this line. 13.03 will reappear eventually as the last straw that could break dem Rat bastids backs once and for all this year.
Please click on charts from to enlarge.

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