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EXCLUSIVE: The Smoking Gun Proving Silver & Gold Manipulation

We have the data. And it tells a clear story.
Friday, October 16, 2015, 7:46 PM

Gold price suppression!

The amount of ink spilled on this topic could fill a supertanker.  Goldbugs the world over believe in the suppression story as an article of faith, and indeed, the evidence that “something is happening” appears incontrovertible.

Given how important the subject is to Peak Prosperity and the bullion-owning community, and the volume of energy we expend talking (and talking, and talking, and talking) about it, how much information do we really have about what is actually going on?  » Read more

Insider

Jaroslav Machacek/Shutterstock

How To Protect Yourself & Profit From This Manipulation

Also: is the bottom in for precious metals?
Friday, October 16, 2015, 7:45 PM

Executive Summary

  • What the Great Gold Smash of 2013 tells us
  • Was $1,075/oz gold the bottom? Is the bottom indeed in?
  • Is a new bull trend ahead for precious metals?
  • How to hedge against -- and speculate on, for those who dare --  future manipulation attempts

If you have not yet read Part 1: EXCLUSIVE: The Smoking Gun Proving Silver & Gold Manipulation available free to all readers, please click here to read it first.

Now let's look at the great gold smash of 2013.

There were three separate operations I saw on or around the gold smash of 2013:

Operation #1: On April 12, gold had already broken below the 1525 support level to close at 1501 after dropping $100 over the two preceding months.  After a long decline followed by a support break, the market was in a very fragile state.  Sunday rolled around, and “someone” chose this moment to unload $95 in 13 volatility events over the course of just 13 hours.  This avalanche decisively drove gold down $150 in just one day.  This engineered follow-through using volatility events coming immediately after the support break resulted in the total annihilation of the longs.  Price still has not recovered from that move.

Operation #2: two days after the $150 drop, another 3-event $23 assault completely failed.  Price did not move at all.  In fact, it rallied on the day.  Why?  Why didn't we get another $150 drop?  Well, 1325 turned out to be strong support.  Buyers came out in droves to pick up the lower-priced gold.  And so when gold dropped $23 due to the volatility events, COMEX buyers snapped up the lower priced gold, and as a result the assault completely failed.

Operation #3: two months later, another 1-event $24 assault had only a very minor effect.  Price fell that day a few bucks, which was regained the day following.  Support was not quite as strong, but the market was clearly not in a fragile state at that point either.  This assault failed as well, since there was no support break and no price reset lower.

Here are three events, in relatively close proximity to one another, but under three different sets of “chart circumstances” which provided three different outcomes.  One worked, two others didn't.  The difference, I maintain, was where the market was at each point.  Fragile markets appear vulnerable to volatility events.  Strong markets are not.

Now let's look at the most recent event: July 20, 2015... » Read more

Blog

Gravity Returns - The Market Drops Nearly 5% in 3 Days

Years-long trends are finally breaking
Monday, October 13, 2014, 7:14 PM

A month ago, in an analysis titled Defying Gravity, I wrote about the unsustainable state of the stock market's high prices.

In it, I noted how the stock market had risen for an aberrantly-long time time without a correction, and that it hadn't even tested its 200-daily moving average price once since the beginning of 2012: » Read more

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bochimsang12/Shutterstock

Defying Gravity

The case for hedging against a market downturn
Wednesday, September 10, 2014, 12:05 AM

Today's markets exist in an Oz-like, fantasy world. For 5 years now, stock and bond prices have risen like Dorothy's balloon, without so much as a puff of downdraft to spoil the fun.

Everybody likes higher prices, so let's have them always go up! Forever!

Whether that can happen is a topic of current hot debate, though few think corrections have been permanently banished from the financial markets. » Read more

Insider

Dreamstime

How to Hedge Against A Market Correction

Reducing the vulnerability of your portfolio
Wednesday, September 10, 2014, 12:04 AM

Executive Summary

  • What you need to know about hedging with
    • Stops
    • Inverse and leveraged ETFs
    • Shorts
    • Options
    • Futures
  • Deciding which hedging instruments are appropriate for your portfolio

If you have not yet read Part 1: Hedge, Dammit! available free to all readers, please click here to read it first.

OK - hedging sounds prudent. But how do you do it?

Our focus here in Part 2 of this report is to cover the most common vehicles used in hedging strategies. Each one merits its own dedicated report (a series we'll likely create in the future) to truly understand how and when to best deploy, so this report will focus on providing you with a good introduction to each, with guidance on how to further explore the ones that strike you as appropriate for your needs and personal risk tolerance.

Before continuing further though, let me make a few things absolutely clear. This is NOT personal financial advice. This material is for educational purposes only, and as an aid for you to discuss these options more intelligently with your professional financial adviser(s) before taking any action. (If you do not have a financial adviser or do not feel comfortable with your current adviser's expertise with these hedging vehicles, we'll be happy to refer you to our endorsed adviser)

Suffice it to say, everything discussed in this report (even the % cash component mentioned in Part 1) should be reviewed with your financial adviser before taking any action. Am I being excessively repetitive here in order to drive this point home? Good... » Read more

Blog

The Approaching Inevitable Market Reversal

Closer every day...
Wednesday, July 2, 2014, 8:06 AM

Though we’re constantly reassured by financial pundits and the Federal Reserve that the stock market is not a bubble and that valuations are fair, there is substantial evidence that suggests the contrary.

The market is dangerously stretched in terms of valuation and sentiment, and it does not accurately reflect fundamentals such as earnings and sales growth. » Read more

Podcast

Janet Tavakoli: Understanding Derivatives and Their Risks

Abuse is the problem
Saturday, September 15, 2012, 11:48 AM

Global financial markets are awash in hundreds of trillions of dollars worth of derivatives. By some estimates, the total amount exceeds one quadrillion.

Derivatives played a central role in the 2008 credit crisis, as they had a brutal multiplying effect on the magnitude of the carnage. As a bad asset was written down, oftentimes there were derivative contracts written against it that resulted in total losses 10x greater than the initial write-down.

But what exactly are derivatives? How do they work?

And have we learned to treat these "weapons of mass financial destruction" (as Warren Buffet colorfully coined them) any more carefully in the aftermath of the global financial crisis? » Read more