Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
The Bad News About Record-Low Unemployment - 24th June 19
Stock Market New High, but…! - 24th June 19
Formula for when the Great Stock Market Rally Ends - 24th June 19
How To Time Market Tops and Bottoms - 24th June 19
5 basic tips to help mitigate the vulnerability inherent in email communications - 24th June 19
Will Google AI Kill Us? Man vs Machine Intelligence - 24th June 19
Why are Central Banks Buying Gold and Dumping Dollars? - 23rd June 19
Financial Sector Paints A Clear Picture For Stock Market Trading Profits - 23rd June 19
What You Should Look While Choosing Online Casino - 23rd June 19
INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - 22nd June 19
Here’s Why You Should Drive a Piece of Crap Car - 22nd June 19
How Do Stock Prices React to Fed Interest Rate Cuts? - 22nd June 19
Gold Bull Market Breaking Out! - 21st June 19
Post-FOMC Commentary: Delusions of Grandeur - 21st June 19
Gold Scores Gains as Draghi and Powel Grow Concerned - 21st June 19
Potential Upside Targets for Gold Stocks - 21st June 19
Gold Price Trend Forcast to End September 2019 - 21st June 19
The Gold (and Silver) Volcano Is Ready to Erupt - 21st June 19
Fed Leaves Rates Unchanged – Gold & Stocks Rally/Dollar Falls - 21st June 19
Silver Medium-Term Trend Analysis - 20th June 19
Gold Mining Stocks Waiting on This Chart - 20th June 19
A Key Gold Bull Market Signal - 20th June 19
Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - 20th June 19
Investing in APPLE (AAPL) to Profit From AI Machine Learning Stocks - 20th June 19
Small Cap Stocks May Lead A Market Rally - 20th June 19 -
Interest Rates Square Minus Zero - 20th June 19
Advice for Financing a Luxury Vehicle - 20th June 19
Stock Market Final Blow Off Top Just Hit… Next Week Comes the FIREWORKS - 20th June 19
US Dollar Rallies Off Support But Is This A Top Or Bottom? - 19th June 19
Most Income Investors Are Picking Up Nickels in Front of a Steamroller - 19th June 19
Is the Stock Market’s Volatility About to Spike? - 19th June 19
Facebook's Libra Crypto currency vs Bitcoin: Five Key Differences - 19th June 19
Fed May Trigger Wild Swing In Stock Index and Precious Metals - 19th June 19
How Long Do Land Rover Discovery Sport Brake Pads Last? - 19th June 19
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Gold Golden Antidote to Our Being Fleeced!

Commodities / Gold and Silver 2010 May 14, 2010 - 01:53 PM GMT

By: DeepCaster_LLC

Commodities

Best Financial Markets Analysis Article“Goldman Sachs Group Inc. traders didn't lose any money at the end of each trading day during the first quarter…

Traders raked in more than $100 million daily for 35 days and made no less than $25 million daily during the rest of the three-month period, according to a regulatory filing.”


“Goldman Traders Had a Perfect Quarter”

Joe Bel Bruno, The Wall Street Journal, 5/11/10

“The market action last week was flagrant manipulation – whether intentional or otherwise. The 10-minute crash and rebound harmed the public and rewarded Wall Street firms with enormous profits. Public stop orders were all taken out at discounted prices. And anyone who actually tried to buy into the 1,000-point decline in the Dow was turned away by the wide bid/ask spreads…

The little guy lost the battle last week.

Don't forget, though, the pendulum swings both ways. I suspect years from now, we'll look upon last week as the exact moment Wall Street's excessive screwing of the public was exposed and the big firms' profit machines finally went too far.”

“The One Thing That's Clear About the Market Right Now”

Jeff Clark, The S&A Short Report, 5/11/10

“The latest quarterly reports from the big Wall Street banks revealed a startling fact: None of the big four banks had a single day in the quarter in which they lost money trading.

For the 63 straight trading days in Q1, in other words, Goldman Sachs, JP Morgan, Bank of America, and Citigroup made money trading for their own accounts.

Trading, of course, is supposed to be a risky business: You win some, you lose some. That's how traders justify their gargantuan bonuses--their jobs are so risky that they deserve to be paid millions for protecting their firms' precious capital. (Of course, the only thing that happens if traders fail to protect capital is that taxpayers bail out the bank and the traders are paid huge "retention" bonuses to prevent them from leaving to trade somewhere else, but that's a different story).

But these days, trading isn't risky at all. In fact, it's safer than walking down the street.

Why?

Because the US government is lending money to the big banks at near-zero interest rates. And the banks are then turning around and lending that money back to the US government at 3%-4% interest rates, making 3%+ on the spread. What's more, the banks are leveraging this trade, borrowing at least $10 for every $1 of equity capital they have, to increase the size of their bets.  Which means the banks can turn relatively small amounts of equity into huge profits--by borrowing from the taxpayer and then lending back to the taxpayer.

Why is the US government still lending banks money at near-zero interest rates? Ostensibly, for the same reason that the government bailed out the banks in the first place: So the banks will lend money to small businesses, big businesses, and other participants in the "real economy."

But the banks aren't lending money to the real economy…

The government's zero-interest-rate policy, in other words, is the biggest Wall Street subsidy yet.” (emphasis added)

“Huge, Ongoing Wall Street Subsidy Allows Banks to Coin Money Every Day at Savers' Expense” Tech Ticker, 5/13/10

“The biggest Wall Street banks slashed their small business loan portfolios by 9% between 2008 and 2009…”

“TARP watchdog: Big banks slashed small business credit lines” Catherine Clifford, CCN Money, 5/13/10

First, we consider several example of fleecing, whether intentional or not, in order to clearly see the Golden Antidotes.

The recent $1 Trillion EU (kick-the-can-down-the-road-Three-years) Bailout of Greece was a fleecing too. U.S. taxpayers/investors are on the hook for another $64 billon! [The IMF will provide $320 billion and since U.S. Taxpayers provide about 20% of IMF funding, their “hit” is about $64 billion.]

And that Bailout is not mainly a Bailout of Greece either – certainly not mainly a Bailout of the Greek People.

Rather it is mainly a Bailout of those Mega-Banks who lent to Greece. Can’t let the Mega-Bankers take a hit, can we?

And our many readers who are Eurozone Investor/Taxpayers cannot be too happy either. The EUR $500 Billion the EU leaders committed them to pay will mainly go to, er, repay the Mega-Bank Lenders.

And what about those bills to Audit The private for-profit Fed sponsored by Rep. Ron Paul and favored by a large majority of the American people?

Well they got watered down big-time into what we call “Empower The Fed and Provide a Fig-leaf Cover for Politicians” Bill.

That “Empower The Fed and Provide a Fig-leaf Cover for Politicians” Bill just approved by some 96 Senators would allow only a one-time Audit of The Fed and only an Audit of The Fed’s Emergency Funding Activities.

And it looks to us like The Fed will get to define what constitutes “Emergency”…

Look for a very Narrow definition.

So in this year’s election ask your Senators and Representative if they voted for the stand-alone Version of the Ron Paul “Audit The Fed” bills. And ask your Senators if they voted for the Vitter Amendment.

If they answer “NO”, you will know they did not support any meaningful Audit of The Fed.

And then there is The Grand Fleecing.

All that Fiat Currency they are “printing” and all those Debt Obligations they are creating for Taxpayers to bear, have already begun to create the beginnings of a hyperinflation. And this Inflation has been, and is, diminishing the purchasing Power of Ordinary Taxpayers/Investors’ Fiat Currencies and Retirement Savings. But we have a Golden Antidote to this.

But, first, realize you would likely not be aware of this nascent hyperinflation from the (Bogus!) Official Numbers.

The Powers-that-be have hidden this “Deception” from us via their Bogus Statistics. So consider the “Real Numbers” from Shadowstats.com, which calculates the Real Numbers for the U.S.A. the way they were calculated in the 1980’s and 1990’s before Official Data Manipulation began in earnest.

Official Numbers      vs.      Real Numbers (per Shadowstats.com)

Annual Consumer Price Inflation reported April 14, 2010

2.31%                                      9.47% (annualized April 2010 Rate)

U.S. Unemployment reported May 7, 2010

9.9%                               22.0%

U.S. GDP Annual Growth/Decline reported April 30, 2010

2.55%                                      -1.48%

And there is one other Regime implementing A Grand Fleecing we should identify before we describe the Golden Antidotes.

And that is that a Fed-led Cartel of Mega-Bankers and their Agents have for years not only been suppressing Gold and Silver Prices, but also intervening in other Markets including Equities and, especially, Strategic Commodities. These Interventions themselves often serve as another form of “Fleecing”.

*We encourage those who doubt the scope and power of Overt and Covert Interventions by a Fed-led Cartel of Key Central Bankers and Favored Financial Institutions to read Deepcaster’s December, 2009, Special Alert containing a summary overview of Intervention entitled “Forecasts and December, 2009 Special Alert: Profiting From The Cartel’s Dark Interventions - III” and Deepcaster’s July, 2009 Letter entitled "A Strategy For Profiting From The Cartel’s Dark Interventions & Evolving Techniques - II" in the ‘Alerts Cache’ and ‘Latest Letter’ Cache at www.deepcaster.com. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org, including testimony before the CFTC, for information on precious metals price manipulation. Virtually all of the evidence for Intervention has been gleaned from publicly available records. Deepcaster’s profitable recommendations displayed at www.deepcaster.com have been facilitated by attention to these “Interventionals.” Attention to The Interventionals facilitated Deepcaster’s recommending five short positions prior to the Fall, 2008 Market Crash all of which were subsequently liquidated profitably.

So far as the Price Suppressions Gold and Silver are concerned, The Cartel’s motivations for this are clear.

To the extent that Gold and Silver become ever more widely recognized as the Ultimate Stores and Measures of Value, that tends to delegitimize the Mega-Banker’s Crown Jewels – Treasury Securities and Fiat Currencies.

Fortunately, all of us Investor – Taxpayers around the world have Profitable and Protective Antidotes to the aforementioned Outrages: Gold and Silver.

Indeed, the Price Appreciation and Wealth Protection Prospects for Gold and Silver are very Bright (Pun intended).

But given repeated Cartel attacks on Gold and Silver Prices in recent years, it is important to develop a Strategy to Maximize Profits and Minimize losses from these attacks. Key Aspects of that Strategy are:

  1. The Recognition that while the Cartel is still Potent, it is much less potent than it was even a few months ago due especially to:
    1. The years-long efforts of the leaders and members of GATA in exposing Precious Metals price suppression
    2. The particular Allegations that Major Gold Repositories do not have the physical Gold they say they do. See the following allegation regarding GLD and Deepcaster’s recent article (in the ‘Articles by Deepcaster’ Cache at www.deepcaster.com) regarding the allegation concerning the London Bullion Market Association.

“…another CNBC guest, David Lutz, managing director of the Stifel Nicolaus brokerage and investment banking firm in St. Louis, having been asked for his recommendations in regard to gold, disparaged the gold exchange-traded fund GLD as follows: "I wouldn't necessarily look at the GLD because they don't invest in the physical gold.””

“CNBC, GLD is dissed for not investing in physical gold”

Chris Powell, GATA, 5/12/10

These reports are doubtless leading Major Gold Investors to demand delivery and possession of Physical Gold.

And we recommend that you follow their lead with a significant portion of the funds you allocate to Precious Metals purchases.

Indeed, because Physical held in one’s personal possession is so precious, some forms of it trade at as much as a 20% premium to the spot price of “paper” Gold.

But not all forms of Physical are Equal, as it were.

Some forms are much more liquid than others, and some are much more susceptible to counterfeiting, as e.g. by Tungsten-lacing.

Deepcaster has recently recommended Purchases of One Form of Physical Gold and Silver, that is quite liquid, not easily susceptible to counterfeiting, and commands a considerable premium over the spot price of Paper Gold (and Silver). See Deepcaster’s Alerts “Real Moves & Fake-outs Launching; see Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar & U.S. T-Notes & T-Bonds; & Buy Reco.” (date: week ending 5/14/10) and "Cartel Failing? Precious Metal Buy Reco! Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar & U.S. T-Notes & Bonds" (date: week ending April 16, 2010) in the ‘Alerts Cache’ at www.deepcaster.com.

Nor should you give Short Shrift to Gold and Silver Miners.

But purchasing shares of these should be done with particular care, because, being “paper” (or, usually, electronic entries on some remote server) Miners shares are susceptible to periodic Cartel attacks and Price Takedowns.

Thus, they should be accumulated near interim lows resulting from Cartel Interventions.

In order to estimate these interim lows one needs not only to consider Fundamentals and Technicals, but also Interventionals.

Deepcaster has developed a Strategy which takes into account all three and which is set forth in “Profiting From Cartel Intervention” (06/30/06) in the ‘Articles by Deepcaster’ Cache at www.deepcaster.com.

In sum, had the price of Gold not been suppressed, it would, in our view, now be priced in excess of $3,000/oz (and Silver in excess of $80/oz).

We expect to see those prices in the next few years, or sooner.

Consider Richard Russell’s thoughts:

“The public doesn't understand that the stock market is in the process of topping out. Even as business news turns rosy, stock holders are beginning to show losses. So while the public is losing money in the stock market, they are missing out in one of the greatest bull markets in history the gold bull market, which is now heating up. The smart money of the world is fleeing fiat currencies and loading up on gold as well they should.”

Richard Russell, Dow Theory Letters

Finally, Hard Assets Partisans have the opportunity to become involved in Political Action to diminish the power of The Cartel.  It is truly outrageous that the average unsuspecting citizen, and prospective retiree, can and does put his hard won assets in Tangible Assets and/or Retirement Accounts only to have those assets effectively de-valued by Cartel Takedowns, U.S. Dollar Devaluation and other Cartel actions. This is extremely injurious to many average citizens in many countries who are saving for the rainy day or retirement and have their retirement and/or reserves effectively taken from them.  In order to help prevent this and similar outrages, we recommend taking three steps:

    1. Become involved in the movement to Audit and then abolish the private-for-profit U.S. Federal Reserve as Deepcaster, former Presidential candidate Rep. Ron Paul, and legendary investor Jim Rogers, all have advocated. The ‘Audit The Fed’ Bill is H.R. 1207 (and has over 250 co-sponsors) and S604 in the Senate; and The Abolish The Fed Bill is H.R. 2755.Unfortunately these bills have, thus far been dramatically watered down in this session of Congress. Nonetheless continuing pressure to pass these Bills is important because it is in the long term interest of almost all investor - taxpayers Worldwide.  www.carryingcapacity.org is a nonprofit organization which actively supports these bills.
    2. Join the Gold AntiTrust Action Committee, which works to eliminate the manipulation of the Gold and Silver markets (www.gata.org).  GATA is a nonprofit organization, which makes a great contribution by gathering evidence regarding the suppression of prices of Gold, Silver and other commodities.
    3. Work to defeat The Cartel ‘End Game.’  Deepcaster has laid out the evidence regarding the Ominous Cartel “End Game” in “Coping with Power Moves in the Cartel's 'End Game' “ (04/24/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.  Clearly (and the recent U.S. Dollar bounce) The Cartel is sacrificing the U.S. Dollar over the long-term to prop up Favored International Financial Institutions and to maintain its power.  But this sacrifice cannot continue forever. See Deepcaster’s July 2008 Letter in the ‘Latest Letter’ Archives at www.deepcaster.com.
    4. Use a substantial portion of the funds you allocate to Precious Metals purchases, to buy and take delivery and personal possession of physical Gold and Silver. This will weaken the Cartel and likely enrich you

Perhaps Investor – Taxpayers who are outraged by the fleecing will find some solace in the following News items.

“Federal prosecutors in New York are conducting a broad criminal investigation into whether major Wall Street financial firms misled investors, a person familiar with the matter said on Thursday.

The person said the preliminary criminal probe is being conducted with U.S. securities regulators and involves JPMorgan Chase, Citigroup, Deutsche Bank, UBS, Morgan Stanley and Goldman Sachs Group Inc.”

“Major Wall Street firms face criminal probe: source”

James Vicini, Reuthers, 5/13/10

Our question in closing: Will there be a whitewash?

Unlike most Namby Pamby (and/or Sold-out) Members of Congress, the Icelanders are not messing around. Must be that Viking Tradition.

“REYKJAVIK — More than a year and a half after Iceland's major banks failed, all but sinking the country's economy, police have begun rounding up a number of top bankers while other former executives and owners face a two-billion-dollar lawsuit…

Four former Kaupthing executives, who all live in Luxembourg, have meanwhile been arrested in Iceland in the past week and Interpol has issued an international arrest warrant for that bank's ex-chairman, Sigurdur Einarsson.

Former head of the bank's domestic operations, Ingolfur Helgason, and former chief risk officer Steingrimur Karason were arrested late Monday on arrival from Luxembourg, just days after former Kaupthing boss Hreidar Mar Sigurdsson, along with Magnus Gudmunsson, who headed the bank's unit in Luxembourg, were taken into custody.”

“Bankers jailed, sued as Iceland seeks culprits for crisis”

Haukur Holm, Agence France-Presse, 5/13/10

Best Regards,

By DEEPCASTER LLC

www.deepcaster.com
DEEPCASTER FORTRESS ASSETS LETTER
DEEPCASTER HIGH POTENTIAL SPECULATOR
Wealth Preservation         Wealth Enhancement

© 2010 Copyright DeepCaster LLC - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

DEEPCASTER LLC Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules