Gold and silver have another major fall since September. Here is a brief update on what happen and this time I will compare it with the fall in September as there are too many similarities and these can be used as future guidelines as most of the fall or correction happen when these events take place. I will also give a brief overview of the current market situation and the looming crisis.
Before the major fall of gold and silver price this year in September JP Morgan announced that gold will rally and recommend their client to buy gold and before the current fall Goldman Sac also recommend their clients to buy gold. Of course they are not wrong as gold and silver is still bullish in the long term but because the banks are mainly pushing for short term gold and silver financial product and the mass will usually follow the advises of the bank. The bank as a business tends to gain more by manipulating and shorting the paper market and racks in Tons of money from the masses. To them squeezing every ounce of money out of you is business.
Similar to the fall in September, It happens around option expiry date. There is always an issue with CME taking delivery when options expire. For every big movement up in gold and silver they will lose tons of money. Just treat them as an internet casino. They will only make profit if you make a loss. Why did I say internet casino? That is because they run on paper and all of the odds are stack against you the moment you step in. You will have a better chance if you go into a normal casino as compared to an internet casino where your odds of winning is already determined in their programs. Only those who know how to read and follow the tail of these people can make money together with them.
In September USD also rally while nearly every other investment falls including commodities Price of gold and silver in the paper market will dropped due to rallying USD because people find it more expensive to trade and because people are trying to cover for their loss in other part of the market.
On the other hand now we take a look at the physical market. With the physical demand of gold rising and central banks increasing their holdings of physical gold one must expect gold price to go up but price of gold in the paper market actually tumbles. Russia central bank is adding another 100 tons of gold to their holding this year. Demand for physical gold and silver have never been higher despite the falling paper price. Even when paper price fall drastically, physical dealers are increase the premium when selling based on real market supply and demand. The real money to be earned lies in physical gold as the futures and options market will detach from the physical market one day especially after the opening of the Pan Asian gold exchange where price will be able to peg to actual physical demand and pricing.
Back to the fundamentals, now let’s take a look at the world situation. Europe is nearly as good as dead. The USA official data about their debt exceeding 15 trillion only goes to show that nothing have changed for the better and situation in US will only be getting worst. Currently everyone is rushing into USD and they claim that it is a safe haven. What is safe about a fiat currency backed only by debt and poor government policies? What had happened in history to all countries that keeps printing money is hyperinflation and USA is heading toward that direction. Don’t expect China to come and save the world as they have too much problems on their hands to solve to prevent themselves from falling into a serious recession. China property market is already collapsing. The previous banking crisis still has the countries and government to bail them out. The current crisis is the country itself that needs to be bailout. We are dealing with not a banking default but a sovereign default crisis that is looming now. Even in Singapore the Deputy Prime Minister Tharman Shanmugaratnam has warned of a possible severe slowdown in the global economy. This crisis is going to make the previous one look like a walk in the park.
Like I say before and I will say again. The real money will come from physical gold and silver and I always advocate to my clients, families and friends that physical gold and silver is for the long run. Horde up when you have the chance when there is a dip to increase your physical stash. Our journey on the gold and silver bullet train is only halfway through and is far from over. Do not fear or panic as we know that our destination to true wealth is just ahead.
PAMP SUISSE LADY FORTUNA
Gold and silver have another major fall since September. Here is a brief update on what happen and this time I will compare it with the fall in September as there are too many similarities and these can be used as future guidelines as most of the fall or correction happen when these events take place. I will also give a brief overview of the current market situation and the looming crisis.
Before the major fall of gold and silver price this year in September JP Morgan announced that gold will rally and recommend their client to buy gold and before the current fall Goldman Sac also recommend their clients to buy gold. Of course they are not wrong as gold and silver is still bullish in the long term but because the banks are mainly pushing for short term gold and silver financial product and the mass will usually follow the advises of the bank. The bank as a business tends to gain more by manipulating and shorting the paper market and racks in Tons of money from the masses. To them squeezing every ounce of money out of you is business.
Similar to the fall in September, It happens around option expiry date. There is always an issue with CME taking delivery when options expire. For every big movement up in gold and silver they will lose tons of money. Just treat them as an internet casino. They will only make profit if you make a loss. Why did I say internet casino? That is because they run on paper and all of the odds are stack against you the moment you step in. You will have a better chance if you go into a normal casino as compared to an internet casino where your odds of winning is already determined in their programs. Only those who know how to read and follow the tail of these people can make money together with them.
In September USD also rally while nearly every other investment falls including commodities Price of gold and silver in the paper market will dropped due to rallying USD because people find it more expensive to trade and because people are trying to cover for their loss in other part of the market.
On the other hand now we take a look at the physical market. With the physical demand of gold rising and central banks increasing their holdings of physical gold one must expect gold price to go up but price of gold in the paper market actually tumbles. Russia central bank is adding another 100 tons of gold to their holding this year. Demand for physical gold and silver have never been higher despite the falling paper price. Even when paper price fall drastically, physical dealers are increase the premium when selling based on real market supply and demand. The real money to be earned lies in physical gold as the futures and options market will detach from the physical market one day especially after the opening of the Pan Asian gold exchange where price will be able to peg to actual physical demand and pricing.
Back to the fundamentals, now let’s take a look at the world situation. Europe is nearly as good as dead. The USA official data about their debt exceeding 15 trillion only goes to show that nothing have changed for the better and situation in US will only be getting worst. Currently everyone is rushing into USD and they claim that it is a safe haven. What is safe about a fiat currency backed only by debt and poor government policies? What had happened in history to all countries that keeps printing money is hyperinflation and USA is heading toward that direction. Don’t expect China to come and save the world as they have too much problems on their hands to solve to prevent themselves from falling into a serious recession. China property market is already collapsing. The previous banking crisis still has the countries and government to bail them out. The current crisis is the country itself that needs to be bailout. We are dealing with not a banking default but a sovereign default crisis that is looming now. Even in Singapore the Deputy Prime Minister Tharman Shanmugaratnam has warned of a possible severe slowdown in the global economy. This crisis is going to make the previous one look like a walk in the park.
Like I say before and I will say again. The real money will come from physical gold and silver and I always advocate to my clients, families and friends that physical gold and silver is for the long run. Horde up when you have the chance when there is a dip to increase your physical stash. Our journey on the gold and silver bullet train is only halfway through and is far from over. Do not fear or panic as we know that our destination to true wealth is just ahead.
PAMP SUISSE LADY FORTUNA
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