Michael Noonan – First, the good news and taking a moment to celebrate the recent unstoppable rally in both gold and silver where, as has been expected, silver is outperforming gold. While we have stayed clear of paper futures from the long side, over the past few years, almost each and every week we have continued our mantra of buying and accumulating the physical metal. It is beginning to pay off, especially for purchases made throughout last year and this one.
This is not yet a victory lap, for the market remains in its transitioning phase, but the faithful, for what has always been considered the only true form of money: gold and silver, can relax more and shed the deer-in-the-headlights look after seeing both pummeled to the downside so relentlessly over the past several years by the money changers.
In the battle being waged between Truth [physical gold and silver] and Lies [all paper contracts], the indestructible PMs will always prevail, and the time is nearing. On Thursday, at the peak of the rally, and during yet another Draghi lie called a press conference, “someone” dumped over $2 billion in paper gold onto the market. That is 16,000 paper contracts, with emphasis on paper contracts for it sure was not physical gold that was being dumped. For silver, around 7,500 contracts were sold at the same time.
How much more blatant can the central bankers be? How much more will be the effect of such stupidity? Holders of the physical know very well what is being “sold” is useless paper, not the real metal, and as with QE-t0-infinity, bankers have pretty much run out of “fixes.” These are definite signs of the end game for PMs suppression.
While the Less Is More philosophy works well in the real world, more dumping of central bank paper is having less effect on the real market. Where the drinking of kool aid by the Jones cult led to the death of all 900 followers in Jonestown in 1978, those who currently continue to follow and “swallow” the globalist’s paper kool aid currency will also die a financial death, of sorts.