Tuesday, October 4, 2016

Gold Down Hard!

National Day Golden Week Holiday and the West is selling!
On the market today we see gold heading south like it was on a water slide at the Wisconsin Dells.  Many mainstream outlets reporting higher dollar and job reports.  But what's not being reported is the fact the Central Banks don't want the public to sense there is a failure in the monetary system.  For some time now Russia and China have been beefing up their reserves in gold, compared with China, Russia has registered higher average monthly gold reserve purchases between January and June 2016 at 14 tons a month, according to latest IMF figures.  Many speculate at some point one country will switch to a gold standard for its currency which would crash the dollar.  China and Russia, the world’s No. 1 and No. 3 producers of gold are making waves in the market where Eastern Empire has never been this strong in human history against the West.

On 8/31/2016 China made history of issuance of SDR bonds since 1981, the World Bank plans to sell as much as 2 billion SDR of such bonds in China.  On Saturday just last week, the Chinese yuan currency was added to the IMF's special drawing rights (SDR) basket, joining the US dollar, euro, yen, and the British pound.  What's interesting today in the price drop of gold @ $40 so far, China is on holiday, 'National Day Golden Week Holiday' this is a common local holiday.  Could you imagine the panic when you can't reach your broker if he took off?  This is a real kick from the West and the timing is too perfect for a play on gold.

Western economics are in panic mode, the banks have lost all respect from the public and States.  Wells Fargo is losing customers by the basket full along with state and city customers like California and Chicago, so far.  Looking at European banks, Deutsche bank is in crisis mode and that's being kind.

Chart from wolfstreet.com

From the looks of the monetary system, the metals are still your best bet because all the tea in China will not prop up these markets.  We've been experiencing the plunge protection of stock markets from QE around the globe and the shorting of metals.  Back during the U.S. depression the government debt to GDP ratio was 30%, today that ratio is 104% and China's ratio is 43%, you can see why the Western Empire wants to step on the Dragon's tail.  In the words of Paul Harvey "and now you know the rest of the story".

Gold settles $1270 from a high in July of $1400    

GoldSilver (w/ Mike Maloney)

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