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Silver's Relentless Beatdown Bookmark


Commentary:
 

NOTE>>> I have a lot to say about this Ebola thing, but since it just hit the US on Tuesday, I’m not prepared. But this weekend I’m going to talk about the entire situation. Stay tuned.

Another Note>> 
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Silver, the Fraud Continues
 
I’d like to start this article by posting a few questions a lovely lady sent in to me this week, and I think all of you should see it and we can talk about it. So, let’s get to Elizabeth’s questions…
Commentary:
 

NOTE>>> I have a lot to say about this Ebola thing, but since it just hit the US on Tuesday, I’m not prepared. But this weekend I’m going to talk about the entire situation. Stay tuned.

Another Note>> 
We've created a Facebook page where I'm going to be making comments about the market on a fairly consistent basis. So please go there and do the "like" thing so that any alerts or market comments I make show up on your page.

 https://www.facebook.com/investyourselfnews

 
Silver, the Fraud Continues
 
I’d like to start this article by posting a few questions a lovely lady sent in to me this week, and I think all of you should see it and we can talk about it. So, let’s get to Elizabeth’s questions…
 
Silver is money, right?
In the big inflation that's coming....how do I convince a storekeeper that my silver half dollar is worth more than 50 cents?
Do I sell the silver on Ebay?
Go to a coin shop to turn it in?
What's the procedure for making it useful in a time of extreme inflation?
Will the only people who appreciate silver be other people who buy silver and gold?
I see the price is pretty low now, and I’ve been tempted to buy more...but what do I do with it to realize its increased value later?
 
Thanks.
Elizabeth
 
Okay, before we get into the meat and potato’s of Elizabeth’s questions, let’s focus on silver for a moment. Last week we talked about why Gold is being suppressed and who’s doing it. Well this week we’ll talk about silver and who the bad guys are there too.
 
First off, as I’ve mentioned in the past, Silver has become a very interesting metal. While gold is primarily used as money and in jewelry, silver has hundreds of industrial uses. In fact, the amount of silver used in making things, outstrips the amount bought for investment purposes by over 9 to 1. So it would seem that silver should be going up right? Right. But it, like its golden colored brother has been beaten unmercifully. What is up with that?
 
You have two choices to make right now folks. One is that you can listen to the main stream media, consisting of Wall Street and those blowhards as it pertains to why silver can’t get anywhere, or you can listen to the folks in the trenches who see the manipulations and call them out. The choice is yours. If you tend to believe the TV folks, then you might as well stop right here. If you don’t, then it is safe to proceed.
 
You all have heard the expression that the truth is often stranger than fiction. NOTHING displays this in real time as much as  dealing with Wall Street. They will convince you that up is down, and down is sideways. They are the masters of spin, a skill they learned from the best of all spinmeisters…the bankers. Yet sometimes the truth is so darned strange, the average person says “that just can’t be”. Well I beg your pardon, but it most certainly can be and is be.
 
You and I, and the other billions that make up the bulk of the worlds population aren’t privy to the inside scoop. You are only privy to what you hear via some media outlet. Yet we know that what we hear is often just not true. Consider the statement…if you like your plan you can keep it. Period.  Well that was regurgitated a million times in the media. But it wasn’t true. Or how about Benghazi? You were told it was over a You-tube video. That was presented as the absolute truth. But of course it was baloney. Or how about the IRS targeting conservatives. The media said over and over that wasn’t true. But the facts show it was.
 
You only know what they want you to hear. So after dozens of folks from Ted Butler to Adrian Douglas, to Andrew Mcguire to you name it; showing the CFTC and the regulators direct and absolute proof of manipulation, the regulators shut down the investigation and announced there was no evidence what so ever. Move along, there’s nothing to see here. Well that’s horsecrap. Of course there’s something to see. But what? What is the purpose of pounding this metal to oblivion? And why were the regulators told to ignore it?? Who’s calling the shots and why?
 
The standard line that most people think is the reason for the beat downs is so the banks can make big bucks. But I ask a simple question. Haven’t the banks made umpteen billions by manipulating the stock market higher? They have indeed. So why would they not just manipulate the price of silver higher and make their billions? In fact wouldn’t it be easier? YOU bet it would. They could conjure up shortages, and blast the price higher and higher, raking in the big bucks. Why do it on the short side, when you know the supply is dwindling, and demand is so high?? It makes little sense to blame it on greedy bankers trying to make a killing.  With the amount of physical demand for silver, the easy money would be to jack the prices and rake it in like pirates.
 
The reason silver is getting whacked to death is because “someone” wants it cheaper. In the face of enormous demand, in the face of rapidly depleting supply, they still want it cheaper. But whom, and why? Once again I think we have to point to our friends in the far East. China comes to mind.
 
Now there’s no web site I can point you to. There’s no Government issue article that I can point you to. Sorry, that’s not the way the manipulation game goes. It’s not the way central banks work when colluding with bullion banks and Governments. But you can connect the dots and form a picture. Silver is being whacked lower and lower in the “paper” markets, and on every price drop, it is being sucked up by the truckload in the physical form.
 
For reasons that would require me to use up two full letters, lets just say it appears to be China who’d wielding the short stick that’s beating the metal. Yes they’re using US banks and Commercials to do it, but they’re the only one’s that make sense. There’s a lot of reason to believe that they leased the US a heapload of silver in 2003, and when it came time to repay, the metal wasn’t there. Sort of like Germany asking for her gold and the US said it would take 7 years to give it back.
 
The interesting thing about all this is that just like in Gold, things are going to change. The world produces about 2200 tons of gold a year. Well, China India and Russia suck that up. What about the other 100 countries that continue to buy it? Won’t it “run out?” It will. Silver is running out as we speak. The demand outstrips the supply.  But until the gold is gone, until the silver is gone, they’ll probably continue to try and keep it  as low as they can while they amass the physical metal. Sad, but unfortunately true.
 
I desperately want you to see and understand the following numbers folks. The mint has just released its month end reports and if you think that no one is buying gold or silver because of the price manipulation, think again. Hard.
 
The totals for the month of September are as follows: They sold 58,000 gold eagles---14,500 one-ounce 24K gold buffaloes---4,140,000 silver eagles---and 2,700 platinum eagles.  The only product that didn't see a sales increase of over 100 percent compared to August were the gold buffaloes---and sales there were up 'only' 81 percent. Do you see my point? Demand for the STUFF is off the charts. Yet the price is being beaten downward almost daily. Does that make sense to you? NOT by any conventional means, it cannot. Thus the idea that “someone” has been granted a license to beat it lower and accumulate masses of it at prices below reason or logic makes sense.  NOTHING else does.
 
Now back to Elizabeth….
 
Silver is money, right?
Yes it is, but it much more than that. It’s one of the few metals that is both a money and an industrial metal. It is valuable stuff, and they’re using it up.
 
In the big inflation that's coming....how do I convince a storekeeper that my silver half dollar is worth more than 50 cents?
Because in the “big inflation” silver will not be 18 bucks an ounce, it will be a multiple of that. Your Silver half dollar will be worth considerably more. Just understand that in a really bad SHTF situation… The dollar value of your metal isn’t as important as what the metal will barter for.
 
Do I sell the silver on Ebay?
Go to a coin shop to turn it in?

 
It depends. I’m not being funny here, I’m serious. If you’re buying it just to offset a wicked inflationary situation, then you will want to sell it to a bullion dealer for the prevailing price. Let’s say You bought a bunch at 25 bucks…things get crazy and silver is now 65. You’d want to sell it to the bullion dealer that offers the best price. If something really ugly were to hit, you’d want to keep it and use it as money for necessities. Remember you don’t buy gold or silver to “make money” you buy it to try and offset the devaluation of the paper money.
 
Will the only people who appreciate silver be other people who buy silver and gold?
I see the price is pretty low now, and I've been tempted to buy more...but what do I do with it to realize its increased value later?

 
The people who appreciate silver are those that 1) use the metal to make things ( solar, medical, communications, space, etc) and 2) people that understand the idea that it is an insurance plan. In the last 200 years, over 40 currencies have gone to “0”. Silver has never been “0” in recorded history.
 
Don’t do anything with it. One of the beauties of Gold and Silver is that they aren’t someone else’s debt. Just hold it and let the moonbats that run our economic system blow things up. Then you can use it as necessary.
 
Let me end by saying the same thing I said about Gold the other day. I KNOW it’s falling. I know it stinks. I KNOW a lot of you probably just think I’m a metals nut and won’t change my mind no matter what. But again, that’s not true. I like silver for a multitude of reasons, and NOT ONE OF THEM has changed from the time silver was 9 bucks, or 40 or 18.  I’m not buying silver for a quick trade, not looking to make a fast score. I’m buying silver simply because I see an end game playing out and I will be rewarded for my patience. It isn’t easy, but I think it’s necessary. Trust me folks, if I didn’t believe in the metals, I’d scream for you to dump it all and run.
 
We live in a dot-com world. People expect things “now”. Silver and gold have been manipulated down since 2011 when China said “no more” to our insane Federal Reserve. In this day and age, 3 years of beat down is more than most can withstand. I get it. But don’t forget folks that the dollar in your pocket has been cut by 70% of its value since 1971.  If you had bought gold or silver in 2001, you’d be up hundreds of percent and not bothered by the fraudulent beat downs. If you didn’t buy until it was already high, this has been painful.
 
It will stop. It will go up. Just like every bull market ends, every bear ends. No ponzi scheme runs for ever, no manipulation lasts for ever. They’ve kept it up for 3 years, I have to give them credit…I didn’t think they could go that long. Bravo. But it doesn’t change the facts. The world is broke, and cutting big trees, turning it into paper and calling it a 100 dollar bill seems pretty lunatic too. I’ll take my chances with the metal instead of Janet Yellen or Helicopter Ben.  Gold has never been zero. Silver has never been zero. Paper currencies have been however. I like my odds.
 
The Market…
 
So Monday came and they had to fight and scratch to pull it off, but they finally succeeded in getting the S&P over its 50 day moving average. The market was deep red for most of the day and the S&P was well below that significant level.  They were desperate to make sure they weren’t going into a close with the S&P below the 50 and they did it. It was an epic struggle, but when the Fed’s your friend, you can do amazing things.
 
Tuesday there was more drama. The market was red, went green and back to red. This despite an incredible 400 billion injection from the Fed into the banks via reverse repo. Why did they do so much? It was the last trading day of the quarter and they had to pull out the stops to make sure it didn’t coast into the close looking like it was ready to puke.  
 
It was really pretty funny watching the last hour of trading. The DOW was off about 30 and the S&P was well below its 50 day moving average again. Yet the “bet” would be that somehow, some way they’d find the might to get it back up and over. Even at 3:30 the S&P was still two points below that significant milestone. Would they do it? Would the Fed’s 400 billion injection to the banks carry the day?  
 
At 3:36 it happened. The DOW went green, and the S&P was at 1976, its 50 day moving average. Isn’t that amazing? No it’s manipulated fraud at the highest level. It is central planning gone wild. Right in your face.  But alas, it couldn’t hold the last six minutes and we ended the day down 28 on the DOW and 5 on the S&P, placing it 4 points below its 50 day.
 
Right about the time the market closed we started getting reports that Ebola had landed in the US as someone in Dallas was in quarantine with a confirmed case. No matter how much they try and keep folks calm, you know that had to lend a bit of tension to the air.
 
But I have to be frank with you all. This entire ebola outbreak stinks like 5 day fish on so many levels.  I’ll devote the Sunday issue to looking at just what is wrong with this while picture and while you’ll think I’m nuts… I’m simply going to present you all with some facts. I think you’ll be awful surprised at what we find.
 

So, Wednesday had the ability to open red or green. Ebola would be scary, but it is the Fed’s job to push the market up in the face of ugly news. So it was possible they’d pump the market in a show of bravado, or it was possible that enough folks would toss in the towel to take us down. Well they took us down.  Soon after the open we were deep red and heading lower.  By noon we’d already seen the DOW off 175 points and the S&P off 17.  Yet that wasn’t the end of it by any means.  When the final bell rang, we were down 238 DOW points and a whopping 26 on the S&P.  

 

Okay, where does that leave us? Not looking good folks. The DOW and the S&P are well below their 50 day moving averages.  The small cap Russell is miles below its 50 AND 200 day moving average.  Even the XLF failed its own 50 day moving average at the close.  Just about any way you look at it, this market is in trouble and looking dangerous.

 

On Sunday the 20th I devoted the entire newsletter to warning you all that the market was set up almost perfectly for what could be a significant pull back.  But let me ask you… is this a significant pull back? NO, as of right now it is not. They’ve not allowed a TRUE correction, meaning a 10% fall in over 3 years. But they’ve allowed several 3 – 5% pull backs along the way and recently even dips as low as 2% got bought.  Well right now the DOW is only off about 3.5%. The S&P less than 4 from the highs.

 

My point is this…I’m glad I got it right concerning the market setting up for a fall, because it’s always nice when you get it right. But so far this is your ordinary garden variety pull back that we’ve seen half a dozen times.  In other words for the S&P to actually achieve a 10% correction from the high, it would have to fall all the way to 1817.  Well it ended today at 1946. That’s a heck of a long way down. Like wise the DOW, would have to fall to 15615. We actually closed at 16804. That’s more than a thousand points lower.

 

The market looks horrible, and it feels dangerous. Yet we all know that “one word” from the right folks and “blammo” up we’ll go. Well tomorrow Mario Draghi is expected to try and offer up some form of “QE Lite” for the European Union. If he goes against the European constitution and does announce QE of sorts, in a bizarre twist, our market will rejoice. Wall Street loves free money.  So, while everything points to more downward action, just know Mario lurks. Not to mention they’ll probably parade some idiot Fed head out to talk happy talk.

 

It is NO time to be brave folks. We’ve got to let the market prove to us what it is going to do. The DOW and the S&P are both between their 50 and 200 day moving averages,  in a sort of no man’s land. It could fall again, it could bounce for a day or two. But for right now… just be very very cautious okay?

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