In the true, military sense...our situation remains "normal"...
I mean, seriously. Nearly every central bank in the fiat world is rushing to debase and devalue its currency in a vain attempt to monetize its debt and extend The Ponzi. This cash invariably sloshes around the planet and drives everything higher. Stocks, crude, food items. It doesn't matter, they're all going higher except...the metals, of course.
The only real monetary alternative...the two things that should be benefiting the most...the only alternatives to fiat currency...remain under assault and pressured lower. Why? Well, that's easy. The Fiat Masters must not allow gold and silver to appear as a reliable alternative. The illusion of prosperity and calm must be maintained, therefore, gold and silver must be kept lower.
So, the situation this fine Tuesday remains normal, all F'd up. Stocks are soaring and reclaiming all of the losses from yesterday. The Pig is stable and remains a "safe haven". The U.S. 10-year note continues to yield 2%...finding willing buyers even though they are virtually guaranteed a minimum of -10% annualized real return if held to maturity. (But, hey, when the only "willing buyers" are The Goons at your own central bank, why does it matter anyway?) And the metals continue to be slammed by The Cartels and their willing and unwitting accomplices in the momo trade. Whatever. It's all just a complete sham.
Please, I beg you, use this remaining time smartly. Though it's probably wise to play along with some of your cash (if they are going to relentlessly drive stocks higher, you might as well let them make you some extra fiat), now is the time to be preparing for The Paradigm Shift. This global monetary change will not occur this week...it likely won't occur this month...maybe not even this year...but it will occur. Of that you can be certain.
In the meantime, in our SNAFU world, the most valuable assets that you can accumulate...physical gold and silver...continue to see their prices controlled and driven lower at the urge of a machine and a headline. Oh wow! Something called the "non-manufacturing ISM" can cause prices to gyrate wildly both before and after the "news". Amazing. Simply amazing. Just btfd and forget about it, lest you be driven crazy like yours truly...
So here are your updated charts. Well, sort of updated. I printed them off about an hour ago and prices have moved about quite a bit since (see paragraph above). Regardless, the pennants and resistance levels remain valid so these charts should remain helpful.
Look, I know this is extremely challenging, frustrating and agonizing and it seems that it will go on forever...that The Forces of Darkness will remain in control of the metals and that they will simply create enough paper metal to suppress price to eternity. Let me assure you, they can't and they won't. In fact, I am convinced that gold is on the verge of a major breakout. Open interest fell Friday to just 423,613. This is the lowest level since the price lows of 12/27/12 and late August of last year. Combine this with the CoT structure, the charts and physical picture and you've got the recipe that has preceded virtually every other breakout. This will undoubtedly prompt a rally in silver, too, so hang in there. Just be patient.
A couple of headlines that you cannot and should not ignore. First, it's official. The U.S. no longer has a "debt ceiling". The issue has been permanently punted by the politicians who were afraid that the negative press was beginning to affect the re-election possibilities. Oh sure, tack on the silly "you'd better pass a budget or we'll hold back your pay" nonsense and The Sheep and MSM will just forget about the whole thing in a few days. August 2013 will come and go and the U.S. debt will simply grow unabated, to infinity. https://blogs.wsj.com/washwire/2013/02/04/obama-signs-debt-ceiling-law-now-what/
In regards to "The Paradigm Shift", here's your latest world gold reserve update. https://www.zerohedge.com/news/2013-02-05/china-imports-record-amount-gold-december-price-drop Your "friends", the Chinese, officially imported 834.5 mts of gold last year, doubling the already-massive 431 mts they imported in 2011. This brings they're reported official holdings to somewhere north of 3,000 mts. However, none of that total includes the gold that they have imported "unofficially" and that which they simply mined themselves. (Remember that in 2007, China surpassed South Africa as the world's largest producer.) And please, please, don't forget about this: https://www.tfmetalsreport.com/blog/3924/gonefor-good The metal that the Chinese are taking from The West is being re-cast into one kilo bars, never to return to the LBMA system. It's gone and it ain't comin' back.
(And yet, paper price declines. I just happened to check prices a minute ago and I see that gold is now about $20 off its highs of an hour ago. What a complete joke. Nice to see that this post is appropriately titled, though.)
And finally...after all this time reading about currency devaluation and Chinese plans...it's time you connect a few dots. If you think that this: https://www.zerohedge.com/news/2013-02-05/chinese-warship-prepared-fire-japanese-destroyer-last-week and this: https://www.telegraph.co.uk/news/worldnews/asia/northkorea/9846447/North-Korea-preparing-for-two-nuclear-tests.html and this: https://www.guardian.co.uk/world/2013/feb/05/north-korea-video-us-city-flames are completely unrelated to this...
...then you're crazier than I am. It's a wild and dangerous world out there, full of intended and unintended consequences. Please continue to use his time wisely and btfd.
TF
