In May and June 2011, I wrote four "primers" on PM manipulation; which anyone interested in TRUTH should read. I completed the collection with a fifth in November 2011, and all five are permanently archived with our Miles Franklin Reports.

 

In the second primer - "CARTEL SECRETS REVEALED, PART II" - I wrote of the DLITG, or "Don't Let it Turn Green" capping scheme, per below...

 

...yet another aggravating, long-time Cartel rule, I've coined "DLITG", or "Don't let it turn green." DLITG has been the Cartel's insurance policy against key reversals in PM stocks for the past 5+ years, which if you haven't noticed NEVER happen. If an early down day for the PMS's (be it GLD, SLV, or the HUI) looks like it wants to reverse sharply to the upside, you can count on maniacal resistance at the unchanged mark, something I have observed since roughly 2006, which has never relented. Why GLD and SLV? Because they are the PM proxies watched by Wall Street, and scrolled across CNBC.

 

I've discussed DLITG ad nauseum, but am doing so today given the egregious manner in which it was just used. For those of you with live trading screens; I watch Charles Schwab's Street Smart Edge, a relic from when I owned mining shares - I urge you to watch SLV trade for just 15 or 20 minutes.

 

Since its April 2006 launch, SLV has invariably had around 25,000 shares on the offer three-quarters of the time; representing nearly $750,000 of stock, at today's silver prices. THESE "offers" are Cartel algorithms utilized to prevent sharp increases; and the same goes for the gold ETF GLD - which also demonstrates outsized asks, compared to bids - at least three-quarters of the time.

 

Such algos are so pervasive, they essentially prevent gold and silver from EVER rising sharply during NYSE trading hours. In fact, the COMEX open at 8:20 AM EST is the only time of day sharp rises are permitted; although in gold's case, by no more than 1.0% roughly nearly every time.

 

I'll get to today's "trading" in more detail shortly, but as you can see, DLITG algos were hard at work ALL DAY - in both gold and silver. For the record, GLD closed down $0.06/share - after having finally reached +$0.01 with two minutes left in the day; while SLV closed down - you can't make this stuff up - $0.01/share...

  

 

  

 

Such blatant manipulation is why short-term technical analysis no longer works...

 

Technical Analysis: Bill Holter, Miles Franklin

 

...or, for that matter; the ENTIRE PRICE DISCOVERY process...

 

Fed Now Pre-Monetizing: Bernanke Buys $300 Million Of Treasury To Be Auctioned Off Tomorrow

 

Government INTERFERENCE is as misguided...

 

Santelli to Congress: Ignore The Market, Focus On Your Country

 

...as it is evil...

 

Will Obama Use An Executive Order To Enact Gun Control?

 

...and ALWAYS comes back to protecting the very bankers...

 

The Reasoning behind Basel Three Liquidity Requirement Delays

 

...that DESTROYED the nation...

 

America Meet Your New Slumlord: Wall Street

 

Fortunately, the financial system's "roots" will ALWAYS be real money...

 

$10,000 Gold And 'Monetary' Roots: From Kunta Kinte To Keynes

 

...which ultimately, MUST reclaim their "Once and Future" leadership role...

 

According To the Bretton Woods Calculation, Gold Is Worth $20,000 per Ounce

 

Given the Dow's - heaven forbid! - two-day losing streak, it was a near GUARANTEE the PPT would protect it with gusto. So much so, that despite the "SURROGATE PPT" - Apple - plunging into the close, the slumping "DOW JONES PROPAGANDA AVERAGE" was miraculously saved by a patented "HAIL MARY" rally...

  

 

  

Conversely, despite gold and silver ending essentially unchanged, mining shares were treated to a prototypical "HUI DEAD RINGER" algorithm; that is, peaking in the day's opening minutes; alas, how many hundreds of times have we seen this?...

 

  

 

As for PMs themselves, it's hard not to be impressed with today's resilience; given how hard they had to fight one of the Cartel's oldest, most unrelenting rules; i.e., "all great days (if you consider yesterday's capfest "great") must be followed by horrible days."

 

As you can see, the Cartel protected their current line in the sand at gold's 200 DMA of $1,662/oz six times today; utilizing three "CARTEL HERALDs" - and, for "good measure" - a 12:00 PM EST "cap of last resort" attack...

  

  

...while in silver, the VERY KEY ROUND NUMBER of $30.50/oz continues to be defended "to the death." That said, for the eleventh time in the past three days, the VERY, VERY KEY ROUND NUMBER of $30.00/oz held as ROCK SOLID support...

 

  

 

...with each passing day, increasing the odds it will become - UNBREAKABLE...

 

 

Unbreakable - Trailer

 

 

 

Until this chart inverts - with at least 25% ORANGE, and no more than 25% LIGHT BLUE or GREY; PMs "superpowers" will continue to grow...

  

  

 

...and thus, to prepare for this inevitable END GAME, you must...

 

PROTECT YOURSELF, and do it NOW!

 

Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.

  

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Care of its commandeering by Wall Street in the 1990s...

 

Deutsche Bank Made Huge Bet, and Profit, on Libor

 

...commencing a REIGN OF FRAUD unparalleled in banking history...

 

Housing Fraud Cheered At the WSJ

 

...in ALL aspects...

 

It's Official: It's a Broken Market and "Hundreds of Thousands" of Orders Affected

 

...Congress has proved that ONLY bankers matter...

 

Santelli to Congress: Ignore the Market, Focus On Your Country

 

...at the expense of citizens...

 

Initial Claims Miss Fourth Week in a Row

 

...small businesses...

 

Small Business Optimism Stagnates (Even Before Higher Taxes)

 

...and future generations...

 

U.S. National Debt Clock

 

This, dangerous, REVOLUTION-INSPIRING situation is no different throughout the ENTIRE WESTERN WORLD; as in Europe, where "Goldman Mario" worries ONLY about (rigged) financial markets...

ECB's Draghi - Sees Significant Improvement in Financial Market Confidence

 

...as in Greece, where stocks are rallying...

  

  

 

...while businesses collapse...

 

Greek State Firms are Facing Closure

 

...unemployment soars...

 

Greek Unemployment Soars to New Record, 56.6% of 15-24 Year Olds without Job

 

...and the economic outlook bleakens; Gee, I wonder how THIS will turn out...

 

20 Signs Of Imminent Financial Collapse In Europe

 

Of course, the other part of the "evil troika's" strategy (Washington, Wall Street, and the MSM) is to blot out the "barometers of bad tidings" ; i.e., gold and silver. Both have risen by roughly 20% annually for the past 12 YEARS; but are still stigmatized by PROPAGANDA; not to mention, relentless PM raids that DESTROY investor confidence - as well as the value of "PAPER PM Investments" like mining stocks...

 

Gold mining stock valuations are at the low end of the historical range since the introduction of the gold ETF (GLD) in 2004.

-John Hathaway, Tocqueville Fund

 

Since Global Meltdown II commenced in summer 2011 - incorporating U.S. Debt Ceiling Fiasco I; PM price suppression has been dramatically elevated; just as was the case following "D-DAY" (November 9^th, 2010) - when silver first approached $30/oz, prompting a MASSIVE increase in mining share naked shorting.

 

Consequently, PM sentiment has fallen to its LOWEST LEVELS OF THE ENTIRE 12-YEAR BULL MARKET - despite prices rising each year, and a stronger fundamental outlook than at any time in WORLD HISTORY. Consequently - the elements of a "perfect storm" of PM EXPLOSION - and CURRENCY COLLAPSE - appears nearer than ever...

  

  

 

As for this morning's "markets," global stocks are again up for no apparent reason; with the only "news" being the aforementioned miserable U.S. jobless claims number, and "Goldman Mario" giving an ECB press conference - where he is stating NOTHING incremental.

 

However, in the PM markets, significant "happenings" are occurring. Yet again, gold rose ALL NIGHT until it hit the Cartel's current, IRON CLAd line in the sand at the 200 DMA of roughly $1,663/oz; that is, until the first "CARTEL HERALD" appeared at EXACTLY the 7:00 AM EST open of the New York PAPER "pre-market session"...

  

  

 

However, eventually my fifth "2013 EXPECTATION" - of gold not remaining below its 200 DMA for long - had to be realized. And sure enough - directly following the 8:30 AM EST jobless claims report - it was. Yes, gold immediately met another "CARTEL HERALD" to slow its pace; however, in my view, the post "fiscal cliff deal," sub-200 DMA PAPER PM attack is over...

  

  

...and with it, potentially a FAR MORE IMPORTANT EVENT; the possible FAILURE of the Cartel to get silver below the VERY, VERY KEY ROUND NUMBER of $30.00/oz...

 

  

...which after nearly two-and-a-half years,may FINALLY signify the next phase of the long-term silver bull; that is, the inevitable "ULTIMATE QUADRUPLE TOP BREAKOUT" above the VERY, VERY KEY ROUND NUMBER of $50/oz...   

 

  

 

...likely, coinciding with PM BREAKOUTS in ALL global currencies - starting with Yen Gold, which is doing so today...

 

 

TAKE MY WORD, the current fa�ade of market and economic "calm" cannot be maintained much longer by the "evil troika"; as ultimately, MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA have their limit; which has a name, HYPERINFLATION!

 

"It's Starting To Feel a Lot Like 2007"

 

Thus, take care to...

 

 

PROTECT YOURSELF, and do it NOW!

 

Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.

 

 

 

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As many of you are well aware, I DESPISE "hedge funds" - as much as any Wall Street scam.  And I should know; as I worked as a hedge fund analyst/trader in 1996-98; a vile experience I have described in multiple RANTS.

 

"Hedge funds" are supposed to be "market-neutral"; that is, as long as they are short. However, I'd guess 90% are long-only, or nearly so; constantly falling prey to "OPTIMISM BIAS", "career risk fear"; and, of course, fraud. 

 

Typically, such "2+20" funds take 2% of your funds in annual management fees, and 20% of all profits; while NOT sharing in the losses and only allowing withdrawals once or twice per year - often, with significant penalty fees.  In other words, a GIANT SCAM; particularly as 88% underperformed the S&P 500 in 2012 - when essentially ALL asset prices increased...

 

88% Of Hedge Funds, 65% Of Mutual Funds Underperform Market In 2012

 

Given the S&P 500 was up 16.0% in 2012 (including dividends), the average hedge fund return of 1.2% was not only horrible, but nearly CRIMINAL...

 

Bloomberg Global Aggregate Hedge Fund Index

 

And just to rub it in Wall Street's LYING, CHEATING, INEPT faces, here's a comparison of the Bloomberg Global Aggregate Hedge Fund Index with other assets classes over the past five years...

 

 

Relative Performance, 2008-12
Asset Class	2008	2009	2010	2011	2012	Average
Silver	-28.5%	56.2%	74.7%	-3.7%	8.0%	21.3%
Gold	1.5%	25.5%	28.3%	13.2%	5.9%	14.9%
Dow Jones Ind. Avg.	-29.4%	15.4%	11.0%	6.2%	6.5%	1.9%
HUI Index	-26.1%	29.7%	25.0%	-15.0%	-10.9%	0.5%
Global Hedge Funds	-16.9%	7.7%	7.9%	-4.4%	1.2%	-0.9%

 

 

As you can see, not only did hedge fund managers get BLOWN AWAY by PHYSICAL silver and gold; but even the staid Dow and horrifically suppressed HUI as well.  And better yet, even the "ALGO FUNDS" - which use nothing but computer programs to "beat the market"; have lost money two years running!

 

London Quantitative Hedge Funds Report Second Year of Losses

 

In other words, you'd have to be INSANE to put money with so-called "brilliant" hedge-fund managers... 

 

Paying 2 And 20 For What Again? Hedge Funds Underperform Stocks For Third Year Running

 

Heck, I've known hundreds of such "geniuses" over my 20+ year Wall Street career; and TRUST ME, 90% are common "stock jockeys"; piling into whatever "hot stock" is making headlines - typically, right at the top...

 

A Record 216 Hedge Funds Own Apple: The World's Biggest Hedge Fund Hotel Gets Even Bigger

 

And by the way, to "Trader X"; you know, the guy that claims "mega-Hedge Funds" are the culprits behind PAPER PM shorting - give me a break.  These MOMENTUM MORONS can't even beat the market with Apple; so why on Earth would they be shorting assets that have risen for 12 straight years?  Let alone, at odd hours like 8:00 PM EST; or in WATERFALL fashion, ensuring the worst possible execution?

 

True, some such funds - the most dangerous of all, executing extremely short-term trades - are what Ted Butler calls "raptors"; that is, trading off the same, blatantly obvious Cartel "signals" I highlight each day.  However, if that were the case, they'd eventually need to COVER their shorts, causing an occasional sharp increase; which NEVER seems to happen.

 

In the big picture, "hedge funds" are nothing more than a Wall Street SCAM - in most cases, perpetrated by "Tier 3" and "Tier 4" idiots - to STEAL from unsuspecting investors.  Most are too dumb to invest themselves out of a paper bag; let alone create complex frauds like COMEX gold and silver naked shorting.  Thus, the further from these leaches you stand, the better off you'll be!

 

PROTECT YOURSELF, and do it NOW!

 

Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.

 

 

 

Hi Andy, 

 

You may remember me as a loyal follower of your daily rant located in Germany. 

 

I have question with regard to precious metals but like to approach it in an unconventional way:

 

Recently I read in German magazines/online newspapers that the US do have a huge gas reservoir consisting of shale gas. The technique of fracking provides a promising gas extraction method. Some say this is a huge chance for US to profit from it big time.

 

What is your opinion:

Is there a chance that the United States of A. can use their huge gas resources to reduce its debt significantly and avoid financial disaster? Maybe they also can reduce the trade deficit by exporting gas to foreign countries. Out of this might there arise a link to the price of precious metals in your eyes in the years ahead?

 

Kind regards

 

Martin

 

Martin,

 

I was an oil analyst for ten years, and still have no idea how "real" the shale is.  Some say it will reduce U.S. energy independence dramatically, but I've heard that 100 times before.

 

And whether or not it does, the U.S. financial situation is WAY past the point of no return.  Slightly cheaper oil won't do a thing to change it; especially as the biggest components of the deficits are ENTITLEMENTS, not energy costs (which are miniscule in the big picture of U.S. spending).

 

Andy

 

________________________________________________________

 

Andy,

 

Enjoy your rants. I understand you don't like any gold stocks or ETF's, like GLD and SLV, but I am wondering what your thoughts are on the Central Fund of Canada, CEF. In your opinion, is that not much safer than the other ETF's, or would you advise staying away from that also?

Thanks,

 

RT

 

RT,

 

I am a big fan of Stefan Spicer, who I have been friends with for years. He is the CEO of CEF (as well as sister funds GTU and SVRZF), and his father - Phillip Spicer - is the Chairman. Phillip actually started CEF in 1963 or so - remarkable.

 

I have ZERO doubts regarding the funds' holdings, as I am SURE they have every ounce of gold and silver they say.

 

For those that can ONLY hold "PAPER PM Investments" - with cash holdings in brokerage accounts - it is a fine choice; as are the Sprott funds PHYS and PSLV.

 

However, it is still just a stock; and thus, subject to most of the same systemic risks in the PAPER system.

 

Andy

 

________________________________________________________

 

Hey Andy,

 

Sorry if you have explained in the past, I may have missed it.

 

How did you calculate the minimum targets of $15,000 & $1,000 for gold and silver respectively?

 

Thanks, 

 

S

 

S,

 

Divide the published U.S. monetary base (LOL) by the published U.S. gold reserves (ROFLMAO) to get roughly $20,000/oz; a number that rises with each printed dollar.

 

For silver, a target 5:1 to 15:1 gold/silver ratio; as current silver:gold production is 9:1, and essentially ALL the silver EVER produced has been consumed by industry.

 

Andy

 

________________________________________________________

 

Andy

 

You have probably posted how you feel about generic silver rounds in the year+ I have followed you. In a recent post by Bix Wir he stated any silver not produced the US mint will most likely be taxed so high that we are more or less wasting our money now. How do you feel about this?

 

Thanks

 

Gary

 

Gary,

 

I have no problem with generic rounds in general; so long as they are bought from a reputable source like Miles Franklin. In fact, I own MANY silver buffaloes; and other well-known rounds like Engelhards, etc..

 

In today's silver-ignorant world, premiums will remain higher on government-minted coins like Eagles and Maples - which should form the core of your silver position (along with junk silver for emergencies). However, silver is silver; and when the panic finally begins, the ENTIRE WORLD will become silver savvy - as they became "tech stock savvy" in 1999; and subsequently, I'd expect the premiums of Eagles/Maples over quality generics like Buffs to decline.

 

As for what Bix says, he knows what will ultimately occur no more than anyone else. And TRUST ME, if the reactive government ever got so reactive as to tax Eagles by 90% (or pick a number), it would be because the dollar had ALREADY collapsed; in which case, said PANIC for silver will have already begun, and the black market flourishing.

 

Just get your silver anyway you can; and diversify your silver holdings per above - and you'll be fine!

 

Andy

 

 

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Andrew ("Andy") Hoffman, CFA joined Miles Franklin as Marketing Director in October 2011.  For a decade, he was a U.S.-based buy-side and sell-side analyst, most notably as an II-ranked oil service analyst at Salomon Smith Barney from 1999 through 2005.  Since 2002, his focus has been entirely on Precious Metals, and since 2006 has written free missives regarding gold, silver, and macroeconomics under the moniker "Ranting Andy."  Prior to joining the company, he spent five years working as an Investor Relations officer or consultant to numerous junior mining companies.   An archive of Andy's "RANTS" can be found on the Miles Franklin Blog here.

 

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