Wrapping Up the Financial Year

Several things to go over this morning:

First off is the condition of Gold. As I told you, we are (IMHO) in immediate danger between now and March 1 of seeing gold break below the $1,000 level.

Before that can happen, though, we will first break the $1,100 handle and that could happen before year-end.

To be sure, there has been a lot of turmoil in places like India, but one must remember that accounts of “foreign gold prices soaring” must be adjusted to their dollar-denominated behaviors. When this is factored, the movement in foreign markets is hardly alarming.

Secondly is the newsletter publishers who have been shamelessly promoting a Gold rally based on a “major decision that will impact Muslim’s ability to own gold” that takes place January 1.

While this may sell a lot of newsletter subscriptions, our view is a bit more methodical. First is that long-term gold ownership is simply a rational buy-sell investment over the longer term that doesn’t seem to violate the Sharia ban on Interest. So any changes are hardly new/earth-shaking/or ground-changing.

Thirdly, IF THERE WERE a huge rally in gold around the corner, the market would have already begun to price in such an advance.

Since we were under the $1,130 handle when I looked earlier, it seems to me that the odds of a massive gold rally, while not totally impossible, are (how should we say this?) mighty damn low.

A few facts of interest, since I have been invited to appear on Coast-to-Coast AM with George Noory on Boxing Day:

First is that when we look at precious metals, we need to make a full-stop at the end of that sentence and ask “So what is it that make Gold precious?”

From my notes to the Other George:

“We know from Colloidal silver research – how silver kills certain pathogens, not to mention keeping milk fresh – so would qualify it as “precious” particularly in ancient times when disease didn’t have antibiotics or targeted anti-parasitics and such. Oh, and no refrigeration.

“Precious” Gold is more difficult. Yes, it is malleable, durable, divisible, and all those coinage-related terms, but when we look at what ancient practical applications might have been, how does gold really stack up?

Silver and copper both are electrically more conductive so ancient wiring is out.

Gold’s melting point is (1,948°F) is almost 200 degrees higher than silver (1,763°F) so we can take ease of melting off the table. Copper’s melting point is 1,984°F so about 40-degrees hotter than gold to work. Copper can be worked to be harder (alloying) than gold so why the fascination? Other than the rarium and unobtainium.

Except for the high Gold recycling rate, silver in many ways is superior to gold except that silver does tarnish, although the oxidate is still conductive.”

From here we can launch into the annual production and consumption figures, but you see my point?

When there is a major metals move on the horizon much will likely be foretold from a comparative study of the pricing of Gold-to-Silver. That ratio, based on the chart numbers this morning, is about 72:1.

According to GoldDealer.com:

“In 1792, the gold/silver price ratio was fixed by law in the United States at 15:1, which meant that one troy ounce of gold was worth 15 troy ounces of silver; a ratio of 15.5:1 was enacted in France in 1803.”

Believe me, I am not an investment genius: I just happen to be your typical, curious, MBA-packing wanker with a calculator.

If we applied the old historical ratio, we could make a case for Gold to drop to as low as $243.82. OR applying the price ratio against Gold, we could see silver shoot up to $72.903 per ounce.

Neither, of course, will happen. Most likely is the scenario where silver (due to industrial demand) continues to hold slightly better relative strength than gold. But overall, a handle under $1,000 certainly seems more likely than $2,000 in the foreseeable future.

(To us, with no warranties and this is not trading advice, yada, yada…You plays your money and takes YOUR chances…).

This gets us on to the next point: Where will the market head today?

I continue to believe that we should see some unloading of stocks for year-end tax-selling, but it may not be a playable event.

Trump’s Last Lap

The decision of the Electoral College means that the (weak/lame) attempt to scuttle the Trumpedency has failed hugely. And, as a result, the MainStreamMedia should begin an obvious change of course to begin great sucking noises toward his incoming administration. The MSM has much to apologize for and little time to do it.

We notice the lack of favored democratic issues in this morning’s NY Times front page, left column. Instead, they seem to have buried the hatchet, except to say that the Trump Treasury pick moves in “Secretive Hedge Fund Circles.”

It’s here a good sense of linguistics pays off. While a NY journo may think of such “circles” as secretive, I would propose that if you had personal wealth in the half-billion and up range, they would hardly be “secretive.” Rather, you’d quickly find yourself “in the club.” It may seem like a secretive thing, but it strikes me more likely that it’s a cash balance circle.

This is not to suggest that the NY Times and the other “big national media” have totally reformed; I notice the NY Times is fishing for news tips on page 1.

BTW: If you send them anything horribly scandalous, please use our news tip link above.

Murder and Germany’s Collapsing Immigration Mess

While Donald Trump was busy on the US campaign trail earlier this year, with talk of closing the border with Mexico except for legit checkpoints, we warned you that Europe was insane in allowing the huge influx of (largely unvetted) refugees from the Middle East.

To be sure, there were sound economic reasons to open the floodgates, just as there were/are here: Cheap labor, a kind of push-button economic stimulus, and all that, sure.

But we warned of the social costs – those bills which would come later and would make Liberals rue the day they stopped having borders.

We, the costs are now going up. This as an attack by a 23-year old Pakistani refugee who went on a truck-killing spread in Berlin has resulted in 12 dead and many more injured.

It was certainly not popular when we were talking about the “cause and effect” nature of open borders, but this will likely only be a pit stop on the highway to the disintegration of Europe, led by the bureaucratic Brussels sprouts who should learn to read data and consider alternative futures, rather than engage in masturbatory policies.

We look at the massive refugee camp, once Templehof airport, and wonder if that might not be what all those FEMA camps were for here in the USA? Will they remain unused due to the change of national direction due under Trump? All in the fullness of time, I suppose.

The “Archduke” of Turkey?

We are blessed with some really smart readers and one of them wonders if the assassination of the Russian Ambassador to Turkey might be similar to the assassination of Archduke Ferdinand that set off World War I?

There is a very good, though short, Wikipedia description of what happened that June day in 1914:

“On Sunday, 28 June 1914, at about 10:45 am, Franz Ferdinand and his wife were killed in Sarajevo, the capital of the Austro-Hungarian province of Bosnia and Herzegovina, by Gavrilo Princip, 19 at the time, a member of Young Bosnia and one of a group of assassins organized and armed by the Black Hand.[4] The event led to a chain of events that eventually triggered World War I.

Earlier in the day, the couple had been attacked by Nedeljko ?abrinovi?, who had thrown a grenade at their car. However, the bomb detonated behind them, hurting the occupants in the following car. On arriving at the Governor’s residence, Franz angrily shouted, “So this is how you welcome your guests — with bombs?!”[32]

After a short rest at the Governor’s residence, the royal couple insisted on seeing all those who had been injured by the bomb at the local hospital. However, no one told the drivers that the itinerary had been changed. When the error was discovered, the drivers had to turn around. As the cars backed down the street and onto a side street, the line of cars stalled. At this same time, Princip was sitting at a cafe across the street. He instantly seized his opportunity and walked across the street and shot the royal couple…”

By the way, we encourage you to pop $20 from your gifting in Wikipedia’s direction –[ they perform a marvelous service as a place to go fishing for context. Not perfect, but check the mirror…

With their description, the reports that the assassin in Turkey (reportedly a police officer) leaned over the body and said “This is for the people of Aleppo” could be seen as rhyming, somewhat.

What’s going on?

Looking at a map offers some clues: This is likely yet-another result of the US State Department neocon effort to destabilize and press Ukraine into the European Union. Ukraine is directly north of Turkey (*across the Black Sea) while Syria is directly south.

Already, the Russia media (Pravda) reports here that Ukraine is praising the assassin:

Unaffiliated deputy of the Verkhovna Rada of Ukraine Vladimir Parasyuk believes that the killer of Russian Ambassador Andrei Karlov in Ankara committed a heroic act.”When a person is ready to sacrifice his life, go to extremes for an idea, for truth, then one can say with confidence that this person is a HERO!” Parasyuk wrote on Facebook, posting the photo of the armed gunman, who killed the Russian ambassador by shooting him in the back. “

Whether these is direct linkage between the assassination and the terrorism events in Berlin or a second Russian diplomat’s death in Moscow, is difficult to tell.

Likely, Russia will respond forcefully once the trigger for the killing has been more thoroughly assessed.

We have our suspicions; could this be the death throes of the neocons?

Global Warming

Sorry, I know full well its climate change for those who are easily programmed by the globalist’s governments.

Still, we need to report that it has snowed in the Sahara Desert for the first time in 37-years.

However yes, climate has been changing for millions of years, so if someone wants to open your wallet “for climate change” smile, nod, and tell ‘em to piss off.

China’s Peace Offering?

China returns unmanned underwater drone to Navy, Pentagon says.

(Available at Toys-R-Us stores next Christmas?)

Only in ‘Merika

And last, if you had any question in your mind as to whether we have lost our fricking minds as a Nation:

Pagan priest granted right to wear horns in Maine driver’s license photo.

Thanks to Maine, we can skip the humbug and get right to the “Bah….bah…..bah….”

18 thoughts on “Wrapping Up the Financial Year”

  1. George, your comments regarding Gold only underscores why I’ve avoided AU and bought Silver instead, particularly your words “industrial demand”. So much silver is siphoned from the market due to heavy use in electronics and other industries that there’s only a fraction left available for investors… even penny-ante guys like myself, where the concept of more-bang-for-your-buck always prevails!

    • I always thought investing in a farmer would be the best thing to do.. get a few people together invest in a farmers needs for a lower percentage than he can get from the local bank when he borrows to buy seeds operating expenses etc. In the event of a real catastrophic economic disaster you would have someone that produces food for a living.
      during the depression in germany the wealthy would take baskets of gold and silver to exchange for food.. burn money for heat because it was cheaper than buying wood etc. although I doubt this will happen again.. just print a few more dollars

  2. MSM needs to cough up the truth and nothing but the truth, if they want to get the MILLIONS of BS detectors back.

  3. Gold’s pricing what it is I am more concerned about what the strong dollar will do to reek havoc.
    However, back to the electors- I am gobsmacked in awe that Bill Clinton was allowed to be an elector for NY and HOW IS THAT NOT A CONFLICT OF INTEREST???
    vice grips please
    Would have had to vote for Trump if NY went red instead of green? Hello——
    who wrote the rules on this?
    A husband can be an elector if his wife is running or vie versa-
    I am still slapping my forehead on this.

  4. Why is Russia, China, and George Soros into GOLD.?? Or for that matter why did the US steal the deposed African dictator’s gold, Same Ukraine.. There is , also, a lot of manipulation with The metals on the Crimex market….Our paper is fancy Monopoly money…I think you may be right in PM’s going down in the short term. However to rescue the system, there has to be some sort of backing to create a sound money system, or a system of value backing the paper.. I am wondering how the Donald will use bankruptcy to cleanse the system? Ain’t gonna be a cake walk.

  5. Just ask some of the Venezuelans who had savings in bank accounts whether they would have preferred holding their savings in gold or Bolivars. Of course, in spite of having printed maybe a hundred $trillion in the last 8 years, that will never happen in the USA.

    Or maybe those who had bank accounts in Cypress, or investments in Icelandic banks. Or those holding the $17 trillion in sovereign debt that now bears negative interest. Or. Those with capital in Greek or Italian banks or stock markets.

    All it would take is for the Chinese to say that they no longer accept dollars, only Yuan for manufactured products, or the Russians and Iranians to say they no longer will accept dollars for oil or natural gas and the USA would be there in less than 30 days. The only reason they don’t do this today is that every month they grow financially stronger, and every month the USA prints $150 billion
    to cover its debt and trade balance.

    And the Chinese? Every time the Yuan is devalued by x%, the value in Yuan of gold held by investors in China goes up x%. And keep in mind that every $100 worth of Yuan will buy at least twice as many shirts or pairs of pants and probably even food as that $100 will get you in the USA. Once all the financial “products” are removed from the USA GDP, China’s real GDP Is much larger than the USA, and the country literally has no external debt, massively so if calculated on a net basis.

    Those who predicted the dotcom bubble, the housing bubble, the Trump win, etc, are predicting a 70% devaluation of the dollar inside the USA. That’s not a problem as long as you don’t need any imported goods.

    And I recently saw a reader comment from someone who has family in Venezuela. The Venezuelan farmers, desperate for hard cash to buy what they need to produce, are now selling 9 months worth of food for one ounce silver, and for one ounce of gold one can acquire a modest country house.

  6. Always late to the party! Drat! (kicking myself) Silver is more rare then gold too because of scarce amount left to mine.You can find gold on just about every Continent, all over the U.S. There are only 2 silver mines in use (if memory serves right) because silver is so hard to mine and deadly from the depth of mining.

    Silver among the other metals shines as an antimicrobial along with copper brass,nickle,zinc,tin. Virus,bacteria,germs cant live on the surface of these metals. I fondly call them “bug zappers! Shelf life for a virus is 2 hours tops (if memory serves right) on top of one of these metals. Where as the virus and germs can hang around a week or even months at a time when unchecked.

    The surface metal gives off an invisible odor that suffocates the virus’s and bacteria they cant survive that includes the vampire viruses like Ebola and Legionaries disease.

    Our fore fathers were pretty smart to have all those brass and copper door knobs not to mention brass and silver cutlery, tableware,utensils.

    Oh the next Ebola scare, remember that vampire viruses cant live in direct light. Also a couple of Doctors in San Antonio built a roll about bug killer using blue light. Completely harmless to humans and zaps every bug in a room less then 10 minutes.

    Pretty cool huh?

    • Yep that’s a big 10-4 what you’re talking about their back when they had the wagons going west toward the California Gold they kept a silver dollar in that big 57 gallon barrel of water and I have a Berkey water filter and I have some silver in there also so it’s like you said it works before it even goes through the filter it does something to the water so there you go

  7. If you were a being whose immortality and the continued existence of your planet’s atmosphere was totally dependant on gold, you would consider gold very precious. So do the banks, who collect gold on behalf of such beings.
    Ea-rth is an unusual planet, in that its gold is near the surface, due to massive collisions in the distant past.

  8. hi George do you have a capability with this blog to extend the writer post beyond the supposed 6 post

    • There is no software defined limit on how many posts a person may contribute. However, I impose that. My sense is that people don’t want to read more than a good pithy comment or three from others…and so additional beyond 3 posts per person per day isn’t happening.

      And for those wondering, yes, I personally review every post for relevance to topic and so on…

      When you make a post, plan on a couple of hours before approval as I don’t sit at the computer 100% of my day.

      It just seems like it…

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