Naked Emperors

August 29, 2005 at 6:22 pm Leave a comment

Bill Murphy of LeMetropoleCafe.com, a gold investors’ site, quoted today on Kitco.com, comes right out and says there’s a “cabal” of PTB types concertedly keeping gold and silver prices down (link in post title):

What we saw today in the US financial markets, along with the accompanying news, strongly suggests the “S” is quietly hitting the fan. The Orwellians, The Gold Cartel, the Washingtonpower structure, and the bigwigs on Planet Wall Street are petrified by what they see on the horizon in the VERY near future. Surely, this is one of the reasons the Fed will be meeting with the largest 14 credit derivatives players on September 15…

What does all this mean?

The powers mentioned above are scared to death to let gold rise above their defense point because they fear it could set off derivatives neutron bombs in both the gold and credit markets. At the same time, the trade shorts are very nervous to remain that way for much longer. The gold fundamentals become more positive by the day. The bad guys are having trouble coming up with enough physical gold to meet demand and it is having an impact on how they operate.

No sense repeating what MIDAS has presented all week. Gold remains in explosive mode. What the cabal is doing can be compared to a kid trying to keep a rubber ball under water. It won’t work for any length of time. There is too much pressure for the price to rise, and to do so substantially…

Silver makes no sense. It probably is as good a value buy here, especially as to what other commodity related prices are doing, than at any time in history. My guess is that this is an engineered false breakdown that will not last long at all. Once silver takes out $6.85, it will streak for $8.

As a good reader here mentioned recently in a comment, silver in particular is very underpriced right now, and even more so in the past week or two. For this reason, it has a much greater upside potential – and it’s also wonderfully affordable. Check out this mind-blower: The Coming Silver Accident by Theodore Butler . Butler contends that “Silver has the largest short position that’s ever existed in anything.” He goes on to say:

While there is no way to determine when the silver shorts will spook and rush to cover, time is not on the shorts’ side. They must try, at some point, to buy back and cover the silver they can’t possibly deliver. It is not important to know in advance what the actual trigger for the silver accident will be. All you need know is that with the critical and long-term physical deficit in silver, the short selling charade must end. Since we can’t determine when, don’t focus on the timing, focus on the inevitability of a delivery crunch.

Hmm. I smell an Outlaw opportunity. Buy some fancy gold and silver threads at bargain prices now, realizing that all those emperors know they’re butt naked, and have got to admit it real soon or they’ll freeze to death. Then laugh all the way to the gulch.

Yes, I realize this could be a trap, what with the faint hints of confiscation talk going around recently. But even so, I think I’d rather be left holding (and, hopefully, safely caching) the shiny stuff than some linen-cotton scrip.

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Priorities, people! If Bill Clinton can do it, why can’t we?

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