To date, the price of gold and silver have followed a very similar
trading path that was taken by the metals in early 2016, with gold and
silver bottoming in mid-December and staging a strong rally through
mid-January. Technically, as our Shadow of Truth guest Craig “Turd
Ferguson” Hemke points out, all of the stars were aligned for a
take-down of the gold price using paper derivative gold.
These “stars” include: January contract trading expiration, February
options contact expiration, an “overbought” technical condition and the
upcoming FOMC meeting and employment report next week. ALL of these
variables are factors which are used to help the bullion bank gold
cartel take down the price of gold and silver using the paper gold
derivatives traded largely without enforcement of the regulations in
place in New York and London.
But now the market is set up for an upside surprise. Contrary to
recent “alternative facts” media reporting, India has continued
consuming a lot of gold on a daily basis. This includes legal kilo
imports, dore bar importation (subject to a lower import duty than kilo
bars) and smuggling, the latter of which is estimated to be as high as
300 tonnes per year now. The “authorities” in the media who track gold
into India fail to account for dore bar flow and smuggling.
In addition, a favorite false narrative of the World Gold Council,
Bloomberg and Reuters is that gold imports into China slowed down at the
end of the year because of import restrictions put on gold by the
Government. Nothing could be further from the truth. The “fake news”
reports are based on imports into Hong Kong, which are publicly reported
by Hong Kong authorities. But a few years ago China began to allow
gold imports through Beijing and Shanghai, which is not reported,
specifically to obscure the true amount of gold flowing into China.
But it’s easier to build a false narrative around easily observable
data rather than look for the greater truths intentionally hidden from
public purview. As it turns out, nearly 100 tonnes of gold were
delivered onto the Shanghai Gold Exchange on the last trading day before
China closes shop for the Chinese New Year celebration. Of course, if
any of that gold flowed through Beijing or Shanghai, it would go
unaccounted for by the entities listed above that only account for gold
going from Hong Kong into China.
We at the Shadow of Truth are forecasting a better year for the
metals in 2017 than in 2016. We invited Turd Ferguson on the show for
lively two-part discussion of the factors that will drive the metals
Dave Kranzler spent many years working in various Wall Street jobs. After business school, he traded junk bonds for a large bank. He has an MBA from the University of Chicago, with a concentration in accounting and finance, and graduated Oberlin College with majors in Economics and English. Dave has nearly thirty years of experience in studying, researching, analyzing and investing in the financial markets. Currently he co-manages a precious metals and mining stock investment fund in Denver and publishes the Mining Stock and Short Seller Journals. Contact Dave at firstname.lastname@example.org.
Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700 articles and produced more than 200 videos about the precious metals market, economic and monetary policies as well as geopolitical events since 1987. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory has contributed daily to SGTReport since 2012. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Visit The Daily Coin website and The Daily Coin YouTube channels to enjoy original and some of the best economic, precious metals, geopolitical and preparedness news from around the world.
The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
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