July 28, 2010
http://inflation.us/capitulation.html
Gold and Silver Capitulation is Near

On Tuesday, the price of gold fell $25.10 to $1,158 per ounce while the price of silver declined by $0.57 to $17.63 per ounce. Based on the emails and phone calls we have received in recent days, NIA believes we are approaching a capitulation point in gold and silver prices. The sentiment on gold and silver has abruptly changed to the negative like nothing we have ever seen before and to us this means the big move to the upside is right around the corner.

If you do a Google search for, "There is no inflation", it will bring up a shocking 385,000 web results and almost all of the articles are related to the U.S. economy. Investors around to globe are pointing to the consumer price index (CPI), which shows prices only up 1.05% from one year ago, and saying that inflation in the U.S. is not a problem. The most popular forecast by Wall Street analysts today is that the U.S. is headed for a long period of deflation, similar to Japan's "Lost Decade". NIA is currently in the process of dissecting exactly what took place during Japan's "Lost Decade". We are producing a short movie comparing Japan's economy to the U.S. economy and it will be released in the coming weeks.

NIA considers gold to be the best gauge of inflation, not the CPI. Most experts on Wall Street chalk up gold's rise from $255.95 to $1,158 this decade to rising fears and uncertainties and increasing jewelry demand from India, while maintaining that there is no inflation because the CPI says so. They fail to realize that the government has an agenda to minimize CPI increases in order to keep Social Security payment increases as low as possible. In the future, if the government decides to bailout their banker friends from hyperinflation by adjusting mortgage contracts to the rate of inflation, NIA predicts they will adjust mortgage principles based on the price of gold and not the CPI.

This past weekend, the New York Times wrote a front page article about how hedge fund manager Anthony Ward, through his private investment fund Armajaro, has purchased enough cocoa to make five billion chocolate bars. Ward took delivery of 240,100 tonnes of cocoa, the biggest delivery in 14 years and about 7% of the world's annual production of cocoa. Some are calling this an attempt to corner the cocoa market, similar to how the Hunt brothers tried to corner the silver market decades ago. Many people believe Ward is trying to create an artificial cocoa shortage in an attempt to artificially manipulate cocoa prices to the upside for his personal benefit and to the detriment of chocolate lovers everywhere.

NIA considers it to be outrageous for so much attention to be paid to Ward and his long position in cocoa, when the mainstream media continues to ignore JP Morgan and their concentrated short position in silver. Ward's long position of 7% of the world's annual cocoa production pales in comparison to JP Morgan's short position of 20% of the world's annual silver production. Ward purchased this cocoa using his firm's own funds. JP Morgan sold silver that it neither owned or legitimately borrowed.

Almost nobody realizes that when the Hunt brothers tried to corner the silver market, they intended to profit not from their silver position itself, but from the actual production of silver from a mine they were getting ready to open. If their plan succeeded, the Hunt brothers would have likely become the richest family in the history of America. NIA knows what mine the Hunt brothers were secretly getting ready to open. Believe it or not, the infrastructure that the Hunt brothers put into place is still just sitting there today untouched. We have uncovered a once in a lifetime opportunity to potentially profit from the efforts of the Hunt brothers. Stay tuned to our future alerts.

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