Mar 25, 2010

1.Welcome to Gold boot camp. The current action in the gold market is the most emotional I’ve seen since the movement around the $300-350 area threatened to abort and send price back into an ongoing bear mkt. At that time, $5 moves put fear into the best gold traders in the world, and “sell the rallies” became their mantra as fear ruled all, even the best. Sell the rallies, as in: Sell because price is going to TANK. Buying when everyone else is laughing at you, and staying “bought”, takes tremendous mental strength.

2.Yesterday qualifies as a selling climax of enormous size, and yet the movement of the gold price was very small. The mental and emotional pressure on gold investors, given the small actual movement in price, qualifies yesterday as one of the strangest selling climaxes I’ve seen.

3.The treasury bond market yesterday gave another hint that Mrs. Grizzly Bear stands ready to rip that market to pieces. Try to imagine a bankster media campaign unleashed on the US dollar and the US govt bond like you’ve just witnessed on the Euro. Only instead of the Greek tiddly wink, the “Dollar To Zero” panic card pushed in your face is: California and New York, and 20 more US states. Try hard, because it is coming. When the British Govt and the US Govt bond and currencies get the “Dollar to Zero” treatment, the options open to major institutions are: Swiss Franc, Canadian Dollar, and Aussie Dollar. And GOLD. It’s actually possible that the Canadian and Aussie currencies tank against gold too, because a crisis of confidence in the US currency has major ramifications for the US economy, and Canada is the largest US trading partner. There are no “replacement bets” for gold. The other currencies are GAMBLES on the Gmen of those nations. After gold, the Yuan may be the next best bet.

4.A worldwide paperbug currency crisis is coming, and GOLD is going to be the main currency beneficiary, in terms of price action. While the world’s public hides in cash, which is exactly where the banksters want them, the banksters are watching their Euro to Zero panic play unfold to perfection as a dry run of what they have planned for England and US currency and bond markets.

5.Bringing the IMF into the game at this early stage in Europe is a brilliant move, as it is the IMF itself that will be a key player in the formation of a world central bank. When the average citizen in Europe realizes that the broken Euro is not producing any bottom line wealth thru exports, just a lower standard of living that threatens their bond markets with implosion, and hyperinflation, he’s going to start demanding action to fix the Euro. The problem is that his little epiphany will come just as the UK and US currencies suffer even BIGGER issues of confidence, threatening REAL hyperinflation as a worldwide possibility.

6.While goldland is reducing their gold exposure on weakness in a mass bail and fail show, I’m accelerating my gold pyramid generator buy programs.

7.Every day, the case for gold grows stronger, not weaker. And every day, the banksters are working maniacally to take people out of assets and into….CASH. A terror day like Wednesday March 24 is exactly what the doctor ordered to produce a solid “whittling down” of the gold and fund community exposure to gold. Write yesterday down in your diary of fear days, and make note of your emotional state. And market actions.

8.I tend to be onside with our own Mr. Macro’s view that a 2008-style crash to new lows is possible, but highly unlikely. My view is such an event would cause Americas to turn on their govt violently, whereas the banksters want their anger directed at an external enemy, perhaps Iran, an action that involves more spending of money, not less. I urge you to look at the “Dow as a currency” video I posted on the website yesterday. I see more of a huge upchannel than any “grand top”, and I do not see massive institutional liquidation as likely, although anything in any market is possible. The market has been carried from about Dow 9000 by institutional buying, taking the handoff from the banksters and insiders who carried it from Dow 6500 to that point. I doubt they are going to want to give up that positioning, and would only add to their positions should the market begin a retracement.

9.I’ve been shorting the Dow into the current strength, but this is a very VERY small play, looking for a Dow correction, not a wipeout, and my focus is buying the Chinese stock market into any weakness that does transpire while booking profit on Dow shorts. I believe the gold community has gotten a twisted picture of reality over the past few days, and I’ve felt that twisted reality too. The difference is: I haven’t acted on it with market action following what I FEEL. I’ve placed money AGAINST those feelings with tremendous moderation being the rule of action.

10.The GDXJ is performing exceptionally well, and our own subscriber King Kong is arguably the world’s largest individual owner of GDXJ shares, and certainly one of them. He believes the price could hit $200 a share, even by 2011. As a group, Graceland subscribers are probably the largest holders of gold junior stocks in the world. Ironically, gold juniors are the one item I refused to discuss until recently, and if any writer has taken the route of almost taunting his own subscribers, it is certainly me. As gold broke out over 1033 from the massive head and shoulders bull continuation pattern in 2009, I issued my “call to arms” call for gold juniors. You will now see me accelerate my focus on juniors, and I’m working hard on a new newsletter and website, Graceland Juniors, that will facilitate that focus. It will feature some of the trading action of the best gold junior stock trader in the gold community, our own Gold Lion of Lebanon, who is in what I term maniacal gold buy mode into the current price weakness, in both gold and energy juniors, with energy stocks carrying less risk because of the higher number of producing companies, which provides a floor against the company going off the board, but not against extreme price volatility. Keep that in mind.

11.The journey to Gold $1500, and likely to $2000 and beyond, requires “Gold Marines”. Not Gold “Abandon Shippers”. Each hit on gold that you force yourself to buy rather than sell, produces an additional level of mental fortitude that is going to be required fortitude, to handle the coming astronomical increase in gold’s volatility that will dwarf the rising price that is set to go parabolic, and I believe volatility will be the Gold Theme of 2011, and perhaps the 2nd half of 2010. King Kong’s phenomenal ability to blow the ball out of the park in a nuclear-powered golden home run will be revealed to all, just as the worst investors in the world are maniacally engaged in one of the largest mass gold selling frenzies in market history!

12.Sorry to say, but the deflationists are going to be destroyed by the banksters, and many advisors are going to roast their clients as they fall into the trap of buying the US dollar as the T-bond falls modestly, confusing tanking confidence in the ability of the US govt to meet its obligations, with the 1970s sell off due to inflationary expectations.

13.The US dollar will become a buy down the road, but it’s just a range trade here, not a fundamentally new bull mkt, or so I believe. Gold remains the only solution to the crisis, and the US bond market bear will not be halted by rising rates. Rising rates will be the thermometer of the sickness of the bond market patient, not the cure this time. It will be halted by the new Gold Standard, or it may not be halted at all.

14.Attention all gold haters and gold ridiculers: You are the one being ridiculed now. By the gold community, gold itself, and by 2 billion Asians. You are an idiot investor, carrying a level of stupidity so high you actually believe the world’s lowest risk investment is the highest risk investment. You are a proven market loser and the great news is you get to experience your current pain caused by your total failure in the markets, for decades to come. The gold punisher is in action, the gold wrecking ball. The banksters will show zero mercy on your cowardly charge into cash and junk bonds, as your price chased pipedream of stock and real estate market profits forever, is now totally burned to the ground. Your financial LIFE is in the hands of the banksters, who own the most gold. If the banksters decide NOT to hand the Gman enough gold to back the dollar, you are finished. The whole financial system goes to zero and so do you.

15.Without gold, it’s all over. The banksters will, likely within a few months, create the same mindset in institutions about the American govt that they just created about Greece, and a selling frenzy of US dollars will take place that will dwarf all market events in all history, in terms of its ramifications worldwide. No institution will care about the Gman’s WORDS. They’ll sell everything he says, no matter what it is, as they are doing with the Euro now. I doubt that even then will the US Gman step up and admit his total failure to run the govt in a responsible manner, despite having the power of taxation and to engage in war, legalized murder, his two flagship tools to take what he wants. The world’s Gmen are total failures, except as robbers and murderers.

16.Liquidity Flows. Where will all the money go when the USdollar selling frenzy starts? Into the Euro? That’s a jump from the fry pan to the fire. The main recipient of the biggest liquidity flow in history is going to be the American stock market and likely the other major stock markets of the world as well. “As positive as I am on gold, I’m even MORE positive on the stock market in the bigger picture” –Mr. Macro, March 2010. Use any hard weakness to do what you should have done into Dow 6500: Buy. Remember that in Zimbabwe the stock market rose more than the rate of inflation as the currency went to 100% toilet paper status. It is likely to be the same in America. Remember too, there is about 8 TRILLION dollars in cash on institutional sidelines. They won’t invest in the market for “the recovery”.

17.They’ll invest to escape the Gman’s maniacal attack on the currency.

18.It won’t take much money flowing into gold to blast it higher, a thousand dollars higher, and probably multiple thousands of dollars higher. IF the institutions moved to gold instead of the stock market, then you are looking at gold at possibly hitting hundreds of thousands of dollars an ounce. There’s just too little gold and too much paper money. I don’t see that happening, unless Bin Laden’s gang is able to successfully attack US cities with nuclear weapons, which has a low probability, but not a zero one. If you want a picture of the gold market right now, it is a US dollar reservoir being hooked up to a thin geyser pipe by the banksters, one careful movement at a time. Joe Public is staring into the pipe while clutching his cash, junk bonds and a mortgage about to roll over on a house bought with a repossessed credit card. What comes out of that pipe is going to be a gold price LASER BLAST, one that will cut his financial head, clean off. Are You Prepared?

19.Yesterday I had to tweak my gold buy pgen and buy a little extra, due to what I term the MAXIMUM level of terror in the gold market. Again, the only other time I remember this much fear in the market while price was moving such a little bit, was back in the 330 area, and that was justifiable, as gold barely had started the new bull market, and gold investors were buying into total ridicule to the point of viciousness, and the banksters were running their late 1990s “throw your gold in the garbage and buy the stock market, gold is no longer a viable asset” media show at maximum volume, while they sold stock to the public and bought gold for themselves.

20.I’ll be covering ALL of the GDXJ stocks on the site starting at noon today, in video format and following that up over the week-end with coverage of the stocks in the McEwan Juniors index as well as providing some analysis of 5 juniors held by King Kong as a GDXJ “Flying Five”. The flying five I’m personally developing for the Graceland Juniors site involves market technicals and relative price valuation to the GDXJ and the Canadian BMO Juniors ZJG, not dividend yield, as the classical Dow flying five does. On that note…

Gotta Fly!

See you out there