"Gold Wealth. How's Your Accounting?"
June 29, 2010
1. On my website, I have the key headlines piped in from some of the most important information sources. I urge all subscribers to study those headlines daily. Jim Rogers is there this morning saying “I’m short a large Western financial institution that everybody thinks is terrific”. You know my statement made years ago that all the banks are bankrupt, but the mark to model accounting is hiding that fact, as the banksters work with the Gman to hand the trillions of failed OTC derivatives bets to the taxpayers to baghold. The risk of bank and stk mkt closures isn’t gone. It’s growing. I think the odds are high that not just one closure, but waves of closures are coming. The banks/mkts close, then re-open. Then the banksters price more trillions of OTCDs at mkt, and the system is closed down again, and again, and again. Each time the Gman prints up a new round of toilet paper money, following the instructions of the banksters. Elmer Fudd’s buying power is being vacuumed up by the gold punisher, operated by the bankster vampires. Those who bashed gold have no idea what they have unleashed. Don’t wish for something too hard, or you just might get it. Elmer Fudd wanted a literal mountain of paper money. And that is exactly what the banksters are going to give him. Too bad his mountain soon won’t buy anything except another Gman’s mountain of equally worthless toilet paper.
2. I also have Eric King piped into my site, and he’s quoting the world’s central bank, BIS, talking about “Zombie Banks”. The crisis has just started, while Elmer Fudd public investor clutches his “it’s over, we saved you by wrecking all the world’s paper money and marking the damage to model” green shoot weeds thrown in his face by the banksters.
3. “If paper money goes to zero, should we buy gold then?” -Elmer Fudd Public Investor & Joe Golf Ball Advisor working on their financial master plan together.
4. Elmer Fudd and his failed advisors have spent their whole investment careers calling gold & silver non-money, while on their knees praying to the Gman and the banksters. The last thing on the minds of either of those monsters is the welfare of Elmer Fudd and his advisors. What is happening now is almost a rapture. It’s a “payback time” beyond Elmer Fudd’s comprehension, with unimaginable consequences, and ends with him standing in a bread line. Don’t curse gold because of its price in paper money, or you will pay, and perhaps with your entire financial life. If you can’t step up to the ounces accounting plate, you may burn. “Heads I make $100 an ounce in paper money naked shorting gold. Tails I hit the breadline”. – Overleveraged gold hamburger flipper. The risk to reward ratio on that deal seems “slightly off”, to put it mildly. No?
5. Picture the stock market in 2001. Today is 2010. Picture the stock market in 2007. That’s where paper money is now, like the stk mkt in 2007. It’s going to get hammered. Fudd’s price-chased stock market pipedreams are 100% broken. It will be the same with his paper money fantasy, he will be broken like a matchstick, only the situation is vastly bigger, with his paper money. It’s all he has, all he is, soon all to be vacuumed away, by the gold punisher.
6. I have never agreed that gold responds to the US dollar in the biggest picture. In the biggest picture, the US dollar takes its orders from GOLD. The Gman continues to follow the banksters’ orders and ruin the reserve currency of the world. We stand on the cusp of a mass impoverishment of most of the world’s citizens, via the great gold revaluation, which may be followed by all-out money printing and semi or full hyperinflation that explodes like a fireball into global depression and war. The last time the banksters felt this kind of rush, was when they stood on their balconies in front of the New York Stock Exchange after crashing the NYSE in 1929, and watched Elmer Fudd cheer as the banksters bought Fudd’s stocks at 5 and 10 cents on the dollar. The banksters told him they were saving the market, saving Fudd, and Fudd believed them. After taking his stocks and handing him 10 cents on the dollar, they confiscated his gold, then devalued what was left of his paper money. Finally they sent him to the bread line. A new crew of Elmer Fudd’s was recruited for the next boom. The great depression was about the greatest wealth transfer in history, from Elmer Fudd to the banksters. History will repeat itself, and the only thing different this time is the size of the transfer. It’s bigger. Way, way bigger.
7. Never forget the big picture when you are trading gold. Trading is the fun part. Remember, the banksters are coming for all you have. A $100 fall in the gold price, well, you need to be bigger than that. You need to get stronger. No trader should be destroyed by a $100 fall in the gold price. It must be bought, without failure, all the way down.
8. The gold community fell asleep at the gold wheel last week. I went crazy on Saturday, as you know, screaming, “wake up, the banksters are coming!” By Monday, the GC woke up. Trader Dan Norcini stated categorically yesterday that he believes the banksters are working to paint a double top on the gold chart, placing orders that exceed the current bid and ask by tenfold. The banksters don’t want the gold price lower. They want it higher. The reason they tank the price is to take your gold. They set up gold to fall. They don’t make it fall. The funds and retail investors make it fall. Price falls via liquidation, not buying. When price falls, the banksters are not selling. They are buying. You are selling to them when you bail on weakness. Stop doing that or you will be standing at gold $2000 with nothing. I’ve told you all many many times that the banksters operate at a level way beyond any chartist. They make the charts you read and do it deliberately! They are only 5 billion steps ahead of you, and your only weapon is to buy the weakness when they create it, not to stand around guessing when they might create it. Or worse, turning yourself into a puppet they dangle around saying, “Look everybody! It’s a double top! Sell everything if it breaks!” It breaks. You sell. They buy. End of story. End of YOUR story.
9. Your trading should be about building ounces of profit. Not paper money profits. If we hyperinflate, how much will your paper money profits mean? What if we hyperinflate while you “went to cash, my charts showed gold could have an extended correction”, but then the G20 held an emergency meeting after the banks closed the day you went to cash, and they revalued gold 70% and froze your paper money trading account? How would you feel then?
10. Keep your paper money trading in perspective or be destroyed by the banksters. The trade ends when you add more ounces, not when you add more paper money. Don’t forget that. The banksters’ attack on paper money….has barely started. Do you want wealth or toilet paper? The choice is yours.
11. Some business owners from outside the gold community have said to me, “If only I bought physical gold 10 years ago I would have made so much money!” My reply is always, “No, you would not have made any money. None. If instead of buying a million dollars of the stock market with your silly “wealthbuilder” portfolio that was just a plop into the stk mkt, you had done it properly and started with an investment portfolio foundation, not the gambling part first, meaning you bought the least risky item first for your foundation, which is GOLD, you would have bought maybe 300 ounces of gold. Today, 10 years later, you would have how many ounces? Yes, still 300. You didn’t make any ounces, you didn’t make any wealth. Sorry. What did happen is that a billion price-chasing wienerheads all around you lost a mountain of paper money, but you built yourself no wealth. Unless you added ounces, you failed to increase your wealth.
12. Are you in a drastically better position than the wienerheads? Obviously, yes you are. Your buying power increased. Is winning by default winning? I think the answer is yes, but it is not the answer you should focus on. Focus on building ounces. Sorry, but claiming you are richer with no more ounces, while all you did was outperform the Elmer Fudd clown show is not professional wealthbuilding. That’s like a professional hockey player playing a hockey game against some kiddies and winning 3 to 1. Is that a victory? No. It’s time to step up to the wealthbuilder plate and start building ounces. You don’t want your claim to fame to be that you outperformed team breadline. That’s not what I call victory, and it has a certain negativity attached to it. Building a business involves positive energy. Building ounces should be approached the same way. Do it with the same level of patience and commitment and never ridicule gold, because the consequences of such ridicule tend to be fatal.
13. Wealthbuilding tactics, ounce-building tactics: If price of the ounces falls….go get them and add to your wealth! One of you, who has both a Harvard MBA and a medical doctorate degree, understands what I’m talking about, far better than most. When you buy gold as it declines in paper money, that is the kachingo, that is the booked profit! That action is the add to your wealth!
14. The jobs report week is underway! We touched 1233 last night. This Friday the jobs numbers are released. Typically gold starts trading wildly at the start of the month, AND going into and out of the jobs report. Yesterday I sold into 1260. Now I’m back on the buy into 1250, 1243, 1235. I’m buying every $7 down in ONE buy program and selling every $21 higher. In another one, I’m buying every $2 down, selling every $6 higher.
15. On average, gold tends to be volatile with a downside price direction going into the jobs report, and volatile with an upside price direction coming out of it. So obviously you want to be a buyer of all weakness this week, and a seller of strength into next week, IF it happens. Nothing is 100%, and sometimes mkts do the opposite of what a cycle, season, or chart pattern indicates. The question is can you respond to the market professionally when that happens. The biggest question is can you do that, respond to price professionally, when your absolute best view of what the market will do is blown to smithereens. All you are left with is the ability to buy gold weakness and sell strength consistently.
16. I’ve talked about the tactical role of shorting the major item in play against your larger long position as potentially a risk-free trade. If you own 1000 ounces of gold at a cost of $1100, with a short position of 300 ounces put on also at $1100, is that the same as buying 700 ounces long at $1100?
17. It’s similar, but the person with the short position can have a huge mental edge. Here’s a look at the wheat chart. Wheat Asset Accumulation Chart I call this the wheat asset accumulation chart for a reason. I have zero interest in what the hamburger flipper futures brokers are doing in wheat for a trade. I’m interested in wheat as an asset. While there’s a huge downwedging action on the long term chart, which may or may not be significant, in the shorter term, wheat looks horrible.
18. I don’t care how low wheat goes as an asset in paper money; I want more as it falls. But it’s fine to say that when there are “lowest crop since 1971” news headlines floating around while wheat jumps up everyday. What about when it is falling every day, like the sun will never shine again? I know what I should do strategically, but what I don’t know is how I’ll respond mentally/emotionally, as it all actually takes place, so I need to manage that risk. To be prepared for my own inabilities. So I short small amounts of wheat into strength against my larger core position. On days like yesterday and today, I’m ringing the cash register, rather than feeling helpless, thinking, “what if the lows fail?”
19. It is the same for gold. Some subs use DGZ-nyse. It’s not a big trader, but it works for modest players. DGZ is a short gold ETF. You don’t want to get crazy, turning your analysis of the gold market into a reason to buy more DGZ than physical gold. That’s the action of a nutjob. You can do the same thing with your gold stocks. Rather than letting the current roster of maniacally leveraged top-callers scare you into handing the banksters your gold on weakness, you could be booking profit today on a modest short position, if you had bought DGZ as gold soared into 1260. Again, it should be of a size that helps you mentally and emotionally deal with price weakness, not some huge plop that is your master timing call for a gold top.
20. With gold futures or forex, those markets are generally more liquid. There’s also GLD-nyse. It’s the worst ETF in the world, probably a bankster scam, but it has tremendous liquidity. If you use it for your shorting component, you could get free money, as it could eventually collapse if it is revealed a fraud! Meantime, you use it to book paper money profits against your long physical position, which you then use to add ounces of real wealth! My message to the GLD-nyse managers: Ha ha ha! Here’s the chart. World's Worst ETF. Use it for shorting gold. Just like the banksters do!
21. Everybody into the short GLD-nyse pool on price strength! But keep the trades small. You should never exceed 30% of your long position, and that would be after a huge move up, not a $30 micro upmove. Don’t fall into this trap: “it’s all over for gold, buy paper money now! The chart the banksters painted for me says it’s all over!”
22. As I get ready to send this off, I can see that that gold has moved down in price against paper money. We’re into the $1230 party zone. Every single trader in the gold community should be joining the banksters today in adding to your wealth, adding to your ounces. That’s what the banksters are doing, right here, right now. Buying gold like there is no tomorrow, there is only today! The banksters are in the market, every day! What are you doing in terms of market action….today?!
June 29, 2010
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