JWU JUL 13

 

      Jul 13, 2013

 

1.     Diary of a Gman: As you know, the Indian central bank and the Indian government have banned all gold coin and bar sales to anyone other than the Gman and the banksters.

2.    The citizens are viewed as putrid garbage, by the Indian Gman and the Indian banksters.  What about the gold dealers and jewellers?  Well, they’re in very rough shape, and it’s getting rougher on a daily basis. They’ve been cut off from all financing. 

3.    Jewellery stocks on the Bombay stock exchange now look like your junior mining stocks. Blown to smithereens.  Let’s take a moment, and welcome these new prisoners of the great bankster game…. to the gold stock gulag. 

4.    What YOU may not realize, are the longer term ramifications of this action.  To get a loan from a bank, you need to qualify for the loan.

5.     Since the dealers had their financing lifeline chopped by the banksters, they are already beginning to go into the red. 

6.    The bottom line is that even if the Gman and banksters, in their infinite generosity and wisdom, allow the dealers to get financing again, many/most of the dealers will be in such horrific financial shape, that they won’t qualify for loans!

7.     I realize that the super-bulls can’t go more than 72 hours without screaming that the ultimate low for all of time is in, and now we are going to Pluto with the gold price, but it’s actually unknown as to whether any such low is in, or even if this is the beginning of a real short covering rally.

8.    We cheer for it to be the low, and we cheer for it to be the start of a huge short covering rally, but, unlike the super-bulls and super-bears, we don’t brag that we know what is next.  We prepare for it, with “it” being emotional preparation to manage any and every scenario under the sun.

9.     Please click here now.  Double-click to enlarge.  That’s Impact silver.  Some junior metal stocks, like Impact, have head and shoulder bottom patterns in play.  Others look like trash cans ready to be emptied into dumpsters.

10.                Maybe Impact’s H&S pattern plays out, but just in case it doesn’t, accumulators should be shorting GDXJ at the same time as buying it.

11.                 While the Western gold community takes turns outlining their imaginary reasons why America’s problems are more important to gold, than Indian citizen ability to buy it, YOU, instead, wisely click here now.

12.                What makes gold rise, in the biggest picture, is the amount of risk capital that Indians have, to buy it.

13.                In turn, what determines the amount of risk capital they have, since 70{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of them are involved in farming, is the amount of money they get from selling their crops.

14.                The monsoon season determines whether they can buy an average amount of gold, more gold, or less gold.

15.                The current monsoon season looks “about normal”.  In time, the monsoon season will be replaced with urban economic growth, as the prime price driver, but for now, 70{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of Indian citizens still live on the farms, and so the monsoon season determines the amount of risk capital they have to buy gold.

16.                The banksters want you to think that when India industrializes, they’ll be educated (brainwashed or hogtied) into rejecting gold as an asset.

17.                My question to YOU is this:  After the communist government of China finally allowed free enterprise there, did the citizens get “educated” and reject gold ownership as an old fashioned relic?  No.  They increased their gold buying, mobbing the stores with 10,000 people at single stores, when there are price sales.

18.                Exponentially magnify that situation, and you have a tiny clue of how Indian citizens will act, after the nation industrializes at the rate that China did.  I expect to see 100,000 Indians mob single gold dealers, when there are price sales, once the industrialization gets rolling.

19.                That’s not today, but it’s not a reason to throw your gold in the garbage either.  If you liked to play cowboys and injuns as a kid, perhaps you might want to play the injun role, as an adult.  A golden arrow versus a fiat six shooter?

20.                India’s finance minister, CP Chidambaram (aka CP Scumbag) is in the United States this week, trying to attract investment from US mega corporations, while continuing his mega-beating on Indian small gold business owners.

21.                There is so much government corruption in India that FDI (foreign direct investment) is tanking. Foreign corporations are pulling out, and that’s putting gargantuan pressure on the Indian rupee.  In time, scumbags like Chidambaram will be replaced by more reasonable Gmen, and FDI will stabilize, and the rupee will stabilize, and gold will no longer be used as a scapegoat for Gman corruption.

22.                In the shorter term, far more important than the next Fed meeting, for the POYG (price of your gold), is the Indian Gman/bankster meeting on July 29. If the rupee is still tumbling at that point, another onslaught of attacks on the citizen gold buyers can be expected.    

23.                In June, India’s superstar citizens imported about 30 tons of gold, despite the crazed attacks on them by their government madmen.  At $1200 an ounce, that’s about $1 billion.  Foreign corporations pulled out about $7 billion in June.  Gold buying is about 5{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of Indian GDP.  It’s Gman corruption, not gold imports, that is wrecking the rupee.  The opportunity cost, of FDI that could have occurred, but hasn’t because of Gman corruption, is truly astronomical.

24.                In time, the massive corruption that defines every level of Indian government will recede, at least to a degree that allows FDI to rebuild.  If the banksters want the current rally in gold to die before it gets going, they’ll pay off the Indian Gmen to unveil more regulatory horrors on July 29, and hammer the rupee between now and then.  If they decide to blow the shorts out of the water, watch for July 29 to arrive with a rupee that is stabilizing, and an Indian Gman that says little about the gold industry.

 

Report Card Day.  It’s 2 weeks to Indian Gman Day.  Gold could easily rise to $1350 by then, which coincidentally is the mysterious short term target of a lot of bankster analysts, which they “predict” will be followed by….new lows!  The bottom line: All gold roads lead to July 29.  Let’s cheer for a gold-positive outcome, but prepare for the worst, from Harvard boy CP Scumbag and his vile crew of gold haters.  Step up the juniors pgen accumulation pace this coming week, but don’t forget to add sizable short positions as you do that, using either GDX or GDXJ….  The comex will continue as the world’s main price setting mechanism for quite a while, but it will be events in India, China, and Dubai that determine whether the banksters move the price up or down on that comex…. Some of you are hearing a lot of talk about gold confiscation.  In the West, it’s mainly the banksters that own gold, so confiscation is highly unlikely.  The public has essentially no gold to confiscate. It’s fiat that will be confiscated, not gold, via bank account taxes.  The Gman confiscates what the public has, not what they don’t have.  The public has fiat.  You have gold. 

 

Thanks!

           Cheers

           St

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