jwu MAY 15

May 15, 2014


1.   There’s a lot of positive talk about crypto currency (bitcoin especially) in the mainstream media now.  Bitcoin hasn’t really done much price-wise, since governments around the world began blasting it several months ago.

2.   Please click here now. http://www.gracelandjuniors.com/images/stories/14may/2014may15bit1.PNG   That’s the daily bitcoin chart.  Yes, it’s staged a “breakout” from the long term trend line, but it was attacked in a way similar to how the banksters/mafia attacked gold in 2013.

3.   Time is required to rebuild bitcoin.  CNBC, to their credit, note that 30,000 programmers are involved with bitcoin, and the book value is about $3.5 billion.  They suggest it could be bought by some entity and developed.

4.   I agree, but that also takes time.  On the positive side of things, Sir Bit has survived a serious attack, including the fraud/implosion of the biggest exchange, Mt. Gox.

5.   I posted a video on Northern Dynasty (NAK) on the site.  That’s the kind of company that Chinese and Indian jewellery want long term contracts with.  Rio Tinto gave their stock to an Alaskan native group(s), and that may not be as negative as it seems.

6.   It’s true that a major source of money is gone, but the Alaskan government is going to be vastly more prone to negotiate with a native group than with Rio Tinto. 

7.   A lot depends on what type of leaders the native group has, and a lot more depends on whether you have a NAK pgen (preferably with a GDXJ short position of 30{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} to counter it).

8.   If you look at the weak action of gold stocks today, it would suggest the triangle formation on bullion will be resolved to the downside.

9.   On the other hand, if you look at T-bonds, they suggest gold ultimately follows them higher. 

10.        On the geopolitical front, the Ukraine is getting worse, and now China and Vietnam is becoming an issue where American Gmen once again want to save everyone from themselves.

11.        The IMF is gleefully signing loan/austerity agreements with the Ukraine to save them from a natural gas debt problem that never really was a problem, because Russia just let it slide, as long as the Ukraine kept making them a profit on gas sales.

12.        The bottom line: Ukraine’s debt to Russian entities was essentially marked to model, and now the IMF is marking it to market, while Western Fudds cheer wildly.

13.        How a Gman that has a higher tax rate than another Gman, by a country mile, can claim he’s a freedom fighter is questionable at best, and a serious slap in the face of America’s founding fathers at worst.

14.        So, gold remains trapped in a triangle formation.  Junior gold stocks really did ok today, considering the Dow was down 200 at one point.

15.        The banksters would love to have gold trade down on the day Narendra Modi is potentially elected, so brace yourself for that event tomorrow.

16.        The yen is a horrifically weak currency.  The Japanese Gman is engaged in massive money printing, and has a horrific debt level.  Yet, since tapering began in the US, which should strengthen the dollar against the yen….

17.        The dollar has tanked against the yen and today it arguably broke a critical trend line and certainly broke another.  The bottom line:  If the yen is a basket case, and the dollar is declining against THAT, what does this say about the dollar?  What a horror!

18.        I posted a yen video on the GU site today for those of you who want to better understand how weak the dollar really is.

19.        The gold community is in rough shape.  By my estimates, which are based on internet traffic, email correspondence, and watching the guru statements and actions, I estimate that 75{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of the community is emotionally and financially comatose.  It could be a number much higher than that.

20.        Regardless, you can’t kill a gold bug.  To top everything off, the gold community had to deal with an almost surreal situation where the super-crisis as a gold price driver was apparently being destroyed by tapering and OTCDs being marked to model and revalued higher… but Indian & Chinese citizens were suddenly on the scene, buying more gold than all the world’s funds bought in the super-crisis, just to celebrate getting married!

21.        Dealing with the idea that a gold bull market was over, but was being replaced with an even bigger gold price driver but on no fear at all, seemed beyond incomprehensible to many members of the Western gold community, who only knew gold as “all in the dollar”.

22.        There’s no question that those of you who endured all of this “got lucky”.  Beyond lucky, is more like it; what are the odds, seriously, that the biggest fear trade driver in the history of markets (OTC derivatives), totally fails to move gold over $2000, but a love trade that moves multiple times the tonnage of the greatest fear trade in history, leaps onto the main price driver stage just as that happens? 

23.        The odds of that are so small they might as well be zero, but it really happened.   

24.        To watch yourself, or at least me, get massively richer, please click here now: http://www.gracelandjuniors.com/images/stories/14may/2014may15kin1.PNG  

25.        Gridtime!  Here and now, you’re either beating your computer keyboard with a euro/usd chart in front of you, screaming, “why won’t the dollar fall down so I get a free parabola!”….or: you’re in the gold jewellery superbull era.  I’m in the superbull era, and that’s why I’m getting richer, while all the other gurus are smoking euro/usd crackpipes and looking at their bathroom mirror with a razor blade in their hand.  Chow Tai Fook looks ready to join Kingold, in the rocketship to Plutonic demand from your mines.  Are your mines prepared, or are they in the bathroom with a blade too?

Kirk, rockin it with my Kingold pals, up only 50{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} on the day, out!




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