May 24, 2014


1.           Please click here now: http://www.gracelandjuniors.com/images/stories/14may/2014may24trx1.png  There’s a nice bull wedge formed on the daily TRX (Tanzanian Royalty) chart.  Is it strong enough to overcome the train wreck of technical indicators?

2.           If TRX can limp its way to the end of gold’s weak season, and, more importantly, to the point where India’s 80-20 rule is jettisoned, it has a reasonable chance of good second half of 2014 performance.

3.           India has crackheads too, just like the West and China does.  They are a little bit smarter than the other two varieties, but not that much smarter.  Here’s the bottom line, and how it affects your junior gold stocks:

4.           When the banksters promised Chinese and Indian gold coin and bar buyers, during the April 12 – 15 crash, that it was the “big sale”, many citizens rushed to buy coins and bars, to get all the free money, since gold was surely going right back up to new highs.

5.           Chinese citizens were billed $100 + an ounce in markups by the banksters, who claimed there was a “shortage” of “the fizz”. 

6.           The gurus believed that bankster propaganda too, and cheered on the citizens of China and India, while they dumped their own holdings and lied about it to you.

7.           The banksters then took gold from $1432 down to $1228, and turned the entire Indian gold market into a gigantic protection racket.  Jewellers had to pay hundreds of dollars an ounce to get any gold from the mafia, at prices near the gold sold to them by the government.

8.           Now, these citizens believe the Modi government will reduced the import taxes, and will end 80-20.  The massive markups that are built into both government market gold and mafia market gold are set to disappear.

9.           Mohit Kamboj of the IBJA is predicting the Indian price of gold will fall another 5{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} or so from where it is now, as the government dismantles the gold market mafia.

10.        On that note, please click here now: http://www.gracelandjuniors.com/images/stories/14may/2014may24gold1.PNG  That’s the daily gold chart in India, and you can see that the price is in meltdown mode.

11.        The Indian citizens who believed the bankster propaganda about the “big free money sale”, are seriously underwater here.

12.        They paid $1500 - $1600, by the time all the markup are added in, and now the double combo of a stronger rupee and the removal of the import restrictions is turning the price into a $1200 - $1300 current value.

13.        So, the Indian coin & bar crackhead class are rushing to dealers, not to buy, but to sell, before the price falls more, and ruins their “we’re great and smart, as we buy gold on sale!” pipedream even more than it already has.  Their price chase, like the price chase in China, has gone awry.

14.        The good news is that the coin and bar gang is of limited size, and they are being balanced by jewellers who Nomura expects to take Indian demand up to not just not the 40 – 50 tons that JP Morgan is promising you, but to about 80 tons a month over the next 12 months.

15.        So, we have JPM promising about 45 tons, Nomura promising 80, and the WGC (world gold council) promising 100+.  I’m going with the higher WGC numbers, because I think only the Indian guy from the WGC understands the potential increase in Indian incomes that can occur as Modi burns the mafia leech off the citizen back.  I think real Indian demand, once all the smoke clears, and the games end, is about 120 tons a month.

16.        So, in the short term, the “Modi rally” that the gold community wanted is actually the Indian crackhead panic-sell, and nothing real happens, in terms of upside demand, until the 80-20 handcuffs are cut off.  Oh well, that’s why God invented patience.

17.        What does all this mean?  Here’s the scenario I see as most likely.  The word is out in the Indian gold community that the rupee is strong, the mafia must retire, reform, or get arrested, and that gold prices are likely headed lower (in rupees). 

18.        So, Joe Blow Indian gold jeweller and gold jewellery buying citizen there is in wait mode.  It appears likely that Modi will order Ragman at the central bank to kill 80-20, just as gold prices reach a trough in India.  The market is trading down now, in anticipation of that trough.

19.        So, it seems likely that around July, and I’m mentioning that timeframe in a rough way… it seems likely that Indian gold jewellery buyers and jewellers, armed with massive gold purchasing power due to the strength of the rupee, will suddenly be legally able to buy enormous amounts of gold, and that’s what they will do.

20.        I’ll be running through all the gold stocks in all the juniors portfolios today on the site, throughout the day.  There’s still a lot of naked shorting being done on your gold stocks, by monster banks like UBS, but as you can see clicking here now, http://www.bbc.com/news/business-27536127 , the scum are starting to feel some heat. 

21.        Ultimately, I expect the Canadian regulators to act like regulators, rather than boiler room operators on the take, which is what they are now.  The end of the gold stock manipulation era began on April 12, 2013, but it’s a long process. 

22.        As India and China continue to grow, the action of the bankster criminals in the Canadian junior gold stocks market will become more of a sore thumb, and the regulators won’t want to be painted in neon as complete scum, which is what they are now. 

23.        Large bank brokerages don’t promote penny stocks to their clients, so the entities the bank represents when entering these gargantuan naked short positions on your microcap mining stocks, are either hedge funds for whom the bank is the prime broker, the bank itself, or directors in the bank, and sometimes it’s all 3 of them.

24.        500,000 gold analyst morons are currently asking themselves how to repair or replace the London gold and silver fix.  Do you repair a rotary phone, or buy an Iphone and use that?  Mumbai is the Iphone, and London and New York are the rotary models, and the only question is, which model do YOU have?

25.        Switzerland reports their refineries exported $100 billion more gold in 2013 than in 2012.  That’s the gold that the banksters bought from the QE Crackhead team in the April – June of 2013 period.  They yawned while they melted it into kilo bars, and slowly fed it to China and India at giant markups, making epic profits for themselves.  The Kaloti refinery in Dubai, under construction now, is the first step in ensuring the banksters aren’t able to pull this kind of scam again, at least not for a long time. 

26.        Report Card Day!  There’s no more big loads of leveraged gold held by the QE-oriented buyers that the banksters can force-liquidate on the comex, so new gold supplies to feed Chindian jewellery demand must come from your mines or from central bank holdings.  It’s critical that your mine supply gets to the jewellers when they demand it, not when some glorified Swiss chocolatier decides there’s enough bankster markup to send it over.  All lights are green for your gold bull era, and all the lights are green for the patience you have in the multi-month transition period, as India’s gold jewellers rise from the ashes of the mafia-operated gulag, to what will be the new bull era normal.

          Kirk out!




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