JWU NOV 22

      Nov 22, 2013

1.   Wagers betting that gold prices will rally 141 percent in about two years were the most-traded option in New York bullion yesterday.  Call options giving owners the right to buy gold at $3,000 an ounce by December 2015 traded 7,250 contracts yesterday on the Comex in New York..” – Bloomberg News, Nov 22, 2013.

2.   That’s a very big speculative bet.  Can gold really rise to $3000 in 24 months?  What would such a rise mean for your junior gold stocks?

3.   My view is that QE will end by Dec 2014, but an acceleration of buying by Chinese citizens, a resumption of Indian buying, and a new efficiency in gold mining…. These 3 factors should combine to trivialize the Goodbye-QE factor.

4.   I would like to see a slow and steady rise to $3000, rather than the return of the QE wonderboy.

5.   Also, it would be a gold market disgrace to see QE actually increase, but watch gold trading under $1900.  Queen Gold on QE drugs has been an interesting spectacle, but now the comedy show is over, and perhaps it’s time to see her compete as the world’s greatest drug-free athlete.

6.   What if the show isn’t over?  What if Ben or Janet begin ramping up QE to a degree that creates a new price chase?  Well, like all price chases, it will end, and it won’t end well.

7.   Gold isn’t like other assets.  When gold at points like my “loss of sanity” 2010 gold stock highs, gold really is at “risk” of going parabolic.  How a gold investor handles themselves in such situations is very different than how you would handle yourself in any other market.

8.   Governments and central banks are on written record calling high gold prices their enemy.  They love high house prices, high retail (but not wholesale) food prices.  They love high gas prices.  They love high rates of inflation in the tax market too. They don’t love high gold prices, and the extreme emotion that Western gold investors come into the market with, which by the way is fully justifiable…. but the banks can manipulate the gold market in a way they can’t manipulate other markets, not because they are desperate.  It’s because they are allowed to do it. 

9.   If the banks tanked the T-bond regularly, would the government like that?  No.  Gold investors must take more pain than other investors, by the definition of what the market is.

10.            Fortunately for the banks in the short term, and unfortunately for them in the long term, the gold world changed on April 12, 2013.  It changed because the banksters are like sharks.  They can’t resist the smell of blood.  The destruction of the QE-focused gold price chaser was inevitable if they took the price under $1523, and they did.

11.            I didn’t predict that they would do that, but I did put the odds at about 50-50 of it happening, and I did say the target was $1123 if $1523 was taken apart.

12.            I don’t believe the banksters anticipated the size of the Indian citizen bid would exceed the 400 tons they put up for sale, and when it did, like they always do when a big game is about to go wrong for them, they work with government to change the rules.

13.            As a juniors investor, obviously stocks are crushed, etc, etc, etc.  We all know that, but the bankster/government scam that unhinged gold at $1523 opened your eyes to the demand side of the market.  It showed you the depth of Chinese and Indian citizen demand for what your companies produce.

14.            If Modi gets elected in India, do you know how stupid the already-embattled President Obama is going to look, when he tells Americans that Modi is banned from US soil because of bureaucratic nonsense?  What are 1.2 billion Indians going to say to America, in response?

15.            If Modi brings up the gold issue, things could get very interesting.  China is going to side with India, when push comes to shove, not with America. 

16.            You may be on the verge of watching India rise up like king kong, and publically salute gold.  If you think President Obama sounded like a mouse on Syria, wait til you see what happens if India calls him out on gold. 

17.            The belittling of a cancer patient, by King Kong, with the cancer patient being the US government, is where this is all heading to.  Chidambaram slapped the Indian citizen face with his derogatory comments made about the nature of gold, and the nature of the Indian gold buyer.

18.            The citizens can hit back very hard, and if he pushes them into a corner, he won’t like what happens.  If YOU owned the most gold, which Indians DO, and you had the biggest BID that overwhelms all asks, which Indians DO, would YOU like the idea of some CHIMP bragging that he’s the one that decides what the price of gold is? 

19.            Perhaps not, and perhaps soon you’ll soon see that he who has the most gold, really does make all the rules.

20.            Gold jewellery is the most important driver of gold demand in the world, and I want to give you some key news there, but let’s take a moment, and analyse the differences between Ben Bernanke & Janet Yellen.  My view is there is no difference between them at all, and I think this comparison video really highlights how similar they are in policy, thought, and character.

21.            To view the key Ben & Janet comparison video analysis, please click here now.  Now you know how much respect I have for a couple of crackheads named Ben & Janet, in terms making my decisions about gold ownership.  Those two idiots were important, until April 12.  After April 12, the beginning of the end of their relevance to gold was highlighted in neon light, by the Indian citizen super-bid.

22.            So, let’s talk about what is important:  The off the charts growth in gold jewellery demand.  There are around 1200 gold jewellery outlets in Saudi Arabia and about 800 gold workshops.  About 40 percent of workshops have already shut down following demands by technicians who have taken advantage of the amnesty period to ask for a three-fold hike in their salaries.” – Arab News, Nov 22, 2013.

23.            The Saudi Arabian government wants only Saudi citizens working in the gold shops, and they want the average wage to be 200{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} higher than what it is now.  Higher wages are inflationary.  In India, Modi, if he’s elected, is looking to develop the handmade gold jewellery business to drive exports higher.  All of this is inflationary, and mildly bullish news.

24.            It’s not “knock your socks off” bullish news, but you can listen to Ben’s latest “we might taper in a few months” news, and see how great that makes you feel, or, you can focus on jewellers around the world bidding for your ever-more of your gold.  Ben took Queen Gold to a crackhouse.  Look at how that worked out.  Look at your gold stock charts.  Now give the druglord his report card.  I’ll ask you to give the world’s jewellers much less time than you gave Ben, but give them some time.  Let’s see what kind of report card they get.

25.            Gridtime!  Please click here now.  Did Ben Bernanke do that? No, but if you own this stock via PGEN, and some of you do, well….. it’s kachingo time!   

Thanks!

           Cheers

           St

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