Timing & trends
Last week, I told you how the smart money, the kind that moves first at the slightest sign of trouble, is on the move again.
Into high-end art, rare coins, diamonds and more.
There are numerous reasons why. Chief among them: The big, savvy and smart money knows what’s coming. Western socialist governments, on their death beds, are on a witch hunt to find every penny of wealth you have, track it, and tax it.
Some of you may think the rich deserve to be taxed more. Maybe so, maybe not. I’m not going to get into that debate today.
But what I am going to tell you is that if you think it’s only the rich under attack, think again.
Washington and Brussels want your money, too. They want to know how you’re earning it. Where it’s coming from. Where it’s going. Every penny of it.
They also want to control it. They want to get you to spend more to boost the economy. Hence, why negative interest rates, a tax on your money, is spreading through Europe.
Why JP Morgan is the first in the U.S. to impose negative interest rates on customer funds in excess of $250,000. Why more such policies are coming, yes, even here in the U.S.
And perhaps most important of all, why authorities in Europe and the U.S. are moving to abolish cash.
Never mind most of what you already do is electronic. You bank online. You trade online. You conduct business online.
That’s not enough for Washington or Brussels. They want all cash gone from the system.
Think I’m kidding, or fear-mongering? Think again. I have long warned that the world was headed to a new, cashless monetary system and to a new reserve currency.
The first such steps have already been taken. The International Monetary Fund (IMF) is now working behind the scenes to make its Special Drawing Rights, or SDRs, the new global reserve currency.
The World Bank is working on its own version.
All over Europe now, cash is under attack. Spain has banned cash transactions over 2,500 euros. Italians have been banned from using cash transactions of more than 1,000 euros, while France is expected to introduce a similar law in September.
France, by the way, is also requiring that all gold in the country and transported through the country must be declared and reported to French customs.
While large cash withdrawals exceeding 10,000 euros per month will also now be monitored and reported.
Throughout Europe now, foreign exchange offices are now required to obtain a copy of someone’s ID to exchange more than 1,000 euros.
In the U.K., former Prime Minster Gordon Brown is advocating abolishing all cash and forcing people to use all electronic money via a new nationalized bank.
In effect, Brown wants to usurp the money supply and control it better, he thinks, via a communist-type move to control your savings and spending, allegedly on your behalf.
In Denmark, at least, authorities are being more open about it. They’re preparing to introduce a law this fall to make virtually all transactions electronic.
It’s not just Europe, though. In many Central and South American countries, finger-printing is required by certain stores and businesses if one pays in cash with US$100 or more. Western Union has certain policies in place that require finger-printing outside the U.S.
Mexico has restrictions on numerous cash transactions.
Here in the U.S., while there are no national cash bans in place, a new trend is indeed emerging.
Louisiana, for instance, recently banned cash transactions for second-hand merchandise — making it tough for flea markets to survive.
In many states, pawn shops are now under very strict scrutiny when it comes to cash transactions, with a good deal of paper work now demanded.
Of course, the propaganda coming out of governments is that cash is how most terrorists and drug dealers work. Outlaw cash, and we put them out of business.
But you and I both know it goes well beyond terrorism and drugs. Just like the NSA spying has. It’s simply another way to spy on you, and to track and tax you — so the government can gain greater control over everything you do.
The problem is that it is going to get worse. Your rights are being trampled on, left and right. The Constitution means nothing these days.
But you have to stop and ask yourself one question: Why do governments want so much power over me these days to control and tax me?
The answer is simple: Western socialist governments are on their death bed, they are fighting for their lives, and if it’s a choice between them and you and your rights, they will always choose themselves.
In the end, they will fail. Governments can indeed fool some of the people some of the time, but over time, they can’t fool the majority. The people of the world, especially Europe and the U.S., will rise up and throw the bums out …
In one heck of a giant rebellion and revolution that is coming.
Stay tuned and best wishes, as always …
Larry
With continued volatility in global markets, today one of the greats in the business sent King World News a fascinating piece about the gold and silver plunge, U.S. dollar surge, his plan to short U.S. stocks, plus a bonus Q&A.
By Bill Fleckenstein President Of Fleckenstein Capital
May 26 (King World News) – While Asian stock markets continued their frenzied rampage higher, Europe was weaker as European bonds were roughed up due to the latest machinations in Greece and election results in Spain. Interestingly enough, Portugal’s bonds in the last couple of days were hit much harder than Spain’s, but for the moment all of the countries formerly besmirched as the PIIGS are seeing their debt under pressure. Equity markets over there, however, have barely noticed.
As for our stock market, it wasted no time heading straight down, as the indices lost about 0.75%…..
May 26, 2015
- Today is gold options expiry day on the COMEX. Gold. As expiry day approaches, gold has a tendency to trade sideways to lower.
- Option traders tend to focus on round numbers, like $1200. As they battle amongst themselves for higher or lower prices, their actions can effectively cancel each out, and the price goes nowhere. On expiry day, both put and call options often expire with little or no value.
- Please click here now. That’s the daily gold chart. As options expiry drama comes to a head today, gold is likely to stage a small advance towards $1220, or a small decline towards $1170.
- The blue triangle pattern and the black bull wedge pattern suggest that $1220 is more likely, while the sell signal on the 14,7,7 Stochastics series at the bottom of the chart suggests that $1170 is next.
- Swing trading can definitely form part of a general investment portfolio strategy, but no more than a small portion of an investor’s net worth should be allocated to it.
- For the past two years, most bank economists and Western gold gurus have unsuccessfully tried to forecast big moves higher and lower, for the price of gold.
- They have failed because the gold market is in a state of massive transition. For hundreds of years, the fear trade (bars and coin investment in the West) has dominated the market. Now, the Chindian economies are experiencing the greatest industrialization in the history of the world.
- Mainstream media in the West doesn’t seem to really understand the enormous size of this process, or its ramifications for the global economic order.
- The gigantic populations of China and India are focused on the love trade (jewellery), and in the coming years they will overwhelm the actions of Western fear traders. For now though, the global gold market is essentially unpredictable.
- Price discovery is now the result of a bizarre mix of fear traders and love traders, who each have totally different views about what economic news means for the price.
- Please click here now. While there may or may not be a “grand conspiracy” by Western banks and governments to keep the price of gold under pressure, there’s no question that banks have engaged in market “games” from time to time.
- Regulators are now moving their focus from a regional one in London to a global one. That’s good news. It adds legitimacy to the market, and attracts institutional investors to what I view as the world’s greatest asset.
- From a seasonal perspective, there’s no question that the first half of the year is generally soft, and the second half is usually firm. June is almost upon us now, and it’s the last month of gold’s soft season.
- Please click here now. Next, please click here now. These snapshots of the latest gold and silver COT reports show that investment funds (non-commercial traders) were covering short positions and adding longs recently, as the gold market rallied towards $1230.
- Commercial traders tend to have a better track record than the funds. They added a lot of short positions into that rally. Their actions fit nicely with the general seasonal softness.
- Based on their analysis of the next potential move for gold, some analysts are urging Western gold community investors to “Sell now, and buy back later!” Some are urging a strategy that is essentially….“Buy the final decline, before the train leaves the station!”
- I think it’s important for Western investors living the fear trade legacy to be very realistic about their personal situation. That’s much more helpful to building wealth than guessing about what may or may not be around the corner in the short term.
- The bottom line: If an investor has, reasonably systematically, bought some precious metals and related equities into the weakness of the past couple of years, there’s no need to get wildly emotional about whether gold is set to decline $100, rally $100, or just trade generally sideways.
- China, India, and Dubai are building an enormous gold market infrastructure for what I call the “bull era”. It will take about two years before Western gold price enthusiasts see the fruits of those labours reflected in the gold price on a daily basis, but I expect many gold mining stocks will show relentless uptrends during the building period.
- To understand why that is likely, please click here now. I use this weekly chart of China’s largest gold jewellery retailer, as a key leading indicator for Western mining stocks.
- The drama surrounding the COT reports and option expiry day can cause investors to panic, but most gold demand comes from Chinese and Indian jewellers. Chow Tai Fook is in the midst of a spectacular expansion program. Over the next five years, I expect the company will easily increase the number of its stores from about 2000 to 4000.
- Please click here now . That’s another look at the Chow Tai Fook weekly chart. I believe there’s an enormous inverse head and shoulders bottom pattern in play, and the right shoulder itself is a massive bullish wedge. I think Chow Tai Fook will trade at $100 by the time the expansion program is complete, and perhaps sooner; Hong Kong and China are merging their stock markets in July, with a mandate to trade 300 billion yuan a day. Chow Tai Fook based in Hong Kong, and institutional money managers are likely to invest heavily as the merger is completed.
- Please click here now. This GDX chart shows that most of the bigger gold stocks are grinding a bit lower, after rallying from mid-March to mid-May. Nothing is out of the ordinary.
- The most successful investor now is the one who dials down their obsession with predicting the next price move, and simply pours themselves a glass of fine bull era infrastructure construction wine.Enjoy the month of June!
May 26, 2015
Stewart Thomson
Graceland Updates
website: www.gracelandupdates.com
email for questions: stewart@gracelandupdates.com
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Tuesday May 26, 2015
Special Offer for Money Talks readers: Send an email to freereports@gracelandupdates.comand I’ll send you my free “Gold Stock Gaps With Volume!” report. Numerous intermediate and junior gold stocks are staging volume-based upside breakouts with price gaps now. I highlight six of the best ones that bull era fans may want to buy now!
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Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualifed investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an invetor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:
In the past several years, one of the topics covered in detail on these pages has been the surge in such gimmicks designed to disguise lack of demand and end customer sales, used extensively by US automotive manufacturers, better known as “channel stuffing”, of which General Motors is particularly guilty and whose inventory at dealer lots just hit a new record high. But did you know that when it comes to flat or declining sales and stagnant end demand, channel stuffing is merely the beginning?
Presenting…
Where the World’s Unsold Cars Go To Die (courtesy of Vincent Lewis’ Unsold Cars)
….read more HERE on ZeroHedge
….read more HERE
1. Armstrong Warns Of The Coming Crash Of All Crashes
3. Smart Money on the Move, Yet Again …
Putting it in alternative investments that can help protect your legacy, your children and grandchildren.
Keeping it out of the banks, where your money is sure to be tracked. Where it’s at risk of being “bailed in” should the bank go under, just like what happened to depositors in Cyprus’ banks in March 2013.
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