Thursday November 06, 2014 15:34
Jay Taylor
We now have a 10-year triple bottom for gold shares as measured by the HUI Index. Have we now seen a capitulation in the gold shares? Or are we destined to go still lower?
Actually, in terms of the TSX-S&P Gold Share Index shown below on your left, that question was answered on Friday, October 31, when, on extremely heavy volume, the index fell precipitously from what had been a 110-year low of 160 to a low of 131.04. For a second day in a row it gapped down dramatically at the open. But at least today it didn’t finish on the low. It bounced back from 131.04 to close at 134.62
Clearly this is of concern to your editor. Either we are now at a grand buying opportunity or we could still have further on the downside to go before things turn around. The establishment would love to get gold off the planet if they could. But they can’t do so any more than they can control markets in the long run.
Peter Boockvar, who works for no less an establishment figure than Lawrence Lindsey (a former Federal Reserve board member and advisor to President Bush), whom I have met and had dinner with several months ago, responded to the insanity of the Bank of Japan in his morning notes by saying the following:
“…Gold is selling off in the kneejerk reaction to the strong $ and very weak yen but I say to all those living in Japan holding your life savings in yen, BUY AS MUCH GOLD AS YOU CAN NOW because it will be the only way to save yourself from the collapse of the yen.”
Based on the massive amount of money creation, it doesn’t sound like we should give up on gold shares just yet. In fact, what I think we need to realize is that this is most likely shaping up as the climax of this three-year bear market in gold and most likely some sort of blow-off top for the Jaws of Death equity markets. Whether the equity market gets hit hard after the elections next week or early in 2015 only the Creator knows. But if you think the massive surge in the equity market signals a new era of prosperity in the Western world, I’m sorry to say that nothing could be further from the truth.
The establishment has been able to lie and deceive and manipulate markets much longer and more efficiently than I ever imagined they could. What is at stake here is no less than the ability of forces of tyranny to rule over common folks. What is playing out now is not only whether our gold share investments do well or not. That is really insignificant compared to the really big issue of whether those in charge of the Federal Reserve Bank can do what they are setting out to do—namely, to create a one-world government to rule over you and me, much as the King of England did over American subjects. That is why the American Revolution was necessary in 1776.
Whether these evildoers of the Western world prevail or not remains to be seen, but there is absolutely no doubt that worldwide domination is what they are attempting, as both Russia and China are well aware.
Now, if you doubt the desire of the ruling elite to gain power, wealth, and complete domination, let me pass along a little quote from a page of “David Rockefeller Memoirs”:
“For more than a century ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, and of conspiring with others around the world to build a more integrated global political and economic structure—one world, if you will. If that’s the charge, I stand guilty, and I’m proud of it.”
The Rockefeller family, which is largely invisible, has enormous controlling interest through trusts that have been set up since the days of FDR, who was himself a very moral man. It is not possible to document or prove the influence this family along with a few other powerhouse, hidden dynasties like the Rothschilds have, but as I noted in last week’s letter, the evidence of the Rockefeller clan in the ownership of the Federal Reserve Bank has been documented.
What it comes down to is that their thirst for power and wealth is unlimited and the elite who are in pursuit of it will do anything to rule the world. Of course history is to a great extent all about the quest for global domination. But ultimately those attempts fail and, given the increasingly fragile global monetary system that the ruling elite have used to rob, rape, and pillage people around the world, including the use of our Military Industrial Complex, it is no surprise that the Council on Foreign Relations and its monthly publication constantly defends all manner of values stated in the U.S. Constitution and tries to rewrite history now to say the U.S. actually has not sent its CIA into numerous foreign lands to overthrow elected and non elected governments.
The bottom line for me is this. Although we have seen a massive rise in stock prices and a trashing of the gold markets this week, the sharp decline for gold looks like a capitulation for the yellow metal while the parabolic rise in stocks suggests that move is likely nearing an end. As such, I want to continue to hone in on gold shares that I think provide the best upside potential with the least amount of risk in this very tenuous market. Given the extreme decline, there are some great opportunities unless you give up, feeling that gold shares will never bounce back.
Jay Taylor
www.miningstocks.com
www.jaytaylormedia.com
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