Sunday Afternoon Reflections From A MIDAS Perspective

Published here: http://www.zerohedge.com/news/2016-11-13/sunday-afternoon-reflections-midas-perspective
November 13 - Gold $1223.50 - Silver $17.36

Sunday Afternoon Reflections From A MIDAS Perspective

"Three
things cannot be long hidden: the sun, the moon, and the
truth." … Buddha

GO
GATA!

First the world, including the investment one, tried to figure out how a Brexit could have happened. Very few thought it would. Brexit caught the mainstream investment world, The Gold Cartel and PPT by surprise. Gold soared and the DOW tanked. It took time but those surprise market moves were totally reversed by the establishment in the coming weeks and months.

Now the big deal to be was our presidential election. The same crowd, along with the rest of the world, naturally figured a Clinton win was in the bag. Yet, lo and behold, another Brexit with the stunning Trump win. Caught asleep the first time, The Gold Cartel would not be so unprepared a second time. When gold took off following the result and the DOW plunged, as EVERYONE said would happen should Trump somehow win by a perceived miracle, THEY both went into action to change the entire market tone. It worked. The DOW has made all-time highs and gold was annihilated.

There wasn’t ANYONE in the investment world who predicted such market moves ahead of the election should Trump have won. We know, for a fact, that any hints of Trump having a chance prior to the election (following the Comey letter, for example) immediately put the DOW under pressure and put staunch bids into the gold price. This is so important to
appreciate. The Trump win was anything but a buy the rumor, sell the news event. It was just the opposite, and free markets should, and would, have responded accordingly.

How ironic that the American pundits and press are spending an inordinate amount of time trying to explain what occurred and why … and how they got it so wrong. You don’t need me for that. But it is fascinating how one of the themes is that the Democratic party has fallen apart – losing the Presidency, both houses of Congress, State Legislatures, etc. And yet, the most visible disintegration of a party, was the Republican one in that most of the big shots in the party deserted Donald Trump. From House Speaker Ryan to the Bush family, etc., etc. The most visible names and leaders in the Republican party could not extradite themselves from him fast enough prior to the election.

Almost all of the elitists, rich and powerful, in America were for the establishment Clinton, not the political outsider Trump. You all know that … so how could the financial markets do what they have just done? It makes no sense on the surface … especially the surface net response by the gold price. Good ole Kitco headlines on Friday…

"Gold At 5-Month Lows – Why Aren’t Prices Up Following Trump's Win?"

"Expectations Dashed For Gold; What Happened To The Raly?"

"Gold Bulls Couldn’t Withstand Trump Win; What Next?"

However, it all makes sense if you appreciate it all from a market manipulation perspective and from a GATA viewpoint, which is not allowed to be vented in our hideous financial market press and gold world community.

Simply put, the rich and powerful have had an ironclad lock controlling our financial markets and press with their rigging of our markets. All of a sudden (especially after their Brexit lesson), they were forced to be ready and waiting to make one of the great financial market interventions in all of history in order to change investor perceptions to buy time to figure out how to deal with the Trump phenomenon.

And it has worked for now. PRICE ACTION MAKES MARKET COMMENTARY. Overnight, the Trump win is good for the stock market. Higher interest rates (via the surge in the yield of the 10 yr T note) is good for the DOW too. Higher inflation is bad for gold. All this new uncertainty over the Trump win is bad for gold too. That list could go on and on.

My two cents for emphasis purposes: the establishment has made this move in order to buy some time on how to handle their new predicament. Although you wouldn’t know it by what
the DOW has done, the rich and powerful elitist just got their ass kicked. As part of that ass kicking, THEY have taken out their outrage on the gold price. That blatant kindergarten outrage is going to come back and haunt them.

The GATA camp has spoken for years (especially the last five years) how artificially low the gold/silver prices are and that the manipulation of these markets creating such a situation is distorting the real financial/economic scene in the U.S. That eventually this distortion would lead to chaos and unrest in America. In the end it would be about the little guy in our country versus the big guy. Well, the little guy just spoke. Clearly they are put off by the establishment in a myriad of ways. Wait until all heck breaks loose, and the gold/silver prices go bonkers (due to loss of Gold Cartel control) and their day to day situation really deteriorates further. The mall riots after our election today are nothing compared to what is coming. This is a major reason why what GATA has been articulating for 18 years is such a big deal.

As to the gold/silver nightmare. The gold chart is both telling and a wild one:

The Gold Cartel made their first move on gold on October 4 before the Chinese took the week off for a holiday. After taking out key support, the gold price fell a whopping $42
in one day. After an adjustment period, the price began to come back, challenging its key support level in the $1308 area from where it was forced to break down. Then, following
the election, The Gold Cartel went bonkers, creating the worst technical situation imaginable in order to encourage SELLING. It create an outside day reversal to the downside and a weekly one … enough to discourage many of the most rabid hedge fund bulls. Heck, a monthly one is looming too. (And what did gold fall on Friday?: $42)

There is one dichotomy, which is hopeful to the technical folks. We discussed last week what a farce silver was, which had every reason to make new recent highs, not collapse. While it was tortured Friday, it held some recent lows, and did not totally fall apart like gold did….

Perhaps this divergence is another "tell."

On a silver note, had the pleasure of chatting with Cliff "Nostradamus" High very late Friday afternoon. Cliff has gained quite a reputation for his "seer" predictions on all sorts of things. His latest, prominent one was predicting a Donald Trump victory, which Greg Hunter featured ahead of the election. As right as he has been on SO many developments, Cliff is the first one to admit the one prediction that has gone very wrong has been his call on silver. Figures.

Cliff is very well aware of how silver is being manipulated, which might explain why calling an explosive silver move to the upside keeps getting waylaid. The good news is that he is not straying from his prediction that the price of silver is going to go bonkers on the upside and trade in bizarre fashion when it does. May it happen sooner rather than too much later.

THE BOTTOM LINE, IMO:

Because of what we know The Gold Cartel has done, which no one is willing to give the time of day in the mainstream investment world, the odds of gold and silver going berserk the other way to the upside have gone to the highest level alert. Yes, there may be some recovery work to do here, but the stage is set.

Newton’s Law of Equal and Opposite Reactions is going to work in SPADES.

GATA BE IN IT TO WIN IT!