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 News From The Front  

 

Prior dewdrops of wisdom from the illustrious Sage of Wexford are retained for posterity below:

News from the Front:  December 13, 2016

The last dewdrops of wisdom from the Sage for 2016.  Very interesting year, but we will not reminisce here, but highlight the goings on in the various markets & economies that will have an impact on Precious Metals prices going forward.  Everyone should be buying both Gold at $1,162 & Silver at $17.15.  No guts, no glory.  No matter what Fibonacci retracement percentage or dollar amounts we have corrected from the 2016 highs, we are still firmly within new bull markets for both metals.

Oh, Gold is still up 9.4% since 12/31/15, and Silver up a whopping 24.1% even at today's corrected prices ........ the Poor Man's Gold (Ag) doing twice as well as the casino chips called stocks ...... with a fraction of the risk via the fundamentals and value.

 



I think Gold is being sold short in the futures market by Russia & China so
that they can accumulate more physical into their vaults while Uncle Sam is
asleep at the switch.  Dollar is on a short leash as Reserve Currency.

 



Silver has not corrected anywhere near the degree as Gold, which suggests
that inflation is rearing its ugly head once again around the world as the
Gold to Silver ratio declines.  Very, very interesting!



The rapidity with which American investors jettisoned the Precious Metals to load up on more overvalued stocks is quite amazing, but they did have the wisdom to reject Hillary's bid for the White House, so I give them credit there.  The Donald will not be able to spend as promised using an Overdrawn U.S. Checkbook of over $20 Trillion in the red, so the euphoria since Election Night will be short-lived in stockmarketville.  The Gold ETF's & Silver ETF's, not really a wise way to participate in two asset markets that have beaten the pants off of stocks and real estate since year 2000, have suffered large redemptions in shares which forces the custodians to sell Gold and Silver into the marketplace, further depressing prices.  That American investors would be so frail in their convictions of fundamental prospects for stocks versus precious metals is quite telling in a society that put a Community Organizer into office for a span of eight years.

Actually, I personally hope this exit from PM ETF's will be somewhat permanent going forward, because when an outside auditor is finally brought in via Government edict or investor lawsuit, it is highly probable that the results will find a gross shortage of metals within the vaults of the custodian.  It is only a matter of time before this will occur.  When such parties as Morgan are involved with ETF bullion accounting & storage, it is truly the fox guarding the hen-house.

The failed German bank, Deutsche Bank, probably receiving German Government/ Central Bank assistance as I type, has admitted to conducting illegal trading practices and collusions in the Silver market and has gone State's Witness against about 8 other offenders in the largest European and American bank categories.  We are hardly surprised based on the regularly perverse price action of Silver since 1998, but the cow is finally out of the barn and headed for the Chicago slaughterhouse.  This trial has put the likes of Goldman and Morgan and Bank of America on notice that their highly manipulative trading activities will be increasingly scrutinized and prosecuted going forward.  Especially with such a Free Market Advocate as Sir Donald Trump in the White House lobbing munitions at perpetrators on a daily basis.

I just knighted the Donald to put him on equal footing with Sir Alan Greenspan, a Central Banker who did more harm to the U.S. financial and economic system than any single academic hack in American history.  I expect Mr. Trump will be remembered in quite an opposite vein, a more colorful one at a minimum.  Bernanke and Yellen will take Second & Third Place on that dubious Wall of Shame in the years to come.  Central Bankers do not know more than millions of market participants on how to price money to maximize economic growth or employment, and minimize inflation.  THAT HAS BEEN UNEQUIVOCALLY PROVEN NOW SINCE THE FALL OF 1998.

The Euro Single Region Currency is failing along with the European banking system, Governments, and European economies.  The British post-Brexit have kicked themselves in their derrieres for not buying more Gold since that historic vote to become a free country again, the only true currency appreciating mightily against Sterling and the Euro ever since.  Italy and its banking system are on the verge of collapse (IF NOT ALREADY IN COLLAPSE!!!), and the Domino Effect in Europe is well underway to bringing the Continent down to its collectivism knees on a hard count.  Nationalism is alive and well around the world.  Global Homogeneity was a failed concept from the outset. Never forget that the largest American banks hold very large quantities of the paper of insolvent European governments and sinking European banks.  TIMBER.

Speaking of the Bond Market, as I have warned for years now as global yields for insolvent borrowers have reached truly RIDICULOUS levels, devoid of any pricing element of Default/Credit Risk OR Inflation Risk, has ended its Bull Market that existed for an unprecedented 34 years, and now is being mauled by a newly-born BEAR MARKET.  Mortgage rates Stateside have surged some 30% over the last several months, putting a further damper on the Housing Market that suffered already from overpriced abodes to buyers who could barely meet the monthly home payments even with grossly subsidized interest rates.  The bloom is well off the housing market rose, another nail amongst a box of nails in the coffin of the American economy.  Mr. Trump will not be able to affect change fast enough or spend money fast enough to turn this well-established trend around.  Sorry ....... Stock Dreamers.

 



The 10-year Yield has surged from 1.34% to almost 2.50% in just over 5 months.  When
it exceeds 2.50% and stays there, KATY BAR THE DOOR FOR BOND INVESTORS.
Stocks are destined to follow bonds down in price.  Emotional rallies are very fickle.
 


There is also price depression ( yield elevation ) of U.S. Treasuries globally as sovereign states continue massive liquidations of this now questionable debt in order to plug insolvency dikes at the State, Corporate, and Banking System levels.  With a new Spender in Chief soon to enter the White House, fiscal soundness of the United States looks to soon be more compromised than ever, and Central Banks might as well jettison this budding junk in order to plug solvency crises on the Homefront.  China seems to be the lead character in this unfolding theater, but massive sales of U.S. Debt will become a Rate Increase Factor ( RIF ) in the weeks and months ahead ACROSS THE GLOBE.  The bloom is off the safe haven status of U.S. Debt Obligations, and they are a ready source of hard currency for Sinking Ships of State ( S.S.S. ).  History, as usual, is unfolding before our eyes.  Ho, Ho, Ho, Ho, Ho.


Sage of Wexford, Happy Holidays & Merry Christmas to All,
                                    count your Blessings.


 

 




News from the Front:  February 7, 2017

Obviously, I took the month of January off from ezine writing.  I have been writing bullion newsletters for over 18 years now, almost continuously, and the pen is starting to run dry or the motivation to push the pixels across the screen is growing weary.  My new motto in my silver years is to avoid doing things I no longer find fun to do or find much satisfaction in doing.  The privileges of age.

The Trump Euphoria is running very thin in the financial markets.  That magic level of 20,000 on the Dow seems not to hold on a regular basis, and bond yields have started back up in the equally GROSSLY over-valued debt markets.  All is not right with the world as the UK works through the mechanics to actually exit the failed-experiment known as the European Union, a conglomeration of cultures, political systems, languages, and histories that have been more in conflict with one another than in economic or financial system harmony for thousands of years.  France is now poised to joint the Exit Parade in Europe ( EPE ) as systemic failures in Italy, Greece, Spain, & Portugal rear their ugly heads again.  The disintegration of the European Union in one fashion or the other in 2017 and beyond may just be the straw that breaks the global financial and economic system's back.

The media in the United States is the laughing stock of the world when juxtaposed to the phrase, "FREEDOM OF THE PRESS".  The Constitutional right to speak freely in the United States does not mean it gives supposedly credible news providers the right to distort, politicize, or to inject bias into news "reporting".  It has been NEWS EDITORIALIZING for decades now, and Americans are voting with their feet.  The majority of the American populace would now like "freedom FROM the Press", and they vote with their plasma screen clickers by not watching or paying attention to the major news outlets.  Advertisers on major media outlets need to wake up and realize how poorly their U.S. MEDIA dollars are being spent.  Just visit a site like Yahoo Finance to see how the articles have a political, biased slant at virtually every turn.  The election of Donald Trump was to crash the economy and financial markets when the last vote was cast, BUT SEEMS LIKE THE FINANCIAL MARKETS TOOK OFF INSTEAD as the U.S. economy limps along.  I have my own personal boycott going of all advertisers I see supporting this Pravda-like "reporting", and hitting the pocketbook of enablers is still the best way to affect change.

I will get to the Precious Metals, which by the way are doing just fine in a new bull market, but one last comment on the Swamp known as The Federal City, Washington, D.C.  I have lived in this crowded, polluted, and hectic region for most of my adult life, and I must say that the hiring freeze of Federal Employees is a breath of fresh air.  Maybe now we will have "CHANGE WE CAN ACTUALLY SEE", forget the "believe in" element from Barack Obama's failed presidency.  Every time I have driven in D.C. and passed Government buildings, all I saw were dozens of Federal workers on smoking breaks making it hard on the pigeons to catch a breath.  Total compensation packages well above private sector levels for a fraction of the value added to the American cause is not a just arrangement for all of those who have been struggling in the Middle Class or below for the last 30 years.  This largess must stop, and the insolvency of the U.S. Government will force this day of reckoning upon us sooner than most of us ever expected.  Now to the part that you have paid for ........ a succinct bullion market update.

Since a picture is worth two thousand words ( word inflation emerges also! ), I will start with graphic portrayals of asset markets continuing their bullish reversals of a four-year bear market:

 


Investing in commodity-oriented assets has never been for the faint of heart, but I find these price patterns very encouraging as an investor now for almost 50 years.  One merely has to ask himself or herself the very rudimentary question:  "HAVE THE FUNDAMENTAL REASONS FOR OWNING THIS ASSET IMPROVED OR DETERIORATED OF LATE AND SINCE I FIRST ENTERED THE POSITION??".
This is Investments 101 stuff, but it is a basic ingredient to successful long-term investing.  Granted, I may have a conflict-of-interest here in perpetually recommending the purchase of both Gold and Silver since 1997, a span of some 19 years, but I have always put MY MONEY were my diminutive mouth is.  I personally am a ready buyer of both Gold and Silver at these price levels.

BASIC FUNDAMENTAL FACT:  The global economic and financial system is poised on the edge of a precipice of systemic failures that are emerging as daily realities across the world.  To not see this unfolding is a classic example of "OSTRICH HEAD IN THE SAND" behavior.  And a gross failure to spend some time each day reading some very erudite articles on the internet such as this one.  Okay, I have been forecasting this demise or collapse for years now, but we are much closer to or actually in the midst of that HISTORIC DEBT COLLAPSE NOW than at any time in human history.  Ignore the world around you at your own risk.  How is the world going to service the $60 to $70 Trillion in piled-on ADDITIONAL DEBT AT ALL LEVELS since 2008 with a global economy already in recession/depression and sliding more persistently southbound month after month.  AIN'T GOING TO HAPPEN WITHOUT A DEBT COLLAPSE THAT WILL MAKE 1929 AND 2008 LOOK LIKE A WALK IN THE PARK.

Happy New Year, and get out of the financial system as fast as your little (or big) feet will carry you.  The hourglass of failed policies has just about run out.

Forewarning,
THE WOODPECKER-LIKE SAGE OF WEXFORD.

P.S.  Don't give a hoot about a rising Dollar hurting Gold or Silver prices because there is no negative correlation that holds over time.  The U.S. Federal Reserve will have to tighten their Pampers this year and increase rates probably to 1.5% to 2.0% at least by year-end to address the Inflation Genie that has escaped from the Bottle one more time while the Fed fiddles with self-denial of impotence.  Trump's Weaker Dollar Strategy ( TWDS ), jawboning only at this point like the Fed loves to do ad nauseum, will increase consumer costs in the U.S., not to mention what a Border Tax or Import Tariffs would do to Consumer Prices.  But Protectionist Policies will increase under the Trump Administration as promised to the voters.  Increased Deficit Spending from the Trump Buffet of Economic Gooses ( TBEG ) will also move interest rates and inflation higher for the Person on the Street, if he can get the appropriations by Deficit Hawks in Congress ( if there are any with guts left!! ).  BUT GOLD AND SILVER IN THIS ERA OF CURRENCY DEBASEMENT WILL GO HIGHER NO MATTER WHAT THE GREENBACK DOES.  I rest my case and my fingers.

 



News from the Front:  April 2, 2017

I was going to do a special April FOOL'S Day edition yesterday, but had other pressing matters like going to the racetrack.  I will get back to the FOOL theme in my typical irreverent style later in this exposition, but let's take a look at how both Gold and Silver are doing in this NEW BULL MARKET.  Bull markets always climb a Wall of Worry, and this Precious Bull is doing exactly that since there is no scarcity of Naysayers and Disbelievers lining the PM Bull's path on a daily basis.  That is fine, because all of these skeptics will be forced kicking and screaming into the Gold/ Silver markets at much higher prices at exactly the time that an interim correction in bullion prices will occur.  History does repeat itself.

The fundamentals for owning Precious Metals are even stronger today than they were on January 1st, so it just takes more physical buying of the two Monetary Metals by China, India, & Russia to empty the vaults of the Comex and LBMA exchanges.  This trend in motion will eventually cause a cascading FAILURE TO DELIVER on more and more tenuous Paper Contracts also known as Futures.  There is little physical Gold or Silver backing these mountains of Paper Metal Contracts, so the inevitable rush to obtain bullion in the cash market as exists on the Shanghai Exchange will be like a tsunami hitting the shores of New York City and London.  I recently saw a graph of the massive growths in Gold Reserves for China, India, and Russia, and the last 8 years show EXPONENTIAL GROWTH for these developing countries.  These 3 countries, and there are others, are building a stockpile of the Yellow RESERVE Metal to displace the U.S. Dollar as the Reserve Currency in the months and years ahead.  Get ready for it.  It is already happening in world trade for oil and many other essential goods.

AND I WILL BET BIG-TIME THAT FORT KNOX ONLY HAS A FRACTION OF THE GOLD THAT IS STATED TO EXIST BY THE U.S. GOVERNMENT.  We have been lied to on so many other issues and levels that in 2017 we-the-people place little faith in Government statistics and pronouncements.

The race to the bottom in the world's leading currencies is well underway as more and more Governments publicly admit to taking measures to consistently weaken their domestic currencies to attempt to salvage any Export Sales that are still left in a sinking global economy.  Nationalism is on the rise not only Stateside, but welling up like a Spring Thunderstorm across Europe.  This "MY COUNTRY FIRST" theme goes hand-in-hand with budding Protectionist Measures, and the stage is set for the greatest depression of economic activity and simultaneous financial systemic collapse that the world has ever seen.  The clock is ticking so loudly from Captain Hook's clock in the crocodile's mouth that the words DEFAULT, INSOLVENCY, & BANKRUPTCY will soon be visiting a dinner table near you.  The Debt Collapse, Phase II, is well underway, even if it is ignored by the hacks in the financial press or the overpaid teleprompter readers on the Nightly News.  Greece, Spain, and Italy, to name just a few, are literally coming apart at the seams as my not-so-nimble fingers fly across the keyboard.

But price is the best indicator of an asset's near-term prospects and the PM graphs look very appealing for anyone with half a pulse ( or half a brain! ):

 


Some very misguided and possibly inexperienced "analysts" will read these charts as a resumption of the previous bear market in the Precious Metals, but nothing could be further from the truth.  Both metals are doing a superb job of resuming their 2016 uptrends after the late summer interim peak for the New Bull last year, and are pulling more physical buyers from the sidelines on a daily basis.  It amazes me that retail investors are still buying stratosphere stocks and bonds at this very extended point in time, and that many men-on-the-street are still thinking that now is a good time for residential or commercial real estate purchases.  Yeah, if you like buying at the top of another financial asset/ real estate bubble cycle and have 30 years to hope to break even on your lousy timing!!!!!

But let's have a little fun with the April Fool's theme.  A saying was rejuvenated in the 1920's that a Fool And His Money Are Soon Parted (Shakespeare originally?).  So let's take a few minutes to review some very FOOLISH BELIEFS held by the maddening herd in 2017:

1.  Residential real estate is a no brainer and is your road to retirement & financial salvation:  FOOL'S PLAY ONE, turn back to 1990, 2009 and now again in 2017 when buyers at these cyclical market tops lost their shirts and blouses in residential real estate.

2.  The Federal Reserve can come to the rescue once again as in 1998, 2001, & 2009 when the inevitable Systemic Collapse reoccurs off a $70 Trillion higher mountain of debt than existed during the Fall of 2008:  FOOL'S PLAY TWO, with still near zero interest rates and the banks still not paying any interest on deposits and with inflation bubbling to the surface like wiretaps on the Trump Campaign, THE STUPID-TO-THIS-POINT FED HAS NO WHERE TO GO.  Buy more U.S. debt and bad debts in the marketplace?  Janet would have a new gig in a heartbeat.  YOU'RE FIRED .... screamed The Donald.

3.  The Bond Market is the best place to put new cash and proceeds from Stock Sales:  FOOL'S PLAY THREE,  after 33 years of a Bond Bull Market and yields that are barely over 3% at the long end of the market, you think a 1% rise in interest rates due to global defaults, forced Fed tightening and currency/ protectionism driven inflation is a SAFE BET??!!!  Reminds me of going from the frying pan into the fire!!!!!!!!!!!!!!!!!

4.  The Trump Super-Nova Rally in Stocks still has more upside to it:  FOOL'S PLAY FOUR,  after the very flawed attempt by Speaker Ryan to craft a passable ObamaCare Repeal Bill met its death by a thousand cuts (and it deserved to die, it was so pathetic), you think the hoped-for economic savings from trashing this Insurance-Company-Get-Rich-Quick healthcare monster are going to flow to fund TRUMP TAX REFORM ( TTR ) as far as the eye can see???  And then massive INFRASTRUCTURE PROJECTS are going to spring across the April landscape like daffodils??  TOO LITTLE, TOO LATE, PILGRIMS.

5.  The French will not be the next to exit the EuroLand Failed Experiment:  FOOL'S PLAY FIVE, since the French are famous for their Nationalistic Pride ( that could be mistaken for arrogance! ) and they have a society well-schooled in the tenets of FRENCH Socialism and 35 hour work-weeks, the odds are now greater than 50% that Franco-Exit will become a reality before Fall.  Not to be left at the gate, watch Greece, Spain, Italy, and other Basket-Case Euro countries pass referendums to obtain GET OUT OF BRUSSELS PASSES.


6.  Gold and Silver will not be the best place to invest in 2017 and beyond:  FOOL'S PLAY SIX, and I will stop here, the crocodile's clock is ticking so loudly that I am getting a headache.  HE OR SHE WHO HESITATES IS LOST.  Usually when you feel the most uncomfortable in placing an investment bet IS THE BEST TIME TO ACQUIRE AN ASSET AT A PRICE THAT WILL NOT BE SEEN AGAIN IN YOUR LIFETIME.  Am I confident or what??!!!  Once the snowball has headed down the mountain, and it is well on its way, THINGS WILL START HAPPENING VERY FAST.


Sage of Wexford,
manning the ramparts with golden and silvery bullets.


 

 

  
PRIOR DEWDROPS OF WISDOM VIA "News From The Front"
 

 

News from the Front - ARCHIVE I



 

The information and opinions contained within WCM's "News From The Front" have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. Neither Wexford Capital Management, David W. Young or the Company's agents or assigns accepts any liability whatsoever for any loss arising from the use of this free newsletter or its contents. All periodic "ezine" articles posted on www.goldsilverbullion.com are strictly for informational purposes only. No statement or expression of any opinions contained within this electronic newsletter constitutes an offer to buy or sell any financial securities or surrogates mentioned herein. Readers are encouraged to conduct their own research and to perform extensive due diligence and/or obtain professional financial advice before making any investment decision, especially in the exceptionally volatile asset markets of today.  WCM's Principal, David W. Young withdrew the Company's Registered Investment Advisor status with the S.E.C. and the Virginia Division of  Securities in May of 2005 and no longer offers financial-asset managed accounts receiving continuous supervision of assets.  WCM's principal, David W. Young, was a Registered Investment Advisor in good standing from October, 1985 to May, 2005.  Furthermore, the company does not engage in any fee-based or compensatory provision of financial or investment advice.  The brokering of tangible assets sales via U.S. Rare Coins, Precious Metals Bullion, and Fancy Colored Diamonds is the sole business of Wexford Capital Management and the company cannot be construed under any measure as being in the "financial newsletter business".




 



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