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 - 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 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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