• Gold: 1,226.20 -0.19
  • Silver: 14.58 -0.05
  • Euro: 1.151 0.000
  • USDX: 95.713 -0.243
  • Oil: 69.63 0.88

Why silver’s outperforming gold and isn’t done yet

Silver has quietly scored double the percentage gains of gold this month, and prices for silver probably haven’t topped out for the year. “The real value of silver is far from being realized,” said Andrew Chanin, chief executive officer of PureFunds, which offers the PureFunds ISE Junior Silver ETF.

A very ugly world - VERY soon

Quite a week, as the Cartel has suppressed PMs (during options expiration week) like we've never seen before. Horrible GDP, surging oil prices, lost Chinese gold, Gazprom de-dollarizing, and countless other PM-bullish events. Not to mention, plunging interest rates, per what we wrote in the "most damning proof yet of QE failure."

PM "bear market" over!

I attended Jim Sinclair's Denver Q&A on Saturday; at which point, he joined Richard Russell in declaring the PM "bear market" over. In fact, he anticipates a significant challenge to dollar hegemony this Fall, and gold prices of at least $2,000/oz - and potentially $3,500/oz. The end game is nigh, and we advise you to take heed!

Embarrassment of dovishness

Yesterday's FOMC statement was an all-out embarrassment of dovishness, which is why today's article - to be published shortly - is titled "Yellen's Last Stand"; and my weekly audioblog, also to be published later today, is titled "the Fed's rapidly approaching Waterloo."

Manipulation Monday

My weekly podcast on the Financial Survival Network is titled "Manipulation Monday" - and no better example of this can be see than today. Oil prices are surging as Iraq and the Ukraine devolve into civil war, and global economies are sinking deeper into the abyss. Meanwhile, the Fed is desperately supporting the 10-year Treasury yield at 2.6%, in fears of widespread realization of the "most damning proof yet of QE failure"; whilst the PPT will not allow stocks to fall, or PAPER PMs to rise.

Feisty Silver Bulls Face a Key Hurdle

The futures are looking robust for the first time in a long while. Yesterday’s rally generated yet another bullish impulse leg on the daily chart by surpassing an external peak at 19.525 recorded on May 23. A rally that is able to exceed at least two prior peaks with each new thrust, as Silver has been doing, is demonstrating that it is raring to go. If this is indeed so, we should see a surge today that surpasses the distinctive external peak at 19.825 (see inset) from May 22. Night owls looking to climb aboard should look to do so on a resumption of the rally following a shallow pullback of perhaps 15 cents from Thursday’s 19.565 high.

The most damning evidence

This morning, I wrote of how global debt passed $100 trillion last year - and frankly, dramatically more if true GAAP accounting was utilized. This is the most damning evidence that fiat currencies are failing; as ultimately, debt growth turns parabolic at the end. With both gold and silver trading below the cost of production, how much longer can the "New York Gold Pool" keep prices down?

"Abenomics-afied" Japan

The ramfications of last week's ECB decision to take deposit rates to negative 0.1% - not to mention, reinstating the LTRO and unsterilized SMP "backdoor QE" programs - are enormous. In other words, the ECB admitted Europe is in as dire a situation as the "Abenomics-afied" Japan; and it's only a matter of time before Whirlybird Janet announces the same here.

Cataclysmic Central bank announcements

Today, one of the most cataclysmic Central bank announcements in history was made; when not only did the ECB reinstitute the LTRO (thus, admitting its banks remain insolvent); lower the key lending rate to 0.15%; and discuss the potential launch of a new QE program - but took the deposit rate NEGATIVE!

"the Cartel"

All I can say is this; by pushing prices this far below the cost of production, the resulting blowback will indeed be historic - as worldwide, the fundamentals for owning them are strengthening with each passing day.