STAFF NEWS & ANALYSIS
As Metals Continue to Perform, Brexit Is Not the Only Driver
By Daily Bell Staff - July 06, 2016

Gold Stocks Dodge Drop as Risk Aversion Hits South Africa Assets  …  Gold producers escaped the worst of a two-day sell-off in South Africa as investors around the world switched to safer assets. While the rand headed for its biggest decline against the dollar in a week and was the second-worst performer in emerging markets, South Africa’s gold mining index jumped to the highest since February 2012 as investors sought havens from turmoil following the U.K. vote to leave the European Union.   –Bloomberg

Once again, Bloomberg writers and editors can’t help themselves.

Metals are spiking around the world, but they include “gold” in a headline about a South African selloff,

Very clever.

All part of the anti-metals crusade that Bloomberg constantly wages.

In this case, there’s nothing negative to say about what’s happening in the mining sector or in South Africa.

Even Bloomberg has to turn positive as best it can.

More:

AngloGold Ashanti Ltd. led gains as Johannesburg’s FTSE/JSE Africa Gold Mining Index advanced 6.4 percent. The price of bullion rose for a sixth day, climbing 1.2 percent to the highest since March 2014.

“The theme at this point in time seems to be an overwhelmingly risk-off one,” said Jana Van Deventer, an analyst at ETM Analytics in Johannesburg.

“This has also bolstered demand for assets like the U.S. dollar, developing market bonds, and it’s seen gold rally quite impressively.”

Bloomberg believes the gold and silver rally has to do with the uncertainty caused by Brexit. Not so fast.

We’ve pointed out that some of the metals manipulations may have fallen away and that, in any case, the larger positioning of metals in the world economy is turning quite favorable.

What’s driving metals is a lot larger than Brexit.

ETFDaily has posted an article on the subject entitled, “ What Is Causing The Surge In The Price Of Silver?”

It provides us with a good summary of the price action for metals.

Have you seen what the price of silver has been doing?  On Monday, it exploded past 20 dollars an ounce, and as I write this article it is sitting at $20.48.

Earlier today it actually surged above 21 dollars an ounce for a short time before moving back just a bit.

In late March, I told my readers that silver was “ridiculously undervalued” when it was sitting at $15.81 an ounce, and that call has turned out to be quite prescient.

Our acquisition of a silver mining sponsor, our first ever, looks prescient as well. You can see contact information at the bottom of this article, or interview on the miner HERE.

ETFDaily believes that the potential implosion of European banks may be behind the continual metals rally.

Italian banks are sitting on the edge of a precipice, and in fact there is talk Italy might be the next to leave EU.

Deutsche Bank is insolvent as well. It’s not manipulating metals anymore. It just settled a lawsuit in April on that matter. Now it may go bust.

Also, the obvious surge of easing around the world which encompasses the Fed as well, provides a good metals environment.

Conclusion: No one is doing much tightening these days. Investors are watching Europe and trembling. Brexit is almost the least of it. Hiking metals prices may not be a rally after all but a long-term trend.

If you have questions about Golden Arrow, you can reach representative Shawn Perger here: Shawn: 1-800-901-0058 or 778-686-0135. See the website HERE.

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  • nameless

    To the moon Alice!

  • Praetor

    Brexit, was just the match!!!

  • Bruce C.

    I’m beginning to agree that this may be the beginning of a permanent “bull market” in PMs, but I guess I still don’t understand “why now?” Everything is still basically the same as it was years ago. Maybe price suppression schemes have abated recently, but I really don’t know. Maybe most investors are just slow and so they’re FINALLY figuring out what was theoretically obvious since 2001.

    Maybe the biggest factor, ironically, is that physical PMs and mining sector equities are such a small part of the total financial market that even just a small fraction of investment funds into those things makes an outsized difference in their price levels.

    For example, the current allocation of all pension fund monies in PMs and mining stocks is about 0.15%. If investment were to double to a “big” 0.3% that would represent an additional $100 billion which could buy outright every single company in the Philidelphia gold bug index (XAU) plus every share of the GLD (and you could take possession of all the bullion that backs it (right?)) plus all the shares of the GDX plus all the shares of the GDXJ. (BTW $125 billion would buy every gold producer on the planet, just for perspective.) And note that that doesn’t include any bullion (accept for taking possession of the GLD backing.)

    Personally, I’m hoping that the PMs and mining shares take a dump at least one more time for selfish reasons, but also because I don’t think the (central banking) Leviathan is in its death throes yet. They still have a lot of awful things they could do and the way global investors are reacting to Japan and the EU I just don’t think they get it – yet.

    There just hasn’t been that blow off capitulation yet. Even so, at these price levels I think the best approach is steady dollar-cost-averaging, and then you can enjoy the show!

    • Praetor

      The world and all the individuals that live on it, live it in their mind. If they can convince people of this that or the other thing, they control the matrix of the mind. This is their goal, control the mind of each individual. Convince the individual they belong to the Collective.

      That can only happen if we fall for the lies!!!!

      • Bruce C.

        Okay, but what are the “lies” in this case about gold?

        Another thing to remember about PMs is that only a very small percentage of the population will ever own them – physical or equities. Therefore, if the omniscient among us want to control our minds then I would think they’d get a lot more bang for their buck focusing on other issues.

        People like us who know about PMs, etc. and follow them assume that most people are affected by changes in the gold price but according to “polls” the vast majority have no idea. A rising gold “price” may be meaningful and foreboding to us but most people are clueless about it.

    • nameless

      [quote] “I’m beginning to agree that this may be the beginning of a permanent
      “bull market” in PMs, but I guess I still don’t understand “why now?”
      Everything is still basically the same as it was years ago. Maybe price
      suppression schemes have abated recently, but I really don’t know. Maybe
      most investors are just slow and so they’re FINALLY figuring out what
      was theoretically obvious since 2001.”

      Why now is a great question! Why at all…?!

      The directed history stage shows never start or stop, but continue on throughout time as a series of scripts that result in ever greater control going to the playwright. The reason the precious metals (and Bitcoin) are advancing is because these “bull markets” are a necessary component of the engineered collapse of the currencies. The PMs and digital currencies are the only safe havens (to preserve a portion of your wealth) during this show and will serve new roles in new forms of “sound money” that tptb will offer you.

      This purposeful depression is a global one that will allow the playwright to break up all large nations into many smaller units. Each of those fragments of previous nation states will be too small to be self-reliant and self-sustaining. Each will need help to survive. The solutions that are scripted to be offered to those fragmented states by the playwright include a United Nations based global “Authority” and a new (globally managed) form of “Sound Money”.

      This stage script is now fully live in the public domain, having been constructed carefully these last several decades, going back to the late 1950s (in planning) in their publications. You see, the EU superstate was not ever intended to be a globalist structure (stepping stone) for greater centralization of Europe. No way, the EU superstate was created in order to lash all of the independent nations of Europe together so that they can all be de-constructed at once. Blown apart on cue, if you will… The many self-reliant nations of Europe will soon be broken up into many more, much smaller “nation states” by way of this engineered economic/financial/social COLLAPSE.

      Brexit is the opening act for the EU stage. In the USA they have Texas and several other states prepared to “Recede” from the greater USA nation. In Russia the same game is afoot. In China… same script. And so on… The phony narratives you are reading about in the limited hangout alternative medias (and MSM) is there for your CONSUMPTION, to make you react in horror and support the ruse.

      If my sense of timing holds then you will all be exposed to much more of the plot as July moves forward into August. Its going to GET WILD, and unless you are asleep all summer long your self-maintained states of denial will be constantly challenged.

      Of course, behind the curtain stands the same degenerate
      boss that we tolerate now. Your present owner is not your benevolent
      all-loving government. Your owner owns and controls your governments
      absolutely. Your owner is in control of the entire planet.

      This is a “do it now or die in it tomorrow” challenge for all of us.
      They have in mind for us a new form of social government (likely a Mises/Libertarian hybrid) for each of our
      many fragmented and destroyed states. It is imperative that we create our own social
      orders, our own sound money systems, our own Non-Standing forms of
      self-government, so that by default we will not accept any of their pre-arranged
      solutions.

      We have allowed this to be possible for them. May we all begin to take full Responsibility for our past and present predicaments now? Let us as Individuals join together in co-operative efforts to restore our natural human roles in Universe and here on Earth. May we now dispose of all tools of force, competition, division. May we righteously and finally, become Responsible individually sovereign human beings.

      Responsibility.

      It begins…

  • Praetor

    We are dealing with children. The behavior we see from these people is child like!!!

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