Weekend events in Cyprus shows that the rule of law is stone cold dead. Let the potential victims beware! To bail out the banks, the government is stealing 9.9% of every depositor's account. You go to bed with $10,000 balance, wake up with $9,010. The banks now possess all. What's theirs is theirs, & what's yours is theirs, too. Weekend surprise party, as usual.
As a sop to the victims, they receive worthless shares of stock in their bankrupt bank. Of course, that only adds insult to injury.
Don't be drawn off point by the inevitable bank propaganda claiming much of the money stolen was owned by evil Russians oligarchs. What difference does that make? Because you consider someone "evil" you are empowered to steal from them? Besides, if banks & their running-dog governments can steal from evil Russian oligarchs, they will steal from you, too, as we already see.
That prompts another meditation on why timing this bull market is not as important as climbing onto the bull. Which do you prefer, electrons in a bank, waiting to be stolen, or silver and gold in hand? Go ahead, mock my suspicions. Y'all won't be laughing or mocking when they get around to stealing YOUR money. Mocking won't hurt my feelings. I don't know no better no how. I'm just a natural born fool from Tennessee -- but I ain't waiting around to be robbed.
This officially-sanctioned theft in Cyprus will likely prove to be the catalyst silver & gold were waiting on to begin their rally in earnest.
I pass over as a subject way too hateful & stupid to discuss the possibility that the entire Cyprus caper was engineered by the US behind the scenes to provoke the Russians for backing Assad in Syria. Still, that's possible, too. Whatever the reason, the move in Cyprus annihilates the rule of law & opens depositors around the world to theft-by-bank.
As my old first sergeant used to say, "A word to the wise is suffice."
In few words, the stunt in Cyprus sent scared money looking for a safe hole. Stock markets everywhere fell, dollar rose, euro fell (no surprise to anyone with an IQ greater than the poundage in his tires), yen did nothing, & around the globe Nice Government Men & stinking central bank yellow dog lackies sweat bullets & stayed up all night trying to figure out how to keep their bogus world together so they continue sucking the lifeblood out of the productive.
Dollar rose 50.9 basis points (0.6%) to 82.745 from where it ended Friday. Euro lost 0.93%to $1.2955, but didn't break down on the chart, although it ain't but a gnat's whisker between it & falling off a cliff. Japanese sat this one out. Yen was unchanged at 104.89.
US$1=Y95.34=E0.7719=0.034673 oz Ag=0.000623oz Au.
Stocks hit the skids around the world. Asian markets were hit worse since their NGM didn't have much time to react & manipulate markets. Hong Kong's Hang Seng index lost 2%, Tokyo's Nikkei lost 2.71%. German Dax lost 0.4%, French CAC40 lost 0.71%, Dow Jones World Index sank 0.95%. Lawsie, it was a mess!
Now y'all pay attention here: both the Dow in Gold & Dow in Silver broke today, Dow in Gold the worst. Closed 9.01 oz (186.25 Gold dollars), down 1.26%. Dow in Silver closed 500.52, down 0.75%. Too early to call the game, but that pretty stoutly betokens a reversal downward. Needs confirmation, sure, but gold even gapped down. Dow/Gold is reversing on the weekly chart, too.
I don't give two hoots and a holler what stocks are doing in nominal dollars, because that's a shell game. Purchasing Power is the real game, and what's gaining on what. It appears gold and silver are about to start gaining on stocks again after a long lag.
Y'all listen, and write this down in that little book y'all all carry in your pockets. Stocks since 2000 have lost 85% of their value against silver & gold, & before this is over, they'll lose another 85%. Hide & watch.
Don't governments just LOVE to stage surprise parties over weekends? Ain't that just like 'em, bless their hearts! You gotta love 'em, unless of course you don't, like me.
But thanks to governments over the weekend gold smashed that $1,595 resistance that had so long imprisoned it, then leapt quickly to $1,605, then $1,610.28. Comex gold gained $12.10 to $1,604.60. Silver gained only 2.4 cents [sic], of which more anon.
I bet y'all weren't paying attention last week when I kept writing that gold had broken out of that little pennant and kissed back. Today it shot up, confirming the upside breakout from that pennant. Of course, it must continue rising, & the first big hurdle stands at $1,625, then the higher hurdle at $1,650.
Don't y'all be surprised if the Nice Government Men try to slap gold silly tomorrow, but if gold is to continue rallying it must not drop below $1,595. I bought some with a good will first thing this morning, & I'm proud of it still, even knowing the danger.
The fly in the ointment of today's gold rise is silver's chintzy 2.4 cent rise. Course, silver can be expected to lag gold when a financial crisis fills the air. High today came at 2902c which didn't even beat last week's highs.
It's all right, gold ought to drag silver on up if gold intends to rise in earnest. If both of them don't rise here, then we have an awfully long time to wait. But I think today proved the change of direction promised and whispered by the early March lows.
Expect lots higher prices for gold & silver this week, unless they manage to break them tomorrow, which I have to doubt.
You know, if I was an Italian or Spaniard with any money at all in a bank, I would look at Cyprus and easily picture a target painted on my chest. Hadn't y'all rather hold gold & silver in your hand than electrons in a Spanish or Italian Bank? Mercy, I'd rather hold gold & silver than electrons in a New York bank!
Buy the breakout: time to start buying silver & gold.
On 18 March 1931 the first electric shavers went on sale. No shock, they were by Shick.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger