As this week draws to a close we have seen a very significant development for the precious metals sector. In order to properly put this into context, let me provide readers with a reminder, by taking an excerpt from last week’s edition:

 

…The only element of uncertainty at the moment is the lie which the BLS will report with next Friday’s U.S. jobs-numbers. It’s impossible to plausibly pretend the economy is still generating jobs. Thus the question is will the propganda-machine report a negative number next Friday (i.e. the U.S. economy is losing jobs) in order to retain credibility; or is the situation so desperate that it no longer cares if its fantasy-numbers are even remotely believable?

The secondary question (for precious metals investors) is how will the market react next Friday – despite the best efforts of the banking cabal to depict next Friday’s news (whatever it is) as being “gold-bearish”…


We now have our answer to those questions. In order: with the ridiculous claim of a “gain of more than 160,000 jobs”, the BLS clearly no longer cares if its lies are plausible. This is a clear indication of a propaganda machine which is rapidly losing its capacity to deceive. Propaganda is nearly totally ineffective once people cease to believe it. Understand that once the Sheep stop believing the lies about the overall economy that they will similarly cease to believe most/all of the negative propaganda directed at silver and gold.

“Controlling the message” is one of the most important remaining manipulation-tools for the bullion banks. Lacking the bullion reserves to drive the market down with brute-force (as the Banking Cabal used to do when they were dumping 500 tons of gold per year onto the market, plus who know how much more with their “leasing”?), they must now rely upon Lies and Leverage.

When the Lies are no longer believed that just leaves Leverage. And as Jeffrey Christian told us several years ago, at that time leverage in the (fraudulent) Western bullion markets already exceeded 100:1. We can only wonder how much higher the banksters have been forced to ratchet-up their paper fraud in this market – as it has required (constant) extreme downward pressure on this market to keep gold and silver trapped in a trading range for this length of time.

We now get to the “market reaction” to these latest lies, and some hard numbers on prices. After nearly two weeks of non-stop propaganda attempting to assure us that Benjamin Shalom Bernanke was not about to print-up another trillion greenbacks (or so), gold had once again been dragged below the $1600/oz level. It began the day today just above the $1590-level, and with the “good news” which was manufactured in today’s U.S. jobs-report; the script called for gold and silver prices to be driven significantly lower.

However, traders in the market refused to be bullied into giving ground – despite the thinner trading which is typical of the summer, which makes it easier for the bankers to push the market around. One must suspect that some of the Big Buyers have stepped into the market at the present time, as this level of savvy from the Sheep would be very surprising indeed.

The result is that gold surged back above $1600/oz today, not down toward $1550 as the banking cabal had plotted. Silver has also had a strong performance, up over 2% on the day as it once again approaches $28/oz.

Note that even though the Big Buyers want to buy their bullion as cheap as possible that they are competing for limited supplies. Thus once it is clear to these buyers that the market is about to springboard higher, we will see queue-jumping, as these buyers try to grab bullion ahead of other buyers doing the same – with the result being that prices start rising despite the efforts of the bullion banks.

This is how/why we have generally seen the Fall Rally start a little earlier in recent years versus the beginning of this bull market. The Big Buyers can no longer afford to stall until September to start grabbing their bullion, and so now we typically see the market starting to heat up some time in August.

While it would seem unlikely that “the Fall Rally” has arrived already, we are so far overdue for a significant rally in the sector that this scenario cannot be ruled out. I hope precious metals investors enjoy their summer weekend, taking comfort in the fact that “better days” for the sector seem to be near at hand.

See how the anti-gold propaganda machine was forced to change its message from morning to afternoon, as traders simply refused to accept the “line” they were being fed…

“Comex Gold Prices Ease on Stronger U.S. Jobs Report”

http://www.kitco.com/reports/KitcoNews20120803JW_update.html

(Friday August 3, 8:49 am EDT)

Comex gold futures saw modest price gains mostly evaporate Friday morning following a surprisingly stronger-than-expected U.S. employment report…

“Gold up 1 pct, U.S. job data keeps stimulus hopes alive”

http://af.reuters.com/article/metalsNews/idAFL2E8J35DM20120803

(Friday August 3, 4:00 pm GMT)

Gold prices extended gains on Friday, rising 1 percent after a U.S. nonfarm payrolls report showed an increase in the jobless rate, keeping alive the prospect of further monetary stimulus from the Federal Reserve…

Posted in News By

Jeff Nielson