itself is simply overwhelming.
In the years I have covered this market, I have never seen as many mainstream articles written about the (supposed) “bear market” today as were written during the 12 years in which the mainstream (grudgingly) acknowledged the bull market in precious metals.
This, of course, is entirely atypical behavior for a propaganda machine notorious for worshipping “winners” and shunning “losers”. When a particular company/sector falls from favor as a hot place for financial gambling, there is a brief frenzy of dancing-on-the-grave of the former darling – and then it is forgotten forever.
Not so with precious metals. Indeed, the more rabidly the mainstream propagandists insist that the precious metals sector has entered a “bear market”; the more obsessed they become in “covering” the sector. The lady doth protest too much, methinks.
This perverse behavior of the mainstream media is only one utterly obvious indicator giving lie to claims of a “bear market”. Global demand for physical gold bullion spiked to an all-time high around the world following the Great Paper Liquidation, which drove down prices in the phony paper-fraud markets for bullion in New York, London, and Shanghai.
The propaganda machine has never attempted to “explain” how/why you can have record demand in a “bear market” – because it can’t. High demand is the definition of a “bull market” in the real world. Bulls stampede. Bears hibernate.
Once upon a time the Drones in the mainstream media could understand at least this simple truth of market fundamentals, but apparently no longer. The lie of a “bear market” is fundamental to all the other gold-bashing mythology, and so it remains in their shrill rhetoric – despite its perverse absurdity.
Because of this mythological bear market; we have a growing herd within the mainstream media“predicting” another wave of gold-hedging from the world’s largest miners. Prices are low; so why doesn’t everyone lock-in (and forward-sell) years of their production at these give-away prices?
In any other sector, forward-selling years worth of production with prices at the lows of a “bear market” would be met with howls of laughter, but this is the gold sector. As noted in recent commentaries; the world’s largest gold miners are nothing but a collection of banker sycophants. Their banker Masters command, and they obey.
Currently those Sycophants are in India, trying to persuade the world’s largest buyers of gold tobuy less gold – at the request of their Masters. So getting the management of these miners to engage in more forward-selling of their gold is about as difficult as twisting the arm of Gumby. The problem for the bankers trying to induce another wave of hedging is in getting the shareholders of these Sycophant Miners to embrace another, massive gold give-away – and thus the waves of propaganda predicting such a trend.
Of course to even partially justify “hedging” at rock-bottom prices, it’s necessary to add additional mythology: that this “bear market” will persist for an extended period of time. And so we come to the next, major propaganda initiative aimed at the gold market: yet more talk of a B.S. Bernanke “exit strategy” for the Federal Reserve.
How ridiculous is this propaganda? We’ve been promised an Exit Strategy by Bernanke every six months since the imaginary U.S. Recovery began. This particular lie has worn so thin that no one in the Federal Reserve or mainstream media or U.S. government will even use the words “exit strategy” – for fear of immediately setting off a chorus of laughter. And so they say exactly the same thing, but now use the word “tapering” instead.
With almost all recent U.S. economic data being bad or terrible; Bernanke’s Exit Strategy rhetoric has never been less-plausible than it is today. Indeed, it is obviously for this reason that Bernanke’s own “exit” is now being widely predicted by the same mainstream shills – a newSnake-Oil Salesman is needed as the Fed’s premier manure-shoveler.
Yet it is precisely because the mainstream media has thoroughly embraced “Exit Strategy 6.0”; that we’re being told that hedging is such a good idea. “Everybody knows” the Federal Reserve is about to dramatically scale-back its unprecedented money-printing (while the U.S. economy crashes), and so the Chicken Littles “warn us” that many dark years lie ahead for the gold market.
But this only brings the mainstream Liars to another direct contradiction of their own babble:record gold-buying by the central banks themselves. If the Lying Media and Thieving Bankers manage to dupe the sycophant miners into hedging large quantities of their gold (at rock-bottom prices); who will be standing at the front of that line to purchase that gold? That’s right: bankers.
What we have is effectively the entire financial community (backed by the entire choir of the Corporate Media) engaging in a George Soros-like “bash and buy” in the gold market. But it goes much deeper than that; bringing us back to the word “desperation.”
Why are the bankers pimping-out the World Gold Council in India, to try to get the world’s biggest gold-buyers to buy less gold? Why is the propaganda machine attempting to pretend there is a bear market for gold at a time of record demand? Why are banker/media liars attempting to dupe gold-mining companies into forward-selling large quantities of gold onto the market (at rock-bottom prices) today? Desperation.
Even before the Great Paper Liquidation immediately sparked the Great Physical Accumulation in the gold market; there was a 1,500 ton/year supply-deficit. This was bad enough in the bankers’old paradigm of fraud; where most of the Chumps who though they were buying “gold” were only buying paper instead. But following the Cyprus Steal; those days appear to be gone for good.
Buying “gold” to attempt to escape the bankers’ world of paper-fraud is no longer attractive when one has to worry about their own government simply stealing that paper (called “gold”). So while the bankers are predicting a long-term “bear market” for gold every five minutes (out of one side of their mouths); legions of them have flocked to India and China – to look for new Chumps for their paper-called-gold.
In the meantime, anyone wanting to attach any credibility at all to anything asserted by the mainstream media (or their banker “experts”) on the gold market needs to first attempt to reconcile the following contradictions:
1) Why is the demand for (real) gold, in general, currently at an all-time high?
2) Why is the demand for gold by central banks (in particular) at an all-time high; or to be even more specific, why are the creators of our paper currencies swapping their own paper for gold at the fastest rate in history?
3) How can there be a (long-term) “bear market” for gold with (already) a 1,500+ ton/year supply deficit and mine-supply about to start spiraling downward?
Anyone who even made it part-way through Economics 101 knows that the only way in which any market with a massive supply-deficit and nearly insatiable demand can be cooled-off is through (much) higher prices. Period.
Much higher prices for gold (and silver) must come, and they must come soon. The only remaining question as the media and bankers currently perpetrate every form of fraud and deception of which they are capable of devising is this: will those higher prices come before or after the current paradigm of fraud leads to an outright inventory default?
“Bash and buy” used to be the Last Resort of the lowest form of market bottom-feeders. Today, it’s all the bankers have left.
This article is brought to you courtesy of Jeff Nielson From Bullion Bulls Canada.