As many of you know, Marc Farmer is a business associate who manages all precious metals bullion trading and storage for my clients. In this report, Marc opines that capital and physical markets are about to undergo a major reality check that will serve to drive precious metal prices much higher. In full agreement, I have been hurriedly changing my business model, which I shall also be writing about in the near future.
Here is the report by Marc Farmer:
We are now entering what I call the third and final phase of gold’s movement back to its point of artificially induced price divergence that started back in the fall of 2011. This phase will be marked by intense volatility.
Over the last decade, the global population seems to have been led into a whole new way of thinking, and has blindly set aside most of the known safeguards aimed at sustaining our way of peaceful coexistence on this small planet. We find ourselves at the doorstep of a major reality check on all fronts (social, political, economic and spiritual) regardless of who we are and whether or not we are aware of the consequences that are about to befall us. Everyone will be affected as we are globally intertwined on all levels of everyday life.
I believe that we have now reached a point where we will see many structured illusions start to crumble and some people will no doubt be taken by surprise at how fast things can transpire. The foundations for these events were laid many years ago and several are about to go critical very soon. For those who have prepared themselves, you are informed and at least have a fighting chance of getting through with only minor repercussions if any at all.
The old submariner movie “Run Silent Run Deep” comes to mind when thinking of the urgency of our current situation. In the movie, the captain has just issued the order to “dive-dive-dive”, the sirens are wailing and the crew is scrambling to secure all watertight hatches. The only way to avoid depth charges is by going deep, running silent and praying.
I’m sure you can see where I am headed with this metaphor but if you do not yet understand, I would invite you visit my Twitter feed (@bulliontweet) where I post precious metals related articles by selected authors on a daily basis. I make a point of digging in for important events that are often overlooked or simply not covered (blocked) by mainstream media.
At this point in time a number of writers are suggesting that significant events are about to unfold over the next two weeks that will signal the start of global transformative changes destined to impact us all. No one identifies exactly what the events will be only that they will become apparent toward the end of April and into May. We will see how this does in fact manifest for us but I’m sure you can see today that the global stage is being set for something of significance on many fronts.
The bottom line from the “golden” perspective is that we are about to enter a phase of major volatility for precious metals that should manifest over the next few weeks, intensify over May, then meander through the summer months to again move into extreme volatility in September, October and November.
The prices we see today for gold and silver will soon fade into the annals of memory under the file “I wish I had picked up some more gold and silver back then at those prices”.
The volatility I am talking about in gold and silver will be the result of many people in the global paper markets (bonds, equities, cash) vacating their positions in great haste and seeking a safe haven for their assets. Some will try the new crypto currencies that are quickly gaining public attention but most will seek the tried and true safe-haven of gold and silver. Remember physical gold is fungible, transportable, small, universally accepted and without counterparty risk (i.e. real money).
Within months and perhaps weeks of these extreme events taking place, the supply of physical precious metals will come under severe pressure as the price increases on the Comex, and available inventory will simply evaporate. Too many paper assets will be chasing too little physical gold and silver. Although paper gold can be created out of thin air in the futures markets, physical gold and silver cannot.
We have not seen these events take place yet. As I mentioned previously, this should start to appear at the end of April and move into May. One can observe this pattern developing in the Comex gold price now. Yes it is still completely manipulated as we speak but it’s becoming obvious that they are fast losing their ability to trash the price for a long period of time. We have now moved to the point where we will start seeing some major jumps to the upside and equally major dumps to the downside. I believe we will see $100 per day movements in the gold price this year. The difference will be that the bottoms will now be higher and so will the tops on the way back to the highs of 2011.
The unfortunate side of this observation is that when the gold (and silver) price starts really moving it is because something equally bad is happening in the world to trigger it. This could easily be reflected simultaneously on many global fronts: financial, economic, monetary, political, social, religious and the list just goes on. Pick your poison as there are many from which to choose today and they are all global in nature.
The paper markets are losing ground to gold on a daily basis. It is now time to vacate the deck of the submarine as it will soon be under water. Batten down your hatches with physical silver and gold and wait it out until the dust settles (I expect that could take a while).
You may call Marc Farmer directly at (416) 305-2101 to inquire about his BMG BullionBars Program, which many believe is the world’s safest physical precious metals ownership program in the world.
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