In our view, the price of Gold has been systematically manipulated for years-particularly recently. We have seen sales of paper contracts being “dumped”  thus boosting a false belief that gold and precious metals offer little if any potential for capital gains. Simply stated, it is a scam and a deception.  Let’s just suppose for a minute what would have happened if Germany had demanded immediate delivery of its gold held in New York “safekeeping” five years ago. Yeah “safekeeping”! It took them four years to get their gold !!!

Keep in mind that the US brokerage industry cannot tolerate a bull market in gold, commodities or resource related stocks occurring as it generally brings with it a bear market for the large industrial stock market such as the Dow Industrials. A bear market in industrial stocks causes a tremendous loss of brokerage industry profitability and price declines for many stocks.

During price declines of gold bullion in recent times, gold stocks have suffered larger percentage declines than they experienced in the past. A key reason is that we no longer have supportive market makers, also known as specialists, who in the past would purchase and thus support their assigned stocks during declines.

At the same time, there was also “informational sponsorship” in research coverage by the brokerage industry that would support the market makers’ buying. The key is that research reports while very often inaccurate do keep investors informed and advertise what a company has and is planning. Again, comprehensive research coverage is today very limited for most precious metals and gold stocks……actually for most companies.

We recognize that most investors are unable to emotionally tolerate the enormous volatility in precious metals stocks and the “juniors.”  Yet historically, very successful investors in precious metal stocks have taken advantage of “sales” and have “dollar cost averaged” during declines often later leading to exceptional capital gains. Yet the vast majority of investors cannot bring themselves to “dollar cost average” in gold type stocks or any stock sector for that matter which is very unfortunate. We try but cannot change human nature!

Bottom line? If our indications are correct, a major more inclusive bull market in gold, silver and many precious metals stocks should commence shortly.…… Almost all of the primary fundamental, technical, valuation and cyclical factors suggest that we are about to commence a far more inclusive “up-market” in gold, silver and the precious metals stocks.

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