Ultimate Metals Investing Loophole Exploit? Yep.
Equity Markets to Equity Index correlation.
In addition to the near half hour long market update video we recorded on the 19th of July, we are excited to add the following information that we now feel confident enough to share. This is the kind of information that we would normally share in an edition of Wirehaus, though given the significance and importance of said discovery, we figure why not do a commentary piece. This is primarily (like many of our market update film-pieces) designed to help traders / investors that are using the convert paper (fiat currency), into more paper (more fiat currency) and then into metals.
As we (and many others who study economics) often speak about, there is (and has been for a long time), manipulation of the spot pricing of gold and silver. Nothing new there. In fact, by keeping the spot valuation of metals artificially low, central and other banking entities have been able to extend the lifespan of various fiat currencies (including the US dollar). In addition to outright spot valuation price fixing, there are also the other ubiquitous methods of metals repression such as various fiat currency interest rates. These prime interest rates are largely regarded as a means of gauging the "strength" or longevity of a fiat (non asset backed currency). Additionally, entities such as the United States COMEX (Commodities Exchange) aiding in the selling of "naked / uncovered shorts" on metals are designed to lead investors to believe that the "popular consensus" regarding metals spot pricing, is that valuation / pricing will decline. The same technique is often used to artificially repress equity prices by showing a large "short interest" in a particular equity. Once again, very elementary (for most of our readers), but worth saying none the less.
The fact of the matter is that like all systems, there is the inevitable systemic evolution (in the non darwinian usage of the word). The evolution of economics (used in the non linear context) is such that we are seeing many of the previous techniques used to manipulate metals failing miserably. This is a combination of many factors that we are not going to go into detail in this commentary piece on but in speaking generally: Socio-economic, geopolitical, as well as natural evolutionary forces all contribute to how a system of economics naturally self-optimizes (evolves).
You might be saying at this point "well that’s all well and good, still not much new there". Ahh, think again.
As we have spoken about things such as "fed irrelevance" (whereupon Federal Reserve / ECB (European Central Bank) / BOJ (Bank of Japan) monetary policy is no longer having any meaningful effect on metals markets), we have enough information at this point to make the following observation:
There is a very real possibility that the Federal Reserve / COMEX, ECB, and BOJ (Effectively what’s left of the Anglo western banking system sans the City of London) attempt an entirely new technique of metals repression. Before you get frustrated and say "oh not again"... this is perhaps the beginning of one of the greatest wealth creating opportunity cycles that modern capital markets have or ever will see. Seriously. We shall explain:
Evolution 4.0 indicates that the only way those seeking to repress metals can have anything of an effect is by driving speculative capital markets (and fiat currency) valuations higher. Only one of those two techniques will have any meaningful effect. We have already seen the dollar (and other fiat currencies) become completely detached from gold and silver. Not entirely, but certainly more than ever in the history of modern economics. This leaves the "lets drive capital markets higher" in order to get the "inverse ETF" effect going in terms of the relationship between metals and capital markets. We have seen enough of that effect during our 30 day trading experiment to say for certain than the "inverse" relationship between gold and silver and us domestic equity markets is very real. Such is especially obvious in the intraday movements of equities such as JNUG, NUGT, USLV, amongst others.
Therefore as we forecasted as early as 2014, the "buy everything" (equities and debt securities) technique is about the only way left for the remaining bits of the anglo western banking system to have any effect on repressing the spot valuations / spot pricing of metals. Guess what? Do the happy dance because that is the greatest exploit any metals investor could possibly hope for. What metals repressors are about to do is provide those that know what is going on, the ultimate means in which to convert paper, into more paper, into metals at a discounted rate. In other words, rising equity indexes (and share prices therein associated) and repressed metals valuations. Better than that it does not get. Think of it as triple cupon day at the coin shop.
By trading even at the index ETF level, metals investors can effectively convert paper (original fiat currency trade principle), into more paper (additional fiat currency trade profits), and then buy metals that will be available (for now) at a repressed / discounted rate. Check and mate.
Of course "good enough" is not really our approach to anything we do here at Evolution Consulting, so simply trading at the index level may work for some but we offer the following suggestions. Buying either sector level or individual equities that also have fundamental economic momentum behind them (and news cycle hype) could spell record gains for those using the paper into more paper into metals technique. Think of it as the "rising tide floats all boats" with a booster effect. Equities such as RGR and SWHC (trading higher on sociological events such as mass shootings and black lives matters events), increased product sales, and increased media exposure, get all the benefits of a rising index plus they are a fundamentally solid trade. The same can be said for Taser International (which we speak about all three in the above market update video).
Therefore, to summarize: Out of any other possible options to repress metals, the same forces that have attempted to repress metals are about to hand metals investors the gift that keeps on giving (up until the forecasted global economic reset which we forecast for Q3/Q4 2017 possibly into early 2018). As we have said so often (since we began sharing information publicly in 2014) the name of the game is purchasing power not immediate spot pricing. Its about having the metals on the other side of a major global currency collapse. For additional information on that we recommend that our readers purchase the Grant Street Notes Metals Investing Guide 2016. We do not do a lot of "self promotion" (we often forgot to mention our own web address on radio programs that we have done in the past), but the GSN Metals Investing Guide is truly an awesome piece. We did spend a hell of a lot of time in researching the information in said guide and it has already been proven to be one of if not the most accurate metals investing guide available anywhere. Therefore, for those reading this that do want to learn more about what we mean by "purchasing power" and "after the global economic reset" we again encourage you to navigate over the Grant Street Notes portion of this site and purchase our metals investing guide.
Please note, that we will be sharing additional information about what we have just spoken about here (the idea of an infinite-bull market in equities as a means of repressing metals) in many of our upcoming publications. in fact, those that listened to us during our test of concept phase may remember our Dow 28,000 forecast. We are seriously getting the feeling that we might have been a tad bit conservative on that estimate. We did forecast a lot of catalysts to move markets higher but the outright desperate and consistent purchase of equities by central banks as a means of metals repression admittedly was not one of them. Therefore we say "stay tuned" as things are about to get very interesting (in a fantastically great way) for those both trading capital markets as well as investing in gold and silver.
Please note, that this is a sample of the cutting edge, ahead of the trend kind of information that we publish in Wirehaus. We again chose to publish this information here instead because we do realize that there are quite a few folks trading along with us. We want above all else for those that appreciate what we are doing and truly understand whats going on, to above all else, prosper. As we have said many times: There is a 10% and a 90%. Its a lot more fun to be part of the 10%. #nuffsaid
