GOLD REPORT: Umesh Shanmugam

goldbarsGold has been in a waterfall-like decline for 2013, off nearly 23% YTD.

The price of gold and silver are closer to a bottom than a top. The QE-Infinity is closer to a top and will collapse under its own “goldless” weight. The PaperMoney holders are on the correct side of history. Understand that it has been one of the bigger world scams played by the central bankers, the illuminati who believed themselves untouchable, beyond the scope of comprehension by the non-banking world.

Action in gold is getting uglier by the day, thanks to speculators. Next stop is likely in the low-to-mid $1100s. Fundamental buyers, such as China, continue to buy the dips. If you do not believe that the financial repression theme is at its end, gold could be a good buy in the $1100s. The commodity secular move is not officially dead, but ugly swings in gold and Chinese equities have us worried that the end is near.

Will you sell out if gold goes to $1100, silver to $18? If not, then what difference does the current price of gold of silver make? If you are not going to sell, then let the central bankers crush the price as much as they can!……Taking a long-term view of gold we can see the $1,100 support thats talking about off the 2001 low. Will we see $1,100? At the current pace of decline in gold prices, it’s not hard to imagine. I’ll be watching this trend line and see if support is able to hold as gold futures and ETFs continue to bleed…or the next stop will be $1000-$800…

Ques of 10,000 Chinese waiting to buy gold; unabated purchases by China, Russia, India, et al, of whatever is available; mining shortages, cost of production over current prices, and whatever other story or fact one can produce does not matter. The course is set, and nothing will change it. Events will just have to play themselves out, regardless of anyone’s expectations, hopes, or fears. It may take a month, many months, a year, or maybe even longer. No one knows, as has been so apparent for the past few years.

Happy investing!!!
Umesh Shanmugam