He Who Laughs Last, Laughs Best! Dow at 14,000 and People Laugh About the Gold Price? Ha!

Some people have been teasing me and saying "the Dow is at 14,000. where is your gold price? Ha!"

Really? Let's compare apples to apples, my friends:

Gold/Silver Exposes 2007 Dow $14,000 v. 2013 Dow $14,000 

"...what does Gold tell us about the recovery of the top in the DOW? 

In 2007 it took 20 ounces of Gold to buy 1 stock in the Dow index. 

In 2013 it only takes 8.3 ounces of Gold to by 1 stock in the Dow index. 

The Dow is off 58% from its 2007 high in terms of Gold. 

What does Silver tell us? 

In 2007 it took 1056 ounces of Silver to buy 1 stock in the Dow index. 

In 2013 it only takes 439 ounces of Silver to by 1 stock in the Dow index. 

The Dow is off 58% from its 2007 high in terms of Silver."  

Now, whose laughing? My detractors or moi? Ha! Ha! Ha! Ha! Ha!

Need physical gold or silver and living in Japan?

Where to buy physical gold in Japan

Time is Running Out! Buy Silver & Protect Yourself & Your Family!

Also refer to: Stocks Will Go Higher if We Keep Printing Money where you can find this excellent quote about the stock market rally

A Picture Speaks a Thousand Words...

Why US policy is a failure in the Middle East... 

Why Central Bank policy is a failure all over the world...

(That's me - or at least how I feel when I'm at work most of the time....)
Actually, though, this photo went along with an article about how Central Bank intervention and currency manipulation won't work....

Also for your reading pleasure (sorry folks, been super busy and haven't had the time to write! Will later today.... Maybe...)... Try reading these on for size... I'm extremely bearish on everything except precious metals... The yen? Get out while you can!

Japan Unveils Extensively Priced In "Open-Yended" Monetization News

In the most anticipated (and likely most strawman/leaked) policy actions, the BoJ and the Japanese government (still independent entities theoretically) have unveiled the new monetary policy to complement the $116bn fiscal stimulus plan to boost growth:

• *BOJ TO ADOPT 2% INFLATION TARGET
• *BOJ WILL INTRODUCE OPEN-ENDED PURCHASING FROM JAN 2014
• *BOJ TO BUY 2T YEN OF JGBS MONTHLY FROM JAN 2014
• *BOJ TO BUY ABOUT 10T YEN OF T-BILLS MONTHLY FROM JAN 2014

With epic amounts of JPY shorts and NKY longs, JPY was notably bid versus the USD (from Friday's close) going in, 30Y JGBs bid relative to 10s, and the NKY and TOPIX were leaking lower. Now is the time to see just how effective this efficient market is at pricing in the stabilization-to-retaliation phase of the current actions. Though of course, there is no intent to cough-'weaken'-cough the JPY:

• *AMARI TO SAY AT DAVOS NO POLITICAL INTENTION TO MANIPULATE YEN

So, as expected, the BoJ joins the Fed and ECB on the unlimited "open-yended"^(TM) printfest bandwagon. So far JPY is not totally impressed.

Germany Vs Japan Currency War Heats Up

Germany and Japan have a long tradition of cooperating, at least when it comes to various iterations of world war, generically in the conventional sense (and where they tend to end up on the less than winning side). Which is why it may come as a surprise to some that earlier today German politician Michael Meister launched what is now the third shot across Japan's bow in what is rapidly escalating as the most dramatic case of global currency warfare between the world's net exporters (at least legacy net exporters: thanks to Japan's recent political snafus, it has now become a net importer as it is rapidly losing the Chinese market which accounts for some 20% of its exports) which started as long ago as 2010 when it was quite clear that currency warfare is what the insolvent world can expect, before it devolves into outright protectionism, and finally regular war as Kyle Bass explained recently. To wit: “What can Japan’s competitors do?” Meister said today in a telephone interview. “Either we’re all smart and do nothing, or we follow suit and create a spiral that hurts us all.”

Got precious metals? Silver Bars Being Secured By HSBC – Buys $876 Million Worth From Poland

Silver Price Recovery Begins Tomorrow May 9, 2011

Just had a friend in China tell me on the phone that the rumor is that central bank of the Chinese Republic (PRC) is going to start buying heavily into physical silver - and demanding delivery - starting first thing tomorrow am. This rumor is going around financial circles in China, Shanghai and Hong Kong and it is also rumored that this will be a process that starts slowly beginning tomorrow May 9, 2011.

Parabolic rises are traditionally followed by a price drop reflecting the rise. But, traditionally we didn't have massive USD debt, money printing, QE2 (QE3 will be announced before summer) and, the big one; we didn't have a publicly announced policy by the People's Republic of China to buy precious metals.

The resurgence of silver's price could be tomorrow.... At least that's what my little birdie tells me. 

Could it be that I am being manipulated to spread disinformation? I doubt it. There are only 5,000 readers a day to this blog.... You'd think they'd go somewhere else if they wanted to spread hype.... Or maybe they are.

My personal opinion is that it is now the time to get back into the pool and start buying. If the price continues to drop, dollar cost average your price out. Silver is not going too much lower and the fundamentals (since 2008) haven't changed. 

You in the game or not?