WARNING: ‘Fake’ Rally in Precious Metals Nearing The End?

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Editor’s Note: with silver LEADING gold higher now, which was a major sticking point Jeff Nielson hit on previously when gold was leading the way, we’d like to read an article from Jeff about how the SGE gold fix implemented on April 19th combined with the collapse of the City of London electronic silver fix (and Deutsche Bank silver and gold price rigging admissions) potentially add up to a “real” rally! Just sayin’. ~ The Phaser

by Jeff Nielson, The

Roughly 2 1/2 months ago, I began warning readers that the current “rally” in gold and silver markets was a FAKE RALLY.

One reason for my cynical reaction was to simply look at who was (suddenly) pumping these markets. It was the same mainstream hacks who have been relentlessly bashing gold and silver for the past 5 years, and in some cases (like Dennis Gartman) for much longer than that. Suspicious, to put it mildly. However, my more important reason for concluding that this is a fake-rally was to simply consider the banking Crime Syndicates “script” for our markets. The basic Script is an eight-year, bubble-and-crash cycle — a cycle which is obviously nearing an end.

Would this Crime Syndicate ever allow gold and silver to rally while (all) other markets were being crashed? Impossible. Rising precious metals prices are one of the most-serious threats to the viability of the Crime Syndicate, which is why they have maintained a choke-hold on these markets for 5+ years.

Nothing has changed which would cause the Crime Syndicate to lose that choke-hold. Thus the only reason the “rally” would be allowed to happen is to better set-up gold and silver markets for the Crash. It’s hard to “crash” markets which are already at rock-bottom levels.

I observed that one reason we knew it was a fake-rally was because the silver market was not “leading the way”. I pointed out that this anomaly was due to the banksters’ much greater fear of the silver market — since the price of silver has been perverted to an even more-insane level since 2011.

I then added these observations a few weeks ago:

The silver market is much harder to prognosticate, because as I have often explained over the years, it is the ‘more dangerous’ market to the banksters, for all sorts of reasons. One of these reasons is that (as we know) silver is even radically undervalued in comparison to gold. Historically, the two metals have always been EQUALLY PREFERRED (in proportionate terms).The supply ratio of silver to gold (in the Earth’s crust) is 17:1. The long-term price ratio is 15:1. There is a very slight preference for silver (in relative terms) because silver is the People’s Metal. Today, if we estimate above-ground stockpiles of silver versus gold at 6:1 (because of all the silver that has been “consumed”), then this implies that the current, suppressed price for silver should be just over $200/oz. I’ve already explained to readers (in the past) how/why I think a real fair-market price for silver (today) should be roughly $1,000/oz.

$1,000/oz For Silver (Today): A Starting Point

This means that the silver market could literally explode higher, totally beyond even the banksters’ control, if it ever got too much momentum. Thus what we will see is that silver will be held back in this fake-rally, until probably just a week or two before the precious metals markets will be crashed. This way the price of silver can still get high enough to slam it down hard, but there won’t be any time for any “big move” into the market by buyers/traders.

…and what have we been seeing for the past week or two? The mainstream media is only too-happy to point it out:

Gold/Silver Ratio Falls To 74; Silver Outperforming Gold

What a surprise! Who could have “predicted” this (even though the price of silver MUST outperform gold in any real rally)? The question then becomes: are we going to see precious metals markets crash tomorrow? Next week? Next month?

My prognosticating here has been based upon the premise that “the Next Crash” will have an economic impetus as its official “cause”. That is the whole point of scripting eight-year cycles. It matches the U.S. election cycle.

The Crash is staged near the end of the eight-year reign of 1/2 of the Two-Party Dictatorship, so that the incumbent party can be fingered as the Scapegoat, and the previously reviled “opposition” can be hailed as the White Knight riding in to “save the day.” It is a Script utterly juvenile in its simplicity. But with the banksters having already perpetrated this Cycle twice previously, why not a third time?

In that scenario, a crash-window some time between April and June would be optimal, thus we could see the Next Crash at any time. However, there is another alternative here — a much worse alternative. The only reason the banksters would deviate (at all) from their previous Script is if they were going to “crash” our markets due not to some supposed economic event, but rather in reaction to an EXOGENOUS EVENT.

Here, unfortunately, we can be much more specific. If the crash is not attributed to some economic cause, then it will be triggered via some (horrific) geopolitical cause: either a new, major war, or another “terrorist” false-flag event, on a scale similar to, if not greater than the 9/11 false-flag event…and then a major war.

The Rise of the Fourth Reich, Part I
The Rise of the Fourth Reich, Part II
The Rise of the Fourth Reich, Part III

If we see gold and silver prices ‘suddenly’ crash in the next, few days or weeks, that is cause for concern. If we don’t see this fake-rally come to an end within that time-frame, that is cause to be very, very afraid.


Jeff Nielson is a writer and precious metals market researcher who contributes regularly to The Phaser, SGT Report and Sprott Money. You can find him daily at his own website Bullion Bulls Canada.