Reasons Why This Gold Move May Be For Real


As we go to press this week, the average price for gold so far in March 2016 based on the London PM fix is $1,248.51, compared to the 20-month moving average of $1,233.64. In other words, momentum seems to be on the side of the bulls at this point in time. And we are not all that far from the 40-month moving average of $1,308.28. But don’t get too excited, because there are plenty of establishment folks out there as well as many technicians who still are not believing we have entered into a new gold bull market.

The reason for the establishment’s anti-gold bias is not hard to understand. The establishment is just like the fox guarding the chicken coop. Mainstream propaganda is designed to make you think the legalized Mafia, like money printers at the Fed, care deeply about your plight in life. Not only are we supposed to believe the Fed cares passionately about our well being, but because of their Harvard, Princeton, and Yale Ph.D. pedigrees, they are far more capable of taking care of you, you poor inferior being, than any Creator of the universe is. They sell the idea that it is inhumane to allow the democracy and collective wisdom of the free market masses to prevail. After all, we stupid inferior beings need the genetically superior Rockefeller types to ensure our safety through endless money creation. If only we stupid gold bugs could get it through our heads that there simply isn’t enough gold in the world to give us the monetary liquidity we need, and if we would only submit to their benevolent dictatorship and their construction of a one world government, with the benefit of their genius, we could indeed realize paradise on earth.

So we inferior beings have to realize that we are not capable of freedom. We need the foxes to guard the chicken coop to ensure our own safety. We must be kept inside the dollar-based monetary system for our own good. To help us understand that, we have the brilliance of the Council on Foreign Relations and other silver-tongued Ivy-leaguers to remind us day in and day out that gold is not only a barbaric relic, but that it is also destructive to the economy, unlike wonderful monetary tools like ZIRP and NIRP.

So it is to be expected. The elites will continue to tell us that gold is bad and counterfeit dollars from the Fed are good for us.

But as the fox gets hungry and starts sniffing around the chicken coop looking for his next meal, the chickens begin to cluck excitedly and start flopping around in panic. Likewise, as central banks begin looking for their next meal and start snatching money from our checking accounts with their wonderful negative interest rate policies, we the chickens are starting to flop around excitedly and buy gold rather than passively and quietly staying in our coop awaiting the clutches of the fox.

Actually I would submit that some of the foxes themselves are most likely starting to buy gold too as they can see perhaps better than any of us the handwriting on the wall. Doug Casey has likened the move into gold when panic sets to water from Niagara Falls being forced through a garden hose! There simply won’t be a way to get your hands on the yellow metal when confidence is completely lost and the fox, out of panic, goes after us for our dinner. Indeed there are reports that some very large hedge fund managers have been major buyers of gold so far this year as they peer over an economic landscape that is destined for either an economic implosion or a hyperinflationary explosion. To make sure they get their supply before the great panic hits, they are using their fox-like wisdom to keep as many of us as possible “down on the mushroom farm” as long as possible, while they secure their supply.

So my message is, as it has always been, don’t pay much attention to what most people on Fox Business, CNBC, Bloomberg, the Wall St. Journal, NY Times, or the London Times are saying about gold. Now is the time to buy it while it is still available if you have not already done so. And with regard to keeping your eyes on the markets, I would also advise you to listen to a free market anarcho-capitalist such as my friend and frequent guest on my radio show, namely, J. Michael Oliver. Not only does Michael understand the virtues of free markets, but he also is one of the best technical analysts I have ever come across.

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.