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Gold Stairs. A friend on every step!

Stewart Thomson
email: s2p3t4@sympatico.ca
Apr 16, 2009

1. Some of the gold market oldtimers may remember 1979. Russia going into Afghanistan. The Dow below its highs of 1966.

2. And Gold. Gold was here to stay.

3. People lined up in the streets to buy gold. And then, we all know what happened next, right? 20 years of pain the gold market. A few blips of hope here and there. Each rally failing away.

4. Many of even the best in the community were demoralized by the bear market. Looking back, it's just a 20 year blur, a sort of dull pain that is mostly faded away.

5. That is one reality of the 1980-2000 period. Here's the other: A 20 year non-stop party for the bankers. No, I'm not talking about their short positions or writing call options or selling hedges to mines.

6. I'm talking about being LONG gold. Placing bets it would rise. Not one or two. Millions of bets. A 20 year party of buying and selling gold for mega profits.

7. I often talk to subscribers about the two faces of the bankers. Most in the gold community know a fair bit about the dark side. Where the bankers dump OTC derivatives by the trillion onto the taxpayers. Where earnings are created by accounting changes, not sales of product. Payoffs to govt officials, kickbacks, theft of client funds. The list goes on, and on, and on.

8. I agree with most of these points made by various gold writers about the dark side of the bankers. Just when we all think the banksters' behaviour can't sink any lower, they show us all a new level of immorality, a new sick and twisted game. When I read some of the postings, I keep saying "nothing can surprise me now", but sure enough, a new shop of horrors is presented that once again shocks the unshockable. And this is occurring on a near-weekly basis!

9. There's another side to the bankers that many in the gold community don't understand. And that's what I want to talk about today. And it's critical to be able to make this separation of the two faces. Failure to understand their other face likely means you could eventually lose a huge amount of your investment money. I'm talking about their ability to trade gold. Which starts with their understanding that gold bullion is the lowest risk investment in the world.

10. Through the efforts of several writers in the gold community, it's becoming clear that the bankers are moving close to $100 billion a day of gold through the LBMA system, with most of it likely unreported. That's more gold traded every day that the NYSE trades stock. Think about it.

11. Gold is liquid. Gold is safe. Gold is yours to buy and sell without the same massive fear that the item will go off the board to zero.

12. What I'm doing for my subscribers is posting a massive report on my website, detailing all the action in the gold market from 1980-1999. I'm detailing the movement of every intermediate move that occurred during that 20 year span of time.

13. The reason I'm doing this is because I sense the beginnings of a feeling of complacency beginning to envelop the gold community. With most players either in denial or going into a sort of cocoon.

14. I've seen that feeling before and I've never seen any good come out of it. Once an investor loses confidence, the negativity begins to snowball, and selling is the inevitable result. Selling at losses. Drip, drip, drip, out go the gold stocks, one bailed share at a time.

15. When you tie your gold investments to the failure of the Dow, to the failure of the US dollar, to the failure of the govt T-bond market, even to the OTC derivatives nightmare, you can become a slave to the action of those markets. A slave to the pictures of those markets that are painted by the bankster artists on the huge media canvass.

16. Your "gold life" becomes one of "if abc happens, then gold must go higher". "If def happens, then gold must go higher". You begin to depend on external events to cause gold to rise.

17. Think of the word "pure". When I think about gold, I don't think too much about the US dollar, which is what 99% of gold investors focus on. Many big players in the gold market talk about "the view". Having a big picture view of the world scene to gauge the prospects for higher gold prices.

18. I don't focus on mine production, supply and demand numbers.

19. I focus on the word "pure". Pure Gold. Another word that comes to mind is: Pristine.

20. Gold is pure and pristine. The US dollar, in my view, is some fly buzzing around me. Pakistan is too. Read on and I'll explain why I have that perception. It is a false perception, but it is one necessary to make money in gold. Most of you would be horrified if the US dollar began a rise to say, 150 on the index. I don't care if the US dollar goes to 200,000 on the index or if it goes to 2. The US dollar is a fly above my gold lake. And so is Pakistan. And so are the OTC derivatives. When it comes to buying and selling gold, I turn all of these "drivers" into flies.

21. What I care about is pure gold. Gold is not going off the board, no matter what all the other flies and contaminants do around the outside of my pure gold world.

22. I buy and sell the gold price and nothing else. The Gold Price is everything to me. It is the be-all and end-all of making money in the market. The gold market is the world's safest market, and when the price of that pure market goes down, I buy. When it rises, I sell.

23. The bankers know what I know, and know it 10,000 times better. Which is why they placed millions and millions of buy and sell orders for gold from 1980-2000, buying and selling gold for huge profits, 20 years of success. The banksters are monsters. They are also the greatest gold investors in the world.

24. Those who say that you need a bull market in gold to make money on the long side of gold are Dead Wrong.

25. Gold is timeless. No crisis is timeless. Over history, all of the great crises of the world are simply flies buzzing around the pure gold form. The collapse of Rome, Hitler, OTC derivatives, famine, communism; all are drivers of the gold price. All are temporary. For thousands of years there have been reasons given by billions of analysts and investors as to why gold should be bought or sold. As big as these events have been and will continue to be, they all are tiny flies compared to that which is: gold bullion. In the end, there is only the gold price. To the banker, there is only one reason to buy gold: The price has declined. When the price declines you also must buy. When the price rises, they sell. You also must sell. Build an inner core position that is never sold.

26. You have been, and will continue to be, tricked by the drivers of the gold price. You will never be tricked by the price of gold itself. It is pure truth. All the rest of the drivers of price may have the noise of a freight train, but they are all still noise.

27. The price of gold is about 900. That is 900 steps in price. The OTC derivatives issue is no friend of gold. Nor was Hitler. Where an issue is a positive or negative driver of the gold price, none are your friend. You have 900 friends. Your friends are the 900 steps in the gold price. Focus on your friends. They are all there for you. With 100% loyalty.

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Apr 16, 2009
Stewart Thomson
Graceland Updates
website: www.gracelandupdates.com
email for questions: stewart@gracelandupdates.com
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Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am. The newsletter is attractively priced and the format is a unique numbered point form; giving clarity to each point and saving valuable reading time.

Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualifed investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

Are You Prepared?

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