Gold’s 50-Dollar Sunday Night Collapse Explained – Ep. 97

* Today's Podcast is entirely devoted to gold and gold stocks

* Last night, in just a few minutes, gold dropped $50

* One or more major sell orders hit the market at the same time and gold went down below $1100

* It was down $20 by the time New York trading opened and by market close gold was down around $37 on the day

* Silver was down only about .15 today

* Why was all that gold dumped? The goal could not have been to get a good price - the goal was to knock the price down

* The HUI was down 10% on the day

* This bear market in gold stocks is now bigger than the one from 1996 to 2000

* Gold stocks are much cheaper today than they were at the end of the dot com bubble

* If this a measure of trust in central bankers, the market is expressing greater confidence in Janet Yellen than it did in Alan Greenspan in 1999-2000,

* We know how badly that turned out for stocks and how bullish it turned out for gold

* The timing of this selloff comes on the heels of the media's spin on Janet Yellen's recent Congressional testimony

* But the real news that ignited the sell-off was China's admission that they have gold reserves and in fact they intend to add to those reserves, surprising the market

* If China was lying about how much gold they have had for the last six years, why does anyone believe they are telling the truth now?

* I think they are still lying - being strategic

* They want to get the price of gold down because they still want to buy a lot more gold

* If China still needs more gold, eventually this will bring the price of gold up

* Also a very negative WSJ article compared gold to the "pet rock" craze

* This is the same nonsense that proliferated in the 1990's

* The WSJ article describes gold investment as "a leap of faith" relative to dollar or stock investments

* Gold should not be compared to stocks - it is currency, a commodity

* Gold has intrinsic value, whereas the dollar is a fiat currency, backed by faith alone

* Gold has had value for 5,000 years - you don't need ot have faith, you just own it

* There will always be a use for gold

* Why have faith in central bankers when everybody who has put their faith in central bankers in the past has been burned

* An article on Zero Hedge compared the WSJ op-ed to a similar one from 1999

* The title was, "Who Needs Gold, When You Have Alan Greenspan?"

* They called him "the maestro"

* He gave us the dot com bubble, the real estate bubble and the financial crisis of 2008

* That's what happened to the people who put their faith in Alan Greenspan

* Over the next 12 years after that article was written, gold appreciated 650%

* Who needs gold when you have Alan Greenspan? Everybody

* Today Alan Greenspan recommends gold

* If we've got Janet Yellen, then we need gold

* Greenspan wrote the playbook that Bernanke and Yellen are expanding and he knows it does not work

* When you have Janet Yellen, you need all the gold you can get

* Fortunately, it's a lot cheaper to buy gold and it is a lot cheaper to buy the companies that mine it

* What could go wrong? Everything - what went wrong in 1999 and in 2008?

* The same thing that went wrong then will go wrong now, because it is the same central bankers

* And the same players on Wall Street either don't recognize the danger or are pretending it doesn't exist and abandoning everything we know about monetary policy

* This is the biggest bubble yet - the entire economy is dependent on bubbles

* Just when people trust the central bankers the most, that's the best time to buy gold

* When this market turns it's going to be vicious

* Once the market turns,

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