In the past we have seen the cabal just doing their thing, perverting the markets and lining their pockets at our expense. We turn to the precious metals as a symbol and an artifact of honesty in a dishonest world. All the while we are forced to tolerate the corruption while searching for honesty. The boyz did their thing with such dominance that they were never successfully opposed.

The boyz were successful because they were the biggest army with the biggest weapons and could define the rules of engagement. They could always force investors to back down and give the investors a black eye or bloody nose if they didn’t. The army would lure their opposition into a trap and then slaughter those that did not retreat fast enough. Like the armies of old, the boyz rape and pillage as they dominate the landscape. Precious metal stocks are the prime example of causalities of their war on precious metals and free markets.

The last few months we have seen a significant change. Before we suffered the manipulation of politically connected big money interests waging war against the whole financial world. They allowed the metals to rise in a controlled fashion while taking profits from the action at every turn. The rest of the world’s financial entities never directly opposed the activities of the boyz in the market. Rather they simply recognize the patterns and either bailed at certain times when they were about to get crushed or they trailed the boyz mimicking their moves in order to pick up crumbs.

Now what we see is that the opposition has been joined by forces that are as strong as the boyz. More than a test of wills, it is a high stakes financial war. The new players have immense resources and are motivated by value more than fiat and want power so that they can shape the way the game is played. They chose not to play the game of the new jerk/dc mafia the same old way by the same rules.

Well, as has happened repeatedly in the past, that arrogant old power has found its match. The new army has as much power, has mobility, has commitment, has smart leadership, and has long term goals. The new army wants to change the rules of engagement and then dominate future battles.

The new player has the financial resources to oppose the boyz and win. The boyz have put themselves in a corner and cannot just walk away. Either because of pride or stupidity they will continue to fight. When they lose the war, if they cannot control the rise in the price of gold and silver, they lose everything. The new new army is probably a group of interests that are tired of being pushed around. Tired of playing in a rigged game. Tired of the arrogant dominance of the boyz.

The most likely general of the new army is China. China now has a dominant financial army based on a more solid foundation than fiat. The new army builds “things” where the boyz fold paper into contracts (derivatives and other financial foolery).
Today we see the boyz trying their old game of intimidation to squash the price of the metals. It always worked because the boyz were always the bigger force with the most resources in a rigged game. The game was always worked because no one had the resources to oppose them. That has now changed. The new army lets them start their game moving the price of the metals down and then does the obvious thing. They buy at the lower price. In the past the boyz would just keep piling on the paper, but the new army can play the other side of that game with equal or even greater resources.

The new army doesn’t want to just destroy the old army. They want to bleed them of their resources. When the boyz have transfered all their resources (gold and silver) to the new army, the war will have ended. At that time gold and silver will be freed of the manipulation of the past decades. It is not to the advantage of the new army to just kill the boyz off in one big battle. Rather they want to drain them of their current stash of gold and silver and to capture as much of the flow of metals from production as possible. China is already the worlds largest gold and rare earth producer. They are scouring the world to lock up many forms of commodities; precious metals, base metals, oil, timber etc.

The world has changed and those who do not see it will not be well prepared to survive the transition to the new state of things. The gold bugs of today will be one group that has a better chance to survive. Holders of physical metal and fundamentally sound pm stocks will keep a good portion of their wealth after the world has been rid of the false wealth of bankers fiat and derivatives.