As we see gold and silver prices plunge lower (again) today; it becomes an especially good idea to step back, and look at the Big Picture of these markets. Why? Because nothing happened today.

What is the official propaganda today from the Corporate Media on why precious metals prices have fallen?

Federal Reserve Chairman Ben S. Bernanke said stimulus may be reduced later this year as the economy recovers.

The problem here? B.S. Bernanke (aka “The Boy Who Cried Exit Strategy”) has been saying this every day for 4 ½ years. There was literally not one word that was new. It could have all been copied-and-pasted from one of his 2009 scripts. Simply calling this “news” is a perversion in and of itself. So nothing happened today in bullion markets.

With today’s price-action having no connection with the real world, and with any Bernanke “prediction” of an Exit Strategy having no connection with sanity; it behooves us to look at the actual supply/demand dynamics for bullion markets – something never attempted by the Corporate Media itself.

Here we see yet another fundamental contradiction by the “bears” of the propaganda machine. While we have these Chicken Littles relentlessly making absurd price-predictions for the gold market; these bashers are simultaneously spreading at least as much doom-and-gloom on their “predictions” for the mining companies which supply these metals.

Herein lies the contradiction. You can’t (rationally) be “bearish” on both the price of gold and the supply of gold. If one is low; this implies the other will be higher. More emphatically; you can’t be bearish on both the price and supply of gold at a time when there is already a 1,500+ ton per year supply deficit in this market.

Let me explain the mechanics here, for any/all readers to whom this is not obvious. Let’s start with plummeting prices; precisely what the Banksters have manufactured in bullion markets today. What is the consequence of these lower prices?

To get that answer, we need only refer to the propaganda from Basher Central; more commonly known as Kitco:...

 

Read the rest:

 

Gold Bears Ignore Supply Contradictions