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Spread them FED curtains.. show us these wizards of USD.. if you deem it plausibly true, you should spread it. No pebble is too small to effect change. We need change, and so I toss pebbles, little me.. the deciever cannot decieve when its subjects can see past the curtains.
http://usnews.nbcnews.com/_news/2013/10/20/21024537-passing-the-buck-what-would-happen-if-greenbacks-werent-top-dollar?discussion=true&isMobile=true
..some interesting points early in the comments section.
Be wary and prepared for contradictions. If unsure, stay out. Also, if you're a noob, then for your sake stay the hell out and just watch for a while.. you've been warned. The twins will fool you and eat you alive, best for agile daytraders.
Gold-Mining Profits Fallacy
"Today gold stocks as measured by the HUI are still down an astounding 51.4% year-to-date, and 66.0% in the 25 months since the HUI’s all-time record high. Gold stocks have never been cheaper relative to gold, the metal that drives their profits and hence ultimately stock prices. The HUI now languishes at levels it first hit fully a decade ago when gold and silver were merely trading near $385 and $5.25, vastly lower than today’s prices!
Yet rather than acknowledging these simple absolute truths and agreeing gold-stock prices are far too low today, that the popular fear plaguing this sector is wildly overdone, the great majority of investors are trying to rationalize these gold-stock levels as the new norm. They lack the necessary contrarian courage to buy low, to fight their own fear. So they create and traffic in theories that attempt to justify their own bearishness.
Chief among them today is the widespread notion that gold miners can’t earn any profits. I get dozens of e-mails a week explaining to me why the gold stocks are doomed to fall much lower because they simply can’t earn sufficient money where gold is today. After having spent 14 years studying the markets full-time and trading gold stocks, the sheer popularity of this notion blows my mind. It is completely and utterly false!
Investors desperately want to believe their own fears are justified, that they are not fools for selling low or refusing to buy low. So they troll the internet until they find someone even more irrationally bearish than them, and then parrot his ideas. They can’t be bothered with investigating these theses themselves, instead they just blindly accept them as gospel truth because they are emotionally in line with their own bearish biases."
Read full article: http://www.silverdoctors.com/gold-mining-profits-fallacy/ Great read!
Some more key excerpts:
About the source: "I happen to be a Certified Public Accountant, I started my career after college auditing mining companies for an elite Big Six firm. Personally I think these massive gold-project writeoffs were not reasonable at all. Markets nearly always mean revert dramatically out of extremes, and indeed after falling 22.8% in Q2 gold rebounded 7.8% in Q3. Odds are gold will continue climbing out of that once-in-a-century fear super-storm."
On valuations:
"Now remember higher valuations mean lower earnings relative to prevailing stock prices. At the end of June 2013 after this year’s gold-stock plunge, the HUI components’ aggregate P/E ratios were merely 17.9x and 11.3x, secular-bull lows even exceeding the extremes of 2008’s hyper-fearful stock panic. If gold miners indeed couldn’t earn money today, their P/E ratios would be very high instead of exceedingly low!
In about half the feedback I get parroting these silly bearish rationalizations, the writers cite energy prices. They tell me gold mining isn’t profitable today because energy is so expensive, and gold mining is usually very energy-intensive. In late June 2013, oil was around $97 per barrel. Back in March 2008 and September 2011 at the last major HUI highs, it was near $109 and $89. Gold stocks still soared despite high oil!
There’s another key valuation metric to consider as well, dividend yields. Dividends are the acid test of earnings, companies can’t pay them unless they really are earning the necessary profits to cover them. Note above that gold-stock dividend yields (yellow) have never been higher than they were this year, surging above 3% in June as the HUI slammed into its lows. High dividends are a sign of financial strength."
Trend forecast:
"And there is no doubt gold prices will continue recovering. The extreme forces that drove the second quarter’s once-in-a-century gold plunge were unsustainable and self-limiting, they are already slowing and reversing. The wild extremes in both gold-futures long and short positions held by American traders are mean reverting, and the epic mass exodus out of the GLD gold ETF driven by the levitating US stock markets has petered out.
Gold investment demand will return even in the United States as the full magnitude of the Fed’s massive QE3 inflation campaign gradually becomes more apparent. Thanks to the Washington budget fight and Obama’s appointment of a new uber-dovish Fed chairman, QE3 is going to continue creating money out of thin air to monetize US Treasuries for many months to come. Gold will absolutely return to favor again.
Will you be ready? If you listen to the bears and their endless rationalizations of why it is smart to stay bearish at wildly-anomalous lows after extreme price declines, you probably think gold and gold stocks are going to fall forever. That’s a terrible mistake. All markets are cyclical, both prices and sentiment ebb and flow. The extreme fear plaguing precious metals can’t last, the sentiment pendulum will swing the other way."
My own honest view is that the "natural" dynamics should take it up, but the "unnatural" ones may attempt to take it down. Which will take the trend? We shall have to see..
Renewed bullish sentiment on oversold miners, some prior bears turning their sights as well..
I cannot predict, but I am preparing to bank off either direction. I am leaning towards the bullish view since it is true the the miners are oversold and technicals are supporting short-term reversal. For long-term, definitely bullish. I don't care what manner of manipulation transpires, the long-term is definitely bullish for precious metals - and I daresay that is a captain-obvious statement. Just my own opinion, I am forever a fellow student of the market and am eager for the next lesson.
“Last Friday, as gold was headed into the lows, I reported a major sovereign ‘spot purchase’ to KWN. Remember, we said it was about 90 tons (of gold) being accumulated, some of it at $1,270. You and I were literally speaking on the phone as gold was making the lows. But that sovereign order had been patiently waiting for weeks and it finally filled.
These trades fly under the radar sometimes because they are initially just a foreign exchange trade, and it’s just part of a major paper gold shuffle in London every day. But it’s only when these paper gold buyers have the audacity to turn up at a PM fix in London and demand the physical gold that alarm bells are triggered.
The bullion banks are then forced to buy at market to fill these orders, and there is no bullion bank I know that can turn up that kind of supply overnight. That’s why we saw 1 - 3 month GOFO rates spike negative once again mid-week. As these orders stood for delivery, it actually forced gold into backwardation again. And it’s going to happen each and every time the gold price is now pushed lower.
So, this is an underpinning that paper traders simply don’t understand. We are actually talking about the cash value of gold vs futures being at a premium. China is going to continue to milk this discount window. They are continuing to exchange dollar reserves for gold, without directly disrupting Treasury and gold prices. But we are now very, very close to the point where China is the gold market.
The Chinese, through Shanghai, have already absorbed the bulk of all global mine production, if not all of it in its entirety. In July alone, Shanghai gold imports exceeded all of the imports for 2012. We also know that official Shanghai gold deliveries have accelerated since that time.
Last week I reported the September numbers to you and it was over 225 tons of gold being delivered. But as of today, for the 9 delivery days of October, we already have over 101 tons of gold delivered. This is an incredibly powerful and diverse underpinning for the price of gold.
Al of this is being reflected by the premiums, recorded deliveries, and what is paid daily above synthetically diluted gold prices. The Chinese don’t care what Goldman Sachs or any other brokerage shills say about gold. Instead, they are focusing on building their savings, real wealth, according to age-old ideas, and with a state-sanctioned 20% savings rate invested in gold.”
Maguire added: “All of this paper manipulation has just been a short-term desperation move on the part of the West. Obviously we’ve seen interventions in the foreign exchange gold market, which is complimented by activity on the Comex. And basically what is being done by the Fed is a defense of the US dollar.
It simply results in physical gold flowing out from West to East at an enormous rate. Unfortunately, that is the self-destructive move that continues to take place as the West destroys itself. And when you look at China, who thinks in 500-year or 1,000-year time frames vs the West which thinks in one-week and one-day time frames, crisis-to-crisis terms, no wonder the West is collapsing.”
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/10/18_Maguire_Predicted_Gold_Surge_-_Now_Says_West_Is_Collapsing.html
Manipulated Markets Prospects: Gold, U.S. Dollar, Bonds, Equities & Interest Rates
Oct 19, 2013 - 12:16 PM GMT
By: DeepCaster_LLC
Stock-Markets
“Bank deposits are not safe which used to be safe. Money in Treasury bills is not 100 percent safe and there is inflation in the system and you would hardly get any interest.
“Bonds are not very safe anymore because eventually interest rates will go up Equities in the U.S. are relatively expensive by any valuation matrix you may use.
(The federal government is) “essentially wasting money left, right and center: Republicans on the military and the Democrats on buying votes with transfer payments and entitlements. The best you can hope for is that you have diversified your portfolio of different assets and they don’t all collapse at the same time.”
“Marc Faber: Pray All Asset Classes Don’t Collapse at the Same Time,”
John Morgan, moneynews.com, 10/15/2013
Dr. Marc Faber is the author of the Gloom, Boom and Doom report
The “Behavior” of the Price of Gold, the Ultimate Safe Haven, might seem strange lately as it had not risen despite the lead up to the recent U.S. Debt Ceiling and Budget Crises. Apparently stranger still, after the Debt Ceiling Crisis was apparently (but see below) resolved, the Gold Price shot up. Understanding why this Paper Price performance is not strange is the key to understanding the prospective performance of many markets.
Indeed, understanding the likely course and timing of these developments – a primary Focus of Deepcaster’s Alerts – is essential to Profit and Protection in the next few weeks and very few months.
“The Double Jolt of two anticipated Pro-Inflationary Developments – a “No Tapering Now” Decision by The Fed and a Debt Ceiling Raise should have been the Catalyst to launch the Gold Price, and especially the Silver Price, up, we remarked a few days ago.
But we noted “The Cartel (Note 1) will be Working Hard to Suppress (Precious Metals) Prices and Convince Investors that the Equities launch up demonstrates Economic health, and thus Gold and Silver are not needed as Safe Havens.” Remember that a Continuation of The Cartel’s Power and Wealth-generation Capacity depends on their being able to Continue suppressing Precious Metal prices.
And so The Cartel did indeed pull out all the stops to take down Gold last Friday, October 11, and succeeded. But then, the day after the apparent Crisis Resolution, The Gold Price shot up again. What gives?
First, lest any Reader have any doubt that The Cartel suppresses prices we Invite you to read the following most interesting and cogent reports courtesy of JBGJ.
“An interesting perspective on Friday’s (October 11 – Ed.) raid is Seeking Alpha’s Weekly COMEX Gold Inventories: Huge Friday Sell Order Equivalent To 70% Of Gold Registered For Delivery
“Friday's (10/11/13) huge drop in gold was essentially due to one tremendously large market sell order, which was an attempt to sell 5,000 gold futures (500,000 gold ounces or about $650 million dollars) at market price and was so large it tripped the stop logic for the exchange and caused gold to stop trading for about ten seconds. We aren't going to get into the motives behind this trade other than saying no seller trying to get a fair price for their gold would sell in such a way, so it looks to be an attempt to ignite negative momentum - which it didn't seem to do.
“But what we want to point investor attention to is that the size of this trade compared to the size of COMEX gold registered inventories, was tremendous. In fact, it represents almost 70% of gold registered for delivery and would be almost impossible to actually fill if entities asked for delivery.
“Oh! and investors shouldn't forget that this was all done in less than one minute - essentially all of the COMEX gold eligible for delivery was sold by one trader in less than one minute. If that doesn't raise an investor's eyebrows, then they really don't understand or are the ones making that sell order.”
“India starving for gold- China too? Gartman starts selling”,
John Brimelow, JBGJ, LLC, 10/14/2013
“The blatancy of the gold manipulation has escalated to what could only be described as taunting the CFTC to do anything about it. Today takes the cake (and that says a LOT considering how many cakes the cartel have taken) for in-your-face manipulation. After Goldman screams "sell", and on a Friday that statistically already has 7 standard deviation selling odds going in we watch this:
“8:42 AM: 367 Dec. contracts traded
“8:43 AM: 7,993 Dec. contracts traded
“8:44 AM: 4,860 Dec. contracts traded
“8:45 AM: 4,050 Dec. contracts traded
“While all was sublime elsewhere, and the dollar comatose, 16,903 December contracts were sold in just 3 minutes. This takedown amounted to over 2 MILLION ounces, or 62 TONS. You have to let that soak in for a few seconds to grasp the audacity. Somebody just dumped over 20 tons a minute, or one ton every 3 SECONDS.”
“What is the Objective?,” John Brimelow
JBGJ, LLC , 10/13/2013
It is unfortunately all too clear that The Cartel still has the Power to suppress Precious Metals prices. And the private for-profit Fed-led Cartel has both Profit and Strategic Motivations. Indeed, the title of a recent article has it nailed – “Gold Market Sunk to keep Bond Market Afloat.” Consider these excerpts
“Historically, government shut downs have been associated with negative financial news….
“Negative financial news has historically been a time when gold and silver prices rise due to uncertainty. Gold and silver have long been safe havens against financial calamity including falling currency values, falling bond prices and even rising interest rates, as gold and silver store wealth against borrowing costs….
“The current government shutdown comes during a time period when American debt has never been higher. The Obama administration beginning in 2008 has added more debt to the Federal balance sheet than all other Presidents, from George Washington to George H. W. Bush combined, a staggering $4.2 Trillion dollars.
“The issue of debt is not about total dollar amount, but about interest payments which must either be taxed in existence or borrowed into existence….
“The terms of the Federal Reserve Act (1913) … specified interest payments were to be made only in gold and after the gold was gone, the United States declared bankruptcy. Bankruptcy was declared on the carefully chosen date of March 9, 1933. (interesting numerology 3-9-33 or 333-333 ==666! ) After 1933, all property and all potential income of all persons born thereafter was hypothecated to the non Federal no Reserve private banking cartel but this another story.
“Interest payments are the primary benefit of banker pretended debt script, except, when the game’s gone too long. In the end, it’s interest payments which finally cause the destruction of debt script, as interest rates rise exponentially until no amount of script can satisfy the demands for more interest.
“A primary concern of banker debt script managers is interest rates; keeping rates as low as possible is of the highest priority, especially when total debt ‘crosses the Rubicon’ where interest payments on debt already created, significantly affect future interest payments as previous payments are borrowed into existence. The United States Federal Reserve has crossed the Rubicon and rising interest rates will signal the coming end of the FRN private debt based script.
“Over the past several years, it has been noted that gold and silver and platinum and palladium have exhibited price behaviors consistent with being managed prices. Prices of gold and silver, especially, have been manipulated, both to keep the purchasing power of the dollar from falling quickly and to keep prices of US bond products high, resulting in unnaturally low and stable interest rates….
“Rising Interest rates are a sign banker pretend debt script exists in far greater quantities than products to purchase in a market. …
“However, when a banker pretends debt script is being borrowed into existence to meet the demands of pure spending, with no connection to products in the market, bankers and co-conspirators must manipulate interest rates lower to prevent catastrophic rises in interest payments. …
“Gold and silver prices are being deliberately and criminally destroyed by bankers hoping to keep the financial system alive a little longer as the wealth of the economy is transferred to bankers in the form of interest payments….
“Lowering prices of gold and silver is equivalent to boosting the value of the dollar and simultaneously strengthening face value of government debt. … Destroying the price of gold and silver to maintain purchasing power of the dollar moves money from investments in gold and silver to government debt which rises in value relative to gold and silver.
“…Metal prices were frantically slammed to slow the rise in interest rates on approximately June 17, 2013.
“Slamming the price of gold helped slowed the rate of increase in the 10 year yield temporarily, preventing an interest rate crisis. Note again, after October 1st, interest rates stopped falling and started climbing, and, again, a gold smack down in prices was engineered beginning in the second week.
“The price of gold and silver are being pushed lower at great cost. In order to engineer the sell down, naked short selling and flash trading are being used, both of which are causing the depletion of physical gold and silver, …
“In the very near future, the physical shortage of gold and silver will lead to default in the commodities market exchanges (comex and other metals exchanges) creating a crisis in metals delivery and, for a short time, making gold and silver unavailable at any price.
“At the same time when gold and silver prices rise exponentially and the metals exchanges default, bond prices will fall like a rock triggering financial system destroying interests rates.
“The only protection bond holders and dollar holders have is to sell both before interest rates begin to rise. …
“Buying gold and, preferably, silver and other safe assets is the only hope to save your wealth….”
“Gold Market Sunk to Keep Bond Market Afloat,”
Jack Mullen, goldseek.com, 10/14/2013
In addition, it is most important to note that it is becoming ever more difficult for The Cartel to sustain Takedowns, as the October 17, Gold Price launch up again demonstrates.
Recall that on the Monday (10/14) after the Friday 10/11 Takedown, Gold popped right back up again, also.
And the intensifying demand for Physical (which we have documented on various occasions) makes it ever more difficult for them to sustain any Takedown. Clearly Timing is Critical, which is why Deepcaster’s Alerts give particular attention to Timing Signals.
But as the weeks, and days, pass, the likelihood of a Sustainable Great Precious Metals Launch up beginning soon, increases, mainly because of increasing demand for physical.
For example, increasing shortages of Physical are reflected in India’s “de facto ban on Gold Imports” resulting in “premiums above $100 per ounce” (JBGJ).
Jim Rickards has the Most Important Timing Signal (and there are several) Nailed
“James Rickards: Central bank manipulation of gold markets can and will last until physical shortages become so acute that banks and exchanges can no longer deliver on futures and forward contacts when requested by customers. At that point, contracts will be terminated and exchanges will order that trading be conducted "for liquidation only" which means that futures customers can close out or rollover contacts, but they cannot receive physical delivery of gold.”
“Interview of James Rickards About Central Bank Manipulation of Gold and Silver Markets,” goldbroker. Com, 10/15/2013
James G. Rickards is an American lawyer, economist, and investment banker with 35 years of experience working in capital markets on Wall Street.
Increasing Upward Pressure on Precious Metals Prices will continue because fundamentally, it is highly unlikely the Fed will begin to Taper in October or December. The Hot Fiat Printed Money (indirectly created via QE as explained below) must continue to flow in order to support Equities Prices.
The Money “Printing” via QE to which we refer is Indirect, but Real nonetheless. QE works by The Fed’s swapping Treasury Securities on Commercial Banks balance sheets for extra reserves, thus lowering borrowing costs. QE thus artificially boosts corporate earnings, thus allowing more spending – a de facto Money “printing” nonetheless. Indeed, fully 60% of American corporations’ Operating Earnings since 2009 result from lowered borrowing costs according to a study by S. Pomboy presented at the recent Big Picture Conference.
Though the underlying economy is not recovering, Corporate Earnings are, in the Aggregate, moderately positive and so long as QE keeps flowing that will keep their stock prices pumped up for a few weeks or a very few months more.
Thus it is not surprising that, Technically, we are “due” one more massive “Blow Off Top” Equities Rally. Among the Technicals supporting this view we note the cumulative NYSE Advance/Decline Line has formed an Ascending Bullish Triangle which portends “Rally” for a while more.
And Interventionally. The Cartel and other Powers-that-be have everything to gain by supporting another Rally via QE. Withdraw QE and interest rates would spike up dramatically, crashing the Markets.
Of course, that Rally and Ongoing QE will set the scene for Hyperinflation and a $US and Equities Crash some week soon. Thus Deepcaster pay particular attention to Timing in forecasting anticipated Mega-Moves resulting from this Scenario.
Regarding the prospects for Gold and Silver Prices, consider Jim Rickards further comments
“FDR: Do you anticipate an overnight ending of the manipulation or a progressive process ?
“JR: Both. The process will proceed slowly at first, then gain momentum, then reach a panic buying stage where the termination of deliveries under futures and forward contacts will be announced very suddenly. At that point, physical gold will be scarce and interested parties will not be able to acquire it in small quantities at any price.
“FDR: Is the gold/silver paper spot price still relevant to value physical gold and silver ?
“JR: It is relevant in the sense that it is still possible to acquire gold and silver at prices significantly below the implied non-deflationary price under a gold standard. This is a type of arbitrage that will be available until the world returns to a gold standard or until countries use executive orders to abolish gold trading.
“FDR: What direct consequences would a free gold/silver market have on people worldwide -- not investors, people in general ?
“JR: We have a free gold/silver market today. Anyone can buy or sell as much gold or silver as they like at market prices and exchange it freely with willing counterparties. To the extent that central banks act to depress the price of gold or silver, this acts like a gift to those interested in purchasing it at an artificially low price. If the world returned to a gold standard, the price of gold would be boring and the trading uninteresting because it would be fixed in terms of a currency and interchangeable with the currency.” (emphasis added)
Ibid.
In sum, regarding Various Markets Performance in the next few weeks and very few months, consider John Williams Excellent Analysis at Shadowstats.com
“Chances of the current federal government addressing the long-term sovereign-solvency issues of the United States are nonexistent, reflecting the agreement reached October 16th, to re-open the federal government into early-2014. In that negotiation process, the debt-ceiling leverage, which had been in place as an aid to those pushing for meaningful fiscal reform, also was suspended through February 7, 2014, but it will be reinstated thereafter. Details can be found in Section 1002 (a) “Default Protection Act of 2013,” on page 9 of H. R. 2775. A copy of the Act can be downloaded from this site: http://thomas.loc.gov/cgi-bin/query/z?c113:H.R.2775: .
“The Devil Is in the Details. While the debt ceiling remains in play, going forward, the process for handling it through February 7th has been changed. Instead of the Congress having to approve an increase in the debt ceiling, where withholding such approval had been used as negotiation leverage, for the present, the President simply announces that he is waiving the debt ceiling. If Congress objects, it has to pass legislation to reject the President’s waiver. The President can veto that legislation, where a veto override would require a two-thirds majority of both the House and the Senate. Neither the passage of an override of the waiver in both Houses, nor an override of a veto of such enacted legislation, is possible in the current political environment.
“This process expires on February 7th, when a new debt ceiling will be put in place. The new concept introduced for getting around the debt ceiling, however, as noted by one subscriber, sets an extraordinarily dangerous precedent as to gutting the political leverage provided at present to those who seriously are looking to address the government’s extreme fiscal imbalances.
“Separately, at such time as a new debt ceiling would constrain Treasury borrowings in February, consider that the Treasury, has just regained the re-funding needed to replenish its cushion to operate with extraordinary measures for a period of several months.
“Can Kicking. October 16th saw what has become almost a ceremonial kicking of the can down the road. There is no reason for the global financial markets to believe that the latest actions will be any less detrimental to U.S. financial stability or any less without meaning than the multiple similar experiences of recent years. This time, though, there is a good chance that the “What, Me Worry?” crowd in Washington finally has kicked the can off a cliff [no offense intended here for Alfred E. Neuman].
“Market Reactions. As we go to press early-afternoon (October 17th) New York time, initial reaction has been for dollar selling and gold buying. Despite whatever games the President’s Working Group on the Markets is playing, and beyond initial market volatilities, those general trends should accelerate, as the rest of the world weighs in on the ever-expanding U.S. fiscal debacle and on the intensifying dysfunctional nature of the United States government. Having run out of patience, global markets increasingly fear deteriorating U.S. sovereign solvency prospects and rapidly increasing odds of heavy U.S. dollar debasement.”
“Fiscal Crisis—Dollar Debasement,” Commentary 565,
John Williams, Shadowstats.com, 10/18/2013
Williams’ Analysis is not just “whistling Dixie” but spot-on. The $US 75 basis point Crash (as we write) on October 17, the Day after the Debt Ceiling was obliterated is a Harbinger. We can expect increasing U.S. Debt and continuing QE going forward.
But severe consequences are impending. The Credit Rating Agency Dagong of the USA’s most powerful Creditor, China, recently downgraded the USA’s Debt Rating from A to A-. And China continues to enter into bilateral currency swap deals with other countries (thus bypassing the $US and further jeopardizing its status as the World’s Reserve Currency), the most recent being with the European Central Bank!! Stay closely tuned for Protection and Profit.
Best regards,
www.deepcaster.com
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© 2013 Copyright DeepCaster LLC - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
http://www.marketoracle.co.uk/Article42753.html
Hmmm, I wonder when the next takedown is scheduled...
BAA's got plenty to mine, plenty to mine yet for many and demand here may wane but doesn't speak for the rest of the world. The factors you describe will only ramp up its value elsewhere, it'll be a long while before what you describe happens. But I appreciate your argument.
Perhaps im just talking nonsense. Maybe collapse is too strong a word, maybe it would be more like a re-examination and subsequent ammending of our ways, another lesson in our evolving history. Or maybe this portends to nothing at all and exponential debt is designed to be like a perpetual machine churning out liability in the creation of assets, and that the can was meant to be forever kicked. Maybe trillions of debt are in our future and it doesnt matter, just a bunch of silly numbers not meant to be taken seriously, more like a reference mark, just for reference and not for actual absolution. I dont know.. all I know is that more dollars in the system equates to higher prices of finitely supplied metals, period. We're not likely to taper anytime this year, and even if we do it'll be more of a gesture of principal rather than based on actual fundamentals. Maybe the fundamental numbers will be fixed in order to justify the taper. Ultimately the mean value of everything shall rise, anyone disputing that is a fool.
It would be in the US's best interest to thwart the dollar/commodities move. I certainly am not rooting against the US, being a hard-working tax-paying citizen that briefly served its military in Afghanistan. But unfortunately its financial collapse is baked in by the nature of itself. Has to be overhauled to one of much higher integrity than what it is now.. love my physical platinum, people lose their catalytic converters for it..
MACD divergence with crossover more evident in HUI.. that with bullish wedge offer contrarian signal and confirmation pending with short-term DT breached. The macro factors have been coalescing as well with tradelines established bypassing the dollar, the opening of Shanghai gold exchange, gold season etc. Also the false break below wedge created a mini inverse H/S in and of itself. Not discounting anything that the complex may do to counter and suppress the move, crooked disparity from true supply/demand dynamics.. we shall see..
ScreW both parties, crony capitalists.. FUNNY HOW THE RATIONAL IDEAS FROM CERTAIN LARGELY IGNORED INDEPENDENTS ARE JUST THAT.. LARGELY IGNORED.
Dont forget, after we printed the crap out of "notes" to cover the Revolutionary War, the backing of currency to Silver and Gold was written into the Constitution so as to prevent a recurrence of the debt-driven system, and if our forefathers were to see us today they would scorn! And to think, it was a criminal Nixon administration that removed our gold/silver backing and what do we have today???? Debt ceiling arguments?? Over $1,000,000 of liability per taxpayer now. Oh yes, these forefathers would have YANKED that administration out of power in a heartbeat! To think that their children and children's children would suffer a fate they held in fear and scorn. Your children's children will know...
ANY country appealing to back their currency with REAL money is more American than the American Ponzi. Your statement of Asians aside, it doesn't matter WHO would make such a move, only that it is understandable strategy to preserve solvency and the integrity of any currency. Chinamen that helped build some railroads were tossed off a cliff when their use was deemed concluded, chinamen helping to work the mines were slaughtered in miner's rebellions through hate and greed.. those kinds of legacies we "Americans" hide. Racisms, slaughter of natives to claim a "God given" land.. dont even get me started, im of asian, german, french, english and cherokee descent, race is vestigial at best and if it were Africa or Europe or Asia or the Americas that want to back their currency with REAL money I couldnt help but deem it only logical. Keep race out of the equation, trust is something you Earn, and the US isn't quite the poster-child of Trust now is it?
Howdy, endless banterers! Keep up the faith, good price to accumulate (or reaccumulate), added here. Thanks shortsellers, finally pierced the bollinger-band.. how much more discount we gonna get? I've got some more orders to fill...
Short-term DT Pierced.
Gold/USD
http://stks.co/tWtu
http://stks.co/tWtv
I think you're right JohnCM.
I wouldnt be surprised if it gets smacked down in counter-offensive, but only so much it suppress - can't stop this bull anymore IMO.
Angry little working man here, spreading the "faith"... yippeeee...
Fast-forward to 14:40.. yeah yeah we all know this already and little does it matter since the complex shall do as it pleases right? Fundamentals are out the window right?? Frikkin IOU's is all we hail.. we the people, we all hail... bow down to the status quo, the slaves we are.. dont mind me, just bein hopelessly rational..
Fast-forward to 14:40.. yeah yeah we all know this already and little does it matter since the complex shall do as it pleases right? Fundamentals are out the window right?? Frikkin IOU's is all we hail.. we the people, we all hail... bow down to the status quo, the slaves we are.. dont mind me, just bein hopelessly rational..
Fast-forward to 14:40.. yeah yeah we all know this already and little does it matter since the complex shall do as it pleases right? Fundamentals are out the window right?? Frikkin IOU's is all we hail.. we the people, we all hail... bow down to the status quo, the slaves we are.. dont mind me, just bein hopelessly rational..
Correct me if im wrong (and short-term volatilities aside), but we default then gold goes up, we raise the debt ceiling then gold goes up? We keep printing then gold goes up? Banksters smack down then gold goes down? I dunno anymore... I love my platinum though..
BAA been holding up since 50's even through these last few dumps.. took 57 and was surprised to see it advance through smackdowns.
"..like a trip to the dumpster." lol.. golden.
Generous wisdom in your post CB. I'm more focused on the macros involving China now over this fiasco, I think it only continues to provide justification for imminent divorce from the dollar, the world's getting tired of our instabilities. Not saying it will happen or not, just becoming more imminent.. any thoughts on this? I like this guy's chart btw.. http://stks.co/rWtb
Miners tend to lead, particularly when insiders know something... afterall the tail has more control of the dog than is given credit for..
The ongoing fight in Washington amounts to horrible marketing for Product USA. Congress and the Obama administration have handed China a megaphone as it calls for an alternative to the U.S. dollar as the world?s reserve currency. China is the single owner of U.S. government bonds, holding $1.27 trillion in June, the latest official reading.
?Instead of honoring its duties as a responsible leading power, a self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas,? said an editorial posted Monday by Xinhua, China?s official state news agency, calling also for ?a new international reserve currency that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.?
Read more here: http://www.star-telegram.com/2013/10/15/5249698/default-or-not-us-already-has.html#storylink=cpy
Nice work of Art..
http://stks.co/tWYb
I agree with those that say default or not our reputation is smeared and the global economy no longer wants to be held ransom by US dollar: http://stks.co/pWm0
China would be happy to take any of the "unwanted" gold.. to "deamericanize", as they say, the global economy. Got us by two balls, our debt and our gold... and we're busy with political soap-operas. Styooopid. Whuddo-I-know... I just watch. It's a whole new spectator sport, watchin us screw ourselves..
Im done with bullish bias, may keep at the twins but gold is anti-fundamental manipulation whore and safe haven is physical platinum imo. The complex ensures that the yellow metal is no haven to prop an increasingly worthless dollar. All about platinum for me hereforth.
I applaud this post, very well hammered points! Too much disillusionment spun left and right, all saturated bullsh!t really. Your perspective hits the bearish outlook square in the face. Banro's gotten quite undervalued considering progress made, im rooting for them regardless of price action hereforth, for now just watching, but I admit these 50's look tempting...