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Accelerating Sell Off In Commodities Shows Why Fed's Hands Are Now Tied
As Mark Fisher summarized market psychology so well earlier: "parabolic up - parabolic down." The problem for the Fed now is that to kill gold, it will also have to kill stocks, which are trading lower as gold and silver get flushed. As we presented over a month ago, gold and silver are both higher beta short hedges to stocks. As stocks go up, PMs go up more, and vice versa. Alas, silver and gold here are unsustainable for the Fed, which means Bernanke has once again managed to box himself in a corner, as any gold selloff will also presuppose a stock dump. All Bernanke can then hope is that gold does not rebound. It worked last time around... for about 5 days. Then more than caught up. This time the half life, like every repeated CB intervention, will be that much shorter.
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Well if they do dump US Treasuries that is definitely the end of the dollar. Therefore, PMs would be headed vertically up.
Go China dump those bonds - you know that they're worthless - get rid of them now and buy silver - you know it makes sense!
With the China Downgrading US Debt and this long term bond chart looking really toppy I can see why the Fed wanted to bomb gold and silver today. Fortunatley, its a gift to those who are taking an increasing long term position and trying to take delivery on physical. Don't buy on margin in this cash/money game.
http://jsmineset.com/2010/11/09/us-long-bond-chart-from-trader-dan/
All POMO now going to go into PM shorts! Watch!!
That'd be an interesting angle.
The SEC would stop them!
Look there, a blue fairy...
To kill commodities he has to kill liquidity, which kills stocks.... which seems to also mean that he has to take money out of the system instead of QE2 it into the system.
Yeah ... can't have one without the other.
It's the dollar or everything else... I don't know if any of you even watch equities anymore, I usually don't, but it would be ironic if /ES made a double top and the dollar started rallying now punishing everything else. On the other hand, why would it - POMO own's this mother. Carry on...
Nobody knows how to value gold and silver. Silver up 2, so what, what does it mean? Should you buy more on the way up? Buy to how high? Or sell to how low? That's why precious metals go parabolic up and down. Nobody know nothing.
And you thought that it was difficult to evaluate banks for their toxic assets!
Bloomberg (TV) recently reported the selling in PMs maybe related to increased margin requirements.
27.3 at this moment... There might be more to the story than just "manipulation"... someone is pushing silver down quite heavily. I wonder how much capital is needed to engineer such a move ?
Cramer says "buy" and the next day it soars and then corrects. Man is he good.
Let's be real.
JPM manipulates the silver trade.
Ben is friends with JP. They're the same cabal.
JP couldn't stand the pain of rising silver.
One phone call and Ben reverses the trend.
POG mostly flat in all the currencies the USD is bitchslapping today.
A welcome change: 'A change of fortune for Ji-Mi
Dimon's commodities-trading team, led by Blythe Masters, has suffered a big setback. Dimon complains that hundreds of millions of dollars in profit will be ...
http://www.washingtonpost.com/wp-dyn/content/article/2010/11/06/AR201011...
Damn it! I thought they were done at $1403 and bought, oh well, will buy more later. Come on you Asians! Grind them to mincemeat in time for christmas!
APMEX also ran out of 2010 Silver Eagle monster boxes today, while I was trying to order one.
Impressive fight back here. Come on you fuckers bring it on!!
Haha some of the comments make me laugh.
How can you possibly wonder gold is down if the USD is owning every single major pair out there!!
It's the psychology that matters.
Even papers in Europe were reporting on the increased price for gold in USD.
Timing is very suspect. Ahead of G20 meeting, following Zoellick's comments re gold standard etc.
The manipulation is obvious. These are not holders of big positions selling into the open market at anything above $1400 / oz. They're not in the driver seat of this price drop.
Anyway, whatever. Let it go down or up.. the paper funny money days are counted and getting the physical is more and more difficult.
Everything the central banksters do involves printing more money these days--devaluing their currency. So the USD is up because other countries printed even more confetti. Did they print more gold or silver? Or more money that will need to be converted before it's worthless?
I just can't wait to see the opening of market tomorrow.
This move is way overdone with way too much optimism on this asset class. The prices have just gone too far too fast. They are overdue for a correction.
Great buying opportunities are witnessed when everyone on this forum starts stating conspiracy theories about how Gold and Silver are suppressed by JPMs of this world. Total non sense.
In the same time, great selling opportunities are also the opposite of that. And if read every second post or topic here, you will even notice who S&P 500 prices are now quoted in Gold. It is time for a correction. You guys always take it a little too far, just like with Euro in May and US Dollar in October!
Great link on the Gold & Silver topic - http://theshortsideoflong.blogspot.com/2010/11/precious-metals-exuberanc...
I do not see anyone here talking about depressed assets like Natural Gas or Cocoa, which are good buying opportunities. They are not popular enough as they haven't been making new records which are usually published on front pages of newspapers and websites. That is why flies (newbs on this forum) are always all over shit (gold). Another way of saying it is that bulls never chase bears!