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Does A Surging Gold Price Mean The Fed Will Be Forced To Sell Treasurys?
As part of GATA's ongoing crusade against the Fed's gold price manipulation efforts, the organization recently succeeded in extracting some novel clues on how and why the Fed views its sworn duty as keeping the price of gold low. While much of the requested documents demanded by GATA in a lawsuit with the Fed have been exempt from disclosure under the law, one that was made public consists of the minutes of a private meeting of the G-10 Gold and Foreign Exchange Committee in April 1997. And while we will leave it up to our readers to parse through the bulk of the comments (attached below), we would like to draw attention to one, attributed to Peter R. Fisher, head of open market operations and foreign exchange trading for the Federal Reserve Bank of New York, or in other words the equivalent of our very own Brian Sack. Fisher's comment relates to what would happen to the Fed's securities portfolio should there be a sudden or gradual revaluation in the price of gold. His conclusion is that in order to keep the Fed's balance sheet stable, an (acknowledged) surge in the price of gold would lead to a forced selling in Treasurys. Of course, that would mean that the Fed would have to actually value gold at its actual market price, instead of that relic price of $42.22 per ounce. Which means that valuing gold at fair market value would result in dumping over $300 billion in Treasurys, something the Fed can not afford to do at a time when it is engaged in purchasing $100+ billion each month.
To wit:
Fisher explained that U.S. gold belongs to the Treasury. However, the Treasury had issued gold certificates to the Reserve Banks, and so gold (by these means) also appears on the Federal Reserve balance sheet. If there were to be a revaluation of gold, the certificates would also be revalued upwards; however [to prevent the Fed's balance sheet from expanding] this would lead to sales of government securities. So the net benefit to Treasury would need to be carefully calculated, since sales of government securities would expand the public portfolio of government securities and hence also expand the Treasury's debt servicing burden.
To an extent we agree with GATA's summary of the implication of this statement: "This seems to be as candid an acknowledgement as any of the U.S.
government's profound interest in suppressing the price of gold." Yes and no. While this is in fact indicative of the Fed's desire to keep gold price low, it is the case in a world in which the Fed were to see gold as priced at $1,390/ounce. Not at the fake price of $42.22/ounce (perhaps the Fed can sell us some gold at that price?)
Now keep in mind that the Fed discloses the value of its gold stock as $11.041 billion in each weekly H.4.1. If the Fed were to value gold at FMV, the asset side of the Fed's balance sheet would suddenly balloon by just over $350 billion, as the fair value of the 8,133.5 tonnes of gold allegedly in possession by the US is valued at $361.8 billion. Which of course also means that to account for the surge in paper assets by $350 billion, the Fed would either have to sell a like amount of Treasurys or increase the liabilities side of its balance sheet, by either increasing the Currency in circulation or the Excess bank reserves by a like amount, a result which would increase inflationary expectations by a massive percentage. Both are obviously outcomes that the Fed will fight to the death to avoid.
As for the question of how much of this unauditable gold tonnage is actually there, that's a different matter entirely.
So yes, thank you JP Morgan for continuing your sworn duty of doing all you have to do, to maintain the Fed's 4th mandate of suppressing the price of gold, and preserving the myth that there is no inflation in the US. The people of this truly great and democratic nation applaud your efforts.
Full declassified disclosure released to GATA - link.
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What exactly has stopped the Fed from expending its balance sheet all it wanted over the last some-odd years?
Exactly, when the **it hits the fan and the FED is forced reimplement some form of the gold standard to stablize the greenback, it will have to simply "print-to-cover" outstanding debts first and then revalue at that expanded money supply.
If they reimplement the gold standard at anything less, then once implemented the gov will not be able to service current debts since they won't be able to continuously expand debt/money as currently done to support the system.
What if the point was to force a shit hit of the fan? - http://www.youtube.com/watch?v=Lwkpr8D-Fjc&feature=feedbul
I'm just putting it out there. I am reserving my judgement on this, but feel good about the direction of the world as a whole.
BIx Weir and the guy who interviews him are idiots. They believe oil is Abiotic. They have a laugh and wonder how all the oil could come from sooo many dinosaurs @ 3:45 in the third video on youtube.
http://www.youtube.com/watch?v=XBF8frSUXUA
The guy has an interesting theory, but how can I take him seriously now when he spouts off utter nonsense like Abiotic Oil? Credibility to Zero in 2 words....
Bix also believes that the world central banking cartel is secretly planning a move to gold-backed currency, led by the BIS and the US Federal Reserve, and have been telegraphing those intentions via a series of children's comic books published by the Boston Fed. Hmmmmm ...
http://en.wikipedia.org/wiki/Thomas_Gold
www.amazon.com/Deep-Hot-Biosphere-Fossil-Fuels/dp/0387952535
The book has a foreward by Nobel winner Freeman Dyson.
So, better men than you don't think it's utter nonsense.
In summary the Eccles Building is a financial whorehouse of which bankers partake of Bernanke's ill repute on a daily basis.
In summary the Eccles Building is a financial whorehouse of which bankers partake of Bernanke's ill repute on a daily basis.
Benny boy loves it.
"Fisher explained that U.S. gold belongs to the Treasury. However, the Treasury had issued gold certificates to the Reserve Banks, and so gold (by these means) also appears on the Federal Reserve balance sheet."
so the feds so-called gold is not actual gold, its "certificates"
"[to prevent the Fed's balance sheet from expanding]"
so? does Ben care about an expanding balance sheet
Yea and it appears on the IMF balance sheet where it is re-lent to the BIS that re-lends it to JPM......
Ask the corollary question - would a falling gold price require the Fed to buy Treasuries?? There is no environment where the FED hasn't bought Treasuries is the correct answer.
Thanks, I was puzzling over that.
Ok, I get it, OUR GOLD is also now JUST paper.
That means the real shit is long gone.
I believe you are right, they have taken it for managing the bankruptcy since 1913. 6% for how many years, and paid in what @42? who really knows, so many secrets at the fedres.
The gold is probably in Rothschilds' private vault now!
How about if our Federal Reserve Notes are worthless, so are their certificates?
That's an interesting dilemma, what if they have been paid in the 8200 tons of gold and actually possess it on their balance sheet instead of the treasury? Then the question would be, why would that be part of the balance instead of the payment to they, for governing the bankruptcy. What if the gold is theirs to hold separately and it is gone, like some other, um, so called protectors of the people lately?
.
The dollar xau correlation is broken. Selling treasuries is buying dollars. Gold will still move anyways.
The rising price of gold tells you there's a lot of people (including governments) that want insurance against sovereign debt defaults. Every day gold goes up, it puts another chink in Bernanke's armor. Gold price acts as the inverse of the Bernanke Approval Index (let's call it the BAI). I'll let you decide which of these is in a bull market. http://therookiecynic.wordpress.com/2010/09/30/gold-vs-stocks-the-past-5... P.S. My money ain't on Bernanke, for financial and moral reasons.
$300 billion sale? big deal... Ben does that for breakfast....
My sentiments exactly.
But if ANY opther country had 8100 Tons of gold, you can bet your ass it would be floating at mkt prices.
Surround the Fed with tanks and seize all its assets as a partial settlement of the 100 years criminal activity. Maybe wait until it has acquired 75% of the UST paper--after seizing that, cancel it.
What assets? The Fed has only promises from the US treasury.
Fed paper is only as good as Treasury paper.
I'm trying to understand. So what the Treasury owes others will expand in fiat value? And so they will need to sell more to have the proper reserves to reflect their "real" debt? Why not buy back the certificates and not issue more?
I apologize for being dense.
The rest of the document looks like they are trying to keep the prices up, not down. It seems Fischer is being kind of cherry picked here by GATA, though he is speaking for US policy not the other countries.
Help?
Ok I will make this short and sweet.Please quit mentioning Fiat. (all major national currencies are considered Fiat) Treasuries issue debt. Those treasuries are payed for in the issuing currency. Yields in the treasury are based on demand, and time to maturity. When demand drops the coupon or face value of the treasury drops, and causes the yield or interst rates on the treasury to rise. These yields are reflected in basis points. When yields rise the dollar tends to appreciate. Treasury yields rise to keep interest in the market for treasuries vs equities and currencies. This is rudimentary. Just remember, that high intererest rates are bad for the treasuries you are holding, and not the ones you are going to buy. The coupon value drops. (face value of the note) We can do yield curves later.
So what the Treasury owes others will expand in fiat value?
No, Treasuries on the Fed balance sheet pay interest to the Fed which is remitted back to Treasury. Selling Treasuries will put them in the hands of owners who don't remit their interest income to the Treasury. Thus it increases the debt burden.
They have to convert through the issuing currency.
Likewise. Can someone dumb this down for us low-finance people?
Sure. Where will you place the trust of your savings? Bank's financial scrip or gold (PMs)? Financial wizards boiling the cauldron behind closed doors, ask you to trust that they have the brew mixed in the right proportions. What makes them experts? Their degrees in obfuscation?
Ben's anthem.
http://www.youtube.com/watch?v=4R6nmKjcSeU
RANTING ANDY: THE LAST SILVER MARGIN CALL (that mattered)
Each day, I am more and more amazed by not only the fraud and corruption in financial markets (and everything else, for that matter), but the apathy about such as America rapidly spins around the bottom of the toilet bowl.
As a veteran (tick-for-tick) watcher of the Precious Metals manipulation- I mean market- for the past decade, I have watched every dirty trick imaginable, legal and illegal, utilized to attack these cornerstones of the global monetary system.
The end, of course, being for Washington/Wall Street and their analogues overseas to retain power while stealing from the masses.
One of their favorite tools has been to raise margin requirements at the CRIMEX- sorry COMEX- every time gold and silver start to break out. This petty slight of hand, always pulled after markets were closed, was combined with a healthy dose of naked paper contract shorting to create a paper selloff and drive the prices down.
And it always worked.
In fact, in early November they had the gall to pull such a raid MIDDAY, just as silver was passing $30.50/oz and getting ready to explode, creating a nearly $5.00/oz. intraday plummet.
In the old days, such an event would trigger a 1-2 month liquidation, and more Cartel victories. However, that drop was quickly recouped, with silver hitting new highs in December. Since that time, two other margin increases were attempted by the CRIMEX overlords on gold/silver, but this time they were done when gold/silver were FALLING instead of RISING as in the past; such was their desperation to create a big sell-off.
Those attempts miserably failed, including the January engineered sell-off in silver/gold that has already been recouped in silver (new 30-year high yesterday) and nearly so in gold.
But each time these margin increases occurred, they were heavily reported across the globe, by good guys such as GATA and bad guys such as Kitco whom are desperate for PM’s to fall.
But what really shocked me was that ANOTHER INTRADAY 50% margin increase was instituted YESTERDAY for both gold and silver (and many other commodities), but not only did gold and silver not go down, they didn’t even flinch, with silver in particular soaring to 30-year record levels.
And not only that, I didn’t see one piece of reporting of it, even by GATA!
In other words, the Cartel’s ammunition tray is so bare that events like this, which even three months ago still could make waves, aren’t even worth the time of day.
Another would be the level of the dollar/Euro forex rate, for years incorrectly interpreted as meaningful to PMs and finally recognized as IRRELEVANT.
The Gold Cartel is on its last legs, the victim of massive physical buying around the world that will not stop, EVER, or at least until the world returns to a REAL gold/silver standard!
http://www.lemetropolecafe.com/index.cfm
not only did gold and silver not go down, they didn’t even flinch, with silver in particular soaring to 30-year record levels.
The guys behind the talking bears, Wynter B or whoever, understand the game they are playing -- for them to get 30% or whatever premiums offered to settle in cash they have to have cash ready to take delivery!!! Otherwise their bluff gets called by Comex/JPM. If you are fully cash backed, margin is irrelevant.
Jim Willie spoke of COMEX "hitmen" months ago, I wonder if he didn't have an inkling of events just a bit early.
Jim Willie had "inklings" of COMEX "hitmen" years ago and got himself the fuck out of the USSA years ago.
He is a lot less paranoid now about his personal safety, but don't be surprised to read of his untimely demise.
Bill Murphy was cold-cocked by black-suited thugs with brass knuckles right after he started up GATA over ten years ago.
These mafia fuckers play serious.
DP...Excellent post and a valid question. 'Why was the margin increase not reported?'
I believe had the margin increase had any slight effect on PM prices, especially pushing the front month down, it would have been reported loudly by the MSM. Small paper players were hurt but the big guys standing for delivery were not.
The fact is that big numbers of long positions in PMs are standing for delivery and the bankers are caught on the short side of a trade that is going to cost them billions of dollars...many billions of dollars.
Turd Furguson, Harvey Organ, Jesse, ZH, and others have covered this story very well... hats off to them.
So, the story is not the margin increase. The story is that the margin increase got steam rolled by longs standing for delivery. I'm sure you have read recent reports from London bullion dealers that use a string of adjectives to describe the quantity of PM orders streaming in from the Mid East, India, and SE Asia... That is the story. Another story is that a lot of big buyers are purchasing ETFs and taking physical delivery of PMs... maybe that is the only way they can fill their large orders... maybe it is a way to purchase large amounts of physical without driving the prices up immediately.
Here is a portion of what Harvey Organ had to say...
"The comment and analysis below is from Harvey Organ's most recent commentary.
This is in a market of only 14 billion dollars. It begs the question to what economic need was this done.This is still off balance sheet.
If you include only the forwards or swaps (the lending of actual metal to which nothing has come back yet) then the losses are:
Regardless how you look at it, the bankers are in serious trouble with this huge rise in silver prices. I hope you understand the severity of the situation."
http://jessescrossroadscafe.blogspot.com/2011/02/silver-bankers-sitting-on-big.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+JessesCafeAmericain+%28Jesse%27s+Café+Américain%29&utm_content=Google+Reader
Turd's site...
http://www.tfmetalsreport.blogspot.com/
Harvey Organ's site
http://harveyorgan.blogspot.com/
Trader Dan had some comments on this topic yesterday:
I wish to clear up a misconception floating around that the CME has hiked margin requirements on the main silver contract. It has not. Margins were raised on silver intramarket spreads, not the main 5,000 ounce silver contract.
Margin requirments for the full sized, 5,000 ounce contract remain the same as last month (Jan 20) when they were raised to $11,138 from $10,463 for initial margin.
http://www.traderdannorcini.blogspot.com/
What we really need to see is no margin at all. You want to fuck with my wealth then pay up or fuck off.
NO Margin in any market....Ever.
No more god damn fake plastic chips in the casino.
Put REAL money on the table or get out of the game.
Flag as awesome.
"Looks like god (the bank) doesn't have your back any more."
From the movie constantine.
"He added that Gold does have a role as a war chest and in the international monetary system." Page (2)
Greenspan once commented that 'in extremis, such as times of war, only gold is accepted as payment'...paraphrased
Snid, Greenspan also said (in FOMC minutes, on record again) that the basement of the FRBNY was "foreign soil".
Wonder why that never got picked up?
Anyone?
ORI
There would be no need to sell anything. This is anachronism (the days in which the fed cared about balance sheet expansion). The days of balance sheet concern are gone. A revaluation in the price of gold on the feds balance sheet would make them solvent. Since the m2m losses make them insolvent, it is my opinion that they might change their minds real quick about revaluing gold. While a revaluation means the could sell treasuries and stay solvent that at the moment they can't do, it might be the only credible exit strategy they have left.
They way I see it;
(static) = (gold) + (government securities)
if gold increases, government securities must be sold. This will drive up yields, but also interest returned to treasury will now instead have to be paid out to the buyer, ie higher deficits, lower Dollar.
But of course, as tmosley points out, since when haven't they perennially expanded the balance sheet.
XAU is but a ripple in the Feds balance sheet. We are talking a multi trillion dollar work of disfunction.
Yes, I'm shocked. 8000 tons of gold is about 5% of the deficit. Nice work, Fearless Leaders.
It seems like if they're willing to pump $600B onto the balance sheet in QE2, what's another $300B, right? The Fed's balance sheet was already 2.45T in January, and then rose to 2.513T in February, (http://online.wsj.com/article/BT-CO-20110217-716064.html) so does anybody really care?
But looking at it another way, in all of 2010, with all the Fed's shenanigans, the balance sheet expanded "only" $197B. (http://online.wsj.com/article/BT-CO-20110218-707889.html) so the thought of bumping it up by another 50% beyond that might be more than Bernanke could ignore. The real question imo is who would buy all that paper?
Of the Fed's holdings, $1.2 T is in US Treasuries, $760B in GSE's.
I am sick and tired of hearing how the Fed (et. al.) are allegedly conspiring to keep the price of gold low.
I am a fan of gold and it has been amazing to see its 10-year run. But I really doubt that the Fed gives two hoots about the price of gold.
In fact, the Fed must be focused on the price of oil. Lots of people say the US$ is unbacked fiat, however this is not true. To a major extent the US dollar is backed by oil. The reason is that you can use dollars to buy oil throughout the world (except Iran :-)
Gold is a sideshow to the Fed. It must be much more interested to see that oil remains priced in dollars. If that changes - then the end-game for the Fed is in play.
"Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." - Alan Greenspan, 1966.
USD is back by USSA MIC/CIA TERRORISM...
"I am sick and tired of hearing" the truth!?
It must be much more interested to see that oil remains priced in dollars
according to Another, FOA, and FOFOA, oil is not priced in dollars. the saudis internally price it in terms of a ratio of oil volume to gold weight. they convert $ to gold quietly for the last 70 years. so long as gold is suppressed in $ terms, they keep oil suppressed in $ terms.
Keeping gold suppressed is the same as keeping oil suppressed
http://fofoa.blogspot.com/2010/03/us-mints-gold-disks-for-oil-payments-to.html
for the last twenty years they have been using a complex system of paper gold, gold leases, and loans to miners to get it. that game is quickly unraveling.
"Gold is a sideshow to the Fed."
If this statement is so perhaps you could explain to us why JPM and HSBC, both joined at the hip to the Fed, are short over 10 years of silver production of the entire planet?
Not to mention that the same folks are short over 370,000 gold contracts as of Friday.
To say that gold is a side show for the Fed is disingenuous at best.
Hey Snidley...
WinterMutant only gets paid a paltry wage to post such detritus. Give him a break, he's trying to earn his troll keep. The dirty little secret is that after he leaves his .gov cubicle and goes home he's a net buyer of PM's too.
"If this statement is so perhaps you could explain to us why JPM and HSBC, both joined at the hip to the Fed, are short over 10 years of silver production of the entire planet?"
Yep...and agree with your assessment above.
Papering over true value has it's consequences ;-)
Squeeze me baby...LOL.
http://www.youtube.com/watch?v=a4Z3A53nY7Q
Maybe you should pay more attention.
Well... the King of Saud takes dollars for oil, but he has been accumulating gold, doubling his holdings recently.
Do you think he buys it at the comex?
Gold is not a side show to the fed, or any central bank because it is real money. It is true that oil is extremely important to all economies and govermnments and its people, but gold was money long before oil came on the scene.
In due time the reserve currency will be linked to gold again but not until the bankers decide the printing press doesnt make them any richer anymore.
Until that time comes a measly 300 billion dollars don't mean much when it can be created out of thin air at will and we the sheeple keep bending over and cough. Mind you, all this is for our own good, and in the interest of national security.
This will not stop until they have all the land, all the water, all the gold, all the food and we are groveling to do our masters bidding, for jobs so we can continue to live and breed. And we will blame the chinese or the aliens that are a threat to our security, and ruined our great nation.
Good thing you aren't sick and tired of accumulating junks...
Wrong!! Dollar is not back by oil, how can you back it with something the you don't own?
Dollar is back with Bombs, Bullets, White Phosphorus, Depleted Uranium, Innocent lives and massive human suffering.
Any country dare to fuck with the dollar?? US will send in it's war machine. Case study.........Sadam Hussein for the mistake of threatening to sell oil in Euro.
I thought the ownership of Gold question was very important here - we hear in no uncertain terms that the French state owns the Gold , the Italians can do their Italian thing of obfuscation but we hear that the Bundesbank owns the gold although there is certain poltical considerations ?
Any German citizen should sit up and take notice of this statement - this has serious ramifications for the nature of ownership for "German" gold.
Truly astounding but rational psychology from our owners.
Dork,
Thanks for the heads up. Where can I read more of this? Political considerations? I wonder.
@ Confused - look towards the history and set up of the post war West German state I imagine , but don't tell anyone as it is a secret.........................
Not sure if that was sarcasm, but I will assume it is not.
If historical precedent is your answer than I thank you. I wasn't sure if there were any contemporary items of note. In either case thank you.
And meanwhile...silver is sneaking it's way towards 33.
I'm going to book some profits and lay in some call options between 30 and 31. I suggest you do do the same. Greed is not the way to trade. Lets confirm the next leg up first. The big boys will make it known.
The 'big boys' are in China, India, and the Mid East... and they have already 'made known' their intentions.
Cast your lot with the losers at JPM, HSBC, et al... if you want to get steam rolled with them.
I'm with Snidley on this one.
http://finviz.com/futures_charts.ashx?t=SI&p=w1
Buy some paper and ride it into March delivery. Then negotiate a cash payoff at a premium.
Oh, and don't expect to physically go to the exchange to pick it up. It will be roped off with yellow crime scene tape. Crime-x, scene of the crime.
Just a curious question? Who is the largest holder of xau bars? Not that it's significant. I'm giving you time to google it. I'll cast my trade on my own you ASS hole.
Resorting to name calling? That will not win you any debates...or friends.
If you want to know, google it yourself.
I appologise. You are correct.
I already know the answer whipsaw, don't try and spin me.
Actually there's no point to google, you will not get the right answer. The really rich people of the world, you can't even find their names on the Forbes' list. Those puppet masters use Fiat to manipulate the unsuspecting publics and I don't think you can get them to sell their gold
Opt prices have exploded since silver crossed 22, its hard to buy into out of the money options at the premium, but I am anyways.
You dollah hores out there should be using the "markets" to leverage up currency and take profits to purchase more physical pms. There has been enough "calling wolf" in the past 40 years, we are at the Minsky melt up point in all asset classes. At this point, they are ratcheting up on one another. Junk away.
Sell your positions and by in the money calls? Why not collar it by buying a put and selling some calls? Have you looked at the numbers? I will be around. Run it past me. I am interested in your thinking.
TCT the US treasury/mint has 6 times the xau holdings of china and India combined. These wanabe clowns need to do their homework. I already put the orders in. Just call orders on the dips. Nothing major. I think the market is net long xag still. But @ 50 usd a pip on spot trades, I'm watching my ass.
Here, let me call 32.82 the top, so as in the AM I can lay down some more calls...
Silver at $32.85 now... the trend is your friend
Now you're talkin! Where are you're support/resistance levels. Or Fibi's and Pivots? R1-3 and S1-3? Your input is appreciated. Trendlines and chart time frames for your trade ideas?
Okay, tops in I win, now $33.04, thats AS FAR AS IT CAN GO...Im SFL (so fvc#ly long) (per the Mugambo guru) Im going to get killed by my wife.
If by some crazy act of insanity silver hit 36.30 I would liquidate, for the short term. But Im sure I will get killed before that.
"And meanwhile...silver is sneaking it's way towards 33."
Oh nohzzz...why...I've regained all premium on my purchases of just last month and a triple of when I started in earnest again...in monetary terms of course.
Oh...the humanity of it all!...LOL.
The Fed does want to keep the price of gold under check as it needs to project an environment of low inflation in order to maintain their low interest rate policy. A dramatic rise in gold would undermine the Fed's credibility.
Something is rotten all the way around - overstating the obvious but this will not end pretty -- our Joe Sixpack nation is about to get a harsh Econ 101 lesson when the grocery stores close up, and trucks and personal autos start getting standed on the side of freeways as a result of macro economic policies gone awry way off the charts
It does seem to be stating the obvious in many ways - this seems like a classic leak to me - maybe just maybe the CBs want a massive run on gold now.
China certainly is encouraging it's citizens to purchase PMs...and they are responding to the call.
Ive always wondered if they kept the price at 42 due to legal issues after closing the gold window.
Is tungsten being revalued too then?
NM.
Mmmm Mmmmm...Gold.you can't eat it but,I am very pleased I can gain weight just by carrying some in my pocket.
i just need to know, when do i buy more silver. Now, like right now, before or goes higher, or wait and see if Blythe raids it back down to $31
James Turk said last week this could be the big one
UBS just raised their 30 day silver est. to $35
As long as I have any disposable income im buying physical silver. If you wait to buy the dip and the crimex defaults you'll be kicking yourself. When silver is sitting at $400/oz it wont matter if you got in at 31 or 33. Just buy as much as you can right now!
Gold up smartly to $1394.20
Silver up also $32.82
What calls you shorts sitting on. lol
I was only off by three weeks on my silver short but timing is everything. I am not.going to take another silver dildo up the ass. There isnt any room anyway because my ung long at 5.47 is still reaming me.
Patience oh anal one.
You are so right about timing, patience and a nice linear trigger pull are very very important. Hope you hit your target. I do appreciate your honesty about your trades.
UNG ... should be renamed "UGH".
Heh, or Canada's HNU as "Hell NoU"
I gave you my trade Snidley. Aag is currently @ 33.02 so that idea is moot. Read me a chart? xau is sure to cross 1400 again. Come on get technical with me. I'm in the mood.
Ah, I see... You are an individual that believes that technical analysis is valid when the Fed is printing fiat currency, or it's electronic equivalent, as fast as possible...at the same time that fiscal responsibility has gone missing from DC?...and the thieves on Wall St have been given the hen house?...and the thieves in CONgress have been purchased by the thieves on Wall St?...and the Fed, Crimex, et al, change the rules at any time they wish... At least in Vegas the crap game rules do not change while your dice are in the air. lol
I don't happen to believe technical analysis is valid in the present economic environment...anywhere in the world...and, I have serious doubts that it was ever valid anywhere, anytime...except in retrospective...ie; a rear view mirror chart.
Technical analysis is great for the employment of technical analyizers/goat entrail readers, voodoo doctors, and exused car salesmen seeking greener sheep.
To each his own.
Snidley you clearly did not read a previous post. Fiat is world wide. Look @ the eoropean markets and spreads. Yes fiscal responsibility is unfortunately out of control. I also mentioned that in an earlier post. I'm not condoning the wreckless Wall Street whackos. I have posted that as well. Maybe you should explore fundamental analysis, with some technicals sprinkled in. We all need a a point of reference to work from. I'm still waiting for some sort of reson why you call trades, other than your blogging rants. Give me some numbers. What are you trading? What is your strategy? Why are you here? Do you you actually know how to read charts, or do you pay someone to do it for you. Do you have any srt of financial background. Do you actively trade the markets. You seem like anice person. You just aren't a financial guy. Doesn't matter. You are taking the time to learn. You are learning from the best here. If you can't engage or answer a question it's ok. I'm amazed every day with the knowledge that flows through site. Don't try to fake it though. Good luck.
Don't waste your time with facetious patronization. It really sounds more childish than your affinity for 'technical analysis' under current economic conditions.
How I trade, in what and when and is my biz. I share what I want to, when I want to. I am here because it is a great site and I find lots of interesting and useful info here...and, occasionally a person like you that is not too interesting but has an agenda...in your case it's pushing 'chartism'... If you had been here longer you would have read some of my posts...but you have been here a short time...yet you assume that I am 'faking it' and know little about investing?... I have spent the last four decades trading/accumulating commodities... perhaps longer than you have been alive... yet you think you can school me in commodities trading/accumulation?... and based on technical analysis in a world gone economically insane? I think not... but, good luck toying with your charts and trying to convince others that they are valid snapshots of the future. Hey, astrologers have to eat too.
I have been on the internet a long time. I have learned to spot trolls by their actions... as soon as a poster begins extolling the virtue of PMs and others begin to pay attention, along come the trolls. You stink of troll.
I was waiting for someone to point out this troll. Coming on alittle strong today huh?
double post
Gold and silver surging right now... <gulp>!!
$33 just broke
Harvey's got an update on surging silver lease rates
http://harveyorgan.blogspot.com/2011/02/silver-lease-rates-skyrocketing.html
Yep! ...and gold knocking on $1,400...
Did Blythe give her minions President's Day off?
No, the only thing Blythe is getting off are her minions.
Thanks for the Harvey link.
Very interesting development.
Wow. This'll be good.
On one hand I do have to thank the FED and the JP Morgue for suppressing gold and silver prices for making this investment possible.
Silver plowing through 33 Yee Haw Hi Yo Silver AWAY..........
This is a good read....
http://traderdannorcini.blogspot.com/2011/02/what-is-commercial-signal-failure.html
Yes it did!
Thanks for explaining that ZH, I was still scratching my head on that GATA post.
33.06
Surely they are going to attack with gusto on Monday. They aren't going to let this go without doing something desperate... are they?
Whoahhhh. I just found a Crayola, and imprinted on it is 'Gold' in three languages!
Soft, too. Like gold.
I'll keep it handy when I need to trade a 4 year old for his Halloween Candy.
They can go on manipulating gold prices all they want. That's child's play when you have way more (supposedly) than any other country in the world. But the price suppression will stop soon. Sorry bastards can't do it with silver because they don't have any. Silver is going to explode & drag gold reluctantly up with it. And then we'll start to see oil and natural gas prices go up to where they should be based on true supply/demand. The trickery from those stupid fucks is coming to an end.
Wow, silver is going APESHIT tonight. Up 40 cents to 33.13 already.
At this rate we're going to hit $35 by NY open on tuesday
Great point - I know a handfull of @$$holes that won't be enjoying their "off day" -- Emergency Conference Calls anyone ? RFLMAO
GS smelling blood in silver and taking out JPM?
Commercial Signal Failure imminent! Grey Swan event unfolding!
Grabbed some popcorn and a hoegaarden to enjoy the show...
Better make that a year's worth of popcorn and a garden with corn for future popcorn needs.
Naaaa...I can just buy from my local farmer with some of my silver coins...or just buy the whole farm and lease it to him if it keeps going like this...
Holy smokes, silver is really rocking out of the gate. Looks like an epic squeeze in play.
http://www.thenational.ae/news/worldwide/south-asia/thousands-of-ducks-a...
Barbarous relics are amazing.
Yea this rediculous. I have been long since the high 29's. The Macd and Osma along with the Rsi are bloated like stuffed piigs. I'm t/p and putting a call option @ the 200 hr sma. 30.63 to be exact.
so yen ..long since 29.89 what a paper shuffler
so the greed has overcome your trading , using calls to extend ,
but your floating around a mysical chairs 10 chairs 100 dancing lap top traders ,, trying to find a chair when the music stops .
JP morgan short silver ten years of production . how many contracts do you need in silver to get delivery , or is that foreign language to you,
best to stock up on stuff that will in the long term be way more important than a buck in silver in since high 29's lol
i suppose you have the real stuff , maybe bought at 4,25 with all your insights ,
just playing the paper chase to make the ends meet
no offense intended just taking a gander at the in for a buck out with a nickle crowd ,
Uncle Scam
So, what everyone here is trying to say is, "GET YOUR HANDS ON ALL THE PHYSICAL SILVER AND GOLD YOU CAN WHILE YOU CAN!" Am I right?
Yup. That's very old advice.
The Pinocchio factor: the more the market thinks The Fed is lying, the higher the gold price. It's the conscience of the Central Banker. Same applies in other countries or currency issuing entities.
There is the issue of total debt burden, fiscal and trade deficits, current account, future national growth prospects and, of course politics.
What's interesting in today's situation is this: the potential for and fear surrounding the crumbling of the old world order. That is, the risk that major global political upheaval will provoke significant unexpected economic changes. Since the crisis, the chance has increased that the US dollar will no longer function as sole reserve currency. Gold is a hedge against this change. But wait, there's more. Big change in global politics means change in economic accords including trade, OPEC, and military alliances. Gold is a hedge against this too.
As it turns out, gold was right all along. There are major changes not only coming but happening right now. There's potential for lots more and nobody can be certain which direction it will take. As for US deficits, we can be sure of the direction they will take as the political structure of Washington falls flat
bid/ask spread on the May ZI is like 20 cents. Not much liquidity in this contract at the moment. Fast market has them spooked. It's going to be hard to peel off the longs as this goes verticle. It feels so nice at the moment, but that is greed talking. Probably better to throw out an offer or two on the way up.
I'm not a great elliot waver but on the 4 year chart of SLV it looks like the 18-30 move may have been wave 3 . This current move could be wave 5 lifting off. 5th waves in the metals are often the largest. We shall see. This guy has a nice chart count. A bit old though.
http://www.wavetimes.com/wp-content/uploads/2010/11/Comex-Silver-23Nov2010a.jpg
lol maybe they will confiscate gold and silver, so they can give to JPM as a bail out.
i mean they gotta cover those shorts somehow.
anyhow im off to grab an over priced oz of gold.
not often u get to participate in the death of a titan
That's why the euro and the ECB are in a much better position with the MTM gold every quarter.. strange that GATA or ZH don't seem to grap the repercussion of this...
Why can't a revaluation of gold not just lead to an increase in Fed capital?
This is a great post, but I think you got it backwards. This is precisely how the reset switch will work and how they will destroy the regional central banking system and replace it with a freshly minted central-central banking system. This is how they commit self-imposed bankruptcy (by being forced to buy gold - Oh NO!!) and upstream the assets like any good racketeer. This is the plan for their own self-destruction. This is why they recently imposed the new regulation creating the separation between the District Feds and the U.S. Fed balance sheet because that will be the first step... to collapse the 12 Federal Reserve Districts; Philly, Kansas City, etc., then the Fed itself.
Why would we need a reset switch? We wouldn't unless we have another systemically driven collapse which is exactly what they have planned. Right now, they're monetizing the confidence in the U. S. Dollar which is the last bastion of any fiat system - confidence. What Ron Paul doesn't realize is that it's Ben Bernanke who has as his main goal - End the Fed. Just watch for a gradual rise in what is known as libertarian-paternalism where the likes of Ron Paul and Ralph Nader create a bond over a new system while the average tea partier has no idea that it's "two systems." That's the brilliance of Cass Sunstein... he gives you a blue pill and a red pill as the choice architect of a new global financial system, so it still feels like free will (i.e. Coke/Pepsi, UPS/Fedex, Verizon/ATT).
It's obvious from the commentary of Robert Zoellick and Mervyn King that the agreement for a global reset currency basket to share power with the Chinese has been agreed upon. I think of it as "a tisket, a tasket, a democratic-communist basket." The agreement, including $100 trillion in fresh debt to imprison the underdeveloped world is in place, the only question now is the timing. The sooner they can create systemic collapse and the introduction of a two-channel currency system, as proposed by King, the sooner they can kill of the 12 Federal Reserve Districts because their purpose was to mitigate bank runs and under the new non-fractional payment system (first half of the system) you can't have a bank run. Bank runs can only occur on the wealth portion (second half of the system) and that will have a much larger gold reserve and much greater restrictions on redemptions.
The plan is to decouple the payments system from a fractional reserve model to create an appearance of no systemic risk of collapse/bank run, etc. Then to introduce a second channel that will be for wealth storage. Together the new system will meet both needs of monetary system; a) satisfy the double-coincidence of wants, and b) a store of wealth. We have a link to Mervyn King's outline for the system at the following link.
http://tradewithdave.com/?p=5310
The Federal Reserve system means nothing to them. The banks are what they value and if banking regulations are too harsh they simply move their investments and focus to the developing world which is exactly what they are doing. The Fed is their strawman and by attacking it you help them achieve their goal. The T-Shirts should say "Control the Fed" not "End the Fed", but they would never let that happen.
Dave Harrison
tradewithdave.com
To me it sounds like this is where the USD devaluation will come from.