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Exponential: Gold In Euros

Tyler Durden's picture




 

Just because the LBMA/JPM can't juggle their top kill of both PMs and FX, we have another all time record.


 

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Fri, 06/04/2010 - 12:27 | 394997 homersimpson
homersimpson's picture

I never thought I'd get a hard on looking at charts. Call me a golderosexual.

Fri, 06/04/2010 - 12:28 | 395001 Cookie
Cookie's picture

LOL....+1

Mon, 08/23/2010 - 02:20 | 537055 qrs521
qrs521's picture

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Fri, 06/04/2010 - 12:28 | 395004 SilverIsKing
SilverIsKing's picture

+1,000,000,000,000,000

LOL

Fri, 06/04/2010 - 12:30 | 395018 Treeplanter
Treeplanter's picture

What our mentor and hero said.

Fri, 06/04/2010 - 12:31 | 395022 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

BonerSimpson then lol!

Fri, 06/04/2010 - 23:51 | 396523 strannick
strannick's picture

True;

That chart is very goldiortic

Fri, 06/04/2010 - 12:29 | 395002 Gordon_Gekko
Fri, 06/04/2010 - 12:39 | 395059 taraxias
taraxias's picture

Well done GG. You are a ray of sunshine on this site.

Fri, 06/04/2010 - 12:47 | 395097 DoChenRollingBearing
DoChenRollingBearing's picture

Gordon's article is EXCELLENT.  Everyone here should read it.  Especially our friends Bravo and jory (who I imagine will show up soon enough).

Not much time.  Buy gold while it is still available.  Under $1500 / oz is a gift.  You will see.

Or maybe not, what the hell do I know. 

But, with all the epic and biblical scale problems out there, I'm playing it safe and would beg all of you too to play it safe for your families: with physical GOLD.  Now.  Now.

Fri, 06/04/2010 - 12:49 | 395102 oklaboy
oklaboy's picture

with another announced 1M layoffs between now and 7/15, what fun this summer! I can't wait to start my second year with funemployment!

Fri, 06/04/2010 - 13:07 | 395155 trav7777
trav7777's picture

But...but...Douchinger said you were WRONG and that gold was just a doorstop!!!

And he writes his "tickers" as if Obama is reading them

Fri, 06/04/2010 - 14:43 | 395445 akak
akak's picture

I wonder what part of "arrogant hypocritical self-absorbed narcissist" Denninger does not understand?

Fri, 06/04/2010 - 16:01 | 395705 Hephasteus
Hephasteus's picture

The part where people don't just accept it and become ok with it.

Mon, 06/07/2010 - 22:29 | 400853 karateman
karateman's picture

speaking of denninger, he is back to his old peak oil denying ways once again. I just don't get that guy. Legend in his own mind I suppose.

Fri, 06/04/2010 - 13:39 | 395243 Spitzer
Spitzer's picture

Is that you in your avatar ? You slick mofo

Fri, 06/04/2010 - 13:45 | 395270 breezer1
breezer1's picture

brag, brag, brag. do you think the other guy id reading this?

Fri, 06/04/2010 - 16:25 | 395779 Truth
Truth's picture

I think gold to consolidate for a little longer then off to $1300.  If we get a bit of a rebound in the US equities perhaps gold $1350 by July.  wuh-ha-ha-ha!!!  should have bought GLD July calls in the money.  damnit!

Sat, 06/05/2010 - 02:20 | 396628 strannick
strannick's picture

GiGi;

Thanks for 'telling us so' again.

Keep up the gold work

Fri, 06/04/2010 - 12:29 | 395005 godfader
godfader's picture

Remember when they posted all those downward sloping "SPX in EUR" charts during 2009? Wonder why interest in those kinda disappeared?

Fri, 06/04/2010 - 12:31 | 395009 Turd Ferguson
Turd Ferguson's picture

I getting a boner every time Trish Regan comes on. Me likes the S&M getup she's wearing today!

Fri, 06/04/2010 - 12:34 | 395036 Cleanclog
Cleanclog's picture

She is such a "warrior".  Pathetic props an increasing diversion ploy.  Could become really interesting.

Fri, 06/04/2010 - 12:40 | 395067 Turd Ferguson
Turd Ferguson's picture

Looks like nobody wants to be short gold into the weekend. Can you blame em?

Personally, I'd like to go long TRISH all weekend.

Fri, 06/04/2010 - 12:50 | 395108 ydderf1950
ydderf1950's picture

+1000000

Fri, 06/04/2010 - 13:21 | 395191 sumo
sumo's picture

Work the trade. Enter, exit, re-enter.

Fri, 06/04/2010 - 16:26 | 395780 Truth
Truth's picture

Charles Nenner is shorting gold and silver, btw.......

 

Fri, 06/04/2010 - 12:30 | 395016 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Nothing stands in the way of gold.  Nothing.

Fri, 06/04/2010 - 12:34 | 395031 Turd Ferguson
Turd Ferguson's picture

Well...the fucking bullion banks and the central banks do but they will, eventually, be overwhelmed.

I mentioned last night, the ultimate collapse of the etf GLD, (and don't kid yourself, it will collapse) is going to have the effect of 100 Lehmans. 

The end is near. So close you can smell the sulfur.

Fri, 06/04/2010 - 12:36 | 395046 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Yeah, time to melt up some silver bullets.

Fri, 06/04/2010 - 12:36 | 395044 LoneStarHog
LoneStarHog's picture

Douchinger thinks that he does.  He will make a really nice SPEED BUMP !

Fri, 06/04/2010 - 12:43 | 395077 Gordon_Gekko
Gordon_Gekko's picture

He's busy buying his stock market LEAP calls...

Fri, 06/04/2010 - 13:02 | 395144 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

GG, you crushed him dude!  His response was worthless too!  It was like a Mike Tyson fight from back in the day!

Thread music!

Abstract Rude, Prevail & Moka Only - Stop Biting:

http://www.youtube.com/watch?v=zv8twF5P3MM

Fri, 06/04/2010 - 13:50 | 395278 breezer1
breezer1's picture

we'll see you at your house after the close gordo. we'll be drinking. will we bring carl?

Fri, 06/04/2010 - 12:32 | 395026 SecretGoldfish
SecretGoldfish's picture

to be seen on a GLD/USD chart soon

 

 

Fri, 06/04/2010 - 12:32 | 395028 Gordon_Gekko
Gordon_Gekko's picture

Another "told you so"...(repost from another thread):

It is clear that that’s NOT what always happens. Sometimes Gold is positively correlated with USD, other times inversely, and sometimes not at all. What should be clear to everybody though is the fact that a rising Gold price ITSELF represents “the drop” in USD (if you mean the purchasing power i.e. – the DXY really means NOTHING if that is what you are measuring). Gold is not volatile, the value of the dollar in which it is denominated is. In fact, as this crisis deepens and capital accelerates its flow down Exter’s liquidity pyramid, I expect more and more occurrences of USD/DXY (since USD is still the reserve currency of the world) moving higher together with Gold.

 

 

It is only and only a bull market in real money i.e. Gold – the correlations with equities or USD – real or imagined - will keep changing, reversing or completely falling by the wayside according to whatever favors Gold at the moment as this bull fully expresses itself in due course of time.

http://gordongekkosblog.blogspot.com/2009/09/gold-what-next.html

Fri, 06/04/2010 - 12:47 | 395096 Nathan Smith
Nathan Smith's picture

But, there is no inflation.......lol.  You can't it eat.......lol^n. 

BTW....GG have you seen the COMEX inventory reports for gold and silver?.....pretty interesting.  It looks as though the run to physical is in play. 

As you have duly noted....the time for physical is now.  I will apply maximum leverage and continue to accumulate mining shares.....if DTCC busts, then its TEOTWAWKI.....and I still have bags of junk silver at the crib.....and a couple thousand rounds of ammo.

And I feel fine.

Fri, 06/04/2010 - 12:48 | 395099 FranSix
FranSix's picture

So judging from the inverted triangle, the next failure should be in the muni bonds, since commodities like oil and copper are in killer declines?

Fri, 06/04/2010 - 15:11 | 395548 dumpster
dumpster's picture

good work gordon  .. from now on Mr Gekko

Fri, 06/04/2010 - 16:28 | 395786 Truth
Truth's picture

I disagree with this pyramid.  After the air we breathe, water and land are next most important.  perplexed by diamonds placement;  it should be closer to gold since it's tangible and is valuable (was used a medium of exchange in Europe during WW2).

 

Fri, 06/04/2010 - 18:27 | 396054 faustian bargain
faustian bargain's picture

It's manufacturable, and it's artificially scarce.

Sat, 06/05/2010 - 21:19 | 397414 THE DORK OF CORK
THE DORK OF CORK's picture

Why is Gold green - its a leprechaun thing isn't it

Fri, 06/04/2010 - 12:35 | 395041 Turd Ferguson
Turd Ferguson's picture

Anyone that missed this thread last night needs to be sure to spend time reading/understanding it today. Extremely important.

http://www.zerohedge.com/article/gold-holdings-gld-surge-all-time-record

Fri, 06/04/2010 - 12:44 | 395083 LeBalance
LeBalance's picture

The Cosmic Joke: There is no price at which Gold should be purchased for in Fiat.  So for a limited time there is an illusory doorway of travel between the two which will soon snap shut forever.

Fri, 06/04/2010 - 12:51 | 395109 scofflaw
scofflaw's picture

Isn't the GLD trust buying more physical gold because more investors are buying GLD paper?  The criticism has been that the trust does not have the physical gold to back up the paper they have issued, but could this be evidence to the contrary?  As I have mentioned in other threads on ZH I am long physical/short GLD as a hedge but trying to better understand the machinations of how the GLD trust operates.

Fri, 06/04/2010 - 14:09 | 395355 bigkahuna
bigkahuna's picture

I think long gold is cool--shorting gld, I would wait on that one. When the SHTF that etf will probably skyrocket--and if the S keeps hitting the fan--it will likely implode. I think there will be a lot of misguided investors flocking to gld and if this all plays out, the price should peak real hard before it falls any--just my opinion...

Fri, 06/04/2010 - 16:02 | 395708 Sabremesh
Sabremesh's picture

Strongly agree. GLD is indeed a worthless ponzi and it will inevitably collapse into dust, but now is not the time to short it, because it will soar before it collapses. There's no prize for being right in principle if the market is rigged against you.

Fri, 06/04/2010 - 16:03 | 395709 Sabremesh
Sabremesh's picture

Fat finger double post.

Fri, 06/04/2010 - 12:37 | 395049 bingaling
bingaling's picture

it should be 1014.00+ euro per ounce if you follow the conversion of euro /dollar -

Fri, 06/04/2010 - 12:37 | 395050 Jim in MN
Jim in MN's picture

It's getting kind of silly to measure gold in fiat.  Why don't we just shift to oil as the measure and get it over with?  Or at least a nice basket of global fiat including the yuan, rupee etc.

Somebody get on that.  I have to go to a conference about my 9-month-old.  Wonder what currency he'll use for his first car (and what the fuel will be)?

Fri, 06/04/2010 - 12:39 | 395062 bingaling
bingaling's picture

currency will be backed by whatever fuel he is using

Fri, 06/04/2010 - 12:38 | 395052 Gordon_Gekko
Gordon_Gekko's picture

Karl Denninger is busy buying LEAP calls...oh wait...

Fri, 06/04/2010 - 12:40 | 395066 taraxias
taraxias's picture

PMSL

Fri, 06/04/2010 - 12:39 | 395060 Turd Ferguson
Turd Ferguson's picture

Douchebag

Fri, 06/04/2010 - 12:55 | 395117 DoChenRollingBearing
DoChenRollingBearing's picture

Told you guys just above jory would show up!

Welcome jory.  Keep trying, we need to hear it.

But, YOU, jory should read Gordon's article above.  You will learn more.  It might improve your arguments if you know how Gordon reasons.

On the other hand, you might change your mind and convince you that our problems are SO BAD that buying some gold is good.

Hurry up!  Not much time.

Fri, 06/04/2010 - 13:03 | 395147 Mr Lennon Hendrix
Fri, 06/04/2010 - 14:50 | 395467 dumpster
dumpster's picture

jorys been cut off at the knees

 

don\'t see his post

Fri, 06/04/2010 - 13:49 | 395277 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Disclaimer:  Turd was calling JORY a douche, not GG.  haha!

Fri, 06/04/2010 - 14:12 | 395364 woolly mammoth
woolly mammoth's picture

It sure messes up the string when the trolls get flaged back into La-La land after they've been responded to. Zero Hedge was at its best when they dropped the annonymous postings. Wish there was some way to screen out the trash without affecting us heavy readers but rare poster. You people with a real contribution help me in understanding whats happening and about to happen. Thanks to all.  

Fri, 06/04/2010 - 14:50 | 395462 akak
akak's picture

That is why, when responding to known trolls like Jory or JohnnyBravo, I always respond with their quote leading my reply, so that if their original post is later deleted due to junking  or banning, it will still be clear to whom I was responding and why.

To avoid ambiguity and possible misinterpretation down the road, ALWAYS RESPOND WITH A QUOTE!

Fri, 06/04/2010 - 17:01 | 395870 trav7777
trav7777's picture

I'm too gangster for that

and you people should NOT be junking anyone I reply to

Fri, 06/04/2010 - 16:13 | 395738 Sabremesh
Sabremesh's picture

Sorry, junked you by mistake. I thought you were comparing GG to an article of toiletry, but it seems you were referring to somebody else. Confused.

Fri, 06/04/2010 - 19:33 | 396167 tmosley
tmosley's picture

The bad thing about junk posts disappearing is that it looks like you called GG a douchebag (I assume you were talking to Jory).

Fri, 06/04/2010 - 12:41 | 395068 Quintus
Quintus's picture

Context sensitive advertising you moron.  WTF else would google ads choose to put on a page full of the word 'Gold'.  

Fri, 06/04/2010 - 12:49 | 395101 doggings
doggings's picture

not just context sensitive either, Goog alters the ads you see depending on many factors, including your geo location and your viewing history these days too.

 

Fri, 06/04/2010 - 13:57 | 395313 msjimmied
msjimmied's picture

Context sensitive, I wondered about the Cougar ads..made sense, all you guys talk about gold, sound all rich and stuff. Then now it's been replaced by ads for Gout! Don't let Jory make you sound so crabby.

Fri, 06/04/2010 - 14:01 | 395331 trav7777
trav7777's picture

Rich guys date young women

Fri, 06/04/2010 - 12:43 | 395080 Al Huxley
Al Huxley's picture

How's your portfolio doing jory?

Fri, 06/04/2010 - 13:33 | 395220 mephisto
mephisto's picture

Jory is allowed a colouring-in book on fridays, not a portfolio.

Fri, 06/04/2010 - 12:45 | 395082 bingaling
bingaling's picture

The people here are generally goldbugs it is called target marketing - Tyler is in no way shape or form a sell out - The only reason people come here is because Tyler isnt a sellout and he tells it like it is . If gold was going to get crushed Tyler would be the first to report it . So basically what I am saying is go to hell troll .

Fri, 06/04/2010 - 13:37 | 395233 Spitzer
Spitzer's picture

Most people here, including TD subscribe to the Austrian school of economics.

I prefer to be called an Austrian bug.

Fri, 06/04/2010 - 20:43 | 396258 thisandthat
thisandthat's picture

Much better than be called an Austrich ;)

Fri, 06/04/2010 - 13:38 | 395240 Double down
Double down's picture

+10

Fri, 06/04/2010 - 12:45 | 395088 LeBalance
LeBalance's picture

Do you have Adblock, child?

Fri, 06/04/2010 - 12:45 | 395089 SilverIsKing
SilverIsKing's picture

I know I know, you'd prefer ads like this:

http://www.youtube.com/watch?v=oyjMIOIubG8

Fri, 06/04/2010 - 12:39 | 395058 monmick
monmick's picture

I'm going to Europe later this summer for 3 weeks. I think I will bring an ounce of gold as spending money. Maybe I will buy the Eiffel tower as a souvenir...

Fri, 06/04/2010 - 12:47 | 395092 LeBalance
LeBalance's picture

It doesn't plug in, so it won't vibrate.  A loss as a dual purpose paperweight.

Fri, 06/04/2010 - 12:39 | 395063 doggings
doggings's picture

this is the 2010 gold prophecy that did it for me, pics n all.

http://buygoldsilver.org/2010/01/gold-2010-beyond/

Fri, 06/04/2010 - 12:41 | 395072 taraxias
taraxias's picture

Bring out the DOW 10,000 hats........again. It may be the last time you get to use them.

Fri, 06/04/2010 - 13:36 | 395229 mephisto
mephisto's picture

Was thinking the same thing, though the index is measured in USD so it may make it back in about 2014 if everything plays out.

Fri, 06/04/2010 - 12:47 | 395094 buzlightening
buzlightening's picture

The flow to the bottom of the pyramid is just heavier than a lead balloon!!  We know they're lining up in the EU for honest money hands on gold/silver!!  Won't be long and it's US style lines as well and the truth of not owning it becomes self evident if it's not in your hand!!  100% possession is the law among the lawless!!

Fri, 06/04/2010 - 13:06 | 395153 ZeroPower
ZeroPower's picture

Uh oh, a gold thread. Better watch my words here but...

No fucking shit its at a high in euros. Have you SEEN the drop in the currency?

Fri, 06/04/2010 - 13:15 | 395175 trav7777
trav7777's picture

Drop WRT what, other declining debtmoney paper?

Assets *not* requiring growth, those which have value mostly independent of it for whatever reason, are rising vis a vis assets that are backing unpayable debts or which require growth rates to be maintained.

Fri, 06/04/2010 - 13:42 | 395255 Double down
Double down's picture

Yeah, I want to see the conviction.  I do not doubt it, it is a question of stamina.

Fri, 06/04/2010 - 13:13 | 395171 trav7777
trav7777's picture

Nice TEOTW trade headsup for us.

Flight down the reserve currency ladder.  First from periphery currencies that are carry targets.  Into euros..then from there into what underlies those, yen, dollars.  Carry trade unwind.

But now we also see from the euro unwind something interesting.  They're not flocking to paper, they're going physical.

ALL deflationists...well, hell, I'm a deflationist too because of math, but ALL anti-gold people or paperbulls need to pay attention to this break in previous trends.  The flight is now ending up in real reserve assets.

I told people a collapse of the euro is not ultimately dollar-positive.  You can't lose a de facto reserve and unwind a major world transactional currency which was even being used for oil in a few bourses without everyone looking at other paper and going hmmm...

Especially when what's causing this is a SOLVENCY issue.  Not like the FRN zone is solvent either.

Fri, 06/04/2010 - 13:23 | 395194 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Friday should be renamed "Travday".  You kill it every time bro!

Fri, 06/04/2010 - 13:18 | 395181 alexdg
alexdg's picture

How come silver can't keep up? Sometimes it maps Gold, others it behaves like an industrial metal like copper and maps the SPX.

Fri, 06/04/2010 - 13:28 | 395196 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Silver is a hybrid, agreed.  Silver tracks oil and gold, so it splits at times.  Since oil is weakening due to a "strong" dollar, so goes silver.  But because gold is up, so is silver.  Thus the capitulation.

PS, this all has to do with OIL.

Silver just got pushed into the mud, poor girl.  I'll pick her up and tell her, "It's ok baby, come with me, I'll take you home."

Fri, 06/04/2010 - 13:29 | 395214 George the baby...
George the baby crusher's picture

Don't worry, people will catch on and silver will catch up.

Fri, 06/04/2010 - 13:37 | 395231 trav7777
trav7777's picture

Silver production hasn't peaked yet.

Gold's peak is very mature, Ag looks to be plateauing, but we haven't seen sustained production declines yet.

Fri, 06/04/2010 - 16:51 | 395842 Hephasteus
Hephasteus's picture

You don't know what you are talking about. Silver gold and copper are all found together in various amounts. It's been mined for so long you can't really say that the ratios aren't understood because of missing veins.

What you just said is akin to saying uranium mining has peaked but lead mining hasn't. You can't get uranium without getting lead becasue uranium decomposes to lead.

You can't mine for oil without getting natural gas any more than you can put gas in a pan without getting gas fumes.

Fri, 06/04/2010 - 17:04 | 395873 trav7777
trav7777's picture

Are you on something, man?

If you *seriously* want to go into production levels with me, I can give you the charts.

The ratio of presence of Ag, Au, and Cu together are not fixed, doofus.

Neither is lead and U238, which has a half life of 3.7 BILLION years.  lol.

I hope you wrote that post as a joke.

Fri, 06/04/2010 - 18:30 | 396061 faustian bargain
faustian bargain's picture

A billion just ain't what it used to be, anymore.

Fri, 06/04/2010 - 19:26 | 396155 Hephasteus
Hephasteus's picture

He doesn't even understand what half life decay means. It's probability.

He sees it as being stable for billions of years. It's not. Don't believe me grab a big chunck of it and hang out with it for 20 years.

There are silver deposits that are not economically feasible to get to and copper deposits that follow the same principle. But they aren't sufficient to drastically alter behavior. Once gold peaks it's peaked for the others. Gold is money it sucks at pretending to be a commercial commodity. Silver is money and a commerical commodity. Copper is a commercial commodity that can pretend to be money. A trick rome likely pulled to get people to bring supplies without paying shipping.

Fri, 06/04/2010 - 14:31 | 395422 hound dog vigilante
hound dog vigilante's picture

When the physical/paper timebomb goes off, silver will have it's day. So long as market confidence in PM paper instruments (read: ETFs) remains, silver fights the headwinds of manipulation, which is easy/cheap for TPTB.

I think the physical/paper PM issue will explode this year (summer?), and I think silver will reach $30/oz. before we stagger into 2011...

Fri, 06/04/2010 - 13:18 | 395184 tao400
tao400's picture

Even people I know who hate gold are buying it. A friend bought 60 ounces of GLD today. The issue with Hungary is proof that Germany will have to bail out everyone. I hope they say F U to the French. Mad Max could be on the way.

Fri, 06/04/2010 - 13:50 | 395279 Quintus
Quintus's picture

I would buy GLD too if I hated gold.  Real gold, that is.  The kind that actually exists.

Fri, 06/04/2010 - 13:27 | 395204 OpenEyes
OpenEyes's picture

It's interesting to me that virtually every form of media lists gold as a commodity, and yet, across the street from my office is a currency exchange (in NYC) and it lists gold as one of the currencies that it will exchange for dollars right next to Euros, Canadian Dollars, and the rest.  How did gold come to be treated as a commodity rather than a currency?

Fri, 06/04/2010 - 13:28 | 395207 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Propaganda.

Fri, 06/04/2010 - 13:38 | 395237 trav7777
trav7777's picture

Oh, come ON...wrong answer, man.

It's because currencies ARE commodities too.

Fri, 06/04/2010 - 13:41 | 395252 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

touche.

Fri, 06/04/2010 - 13:43 | 395261 Double down
Double down's picture

Currencies function as collateral.

Fri, 06/04/2010 - 13:53 | 395290 Spitzer
Spitzer's picture

so shorting lumber is the same as being long gold ?

Currencies are commodities my ass.

Fri, 06/04/2010 - 14:05 | 395338 trav7777
trav7777's picture

No, shorting lumber would be short, being long gold is being long.

Currencies ARE commodities.  I'll pull from wiki a convenient definition: A commodity is a good for which there is demand, but which is supplied without qualitative differentiation across a market. It is fungible, i.e. the same no matter who produces it. Examples are petroleum, notebook paper, milk or copper.[1] The price of copper is universal, and fluctuates daily based on global supply and demand.

Price ratios of commodities WRT other commodities vary according to market forces.  Currencies are commodities.

Is gold going up or is the euro going down?

Fri, 06/04/2010 - 17:18 | 395907 akak
akak's picture

I disagree completely.

The paper on which a dollar is printed is a commodity, but the dollar itself is NOT a commodity, any more than dishonesty or fraud are "commodities".  The dollar is an intangible financial and notational construct.

Gold is a commodity which can be treated as, and behaves as, money.

Just because certain commodities are also money, it does not hold that the converse is true, that all commodities are money. That assertion is absurd.

Fri, 06/04/2010 - 18:47 | 396084 Spitzer
Spitzer's picture

Trav777 goes long lumber and hedges by going short gold, what a guy.

Fri, 06/04/2010 - 15:57 | 395698 dumpster
dumpster's picture

use small tree logs as currency 

 

all you need is  a foot long and a chain saw for any purchase /  

change is recorded as the saw dust

 

Fri, 06/04/2010 - 13:42 | 395256 trav7777
trav7777's picture

Don't tell Douchinger, because according to him and his tickers that he writes as if Congress and Obama are hanging on every word, gold can't be exchanged for much of anything conveniently.

All currencies are also commodities...same supply and demand forces act on them.

Fri, 06/04/2010 - 13:35 | 395227 CheapKUNGFU
CheapKUNGFU's picture

With a full understanding of the inverted pyramid above, I have been buying physical gold since it was $275 and its hard not to get a little excited now... heh

Jory, you are the moron for your name calling without a thorough understanding of the facts and consequences.

I kinda feel sorry for you, cause your daddy didnt teach you what real money IS, and what it is NOT.

In the immortal words of Chumba, GOLD BITCHES!!! and a side of SILVER!

Fri, 06/04/2010 - 13:39 | 395241 laserjock
laserjock's picture

Instead of that *teetering* GLD fund I own PHYS which responds to gold spikes with shallow troughs.  I didn't realize it was a 1/2x inverse gold fund.  I love paying a premium for bullion that would be confiscated anyway if everything goes to hell.

Fri, 06/04/2010 - 13:53 | 395288 Seal
Seal's picture

Looks like the thing to do is buy silver and take delivery if you can at the COMEX price.

Fri, 06/04/2010 - 14:04 | 395337 Duffminster
Duffminster's picture

While JPM and the LBMA are having trouble with Gold, there using JP's massive leverage to knock silver down as a means of holding gold back from jumping well above 1250 in my opinion.   If anyone in the hedge business ever got smart about this, they'd turn their paper orders into physical deliver orders in silver and take delivery.  A strong rise in silver above recent highs will drive gold hard and fast in my opinion.  They only way to beat the 10,000,000 silver and gold derivatives guerrilla is to take deliver of physical silver in my opinion.

 

 

Fri, 06/04/2010 - 14:44 | 395448 hound dog vigilante
hound dog vigilante's picture

"The only way to beat the... silver and gold derivatives guerrilla is to take deliver of physical silver..."

Bingo. You are correct. Taking delivery of physical gold doesn't hurt, either. The market demand/price for physical must become the primary market/price factor if PMs are to break-out and fulfill their pre-destined role as the last/only store of wealth/value. The paper game must end and physical delivery demand is the only way to do it.

When the paper (comex) contracts become physical delivery demand, the comex warehouse will be empty, and the paper PM charade will end badly.

Frankly, I am surprised that someone or some group hasn't conspired to overwhelm the comex yet... perhaps the timing is not yet right...

 

Fri, 06/04/2010 - 15:52 | 395678 Duffminster
Duffminster's picture

This is such an obvious play that I am baffled as to why the likes of Paulson haven't engaged in it.

Silver is a miniscule market and the metal is far more rare than gold and used in everything from water purification and mirrors to most electronics and most of that silver is never replinished. 

There must be some reason that there hasn't been a run on physical silver that I'm missing.  But what is it?

Fri, 06/04/2010 - 16:40 | 395807 Jim in MN
Jim in MN's picture

Maybe all those pesky criminal charges the Hunt brothers were subjected to?  Memories like that die hard.

http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt

 

Fri, 06/04/2010 - 14:44 | 395447 dumpster
dumpster's picture

sinclairs fifty years in the gold business ..or butthead jory or bevis the zit faced Bravo

If you do not see the hand of intervention in the gold market early this morning you are either wearing welders gear or are simply inept in this field.

Like the euro intervention being useless in the grand scheme of things, so is the gold intervention this morning.

Above $1224 the manipulators will lose their influence in the price of gold. We sure witnessed that last US night in the euro.

The real numbers now that you will not hear on F-TV are $1.19 and then $1.10, below which the euro will collapse. This will return us to the dark ages in Forex, but will be good for the business of Forex trading.

With regards to our newest sovereign problem, if you were Hungarian would you prefer to own gold or paper of any kind? That is assuming you had any money in the first place to buy gold.

Fri, 06/04/2010 - 14:55 | 395489 THE DORK OF CORK
THE DORK OF CORK's picture

I only got into Gold last summer - exchanging euros for the stuff.

buying it in 2005 would have been brilliant but I still consider myself a lucky SOB 

Fri, 06/04/2010 - 15:20 | 395574 Doji
Doji's picture

Well that is it.  I am getting all my guns gold plated.

Fri, 06/04/2010 - 16:18 | 395753 buzlightening
buzlightening's picture

Good bye jpig when silver gets wrung out for delivery!!  80 billion Gold mkt and 5 billion silver mkt!!  Sure jpig can naked short the chit out of the baby faced silver market!!  Now what about meeting the physical delivery!!  Soon the vindication when the interventionist/manipulating naked short robbers cry they can't cover the naked shorts!!  Too bad so sad and I'll shed a tear as I send each and every one of the jpig dead basturds to my very last song for them all!  http://www.youtube.com/watch?v=FywT-txGuss

 

Fri, 06/04/2010 - 16:37 | 395803 Instant Karma
Instant Karma's picture

However, when Giselle Bundchen starts demanding payment in Gold I have to sell that.

Fri, 06/04/2010 - 17:53 | 395989 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1220 Instant!

I hope the only way my gold leaves me is when I give to my kid, maybe grandkid someday...?

Fri, 06/04/2010 - 19:12 | 396126 RockyRacoon
RockyRacoon's picture

The future of precious metals is secure as long as this analysis holds true:

...I've only talked about public debt. Usdebtclock.org estimates total personal debt at $16.6 trillion, mortgage debt at $14.1 trillion, consumer debt at $2.5 trillion, and credit card debt at $848 billion. (Amazingly, of the four types of private debt, only consumer debt is shown at usdebtclock.org as expanding; the other three categories of consumer debt are contracting. I wish I could say the same about public debt!) So, on top of all of the public debt, each US citizen, on average, owes privately $53,525. Adding the public and private debt together totals $117,181 per capita, or a total Debt/GDP ratio of 248% (see Table 3). Wow! Now that's a lot of debt!

Finally, the unfunded liabilities of Social Security and Medicare are nearly $109 trillion, or about $352,000 per US citizen (see usdebtclock.org). That number alone is a Debt/GDP ratio of 745% and is so outside the realm of rationality that I didn't bother to put it in the table. Clearly, the recipients of these promises can't possibly hope to receive such benefits in current dollars. Depreciation of the currency or significant cutbacks in the promises (or both) is inevitable. The recognition of the real magnitude of these irresponsible promises should be enough to cause a loss of confidence in the dollar. In my view, unless the US moves to at least begin to address these issues, that day is closer than anyone might think.

http://www.minyanville.com/businessmarkets/articles/piigs-europe-debt-eu...

Sat, 06/05/2010 - 15:52 | 397144 goldfreak
goldfreak's picture

interesting gold charts

 

http://financialsense.com/Market/wrapup.htm

 

 

Sat, 06/05/2010 - 19:15 | 397358 Thunder Dome
Thunder Dome's picture

Wish they would create a uranium etf.

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