FMX Connect Explains Today's "Comical" Gold Move To Near Record Highs

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Tue, 07/12/2011 - 20:17 | 1449975 living on the edge
living on the edge's picture

I bought more Gold last Friday and again yesterday. Glad I did. 

Tue, 07/12/2011 - 20:52 | 1450060 doesmybuttlookf...
doesmybuttlookfatinthis's picture

I like the junior miners. You can pick them up for chump change. And when gold goes ballistic they will out pace the increase in gold by 3 or 4 times.

Tue, 07/12/2011 - 22:20 | 1450296 living on the edge
living on the edge's picture

Care to share some of your favorites?

Tue, 07/12/2011 - 22:52 | 1450367 Crisismode
Crisismode's picture

You are dreaming and smoking great dope.


The miners are dead meat, and you know it.


Stop talking your weak book.

Wed, 07/13/2011 - 01:09 | 1450596 Whalley World
Whalley World's picture

Shit's real,

them miners are set to make folks rich for those in early (ten years on,still early)

when the crap comes down, those golden claims on ounces will catch fire.

Wed, 07/13/2011 - 01:44 | 1450630 Oh regional Indian
Oh regional Indian's picture

I think for a while, starting sometime next week, everything, including gold and silver, are going to be in deep doo. A buying opportunity of a life-time perhaps.

I see a super-deflationary snap, short and brutal and then the hyper-I episode begins.

By the way, not sure how many people are followign the great temple treasure discovery in India, but they've discovered over 3 tonnes of gold already.

I say the three swimming pools full theory is total rot. Gold will tank, it's rare, but it's been mined for millenia.



Wed, 07/13/2011 - 08:02 | 1451056 Reptil
Reptil's picture


It's not a question of rarity, it's value is increasing in reference to the £€$ because it's fungible, accepted money everywhere. That it's use and ownership is widespread is one argument for it's use as (intermediate) currency. (Before the next system of fiat, after the collapse is put into place.) For those that want to stay liquid, in a deflationairy collapse, there is not equal currency, in that no other has no counterparty risk, the Swiss Franc included.

Now silver, there's an interesting case. A tandem with gold for currency? Or "just" a valuable commoddity? There's not that much of it available above ground. It too is widespread though.

There may be a spike in the dollar, next week. Then it'll be time to "back up the truck" as people here put it so aptly. I'm not counting on it. Shit is hitting the fan, and the yellow metal is a life-boat. Once it's gone, that's it.



Wed, 07/13/2011 - 00:41 | 1450539 DoChenRollingBearing
DoChenRollingBearing's picture

@ living,

Good for you!  I wonder if there will be any physical left upon my return to the USA...

The lowly Bearing has been here in Peru on, well, bearing business.  So, I have not had the opportunity to have purchased from just above $1500 of not long ago.

But, we had an extremely positive meeting today with Mr. Maekawa.  I will post details at my blog, with luck tomorrow (Weds.).  A long and arduous meeting, but very positive!

I know that some ZH-ers have asked to be linked to my blog, and I will get to that when I am at our ¨secure¨ computer at the office here in Lima.

I can hardly wait to get back in the gold game when I return...

Wed, 07/13/2011 - 08:27 | 1451121 living on the edge
living on the edge's picture

The world just moved 10-steps closer to the edge. Can the monetary magicians pull the world back from the brink? That is the question for the ages.

Tue, 07/12/2011 - 20:19 | 1449982 mynhair
mynhair's picture

Why was it comical?  Cuz it didn't hit $2000?

Tue, 07/12/2011 - 20:27 | 1449997 tmosley
tmosley's picture

Because there was no reason for it, except the reason that has been in full view since 2008, but no-one wants to accept that, but they apparently do in fits and starts without admitting it.

Wed, 07/13/2011 - 00:43 | 1450546 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1560

(or whatever, I have been working too damn hard here south of the equator these recent days to keep up!)

Tue, 07/12/2011 - 21:23 | 1450136 SheepDog-One
SheepDog-One's picture

$13 gold rise 'comical'? Why arent they calling 100 P/E stocks comical?

Tue, 07/12/2011 - 21:31 | 1450148 Tejano
Tejano's picture

Maybe because it's like slapstick - predictable. You know it's gonna' happen. You see it coming. When it goes 'BAM', you laugh anyway.

But here, unlike in slapstick comedy, there may be actual physical damage inflicted.

Tue, 07/12/2011 - 20:20 | 1449983 BC6
BC6's picture

Gold is transitory

Tue, 07/12/2011 - 21:35 | 1450156 goldenbuddha454
goldenbuddha454's picture

so are my huevos

Tue, 07/12/2011 - 22:54 | 1450372 Crisismode
Crisismode's picture

Huevos Rancheros. Spicey and hot. Smack the lips now.

Tue, 07/12/2011 - 20:23 | 1449990 Hannibal
Hannibal's picture

Keep stacking.

Wed, 07/13/2011 - 02:00 | 1450649 mr_T
mr_T's picture

Bought more buffalos two weeks ago and those nice 5oz silver national parks... APMEX rocks they ship international.. small plug... Hard to find a good EU online dealer... About 70% pm now.. loaded up on some miners as well. Average up.. I will buy more Au above 1650..

Tue, 07/12/2011 - 20:25 | 1449994 chump666
chump666's picture

More comedy.  The clowns of the market (China and Japan) are begin the intervention cues.  Japan on the AUD/JPY cross and China saying it will drop a trillion yuan into various economies.

Tue, 07/12/2011 - 22:56 | 1450377 Crisismode
Crisismode's picture

China and Japan can carry the water from one side of the ocean to the other, and you know what? Sea level remains the same.

Tue, 07/12/2011 - 20:28 | 1449998 spinone
spinone's picture

I'm afraid a bout of deflation when the monetary interventions finally fail will kick the legs from under all asset classes.

Tue, 07/12/2011 - 20:38 | 1450021 Kali
Kali's picture

Thats when ya back up the truck!

Tue, 07/12/2011 - 21:40 | 1450177 mayhem_korner
mayhem_korner's picture

It's still about relative purchasing power.  Doesn't matter if gold drops to 500 FRNs per oz  if it still is able to purchase 300 gallons of diesel.

Tue, 07/12/2011 - 23:33 | 1450437 FeralSerf
FeralSerf's picture

A Sopwith Camel won't run very well on diesel.

Tue, 07/12/2011 - 20:29 | 1449999 caerus
caerus's picture

New highs?  Adjusted for inflation?  long the all-star game...out

Tue, 07/12/2011 - 20:29 | 1450001 ddtuttle
ddtuttle's picture

Small correction: gold is not a dollar denominated asset, the dollar is a gold denominated asset.

Tue, 07/12/2011 - 21:03 | 1450085 ATM
ATM's picture

as are all currencies

Tue, 07/12/2011 - 23:36 | 1450430 cranky-old-geezer
cranky-old-geezer's picture

Neither is correct.

It's a forex thing.  GOLDUSD, GOLDEUR, etc.

Gold has been true money for 5,000 years.  Paper currencies are a flash in the pan.  They come and go, as will the US dollar, as will the Euro, etc.

Gold and silver are the only constitutional money in America. And no, it doesn't mean gold-backed paper nor silver-backed paper.  It means gold and silver.  The actual metal.

Tue, 07/12/2011 - 20:31 | 1450002 jack stephan
jack stephan's picture

I get "Youre overbearing", fine, great.

"Ok, well why is it nation after nation is buying gold stockpiles?"

Duhhh, which way did he go, boss? Best Mel Blanc voice

Tue, 07/12/2011 - 20:31 | 1450003 SilverIsKing
SilverIsKing's picture

Gold tastes great too.

Tue, 07/12/2011 - 21:52 | 1450210 Frankie Carbone
Frankie Carbone's picture

Yes it does. One thing you might want to do when drinking Goldschager is to recycle the gold that passes through your system.

Think about it. You've got a case of Goldschager stowed away for sippin'. It's late 2012 and you're watching the human tragicomedy play out from your front lawn (AR-15 at your side of course).

And you're sipping a Goldschager. Gold's price is out of the stratosphere.

Ahh, but a problem...

Later than evening, or with the morning dump, you're gonna crap out enough gold flakes to buy a month's worth of groceries. Perhaps even a side of beef.

Might want to figure out how to get those flakes out of your steamy pile, if you know what I mean.

Tue, 07/12/2011 - 23:00 | 1450384 Crisismode
Crisismode's picture


Do it on the front end.

Pour the Goldschlager through a coffee filter BEFORE you drink it.

1. You still get all the alcohol into your belly.

2. The coffee filter is still there in the morning with all the flakes intact.



Wed, 07/13/2011 - 08:06 | 1451072 Reptil
Reptil's picture

you actually thought about this ahahaha


I'm heading for the liquor store now...

hahaha wat a nice waste of time.

Tue, 07/12/2011 - 21:53 | 1450223 MagicHandPuppet
MagicHandPuppet's picture

Less filling!

Tue, 07/12/2011 - 20:32 | 1450005 Helena Bonham-Carter
Helena Bonham-Carter's picture

  And then believe me, my love is as fair,
  As any mother's child, though not so bright
  As those gold candles fixed in heaven's air:
    Let them say more that like of hearsay well,
    I will not praise that purpose not to sell.

Tue, 07/12/2011 - 20:33 | 1450007 apberusdisvet
apberusdisvet's picture

Within a month we will know the effects of the PanAsian Exchange; let's hope the Chinese go all in.

Tue, 07/12/2011 - 20:43 | 1450031 DavidPierre
DavidPierre's picture

One more huge reason the New Pan Asia Gold Exchange will end Western naked shorting. The Asian Exchange plans to open with 100 million ounces of silver in hand.


This alone could easily cause severe silver shortages that will directly affect the ability of all naked shorts to cover.

First, the new exchange will have rules against naked shorting any contract and unlike the West, the rules will be inforced with severe penalties for braking them.

Secondly, when the world's traders see that naked shorting will not be tollerated on the new exchange, honest traders will flock to the new exchange and abandon the corrupt Western Exchanges.

Third, the growth of the new exchange will force all exchanges to clean up their act or lose most volume and all trust. Investors will embrace the exchange they trust the most.

Fourth, All demands for delivery will be honored with actual bullion, not cash. If redemption is fast, all investors will take notice and a huge amount of bullion could quickly transfer from the West to the East causing the Western exchanges to implode.

Tue, 07/12/2011 - 20:59 | 1450075 doesmybuttlookf...
doesmybuttlookfatinthis's picture


Tue, 07/12/2011 - 21:44 | 1450185 Tejano
Tejano's picture

Trust the party bosses to run a "clean" market? Maybe, maybe not. But who needs aircraft carriers when you've got a PAGE?

Tue, 07/12/2011 - 21:40 | 1450178 cosmictrainwreck
cosmictrainwreck's picture

and if they implode.....good riddance. sleazy, lyin' bitchin' hoes

Tue, 07/12/2011 - 21:59 | 1450243 Saxxon
Saxxon's picture


Tue, 07/12/2011 - 22:58 | 1450380 bakken
bakken's picture

Gee, when was the last time anyone held an honest Chinese Fan-tan game over there?  The Chinese come over to Vegas to play here since they only have to worry about the actual bad odds not the "Big Fix".

I will be truly shocked if the Pan Asian exchange doesn't collapse within two years.  That's just the odds for new 'financial" product.

Tue, 07/12/2011 - 23:39 | 1450448 Manthong
Manthong's picture

" the world will only supply about 979 million ounces this year from mine and recycling of scrap, of which it is estimated that 657 million ounces will be used up for non-investment purposes so, in effect, that leaves only 322 million ounces available this year "

Your guess is as good as mine.

I just know I'm not letting go of my ounces until the G/S ratio is in the teens and maybe not even then.

Wed, 07/13/2011 - 00:29 | 1450517 Vint Slugs
Vint Slugs's picture


Rate you -1. 

The hundred mil oz will come from mainland China.  They're the big short that the conspiracy theorists just don't understand.  Short -- but not naked.

Wed, 07/13/2011 - 00:49 | 1450556 DoChenRollingBearing
DoChenRollingBearing's picture

Always insightful DavidPierre, thanks!

Tue, 07/12/2011 - 20:33 | 1450008 static
static's picture

nice po in the miners today

Tue, 07/12/2011 - 20:34 | 1450013 static
static's picture

that was "pop"

Tue, 07/12/2011 - 23:03 | 1450389 Crisismode
Crisismode's picture



Looked like "poop" to me.

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