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Gold Break Out In Progress
Perhaps those 2 days of December 1,800 gold call purchases we discussed yesterday indicated someone (not Doug Kass mind you), knew something...Gold has just surged by $20 in minutes. Unless Blythe can find a way to contain this, this could get very ugly, very fast.
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Wasn't Math Man bragging about his massive silver put position yesterday?
CNBC BREAKING NEWS:
TRANSLATION:
QE until the chinese allow the yuan to rise 25% (vs. USD) and every public pension fund in the US is "fully funded" (with stocks priced in worthless USD'$)
People keep opining that QE's primary purpose is to force the Chinese to revalue their yuan.
This is obviously a nice little side-benefit of QE, but the primary motivation is to enable the banks to firm up their annihilated balance sheets so the ponzi can continue. Everything else is secondary.
BJ: they're zombies, jim. won't happen, IMO. i saw the film. so, i know where to direct you: ask Buffy. this isn't scooby doo.
however, as zombies, they are able to pass the dinero thru, just as if they were closely-held, which, in fact, they probably are, if not de jure. if buffet's talking about about taking his squid private, perhaps it's b/c GS might have some neg. consequences when his AAA ratings front gets ew-scrayed. looks like the chinese are gonna end up doin that "manufaturing", too. they're the only credible ones left on the planet!
jim, consider this question, if you would, please:
if the goobermint doesn't QE, where is the money gonna come from? there is not enuf money on the planet to sell the 'bonds' without wiping out quite a bit of the 'economy'. so, our leaders, everybody's leaders, i might add, are printing, which frees up the remaining paper for the needs of the drinking class.
however, as we are seeing, this leads to problems in the eating class.
if no QE, then the goobermint will suffer much higher rates. they go to market, they bring the roof down. they take that liquidity for themselves, everybody else's well goes dry. and, w/out QE, we end up with (my new fave word) default.
yes, the ponzi must continue for a while longer, but i don't see the zombies making it back. anyone in his right mind will see this as a buy signal, i'm sure.
that IS the can they're kicking down the road, isn't it?
default?
Yes, I agree, I should have said: so the ponzi can continue, a little longer.
Who knew mummies could use Bloomberg terminals?
ankh ankh
You can't eat gold! But you can eat cardboard:
http://www.youtube.com/watch?v=Lj9OGCcYTJM&feature=player_embedded
It's old video, but I doubt much has changed.
Robo must have blood coming out of every orifice. Just read the tape.
No, one of my IRA's from 2003 and 2004 are still loaded up with these miserable mining stocks.
I'm desperate to get a good rally so I can unload this toxic waste and buy some retail and bank stocks next time the market gets washed out.
Just havin some fun,keep up the great charts.
What "toxic waste" are are holding? You mean like AEM at $10 in 2003, now $72, or Randgold $6 to $80? SLW from $3 in 2005 to $34 today?
You need to focus on good companies Robot. I thought you were good at that? Sounds like you don't know what you're doing to me.
Everyone should keep in mind that this is the paper price, and that with all the market interventions we have seen, we will likely see volatility ramp up to unity, with huge price swings in both directions. My guess is that it will eventually break downward toward zero as the western exchanges go metal insolvent, and cease to provide real metal.
At that point, the price for metal will be 100% "premium", and will be astronomical in today's terms.
I'm as happy as anyone to see the price ramping up, as that means my savings have increased liquidity should I want to buy some big-ticket item, but all should understand that the more the price rises, the healthier this diseased market becomes, and the longer the ponzi and price manipulation can go on.
Sure that's what you meant? Prices ramping up seems much more like a step to hospice care than remission.
I am of the opinion that the spot price can't really go up sustainably. Strong rises like this one will happen, but alongside large dips as volatility reaches unity. Sustained high prices mean that people will be more likely to sell their metal, and the JPM's of the world can simply grab more printed money to buy it up and cover their shorts at a paper loss, which will be shoved off onto the taxpayer. If prices are pushed down, there will be no metal, making metal default unavoidable.
In the event of a metal default, they will lose all credibility, and real metals trading will move elsewhere and we will have true price discovery. Higher prices in the short term delay that. If gold is allowed to rise to $55K+ (assuming no more giant increases in debt), that might allow the dollar to be saved, as gold backing becomes a possibility again.
To an owner of physical metals, none of that really matters, though. No matter what happens, your purchasing power is going to go up sooner or a little later. This can't be held off much longer.
And Smailes is, of course, MIA. What a pussy.
Good thing you didn't have any shorts to get blowtorched, eh Smailes?? LMFAO.
The paper bugs are all coincidentally travelling, or at a conference today.
Rest assured the next time Gold takes a spill they will be back to hurl taunts and invective like abusive alcoholics. I sometimes think that a number of people who make a very decent living exploiting the more corrupt corners of modern finance don't take kindly to the running commentary around these parts.
Wonder what the vaults in Geneva are looking like?
ME countries on the verge of collapse. Sovereign wealth fleeing to perhaps several "safe haven" zones...
Massive amounts of Au being relocated.
The elite are securing a seat for themselves once the music stops playing.
Maybe moving around gold will keep the Baltic Dry above triple digits.
Market meltdown in 3....2....1....
Long ZSL right here, right now.
Allow me to timestamp that for ya.
My my, that 'ultrashort' shit does move fast. Don't let the stops hit your ass on the way out.
Bonne Chance!
That's entirely impossible with Ben printing stocks... money out of thin air.
"The Russell view - It's virtually impossible to successfully time in-and-out trades during an ongoing primary bull market. Usually what happens is that the trader has moved out of the market just as the bull trend resumes. Thus, the bull market does what it's supposed to do - advance while leaving most traders and Johnny-Come-Latelies behind."
Richard Russell, Jan 26, 2011
"It never was my thinking that made the big money for me. It always was my sitting."
Jesse Livermore
Jesse learned the same lesson that Richard is sharing with us - take a position and wait for the primary trend to fully express itself
the primary trend in gold will continue for another 3 to 10 years
Paging Mr. John Nadler of Kitco. Paging Mr. Nadler. This is a margin call...
Is Kass is covering his ass? What a spike at 12:00
The endgame is here. Checkmate in 3.
More like stalemate in 3.
The thermonuclear variety.
Smailes is the genetically produced gorgon from a mating of Johnny Bravo and Robot; soon to be featured in a porn movie starring Blythe and Rachel using solid gold and silver dildoes on each other.
"Wrong. You can eat gold. You just will be shitting gold as well. That's its beauty: it cannot be converted into crap by the system."
Bellysnort !!!
You guys (and the state of things in general) finally got me moving I just made my first purchase of physical silver! I even talked the wife into it! And yes, it feels good... now where's my tracking number...
The highly polished rounds and bars are fantastic to look at knowing theyre immune from the FED travesty going on in equity and grains markets. Ive got a nice black felt rug on my desk where theyre all lined up.
I bet. I intend to buy more each month by putting aside funds which used to go into the stock market...
Well done. The first step is the hardest.
Precious Metals are real money. End of story.
Good luck with your future purchases.
Upon seeing the flash smash in gold, Robo and Spalding just keeled over puking up blood!
I still think we need a solid move above $1360 to 1380 to put all this in the rear view mirror. After that....buh bye gold bears.
Impressive reversal.
The PigMen did a classic shakedown on all the CIGA's, took them all to the cleaners, then went long.
Typical pattern played out over and over.
Now let's see how GDX handles the upcoming 50-day.
but Robi, you told us Gold was going down
LMAO, nice inversion!
DaddyO
What, no boner charts today? Just a backhanded slap at Sinclair?
Well, that is Robo's MO on days like these.
Yep and not only did they mastermind it and execute it perfectly. They did it LIKE A BOSS.
http://www.youtube.com/watch?v=NisCkxU544c
Covered flat. Not descending fast enough. Worried.
If you loaded up long on ZSL, you should be worried.
Tyler,
I've been trying to understand when the inflection point would be when silver, at the COMEX, would experience a default. In following discussions here and on numerous other blogs, it always seems like default is "imminent" yet it never happens. Why?
Like everyone else, I've been trying to put the pieces together. Below is my hypothesis (just my opinion):
The silver pyramid:
[Registered Silver => Eligible Silver] => ETF Silver => OTC Paper Silver
In my opinion, registered silver would be the most secure and paper silver would be the least secure. If this is how the pyramid works, below is my guess where the cracks in the silver would start first.
#1 Registered Silver - This would be drawn down Eligible silver would be pumped up; to maintain the appearance that total vault silver was unchanged.
#2 ETF Silver - This would be drawn down to backstop for eligible silver
According to the COMEX, their total silver inventory consistently stays about 100+ million ounces. (http://www.cmegroup.com/trading/energy/nymex-daily-reports.html#warehouse)
Yet, what is interesting is the ratio between registered and eligible silver continues to change. Registered silver continues to drop.
On 8/6/09 it was 62.5 million ounces
On 2/12/10 it was 47.4 million ounces
On 2/1/11 it was 43.5 million ounces
https://marketforceanalysis.com/index_assets/COMEX%20Inventory%20Shows%20Alarming%20Trend.pdf (page 2)
http://www.cmegroup.com/trading/energy/nymex-daily-reports.html#warehouse
My guess is that the OTC silver would be used as the pricing regulation engine and registered silver would be used to put our fires, while eligible silver is used to keep the "appearance" of all is normal.
In my opinion, the eligible silver is pretty straightforward to me. The only issue would be if it was encumbered by someone that is not the true owner. Or, is it being double counted somewhere.
Given the front-month open contracts for silver, it would appear that a potential default could happen at any time. Why? Because of the # of open contracts represent a multiple of the registered silver in inventory.
(http://www.cmegroup.com/daily_bulletin/Section02B_Summary_Volume_And_Open_Interest_(Excludes%20TRAKRS)_Metals_Futures_And_Options_2011022.pdf)
If a small fraction of these got held to delivery, then there would not be enough registered silver to meet the contracts.
What are your thoughts?
Where is that fucktard William the Bastard to explain the sudden move up in gold?
Maybe trying to pull his head from his ass? Bueller? Bueller?
where is the Smailles douche?
he was so sure gold was over
Yeah and the genius MathMan who was bragging yesterday about his massive silver put position.
"traders scaled back their ideas of future asset purchases"
-Ben on QE2 today
Rrreeeaaaaaaally?
Dang it! This worries me! We were planning to put more into gold but all our money is locked up in other things right now!
Starting to get really depressed lately that things are going to implode sooner than expected and our family will be totally screwed :(
I'm pretty well positioned but there are gaurantees in "implosion." Frankly the "al Qaeda" terror threat on Wall St. is the most ominous thing I've heard in a while --- and not because I believe its real.
even though this is a bounce to $1375 target-resistance, better news is gold confirm botton and now is more bullish than ever. Gold next resistance range will be $1392 and $1420..after that, new highs around $1600-$1700, 22-25% up-trend by June.
While Uncle Ben and company say there there is little pressure in the inflation pressure cooker, the rice is indicating otherwise and the Chinese don't seem to be buying that argument either. What the Chinese People seem to be buyin in ever increasing quantities is the ultimate inflation hedge.
Financial Times had a nice article on this:
China on track to become top gold buyer