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Gold Breakout Refuses To Stop As Imminent Fed QE 2 Expected To Confirm Double Dip Deteriorating
We apologize for pointing out the inevitable, but gold is now breaking out and the usual LBMA gimmicks to slam it down are no longer working. Is the price suppression regime over? And that worthless atavism of a bygone era, stocks, continue to surge on increasingly bad news, confirming that all trading is now driven on expectations of what the Fed will do next Tuesday. If Morgan Stanley is right, expect gold to hit $1,350 in under 7 days. Additionally, should this occur, it will merely confirm that the double dip is accelerating at an uncontrollable pace, and that without the Fed's intervention the economy will tumble. Time to end all this "is there or isn't there" a double dip bullshit already.
And here is Nic Lenoir with his take on QE. We believe the catalyst was not some Goldman announcement as widely misrepresented by the WSJ blog, as this has been the case for a long time, but the MS expectation of QE next week.
The market is aggressively pricing up everything that is USD denominated today. This maket has the sweet scent of quantitative easing. Equities have reversed their overnight / early mornign weakness, US Treasuries are up, and the dollar index is getting pummeled, while gold is accordingly screaming higher.
A few things to point regarding the Dollar Index: the 61.8% and 76.4% retracement since the lows of August 6th are at 81.41 and 80.86 respectively, and the C=A from the local highs at 83.56 stands at 81.26. Therefore we have reached a patch of support here which will be crucial to determine the future direction for the USD. The acceleration lower today could be in part due to a short-term H&S pattern which neckline was sitting at 81.91.
GS is out today claiming the Fed will announce the next round of asset purchases in November, and there is the FOMC next week. So clearly people are getting ready for the free money bonanza. Tough luck for USDJPY which I was myself a proponent of buying as between the results of the Japanese election and the market pricing in Quantiative 2.0, we have expectations of tighter monetary conditions in Japan and looser conditions in the US being priced in. When it comes to the beggar's game, people expect the Fed to show absolutely no shame.
Let's watch the dollar index closely because it will hold the key to all markets... as always USD liquidity is key to the world and is the number 1 driver of all asset prices. Until next Tuesday however it seems premaure to pre-empt. Maybe someone knows something I don't!
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You live in the concrete jungle of city savages, you need body bags; not mres!!
ahh I have a guilty confession to make, you guys actually made me laugh before i remembered you are all preparing to murder your neighbours.
i too wish it were fiction, but you really are getting ready to do it huh?
I believe that's called self defense. There is an important difference.
but your neighbours don't have guns?
and apparently in your fantasy they are starving?
So shoot 'em and take their stuff is what you're all about is it?
As you macho guys like to say, as if you're in some bad hollywood flick, 'it's how you roll?'
Get back in that cage! No. That is not the objective. It is merely to preserve one's own life and family. If someone proposed looting his own neighborhood then I'm not in his camp. Your characterization of murder would be correct.
Shotgun - Pistol grip, 12 guage, accepts 3" magnums or shorter rounds. I highly recommend the Mossberg Cruiser (pistol grip and heat shield).
Buy 00 buckshot - I'd suggest standard length - be careful with the 3" mags, they kick like a banker paying out a dime of bank money for a bank error.
Regarding gold - I never recommend putting all eggs in one basket - but, other than gov. intervention, it's hard to see how Au is anything other than a great bet.
ZeroHedge: Come for the financial analysis, stay for the weapons chat.
LOL
+10
Not my recommendation. Pistol grips look cool and all but have you ever tried to smoothly shoulder and fire a shotgun with a pistol grip? Not really possible. Consider that your shotgun should be useful for hunting birds as well as two legged tree rats.
I picked a semi-auto that I could also take to the range for skeet, etc. Fun way to practice.
Get silver coins first, imho, as you will be able to use them in barter more likely (smaller denominations).
Don't mess around lynnbee,
http://www.barrett.net/firearms/model82a1
My Grandmas got one!
"We believe the catalyst was not some Goldman announcement as widely misrepresented by the WSJ blog, as this has been the case for a long time, but the MS expectation of QE next week."
Can't it be both?
To add, Gold and USD volume had dramatic increases at approx 9:50 and 10:20.
The WSJ blog article was released 10:10.
Harvey Organ has been reporting every day more supply problems at Comex. Customers are getting high premiums to accept delayed delivery. Especially in silver. One of these days it's a massive short squeeze and a moonshot for silver. We are lulled by the cartel smack downs thinking it won't happen until some future crisis. The supply crisis is here already. All the other factors will soon pale into irrelevance.
I agree. Silver separated from gold about three or four weeks ago. They used to track identical. I've been suspicious ever since that the only possible reason for the separation could be that the physical stocks ran dry. There is still quite a bit of silver in the supply chain, but as that is delivered out the price will continue to move up independently until there just is no more. Then watch for the "scandal", and the "Shocked! I'm so shocked!", interviews on CNBC accompanied by silver moving up $20 a day as the true market price expresses itself. Gold will follow silver out the gate as all confidence in "the system", is lost.
I love it Bloomberg just had some shmoe on that said gold is finding resistance at record highs.
Classic. What a buffoon. If you have nothing to say, keep your mouth shut.
Do you know who said it, so that I can ignore their analysis in the future?
comment directed @ Temporalist
No I was half paying attention but Mark Crumpton was the interviewer it was only a couple of minutes not a big segment.
Johny,were sorry.why don't you come back home.we worry
Good thing, where have you gone, doo doo doobie doo
He's at the smartest trader on zerohedge awards show. Vanity Fair will be talking about his dress for a week.
WTF is up with euro today over 1.30
1.3 or 3.1 is meaningless its all just paper-to-paper
Yankee dolla got problem.
Bangladesh buys 10 tons of IMF gold ...
Dollar whacked - gold up.
The Sagittarius Factor in full force, Monday, today and tomorrow. Usually very positive for metals. For all who care.
Careful here.
That gold chart looks like one of those unheard of stocks that robo post on a big up day. Has anyone seen robo?
Robo is working on a margin call dispute/issue with 2-WAYFX...
"Robo" can take his cartoon parodies of Jim Sinclair and stick them directly up his ass.
But Jim you promised
You got that right!
Crimex has not gone away and the battle is raging as much as ever. More deep pocketed longs I believe have come to realize that the battle will be won in the trenches starting with taking as much physical silver delivery as possible.
If Paulson and entities of his caliber were to start putting more of their metals capital allocations into taking delivery on physical silver and moving out of the primary dealer custodial based gold ETFs, where the gold can be used to manipulate the exchanges prices, and into ETFs like Sprott, or just taking deliver of physical gold, they would have much more influence in the battle against crimex in my opinion.
The battle will ultimately be won when the call in the market is "show me the silver" and "show me the gold" and the derivatives are seen for what they are.
So Right.
Most of those guys are longer stocks then gold. Gold is nothing more then a hedge for them, and they are still in the 'system'. They would not want to start a run...
Just offloaded my DGP.
34.87 a good price:
http://stockcharts.com/charts/gallery.html?s=dgp
DZZ>5.5 and 10.03 good prices also:
http://stockcharts.com/charts/gallery.html?s=dzz
Nows don't go taken possession of any of dat barbaric real money gold/silver! Tis in a bubble and paper is a real monetary store of value as we's printing it to worthlessness! hehehehehehehehehehe
at times like this I like to quote my favorite gold bug, yukon cornelius:
"GOLD!
GOOOOOOOOOOOLLLLLLLLLLLLLLLLDDDDDDDDDDD!"
You had your ZH birthday last week stoverny.
Happy ZH Day!
Yes! I was singing that silver and gold song from Rudolf at lunch! That is funny.
Does anyone else think that Bravo has a locked trunk full of physical gold in his dorm room? Maybe he is pulling a Goldman trying to drive down the price?
My opinion is that the increases we are seeing in equities are also a form of dollar offloading. Even though the stocks are dollar denominated, owning shares of a company might be seen as better than owning a bag of the steaming green shit. My gut is telling me to empty my bank account because the FDIC won't really be there for all of us. I have done home improvements, as well as stock up on necessities and buy PMs. I almost vomit when I hear the word "bonds". I am not an educated investor, but have done quite well following my gut. The same gut that told me to drop Econ 101 while in college.
I think the great liquidation will crush stocks, as people sell anything liquid to pay debts, build cash, etc.
Hyper-deflation and hyper-inflation are the same to me...
brilliant...
Miners will likely get hit, then rebound nicely. Good stocks kept value through the Wiemar years.
Its not just Gold going up,Sugar up today by 4%.Something is going down and it ain,t commodities.
Posted: Sep 14 2010 By: Dan Norcini Post Edited: September 14, 2010 at 2:10 pm
Filed under: Trader Dan Norcini
Dear Friends,
Today is a case of being careful what you wish for – the Fed has pulled out all the stops in an attempt to avoid a deflationary trap tied to the inception of the credit crisis that broke loose in the summer of 2008. Since then they have flooded the system with liquidity through a process dubiously referred to as Quantitative Easing. They have also loaded their balance sheet with worthless loan paper and shoved interest rates practically to zero.
Not to be outdone, our illustrious administration has saddled us with enough debt at the federal level to last three generations all in the name of “stimulus”.
The result – they have gotten their wish – sadly for all of us, who actually have to live with their damn stupidity, they have let slip the dogs of inflation who have bared their fangs and are now ravenously devouring the hopes and dreams of the middle class in this nation.
The funny money has made its way into the commodity sector driving food prices to unseemly high levels once again just as what happened in 2008. Corn is now within spitting distance of $5.00, wheat is more than $7.00, soybeans are over $10, sugar is over $0.24/pound, cotton is closing in on $1.00, coffee is up near $2.00 pound wholesale ( a 13 year high), cattle are just shy of $1.00/pound, bellies are trading over $1.50/pound for fresh product. In short, the consumer is on the verge of watching his or her’s disposal income decimated by high food prices at the very time that a record number of Americans are on food stamps and are either unemployed or underemployed.
I shudder to say it but based on what I can see of the price action across the commodity sector today, an evil has now been loosed upon the land that portends the eventual ruin of the middle class.
The only bit of saving grace is that energy prices have not YET begun moving up alongside the rest of the commodity complex. I think it is only a matter of time however before the crude complex gets involved. When it does, home heating bills, home cooling bills, industrial energy costs and gasoline prices will join the list of soaring costs nationwide.
The one-two knockout punch of higher soaring food cost and higher energy costs will finish off the consumer whose wages have been stagnant for longer than I can now remember.
Make no mistake about what you seeing, especially with the price action of gold and silver. Both metals are signifying a loss of confidence in the Dollar and particularly in its management team. It is ironic is it not, that any supposedly friendly economic news now results in waves of Dollar selling whereupon in times not that far past, any negative news yielded a huge inflow into the Dollar as a safe haven. Good news – Dollar goes down; Bad news – Dollar goes up.
USD at 81.76 in March 2008 uptrend from 70.70 still targeting 115...
http://stockcharts.com/charts/gallery.html?s=%24usd
You're nuts if you the the USDX is going to 115.
Cramer: "Gold is going to $2000".
A-cups Burnett: (disbelief)
Mr Turd Ferguson has inspired me to write haiku:
"Bearing's Take on Turd's Comment"
Gold is going up
A-cups Burnett: (disbelief)
I say: Gold bitchez!
hehehehehehe! Keeping is good sense of humor as that's all these rat basturd dead head fed goonzi's plan on leaving the citizens!!
http://finance.yahoo.com/news/Gold-Prices-Surge-Top-tsmf-2513433551.html...
Shocked to see that kind of crazy-talk on Yahoo Finance... i'm surprised it hasn't been censored out.
That is my kind of crazy...
WARNING!!!! CRAMER JUST CALLED THE TOP FOR GOLD....
He said gold's going to $2000 and it's for real.
Time to short
Should we be using reverse psychology, or reverse-reverse psychology?
Should we even care what Cramer has to say?
Tell me if I am wrong, but I believe Cramer is also telling people to use ETFs to 'invest' in metals. You know, the same vehicle designed to suppress the demand for physical metal, while allowing the target to believe he is still in the game.
GLD @ 124.59 a very crowded trade...
It'll be crowded when my dumbass neighbor and the checkout clerk at Kroger tell me they bought some.
even cnbc headlining can't bring themselves to mentioning the word 'gold'
"For the Bad News Bulls, Adversity Is Opportunity"http://www.cnbc.com/id/39170579
Physical is so easy to buy and hold. Play the miners for the speculation, keep the real stuff for saftey. It is time to become good friends with your local coin guy,Junk US silver for my taste!
It's not just gold, either! Corn, sugar, and cotton all set new highs today! Just look at their charts and tell me their's no inflation!
Hey S Benard,
You don't have contact info on your profile. E-mail me.
GL
Corn, sugar pulled out of the CPI calc and replaced with items on the dollar menu at McDonalds....
HI-HO SILVER! AND AWAY WE GO!!!
it's finna catch up to gold- it's out of sync and has been laggin.
bet!
Been holding Ag long and hard for over a decade....Adding along the way. I share your enthusiasm!
I wrote a series of articles for Seeking Alpha regarding suppression on gold and silver.
I expect, based upon industrial demand for silver, for the price of silver to match gold in the future. World inventories of silver are precariously low and current demand outstrips supply. The supplies of silver to gold have already inverted from historical norms; the price will eventually follow once the suppression schemes finally fail.
http://seekingalpha.com/article/223037-gold-and-silver-market-suppression-failures-flash-buy-signal
http://seekingalpha.com/article/223091-gold-and-silver-market-suppression-failures-flash-buy-signal-part-2
http://seekingalpha.com/article/223301-gold-and-silver-market-suppression-failures-flash-buy-signal-part-3
http://seekingalpha.com/article/223504-gold-and-silver-market-suppression-failures-flash-buy-signal-part-4
http://seekingalpha.com/article/223993-gold-and-silver-market-suppression-failures-flash-buy-signal-part-5
You can always trade ammo too, so if you spot a hot deal on 9mm or .45 ammo pick it up, you might be able to trade it for the caliber you need later.
You got that right. I pick up a few boxes of .223 at Gander Mtn when they run specials. It's crap ammo good maybe for practice -- or trading when needed. I have a Taurus 45/410 at my desk and I'm thinking of buying a 410 shotgun just for grins. Might be good for small game hunting to liven up the campfire. I keep 2 rounds of 410 slugs in the first 2 chambers of the Taurus, followed up by some nasty 45s just in case you didn't get the message. Daily carry is a Ruger LCP, not powerful but it's better than nothing. Can't carry bigger because I can't hide the print.
That's fucking beautiful, Rocky. Protect and defend, baby!
Forgot to mention the Ruger Mini-14...
http://www.oklahomaconcealedcarry.com/images/mini-14_as30.jpg
God forbid we ever need our firearms, Rocky.
Lets all drink a toast to a peaceful revolution.
Fed to purchase $27 billion in Treasuries over the next month:
http://www.newyorkfed.org/markets/tot_operation_schedule.html
They just bought $3.4 billion yesterday.
For the month 9/7 - 10/6 they will have purchased about $34.5 billion.
So over $1 billion per day, including weekends. To keep interest rates crammed down.
As of January 2010, China held $843.7 billion in Treasury bonds, down from $939.9 Billion in July 2009: http://www.ustreas.gov/tic/mfh.txt
Who needs gold when you have lead,
ammo
Settle down guys.
Who are you going to shoot? FED bank presidents? Congress? No, they'll all be in Dubai.
Zombe hordes, mindlessly stalking you like in a FPS video game? No.
Your fellow Americans, victims of the system like us? Looking for food and medicine for their children? Probably.
Lets all toast to a peaceful revolution.
peaceful revolution = clean coal, LOL!
If we really do believe that hard times are coming, we should not only prepare to help ourselves but to help our community. We can hang together, or hang separately.
Did I miss something. CNBS this morning showed a graphic with the caption, gold up 27% year to date. The next minute, another graphic with the caption, GLD up 12% year to date. Was that a mistake? Is GLD lagging that badly? Too late at night to check the chart and do the calc. ZzzzzzzZZZ....
I found lots of interesting information here. I love zerohedge.
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