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Gold Goes Parabolic As Chairsatan Resumes Vendetta With US Dollar, Middle Class

Tyler Durden's picture




 

As Bernanke reminds the world that the one and only weapon in his arsenal is stealth inflation through dollar devaluation (yes, some had already forgotten it, especially all those economists, think tanks, and others who claimed there was no QE3 hint in the FOMC minutes), there is one clear winner: gold, which continues to surge to all time highs and will likely cross $1,600 within the week (if not day), from which point it is smooth sailing to $_,000.

And remember crude and plunging prices at the pump? Kiss those goodbye and thank the Chairsatan.

And the most notable chart: the biggest winner by far today is silver, followed by gold, with the stock market dead last.

 

 

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Wed, 07/13/2011 - 11:02 | 1451759 redpill
redpill's picture

Sometimes I hate being right!  Bastards are going to take us down the Keynesian hole till we're done.

Wed, 07/13/2011 - 11:03 | 1451772 Temporalist
Temporalist's picture

It would appear Ben Bernanke hates being right 99.99% of the time.

Wed, 07/13/2011 - 11:06 | 1451799 Scottj88
Scottj88's picture

http://thehardrightedge.com/endofdollar/

Federal Reserve Note - 1971-2012.  Massive Inflation on the way...

Wed, 07/13/2011 - 11:14 | 1451861 TheTmfreak
TheTmfreak's picture

Geez, they're killing me with these prices. Can we get QE3 so I can buy more cheap gold and silver.

Wed, 07/13/2011 - 12:06 | 1452094 Ahmeexnal
Ahmeexnal's picture

And meanwhile, the silver "bubble" keeps bursting.
Today silver fell off a cliff again, falling 2 dollars from 36 to 38 in 6 hours.

/sarkozy off

Wed, 07/13/2011 - 13:02 | 1452558 HungrySeagull
HungrySeagull's picture

36 was a beitoch of a support or resistant for silver this month.

Wed, 07/13/2011 - 12:15 | 1452302 RafterManFMJ
RafterManFMJ's picture

I am far from expert, but I don't think this is how it works.

Edit:

ah-ha! I think you are Mr. Sarky-Man

Wed, 07/13/2011 - 11:38 | 1451931 Max Fischer
Max Fischer's picture

I bet all the loyal doomers who follow Turd Ferguson must be pulling their hair out.  

LOL

The summer doldrums (frankly, any commodity in a consolidation phase) will crush and bankrupt you in less time than it takes Bart Chilton to fix his hair. As soon as you get excited and greedy, they'll reverse and kill you time and again until the phase is over. Trust me, you won't miss out on much and you'll save yourself a lot of money if you patiently wait and avoid the temptation brought upon by greed."

http://www.tfmetalsreport.com/blog/1237/doldrum-whipsaw

As discussed here last week, the doldrums almost seemeddesigned to reclaim from you all of the profits you made during the last run-up in price. I know it is extremely tempting to buy this rally. Unfortunately, anyone buying here will likely get whipsawed

http://www.tfmetalsreport.com/blog/1352/beware-whipsaw

- Max Fischer, Civis Mundi

 

Wed, 07/13/2011 - 11:44 | 1452071 fuu
fuu's picture

omg a whole $100?!? How will they go on?

 

btw what is your website's url so we can come bask in your insight?

Wed, 07/13/2011 - 11:47 | 1452086 fiddler_on_the_roof
fiddler_on_the_roof's picture

Really, a Gold/Silver Bug told to sell Gold at lows ?? I am scratching my head.

I told here to buy Gold on July 1st 2011 when Gold was $1485/oz before this $100 run up.

 

         by fiddler_on_the_roof
         on Fri, 07/01/2011 - 13:15
        #1419417

 

         if anyone has money, they should load up on Gold now and continue for a week.

         stocks also will be great.

Wed, 07/13/2011 - 13:18 | 1452615 Smiddywesson
Smiddywesson's picture

Wow, Fiddler, after seeing gold get knocked down and come right back time after time, telling everyone to buy when it got knocked down yet again was real crystal ball work. 

It's not too hard to fortell where PMs will go if the currency is going straight to Hell.

 

Wed, 07/13/2011 - 15:10 | 1453079 fiddler_on_the_roof
fiddler_on_the_roof's picture

Well it could have gone down further and people could be waiting for a better entry point(see Turd's advice to sell at $1485),

especially with all those QE no QE noise people can be confused.

Once you sell, it is hard pshychologically to buy back if price goes above the sell price(waiting to drop).

A good entry point is when you get more Gold for cash.

Wed, 07/13/2011 - 12:01 | 1452196 Pegasus Muse
Pegasus Muse's picture

TF is talking about people with trading accounts.  He's right about the summer chop.  We are going to see more dramatic price swings as real world events overwhelm the Fed's ability to suppress PMs. 

Most TF fans are big "buy and hold" types, not traders ..... though some are both.  They (like me) are loving life and accumulating on the dips.  I suspect there will be more buying opportunities before the Big Ponzi implodes.   

Wed, 07/13/2011 - 12:25 | 1452348 Max Fischer
Max Fischer's picture

I disagree.  If Turd's focus was the "hold forever" crowd, he wouldn't be posting his hourly chart analysis every day.    

Everyone agrees that gold will eventually go higher - there's no need to start a blog about holding gold forever.  Turd clearly spends most his time trying to make short term price predictions, and he got this one wrong - big time.  

This is the same guy who, every day, reminds his readers that the PM markets are totally rigged, then, oddly, posts a 3-hour chart analysis.  If his prediction is right the next day, then all the doomers hail him as some sort of PM oracle.  If the analysis proves wrong, then it was all just manipulation.  This duplicity is not only hilarious, it's a clever logic trap which enables him to be right every time. Those who actually try to trade on this strategy won't find it very useful, and this latest $100 move is no exception. Personally, I find Turd's analysis very junior varsity, and perhaps this is why ZH hasn't added him to their blogroll.  

- Max Fischer, Civis Mundi 

Wed, 07/13/2011 - 12:51 | 1452506 Sheikh Djibouti
Sheikh Djibouti's picture

Turd is special.

Just like all of you are special.

And now it's time to play ... dodgeball.

Wed, 07/13/2011 - 13:59 | 1452781 mr_T
mr_T's picture

TURD did say to buy physical ..which he did and forget the noise.. I also loaded up... Average up is way to go.. very happy I bought miners after reading and listening to the Lords of the bling.. nice call wise ones... He call was right and conservative unlike these other idiots out there encouraging people to take retarded risks..

Wed, 07/13/2011 - 12:44 | 1452467 tmosley
tmosley's picture

Wow, you are a fucking moron.

You can't tell that Bernanke just announced QE3.  This is the action of a single man.  Such things can NOT be predicted.  It changes the position of the markets from "normal trading" to "dollar devaluation trade".

Wed, 07/13/2011 - 13:18 | 1452611 Max Fischer
Max Fischer's picture

Wrong.

Today's hearing had no surprises at all, especially to the ZH and Turd crowd. In fact, the only thing Turd has been right about is that the Fed will continue QE indefinitely, and that's only because he heard it from ZH first.  All we heard today were confirmations of what was already known.

The only thing Bernanke said was, "The possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risks might reemerge, implying a need for additional policy support. The Federal Reserve remains prepared to respond should economic developments indicate that an adjustment of monetary policy would be appropriate."

What did you expect Bernanke to say?  That if weak economic conditions persisted, he would do nothing and that the Federal Reserve is not prepared to do anything?

Today's comments by Bernanke should have been the most predicable comments in HFSC hearing history, especially to a blogger who believes in infinite QE.  To imply that Turd was caught off guard by Bernanke's comments is pure lunacy.

All this notwithstanding, what about the $80 move before today? 

- Max Fisher, Civis Mundi



Wed, 07/13/2011 - 13:55 | 1452765 Max Fischer
Max Fischer's picture

By the way, Mosley, how's "Drill Time" going this week?

LOL

http://www.tfmetalsreport.com/forum/1239/drill-time

Just another doomer goofball. 

Wed, 07/13/2011 - 14:25 | 1452891 fuu
fuu's picture

"Just another doomer goofball. "

 

Rather be a doomer goofball than a trolling sock puppet.

Wed, 07/13/2011 - 11:03 | 1451773 Clueless Economist
Clueless Economist's picture

You mean Keynesian paradise

Wed, 07/13/2011 - 11:23 | 1451909 flacon
flacon's picture

"In the end we are all dead." ~ John Maynard Keynes

Thu, 07/14/2011 - 02:00 | 1455137 ViewfromUnderth...
ViewfromUndertheBridge's picture

from A Tract on Monetary Reform and one of the most misquoted phrases that Keynes ever wrote...he was decrying the passivity of believing inflation would resolve itself in the long term...he was all for action against inflation, knowing how pernicious it is.

Keynes gets a bum rap from "Keynesianism".

Wed, 07/13/2011 - 11:05 | 1451791 Peter K
Peter K's picture

... and end up in Kenya;) Hope the bamster's brother has a few free square feet to spare in that hut of his.

Wed, 07/13/2011 - 11:02 | 1451761 UpperWestSideCa...
UpperWestSideCapitalist's picture

I loved it when the Bernack said gold isn't money.  And there was stunned silence.

Wed, 07/13/2011 - 13:03 | 1452566 francis_sawyer
francis_sawyer's picture

“Gold is Money. Everything else is credit”

-- JP Morgan, shareholder of the Private Federal Reserve Bank

Wed, 07/13/2011 - 11:02 | 1451765 HITMAN56
HITMAN56's picture

me too

Wed, 07/13/2011 - 11:03 | 1451766 kengland
kengland's picture

Bought 10 silver eagles last night. At these prices, the metal is being given away

Wed, 07/13/2011 - 11:20 | 1451893 camaro68ss
camaro68ss's picture

i placed an order for silver last night and stopped it because i thought it was going to go down.

Im a fucking dumb ass

Wed, 07/13/2011 - 11:53 | 1452129 exi1ed0ne
exi1ed0ne's picture

Is it going to go up?  Yes.

Is it going to go down?  Yes.

Does it matter if its going in your safe? :)

Wed, 07/13/2011 - 12:50 | 1452498 Jack Sheet
Jack Sheet's picture

@ camaro: "If you have the asset, the price goes down. If you don't have it, the price goes up"  ...Andre Kostolany, famous Hungarian speculator.

Wed, 07/13/2011 - 13:04 | 1452570 HungrySeagull
HungrySeagull's picture

You sir, need to take a drink and man up.

 

Up, down whatever who the fuck cares as long as YOU own it?

If you DONT own it and sit there wishing in one hand and shitting in the other, you lose.

Wed, 07/13/2011 - 13:29 | 1452670 Smiddywesson
Smiddywesson's picture

Camaro,

You can't be serious.  BILLIONS of people didn't buy silver/gold yesterday, it is statistically impossible for them all to be a dumb ass.  I wish I bought my gold at $400, but I didn't.  So what?  As long as I make a profit, or at least protect myself from the destruction of the currency THAT IS COMING, I win.  If PMs were going to top out here, and you missed your chance, I could sympathize with your feelings.  However, does anyone thing gold will top at $1600, or silver at $38???  With this government?  With this banking system??? 

Stop blaming yourself for bad trades or missed opportunities.  You missed nothing.  Nobody knows where the top will be.  Buy a little now, and if it dips some, load up.  It doesn't matter if you catch the whole move, just get into the move.  The USD being destroyed is a given, that makes this trade risk free.

Wed, 07/13/2011 - 14:04 | 1452776 XenoFrog
XenoFrog's picture

Nah, he's pretty much a dumbass for not pulling the trigger at $32. But that's ok. I'm a dumbass for getting in at $27 instead of $7.

Wed, 07/13/2011 - 11:03 | 1451768 Invisible Hand
Invisible Hand's picture

So much for the collapse of PM.

Should have known that Bernake had to continue dollar destruction.

Have they brought the clowns in yet?

Wed, 07/13/2011 - 11:03 | 1451769 Peter K
Peter K's picture

Ok, you convinced me. He is evil.

An honest individual would go after the governmental discreationary spending if he doesn't get his debt ceiling increase. But not the Chairsatan, he wants our man-child president to go after Medicare and SS. What a douche bag:( 

Wed, 07/13/2011 - 11:16 | 1451870 NotApplicable
NotApplicable's picture

Now, with a notable (mostly marginalized) exception or two, extrapolate that perspective out across DC, and it soon becomes obvious that they are nothing more than the mafia, but with cheaper suits.

Wed, 07/13/2011 - 13:32 | 1452684 Smiddywesson
Smiddywesson's picture

"Now, with a notable (mostly marginalized) exception or two, extrapolate that perspective out across DC, and it soon becomes obvious that they are nothing more than the mafia, but with cheaper suits."

 

Ha Ha NotApplicable, you have the quote of the year.  The banksters are like the mafia, but with cheaper suits.  LOL

Wed, 07/13/2011 - 13:23 | 1452638 Rodent Freikorps
Rodent Freikorps's picture

Give us the debt increase, or granny gets it.

Heh.

I'm sure they think they are sophisticated, but this is nothing more than a mugging, in reality.

Wed, 07/13/2011 - 16:04 | 1453320 Bicycle Repairman
Bicycle Repairman's picture

It is a mugging, but note that the weapon used (granny) is powerful.

Wed, 07/13/2011 - 11:03 | 1451771 nobusiness
nobusiness's picture

This will be the shortest stock hopium buzz yet.

Wed, 07/13/2011 - 12:27 | 1452383 SoNH80
SoNH80's picture

Hopium suppositories wearing off quickly....

Wed, 07/13/2011 - 11:03 | 1451774 HITMAN56
HITMAN56's picture

Red - I thought I was the only one that used that comment...nobody seems to get it when I say it...Fing sheeple always say...why do you hate being right....

Wed, 07/13/2011 - 11:04 | 1451778 cgbspender
cgbspender's picture

Seeing silver up 5.2% is better than sex.

Wed, 07/13/2011 - 11:06 | 1451798 Thadius T. Crunk
Thadius T. Crunk's picture

The sex you have must be different from mine.

Wed, 07/13/2011 - 11:11 | 1451842 wandstrasse
wandstrasse's picture

you do not know how much silver he has.

Wed, 07/13/2011 - 11:21 | 1451898 lawrence1
lawrence1's picture

But you dont know how much sex he has.

Wed, 07/13/2011 - 11:19 | 1451886 Temporalist
Temporalist's picture

What's wrong with having a silver fetish?

Wed, 07/13/2011 - 13:07 | 1452581 achmachat
achmachat's picture

i was going through my old duck comics, and there was a panel of McDuck's office with a frame on the wall that read:

"Only Gold and Silver are real money"

very fitting for today's speech!

Wed, 07/13/2011 - 11:49 | 1452102 LongBalls
LongBalls's picture

Put some ASE's in your crack as you pump. Mix your pleasures I say mate.

Wed, 07/13/2011 - 11:05 | 1451790 dearth vader
dearth vader's picture

Even the Bernank has a silver lining.

Wed, 07/13/2011 - 11:05 | 1451793 Bastiat
Bastiat's picture

The Bernanke puts up a white flag just as the Euro goes terminal.  Where you gonna run to?  GOLD.

Wed, 07/13/2011 - 11:06 | 1451802 Poule Mouillee
Poule Mouillee's picture

It's getting inconvenient having to move my stop every few minutes to keep it tight with the leveraged silver ETF I play...  There's some paper profits to be taken today, and they're going to add to the stack of physical shinies! 

Wed, 07/13/2011 - 11:06 | 1451803 youngman
youngman's picture

This is the turning point...I see this "gold is not money" as the end of the US dollar and the start of Gold as money....gold to $5,000 now.....and watch it leave Comex....

Wed, 07/13/2011 - 12:32 | 1452406 Long-John-Silver
Long-John-Silver's picture

If there is any gold left in the comex by now.

Wed, 07/13/2011 - 11:07 | 1451809 Tense INDIAN
Tense INDIAN's picture

this is pne point when I am very unsure how high we migh GO::

 

http://markettechnicals-jonak.blogspot.com

Wed, 07/13/2011 - 11:07 | 1451810 yabs
yabs's picture

great guy bernanke i had just bought some gold before the melt up

thank you benny

Wed, 07/13/2011 - 11:09 | 1451821 Global Hunter
Global Hunter's picture

The Euro went down a little too quickly for the Bernank's liking so he has to talk down the USD via QE3 hints.  They're having a race to the bottom but they want to have a controlled slow race to the bottom.

Wed, 07/13/2011 - 11:10 | 1451824 Hondo
Hondo's picture

Government and idiots in the markets are killing the economy we need to shut the markets down for good....everyone that bought paper......too bad.

Wed, 07/13/2011 - 11:11 | 1451836 yabyum
yabyum's picture

Went to the coin guy yesterday for a pick up of US junk, bought some pslv and phys too. I feel swell this morning, why's that??

Wed, 07/13/2011 - 11:12 | 1451848 doesmybuttlookf...
doesmybuttlookfatinthis's picture

I laughed at the look of cluelessness on Bernanke's face, when Ron Paul braced him on whether gold is money. What an idiot. "Well bonds aren't money". No shit sherlock its debt.

Wed, 07/13/2011 - 11:13 | 1451850 MagicHandPuppet
MagicHandPuppet's picture

R.I.P. Evil Empire.  You will not be missed by 99% of us.

Wed, 07/13/2011 - 11:20 | 1451891 Quintus
Quintus's picture

They haven't gone away you know.  They're like the Terminator, no matter how many times you think you've killed them, they keep on coming back.  Never, ever trade on the assumption that they've been beaten for good.

Wed, 07/13/2011 - 11:25 | 1451923 MagicHandPuppet
MagicHandPuppet's picture

True dat!  Even if they do implode, they will rise from the dead like a freakin' zombie (thus I call it a zombie apocalypse).  My more realistic approach is to use this (partial) implosion to buy myself a few more notches up in the elite-controlled hierarchy of slavery and crony whoredom.

Wed, 07/13/2011 - 11:17 | 1451851 Temporalist
Temporalist's picture

Good point from Steve Liesman..."It doesn't mean it couldn't have been worse."

<end sarc>  He was replying to Santelli saying Gold could hit $1600 today and that is the market speaking for the state of the global financial system.

Wed, 07/13/2011 - 11:13 | 1451852 mt paul
mt paul's picture

wake me 

when silver

hits 40.$

Wed, 07/13/2011 - 11:14 | 1451857 Bansters-in-my-...
Bansters-in-my- feces's picture

I always wondered why the USA has no gold..... And benny told me "because gold is not money". Thats why banks hold Rice instead of gold.It's tradition.

Delusional wacko running the show....

And no one stops him...???????

Wed, 07/13/2011 - 11:14 | 1451858 ZeroPower
ZeroPower's picture

lol and Jim Rogers talking his book, just now says stay long EUR.

Wed, 07/13/2011 - 11:14 | 1451865 Dr. Engali
Dr. Engali's picture

I had really hoped gold would get a bit of smack down so I could buy more. I've been sitting on cash for the deflationary begging from wall street.

Wed, 07/13/2011 - 11:16 | 1451874 lizzy36
lizzy36's picture

God congress is full or moronic sock puppets.

#USAextinction

Wed, 07/13/2011 - 11:16 | 1451877 Libertarian777
Libertarian777's picture

kicking myself for not backing up the truck at 1,480 / 33.80. That was only 2 weeks ago.

Wed, 07/13/2011 - 11:20 | 1451895 SeverinSlade
SeverinSlade's picture

I have to say I'm a bit surprised with how everyone is reacting to the news of the day.

Bernanke has NOT YET committed to QE3.  He said it's on the table IF the economy takes a nose dive, but he doesn't think that will happen (considering he said that the economy will finish 2011 strong).  Like ZH has pointed out before, the only way we get QE3 is if the markets TANK (at least 10-20 percent IMO).  Yes gold and silver will remain strong relative to equities and some commodities, but you can't possibly think that they will be immune.

I think there will be one final dip in gold and silver which will come right before QE3 is demanded by Washington and Wall Street.  I don't see gold heading straight up to $1700, 1800, etc. from here without a significant dip.

Thoughts?

Wed, 07/13/2011 - 11:33 | 1451948 voshnishki
voshnishki's picture

Ah see, the Fed has already commenced its stealthy QE operations...it is still and will continue to monetize debt.  Also, everyone already know QE3 (whether it is called that) must happen because of the continued decline in housing equity and bank reserve requirements.

Oh, and of course they are not immune.  Gold and silver that is traded (paper with no physical banking) has been and is continued to be manipulated.  They could take the spot price down to zero (LOL) if they wanted to but physical and miners will be worth a decent penny.  HFT's will keep playing the game as long we can.

Wed, 07/13/2011 - 11:34 | 1451997 SeverinSlade
SeverinSlade's picture

I completely understand that.  But just because well informed people KNOW that QE3 is inevitable doesn't mean that's exactly how it'll happen.

If Bernanke tries to implement QE3 with the DOW approaching 13,000, the DXY heading below 75, and gold and silver making new highs, how do you think Washington (and Wall Street) would react?

Bernanke wants to be seen as a hero and not a villain.  The DXY has to be strong and equities/commodities need to be weak for QE3 to have full support.

Gold and silver are guaranteed to hit insane price targets EVENTUALLY, but people are now acting as if it's going to happen in a week. 

I'd be very careful buying heavy into this rally.  There's going to be a dip at some point.  I think it'll probably happen immediately after Congress reaches a deal on raising the debt ceiling.

Wed, 07/13/2011 - 11:30 | 1451961 lawrence1
lawrence1's picture

Its all probabilities but a bird in the hand .....   not sure at all that there will be significant dip before QE3 officially.  Maybe we are close to bank runs. Read the latest G.E.A.B. (Greater European Anticipation Bulletin) predicting a perfect storm for the financial system for the second half of this year ... we are in the second half.

Wed, 07/13/2011 - 11:31 | 1451967 MagicHandPuppet
MagicHandPuppet's picture

Anything is possible.  There could be a sell-off of all liquid assets in the face of imminent massive technical defaults creating a dip in gold.  But, it's also possible that gold/silver will be exceptions to this in light of a corresponding currency crisis.  Either way, zombie-repellent ammo prices likely will not dip!

Wed, 07/13/2011 - 11:32 | 1451981 Global Hunter
Global Hunter's picture

I was thinking along the lines of you, that here is going to be some talk and rumour of QE3 and stimulus first to keep the EUR in check and the equity markets propped up for a few weeks and then let markets deflate in a slow orderly manner (I know that sounds absurd) before QE3 is announced.

However watching the Bernank speak just now I suspect he's retarded and mentally ill and he may be deluded enough to think that even hint of QE3 will take us to the promised land.

What is really motivating them?  Do they know its all over and they're trying to "manage" the great unwinding of our financial system or do they still believe all their Keynesian bullishit? 

Wed, 07/13/2011 - 12:08 | 1452257 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

This is a worldwide planned implosion designed by the demon elites to consolidate power and enslave the world, then eugenics.

 

Tuco Benedicto Pacifico Juan Maria Ramirez

Wed, 07/13/2011 - 12:16 | 1452309 Transformer
Transformer's picture

They have never believed the Keynesian BS.  The elites hold gold, and lots of it.  Where do you think all the GB, Canada, and Fort Knox gold went?

Wed, 07/13/2011 - 11:34 | 1451993 OutLookingIn
OutLookingIn's picture

Agree.

We still have 6 to 8 weeks of the high season to go out at the 'Hampton's'.

The summer doldrums are still here, no matter what transpires in Euro-land. Both gold and to a lessor extent silver, will correct and consolidate their gains before continuing their slow upside grind.

Wed, 07/13/2011 - 11:46 | 1452081 SeverinSlade
SeverinSlade's picture

100 percent agree.

Allowing gold and silver to just explode to the upside without obstacles would be a complete failure of TPTB.  That will not happen UNTIL a run on all fiat currencies begins.

Just more of the same IMO.  They allow metals to spike, thus bringing in a lot of small buyers thinking that this is the "this is it" moment, only to then pull the plug.

One final dip before QE3.  After QE3 it's all over.  I think within 12-18 months following QE3, China will dump their USD holdings (and the rest of the world will follow).  But for now, buy into this rally with caution and be ready to once again BTFD.

Wed, 07/13/2011 - 12:16 | 1452311 T-roll
T-roll's picture

I agree with you.  I am not buying into this rally at all.  I think we may see $1600 gold by week end but wouldn't expect it to go much highter.  QE3 can't happen until all appears lost.  The European bank stress test results are Friday and they probably won't be good.  Could possibly see a big sell off then.  I'm not going all in on PMs until the markets tank and Bennie announces QE3.

Wed, 07/13/2011 - 12:25 | 1452367 SeverinSlade
SeverinSlade's picture

That's the irony of it all.  Many of our fellow PM believers don't see the inherent contradiction in their logic. YES, QE3 will come and YES, fiat currencies will collapse. But yet again, QE3 was not announced (or even fully endorsed) today.  All that Bernanke said was that it was on the table and would ONLY be considered if the economy and markets slowed considerably.  Bernanke is bluffing of course but he does have a good poker face (well, not really.  But as terrible as he is at lying, he's still a better poker player than the sell-outs in Washington).  Bernanke won't blink until the markets sink 10-20+ percent.  I always tell people to remember this.  The banksters will ALWAYS try to appear as our saviors instead of our masters.  Printing more money right now would be too villainous.  Best to wait until printing money is the last resort.

Wed, 07/13/2011 - 12:51 | 1452502 Transformer
Transformer's picture

And if there are a significant number who think like you guys do, well then wow, their strategy is working. 

Uhhh, anybody notice what's going on in Europe?  Interesting that what is happening there is kind of a slow motion version of Gonzalo Lyra's prediction of how HI would happen about a year ago, only in Europe.  I tend to go with the continued doldrums theory, but as each day passes, it is looking more and more like collapse time.  And all that's happening is that the rush to G & S is beginning.  Do you really think the ECB can put the bond genie back in the bottle?

Wed, 07/13/2011 - 13:01 | 1452553 SeverinSlade
SeverinSlade's picture

Transformer, how different would the game be if the debt limit wasn't an issue?

Obviously investors aren't flocking to the dollar right now.  In a few days when the US government is able to borrow again, what then?

You act as if I'm saying I don't believe in gold and silver.  Obviously that's not the case.  A lot of people were saying precisely what you are saying back when gold hit its new high a few months back and when silver was touching $50.  Mid to long term silver and gold will go up, up, up, but in the next few weeks?  See some downward pressure. 

Wed, 07/13/2011 - 12:05 | 1452222 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I agree, I am guessing one more big takedown, this time time hitting gold is in the cards, but who knows?  Last year metals bottomed at the end of August and still that possibility this year, but I would not bet two fiat cents on that happening.

 

Tuco Benedicto Pacifico Juan Maria Ramirez

Wed, 07/13/2011 - 12:13 | 1452293 SeverinSlade
SeverinSlade's picture

Well I think by mid-August QE3 will be announced (agree with Bill Gross that it could come at Jackson-Hole yet again).

July 22nd is a little over a week away.  The fact that McConnell has caved shows that a deal is imminent.  Be ready to BTFD.  It's the last one.  After QE3 is announced, game over for the world's largest Ponzi scheme.

Wed, 07/13/2011 - 12:19 | 1452323 T-roll
T-roll's picture

an agreement on the debt ceiling may possibly be a "sell the news" event.  I have fists full of money waiting to buy some shiny objects.

Wed, 07/13/2011 - 12:21 | 1452336 SeverinSlade
SeverinSlade's picture

Same here.  I trimmed my positions in my miners a bit too early, but I'm eagerly waiting to BTFD.

Wed, 07/13/2011 - 12:52 | 1452519 Transformer
Transformer's picture

Yeah, I'm waiting for silver to dip under 25!!!

Wed, 07/13/2011 - 13:06 | 1452573 SeverinSlade
SeverinSlade's picture

Who's suggesting a sell off of that magnitude? 

Silver is, however, likely to trade down to the mid to low 30's before they touch the mid to high 40's again (at least in the next few weeks).

When equities and commodities drop 10-20+ percent over the next month or so, do you really expect gold and silver to continue shooting up?

Keep stacking, but just be cautious specifically with buying heavy into paper investments (i.e. miners and ETFs).

Again, all bets are off after QE3.  But Bernanke can't pass his QE with the markets trading where they are now.

Wed, 07/13/2011 - 13:40 | 1452712 T-roll
T-roll's picture

We seem to share the same view. 

I'm going to start buying silver around $32 and gold around $1475.  Not sure about when I will start buying miners again.  Will probably do the sensable thing and buy a little here there as prices fall.

 

Wed, 07/13/2011 - 14:49 | 1452984 SeverinSlade
SeverinSlade's picture

I'm just going to buy in small increments on the way down.  Whenever I hear Bernanke say the Fed is going to launch another round of QE, then I'll go all in.  I'll buy at least 50% into my margin and will probably primarily buy AGQ and small cap miners.  Every large percentage rise that outpaces silver will be sold and converted into physical.

In the mean time, my profits from SPXU will give me some more physical at the coming discounted prices. 

Wed, 07/13/2011 - 11:22 | 1451906 au_bayitch
au_bayitch's picture

Isn't it about the time for the afternoon manipulation?

wtf? (-24) times 34 equals

Wed, 07/13/2011 - 11:38 | 1452023 jomama
jomama's picture

yeah, wtf @ the negative captchas that require a 3rd character.

and yes, it's about that time.

Wed, 07/13/2011 - 12:01 | 1452192 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I have found that understanding the relationship between negative and positive numbers is inversely proportional to one's intelligence:)

 

Tuco

Wed, 07/13/2011 - 11:26 | 1451930 Roni
Roni's picture

he considers gold as a tradition....wtf is he talking about ...gold gives him a figure 1600 here it comes bitchz

Wed, 07/13/2011 - 11:30 | 1451946 Precious
Precious's picture

At least there will be a solid record for the text books that Bernanke is the biggest ass-wipe in monetary history.

Wed, 07/13/2011 - 11:36 | 1452015 jomama
jomama's picture

lol, when have we seen this old pump and dump trick before?

Wed, 07/13/2011 - 11:40 | 1452041 apberusdisvet
apberusdisvet's picture

Anyone from HK know the status of the PanAsian exchange?

Wed, 07/13/2011 - 11:43 | 1452062 fuu
fuu's picture

Silver bitches!

Wed, 07/13/2011 - 11:46 | 1452087 johny2
johny2's picture

Tradition, punks.

Wed, 07/13/2011 - 11:53 | 1452123 css1971
css1971's picture

God...

You know, he could print physical paper and simultaneously increase the reserve ratio to reduce the total debt in the USA and control inflation. But no, that would reduce the profitability of his bosses.

Wed, 07/13/2011 - 11:53 | 1452128 dwilso39
dwilso39's picture

I would like to see a real time gold chart set against the Fed testimony, and the up/down price in gold, becuase everytime the Bernake opens his mouth, gold goes up.

Wed, 07/13/2011 - 12:01 | 1452189 Gold Rules
Gold Rules's picture

Weimar daze are here again.

Wed, 07/13/2011 - 12:17 | 1452315 johny2
johny2's picture

Bernanke. The lying piece of shit. 

Wed, 07/13/2011 - 12:22 | 1452338 Übermensch
Übermensch's picture

Nothing Benny can do... Pull a Volker in our debt saturated economy and the middle class gets crushed... the system is inherently flawed; only a matter of time before the great reset is upon us.

Wed, 07/13/2011 - 12:50 | 1452496 Federal Reserf
Federal Reserf's picture

Tyler,

How about adding a live gold quote along with some other key price quotes on ZH for us to more easily know when our master, the Bernanke opens his trap.

Wed, 07/13/2011 - 12:55 | 1452534 papaswamp
papaswamp's picture

Silver up 5%

Wed, 07/13/2011 - 14:14 | 1452846 XenoFrog
XenoFrog's picture

my play fort made up of 10oz bars thanks helicopter Ben.

Wed, 07/13/2011 - 14:14 | 1452837 Doyle Hargraves
Doyle Hargraves's picture

Keep talking Bernank, keep talking! My 'traditional' stores of wealth are loving every word!!! Hell Bernank should give us daily updates, gold in 5 figures, and silver in 3 figures before the kids go back to school bitchez!!!

Wed, 07/13/2011 - 14:31 | 1452917 DosZap
DosZap's picture

Well, they are taking it down ever so slowly.........1580.

No way they were going to let it take out $1590.00.

Wed, 07/13/2011 - 15:11 | 1453086 Alert
Alert's picture

Just a thought for everyone to think for a second.  Wouldn't you love it if gold goes to $2500 an ounce and silver lets say $156 an ounce using GSR of 16 to 1 ratio.  The scary thought to think about is, how much will our food price, gas price, cost of living is going to be?  It is scary.

 

Wed, 07/13/2011 - 18:57 | 1454019 jonan
jonan's picture

so i go to school part time at night and took out max subsidized stafford loans...tuition is $3,000 a semester and i get $8,000 of interest free stafford loans every semester, gonna use $3,000 for tuition and dump $5,000 into silver...every semester...just like printing money only uncle sam does it for me...

stafford loan carry trade = win

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