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Gold Hits New Record As Heatmapped Dollar Drubbing Continues, BOJ Approaches Reintervention Time
The perfectly inverse trade of dollar vs gold continues to reach new extremes. Earlier today, spot gold just hit a fresh all time high of $1,317, once again proving that all that inflection point chasers really have no idea what they are talking about, since gold is not trading based on some regression channel, but continues to be the only way to hedge central bank profligacy. It is stunning how many experts still don't get this. As long as daily news of currency intervention bombard Bloomberg terminals around the world, this trend won't end. And neither will the pain for the dollar, which as the attached heatmaps demonstrate has received another fresh round of pain, with the EURUSD hitting 1.3765, as Europe is once again caught in a quandary of how to best punish it own currency without setting off a fresh banking crisis (the whole rock and hard place thing). Yet someone who will certainly be forced to intervene soon or else risk loosing all control is the BOJ, whose currency is now back to pre-intervention levels. Total tally: global central banks have spent tens of billions to keep the dollar low, and have failed, while all Bernanke has had to do is threaten to print another trillion and succeeded.
Gold
USDJPY
Dollar heatmap
Euro heatmap
Yen heatmap
And below is FMX Connect's daily gold fix:
December Gold settled at $1309.60 per 100 troy ounces on Thursday, a net loss of $.70 for the day
December gold was up $7.40 to $1317 per 100 troy ounces as of 7:30 AM EST, this morning. The December U.S. dollar index was down .428 to 78.51. October platinum was up $13.90 to $1665.90 per 50 troy ounces. December silver was up 13.9 cents to $21.96.
Bloomberg (Reported 10/01/2010)
“Gold climbed to a record in London and New York as investors sought an alternative to a weakening dollar. Silver traded near a 30-year high and platinum rose to the highest level in more than four months.
The dollar headed for a third weekly drop against the euro amid speculation the Federal Reserve will take additional steps to shore up the faltering U.S. recovery, and before a report forecast to show manufacturing slowed in the country. Gold usually moves inversely to the greenback, and holdings of the metal in exchange-traded products are at an all-time high.” Gold Advances to a Record as Slumping Dollar Spurs Demand From Investors
Reuters (Reported 10/01/2010)
“Gold hit record highs for a sixth successive session on Friday as the dollar fell to a six-month low against the euro, with expectations for further U.S. monetary easing driving strong demand for the precious metal.
Spot gold touched a peak of $1,317.10 and was bid at $1,315.65 an ounce at 1013 GMT (6:13 a.m. EDT), against $1,305.25 late in New York on Thursday. U.S. gold futures for December delivery rose $8.20 to $1,317.80.” Gold at record for sixth day
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Let's see if we can close today above yesterday's intra-day high. I doubt it, but, if we do we may see 1340-1350 next week.
Look closely at the gold chart. It's flattening out really hard. Just look over a year and a 3 year chart. The 3 year had all kinds of volatility and the 1 year has morphed into a nearly smooth line. It's really spooky and disturbing as it turns into a deficit spending plotter.
btw, for those keeping score at home, the Dec10 contract did close above yesterday's intra-day high. 1:30 Comex close was 1317.80.
psst..hey, just the person I was looking for..
why is it that whilst we sleep in the US ag and au do their respective "thang", then approaching 9-10am..kerplunk? i'm up at 5-6 am every morning and notice that. why is that? insights? recs?
spot prices that is
Check out Ed Steer's Daily gold (free) and Le Metropole Cafe (paid but you can do a trial subscription), they often go into the why's and wherefore's of the market as it moves from time zone to time zone.
The Bernankosaurus awakens from his slumbers at 9 AM sharp.
Around 10:30 every day the banks/Fed/New World Order goons hit gold trying to stop the trend. So far we are winning and they are losing. Buy Gold and silver and take delivery of the physical.
yup, you nailed it. I'm gonna start trading this one in my futures account for a quick pop
That's when Gartman and Robotroll start shorting it.
you mean there are still people who don't know about my friends at the Crimex? There's hope still!!
Gold is INTERNATIONALLY trading as a GLOBAL CURRENCY, no matter what Douchenger states.
Another visionary says his piece:
Excuse me while I run out to buy more on this contrary indicator....
Gartman is a fucking idiot. Not as bad as Prechter but close.
He's been advising caution against gold for over a year now.
Did Prechter ever stop predicting $200 gold?
Not yet.
The best part is, as long as he keeps talking, the more worthless he proves himself to be.
Gold looks like a chart of the SPY, CRM, AMZN, or insert any other OVERVALUED asset here.
I thought gold was the barometer of value against what everthing else is measured. So it has no value/all value. Very confusing, but I am glad I have been buying for years. With a pinch of salt and a dsh of pepper....very tasty indeed.
Exactly. Gold is trading inversely to the dollar. The anti-dollar trade has 95pc bearish sentiment on it. When was the last time 95pc of investors won? Dollar will go up and up hard and gold,stocks and other currencies will plummet.
2007?
Good luck selling the rising dollar/plunging stocks trade to the Fed.
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA...get a dictionary. Look up debasement of currency. This is sole reason for gold's advance. The only way the dollar goes up is through budgetary restraint and an increase in taxes, production and services.
See that on the horizon? In the next three years? Five? Ten?
Look I'm as pro-gold as come, and I'd like to greatly increase my physical holdings (God, I wonder where I'm going to be able to safely keep that much gold) Anyway taxes are going to rise, and the republicans have said if they win in their "contract on America" or whatever it's called they're going to cut spending. That should give us one last chance to buy in at a lower price. Right?
Boy it's going to cost me if this is really the end of the dollar. Hopefully I'm right and it's got another year or so left.
Again I was just a kid but seems to me the first contract with America was standard political fare, all talk no action. I have little hope in the current crop of RINOs to live up to the very same promises they made 16 years ago. They had control of the ship and they plundered it, how can we expect any different? We don't have two parties, we have two factions in the Looter Party. But their unified goal is to loot, we cannot expect anything different.
Trust me this ends with the dollar dead, they crossed the point of no return early on this decade and we are just going through the motions. They cannot cut spending and survive politically (see Europe's response) and they can't keep spending and keep the dollar around. Killing the dollar is actually the lesser of two evils for them because they will be able to point the finger at someone else, or claim national emergency and wheel the troops out.
I agree this ends with the dollar dead. But my question is WHEN does it die? Next month, next year, two years?
If it's going to die in the next few months, then this runup in gold is wholly justified, if not there could be another gold silver load up opportunity.
I didn't have as much cash as i do know when gold was 5-800. I'm hoping to get another chance on Gold/silver at lower prices.
Partially disagree. Go read Parliament of Whores by P.J. O'Rourke for some perspective on the shenanigans that CONgress was up to prior to the 1994 Republican Revolution. Newt and Co did fix quite a few things before the Republicans became power drunk and lost their way.
"republicans have said if they win in their "contract on America" or whatever it's called they're going to cut spending"
Right ... right ... right. And you believe them?
SMG- this is just my 2-cents, but trying to market time in this environment is basically waiting to be burned. Decide how much you want to buy, call APMEX and purchase 10 (or 20) percent of your planned total buy each month, regardless of price until you are set.
I get what you are feeling- 1300+ for an ounce? Really? But reasonable scenarios exist for both a large rise, and a large drop, in the coming months. Bernanke gets sick of gold being touted as essentially the new world reserve currency? He just announces no new QE and the price takes a major hit. On the other hand, he may decide that with the new, less statist congress coming in he needs to move fast or he may lose the chance, so he puts the petal to the floor and the price shoots to the moon. I could go on with alternate, plausible scenarios on either side, but you get the idea. Long term, you will think of physical gold as cheap at 1300. Get a plan, ease in, and stop giving yourself an ulcer trying to time your buy. Marathon, not a sprint.
That's good advice, thanks. I hate that my future and the future of so many depend on seceretive decisions made by a few unelected aristocrats. Why did we as Americans ever give them such power?
I hear you. Many others feel the same, and the awareness is growing. I think of buying gold as a personal act of rebellion against these people and their methods- the usurpation of my rights as a soveriegn citizen, the confiscation of my work without my consent. Join the resistance, my friend.
just wanted to chime in and agree, your advice to set PM "goals" and just begin speaks to a strategy more than a "play" - and that's what PMs are proving here and now. . .
the "personal act of rebellion" is strong for me as well, and was just the nudge I needed to begin, after months of reading here. . . watching the plays in the market now has more resonance since I put my money where my mouth is.
thanks again Pining.
Every time they abandon a currency, mate.
The only bubble here is in the dollar.
What ever happened to the idiots predicting EURUSD 1.00 this fall? I don't hear much from them anymore.
They are too busy dousing the fires in Spain, Belgium, Ireland, Greece, etc. An automobile fire takes a lot of foam to suppress, like an amerikan economy takes a lot of BS to suppress.
Still gonna happen. Too much bearish sentiment against the dollar. Deflation is still in play and will be for the next few years.
Oil over 81, soft commodities up 40 or 50% in three months. Stop the deflation, I want to get off.
All true, but the pile of lumber and brick I abide in is certainly not going up. Bummer.
We already had that bubble.
Mine did. Just ask my city and county government and my home insurance folks [insert low animal sounding growl about here].
Cities and communities will look more and more toward tax increases for revenue. Our little community just put a tax increase on the ballot. Was defeated, of course. But they will find a way of levying fees on all sorts of things like business licenses, building permits, parking fees, on and on.... Open rebellion will be the only way to stop it but that will happen only when it's really too late. Once instituted, those "fees" are impossible to roll back.
Telling me my house increased $19,000 in value is insane/funny. Taxes rose a few hundred dollars because of it. As did my insurance. If I am unemployed, even though I own the house outright, I might lose it because the increased taxes could be the straw that broke my back. Meanwhile I do not want the Eye of Soren around, God knows what they will say they can find, so I let it go...
I hope some day enough people wake up to the fact that these days, when a person owns a house or property, they don't actually "own" it. They're really just renting it from the government. When will we have real ownership?
I think we are going to see a significant increase in seat belt and DUI checkpoints and speeding tickets for 5 MPH or less. In the suburb where I live the cops hide in the shrubbery at stop lights and jump out and write tickets to unsuspecting drivers who are unfortunate enough to not have their seat belts on.
Been happening in NorCal for over a year now.
They're both falling. Who cares which ship is sinking faster? I want to get to shore.
Exactly. Every piece of "paper" is falling relative to Au ... this is baked in the cake for many years.
Just look at the magic index futures go, lift offer up up up and away.
It is starting to make sense to convert dollars to gold or silver and then sell as needed for liquidity- weekly. Is there such a thing as gold mania in only 1% of the population? Or just smart money?
God, I am so tired of fucking central bankers and their world domination schemes...
In 5 minutes we will get some economic data that will send the stock index futures up to yesterdays highs, guaranteed!
How much gold is enough? A few ounces? A kilo? A ton? A thousand tons?
A 1000 tons is a good start.
One thousand tons? That's 1/160th of all the gold in the world. What happens when one person has all the gold. Winner is declared and he can smoke a cigar alone. I think a 2-3 kilos should be sufficient to put you in the top 2% of world. Let me clarify, 2-3 kilos per person in your household. This should be sufficient for a shit hits the fan scenario.
Haha, yeah 2-3 kilos should be 'enough', considering on average there is about 0.85 ounces of gold for each human on the planet. My personal number is 1 gazillion ounces. It's a ballpark estimate.
How much is enough? As much purchasing power you want to carry into the long dark night. I would suggest as much as you can get your hands on, when the nukes start going off in the currency war getting onto the gold train will be a hell of a lot harder. So probably as much as you are fit to carry, I know saddly I'm no where near that, after all some of us are probably going to end up as displaced persons and it would be a shame to leave some behind, particularly when historically it's helped refugees since it took on a role as a monetary metal.
I would suggest thinking of ways to discretely sew it into your clothing. Or maybe a money belt? If, however, you go this route you should probably avoid Big Brother's x-ray machines.....
What is the source of this 95% bearishness figure against the dollar?
Are you challenging the tape to a debate? I wonder if that will help.
Chart: ES
Good luck, Ben. Fuck you, Tim.
http://99ercharts.blogspot.com/2010/10/es.html
Hey, guys...planning to party this weekend?
http://www.youtube.com/watch?v=_2s7WMVMDjU
And they say it couldnt be done. Of course it can. Its so wrong , But its still being done. Please tell me how long this can continue so i have some idea when to sell my Goog pcln and Appl shares. If the answer is at least a year, Then rally on. I also bought some Gold.
... at least until after the elections.
Gold just hit 1,318. Wee, This is fun!!
so here we are needing godzilla to come up on our shores and rescue wall street while at the same time it's uncontainable immenseness crushes all else it stomps upon like it did to tokyo.
i can envision raymond burr watching out a nearby skyscraper and sweating, but this time its everyman, not just mr. burr.
Where the fuck is Ghidorah, the Three-Headed Monster when you need him?
lol. i think he recently resigned too.
Saw this gem this morning
“. . .we shall urge the greatest of caution upon everyone, everywhere regarding gold. It is not just over-extended to the upside; it is hyper-extended. It is not just overbought; it is hyper-overbought. We cannot strongly enough urge everyone to avoid buying gold here and we shall go so far as to suggest that those who are long begin the process of quietly heading for the exits and to reduce their positions to the most minimal ‘insurance’ positions possible. Everyone should have perhaps 5% of their liquid assets in gold, but at this point anything beyond that level is excessive.”
–Dennis Gartman, September 29 2010
Good luck with that Denny
If comex not equal dead buy gold.
Yeah, if everyone took a 5% position, gold would be $6500 TONIGHT.
... must be long doellars.
EUR/USD 1.3723
USD/JPY 83.34
And which of the fundamentals that drove the price from $253 - $1320 have changed for the worse? Not a single one of them.
Sounds like Gartman has some friends needing to cover.
He thinks he's herding sheeple, when really, he's herding cats.
Dog: "You feed me and take care of me, you must be a God!"
Cat: "You feed me and take care of me, I must be a God!"
Meow!
If the USD strengthens then it will be because some other currencies managed to near fatally shoot themselves. Goodbye export industry jobs, economic recovery and another round of debasement. Gold will go up whatever. In fact if the dollar strengthens too much it might rocket as the writing is seen on the wall..
In fact it don't matter just buy Gold, the outcome is irreversible.
There have been a few anti gold stories around. Marketwatch had a pretty pathetic effort at 5 bad things about gold.
They should just say..Boo!
we're just running out of ideas on how to scare people away from gold at thsi point. Maybe Dennis Gartman can come up with some half-truths and use some disengenouis logic to scare at least the most naiive away
Calling JonnyBravo, calling JonnyBravo, this your boss demanding you report to work immediately! Are you going to let me do all the anti gold fearmongering by myself? you treacherous little weasel!
October employee training session begins today ...
Starbucks Pumpkin Spice Latte & Toffee Mocha Frappuccino®.
don't do it, bronzie
control yourself ....
gold, bitchez!!!
damn - no self control
The Great Reset approaches...can you hear it? Gold can.
Mania, mania, mania..... tulips, bonds, bits, bytes, bricks, mortar....
Why not Au?
You really have to believe in it's innate draw (clearly hardwired, besides all the good reasons like rarity, un-impeach-ability, nobleness etc.).
You have to believe that these times are NOT those times.
I worked out a formula for myself once, that my PM holdings would be in a certain secret ratio and also a guided number for what the price ratio will settle at. The formula had to do with the sun and the moon and it's working! ;-)
ORI
http://aadivaahan.wordpress.com
Silver tispes!!!!!!!!
HiHo Silver away !
http://www.youtube.com/watch?v=LbB3Li7NX60
Hi Guys! First post here, though have been lurking for quite a while.
I'm a gold and silver bug at heart and am all in, however this has had me REALLY spooked!
http://www.cnbc.com/id/39047751
I think a near term correction is on its way!
CM
Let me help you out here, CM.
This idiot Cramer should be ignored on everything. He's become nothing but a two-bit shill and stock market pumper. He's been correctly recommending gold for some time now but here's the thing: Like all on CNBS and throughout the MSM/Fed complex, they have no understanding of the new paradigm in which we now live. The end of Keynesianism is upon us, yet Keynesianism is all they know.
Additionally, the Comex is broken. We are within weeks or months of a physical delivery breakdown. The monthly and quarterly charts confirm this. Both metals will continue to be manipulated by the Evil Empire but their days of absolute control are over. Buy physical and take delivery. For fun, you can buy options and futures on any and all dips. Be not afraid.
Thanks TF :)
...also, I noticed, he keeps recomending GLD and SLV and playsdown physical. I wonder why ;) ...it's just that the words Gold and Silver coming outta this guy's mouth gives me the creeps
I still do think (...maybe hope too!) that Gold pulls back. Could the moment we've been waiting and preparing for be within reach? ...feels surreal...
btw, never thought I'd see the day it took a turd to calm my nerves! LOL
CM
Here's a better salesman.
http://www.youtube.com/watch?v=nMMxIAn_76g&feature=fvw
That's like thinking the blood you put in a blood bank will be there when you need surgery! If you ain't got it in your possession, you might never get it!
I'm astonished at how some of these wizards are talking about gold bugs. It's as if it's an infestation or disease. They continue their dirge that gold prices are unsustainable.
These wizards are missing the one key driver of pricing... PMs are an insurance policy against default of the USD. If the unfunded liability of the US Govt (projected to be $23,000,000,000,000.00 this year - ya, look at all of them #uckin zeros)) along with asymptotic deficits doesn't cause something in your head to go "click", then you don't have a head.
I just put on my wizard hat - now I'm a #uckin wizard too... and here's my advice: Keep your PMs.
"I'm astonished at how some of these wizards are talking about gold bugs. It's as if it's an infestation or disease."
Gold bugs get the same treatment as the Tea Partiers. The hate shown in both their directions is the result of fear by those spewing the hatred. The haters are dreadfully afraid that the gold bugs and Tea Partiers might be correct....
Why aren't the gold & silver miners up more today? Is it because oil is also up?
Apparently Gartman is breaking his own #2 rule of trading:
"2. Trade Like a Wizened Mercenary Soldier: We must fight on the winning side, not on the side we may believe to be correct economically."
Read more: http://www.marketfolly.com/2008/11/dennis-gartmans-rules-of-trading.html#ixzz117jWqudi
He must not believe his own rules very strongly, at least when it comes to gold.
Just bought me another 250 Silver eagles today. The breaking point must be close because my dealer has the best spread I have ever seen in the market, and it's almost double what it was a few weeks ago.
The end is nigh.
Gold and silver are in a runaway. Gartman's sour grapes means there are plenty of buyers.
Gold and silver are the only two assets above their 2008 nominal highs.
Anybody catch Max Keiser's recent interview with Jim Willie? Apparently there is a coordinated group of deep-pocketed "gold vigilantes" who have started demanding physical delivery of large amounts of gold every couple of weeks. If true, it will be very interesting to follow this story.
http://www.youtube.com/watch?v=IDuZmmz3dqg
Jim Willie, at the very least, is goldbug entertainment at its finest. If his information is half as reliable as his sense of humour: this run isn't over by a long shot.
Big buyers keep demanding delivery and we'll get this jig up right smartly.
Buying/selling a car or a property? I have a suggestion for a solid medium of exchange...
http://www.buyassociation.co.uk/property/text/vietnam/buyassociation/buying-a-property-in-vietnam.html
"... in the buying process in Vietnam is that all transactions are carried out in pure gold..."
Gosh, the US military industrial complex just can't beat those guys at anything!
Warmest Regards To All
Sweet!