Gold Robust Over $1,500 As Stagflation Deepens And Greek Default Risks Eurozone Break Up And Financial Contagion

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Tue, 06/14/2011 - 07:52 | 1367241 ZeroPower
ZeroPower's picture

Robust(er?) than silver or other PMs, sure, but many are expecting a visit towards 1460 or so. Loading up the truck then.

$1400 would not be favorable, as Au would be flat on the year.

Tue, 06/14/2011 - 08:10 | 1367260 dbach
dbach's picture

Yeah we are sitting on the 50 day sma, which has held propped up price action for a while, look out below if that breaks. That'd be a good chance to load up though as you say.

Tue, 06/14/2011 - 08:15 | 1367276 topcallingtroll
topcallingtroll's picture

the 50 dma was not the best time to load up on silver.

However gold may be different.

Tue, 06/14/2011 - 08:26 | 1367289 ZeroPower
ZeroPower's picture

Agreed, but silver is a whole other beast. Breaking down a lot more heavily than gold (rightfully so).

Looking for 200DMA myself, not touching it long otherwise. Many here chastized me back in April for saying we'd be lucky to get through the year with silver in the 40s, well, i guess we shall see.

Tue, 06/14/2011 - 08:55 | 1367341 trav7777
trav7777's picture

the only people who chastized you were idiot pumpers who were trying to create bagholders...ignore them

Tue, 06/14/2011 - 09:28 | 1367401 topcallingtroll
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I don't think they viewed themselves as pumpers trying to create bagholders, but if one's intent is to cheerlead silver and sell at the peak, then that is what you are, a pumper trying to create bagholders.  However they hoped the bagholder would buy at 100 or 150.

I always try to buy low and sell high too.  I am not morally superior. 

Tue, 06/14/2011 - 13:07 | 1367830 GoinFawr
GoinFawr's picture

Awww, what a precious daisy chain you guys make... a couple more and the circle jerk will be complete; butt for Pete's sake make sure those 'flanking' trav are albinos!

Tue, 06/14/2011 - 08:07 | 1367257 All is chosen
All is chosen's picture

"British savers and pensioners are suffering from negative real interest rates and this continues to make gold an attractive diversification from a devaluing pound."

 99.99+% of these two groups have no idea about gold.

Many savers felt forced to buy property to rent out when they saw interest rates slashed to keep the housing bubble going.

The usual attitude from the land where 'you can't go wrong with property' is:-"Gold?? - what use is that? You can't get an income from it"

Tue, 06/14/2011 - 09:35 | 1367431 DosZap
DosZap's picture

The usual attitude from the land where 'you can't go wrong with property' is:-"Gold?? - what use is that? You can't get an income from it"

 

No, but you cannot get anything but deflated pounds in Banks losing more and more value by the day.

At least w/gold the odds are looking real good that those hold are going to be payed back in spades , and very soon.

Tue, 06/14/2011 - 08:10 | 1367261 Badabing
Badabing's picture

Gold Robust?

Not if they keep smacking it down.

When will the manipulation end?

Tue, 06/14/2011 - 08:25 | 1367285 Reptil
Reptil's picture

Oh that's simple: It will stop when the ones smacking it down have grabbed most of it. They'll then introduce a gold standard world currency.

Good you say? Well, up to a point: The achilles heel of Gold backed currencies is that the ones that OWN the gold, control the currency, regardless of any democratic oversight. The banks that own that gold can pull it back thus creating crippling deflation, to bankrupt and then take over more wealth. So it is of the utmost importance, for countries, funds and individuals, to secure as much gold as possible, without sparking the market, before the whole balloon of fiat deflates into nothingness. Because that is exactly where we're heading: Technically all the CDS and all the subsequent debt is many times the Planet GDP. It can never be paid back.

The control over the currency through the ownship of gold happened before: in 1873

But then silver was minted as money and this broke the gold stranglehold. Sounds weird doesn't it? Yes, now we're in the fiat ponzi, but it will happen again. The reason for the downward manipulation is now hopefully clear too. It's there to be able to steal everything.

Watch this (the beginning is a bit boring you can skip the first 10 minutes) http://www.youtube.com/watch?v=7qIhDdST27g

Tue, 06/14/2011 - 10:08 | 1367497 Jayda1850
Jayda1850's picture

The whole point of the video you posted is to suggest that the solution to all of our problems is to have the federal government print its own debt-free money and to abolish the debt money system where a private institution creates the money supply and then lends it to government charging interest. Although I totally agree with abolishing the central bank, do we really want to trust the federal government to create a stable money supply? Politicians are up for reelection every couple years, so all the incentive is to print as much money as possible to hand out to the voters in order to stay in office. Here we are borrowing 40 cents of every dollar and yet the government still spends it like it is going out of style. If we just let them print whatever they want, how does this not lead to a hyperinflationary scenario? The whole idea behind a gold standard is that it is a finite material that cannot be manipulated. The whole idea of allowing the federal government to print its own debt-free money, which I agree is better than having to pay interest on the money we borrow, doesn't sit well with me because I do not have enough trust in man's altruistic nature to think that the elected leaders in government would put the county's interest over their own personal interests.

Tue, 06/14/2011 - 08:45 | 1367300 Escapeclaws
Escapeclaws's picture

Gold seems to be moving exactly inverse to the US dollar in recent months. So thinking gold will go down must mean the dollar is going up. This is most easily seen by charting the gold/dollar index ratio and the dollar index itself on the same chart. That suggests the near term outlook for gold is a forex question.

Tue, 06/14/2011 - 08:42 | 1367304 PeaBird
PeaBird's picture

You need to appreciate reality a little bit more.

With USD prices for the yellow lump about 3.5% below recent nominal highs, you are calling that a "smacking it down"?

C'mon dude...look...

Tue, 06/14/2011 - 10:11 | 1367500 Bay of Pigs
Bay of Pigs's picture

Yes, and when point that out the critics jump all over you as being a "pumper" and wanting others to be "bagholders".

I've seen gold go down 30% before ($1000 to $690) and silver over 50% ($21 to $9), and these same assholes that were bashing it then are back again.

They don't get it and never will. 

Tue, 06/14/2011 - 08:16 | 1367272 Fred C Dobbs
Fred C Dobbs's picture

I keep buying real gold a little at time.  

Tue, 06/14/2011 - 08:14 | 1367273 topcallingtroll
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Gold is seeming to act almost like a risk off asset.

Let's see what gold does if it faces a severe economic contraction.

That would be proof of whether or not the attitude toward gold has changed.

Tue, 06/14/2011 - 08:26 | 1367288 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

You're right. I think with the end of QE2 and start of QE3 we're really going to see how gold and silver can perform. Lets face it the only reason why people on ZH aren't more heavily invested is because of deflationary concerns. If they both stay within say 7% of their current price over the summer, I'd say they will become massively more attractive to many as safe haven assets. At the moment I'm keeping my powder dry, looking to load up in the summer. But I do have to say, they might not even dip at all...

Tue, 06/14/2011 - 09:47 | 1367447 DosZap
DosZap's picture

Let's see what gold does if it faces a severe economic contraction.

 

It will go down at first (most likely), and then it will take off like hell wont have it,because we are going into (are in deflation) to a degree now, some inflation(higher prices), but when the market implodes we will go into hyper drive inflation, and folks will be chasing PM's for any price, if they can get it.

Inflation 25-50%, a devaluing frn, and gold & silver nowhere to be found.

 

It will not be like last time, for long, and IF it does drop, you had best buy alll you can afford.

Tue, 06/14/2011 - 08:25 | 1367286 Bazooka
Bazooka's picture

Gold Robust....i'm sorry but you're jerking the slippery slope of hope.

In a deflationary death spiral, which will recommence (it not already), credit implodes and all try to raise cash...one way will be to sell equities and precious metals (yes, gold and silver are no more than pair of equities until they significantly deviate from syncing with equity indexes).

Tue, 06/14/2011 - 08:37 | 1367298 Reptil
Reptil's picture

I believe the currency will collapse, unless a lot of it is printed extra. This is a dead end as well. Stagflation and a slow demise of purchasing power, as we see now. The die was cast when CDS were allowed. That was the knife in the back of fiat.

When gold plummets, in that deflationairy spiral, you can expect anyone with any liquidity to swoop up as much as possible. That will be difficult as there will be distrust, just like in 2008, since the contagion is now even greater. The run on dollars and euros to be able to unwind positions will be closely followed by a run on the next stop in the safe haven train. Since dollars as well as euros will not be viable currency, if only a few will hold it, in a total crash of trust amongst the banks. Enter then the next fase....

Tue, 06/14/2011 - 08:29 | 1367287 youngman
youngman's picture

I think gold and silver have moved to the bankers stealth mode....they are buying it by hook or crook....HFT´s taking the paper down...and in the end..which I think is this year some time....when we have a financial failure....we will find out who has been buying all the gold...and who has been supressing the price....

There is nothing paper out there I would be investing in right now...not one thing
There are no sticks and bricks that look like a great opportunity to me either...

Gold and silver are the only safe havens right now....buy my dark side ...and that is getting bigger...says someday the Government will say it is illeagal to own it also...

Tue, 06/14/2011 - 08:36 | 1367296 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

thats going to be hard to enforce globally, but I'd certainly be scared of some kind of confiscation in the us. I have most of my bullion with goldmoney.com in hong kong and zurich. Also, they'll only try and confiscate gold once the value of the USD is zero..otherwise making gold illeagal is just going to cause the dollar to tank.

And lets imagine a world where currencies are collapsing and gold and silver have been made illegal. People would have to trade and store something of value. Art, land, food, livestock, wood, maybe a makeshift currency like the "maks" found in us prisons... 

Tue, 06/14/2011 - 08:32 | 1367292 Silverhog
Silverhog's picture

Friends and family still think I'm a whack job survivalist for buying physical Silver & Gold. My guess is I'm still in a very small percentage of population who's buying PM's. Yet despite the plunging Comex Silver inventory, PM's seem easy targets for price control. When another 5% of the public moves into metals will end all this quite quickly.

Tue, 06/14/2011 - 08:35 | 1367302 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

I think some large insitituions will be looking at it over the summer; just wait for a few more universities or companies to come in. I think insititutional demand will go up before it really takes off with the public

Tue, 06/14/2011 - 08:50 | 1367320 Fred C Dobbs
Fred C Dobbs's picture

When they start to change their minds about you being crazy then you might want to consider selling some precious metals, not until then.  

June 14th is a major turn date for Martin Armstrong.  Anyone here care to explain what they think that might be?  

Tue, 06/14/2011 - 09:50 | 1367460 DosZap
DosZap's picture

When they start to change their minds about you being crazy then you might want to consider selling some precious metals, not until then.  

 

And invest in what other PAPER?.

I am not selling one ounce of anything until this shitpile comes to a complete end.

When a new unit/type of money is developed people can trust is employed.

Anyone who does is nuts.

 

Tue, 06/14/2011 - 09:25 | 1367403 topcallingtroll
topcallingtroll's picture

You are a whack job survivalist.

That doesn't mean your ideas are always wrong.

Tue, 06/14/2011 - 09:44 | 1367440 fasTTcar
fasTTcar's picture

Let me add:

"Just because you are paranoid, does not mean that they are not out to get you"

Tue, 06/14/2011 - 12:43 | 1368010 fonestar
fonestar's picture

I'm sure they will have to introduce a something-backed currency.  That's not to say that they will allow you to own the real deal though.  Gold, Silver, Diamonds for the elite, paper for everyone else.

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