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Goldman Cuts Oil Price Projection From $96 To $87, Whacks Copper, Grudgingly Likes Gold
Goldman's Allison Nathan is out tonight with a report that will leave an unpleasant taste in the mouths of growth/BRIC bulls. In an analysis whose key catalyst is a downward revision of demand growth expectations, Goldman materially cuts its short and mid-term forecast prices for key commodities oil and copper. "Commodity markets are generally rebounding strongly off their lows but sentiment remains fragile on European and Chinese concerns and potential signs of slowing positive economic momentum, despite generally healthy macro data and further improvements in commodity fundamentals. These concerns have caused the market to revise down expectations for future growth, and, in turn, discount future commodity supply constraints." Specifically, Goldman has revised its 3 Month oil forecast to $87 from $96 (old forecast can be found here), nat gas unchanged, copper to $6,800 from $8,125, and zinc to $2,000 from $2,600. What is most amusing is the sheer loathing that comes of the page in which Nathan is forced to be constructive on gold. "We see upside risk to our forecast should investor demand continue to support further flows into the gold-ETFs or central banks continue to accumulate gold. For example, if gold-ETF buying were to continue at its current pace for the remainder of the year, we would expect gold prices to rise to $1,400/toz by the end of 2010."
Broader commentary from Goldman on commodities in general:
Commodity prices are generally rebounding strongly off their recent lows, but sentiment clearly remains fragile on European and Chinese concerns and potential signs of slowing positive economic momentum, despite generally healthy macro data and further improvements in commodity fundamentals. These concerns have caused the market to revise down expectations for future growth, and, in turn, discount future supply constraints across the commodities complex. We believe that the market is overestimating the impact of current concerns on trend economic growth. However, the markets will likely remain fragile until there is further evidence that sovereign pressures are stabilizing and trend economic growth remains intact – both of which we expect. As a result, we have lowered our 3-mo oil and base metals price forecasts, but to levels still above current prices, and maintain a positive medium term view on many key commodities, especially crude oil, copper, zinc and platinum. We also believe that gold prices will remain supported over the medium term.
We believe that the market is overestimating the impact of current policy and economic concerns on trend economic growth, with little evidence that current developments will have longer-term economic implications. Further, we maintain that sentiment is too bearish on both the sovereign debt risks as well as the effects of macroeconomic momentum slowing and emphasize the below points:
1. Goldman Sachs economists have identified several key differences between the current sovereign crisis and the 2008 mortgage crisis that precipitated the global recession, which suggest that the severe funding problems and transmission to global growth that occurred in 2008 are far less likely this time around (see Dominic Wilson, Global Economics Weekly: Comparing the Sovereign Crisis and the Mortgage Crisis, June 9, 2010.) Further, a slowdown in economic momentum has long been expected and fully embedded in our views.
2. Despite some macro slowing, absolute growth indicators are still firmly positive, and increasing commodity demand to levels beyond pre-recession highs are what matters for rebounding prices, not just sequential growth rates.
3. Commodity fundamentals have held up well and, if anything, have improved beyond expectations. Implied demand for key commodities has remained at exceptionally high levels in the emerging markets, developed market demand has generally surprised to the upside, and inventories have once again begun to track on a tighter path, particularly for the metals where draws have accelerated and are now occurring across all regions for most of the complex.Nevertheless, we believe that the markets will remain fragile until there is further evidence that sovereign pressures are stabilizing and trend economic growth remains intact. Further, we acknowledge that we have a lot of ground to make up to reach our prior near-term price targets. As a result, we have lowered our 3-mo price forecasts across key oil and metals commodities, which have the most exposure to the macro economy, although to levels still moderately above current prices. Specifically, we have lowered our 3-mo WTI price forecast to $87/bbl from $96/bbl, which is the bottom edge of our anticipated $85-$95/bbl trading range during 2H1010. As the inventory path for oil has remained a bit softer than we had anticipated driven by supply growth, we have also lowered our 6 and 12-mo WTI forecasts moderately to $87/bbl and $98/bbl, respectively. For 2011 as a whole, we have lowered our average expected price to $100/bbl from $110/bbl previously.
For metals, we are lowering our 3-mo copper, aluminum and zinc forecasts to $6800/mt, $2000/mt, and $2000/mt, respectively, from $8125/mt, $2325/mt and $2590/mt, and raising our nickel price forecast to $21,000/mt from $17,555/mt on extended strike-related Canadian supply disruptions. However, we are modestly raising our 12-mo views across most metals as lower near-term prices potentially worsen the supply outlook against global demand levels that have already exceeded pre-recession highs. We are leaving our agricultural prices unchanged, with prices and fundamentals generally moving as we have expected.
On Petroleum:
-15.0% from April 30, 2010 through May 31, 2010; -7.5% ytd through May 31, 2010
Crude oil prices have risen well of their lows in recent weeks following a collapse in May, in line with the broader commodity market and other risky assets such as equities in one of the sharpest corrections of the economic recovery. WTI front month prices dropped $18.14/bbl from 30 April to 20 May, but have subsequently rebounded and now trade at $76.79/bbl, down $9.36/bbl. Although the sharp decline in crude oil prices has mirrored those of the broader equity market and other growth-related assets (see Exhibit 3), the fact that crude oil is a physical commodity raises the question of whether or not the physical
fundamentals of the market could change so quickly as to warrant such a large change in price. We believe that the short answer to this question is no, the changes in physical oil market fundamentals have not deteriorated to the extent that the price action might suggest.
Although the build in US inventories in April was substantial and the high level of crude oil inventories in Cushing has been putting pressure on WTI prices relative to other crude oils, we continue to believe that much of the recent build was driven by seasonal demand weakness and the effects of a deep and prolonged refinery maintenance period. However, the build up in US inventories in April and May suggest that the normalization of global inventories towards their 10 year average will likely take longer than we have previously expected. As a consequence, we expect WTI front month prices to trade at the lower end of our targeted $85-95/bbl trading range over the short term, and have lowered our 3-, 6-, as 12-mo month WTI price forecasts to $87/bbl, $87/bbl and $98/bbl, respectively, from $96/bbl, $93/bbl and $102/bbl. It is important to emphasize, however, that the recent strong decline in oil prices to levels well below that trading range has been driven by increased policy concerns and is not warranted by fundamentals, in our view.
Another mea culpa follows on copper:
On net, we believe that the market is overestimating the impact of current policy and economic concerns on trend economic growth, with little evidence that current developments will have longer-term economic implications. Further, absolute levels of commodity demand moving back up against supply constraints are what matters for rebounding prices, not just sequential growth rates.
In addition, the PBOC’s weekend announcement that it will further reform the exchange rate regime was an important signal of confidence in the Chinese economy and global recovery, in our view, and may also have implications for longer-term metals supply growth as China is a significant marginal producer of many metals. Rising local exchange rates combined with rising wages, potentially more taxes and royalties on local production, and tighter environmentally-focused regulation will likely increase the cost of new production going forward.
Nevertheless, while we believe the longer term demand and supply trends look generally supportive, a combination of slowing macro momentum and possible seasonal weakness continues to lead us to expect moderately weaker cyclical fundamentals in the near term. In particular, we have long held a conservative view on Chinese metals demand growth during 2H2010 largely on expected tightening measures. Further, although we believe that the much-discussed bubble risks in the Chinese property sector have been well-expected and well-managed thus far, a potential sluggish start to social housing construction – an offset to the expected decline in speculative building – reinforces this near-term view of moderately softer fundamentals.
We therefore believe it will be difficult for metals prices to surge back to recent highs in the near term, especially as the main European policy response is now behind us. As a result, we have lowered our 3-mo base metals forecasts, with the exception of nickel, where fundamentals have been substantially tighter than we expected primarily on extended Canadian production outages.
And lastly, gold, where the only excuse is that Goldman did not anticipate as fast a rise as actually occurred.
While we view low US real interest rates as the key driver to higher gold prices, the recent elevated concerns over European debt has sped the rise in gold prices in a two-stage rally that has pushed gold prices beyond our 3-month target of $1,220/toz and to a new record high.
The April rally was driven by increased speculative buying in response to the decline in US real interest rates as European debt concerns triggered a “flight to quality” and a rally in US Treasuries. This first leg higher highlighted the role of US real interest rates and speculative positions in determining gold prices (Exhibit 15). The May rally was driven by increased gold-ETF buying as the market turmoil created by increased concerns over the potential for a European sovereign default and inflationary monetary policy highlighted gold’s status as the “currency of last resort” (Exhibit 16).
Our tactically bullish outlook for gold in 2010 and 2011 continues to be predicated on the view that with the US Federal Reserve expected to remain on hold, the resulting low real US interest rate environment will provide strong support to US dollar-denominated gold prices, with prices expected to average $1,350/toz in 2011 (see Exhibits 17 and 18). We see upside risk to our forecast should investor demand continue to support further flows into the gold-ETFs or central banks continue to accumulate gold. For example, if gold-ETF buying were to continue at its current pace for the remainder of the year, we would expect gold prices to rise to $1,400/toz by the end of 2010.
Below is the full revised projection table for all commodities:
The balance of the report contains a variety of other apologies for missing target prices. Just like before, Goldman tells clients to buy pretty much everything even as prices keep crashing - where have we seen this before. The only place where Goldman is forced to admit it was wrong and to disclose "risks to the upside" is in gold. We are confident that in 3 months when the next version of this report is published, there will be much more of the same, with the exception that GS will be apologizing for underestimating the actual gold price by $250 or more.
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Could Goldman be right this time?
nope, time to sell!!! gotta put my shorts back on!
So many traders here are so manipulated by GS. No wonder the manipulation continues.
Are most ZH traders actually the tentacles?
well they have been right 63 out of 63 trading days, but they're certainly not going to share their 'secrets' with you or anyone else.
the nyse has turned in to a ghost town, taken over by hp proliant servers. so can you blame them for turning the floor of the nyse in to a circus, oh excuse me, a thoroughbred, on a thoroughbred:
http://nhl.msg.com/photo/0dfea9t5iP8b5
But how many report desks do they have? I feel like Goldman has five heads and talks bull honky from each one simotaneously. Abbey Cohen/Blankcheck/this trading desk/this CFO/etc etc....
I can't keep up with all the trading "advise" that comes from them. How do they still have clients?
Why sell? If there is a pull back, I am going to add to my position even more. You can't have 15 trillion dollars of quoted debt just by the united states... and have all the gold in the world be equivalent to only 6 trillion dollars. I see no reason why the intelligent people that come to this site wouldn't take advantage of an obviously sneaky move by Goldman Sachs... they have surely caught on to how people view them as contrarian indicator by now.
I am looking to store my hard earned purchasing power in a currency that has some staying power... like a proven track record of 6000 thousand years by gold.
Surely, the printing presses have been in overdrive... all that cash... redeemable for nothing... except an empty promise that people will remain delusional forever.
"...they have surely caught on to how people view them as contrarian indicator by now."
So you think now they feel everyone knows their game but a week ago they didn't think that everyone knew their game?
I gotta think about that some more...
Well, when you put it like that...sure, it sounds unbelievable.. but this is the same company that has a 99% track record of getting on the right side of the trade. They have to be very dynamic in their approach to maintain such returns.
My point is simply not to get influenced by their manipulation game, but to act on the facts. Fiat money is the real bubble. Gold will always have some worth as long as there is some form of trade left on this planet.
on second thought... Gold is falling... Sell. Everyone sell! Please, I beg you. I am telling you this for your own good. Sell. Sell. Sell NOW!
Well, when you put it that way... It is pretty ridiculous to sell based on GM.
Duplicate, apologies
http://www.cnbc.com/id/37780974
this was on drudge...please dont think i read cnbc unless drudge sends me there. on a side note...this would make me think the dollar is going to take a dump and equities flash surge. on no volume.
Oh shit. I'm fucked.
Gotta sell all my gold calls and buy gold puts now.
Goldman likes GOLD? I'm clusterfucked! Oh my god... We are ALL clusterfucked!
GS likes the gold ETF's. The ETF's don't have the gold they claim to have. They will soon be fucked.
Yeah I noticed that it seemed like they were touting the ETF's too. Funny stuff.
But for now it is we who own physical gold that are fucked because the ETFs suck up money that, otherwise, would be purchasing gold instead of paper. When a billion dollars goes into GLD does anybody really believe that GLD is purchasing anything near that amount in physical gold? Why should they? If you've read their prospectus you know it's impossible to hold them accountable BY DESIGN.
"we who own physical gold that are fucked because the ETFs suck up money that, otherwise, would be purchasing gold instead of paper."
Agreed
I personally don't think any of the banks' price targets for gold are on the right order of magnitude. Banks, reits, AAPL, tech stocks, etc., can double, triple, quintuple in a year, but gold will go up 10%? I don't think so.
Not with gold staying at 1238. Looks like we got a new support. 1260 is very likely for this month and 1320 for next month.
If it weren't for the valiant efforts of a company called BP crude would have fell off the shelf and crashed to the floor. It's the mother of all stick saves for the inflationestas.
So it's oil and copper up, gold down. Is that the proper 'opposite' play. Or is Bugs right and Goldman's playing it tricky dicky this time because they know that we know that they're full of shit so now it's time to go opposite to really f everybody's mind . . .
On go with them and really, really f everybody's mind ...
Goldman knows war w/ Iran is on the horizon, they're trying to stock up on oil on the cheap!
cheap oil... I wonder if those two words will ever be used like that again...
funny how 3 days before gold option expiration they came out with this...fcking criminal crooks, they forget what happened at the French revoloution...
Is Options Expiry Friday last Friday? Or this coming Friday?
See this
http://jessescrossroadscafe.blogspot.com/2010/06/some-gold-and-silver-tr...
Yes, it is on the last day that the son sits on his throne. AHEM!
That's fucked. I thought even Cramer was saying not to buy last week until last Friday's option expiration. Doesn't make sense. I thought it was the third Friday of the month? This week is the fourth.
Stock options expire on the third Friday
Thank you for clarifying. So, does that mean that the PM options expire on the 4th Friday of the month? Or is it commodities?
This means it all goes down....
Uh oh! Take your gold profits and buy back at $1000. Goldman saying $1400 means its going down. They are the contrarion indicator for all they touch. Now we know the markets are set to dive as well.
Do they ever discuss the fact that all currentseas are being debased in the most vigorous way? Put that in your pipe and smoke it, ass clowns!
Exactly. Debasement and a necessary war will more than double gold and crude.
Oh, ohhhhhh!
http://twentypercent.tv/2010/06/22/renaissance-2-0-lessons-to-enlighten-recover-our-humanity-and-break-the-monolithic-monetary-monopoly-that-controls-everything-in-the-united-states/
HEHE, they are calling copper lower, after its already fallen $1500 ROFLMAO Copper is going back up for sure now.
Hmmmm. So the housing/commerical development market is going to rebound? Where will all that copper be used to create such demand?
Riddle me.
US Presidents on the Foolishness of Banker- issued Debt- Fiat- Paper Currency
"All the perplexities, confusion and distresses in America arise not from defects in the Constitution or confederation, nor from want of honor or virtue, as much from downright ignorance of the nature of coin, credit, and circulation." John Adams, letter to Thomas Jefferson -2nd US President John Adams
I believe that banking institutions are more dangerous than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered -3rd US President Thomas Jefferson 3rd US President
History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance. -4th US President James Madison
If congress has the right under the Constitution to issue paper money, it was given them to use themselves, not to be delegated to banks. -7th US President Andrew Jackson
The Government, not banking instutions, should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. In this way, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity. -16th US President Abraham Lincoln
Issue of currency should be lodged with the government and be protected from domination by Wall Street. – 26th US President Theodore Roosevelt
I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. – 28th US President Woodrow Wilson
The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government ever since the days of AndrewJackson. -32nd US President, Franklin D. Roosevelt
On June 4, 1963, an attempt was made to strip the Federal Reserve Bank of its power to loan money to the government at interest. On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. Mr. Kennedy's order gave the Treasury the power "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury." This meant that for every ounce of silver in the U.S. Treasury's vault, the government could introduce new money into circulation. In all, Kennedy brought nearly $4.3 billion in U.S. notes into circulation. With the stroke of a pen, Mr. Kennedy was on his way to putting the Federal Reserve Bank of New York out of business. If enough of these silver certificates were to come into circulation they would have eliminated the demand for Federal Reserve notes. This is because the silver certificates are backed by silver and the Federal Reserve notes are not backed by anything. Executive Order 11110 could have prevented the national debt from reaching its current level, because it would have given the government the ability to repay its debt without going to the Federal Reserve and being charged interest in order to create the new money. Executive Order 11110 gave the U.S. the ability to create its own money backed by silver. After Mr. Kennedy was assassinated just five months later, no more silver certificates were issued. 24 June 1968 was the last day for redemption of Silver Certificates in silver bullion by the US Treasury. -35th US President John Kennedy
‘Silver has become too valuable to use as money ‘ -36th US President President Lyndon Johnson
I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. – 28th US President Woodrow Wilson
This dirty bastard "I have unwittingly ruined my country" sure got that right!
He's too easy on himself. He also encouraged the creation of a federal income tax and while not an active supporter would probably count as a passive supporter of Prohibition. Add that to getting us into WWI and having an attorney general (Palmer) who treated the constitution as toilet paper and Wilson was perhaps the most despicable president ever.
Last post tonight
CFR's Trilateral Commission Connection
http://www.youtube.com/watch?v=DzZVBjMxHwc
US Goebbels Media lost the battle today in preparation for G-20 meeting.
Please reveiw again. Repost from this Saturday.
FSB
http://www.financialstabilityboard.org/
Avinash Persaud discusses the debate on financial regulation, the role and mandate of the Financial Stability Board ( FSB) and its relationship with the G20 at CIGI's Issues for 2010 Summits conference (May 2010). Avinash Persaud is the Chairman of Intelligence Capital Limited, which he established in 2005.
http://www.youtube.com/watch?v=kqnz-MjFtHY
Implementing the Europe 2020 Strategy: Key Next Steps
http://www.youtube.com/watch?v=k8vEfXnEa-o
Good night fellow ZHer peasants. Just kidding. Keep up the great work. Your getting warmer.
GS is using reverse, reverse psychology to shake out more weak hands. For me it doesn't matter; I'm long (physical) and nothing will change my mind. Everything being rigged and manipulated can have only one end; failure! So to that end, everything in the middle is just static.
Gold just is and old money knows it!
Why does Tyler always say 'Goldman'? Goldman this and Goldman that, blah, blah Goldman.
Shouldn't he say Daddy. Daddy told me this, or I overheard my father talking about the Obama/Gore Chicago based carbon exchange(CCX) today.... or whatever.
And where the flock is Marla? I think the place becomes a lot better when her evilness is on ice. She should travel more often.
You got it all wrong; Tyler is with the FED, Marla is GS, Leo is Merrill Lynch and we all plan 10 moves ahead of you fuckers at our weekly CFR/Committee of 300 [yes we belong there also] session at the Rockefeller center. If you wonder with which firm I belong; I'm what they call an "independent economic contractor" [wink wink nod nod]
Shakes? Me too. I get 'em bad. It's part of the business.
GS is sort of like that statement "Everything I say is true; except this'. OR 'Everything I say is a lie; except this"
Gold is starting to look like tulips (silver too, to a lesser degree).
So I went long copper 2 weeks ago.
That the failure prone bankers over to 85 Broad think otherwise only serves to buttress my confidence.
"No one goes there anymore, it's too crowded" will soon be the call for gold/silver
don't say I didn't warn you
Yawn.....................
Words, words, words.
Does it strike anyone else as odd that the price of gold goes up or down over 1% in a matter of minutes and just stays there the rest of the day?
Gold may be trading 1220 for 10 hours, then, boom its trading 1240. Or the reverse.
I recall seeing this kind of discontinuous market manipulation the summer of 2008 when oil was ramping from 80 to 145. Also, when the stock market was ramping in 2007. Remember how every Friday was an up day?
So when I see this kind of shit, and I hear the open interest is at all time highs, I've got my eyes on the exits.
Gold goes on a AM fix and PM fix. It's perfectly normal.
Usually happens in the middle of the US trading day. My point being the price is being manipulated.
After the SHTF and most things totally FUBAR the reckoning will come and those responsible for raping the people and the manipulators of metals and other things for the benefit of a few.....will come to the sad and grim day of payment, by the will of the people, for justice.
http://www.youtube.com/watch?v=dXels5zsE_M&feature=related
The squid sold BP on insider info:
http://market-ticker.denninger.net/archives/2433-Gods-Work-Luck-Or-Lawbreaking.html
Squid advising BP: My Take...
They've already bet on BP BK. Time bomb set. Tick tick
Grudging bullishness is probably just a new twist since everyone knows to fade anything that comes out of Goldman's mouth by now. Hopefully it's still enough to torch the AU market, as it's long past time to see the Cramerites and other retards get blown out of the water again. They are not welcome on my team until I want to sell.
i know it is a hated index here, but baltic dry index broke its trend line...
http://investmenttools.com/futures/bdi_baltic_dry_index.htm#bdi_gold
i threw up the link that shows divergence with gold..
So, what does that mean then? Commodities set to go downward?
Thanks for the very comprehensive link, it adds a lot of value to just reading the index itself. That one made my bookmarks list. I've watching the BDI since ZH called attention to it a few days ago, pondering the implications -- this helps my thought process a lot.
"...But how many report desks do they have? I feel like Goldman has five heads and talks bull honky from each one simotaneously. Abbey Cohen/Blankcheck/this trading desk/this CFO/etc etc...."
I have to agree. It's like: 'And now, trading advice from "The Hydra"
"The Sqwidz" silly. Each one has ten-tacticals.
The deflation period is about to capitulate, get ready for massive collapse, then Benny and his unfounded Yippie wisdom, will try to inflate everything as fast and hard as he can. Get ready folks, hope you are prepared for the massive hyper-inflation that is knocking on the door. !979/80 rates at 20%+ is going to look like 2% by the time Benny gets done. Silver $500 Gold $5000 after we finish deflating and the inflate begins over the next few months. 6-9 months tops.
Some very interesting facts and thoughts going forward from the past:
"It took Paul Volcker and 20% plus interest rates to save the dollar in 1979/80"
Nystrom's Two Cents
"What I noticed was that gold really began its takeoff after the announcement on November 10th that the Fed would discontinue publishing M3, in March, shortly after Bernanke takes over as Chairman. This announcement, combined with Bernanke’s inflationary reputation, was apparently all that was necessary to convince traders that future inflation is a sure thing and that the Fed is taking steps to be able to hide it."
"The U.S. can do only 2 things I believe to delay the inevitable. (1) Hyper inflate, a policy that may come to fruition under our new Fed Chairman Ben Bernanke, or (2) Pass draconian police state measures in the U.S. economy to control the economy, a policy that will not go very well with the U.S. population. As per gold in the last several days, it is suspected by a some people that at least one central bank (which one(s)?) is rapidly buying up much of the gold on the markets, or enough to drive the price up. In any event it would be very interesting to see where gold will go"
"The potential still exists for a large rise in the gold price in the longer term if the U.S. Dollar resumes its weakness. The potential exists for gold to rise possibly as high as $1,500 or even $2,000 or higher if the gold continues its uptrend. (Under almost similar circumstances in 1979-1980, the price of gold and silver tripled, or more.) One significant factor so far remains different - interest rates soared in 1979-1980 but that has not been the case yet (at that time longer term Treasury interest rates were over 15%, while the prime borrowing rate reached 21%)."
The only problem with this "..........Silver $500 Gold $5000 after we finish deflating and the inflate begins over the next few months. 6-9 months tops...", is, we've seen this exact same forecast 4 times in the last two years, and yet.......
"if gold-ETF buying were to continue at its current pace for the remainder of the year, we would expect gold prices to rise to $1,400/toz by the end of 2010."
Why gold-etf buying? That's the kind of buying that does nothing to the price of gold. It's the demand for physical that will cause the price to jump. GLD and SLV are diabolically clever.
It's simple, you dont listen to a sociopathic liar, nor take his views as contrarian indicator ... they're too clever. Buy as much physical precious metals as you can as fast as you can, forget trying to time purchases, and hold them. They are cheap now but not for long. Isn't it obvious the whole fiat debt system is collapsing around us? You want to time the final eruptions while hot lava is already flowing? I reside in a country with 7 active volcanoes and you know better than to hang out near one.
"Goldman Cuts Oil Price Projection From $96 To $87, Whacks Copper, Grudgingly Likes Gold"
Do the opposite and you'll be fine.
The LEAST Trustworthy Companies In America .
No surprise Goldman Sachs was number one on this list.
Dominic Elliott of the Financial News gives further evidence as to why Goldman Sachs made it to the top of this list:
A powerful independent commission into the reform of the UK financial sector has pointed to a waiver in Goldman Sachs' ethics code as evidence that banks are conflicted and should be forced to hive off certain activities.
Goldman Sachs, which takes the rare step of publishing an ethics code that emphasizes its "integrity and honesty", adds a rider that reads: "From time to time, the firm may waive certain provisions of this Code."
Goldman Sachs declined to comment.
That call on copper would have more credibility if the BDI hadn't broken recent support.
http://investmenttools.com/images/wfut/crb/bdirecent.gif