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Goldman Has Presented Us With a Goldmine
Earlier this
week, Goldman Sachs caused a sell-off in several commodities when it urged its
clients to unload their currently profitable positions in a number of these
assets.
The
financial blogosphere has since been gripped by speculation as to why Goldman
did this. Is it allowing Goldman’s inhouse folks to load up on these prices on
the cheap? Does Goldman really think
the commodity story is over? Did God call and tell them that His work meant
selling commodities in April (yes, I made that last one up).
In the end,
none of these explanations matter. All that matters is that Goldman has
presented us with a buying opportunity in the commodity space. In fact, I SERIOUSLY hope Goldman issues
a MAJOR sell of Gold and Silver so those assets get cheaper.
Why? Well it’s
quite simple really. We are rapidly entering a period of intense inflation.
Commodities will be top performers during this period. And so the opportunity
to buy them at a lower price is a Goldmine.
I realize
that this view runs contrary to Goldman’s published
views on the commodity space. Many folks are genuinely worried that Goldman is
calling a major top as the firm is thought to be run by the smartest guys on Wall
Street.
Let’s debunk this right now. Goldman is run
by guys who literally made the firm insolvent. Their business practices
absolutely DESTROYED their business.
In fact, the
ONLY reason the firm still exists is because you, me, and every other taxpayer
bailed them out (several times by the way). The Fed and regulators COULDN’T have made it easier for Goldman
to stay in business, whether it was allowing the firm to convert to a
depository banking institution, throwing BILLIONS of Dollars their way, letting
the firm lie to regulators (and Congress by the way), and on and on.
Indeed,
Goldman is only “the smartest guys on Wall Street” if you equate relying on
HUGE moral hazard, front-running your clients, and selling assets that your in-house
folks KNOW are garbage.
So I’m not
particularly worried about Goldman predicting a top in commodities. In fact, as
I said before, I hope they tell EVERYONE they know to sell Gold and Silver.
Doing this will only make these assets cheaper. And it WON’T negate the secular
bull market we’re seeing in the commodity space.
On that
note, if you’re getting worried about inflation and have yet to take action to
prepare your portfolio for the coming inflationary disaster, we publish a FREE
Special Report on Inflation detailing three investments that have all already
SOARED as a result of the Fed’s monetary policy.
Again, this
is all 100% FREE. To pick up your copy today, go to http://www.gainspainscapital.com
and click on FREE REPORTS.
Best
Regards,
Graham
Summers
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just BFTD and say thanks....
The BDI (Baltic Dry Index) tanked 11% to 1.359 from 1.520 in the last two weeks which is very much because its all time high was 11.793. That is 88,5% below its peak in 2008 and 11% since April 1 2011!!! World is cooling and heading towards hell again. This is reality on the ground and no financial fantasy. Market sell off ahead between now and July! Decoupling is coming after next quarterly reports when the Japan disaster is weighing in. Forget fundamentals the damage is already done. We are bankrupt and food disaster is looming. It is over. Oil must come down or the farmers can not plant. Gold and silver could correct but the trend is higher. Stampede coming right before your eyes!
ok so let me get this straight: because Pheonix Capital Research's view on commodities doesnt agree with Goldman Sachs view on commodities, then they must be up to some deceptive no good by expressing their view?
secondly, what have i missed about Goldman's business? it doesnt seem insolvent to me. they never had a funding crisis, and the TARP investment was relatively small, the result of pressure on them to take it at all, and GS was falling over itself trying to pay it back sooner then the lender would let them. so how have they been "bailed out several times"?
you are a fucking moron. ever hear of AIG? if you think for a second that they weren't headed for a Lehman, you are a total idiot and should return your computer immediately.
Am I the only debbie downer here that believes in the possibility of deflation? The sky rocketing prices of pretty much everything, although chicken and eggs are actually lower, has created a lot of demand destruction. The housing market is still shit. Japan is fucked. China is about to raise reserve requirements, again. The Socialists Piigs and many US states are on the verge of bankruptcy. To me this seems to be the ideal environment for a deflationary contraction. Deflation would be much easier to accomplish than inflation. If the Fed were to allow the markets to actually work we would see the double dip in housing, a realistic stock market, and a modest recession. The next couple months would be a perfect time for a Fed allowed recession, since QE2 is ending, people ares starting to bitch (for some notice) higher prices of everything most specifically gas, and most importantly there is enough time before the next election to have the recession and then a glorious recovery to get our fearless dictators re-elected. If the Fed does nothing there's gotta be some chance for deflation, especially if Government Sachs wants it that way.
Your right and the Inflationists are right. Here in DE we call that Biflation when inflation and deflation occurs at the same time in different sectors. Why should they allow recession now? It would be far worse if they do it now after the economy has adapted to the subsidies. If you go this path you must go it to the end or the bond market will crash. They will print with or without announcement. If they do not print and the bond market does not crash they would violate economic history.
I bought back in to mostly.commodity and precious plays today. However i still think we are close to a real intermediate or hopefully long term top....
In any event be careful. It is time for a deflationary countertrend to make its appearance.
Goldman Sachs like other financial institutions is a primarily a marketing company. Their franchise reputation is all they got to compete with other banks. "Smartest guys on wall street" is their marketed slogan, but their performance is based on luck and as recent events and revealed, extereme greed and arrogance cloud their judgements.
Luck? Luck?
You call having the Sec'y of the Treasury printing 20 Billion dollars and giving it to his former company, Luck?
That ain't luck. That's called, "The Fix".
And then getting Timmay Geithner who failed at the FRBNY the job as Sec'y of Treasury, to further insure that Goldman Sucks and Lord Blankfein along with a significant number of other Sons of Abraham, not only get made whole for their 'bad luck' in getting caught with their CDOs and Swaps down, but being paid 10s of those billions in bonuses???
Afraid that ain't luck. That's structural fraud, corruption and outright theft.
And let's "Never Forget" the John Macks who managed to get several hundred million in UNSECURED credit for a measly 2% down payment.
Really, some several people in New York have to be made extinct.
i realise this a complex business so understand your misconceptions, but for the record noone is actually "printing money". this is just a disingenous metaphor used by people who dont like central banking. further, the Treasury doesnt "print money" in any sense. that is what the Fed does. how can you not know that?
something else you apparently are not aware of: the various cabinet Secretaries are actually appointed by the President, and neither the present nor the last ones were 'sons of abraham', so far as i am aware. the appointment is also ratified by Congress, so if you dont approve, you know where to spray your complaints, right?
Yer talking about the carpet and the drapes. I'm talking about the structure.
The Fed gave the money ON ORDERS from Hank Paulson and/or it was a collusive effort to do it. You don't know that??? And semantics aside, Q.E. 1 thru whoknowshowmany, isn't 'printing', yer right, but entering a 2-3 digits in a computer is even easier and has exactly the same effects: They are given billions of dollar for failure. Which, btw, makes the dollar worth less, and shifts the burden partially on to the backs of everyone BUT themselves.
And if you think the POTUS appoints anyone, yer really in outer space. He is a hand puppet with Wall Street, Lord Blankfein and Jamie Dimon so far up his ass he chokes on it.
Of course GS are a bunch of vaginas you wouldn't touch even with a bucket of KY Jelly.
But now all the banks are rich with equities, and Parker Brother dollars. Good luck trying to sell those dollars for anything.
It wont matter if you get out the equities door first or last when the SHTF because your dollars will be scrap paper either way.
Top the top of my top as it spins to a stop; then un-twirls all sudden in contrarian roar as it goes contango-galore. Encore, cherie amore, my golden she-camel of monetary fore-play, I'm looking for payoff in denouement finale, cascading into casino royal!
###
Earlier this week, Goldman Sachs caused a sell-off in several commodities when it urged its clients to unload their currently profitable positions in a number of these assets.
###
WHO WORRIES ABOUT WHAT GS SAYS ABOUT GOLD/SILVER (not sure about oil though) IS COMPLETE IDIOT that didnt his home work and knows nothing about USA macro picture...
USA goverment runs 1 trln per 6month deficit... period..
despite all those news about growth, blah blah ..
ONLY ULTIMATE TEST IS TAXES... its what I can verufy..dont give a fuck about GDP/labor/etc .. that bullshit from NBER/BEA/BLS/etc..
so taxes are yet to recover.. federal income taxes are yet 20% below 2007 top, federal corp taxes are 50% below..
goverment spent trilions $$$ for last 3 years but didnt get anything in return... deficit is still huge AND GROWS cause expenses are up 2-5% for 3.8 trln budget...
its spiral to death... as sson as 10 yy %rate is up up even by 2-3 % its over.. its 500 bln $$ more of debt serivcing..
SO BUY physical GOLD/SILVER/AMMO.. and dont listen idiots from wall street or athour of this article for that matter..
good luck
alx
your point is naive. you can sell out of your positions as per goldman's hype and then re-enter at dip and make extra $$$. If you're into that sort of thing. But to not listen? This whole shitstorm is run by idiots so why not profit off of them?
there are billions in pension funds which follow Goldman like cardinals follow the pope. don't think is a non sequitr. They need to get inflation and commodity costs under control. They are they, all of them
alex, I could not have said it better!
GLD, SLV, USO and your other favorite flavor commodity as fiat purchasing power plunges.
commodity prices are up in all currencies, so these price rises are largely not the result of anything happening to the USD, even if that fact is inconsistent with the endless ranting on ZH.
must be something to do with supply and demand. well, duh. as anyone would realise if they just look at the news, and see how there are critical supply shortages in a whole range of commodities.
premium over spot rose at apmex another .20 yesterday on 100oz bars
wouldn't mind if it came down from 1.49 to .89 like it was
Looks like the market isn't buying it and the last 2 day drops where just a pauze after a 9 day run.
People have been calling it a top since it was at 14$
The collapse of paper money will make the 2008 collapse of financial markets seem like the prelude it is. Capitalism, i.e. economies based on the substitution of debt-based capital for gold, is possible only when capital, i.e. paper money issued by a central bank, is itself tied to the precious metal. In 1971, that changed.
It was the removal of gold from capitalism’s monetary foundation that sent capitalism’s endgame into motion. Thirty years later, it is reaching its destined end. What will also end is the vast inequities the system encouraged and abetted.
Nobel winner Joseph Stiglitz recently observed that the top 1 % in the US now receives 25 % of America’s income and controls 40 % of its wealth. This is to be expected as capitalism rewards those closest to the spigots of credit, i.e. bankers, and those who employ them.
All others are but temporary winners as over time the house cannot be beat—at least not until the house burns down. However, the fire has been lit—the house itself did it in 1971—and the banker’s house of cards has been burning ever since. Paper burns, gold and silver don’t.
"Nobel winner Joseph Stiglitz recently observed that the top 1 % in the US now receives 25 % of America’s income and controls 40 % of its wealth. This is to be expected as capitalism rewards those closest to the spigots of credit, i.e. bankers, and those who employ them."
More accurately, "This is to be expected as crony capitalism rewards those closest to an all-powerful government's piggie troughs."
Darryl Schoon ?
Whens the last time they made predictions like this and were right?
and if they are calling for a significant market drop to tear up comms
why tell us?
f gldman
Liar's Poker -- page 110.
How We Got The Bada Bing Club On The Conviction Buy List by Tony Soprano and Pauly Walnuts -- page 85
from Ben's mouth to Lloyd's ear. In case you haven't noticed the entire Fed/Treasury/Financial Olligarchy and Military Industrial Complex is now Fascist Economy Central. If God (and the nation) are served by lower commodity prices, then Goldman makes the call. Keep in mind that economic theory, and economic policy are separate systems, theory follows policy. If you control all aspects of the economic process, policy is whatever you make of it.There are no failed policies unless you are so incompetent as to be unable to run your own economic model for development. The global picture doesn't change things, they merely follow our policy, peg our dollars, export to our markets, at our rate of exchange. Goldman is merely a middle man in the process, the rentier class, they charge for use of the money, but they have a vote, millions of votes, and they always follow the status quo. Now as election time nears, the status quo rears its head and its reptilian brain. Otherwise called animal spirits on Wall Street. And hopefully all the little reptile eggs will hatch. (that's us, one man one vote types, the consumers, those who make their economic models work. don't ask how, unless you like to see how suasage is made and stuff like that)
naw, its just fiat decree supporting fiat currency.
its a delicate issue, Goldman may frontrun Fed policy, but they will never contradict it. (I once imagined they might, but the Feudal economic model is no longer possible. We must choose between Fascism and Socialism and some parts of both probably) Especially in an election season, (and in the middle of three wars) Goldman will not fight the Fed, especially when they have some skin in the game.
Thats not to say i dont agree
ooh.... did you say reptilian spirits on wall street eggs will hatch?
hahaha
are you here alice?
there was one more visual pun, that of consumers, hatching from their mothers eggs, causing economic recovery, running toward the water, while angry seagulls pick them off one by one. too early for that sort of imagery
Dollar-cost-average purchases of silver stopped in my portfolio when the spot passed $35. If silver pulls back for a while and dips, you betcha I'm going to load up on some more.
popular theory... a bit too popular im afraid.
Might not happen, I know, but it's best to be prepared just in case. Getting my cash ready. Then again...if this rocket shoots (eventually) to $60, $70, etc., then a $40 buy doesn't seem so bad. Such is always the dilemma...when to buy? Hence my past dollar-cost-averaging method. But to continue it...that's the question on the table now.
They did longs a big favor yesterday. The thanks to the Goldman clients that took the bait.
BTFD please and thank you.
This is irresponsible at best, and blatantly deceptive at worst.
Goldman may be wrong in calling the top, but then again they may not be. Hedge your bets right now and take SOME profits to cover potential losses.
The fear -- the really big fear -- is that Goldman is privvy to some inside info about coming legislation regarding metals transactions.
The long discussed tax hike on gold sales would put one hell of a dent in the gold market. (Which would of course, be the entire point of such a tax).
Goldman, as a firm, is uniquely positioned to know all about that kind of forthcoming tax policy long before we mere mortals get clobbered with it.
There may be more to this than just 'calling a top'...
Whatever you may think of the House Republicans wimping-out on the budget cut issue; I can't possibly believe they would approve a tax increase on PM sales. In fact I have trouble believing they would pass any tax increases...
I do my own research, mark up my own charts, and make my own decisions, TYVM. Would you take the advice of NAMBLA when searching for a babysitter?
This attempt at provoking panic selling prompted me to evaluate my oil/energy position and to stay in oil. Peace didn't suddenly break out in MENA. Even if QE∞ isn't inevitable, the ongoing soak up of US debt certainly is.
The best prop for the dollar is its action as a hedge for the precious metals.
By encouraging a commodities selloff, it means more pressure for the dollar is on tap.
I keep waiting for "them" to get a bit less sublime, and start telling the actual trade for once, instead of making us read between the lines.
China made them do it.