Goldman Tells Clients To Buy COMEX Gold At $1,364.2, Raises 12 Month Gold Forecast From $1,365 To $1,650, Silver To $27.60

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Tue, 10/12/2010 - 09:43 | 642904 Cookie
Cookie's picture Comex!!!

Tue, 10/12/2010 - 11:38 | 643269 perchprism
perchprism's picture


This comes just as the Vice Chair of the Fed lowers expections of QE2:

Tue, 10/12/2010 - 13:28 | 643600 midtowng
midtowng's picture

I remember an article from several years ago. It pointed out that the best time to buy gold is when real interest rates turn negative. I believe that is where TIPS are currently.

Tue, 10/12/2010 - 12:32 | 643427 dlmaniac
dlmaniac's picture

hmmm, 1650. Did they copy it from Jim Sinclair?

Tue, 10/12/2010 - 12:41 | 643453 Thunder Dome
Thunder Dome's picture

No, Goldman bets big using Armstrong's numbers.  Next May, market is in for horror show.

Tue, 10/12/2010 - 13:08 | 643541 Turd Ferguson
Turd Ferguson's picture

Just for's another top-caller who has been left for dead. Btw, what kind of idiot calls for a "triple top"? There is no such recognized technical formation. Note the date, too:

Tue, 10/12/2010 - 19:20 | 644738 Hephasteus
Hephasteus's picture

Goddamn. WTF was that? Now I understand astrologers that just babble shit to pictures calling it analysis.

Tue, 10/12/2010 - 09:43 | 642905 trip nixon
trip nixon's picture

short gold

Tue, 10/12/2010 - 10:10 | 642987 ssp2s
ssp2s's picture

Afraid so.  Or at least go neutral.

This tells me that QE2 may not be a done deal.

Tue, 10/12/2010 - 11:22 | 643211 LowProfile
LowProfile's picture


I think this is a pump for paper gold, prior to a dump of paper gold and equities.

This does two things, it gives Wall St. Corp yet another chance to suck even more money out of the middle class, and will drive many into bonds (the last bubble).

My analyisis puts gold at $1264.00 on a pullback.

Buy physical with both hands once it hits.

Tue, 10/12/2010 - 10:18 | 643006 tmosley
tmosley's picture

Short COMEX and/or GLD, long physical gold.

Hedged bet on default.  

Tue, 10/12/2010 - 10:30 | 643041 e_goldstein
e_goldstein's picture

short paper gold, or as I like to refer to it: "gold."

Tue, 10/12/2010 - 10:44 | 643070 Turd Ferguson
Turd Ferguson's picture

I may be "whistling past the graveyard" but GS may not have any luck top-calling gold at this moment in time.

Recall that on Thursday of last week, the Evil Empire succeeded in painting the tape with an outside downward reversal day. This is significant if gold either moves through and/or closes below the low of that day which was 1326. They have tried twice to get the avalanche rolling, the latest being overnight last night. By the way, if anyone still doubts the malicious presence of the EE, see the price action since 6:00 EDT yesterday for proof. (The EE tried to jam it down Sunday night before taking Monday off. Gold rallies all day Monday. As soon as gold re-opens at 6:00, down she goes.)

At any rate, our new best friends, the buyer(s) of size, continue to appear and buy dips at what appear to be pre-determined levels. Yesterday was 1335. Today was 1340. You can plainly see it on the chart. This has to be seriously pissing off the EE. Never, ever have they been unable to control the gold market in the past. Never. Yet now, they seem to have met their match in a determined group of buyers who are calling their paper bluff. Truly an amazing thing to behold.

OK, what's next? If the EE can succeed in driving price down through the lows of last Thursday, they will generate more selling from weak-handed, momentum-based longs. Expect 1275-80 by late week or early next week. The EE will, most likely, not be able to accomplish this without the cooperation of a dollar rally so, amazingly, this is not the most likely scenario. Instead and conversely, if gold can trade up through the highs of last Thursday at 1366, it will have begun to negate the outside reversal day damage. If/when gold closes above 1366, we will be off to the race once again with 1400 squarely in our sights.

The key to this may, in fact, be silver. As I've mentioned (ad nauseam?) for some time now, the silver Comex appears to be in serious crisis. Silver has rallied from 18 to 23 over the past 6 weeks and it is bringing gold along with it because "if the silver Comex is out of gold, the gold Comex must be a charade, too". The weekly close, back on Friday, above 23 is extremely bullish. On the chart, there is nothing overhead until $35 or so. We may see silver rapidly accelerate to the upside in the coming weeks. If so, no amount of EE price-capping will be able to contain gold.

Again (ad nauseam), I've maintained for months that gold would trade at 1350 by Halloween and 1500 by 12/10/10. Nothing, so far, has caused me to change my mind.

Tue, 10/12/2010 - 11:24 | 643222 LowProfile
LowProfile's picture

We already hit $1350.  I'm expecting a pullback to $1264.  Buy with both hands when it hits.

Tue, 10/12/2010 - 11:38 | 643266 SwapThis
SwapThis's picture

well said Turd.  It may be that EE will use INTC & JPM earnings spin as a good inflection point to try to 'risk off' the market, at least temporarily. If Jamie doesn't have a good answer to the foreclosure flap all the Big Cap banks could founder on tomorrows JPM conference call word as has happened in the past.  Also, INTC tends to sell off post earnings, which they have pre-announced would be soft.  Also the DXY is stronger today which may be the EE beginning to apply the brakes....for now.

Tue, 10/12/2010 - 12:08 | 643349 Slewburger
Slewburger's picture

Is GS trying to pull money into the CMX silver before they know it will pop?

The shorts have been unwinding and covering since the Maguire scandal, so what gives? The paper fraud probably won't be covered by the MSM and it will happen after the PM bubble bursts.

Tue, 10/12/2010 - 13:45 | 643651 SRV - ES339
SRV - ES339's picture

EE... love the handle Turd!

I'm with you on the EE / market struggles... with the market seeming to get the upper hand since the Maguire revelations (funny how cold that story got... not a word since May... I guess Andrew decided to continue breathing for a few more years) 

Question... do you see any tie to pre T-Bill auction activity (raid gold price to drive funds into bonds... of course, stocks get choppy as well, but that's just hitting HAL's sell button a few hours a day)? Example... the last few days gold price activity prior to this weeks auctions.

Tue, 10/12/2010 - 15:24 | 643986 Turd Ferguson
Turd Ferguson's picture

Interesting thought, SRV.

If you pull up a chart of gold dating back to the end of the most recent correction in July, you'll plainly see that about 80% of the $200 or so gain since can be attributed to price action on Mondays and Tuesdays. I find this somewhat strange and I can't seem to get a handle as to why this is occurring. Maybe later week auctions are soaking up $? I dunno. Have to look into that one.

Tue, 10/12/2010 - 09:44 | 642906 beastie
beastie's picture

Aw crap! price will collapse tomorrow.


Tue, 10/12/2010 - 10:14 | 642996 umop episdn
umop episdn's picture

I'm thinking along these lines too. Glodman gets it's customers to buy, then massive short selling of paper gold by Glodman's friends takes the price down, which causes some to sell. Then the squid buys back the paper (and the physical if they can) and the price of Au and Ag continue to climb.

Tue, 10/12/2010 - 09:47 | 642916 Internet Tough Guy
Internet Tough Guy's picture

A disgusting tentacular display. This cephalopod speaks with forked beak.

Tue, 10/12/2010 - 09:55 | 642943 French Frog
French Frog's picture

when qe2 fails to materialise as much as expected and the price goes down, gs can just blame it on the fed

Tue, 10/12/2010 - 10:19 | 643011 ATG
ATG's picture


Wasn't GS propping $300 oil in 2008?

Tue, 10/12/2010 - 09:49 | 642921 mrgneiss
mrgneiss's picture

They're also urging miners to hedge for 2012.  Isn't that kind of them.  I guess 2012 is when PM's go parabolic.

Tue, 10/12/2010 - 09:49 | 642922 Silverhog
Silverhog's picture

Buy Comex? Yeah if they have a physical shop.  I don't think so

Tue, 10/12/2010 - 09:49 | 642924 scratch_and_sniff
scratch_and_sniff's picture

i'm still not 100% sure that the dredful reserve will go all-in, this could drag on for ages...i'm not holding any gold at the minute, so on the fence with respect to the bling. Its broken my heart to be honest.

Tue, 10/12/2010 - 09:49 | 642925 firstdivision
firstdivision's picture

Time to short it once Goldman raises their price target.  "Goldman, the best contrarian indicator money can buy".

Tue, 10/12/2010 - 09:59 | 642962 Dagny Taggart
Dagny Taggart's picture

...but this time its different. Hahaha, I know.... but trying to figure if Lloyd is pulling a Bennie is tricky stuff. Head fake? This is akin to a really bad made for TV whodunnit. What if GS knows gold is about to shoot for the moon and needs to say it told the clients and the White House? Does anyone still work at the White House?


Tue, 10/12/2010 - 10:08 | 642979 gmrpeabody
gmrpeabody's picture

Agreed, this is win-win for GS.

Look, we gave our customers a heads up. We can't help it that the FED failed on their end.

Tue, 10/12/2010 - 10:29 | 643037 DosZap
DosZap's picture

No just wait staff, the only one's working at the WH is PoUS, and he works for the Big 4 Banks.

Tue, 10/12/2010 - 10:35 | 643056 Dagny Taggart
Dagny Taggart's picture

Right? Can you see Michelle O, plopped on the floor, counting the silver after summers and rahm left?

Tue, 10/12/2010 - 09:52 | 642935 Bruce Krasting
Bruce Krasting's picture

Who knows where gold will be in a year? I could give you a scenario that it could be $5,000. I could also make you a case for 800.

I think GS is on the right track. A year from now gold will be higher. But it sure scares me when these guys are the ones pushing the "buy" talk. They ALWAYS have an axe to grind....

Tue, 10/12/2010 - 10:20 | 643012 tmosley
tmosley's picture

I can make a case for Gold $800.  The Fed calls the currency and reissues one with three zeros chopped off.

Tue, 10/12/2010 - 10:33 | 643052 DosZap
DosZap's picture


They are close to Jim Sinclair, he has a million dollar bet it hit's $1650.00 by Jan 2011.

Which I am sure you know about.

How do you make a case for $800.00 in a year, with what we have coming at us, with no way to derail it?.

Tue, 10/12/2010 - 12:42 | 643457 VWbug
VWbug's picture

he doesn't 'have a bet'   he has a publicity stunt.

as soon as anyone steps up to take the other side he will come up with a million excuses why he can't do it.


Tue, 10/12/2010 - 13:05 | 643539 Ace Ventura
Ace Ventura's picture

I may be misinformed, but I seem to recall the bet has indeed been formally taken? Supposedly some hedge fund agreed to the terms and the wager funds are being held by a third party.

I'm not 100% positive, but maybe some of the diehard Sinclair readers might have official info on this?

Tue, 10/12/2010 - 13:21 | 643583 VWbug
VWbug's picture

hey you could be right, i said somewhere else here that every trader in the world would take him up on the offer.

here's my bet:

They can't come to terms, and it will be Sinclair that walks away.

Second bet: The hedge fund does not lose money, even if the prediction is correct, (unless Sinclair welches on the bet of course.)


Tue, 10/12/2010 - 09:53 | 642936 trillion_dollar...
trillion_dollar_deficit's picture

If they can forecast ZIRP to 2015, then where's the forecast for gold in 2015?

Tue, 10/12/2010 - 09:54 | 642940 rolo
rolo's picture

Typical - just when i thought we might get a nice move, GS and the rest of the banks start upgrading their price targets!

Oh well, I guess there is the possibility that they might actually be correct this time.

Tue, 10/12/2010 - 09:54 | 642941 system failure
system failure's picture

Keep your physical gold and silver and sell any and all paper gold and silver now is the correct interpretation of GOLDMAN SUCKS conviction buy!!!!!!!!

Tue, 10/12/2010 - 09:55 | 642942 Commander Cody
Commander Cody's picture

GS contrarian.

Tue, 10/12/2010 - 09:56 | 642945 VWbug
VWbug's picture

but i thought GS was part of the giant conspiracy?

You know, the one to manipulate gold prices lower to protect somebody's short position (why they wouldn't just cover it is beyond me, that would be a lot easier).

Damn, now I have to rethink everything! Just when I thought the giant squid was running everything.

Tue, 10/12/2010 - 09:57 | 642955 system failure
system failure's picture

JPM Chase took over Bear Sterns GOLD/SILVER manipulation, Goldman Sucks just front runs the work of JPM/Fed.

Tue, 10/12/2010 - 10:26 | 643025 VWbug
VWbug's picture

ooohhh   so JPM is behind everything? Now I get it.

But didn't GS get the memo from JPM and the fed?

I thought all the CBrs were GS alumni?

And why doesn't JPM just cover their short position, it'd be so easy, I mean it can't be very big as gold is so under-owned  right?


Tue, 10/12/2010 - 10:02 | 642969 TheGreatPonzi
TheGreatPonzi's picture

Shut the fuck up, idiot.

Tue, 10/12/2010 - 09:56 | 642947 lsbumblebee
lsbumblebee's picture

"And don't forget everybody...make sure you buy paper gold."

-David Greely

Tue, 10/12/2010 - 09:57 | 642952 CashCowEquity
CashCowEquity's picture

Goldman is for fruits. BOHICA !


Gold wins !!!

SIlver not bad either !!!


I own both PHYSICALLY !!!, Woo HOO Bitchez !!

Tue, 10/12/2010 - 10:04 | 642959 ArrestBobRubin
ArrestBobRubin's picture

Hey, even a broken clock is right twice a day... But I do think the squid has this one right. They are in very good company in making this call but are playing it on the conservative side compared to many other price targets.


Tue, 10/12/2010 - 10:01 | 642966 Alex Lionson
Alex Lionson's picture

Would be nice to hear what JPM or HSBC are saying in this regard

Tue, 10/12/2010 - 10:27 | 643029 Ripped Chunk
Ripped Chunk's picture

GS discussed it with them over the weekend.

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