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Guest Post: Gold Enjoys A 10% Bath Following Strong US Data And Weakness In Euro-Region
Gold Enjoys A 10% Bath Following Strong US Data And Weakness In Euro-Region Submitted By John Bougearel Of Structural Logic
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If I was accumulating Ferrari's, I would want each one that I bought to be as cheap as possible. I would know the true value of the car and look for future price appreciation rather than try to "flip" it the next day, hour, minute, etc...
Same with Gold. Will I always have to spend $1000 per Troy Ounce, plus premium plus shipping?
Where's my cheap Gold, bitches???
I only flip Ferrari's.
Where's my cheap Gold, bitches???
www.tulving.com/goldbull.html
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Since you asked... As for Ferraris, you generally do not want anything made after 1972 imo. Virtually every model made after 1980 are 'a dime a dozen', especially the mass produced 308, 328, Mondial, 355, 360, 430, 550, etc. TCO of a modern Ferrari (after 1989) is in and of itself insane, which makes the vintage models a better buy as they are far easier to work on due to basically being pure mechanical and pretty much point-to-point electrical.
yep - we all got our F430 spiders...
if you want something to work on, just get american muscle cars..
I hate it when these writers use petroleum based lubricants on me when explaining the price changes of Gold. ( That is the yellow metal for all of you know it alls.)
It's simple. Central banks are the largest sellers of gold on the planet. Here's how they run thier business.
"It's not a good time to buy. It's a bubble."
"We can't gaurantee you that it won't completley crater in value tomorrow." No warranty buy as is.
"It's just a commodity only you can't ever get rid of it or use it. The shit's like as permanent as our lies."
Worst salespeople EVER. Look at Barrick Gold. Find out when it's going down because they want to cover a bunch of shorts at the HIGHEST price possible. They will buy that on the open market with printed money. Or simply juggle fake receipts on the open market. Whatever works.
It's a stupid game. Everytime they win big they lose more and more control over it. Then they have to forcibly regain it, using force of law, force of arms, force of prison, force of force.
The implied warranty of control is not going to work this time. They are going to have their warranty violated and violated hard. The pimps are going to have millions of psychotic raging whores that just won't be pimp slapped any more.
the last report was a good number?
if you wear a suit and suck the cock of the man like most of the economists.
remember the witch hunts, it was the lawyers who pushed for the trials.
now this phony economy is pushed by the economists.
the intelligensia always knocking at the door of the rich.
the last report was a good number?
it's not even a good number in canada, where the women have beavers.
the gold bugs have been riding this bull market when gold was 250. they can't wait-a to exit.
- 1000
Lame, dude.
are you waiting for the average person to lose-a his money in the gold bubble?
in the meantime you fight against the other asset bubbles?
oh yes, the gold bugs are the salt of the earth.
Did you read: "The upside for gold bulls is this: neither the stronger than expected Dec 4 jobs report nor the Dec 11 retail sales report were very credible."
then-a they should-a said reputed strong job numbers
but 'credible' does not mean tampered but mis-calculation due to insufficient reliable data
thank you for try correct a me
like socrates say, 'all i know is how little i know, and i'm not sure of that, and can i have the last piece of chicken'
Interesting analogy.
The value of the Ferrari is the "perceived" value i.e. what someone else is willing to pay for it; that's all.
Gold doesn't do anything, there's no earnings power, it has no intrinsic value and is only worth what someone else is willing to pay for it. Right now gold is high because the PERCEIVED VALUE of the dollar (and the US economy) is low. When that changes, which it will, the dollar will rise and gold will get crushed because people will not value it as much (the dollar is up just a little bit and look at the correction in gold).
If you want an example, look at gold in the late 70's early 80's http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx
everyone was so worried. everyone was screaming the sky was falling and the US would collapse. If you bought into the frenzy you would have owned gold in the $700's and would have finally broken even roughly 28 years later.
I missed the analogy. What was compared to what? Oh, Ferraris to gold? Well, as a store of value they might be. There are some missing parameters: Fungibility, Divisibility, etc. -- you know the drill.
Your gold comments demonstrate a misunderstanding of what the stuff is. I won't waste both of our time explaining it. The explanations are much more eloquent elsewhere.
You left out the inflation of that $700 quote, but then that's the whole point, eh?
Watch out, the sky is falling metaphorically speaking, and the U. S. is in the process of collapsing at the current rate of financial irresponsibility. So, where is your money?
Where's Gordon when he's needed?
^^
Koolade, you had too much.
If you print a trillion dollars, and it doesn't actually go to purchasing anything, is there inflation? Or does printing the money counteract the potential deflation that exists from an asset bubble, leaving the actual value of dollars to be the same?
That's the one thing that I've never heard all you "Gold is going to 9 million dollars by January" people explain.
Inflation only exists if the dollars printed actually reach the economy. As the nation currently stands, the dollars aren't reaching people who spend them.
They're sitting on the balance sheets of failed banks as a reserve against leverage. Yet, since they don't interact in the economy, they don't actually inflate anything.
Say what you want, but it's the truth.
it is true but everyone wants to know what tricks the FED and the Gov are doing to pay for everything so in a way those dollars HAVE to come out of the closet at some point..
unless you think we'll just shut down the schools and open the jails? and let unemployments go to say, 60% ??
So, we won't see these dollars come through the loan teller windows but they will go into the food stamps, benefit checks, gov payrolls to keep the economy wheels spinning and whatever tax payments still flowing back
Could not have said it better. Thanks.
I get really tired of explaining, re-explaining, and explaining again.
Ya know, I could give a crap whether anyone buys gold, stocks, or whatever. But, trying to convince another that they are wrong only points out the fear that is inherent in any type of wealth preservation other than PMs. I own gold/silver and I could care less what happens to the "markets". There is no claim on my wealth and I sleep very well. Bottom line: If you don't like PMs or think they are useless, etc., then don't buy 'em!
Inflation is a monetary phenomenon. That one sentence doesn't say how the phenomenon manifests itself, does it? That takes a bit of study and thought. Paying a lot of fiat money for a loaf of bread is one manifestation, but there are others. The extended unemployment benefits to keep the masses from revolting is another.
Oh well, I'm done bashing my head against the wall expecting it to turn into a door.
give it time, it will.
Every case of severe deflation has been met with devaluation; that IS the economists' single prescription.
You guys act like history never happened. Why is it so hard to let go of your faith in the dollar? Amazing that the people who daily complain about how irredeemably corrupt the US is are the biggest bulls in terms of its paper
the BLS are all greasy lying bastards. and their effete commisioner Dr Keith Hall is the main cocksucker.
what a pile of dog doo
It is absolutely insane for people to risk their money based on trendlines, fib retracement levels, Q waves, stochastics or whatever else these technicians come up with. It's all a bunch of witchraft.
Make a long-term fundamental call and stick with it until the fundamentals tell you otherwise. The fundamentals for gold are still positive and will remain so for a long time. Buy it, hold it, and ignore the nonsense.
"Make a long-term fundamental call and stick with it until the fundamentals tell you otherwise"
Kinda like speculating on housing. Play in the ponzi scheme until the scheme is not longer popular, then try and get out as the ship sinks. Good advice, Brian.
One day you'll all be whining that gold "shoulda, coulda, woulda..... if A B and C hadn't of happened."
Till then, the fundamentals point to another ponzi.
Keep buying, bitches!
not like housing at all - housing's fundamentals were clear to everybody who cared to carefully analyze them. Gold's fundamentals are so different from housing that it wouldn't make sense to list it all here. But it's not about buying a bubble hoping to get out at the top. What looks like a ponzi to you looks very good investment alternative to me. I own gold because paper currency is the ponzi bubble in my view and gold is the only thing I trust to protect my purchasing power.
why do you think central banks, hold gold, and report how much gold they have? it's because thats what backs up their paper, and gives you a reason to be confident, that something of real value, besides their promise, is behind the paper. why would a central bank involve themselves with a pm, unless they knew that it gives their paper it's value
so what are you gold bugs doing?? taking all your paychecks and converting it into gold?? don't you have to sell SOME gold to buy anything??
the way you all sound, is that u will hoard forever since there will never be a 'correction'
you are all basically betting on a wasteland to happen and then trading gold chunks for .. for what?? there won't be any civil land left to do business with.. if what you say is true, you wont live long enough for it all to settle back down again and use metals as store of wealth.. it will just be guns and ammo and fear mongering to get whatever you want
the world doesn't have to go to hell in a handbasket, to drive the price of gold up, just a few steps closer. besides, we're not betting on gold, we're betting against paper.
damn, you fiat bulls are idiots.
Look around you, man. History happened.
In every case of currency crisis, gold trades for whatever paper is around. Argentina, Zimbabwe, USSR, Brazil, Mexico, anywhere.
It's not special; it only has value LIKE EVERYTHING ELSE because people assign it that.
Utility ONLY HAS VALUE because people desire to make use! If we suddenly decided that manufacturing shit and driving cars was not useful or something we collectively WANTED to do, OIL would have NO VALUE.
Guns and ammo are not rare and have never been a good trading philosophy for individuals
Fxxkin-A
Why doesn't any of our congresscritters ask BB when he is sitting there in one of those hearings, "Mr. B, where did you get all that money to buy all that stuff? If there truly is no consequence to creating $3 trillion out of nothing, and then buying stuff with it, why not make it 6, or 9, or 900 trillion. What da' fxxk dude?"
You can't have it both ways. Either Central Bankers have discovered the Fountain of Youth, the Holy Grail, developed the Midas touch and untied the Gordian Knot all at once, OR, there actually is NO WAY to create wealth/capital/value from nothing, and this will all end very, very badly.
This is a market of men. There is nothing technical about it.
And that after this is accomplished, and the brave new world begins
When all men are paid for existing and no man must pay for his sins,
As surely as Water will wet us, as surely as Fire will burn,
The Gods of the Copybook Headings with terror and slaughter return!
Well, a familiar sound from the wilderness.... That was fucking refreshing..Carry on Brian
Yo, Brian. The comments hit ya pretty hard. I guess they don't know what "fundamentals" are. Even housing has some fundamentals, eh? You didn't say to ignore them, just keep an eye peeled for the changes, and then take appropriate action.
What's so hard about that? Knowing when! The key to knowing is parsing the "nonsense". I'm with ya.
thanks Rocky - I assume your name is based on the song from the Beatles White Album. A timeless classic - I still listen to it almost every week.
Yup. I admit to being a child of the '60's.
And, yes, I know that raccoon has two "c"s.
Did that on purpose.
"...He said Rocky you met your match
And Rocky said, Doc it's only a scratch
And I'll be better, I'll be better doc as soon as I am able."
Maybe I should make my investment strategies based on chubby elf Glenn Beck's recommendations instead?
There's somebody I want to follow... *snicker*
go long, cocaine, and vicodin
+100
I think you are missing the point on this one. The USD is NOT going up because of "how good" the US labor is, but because of the debt that must be paid off in USD by the defaulted countries (god knows how many will default in the coming years).
Ooooh, what a purty chart! Colorful, and in keeping with the holiday season of red and green. Solid lines, dotted lines, and even a sprinkling of text thrown in to balance it all out. That looks a bit lilke a Christmas tree there in the middle. Altogether a nice piece of art work. Not sure what relevance it has to my stash of gold, however. Time will tell -- as it has over the last 10 years.
What good data ? US data are less weak then EU data, that's the only advantage I see. Greece downgraded, other countries face downgrades, Germany will double deficit next year (3% to 6% of GDP), Germany and Austria loose billions on another bank bailout.
still waiting for
the other shoe to drop, the shit to hit the fan.
Is that all there is my friend? If thats all there is , then lets break out the booze and have a ball..la la
Sorry, i thought i was at the circus spinning dollars about me while on the highwire.
Gone nuts waiting for the inevitable Collapse!!
As mentioned previously, Gold had a parabolic leg up and then showed bearish patterns.
No surprise there.
The dollar rally I forecast some time ago - continues to trend up (although overbought now after it's big run.)
The DXY rally may last for years.
Daily charts of key equity indexes are still showing signs of breaking down.
http://www.zerohedge.com/forum/market-outlook-0
Uh-huh. Let's look at the last 3 years of gold/dollar activity:
Compare charts
who cares?
The DXY doesn't measure real value.
Gold's purpose is to have value in multiple forms of paper.
I marvel, seriously, MARVEL at those who are looking for an INCREASE in the true value of the dollar against the astounding and inarguable insolvency of the US.
Like everyone will IGNORE our inability to pay our own debts, while we warmonger all over the freakin globe just because we're *America*.
I mean, bullish on the notes of a bankrupt state...it's astonishing. The deflationists as led by Douchinger who himself spouts the theories of a TF poster named "NoThing" essentially daily call out the corruption of the USG, the runaway spending, yet are placing faith in its paper because of a metric like the DXY and chart reading. Against the backdrop of annual $1.5T deficits no less.
Well, NoThing said that the dollar would go from priceless to worthless in a short span of time; there will be NO GOLD or anything ELSE to buy when this occurs.
The fiat bulls ignored what happened during the deflation in 08, while gold fell to $750 but could not be purchased at the retail level for that, if at all.
So, what are you fiat bulls going to do when the dollar bubble peaks? Do you really think you'll be able to buy anything? You're going to what, buy some COMEX contracts and actually expect delivery?
if every unemployed was hired by your guv & paid w/ extra fiat produce off the printing mill to dig an even deeper cesspit, would gold go up or down?
This all makes an assumption that the dollar strength is based on US strength.
I take it aws end of year closing out postitions and dubai and greece showing that the market is over priced once again.
since dubai was a shoch and US markets wee closd we opened much lower so the big boys had to run up the price and close out positions.
now we are having the drop. The3 world sells off, but us market stays up simply because it is the most manipulatd of all markets.