This page has been archived and commenting is disabled.
John Embry: "Gold, Silver Could Go Ballistic By Year End"
Sprott's John Embry is in fine form today: in a just released oped in the Investor's Digest of Canada, the Chief Investment Strategist of Sprott Asset Management LP, and one of the biggest fans of shiny metals in history, makes the following bold prediction, which also explains how he views the concerted attempts by the LBMA to keep gold below the $1,420 all time high: "I am not in the least bit concerned about these shenanigans because I
believe considerable additional quantitative easing is inevitable,
irrespective of what the Fed says or does in the short term. Goldman
Sachs's chief U.S. economist Jan Hatzius clearly shares my view as he
has suggested that ultimately as much as $4 trillion maybe required
although he anticipates that it will be staged. In my opinion this will
act as catnip for gold and silver prices, which could go ballistic by
year-end." Presumably, he means 2011. So forget all you have heard about interest rate (real or otherwise) correlations: they don't exist. All that does exist is the willingness of the Fed to 'print.' And with China increasingly starting to tighten, the Fed will need to do double duty if it wishes to keep global liquidity well-offered with near-free fiat paper. While we don't quite share Embry's enthusiasm for gold's imminent escape velocity, we are confident that as long as loose monetary policy is the only means to extend and pretend the ponzi, gold will, in turn, be well-bid.
"Gold, Silver Could Go Ballistic By Year End" published in Investor's Digest of Canada
The gold price experienced a virtually uninterrupted rise of more than $200 in a 2 1/2 month period from the end of July through mid-October. This came on the heels of an orchestrated $100 price takedown following an all-time price high in mid-June as the authorities took great pains at that time to ensure that the gold price wasn't flying as the necessity for further quantitative easing (QE) became obvious.
Not surprisingly, we saw a replay of this mindset in late October as the gold price came under renewed attack in the aftermath of a large buildup in Comex open interest during the aforementioned price rise. With the U.S. elections and an important Federal Open Market Committee meeting (where another massive QE operation was expected to be announced) in the offing, the U.S. powers-that-be wanted to make sure that the gold price wasn't surging to new highs.
I am not in the least bit concerned about these shenanigans because I believe considerable additional quantitative easing is inevitable, irrespective of what the Fed says or does in the short term. Goldman Sachs's chief U.S. economist Jan Hatzius clearly shares my view as he has suggested that ultimately as much as $4 trillion maybe required although he anticipates that it will be staged. In my opinion this will act as catnip for gold and silver prices, which could go ballistic by year-end.
What is really at issue here is the fate of the U.S. dollar. Aggressive QE will steadily undermine the relative value of the U.S. dollar, and the rest ofthe world is already unhap¬py, to put it mildly, with the U.S.'s cavalier attitude about the value of the dollar.
However, in an environment where unemployment remains intractable despite massive government deficits and rock bottom interest rates, the U.S. is running out of policy options to revive its flagging economy, and cheapening their currency to enhance ex¬ports is obviously the latest ploy.
In my opinion, quantitative easing is actually a horrible policy, which, pursued aggressively enough, will inevitably lead to a collapsing currency, rapidly mounting inflation and considerable social unrest. There is no ex¬ample in economic history where following this course of action has led to a positive outcome.
Nevertheless, it appears that Fed Chairman Ben Bernanke and his cohorts seem determined to follow this path and I expect that it will have a very salutary effect on the price of all hard assets but, most particularly, the monetary ones, gold and silver.
I find it beyond remarkable that U.S. Treasury Secretary Timothy Geithner can say with a straight face that the U.S. would not devalue the dollar for export advantage. He did exactly that in a speech to Silicon Valley business leaders just before an important meeting of the finance ministers of the G20 countries in Seoul, South Korea, in late October. I would suggest that this represents another classic example of making sure you pay attention to what people do rather than what they say. Geithner's obvious mendacity probably also contributed mightily to the essential failure of the Seoul conclave to arrive at any substantive answers on the subject of the intensifying currency wars.
The incessant top callers in the gold and silver markets have changed their tune somewhat and, instead of hammering away at the ridiculous gold bubble thesis, have focused recently on the technical angle that gold and silver are overbought and therefore subject to a serious correction. My rejoinder to that, irrespective of whether they are overbought or not, is to ask the simple question, "Why should they correct significantly?"
The fundamentals remain impeccable. The U.S. Federal Reserve is going to print staggering quantities of money as a matter of necessity. "Foreclosuregate" is breaking wide open, imperiling hundred of billions of dollars worth of mortgage-backed collateralized obligations, thus putting the originating banks in a particularly precarious position. I don't think it is any accident that bank stocks underperformed noticeably in the recent U.S. stock market rise.
Debt is continuing to proliferate in many parts of the world as an evermore frenetic attempt is made to keep the world economy moving forward. The ultimate outcome is increasingly tilting towards massive competitive currency debasement worldwide and eventual hyperinflation.
In fact,! believe it is becoming more dangerous by the day to trade your gold and silver positions at the present time. If you are a believer and share my view that we are heading for very large trouble in the near future, the worst possible outcome would be to be out of gold and silver in a trade at the very moment the crisis arrives. Repositioning would be psychologically difficult, and in a time of rapidly shrinking stocks of physical gold and silver, could prove challenging.
My formula
My formula for this entire bull market, which has now spanned 10 years, has been to increase exposure on every correction. Investors should not be focused on the dollar value of the gold and silver that they own but rather on the number of ounces that they possess. Gold and silver represent real money, time tested for centuries, while every pure fiat-currency system has ended in ruins.
Thus I find some commentary on this subject from two American investment icons to be very disturbing. Warren Buffett's business partner Charles Munger recently said the following in a speech at the University of Michigan.
"I don't have the slightest interest in gold. I like understanding what works and what doesn't in human systems. To me, that's not optional; that's a moral obligation. If you understand the world, you have a moral obligation to become rational and I don't see how you become rational hoarding gold. Even if it works, you're a jerk." [And this from the hypocrite telling all those hundreds of millions who unlike Berkshire, did not have direct monetary recourse to the Fed's bailouts, and whom Munger advised to "suck it up."]
These certainly don't sound like the words of a rational man. In fact, they more closely resemble those of a petulant child. Mr. Munger may like to understand what works but, in the current instance, he clearly hasn't applied his considerable intellect to the fatal flaws in the existing world monetary system and the need to protect oneself from its inevitable dissolution.
Mr. Buffett, himself, then offered his opinion in an interview with Ben Stein :"You could take all the gold that's ever been mined and it would fill a cube 67 feet in each direction. For what that's worth in current gold prices, you could buy all— not some — all of the farmland in the United States. Plus, you could buy 10 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which is going to produce more value?"
In my opinion, this is sophistry of the worst sort. I have no objection to Mr. Buffett's endorsement of farmland and stocks like Exxon Mobil. They represent ideal investments in the world I see unfolding. Unfortunately, there are tens of trillions worth of paper money out there and more is being created everyday and, unfortunately, there are a very finite number of hard assets of the type cited by Mr. Buffett available for purchase.
Thus, it comes down to where the population as a whole should collectively hold the remainder of its net worth. Is the choice financial assets (bonds, bank deposits, etc.), the purchasing power of which is fated to be destroyed by inflation, or an eternal monetary asset like gold which has retained its purchasing power for centuries. With all due respect to Warren Buffett, I have absolutely no question as to what my choice would be.
Warren's father
Perhaps Mr. Buffett and his partner Munger should have paid more attention to the wisdom of Howard Buffett, a U.S. Congress¬man from Nebraska in the period immediately following the Second World War and a man who just happens to be Warren's father. The senior Buffett stated succinctly in an essay he wrote in that era that "human freedom rests on gold redeemable money" and that "paper money systems generally collapse and result in economic chaos." He was clearly a far-sighted individual. [TD: for our take on Howard Buffett's view on gold, read here].
To conclude, I expect that gold will be comfortably in new high territory by year-end and that silver will be well on its way to eclipsing the 1980 high of more than $50 per ounce, achieved at a time when the Hunt brothers were trying to corner the market. It most certainly won't be a smooth ride because considerable volatility is a given, but in the fullness of time, I suspect it will be very financially rewarding.
»
- 23765 reads
- Printer-friendly version
- Send to friend
- advertisements -
Viral material after the jump:
http://www.boingboing.net/2010/12/25/cambridge-university-1.html
Of course Gold and Silver will go ballistic. Not only is fiat money being devalued, it's also insecure:
http://fedupmontrealer.blogspot.com/2010/12/banks-try-to-cover-up-fraudagain.html
A must read if you have a "chip and pin" type card.
What?!?!?! Banksters commit fraud on clients and try to legalese their way out of it? Never!!!
Bravo for Cambridge!
Apparently not like the corporate cock-suckers that most US universities have become. A bank has just lost a $ 2,000 money wire I initiated and refuse to take responsibility. Any suggestions how to proceed against them would be greatly appreciated.
Thanks.
I've never had any such experience (yet), luckily. But my first instinct would be to threaten them with publicity. What's the name of a prominent reporter at whatever is the biggest newspaper in your area? Better still if the guy's done some investigative work. Use his name whether you actually know him (unlikely) or not. You don't owe them honesty in how you have to negotiate them to behaving reasonably.
"You know, I know David X who writes for the Chronicle. Maybe he's working on a story about how banks are mistreating customers and could use some information. Would you like me to go ahead and call him or would you like to behave honorably here?"
Thanks, I may well do that. I'm very dubious about legal possibilities but I'm going to see a few attorneys who offer free initial consultations. Am leary about throwing good money after bad.
Again, thanks for your response.
.
Using publicity is almost always a great avenue for pressuring self-serving institutions behaving badly towards The People. Even the MSM is still useful in this regard at least.
Another avenue is your local federal/state representative. Once, I was unwilling to have a social security number assigned to my young daughter even though the IRS would not process my tax forms without it. I simply forwarded the communications and forms to my federal congressman and in a couple of weeks my refund was in hand. I like to tell people that my congressman was my tax man.
"just lost a $2,000 money wire..."
Use your head Sir, start by requesting physical copies of records showing the transfer and confirmation of same by receiving bank. Then contact the receiving Bank, do the same.
Once you have these documents, contact the Secret Service, oddly enough Bank issues like this is their second area of responsibility.
Fed's got a lot of dirty little secrets to hide, and banks + Wall Street + corporate America have lots of dirty laundry to wash which ensures we'll have ultra low rates and more QE. This is not the end, this is not beginning of the end, but perhaps the end of the beginning.
+ $1385
Very Churchillian. Guys like you, Caviar, should be running things, not the clowns we have had for years, decades...
End of the beginning indeed. Rest assured, BIG inflation is coming our way and despite Bernanke's "100%" remark, we will not adequately contain it. If you still believe in deflation, I strongly suggest you pick up a copy of "Dying of Money." Its an expensive book, but it is worth it's weight in...well you know. Equilibrium Price=velocity*money supply/supply of real goods. Velocity ALWAYS lags money supply, but it ALWAYS rises to establish a new equilibrium.
get it here for free:
http://rds.yahoo.com/_ylt=A0oG7h91uxhNOB0BNh5XNyoA;_ylu=X3oDMTE1dnJ0cTVr...
The status quo of the USSA will change permanently in 2011, and only those who have PROTECTED THEMSELVES will be ready for the very difficult transition to the next paradigm of America’s existence, which, among other things, will include a new currency (the dollar will be wiped out) that is backed by much, much higher priced gold and silver.
Viva GATA!
Bix Weir suggests $6000 silver - based on it being five times more rare above ground, and an essential industrial metal - if that's the case, I'll be a millionaire several times over!
or in the very least you could open a successful dentistry practice.
Armchair, I've only recently found Bix Weir, but find his concepts/philosophy intriguing. The idea that Greenspan, Bernanke, and a click of others are working to bring down the world-wide banking cabal might not be too far-fetched when one looks at their formative years (Greenspan's devotion to Ayn Rand and John Locke). And Boston Fed's The Ledger publication of "The Road to Roota" has me making correlations to Baum's allegory of the Gold standard in his Oz book and the docu-film "The Secret of Oz". Very interesting stuff indeedy.
I mean, really... Can you imagine being saved from fiat slavery from a few infiltrators in the freakin' Federal Reserve? Too bizarre...
Hadn't heard of Road to Roota, but it looks interesting, I will check it out more.
It seems farfetched though that alot of these hardcore Secret Society guys have developed a conscience.
I was doing some more reading from his site, and he tries to make the case that Bill Gates and Warren Buffet might be two 'good guys'. Anyone who has looked into what the Bill and Milenda Gates foundation is really for would know otherwise.
While he has a good story, it just seems too good to be true, overlooking some key facts. Bill and Warren moving from being NWO depopulation supporters to help out people out of good will, right....
Unless you have your assets outside of the financial system at the very least a haircut is coming your way. Gold and silver will prove to be the best vehicles to maintain that independence from the financial fraudsters.
well.. he's long, and with china tightening he's going to suffer some pain on the open isn't he... better pimp that position.
+1 huggy baby some pain coming but not for long.
Uhhhh...no. China tightened over the weekend and this piece is over a week old. Wouldn't bet against Embry right now given his record and the fundos re: the metals.
This very Embry piece was out a week ago:
http://www.gata.org/taxonomy/term/2?page=2
Yah, I'm not sure how we got it early but I had it last week.
Regardless, very interesting stuff. Especially when you consider John's track record.
Read this, too. I posted it on my site last week as a reminder:
http://www.sprott.com/Docs/InvestorsDigest/2010/06_23_2010%20Gold%27s%20...
Note the date of 7/23/10. When it was released, gold was three days away from its last corrective bottom. Not very many enthusiastic bulls around late last July.
Gold Rates, Gold Ounce Price Today 10/20/10 - October 20 2010........"The current price of an ounce of gold was negative during the day today in the New York market, to suffer the biggest drop since July, the cause, actions taken by the Government of China to raise the basic interest increasing interest in investing in the dollar.".....
Bring it on. The corrupt U.S. administration is wounded by it's continual violation of the U.S. Constitution and the resulant anger of citizens. The banking system is failing....... and eventually to fall. I'll savor the news of the Fed's dollar failure with some fine Canadian whiskey. Burn in hell Bennie boy.
NONE of our financial problems has been solved.
NO ONE (of significance) of the lot that brought us here is in jail.
ANYONE who can afford gold who does not have any has not been thinking, or does not own a functioning brain.
1999 quote from Greenspan: "In extremis fiat money is accepted by nobody and gold is always accepted and is the ultimate means of payment…"
US holds 78% of its capital reserves, not as fiat paper (like yen, euros, sterling etc.), but as gold. Guess Uncle Sam is a silly goldbug.
I'd rather not buy gold, but what choice do the money printers, deficit spenders, and Wall Street crooks leave me with?
http://therookiecynic.wordpress.com/
US holds 78% of its capital reserves, not as fiat paper (like yen, euros, sterling etc.), but as gold.
I really don't believe the above statement for a minute. The US sold all or a large portion of their gold long ago. Sad to say.
By extension those foreigners who hold the dollar actually hold a gold-backed currency. That would mean they aren't any worse off than the US government. Hmmm...
The USA hasn't any capital in reserve. It has $14 Trillion dollars of debt and a further 100 T in liabilities that it must pay. And just where are these audited reserves held, pray tell.
Reserves! Phtttt.
If you'd rather not buy gold (Huunnhhh?), then go get yourself a pair of boxing dloves, lace up and give yourself an uppercut. You never know, it might knock you conscious.
'Ethically challenged' folks running the Untied State of Merka...check
Economy in handbasket on trip to warm place...check
Central bank openly printing money (WTF)...check
I'm all out of hopium...check
Can't think of a more overhyped investment than Gold. Buy Buy Buy Buy...even Cramer says Buy. LMFAO!!!!
The Bearing did not junk you (knowing full well that there ARE junky bearings out there), but does have a suggestion:
Buy umop's above mentioned Hopium, you will probably need it.
Gold (and silver) is not an investment, it's a hedge. A hedge against incompetence and stupidity.
This Christmas I gave all the adults 100 Trillion Dollars. Yes, you read that correctly, 100 TRILLION Dollars. Zimbabwe dollars that is. Issued by the Reserve Bank of Zimbabwe no less.
The children I gave silver coins. The 100 Trillion Dollar note may become a collector's item (or not), and the market price for silver may go down (or probably not).
The 100 Trillion Dollar notes represent incompetence and stupidity, and the silver coins a hedge against same. Which side of the hedge do you want to be on?
Personally I never bet against stupidity, as it is almost always a certain bet.
Yewre fuhney.
OK, Jimgcpa is not one of my screen names, it's remotely possible that he's legitimate.
I mean I welcome his anti gold post but it seems very weak though. not much help to me, am afraid
JonNadler, things are moving so fast that I have not been able to find out who you are still with! Did Jamie keep you on, or did you have to move back to kitco?
If you are still w/ JPM, are you still stuck w/ Blythe...? Ugh!
Hmm. Might have a hard time having a Happy New Year!
Hey DoChen
Am everywhere I can shamelessly tell half truths with disengenious logic to scare sheeple away from gold.
Situation bad at JP M, a feeling of doom is in tha air, it's like the bunker in April 1945, with Jamie fantazising about dealing a great blow to the gold bugs, but everyone knowing his losing it, and Blythe is acting like Mrs. Goebbles...if you remember that scene from Downfall...sad...very sad
You the man, Happy New Year!
Explain to me why I keep seeing "WE BUY GOLD" shops opening EVERYWHERE.
When I see those places closing down. Then I'll know that the peak approaches.
Fuckin' A, man!
He. means. 2010.
(I think) ;)
Buy the dip works in all assets. Except .... When it doesn't.
Gold waterfalling down
Yes!
oh shit yeah,its getting pounded down nearly 2 bucks.
Golden shower, so to speak...
I read somewhere, long ago, that Adolf Hitler liked his golden showers from Eva...
Wonder if they are shorting the shit out of pms offshore, or if the China rate hikes matter.
Au and Ag have traded weakly this last week; more to come. No worries for the long-term holder. You just can't screw your pince-nez too close to the charts - need to step back, take a breath and see the larger scope - namely that nothing is cured and the powers that be either continue to kick the can down the road (inflate) or the ediface will collapse with breathtaking speed and they will be hanging from lamp posts.
I hold physical so I am good, know the deal. Still, it is quite a spill, still going on. Is there a lock limit down on PMs? Quite dramatic.
yeah pretty abrupt move down right out of the gate
9:05 pm........shooting back to the surface for another breath.
"You just can't screw your pince-nez too close to the charts - need to step back, take a breath and see the larger scope"
I like the pince-nez reference especially! Monocle would have worked too. :-)
Very well written Saxxon.
This really is time for big picture thinking/seeing.
Short term, especially what the signs and tea leaves are saying, is going to be one heck of a ride.
It has always been this way, but it's going to take steely nerves to ride without regurgitating.
I still feel that gold will suffer more manipulation in the short term, things just seem to point to "tricks-up-the-sleeve", kind of like JPM and their sudden, elevated interest in Copper 9even at the be-hest of the chinese).
Also see many uni-polar views on China's dumbness etc., not healthy to underestimate one of the oldest contiguous cultures in the world.
Also good to remember that eastern methods of war are subtle and have extremely long range time-lines.
We have not seen anywhere near the end of the twists and turns in this movie.
And like any good piece of cinema, once you think you have a handle on the characters....
Wham! out of left field....
And the action gets faster and faster....
ORI
http://aadivaahan.wordpress.com
its Au and Ag that matter, not SLV and GLD.
http://www.goldprice.org/ebay-gold-prices/
China rate hike = gold down = more rate hikes coming at a faster pace in 2011.
They will also de-peg in the future Jim Rogers says 2-3 years. With the economy getting better next year in the USA, this will get priced in.
This old trader and me, were at the bar and we
Were having us some beers and swappin' I dont cares
Talking gold, silver and leveraged short etf's
Old calls and new shorts, and gold miners we just sold ....
We talked about Ben's pomo, and all the zombies it raised
Then I heard the ol' man say
Ben is great, the dollar is strong, and doomers are crazy
He said I fought bull markets, had shorts blown out.... and gold miners blowtorched
What brings you to BankofAmerica, he said chasing profits ...ya' know
We talked an hour or two, bout every financial & industrial we knew
What all we leveraged up, like two old traders will do
We pondered gold and silver, he lit a cigarette with an old gold miner derivative I.O.U'
Said these damn things will kill me yet
But Ben is great, the dollar is strong, and doomers are crazy
Last call is $1,430.00, I said goodbye to that
I never seen that price again
Then one sunny day, I saw the old mans face
Front page IBD, he was a millionaree
He made his fortune on shorting gold
Mr.T was mad as hell, but me, Im doing well
And I dropped another $100,000 on US Steel today, to make my year
Ben is great, dollar is strong, and the doomers are crazy
> China rate hike = gold down = more rate hikes coming at a faster pace in 2011.
Economy up = commodities up = gold up
Economy down = stimulus up = gold up
Pure fantasy. What a kook.
Balding_Snails, I am happy and proud to junk you --- once again.
This weekend the MSM had it front page that China raising their interest rate ahead of the Fed for the second time recently will affect commodity prices. Since precious metals are not only industrial, but function perfectly as the definition of monie, they should be affected not significantly the less.
Ben Bernanke is making the gold in Fort Knox migrate to Washington DC. He's buying debt, equities, why not precious metals?
1 thing I can safely predict: John Embry will never recommend to sell gold under any circumstances no matter how high the price gets. LOL!!! Broken record.
Yes it truly sucks being right all the time.
Of course, if the USSA is forced to return to a gold standard... why would anyone "sell" their gold or silver? They'd just spend it, just like the real money it is.
Jimgcpa:
very weak posts my man, you're making anti-gold propaganda look ridiculuous here.
Of course he will never say to sell, but that's like me never telling people to buy, no sir you will never here the Nadler saying BUY GOLD NOW
Gold drop, I am looking for support at $1372, if it breaks that, it could drop another twenty. That was quite the drop! What is going on? Interest rate hike? Naw. If that is all then gold will bounce. If China can raise rates ahead of the Fed then it will be hard on the dollar. Maybe Bernanke gets his weak currencie after all.
.
I suppose the question is: are you a trader or a holder of Au/Ag?
Holders of Au (like me at least) have seen it from $500-$1420 and don't particularly care if it retreats - even back to say, $900-$1000.
Holders of Ag - like me - have seen it from $4.xx - $30.xx. I don't mind if it retreats to $12-$18 again.
Of course I like to see them go up ( and my instinct says they will continue - but perhaps not directly) like anyone investing/trading/hedging would, but I recognize that in the end, they are for wealth protection as opposed to becoming wealthy.
But becoming wealthy along the way would sure be a kick!
Today will be a good day to buy on the dip. Thank you China!
well, they are buying for CHINA first....dont kid yourself...
really, it makes me wonder about our leadership...blythe is going to bomb it, but thats exactly what CHINA wants....
i'm yawning some more....
Liquidations for margin calls? Or manipulation on light trading? EOY profit taking?
While I don't support this 100%, its good for you to cherry pick info.
Renaissance 2.0
http://www.csper.org/renaissance-20.html
Bill Still - Swarm/Oz
http://www.swarmusa.com/vb4/list.php/category/45-Economics?s=0707a35d99d1b9c112c535b5f283e1b3&
In my vision, we can cut the throat of the Federal Reserve middleman and re coin a US backed currency under the Constitution. Venus Project types will not survive the transition. Make a mental note to yourself.
1913 Federal Reserve Charter
http://www.llsdc.org/attachments/files/105/FRA-LH-PL63-43.pdf
In case you missed it, Detailing the FY2011 Budget.
http://www.youtube.com/watch?v=U56JJMuCK4w
Put your thinking caps on and resort to the founding fathers vision.
The FED is flexing.. They will fail
down 10 out of the gate in Asia, pretty big move for the overnight action...
Now down over 11...probably will be a big day ahead for Robo's charts and the Johnny Bravos
China raised rates for the 2nd time in 2 months. The first time was Oct 19th. Gold fell pretty hard then too. The effects lasted a couple of weeks and the low in gold was a buying opportunity.
No...When the Chinese market opens, it will open lower but close in green. If you look the history, that's the case every time since 2006.
Uh huh....
I hope you didn't trade on your prediction.
Woohoo Pull back in PM's today, Was going to buy more silver, those 100 ounce Johnson Matthey bars look oh so nice, Whats even better is I'll be making the purchase with my Citibank Credit Card!, 0% APR until 01/01/2012 Woohoo, I'll pick up a 100 oz bar at say 2.9k, a year later if silver goes to 50$ sell my 100 oz bar for 5k, pay of the credit card before the interest charge kicks in, and make a 2k profit, is it really this simple?
"South Florida," he said, "is working off of a totally new economic model than any of us have ever experienced in the past" according to a realtor who predicted that a land shortage will support higher prices indefinitely."
-"Trading Places: Real Estate Instead of Dot-Coms", in the NYT.
Mozilo reached out to borrowers as part of a "little experiment" to understand the reasoning behind making only minimum payments on so-called pay-option loans, a practice that boosts the total amount due, the 67-year-old CEO told investors Wednesday in New York.
"What we're finding out is that they're pretty smart," Mozilo said. "It's like voters: Individually they're sort of idiots, but collectively they seem to make the right decisions."
-"CEO Makes Call on Pay-Option Loans: It's Risky", from Bloomberg News.
Perth couple Brian and Eileen Bowden are among thousands reaping the benefits of the state's robust economy as they prepare to extract a $100,000 profit on their home in just six weeks. "The people who we bought this house from made $100,000 off us, so it's a non-stop cycle," Mr Bowden said.
-"West shows way but east trembles" by Anthony Klan and Alana Buckley-Carr, The Australian.
"What we're finding out is that they're pretty smart," Mozilo said. "It's like voters: Individually they're sort of idiots, but collectively they seem to make the right decisions."
good one....yeah masses...sheeps suprise you...they are really smart - you underestimate them at your own risk...Mozilo that crook
speaking of herd, 60 minutes had a piece of Cornell University having a team studying elephants sounds...why stop there, study zebras, lions and the whole of Africa...you wish they would ask students if they would like to make a donation to fund this group of researchers out of their loans...its just a corrupt system coming down
Just putting the finishing touches on a 5 year (2005 - 2010) research project in West Africa, funded by the NSF. Of course, multiple and repeated trips to West Africa on extended field surveys was necessary.
Research Focus; Insect Biodiversity of the Upper Guinean Rain Forest.
Good times.
It's really simple IF silver moves up to $50 as you anticipate.
OTOH, if PMs crash (I know, I know...not a popular perspective here), then you are FUCKED.
Before everyone junks me, I'm not saying here PM's will crash, only that every trader needs a contingency plan to handle the unexpected.
What's your plan should silver take a serious nose dive after you've leveraged it on your credit cards?
Plan? Who has a plan these days? Sometimes one needs to be daring, wouldn’t you agree Captain_courageous?
Surely you jest...but feel free to be "daring" if need be. To each his own. Every time I've bought or sold on margin with the "certainty" of the outcome, it has amazed me how many new ways there are to be fucked out of my money.
My silver trade was half in @ $11.75...so far I'm making out very well, but my back up "plan" is to put in the other half should prices tank and another opportunity present itself. Not saying it will...and the truth be told...probability is it WONT, but either way, I WIN in the long run.
I'm a trader not a gambler...a distinction I constantly remind myself of daily. I'll save "daring" for the Vegas tables.
I'd rather be RICH than daring...
But by all means, do what you enjoy...
just my 2 cents worth...
.
"I'm a trader not a gambler...a distinction I constantly remind myself of daily. I'll save "daring" for the Vegas tables."
So trading is not gambling?
Huh.
well he's always got Plan D, which is D-fault
I buy at kitco. could you tell me where you are able to actually purchase PM with a credit card? have a quite a large limit I would like to max out.
vbce
Try these:
http://www.providentmetals.com/
http://www.silverstampede.com/index.php
http://bullion.nwtmint.com/index.php
http://www.apmex.com/
http://www.philscoins.com/
straightsilver.com they don't charge premiums for using a credit card or handling fees. lately their prices over spot have gone up because they ran out of all their silver, since resupplied but sometimes you find deals when buying in bulk.
Bullion Direct has good a price and are pretty fast
Gainesville coins pretty good too.
ullala... silver is dropping sharply... COMEX option expiry time:):)
I posted up a boatload of boatloads.
One of the charts is a custom little ditty i came up with called the Precious Metals Exuberance Index.
And now short the Cable (British Pound), as it is taking a swat from the PRS 177, but has Person Pivot support. Ping pong match perhaps.
http://oahutrading.blogspot.com/2010/12/eemspy-and-pmei.html
http://oahutrading.blogspot.com/2010/12/bullish.html
http://oahutrading.blogspot.com/2010/12/boatload-o-charts.html
Gold started to trade sideways on Oct. 20th this was the day of China's 1st rate hike.
Gold getting sold in Asia. They are buying Fiatsco Dollars instead.
Looks like a "Risk Off" day tomorrow. But the dippers are valiantly trying to stick save it.
Of course, gold will probably sell off 3x faster than the S & P 500, that's just the way it seems to work these days.
When gold hits $1,350 its game over.
"The incessant top callers in the gold and silver markets have changed their tune somewhat and, instead of hammering away at the ridiculous gold bubble thesis, have focused recently on the technical angle that gold and silver are overbought and therefore subject to a serious correction."
Now you mention it Mr Embry I *have* noticed exactly this...
Macro stuff -
EU will have issues all year in bond market.Dollar bullish.
USA will have 3.5-4.0 GDP 2011.Dollar bullish.
China will hike rate until the bubble pops.Dollar bullish.
Got AIG ?
Not good for gold. Fear trade is over ... this will be priced in soon.
" this will be priced in soon."
You had to add this last bit because gold is now $0.90 below where it opened, a nearly full recovery from the earlier drop you celebrated.
See you next time...
Gold has traded sideways since October 20th because of China's rate hike that day(#1) just wait until the 4th or 5th hike by July ... Lol'.
Dollar is going up. Book it.
It is immaterial if the dollar rises against other fiat currencies or if AIG rises in dollars. As long as the FED debases the currency through bond purchases- gold, silver, palladium, platinum, cotton, wheat, corn and oil will all over perform.
The dollar priced in commodities will continue to fall. GDP is a measure that includes government spending- which is consumption and a drain on productive economic activity. If you are going to talk that trash- have the decency to be intelligent.
The irony is that a significant stock market correction could lead to the gold selloff he predicts (in the very short term) as could stiff Chinese rate hikes knocking down the commodity markets generally. Both would lead to magin calls and weakness in gold as people sell the only thing still having a bid.
But the gold haters don't seem very interested in this. I'm not sure why. They could gloat just the same couldn't they?
You can't have a significant market correction as long as the FED is flooding money through POMO. The Chinese cannot raise rates very high because of the potential for unrest from unemployment.
Margins will be raised to discourage investment in commodities, because leverage is so high and the bankers are becoming exposed. This will affect paper more than actual holders of supply. The market will see greater and greater premiums for physical and this will only drive the price higher.
As you create greater amounts of inflation, the sellers of real assets disappear. Meaning there will be no trade in those products. Currency with lesser value will flood whatever markets are left (equities and bonds) and eventually distort their values. At this point in time, currencies are usually replaced.
hey BirdBrain...the only thing trading sideways is the stockmarket...up ..nothing since 2000...and gold...up over 380%...I laugh at imbeciles like you...QE1 How was that for the dollar..and QE2 ??? AND 3 ..4 ...5...MAN IMBECILES LIKE YOU ARE ADOZEN A DIME..and not a silver dime either.....
Are you the gold douche from Mish's board?
No, that would be me
LOL
no meat head...i am the one who will survive..and you will be the one in the breadline....lets chat in a few months..and you can tell the rest of us how many different varieties of stale bread they are offering you..!!!!!!!!!!!!!!!!
to generate a genuine rally we need a good fierce correction...which will shake off most investors and turn them into bears...this correction is starting to run..we could see $850 as a low...but if i were holding physical i would not sell it and then have to buy it again...
"to generate a genuine rally we need a good fierce correction"
NOT!
To generate a genuine rally we need only for the Fed/treasury to continue to do what they have done since the dot.com collapse; ie, PRINT FIAT.
Gold is consolidating around $1380, not trading 'sideways'. When POMO operations to hold down commodities/PMs cease gold will continue to rise vs fiat currencies.
Every trading day sees an attempt by the West to beat down PMs followed by the Asians/ME restoring it to the current floor. Who will blink first? I say the Fed will because of increasing pressure from every soverign and our own congress.
Buy popcorn, watch show.
no; to sustain the rally all we need is a failure to make a new production high. 2009 was a heroic year in terms of production, with record high prices and a VERY gold-favorable oil/gold ratio.
It remains to be seen whether 2010 was as good as 2009 for the #s of ozs produced. If we continue to see a decline in production, price will continue to rise as it has.
If you want to bet on a production peak's effect on price, go long platinum or silver. When silver peaks, the price spike will be epic.
It's hard to see 2nd-tier producers like Ghana or Mali making up for the continuing declines in the former major gold producers. As of now, there are very few nations whose gold production has not yet peaked; I can really only find Ghana and China. At the same time, USA, Australia, RSA, Peru, Russia are all seeing continued declines. China's production increases have been nothing short of spectacular; its 09 production bests Russia's peak and rivals the US's.
Dollar down a cent. Booked it. Dill.
And I'm sure you gave great advice on gold/silver the last ten years right?
Congrats you have earned a junk from me, clear troll.
"Flash Crash", and this kind of movement is common in the precious metals market. It has become even more volatile lately because with more monie moving in, the liquidity is better and monie that affords to move out does so without causing a price suppression. Keep posting the PM charts, but don't be so quick to judge, there is the MSM for that.
$1400 tomorrow?
gold gettin bought now, better retract that chart lol
According to this new chart (updated from the selloff "crash" at the opening), the stick save seems to be going well. $1373.50ish up to $1390ish in after hours and Asia makes your call a loser, again.
OMG, silver is not down by one dollar! Is Blythe Masters on holiday?
Only 14 more trading days left until January 14.
General Jim needs gold to rise by $14.21 a day, every trading day, to reach $1,650.
Otherwise, General Jim will be history.
Maybe if the Dow rockets over 12,000 by January 14, gold will have a chance.
only a few more trading months before you go the way of the DODO BIRD...it will be bittersweet when you and the likes of you are shown to the dustbin..where all rubbish belongs. bitter..because it didnt happen sooner...sweet becuase...well it did.....MOVE OVER JOHHNY BRAVO...here comes your bookend comrade....
I will cheer the day when this RobotTraitor joins the likes of JohnnyBravo, JayBayBaker, and several other ridiculous and annoying perma-pro-establishment trolls in ZeroHedge Limbo/Purgatory. But PLEASE let that vile, venal, cowardly Leo Kolivakis join them in their exile!
(Actually, though, Leo belongs in ZeroHedge Hell, not just Limbo).
Naah!
akak and ZEIT, look at his name: RobotTrader. He trades!
Maybe he's good, maybe not. He is different than the pests we had before like Bravo and GayBay.
ZH is a big place there's room for all of us.
...
[Had to get the calculator out for the CAPTCHA]
> [Had to get the calculator out for the CAPTCHA] Been drinking? -:) On a serious note, on several occasions I wondered what is the point of using numbers higher than say 12 - to a bot it doesn't matter and to a human can be annoying and/or difficult.
Akak:
Don't worry baby when gold hits 1650 soon, I'll take Robo out of circulation and I'll bring someone else in. You think am going to give up? No way! my whole life is tied up to the price of gold and have to shamelessly do anything possible to at least keep a few sheeple away from it
Any suggestions for a new troll name, post Robo?
Actually, I think the name "Jon Nadler" is by now so firmly and inextricably linked to anti-gold douchbaggery and kneejerk pro-bankster propaganda of all kinds, that you will never be able to find another name more appropriate to your rabid gold-hatred than the one you already posess.
When it comes to your disingenuous, dissembling anti-gold crusade, Jonny, you are like Will Smith in the movie of the same name: "I Am Legend".
Two years ago, when Jon was trumpeting the demise of and rationale for avoiding gold and silver, with the price having rocketed against his call, I gave him the name Jon Nadless for not standing up and admitting that he was wrong.
His calls to date make him the standard bearer (do they have standards?) for the loopies on the payroll of the paper bugs.
Of course it will. So will oil. What's left to invest in? That's all we have.
Well, actually things you can live on too, meaning things you can eat.
Though people who have a clue, should also start taking Nicole Foss to heart.
2011 is a transition year, 2012 a tipping point year, after that it's all down the drain.
Nicole Foss on The Keiser Report Dec. 21, 2010
http://www.youtube.com/watch?v=sevM5IstFFY
90% drop...................holy shit
Well gold has almost recovered most of the losses,silver is above 29$ now So I think it will end positive,maybe some short covering.
Asians love to beat up on the shorts. They buy every dip and laugh.
A $10 dip does not seem like a big deal.
Could this be a buying opportunity?
A $ 10 dip in gold seems to yield a 10 point dip in intellectual functioning of many.
Tomorrow, if silver is lower, Ill take advantage of my unfortunate local PM dealers who sell based upon spot.
Accumulate some every week???
Actually, I buy as much as I can when I can... timing purchases in this environment is, I think, impossible. As Emery opines, forget price, only ounces count.
Agreed buy a little instead of a lot in bulk if you are price sensitive but if you are value sensitive buy as much as you can as soon as you can.
Double agreed. I buy as incoming money permits. Sure I check the price, but in the end it does not matter. It's all about the ounces.
Check!
I buy when opportunity presents itself. Recently found two rolls of 1961 - 62 quarters, uncirc, that someone had just sold to the dealer. I took both rolls at melt price + 5%.
Often dealers cut deals to gain operating capital.
Watch your local flea mkts for locals selling their hoards of gold silver. Sometimes these can be had below spot.
Definitely a buying opportunity,if I could trade Asian market I would
Bought.I am sure by the time Europe opens price will be higher.
Asians most be loving this.
Asians seem to be enjoying themselves in many different
ways.
Last post for this night. If you don't follow politics, you don't make any money in the world. I don't care if someone posts a graph on this site. That information is old.
Welcome to your new world, the public breakdown is in progress. I myself have tried to warn you. In the near future, you will get what you wanted or thought to receive.
United Nations General Assembly Adopts Global Counter-Terrorism StrategyThe United Nations Global Counter-Terrorism Strategy was adopted by Member States on 8 September 2006. The strategy, in the form of a resolution and an annexed Plan of Action (A/RES/60/288), is a unique global instrument that will enhance national, regional and international efforts to counter terrorism. This is the first time that all Member States have agreed to a common strategic approach to fight terrorism, not only sending a clear message that terrorism is unacceptable in all its forms and manifestation but also resolving to take practical steps individually and collectively to prevent and combat it. Those practical steps include a wide array of measures ranging from strengthening state capacity to counter terrorist threats to better coordinating United Nations system’s counter-terrorism activities. The adoption of the strategy fulfils the commitment made by world leaders at the 2005 September Summit and builds on many of the elements proposed by the Secretary-General in his 2 May 2006 report, entitled Uniting against Terrorism: Recommendations for a Global Counter-Terrorism Strategy.
http://www.un.org/terrorism/strategy-counter-terrorism.shtml
On your browser, click edit, find on this page. Type religion into field. Read, press next, read, press next. You'll get the picture.
Good luck!
Followed your advice, but don't understand the plan. All the talk had to do with freedom of religion. What am I missing?
When gold and silver make their next moves, everybody is going to be surprised as how powerful they are. I believe they will be explosive to the upside and really don't have any compelling argument for declining value except for overt price manipulation, which is the prevailing trade at the moment.
Any tips in the balance will predicate a large move, IMO. I see retail (stocks, companies, prices) suffering near-complete collapse about mid-January, after the holiday emotions have worn bare. Watch stocks post solid 4Q numbers in late January and be sold off without a thought.
Lets see what the Hang Seng says
http://www.sgxniftydowfutureslive.com/index_files/DOWFUTURES.htm
interesting week ahead !
'ahem'.
Since the open the price of platinum has been traded throughout its entire range. Simply awesome. Asia loves trading precious metals.
Historically, a days wage was somewhere around an ounce of silver. This, until recently, was enough for someone to live comfortably and raise a family. Therefore, when the financial system fails you will need about 300 ounces for every year remaining in your life. How are you doing?