Morning Gold Fixing: Geopolitical Instability In Middle East - Gold Today Like Gold In The 1970s?

Tyler Durden's picture

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gold mining ceos are idiots's picture

Somebody tell the gold mining stocks that gold is 1300. Newmont is trading just above its 2003 high. 

You bet there is a deliberate attempt to kill these stocks.

Hephasteus's picture

Well seriously. Gold and silver is nanoseconds in geographic time from standing up and kicking the banks right smack in the nuts. Of course they are trying to beat it down with everything they have.

 

 

unwashedmass's picture

 

i wouldn't get all excited about this. Jamie has complete air cover and taxpayer cash to make sure that gold goes nowhere.

the hysterical part of this is the ONLY sector in the market place trading with a faint hint of normalcy is the gold/silver sector.

Hephasteus's picture

Ya. I mean if i were the gold and silver market right now. I'd be really really trying to act like normal, like i'm all cool and shit. You know what I mean.

Adj. 1. hysterical - characterized by or arising from psychoneurotic hysteria; "during hysterical conditions various functions of the human body are disordered"- Morris Fishbein; "hysterical amnesia"
DosZap's picture

unwashed,

The hysterical part, is that Jamie does not have the cover of the taxpayer.

We will get screwed in the end, middle, now, previously.

But the shit their calling money is not money, and the taxpayers will never pay one more cent toward their insanity.

Game Over..................we have a copy of the test.

Math Man's picture

Would you invest in an industry where companies are removing their hedges *after* a 400% increase in price?

There is good reason for metals and mining stocks to underperform.

bullionbaron's picture

Gold and Silver are still buys at these levels, but will likely head into a bubble much like they did in the 80s. In my opinion we are entering the 3rd phase of the bull market: http://www.bullionbaron.com/2011/01/goldsilver-entering-3rd-phase-of.html

Will instability in the middle east add to the price of the metals? It seems likely.

ColonelCooper's picture

PLausible scenario??  - Gold will head into a bubble, then correct.  Prices will enter the stratosphere, blow up and land somewhere around.... lets say $3000 just for fun. 

Meanwhile all the longs who were in at the 7-1200 range will be ridiculed by trolls for having bought into a bubble............... 

JW n FL's picture

Got Guns? Check.

Got Ammo? Check, Check and Check.

Got Food? Check.

Got Medicine? Check.

Got a Water Source? Check.

Got a Power Source? Check...

 

Well then spend that paper on whatever you want other than leaving it in Paper Form to be printed away by the Ben.

 

Just buying something is better than it sitting in the Bank while Ben adds 30% more money to the supply (thru printing) thusly de-valuing the monies in your Bank account by however much he Prints, 30%? YTD?

ColonelCooper's picture

+7.62x51

My point was that in the comparison to the 1970's the trolls only seem to ever be able to point to the people who bought at the top, right before the blowoff.  Those who bought at 200, and were sitting on a nice stack at 600 when the dust settled were spittin' feathers IMO.

ColonelCooper's picture

Good list, BTW.   I'm checked off to redundancy.  Weren't you figuring on riding this shit out in a boat, or on an island or something?   Still working on it?

JonNadler's picture

but JW, you can't eat food!!.....oh sorry, it's just the force of habit

DosZap's picture

No, we are not entering Phase 3.We are in Phase 2.

95% of Americans never have given ONE seconds thought to Gold or Silver.

When everywhere you go, people are talking it up, then we will be in 3.

All the dudes in ETF's are traders, and not investors.

Math Man's picture

Stages, shmages. 

Those hot money hedge funds and traders in the ETFs could crush gold at any minute.

They've bought some much damn gold it's not even funny.

ETF holdings are almost as large as annual mine production.

If they puke, so will the Gold price.

Math Man's picture

ETFs already showing signs of indigestion.

http://www.kitco.com/ind/nadler/feb012011.html

Puking could start sooner than we think.

bullionbaron's picture

Hey DosZap, in my opinion we are in the transition now. I am not suggesting we are right at the peak, I'm saying we're sitting at the start of 1978 and about to head parabolic...

Chances are even at the peak of the bubble only a small percentage of the entire population will be involved. Did you read the link I posted? I discussed the possibility that the actual rush to Gold may occur elsewhere due to the poor savings rate that western societies have now compared to the last bull market.

 

Quintus's picture

Oil shock?  The only thing that shocking about Oil is that despite all the geopolitical uncertainty and the rapidly falling dollar, the price of WTI is going down today.

It's almost as if (perish the thought!) somebody was intervening to keep the price far lower than, say, Brent Crude, and continuing to fall despite all the drivers for higher prices being in place.  Is that the heavy hand of The Bernanke I sense?  

michigan independant's picture

Black Gold http://www.justice.gov/opa/pr/2011/January/11-enrd-110.html

 one of the 10 largest refineries in the world and has the capacity to refine more than 525,000 barrels of crude oil per day.

Meanwhile, The raw materials price index jumped from 43 to 62, reaching its highest level since mid-2008. The share of manufacturers who saw an increase in input costs surged to 64 percent, compared with only 2 percent who saw a decrease. Finished goods prices rose for the third month in a row, although the great majority of respondents continued to note no change. Sixty percent of respondents anticipate further increases in raw materials prices over the next six months, while 40 percent expect higher finished goods prices."

Egypt must listen to the future since Uncle Hugo cannot compete anyway. I like gold but in the long run one ounce is a very good suit...

Temporalist's picture

So when a suit costs $3000 because of the rising price of materials, wages, transportation you will be okay with that.  I guess $5000 suits will be okay too.

RafterManFMJ's picture

Who wear suits in a FEMA camp?

Hugh_Jorgan's picture

In the long run maybe, but who cares. In the really long run we could be back on a gold standard and the price of your gold will not be inflated anymore. Between now and then, a few ounces could pay off your mortgage.

DosZap's picture

I like gold but in the long run one ounce is a very good suit...

Yep, but you cant eat suits, and no jobs, no suits.

One ounce of Gold may be enough to feed your family for 6 mos.

 

DosZap's picture

Quintus,

Wait till the ENTIRE ME gets tunrned into radical Islamic states.

The ones protesting now have a right, and reason.

But they haven't seen shit till they get rulers like Iran.

They will be WISHING for Mubarack.

PS: SO will we, because the price of crude, will go so high, we will be forced to go to a global war.

China once again has shown its longrange thinking and planning has trumped the entire world.By Stockpiling billions of barrels, at cheap prices, and every other comodity needed to sustain their peoples livlihoods(i.e.) not starving.

luk427's picture

They just gave us a buying oppurtunity.

lunaticfringe's picture

Dude, I'm buying anything ur selling.

ageofreason's picture

A fool and his gold has just parted.....

topcallingtroll's picture

Afraid the intermediate top is in for now. Record outflows in january from the gld etf. I love gold by the way, but I'm calling a top here. Nothing looks good right now. Maybe the stock market has further to run. I cant find much of anything to get enthusiastic about. I am still long and lonely cuz I am not enthusiastic about cash, maybe POT? Fertilizers? Farm equipment makers? BIDU? Just kidding on that last one.

Quintus's picture

Ah yes.  The old 'Record outflows from GLD' misunderstanding.  Have a read of FOFOA for a detailed explanation of how GLD actually works, and what these outflows mean.

 

http://fofoa.blogspot.com/ 

VFR's picture

was about to say the same. Very interesting

william the bastard's picture

"Page not found".

Even if GLD were a scam (which it is not), investors selling GLD are also selling gold.

EscapeKey's picture

Shouldn't you be doing something more enlightened, like posting copypasta telling us PMs are poor investments?

Quintus's picture

Must be some hidden characters in the address I pasted in.

Try:

http://fofoa.blogspot.com/

Temporalist's picture

There was a space at the end...

ColonelCooper's picture

You really need to do some homework.  The good trolls at least understand the paper/physical relationship and make the argument that it is irrelevant as "price is price", the paper will drag down the physical, etc...

Your last comment was almost as ignorant as claiming gold was a bad investment because it has outpaced inflation 9 to 1.

Maybe you should stick to pasting Birther comments. 

h3m1ngw4y's picture

investors redeeming GLD is different to investors selling GLD. The first drains gold liquidity from the market

Silversinner's picture

one men sale is an other men buy.

only important thing is gold is moving

from the weak hands to the strong hands.

Chinese and Russian CB I consider strong

hands.They just want the physical stuff,

Chinese like to play the paper hedging

game,but make no mistake;they just

use this game to aquire as mutch gold

as they can,before the shithouse burns down.

 

VFR's picture

the point is they are not selling they are taking delivery. And even if they were selling who are they sellig to as gold is gold. It doesn't go away therefore bizarrely investors can't be selling gold as in reducing interest as there is a buyer. The selling corrosponds with net outflows of gold bullion. The papermarket is kaput. 

A better link. At present rate in 18 months GLD will have no phyisical gold.

http://fofoa.blogspot.com/2011/01/who-is-draining-gld.html

topcallingtroll's picture

Holy shit bidu is up 8 percent. Maybe that is the place to be.

luk427's picture

There is a record outflow because people are learning etf's are a scam. If SHTF you will be standing in line with your peice of paper like a fool.Why do you think the director does not own a single share.

Temporalist's picture

That "story" has been debunked.  The director and management do own the ETF.

Henry Chinaski's picture

Topcalling troll:  Good point.  Having trouble deciding on what to do with some extra cash.  Already diversified in stocks, PMs, RE, and are prepped, locked and loaded etc...  Nothing looks so great right now as an investment and cash seems like a liability.  Finally I concluded on a good used roller-skate (economy car) in case gas prices take off. 

eddiebe's picture

Troll, surely you have considered the fact that by holding dollars you are betting on that lame horse? Maybe top calling isnt such a great strategy.

jus_lite_reading's picture

Middle East tensions are bullish for the global economy. The Bernank said we will see more revolutions, riots, and chaos around the world because this is the result of strong economic recoveries.

Every recovery from a recession has seen 9% real inflation in the US, 20% real unemployment coupled with record PM prices. The Bernank knew this. He is god. A Jewish god. A god for the Jews. The Bernank is the messiah the Jews have been waitin for for the past 2000 years. He has arrived.

Oh regional Indian's picture

Gold is definitely the one to watch.

Because Silver will be doing crazy things on the side. Still see Gold Vs. Silver commentary art a 10:1 ratio, even here on the hedge.

This tells me that Silver is a far better buying opportunity than gold, though for the near-mid term, both will gain, appreciably.

Still, not the response one would expect to so much crisis.

The beach ball is swelling and being held down harder.

And meanwhile, foodstocks are shrinking and grainbaskets are flooded or frozen.

Hard asset investing is the easy choice.

Buy Silver. Even at the expense of gold.

ORI

http://aadivaahan.wordpress.com/2011/01/31/then-again-people-choose-yoga-over-gurdjieff/