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Suddenly, Gold Becomes a Pariah
There they go again! No sooner had we finished praising the Wall Street Journal for their blunt assessment of the coming train wreck in municipal bonds than they do a hit-job on gold. The article, which appeared in Thursday’s editions, would seem to have exhausted the inventory of clichés employed by establishmentarians these days to put the knock on the yellow stuff. Here’s their short list:
- Worries that China will “slam the brakes on its economy”
- Improving U.S. stats that diminish gold’s safe-haven status
- A too-strong rally in 2010 that has made “some” fund managers skeptical
- Stepped-up redemptions in SPDR Gold Shares
- A hike in margin requirements by the CME
- Markets that are “increasingly betting” against new Fed stimulus
And if all that weren’t enough, the authors of this piece, Carolyn Cui and Liam Poleven, trotted out Dennis Gartman, the Darth Vader of the precious-metals world, to spout the kind of vague hyperbole that could sound even dumber a few months down the road, as so many of Gartman’s bearish pronouncements on bullion have over the years. “Everywhere you went,” said Gartman, “everyone you knew was aggressive long [sic]. That’s a bad sign because it means everybody has already bought.”
We might ask, have you bought gold yet? How about your relatives? Friends? Neighbors? That’s what we thought. It’s not exactly as ubiquitous as beer in the ‘fridge, is it? You can write Gartman c/o Kitco, to set the record straight. As for the bullet points listed above, even taken together they have about as much heft as a bullish economic forecast from the Fed chairman. For starters, although China’s slamming on the brakes could conceivably send the global economy into a fatal tailspin, that would only put more pressure on the Fed to monetize Treasury debt. Concerning the alleged improvement in the U.S. economy, it looks like little more than a blip in manufacturing to us – one that is vastly overshadowed by a gathering budget crisis at all levels of government. As for gold’s “too-strong,” 30% rally in 2010, mightn’t it prove to be just a warm-up for a push to heights that would actually begin to discount the intrinsic worthlessness of the world’s currencies? And how about those stepped-up SPDR redemptions? In fact, they’ve amounted to just 29.3 metric tons so far this year – too small an amount to even interest such sovereign buyers as China, India, Russia, Brazil and Saudi Arabia. As for the hike in futures margins, it’s just a banana peel tossed out by the regulators to give their friends, the bullion bankers, more time to cover. Finally, there are those bets against new Fed stimulus. That is one wager we’ll be eager to fade.
From a technical standpoint, we do see more downside to this shakeout – to at least 1322.20, basis the Comex February futures. That’s $24.30 below Thursday’s settlement price, and if it is reached, gold will have corrected a whopping six percent from December’s record highs. Frankly, because we like to see symmetry in our charts, we’d be more comfortable with a correction of 15% that matches the one that occurred at the beginning of last year. That would bring the price of gold down to about $1217. Whatever happens, and regardless of whether it is inflation or deflation that is perceived as the bigger threat, we would be inclined to view the selloff as merely corrective rather than the beginning of a long-term bear market.
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Since the biggest advertiZZER on ZH is allways a gold co. the prevailing whim is ummm obviously pro gold.
I think Ill start advertising munis and see what TD says then LOLOLOLOLOLOOLOL
HOOKER BREATH
HOOKER BREATH
--that is somewhere between pall malls and bazooka joe, i think...
Most of us are pro gold because owning gold is antithetical to the Fed's machinations. The only thing being pushed around here is hardcore thought. Of course, if you wish to believe that the majority of us fabricate opinions to bolster gold sales, nobody is going to stop you.
Just got here I see. This site has been pro "real" things since it started over two years ago. The advertisers are just catching up with their ad budget dollars.
Strange, I see NO advertising at all:
http://www.mvps.org/winhelp2002/hosts2.htm
"Why put up with painful corns any longer, no salesman will visit your home!" -- Tom Waits, "Step Right up"
Gartman is an asshole. I don't know what happened to Kitco, but the went to the dark side some time ago. Stupid people all over the place. Regardless of where you go you end up tripping over them. Grrrr....
even Government controlled media must tell the truth from time to time in order to keep the fish on the hook.
But you still can't eat it!
Tee-hee
No you can't eat it. But you can forever trade it for things you can eat. There always has to be an exchange mechanism unless you're talking a total barter economy. Gold (and maybe silver) will always be accepted as the exchange mechanism. So you can't eat gold, but it will always be accpeted in exchange for food and anything else. So will your green linen, except providers will want more and more green linen for the same good. Not so with gold. Its value is always steady against other production
Absolutely, well said. Holding physical is a fuck you to the bankers. The bankers rely on fiat, they rely on debt, they rely on monetary magic tricks and binary units on hard drives.
They will absolutely do everything in their power to convince Joe Bag of Donuts that owning physical gold and silver is a bad play. They will shit talk it, and they'll flood the market with paper.
Don't be dissuaded. Buy more. The US mint has already broken a record for monthly silver sales this January, and the month isn't even over. Keep ramming that stick up the Bernank's ass.
Yes, the fuckers are out fucking again. IMO we are going to be driven down to 1250-75 range before ramping to 1600 in this next wee cycle of sell then buy lower later.
Correction (or whatever it is) is just a blip for now, precious metals have been the leader for several years now... The action in gold and silver lately don't bode well for any asset classes.
http://finviz.com/futures_charts.ashx?t=SI&p=w1
http://finviz.com/futures_charts.ashx?t=GC&p=w1
If you believe is gold is going much higher, like $2,000, consider this a blessing to buy at a nice discount.
And stop worrying about what the MSM says. As we know gold is owned by 1% of the population. The 1% isn't reading the MSM or taking it seriously re investment advice.
Gold is going down for two reasons:
1) Momentum traders are selling or sitting it out for the moment
2) The rise is other metals like Palladium and Platinum is signalling some economic recovery for some period of time. That portends higher equity earnings and potentiall higher real interest rates.
We know gold's value is the sum of opportunity costs re other investments, and the safe haven from out-of-control global central bank printing. In the short term, there really might be some higher opportunity costs and interest rate rises.
I hold my physical since I believe we're in a 10-year bad period where reversal of fortune will be common, and gold is the best insurance policy I know. And if it turns out that my insurance policy does not pay out big time, then, like a life insurance policy, I'm kind of glad my other 75% assets are not being killed
So relax, let it settle, and buy more. Don't you like sales?
Make it three:
3) Massive selling of paper gold
Of the three, 3) is the one with the most influence right now!
"I hold my physical since I believe we're in a 10-year bad period where reversal of fortune will be common, and gold is the best insurance policy I know. And if it turns out that my insurance policy does not pay out big time, then, like a life insurance policy, I'm kind of glad my other 75% assets are not being killed"
That was summed up perfectly. The trolls like to spew and froth about how the "bugs" are going to lose their ass. In my own example if I'm wrong, and unicorns piss on the green shoots long enough to grow Skittle trees for everybody than I will retire at a relatively young age on a very comfortable pension. My kids will get to show their kids Crazy Grampa's coin collection and all is well. If I'm right, my pension is lost and I'll be damn glad I had that "insurance". Either way, I'm okay. If the trollfags are wrong where the Hell do they sit?
Some authors (e.g. A. Ralph Epperson) have posited that Wall Street, or more acurately those in the layer underneath Wall Street, funded both the Russian and Chinese revolutions and are attempting to steer our world to be a collectivist world. Interesting times.
Long gold, too.
Collectivist, huh? I suppose that's why more and more of the world's resources are in the hands of fewer and fewer people and institutions?
Funny, that seems just the opposite of 'collectivist' to me.
Capitalism produces two things, without fail: devastation among the indigenous and private accumulation for the brigands.
This takes many forms: the use fraudulent paper to disposses people of their homes is one.
col·lec·tiv·ism
(k-lkt-vzm)
n.The principles or system of ownership and control of the means of production and distribution by the people collectively, usually under the supervision of a government. "... usually under the supervision of a government" or those that really control the government..
Very good: you've just provided the ANTONYM of the phenomenon that has been underway for more than 3 decades. That is, wealth and assets have become more and more heavily concentrated in the hands of INDIVIDUALS, rather than any 'collective'.
The only thing that the 'collective' gets in this whole operation is fucked. Fucked by the privatizers, who wield the law and the lawmakers like weapons.
Capitalists - especially the banker-gangsters - own government.
paper, paper, no plastic. no paper,,what to do?? fiat seems so real, paper, plastic, so real.
PM's who would want them- sell it to the banks stick em with silver and gold- keep your paper keep your plastic,
not likely.
"although China’s slamming on the brakes could conceivably send the global economy into a fatal tailspin, that would only put more pressure on the Fed to monetize Treasury debt"
Good article at Goldcore with charts showing China's move from an exporter of silver a few years ago to an importer....and the demand increase in 2010 is fairly stunning.
...here's the link
https://www.goldcore.com/goldcore_blog/chinese-silver-demand-surges-incredible-four-fold-just-one-year
Anti Gold articles = Continued bull market in Gold!
I would like to see the NY Times Class 3 for the supressor they are using? is it in a trust? or Corp. owned?
backed up the bus yet again today, and next week, Monday Tuesday, and so on.
You can bet the Squid, The Morgue, and every other scum like me is doing the same.
+100
I just started a new ETF
It's called Internationally Dissonantly Cognitive Short Gartman Fund - who's in?
You know, I know the system is banging on gold to flush the soft hands.
Certain countries are collecting it- a lot of it and they need the price lower.
One reason why Chinese President is here- they will raise the Yuan if the FED can secure them some gold collateral.
The force majeure that is coming is going to be a blowout of massive proportions.
Gold running slightly below 50 rsi and below 200 dma.
If rarely gets much lower than 50.
Could have a bounce after options expirations is over
WSJ's version of "Balanced journalism" in the 21st century...
The Bernank would bust a nut before he could conjure up an ounce of gold - "nuff said..."
Wasn't it China, that land of 1.3b, that was instructing its citizens to buy gold and silver not all that long ago?
Whatever Gartman says regarding gold, just do the opposite and all will be well.
Precious metals are the enemy of New York paper pushers, and this includes everyone in New York so it is only natural that the Wall Street Journal would bash anything that is real----New York is a cesspool of lies, deceit, and manufactured wealth redistribution-----don't believe anything you read coming from this cesspool of global crime.
> New York is a cesspool...
You will never find a more wretched hive of scum and villainy. We must be cautious...
The PTB continue to talk disinflation while they inflate. This really means that they are inflating their pocketbooks with the public's deflating pocketbooks.
Actually Darth Vader looks EXACTLY like The Death (yes, THAT death), but much less stronger, and much less scary.
As the shortages of both gold and silver (specifically silver) are becoming more obvious, it seems to me that what we are seeing is a decoupling of the paper from the physical. If GLD and SLV go to zero, it would be the start of true price discovery for the actual physical. Bring it on banksters!!!!
How will this take place, materially? As long as the CRIMEX and assorted banker-gansters can use the fictive 'price' to advance their own agenda, they will.
The obvious fraud can be concealed until when? Who's going to stop them?
Exactly...my point sort of...that being that they will fight to keep what is theirs. They have already shown that they have no scruples. They will destroy the stored wealth of the entire nation to keep their seat of power.
This war needs to widen. Our side of this war needs powerful allies. We have exactly one right now...Ron Paul.
One area of weakness is the CFTC itself. So far, that area has not been fully exploited/investigated. Some judges need to go. Some new rules need to be written. Etc.
Sounds good, but they're in place since much longer than the 80's, it's all inherited seats. Fight to keep what is theirs ? what is theirs is what they've stolen to the people, so no, it's not theirs. They are the same over in Europe, the 21st century plague, who lied their way to power...
Oh we have Allies.
The Bankers are getting BRIC's thrown into their windows.
RP can be a conditional ally, but I'll never work to advance the career of someone who would kill their own grandmother in the name of 'austerity' in order to pay back corrupt banker-gangsters.
Austerity's coming, like it or not. We can wait for it or we can address it. Neither will avoid it, but if we address it, we might have a say in the terms. Blaming RP for saying the money doesn't exist is like punching your wife when she tells you there isn't enough money to pay the phone bill. It's an outlet, but you still can't use the phone.
SS haircuts might mean that Gramma might get SOMETHING for a longer period of time instead of everything for another year or so. Personally I doubt it. I would recommend you start fixing up a corner of the basement for Gramma.
My snappy salute to the Colonel.
Be careful what you ask for...they will be bringing it on. Keep in mind that they can bust your balls through executive fiat or legislation, too.
It is one thing to toss names at them, Banksters, but it is entirely another thing to remove this specific cancer from the nation. This current crop of criminal syndicate Wall Street bankers is 30 years deep into their greed...born of the 80s. These folks have expensive habits, and their delusions about the importance of their role in our world run very deep.
And the bitch of it is...we cannot heal as a nation until they are dealt with. You are at war with them apberusdisvet. Just sayin'.
+100 Cdad!
Well said.
" I am convinced that there are more threats to American liberty within the 10 mile radius of my office on Capitol Hill than there are on the rest of the globe." ~ Ron Paul
Forced reallocation. That is what is moving gold. The criminal syndicate of Wall Street banks cannot have you guys sitting in gold. The syndicate needs you to convert into shares of Netflix. They need that now.
If you are long gold, you are at war with Ben Bernanke. Expect it to be a dirty fight. After all, if the bankers lose, they lose their jobs...which come with some pretty sweet bonuses...even as they destroy the nation.
"After all, if the bankers lose, they lose their jobs..."
Well..., some of the rest of us have already lost our jobs. And oddly enough, have little else left to lose. If I were a banker, that would have my attention.
" If you are long gold, you are at war with Ben Bernanke. "
+10
what other reason do you need?