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Volatility Chasing Goes Gold: Precious Metals Drop On Year End Profit-Taking Rumor
Both gold and silver are having a rough day to say the least. After a forced slide in the gold complex pushed the metal to sub $1,380, fueled in part by recurring rumors of a large macro/commodity fund taking profits ahead of the year end, numerous stops were triggered, bringing it to nearly $1,370, almost $50 below the all time high reached, oh, yesterday. And since traders are now desperate for volatility, which has disappeared from stocks, the daytrading crowd has taken over both the precious metals space... and the bond market. That said, momentum chasers entering the gold and bond market may have the makings of the greatest comedy witnessed in markets in the past several years.
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Nice. PMs are on sale today. I just wish I had more FRNs to trade in.
I always get a kick out of people (not you Michelle) telling others to buy when things are on sale. Usually those people are money mangers that always have a source of ready cash. Poor fools such as us wage slaves don't have that flexibility.
BTW how is baby and mother doing? I suspect it's time for an update and a new picture of the off spring that I can post for the ZH community. :>)
All us poor middle class americans, our comfortable lifestyles built on the exploitation of 3rd world labor and resources for generations and generations.
It wasn't that long ago that Americans made things ourselves, from our own resources. I can remember that.
You mean well. I'd love to see, but I don't think it is a good idea to post the baby pic. I know I sound paranoid. I am a mother. Safety first.
+1
+1000 to all mommies!
Actually Michelle sent me a link to a picture and gave me permission to post it a few months back, which I then did. I understand your point, but Michelle didn't have a problem with it for whatever reason. I stripped it out of the link so there was no way to trace it.
Along with ZHer above just maxed out the credit card (Chase heheheh), Austrian Phils are in stock woohoo...
... breathe, guys, breathe.
Just buy and hold the real thing.
Even looks kinda pretty too.
This is why I don't get the anger over manipulated prices. Let them manipulate it, people! It just means we have more time to accumulate at what will one day be looked upon as bargain basement prices. More time for you to convert & preserve wealth!
I for one welcome a JPM/Citi/Jesus/Elvis/Illuminati/Helghan/Covenant/Locust Horde/Idon'tgiveafckwho beatdown. It just means I get more for my FRN's; or I have a little more time to get family/loved ones on board.
Food stamp usage crosses 14% of Americans, almost 1 in 7 as "recovery" rolls on. 16.2% increase year over year
http://www.fundmymutualfund.com/2010/12/foodstamp-usage-nearing-1-in-7.html
Aw....JP Morgue and the lot are having a Christmas sale on silver and gold...and I didn't even know they celebrated it.
Different dynamics at work with rising interest rates being the problem, one that is fluid, vs a margin increase which is a one off. If interest rates keep going up, PM's will keep going down. Resistance for Silver comes in at the following: 28.5 29.5. Support comes in at 26.75. Good luck to all.
interest rates rising here are the result of a disorderly breakdown and fed failure...in this particular circumstance it is not an environment for weak gold. QE is failing...the fed is failing....." only place for fiat money to go is gold"
I think we will all be surprised at the damage about to be done in this space.
But you didn't really respond to his point, (nor others who have made the same point recently) did you?
I think that soon you will be be "astonished" at whats about to happen to gold holders. In six months when gold is well above its all time high from two days ago you will confess to weeping when you imagine the "brutal smashing about to be unleashed on gold holders".
The beat goes on...
I would be very surprised if serious damage occured independent of equities. the only way I see that happening is if a total margin called fueled complete asset panic breakdown occured and gold would still out perform
Every time it falls a few % I wish there was some way to time this stuff, and I have tried and failed enough to see that the best I could possibly hope for is to break even. This is just part of the "opportunity cost" of holding real money while the system winds its way toward oblivion.
I think if the stock market crashes, gold will indeed get hurt as people sell the only thing that still has a bid to make their margin calls (just like last time). I'll sit through that too...
it goes without saying not to sell your physical but you can hedge physical with GLL( 2x short gold) and ZSL (2x short silver)....and if paper and physical separate you could make money both ways...I has some gll on and took it off today
That is more of what I see, that equities decline and metals come in as well. Problem is Silver could really get smacked hard to test 23. First uptrend at 26.5, second at 20. Will be interesting to see what develops. Good luck.
I am weighted 6:1 gold to silver
Rising Interest Rates will not and do not crash gold or silver.... when rates were at 20%, Gold went to the moon in late 70's and 81'.
I suggest you read up a bit more on the history of PM's pricing before putting false info out there. And, the fundamentals on the metals are 100 times more in their favor when you take a Macro Economic view.
You have to look at REAL interest rates. Not NOMINAL. Instead of suggesting people read up on history I suggest you read http://en.wikipedia.org/wiki/Real_interest_rate
I don't recall seeing that the orginal post, that I'm responding to specified either way, REAL or NOMINAL... in either event, it doesn't matter is the bottom line. Have a chat with Jim Sinclair and the late J. Livermoore to clarify for ya.
False would imply intent which is absent here. and I sit correceted, yields have fallen sinc e the auction results and so have PM's as Silver sniffs a new low for the day near 28. Strap in.
tworiver..., false doesn't necessarily equal 'intent' when one may not have facts at hand. I'm sure you're a stand up guy/gal, and i was just saying check the record... apology if i came across flip... thanks so much for rectifying, show's your integrity. Now lets make some dough !
Profit-taking...on PMs'... with a failed German bund auction. not especially likely.
What counts is how much of the gold and silver we can stuff in our mattresses. The lower the price the more we can buy.
comex and EE's response to the "ongoing" cftc "investigation" and to the small retail investor as performed by the best (bleep)ing band ever.
http://il.youtube.com/watch?v=ampimg_SO3M
All this time, I thought it was:
http://www.youtube.com/watch?v=0EnVI1e_p3A
Sorry, but screaming is not as good as articulation.
Gold fell 5P in May, June, October, November, and now December.
Buy on the dips, buy on the dips . BUY BUY BUY !!!!!
Buy the dip. Just buy the fucking dip.
No end to money printing. No end to corruption. Just buy the fucking dip.
Your logic for buying is impeccable. I am anticipating a large dip however. Perhaps the last?
I will simply dollar cost average. Silver is already getting hard to get. Gold still seems widely available. The physical will decouple from the paper at some point, and then price will not be relevant - only possession.
Agreed. I haven't stoped buying and taking possession but I have slowed it down the past week. Hoping and anticipating JPM making a bonehead move like we are witnessing.
Anybody of any size that could move the market in Precious metals knows the game.
The problem arises when the price appreciates to quickly.
The people that are not in the game (joe public) look over their shoulder hearing all the commotion and excitement.
Humans are of the herd mentality and it's rise must be controlled.
Joe public is slowly comming around to the game so they will be able to move the market.
Everyone knows this is a paper game.
Transitioning from a Paper to a Physical market as we speak.
This will occur because trust is rarer than Gold. (remember the herd mentality)
Sell Mortimer Sell!
(So I can buy more)
I wouldn't be surprised to see $100 a day movement in Au and $5 a day moves in Ag going forward.
Every oz a person like myself buys, is an Oz that will never be in storage at a bank. I could care less what the $USD is worth today vs Au/Ag.
If the Phys keeps going out to the masses each day, the harder it will be for JPM et al
If 200 Million people just in the US bought an Phys Oz of Au and a Phys Oz of Ag and put it in their drawer for their kid, (and if a few other countries around the world did the same) I wonder what would happen to the JPMs and Comex?
Btw, Au is for Optimists, many of us are diversifying into Canned Goods.. :-)
Second that...
This comment should be the last in the line. Bigger and bigger moves have been talked about for 5 years now. Freakin gas went up 10 cents last night. Bigger moves in everything coming. I don't care if its clothes or PM's , buy now and the range won't matter.
thank god for paper gold.. it's a gift that keeps on giving... Time to add some weight
Let me know when to start laughing
At what?
Randolph Duke: Good, William! Now, some of our clients are speculating that the price of gold will rise in the future. And we have other clients who are speculating that the price of gold will fall. They place their orders with us, and we buy or sell their gold for them.
Mortimer Duke: Tell him the good part.
Randolph Duke: The good part, William, is that, no matter whether our clients make money or lose money, Duke & Duke get the commissions.
Mortimer Duke: Well? What do you think, Valentine?
Billy Ray: Sounds to me like you guys a couple of bookies.
Randolph Duke: [chuckling, patting Billy Ray on the back] I told you he'd understand
"Fundamentals have never had anything to do with this market" - Melissa Francis on CNBC in regards to oil just about two minutes ago.......Freudian Slip....hmmm
I'm not actively trading to profit. The physical is sitting in my safe for when the dollar is useless because it is too germy to use for toilet paper. I don't really care how many dollars it is worth then; I'm more interested in pounds of flour or .22 cartridges per ounce.
Even better....
President of Exchange: [BEN BERNANKEhas just collapsed with shock] JAMIE, your co-conspirator is not well. We better call an ambulance.
JAMIE DIMON: Fuck him! Now, you listen to me! I want trading reopened right now. Get those brokers back in here! Turn those machines back on!
[shouts - it echoes pathetically throughout the trading hall]
JAMIE DIMON: Turn those machines back on
I'd just like to say thankee kindly for promoting silver so strongly. The people's precious metal. You've got to love a 60%+ move in four months.
Yesterday was a very nice sentimental peak, great opportunity for short-term profit-taking. The long-term drivers for silver and gold obviously remain in place.
Where are those assholes that were calling me names when I told them they were rediculous for buying silver @$30? You still long fools? LOLOL.
won't hear any bragging from the silver fish today
So you're actually cheering the blatant manipulation?
Bought more yesterday, in fact and am buying more today. What will you two a-holes say when it's $65, gas is $5/gallon and you're holding Starbucks, netflicks or other worthless paper?
Yep, still long - been dollar cost averaging from $16 or so - which was only 6 months or so ago.
How's you dollar doing Paper-bug? Is it going further at the gas pump or the grocery store?
That reminds me -- I should bring out the old silver rounds and holiday 1 oz bars to sell on eBay. Bought these things by the handful in the mid-1990s at $5 each. I should upgrade to Silver Eagles and get rid of the generic ounce-sized junk.
@ estrader - What's "rediculous" is not knowing how to spell ridiculous. The root of the word is ridicule - something to which you have no doubt been exposed many times. Have another helping on me.
This is not a thin market. No professional trader would dump enough volumn at one time to effect a $20 decline in 15 min in this market. Someone just shorted it in volumn in order to attempt to break down any speculators or to effect market psychology in general, to instill fear in longs.
I just spot-checked a few of my Silver Eagles. They are all still the same size and weight!
Whew. I thought I was a goner there for a minute. That price drop didn't seem to affect the physical silver at all.
Is it possible that they never actually approve the Bush tax cut extension and kinda hold off on it.....No one sells in advance and then POOF...it expires...just like that? Leaving no one the opportunity to take those profits?? And not allowing them sell at beginning of the year either????
Force everyone to stay in the game!!!!
Just bought 20 oz of AU
Back Back Back
Back up the Truck, there you go doesn't that feel good!
ya baby, who's your daddy!
lalala
......'Spot gold has strong hourly technical chart support at $1,370 to $1,368 an ounce, says Andrew Chaveriat of BNP Paribas, following Tuesday’s bearish key reversal. “While not expected, gold's bearish daily momentum, intensified by bearish divergence, does risk breaking of critical $1351 support (from the) late-November base, which would signal a medium-term reversal,” he says. Regarding spot silver, it is holding $27.90, the key support from its Nov. 23 high. If that holds, it would increase the odds the gold selloff will hold above $1370-1368 support, and begin short-term basing or a rebound'.....
http://jsmineset.com/2010/12/08/a-look-back-to-january-6-2010/
A Look Back To Jan 2010
Jan 06 2010 By: Jim Sinclair
The Angels (see chart-image) are moving targets that are refined with each market reaction. Their change is miniscule but we account for it. That fact that $1224.10 was the cash high and the fact that the $1080 area worked reasonably well has lit up $1764 even brighter than $1650.
I therefore conclude that gold is definitively going to $1650 with an overrun to $1764 prior to a reaction before it moves to higher prices on or before January 14th, 2011
G'day mates,
Bought a 1 kilo + 10 ounce Kookaburra + a 10 ounce koala on the first comex dip but missed the second big dip - lost out at maybe 50 euro cent+ a ounce if I waited another hour , oh well.
It's year end profit taking, after the first of the year, we will be back on track.
Nothing has changed in the US Gv't, or Congress, or the NoFricken Economy.
Or Ben Salomi Burnaki's stupid QE to Infinity.These dudes are going to be ill,you trading FRN's for PM's in hand?. Crazy.
Insurance, insurance.
Hold, and buy the dip.
And the euro zone is shredding itself. Just hold, and buy if you can.
...and don't fuck gold.
Now that this bitch is angry and volatile. Let's see who get's their shoeshine box and who doesn't.