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Bank Of America Would Like To Buy Your Gold, Seeing "No Gains Above $1315"

Tyler Durden's picture




 

Last year it was Goldman Sachs telling clients to "dump your gold" (only to become the biggest buyers of the precious metal in the following quarter). Just last month, Morgan Stanley advised clients that 'gold will not see $1300 again'... and today, Bank of America joins the crowd as Macneil Curry advises "It is time to sell Gold" (to BAML we presume?)... as the range trade of the past month is completing and the downtrend is set to resume.

 

BofAML notes...

It is time to sell Gold. The range trade / consolidation of the past month is drawing to a conclusion. Further gains should not exceed 1315.70 (May-05 high) AND CAN'T EXCEED the Mar-14 high at 1331. Downside targets are seen to 1215.

Sell Spot Gold at market (1300), risking 1325, targeting 1215, potentially below.

 

Which leaves us wondering... have we found a Thomas Stolper replacement?

 

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Mon, 05/12/2014 - 15:34 | 4751893 GetZeeGold
GetZeeGold's picture

 

 

Printing money has always worked out well in the past.....right?

Mon, 05/12/2014 - 15:37 | 4751914 FieldingMellish
FieldingMellish's picture

Every. Single. Time. No exceptions. None.

Mon, 05/12/2014 - 15:39 | 4751925 espirit
espirit's picture

Last grasp for the shiny?

MERS in Orlando FL.

Mon, 05/12/2014 - 15:49 | 4751965 svayambhu108
svayambhu108's picture

Everyone praises Putin chess playing, but is not like that, US foreign policy is like a bucket with a hole in it, all you have to do is wait...

Mon, 05/12/2014 - 15:51 | 4751980 cifo
cifo's picture

Time to sell the wife too. She doesn't get any younger.

Mon, 05/12/2014 - 16:55 | 4752252 macholatte
macholatte's picture

 

Do those folks at BofA have any kind of track record?

What's Gartman doing?

Mon, 05/12/2014 - 17:12 | 4752321 kliguy38
kliguy38's picture

He's scared

Mon, 05/12/2014 - 20:56 | 4752994 whotookmyalias
whotookmyalias's picture

Yeah I totally trust BofA (or any other greedy lying bastard banker).

Mon, 05/12/2014 - 15:42 | 4751926 NoDebt
NoDebt's picture

I'm sorry, but that's not even GOOD chart porn.  Look at that mess.  Connecting unrelated highs and lows, drawing a channel so wide it covers half the Atlantic Ocean.... I mean that's just CRAP right there.

Fair disclosure, I'm not even a gold bug.  But that work looks suspiciously like something produced when the guy with the crayon in is hand is told "make the chart say this". 

Mon, 05/12/2014 - 15:45 | 4751944 Hippocratic Oaf
Hippocratic Oaf's picture

What part of a downside 45 degree angle do you not get????

Sell, goddammit, sell!

Buy stocks, goddammit, the shill must go on!!!

Ahhhhhhhhhhhhhhhhhh!!!

STAWX!!!!!!!

Mon, 05/12/2014 - 15:43 | 4751947 espirit
espirit's picture

Do you mean technicals and fun-duh-mentals don't matter?

Go figure.

Mon, 05/12/2014 - 16:37 | 4752180 Kirk2NCC1701
Kirk2NCC1701's picture

Gold's not going anywhere.  Gold is gold.  It is only fiat that's doing gymnastics and spinning at the Fed Gym.

I continue to be amazed at how many ZH readers, bloggers and goldbugs still don't get that.  Even the mighty Tyler keeps framing it terms on the USD being the Denominator, rather than the Numerator.  Rickards may not have all the answers, but he's 100% right on that, and you people need to "go back to school", to really "get" Gold vs. Currency. 

Now junk away in retribution having caused cognitive dissonance.

Mon, 05/12/2014 - 18:01 | 4752454 Dickweed Wang
Dickweed Wang's picture

I'm with ya' bro.  IMHO their plan is to smash the price down to the sub $1200 range (maybe even sub $1000?) to get the "traders" and short term "investors" to bail out.  Then the price is going to explode to the upside when the sheep finally figure out the emperor (aka the dollar) has no clothes and the only way to salvage any of their remaining "wealth" is to buy PM's.  I figure this is going to take place in the next 2-3 months, tops.

Mon, 05/12/2014 - 20:55 | 4752988 whotookmyalias
whotookmyalias's picture

"if" I had any gold, I would not care what it does in the short term or the medium term (in relation to any fiat currency).  It would be held for very specific reasons and long term security against the very worst scenarios.  "if" is the keyword in my entire statement.  Damn boating accidents....

Mon, 05/12/2014 - 21:22 | 4753072 TheRedScourge
TheRedScourge's picture

You sure that's how it's going down? I highly doubt the currency will implode that fast for one, and for two, look at what happened to gold in the 2008 crash. Massive panic sell, followed by slow multi-year climb. I've seen a lot of strength in gold mining stocks lately though, so I'm rather hesitant to sell at this point, but I do think it is wise to have a big chunk of cash, so as to be able to buy everything after the bottom falls out of the market later this year, probably Nov or so.

Mon, 05/12/2014 - 15:36 | 4751895 SheepDog-One
SheepDog-One's picture

Hey Cancer of America fractional reserve central banksters, go fuck yaselves.

Mon, 05/12/2014 - 15:43 | 4751945 Bay of Pigs
Bay of Pigs's picture

Ive been here at ZH 4 years now and it just worse and worse and worse when it comes to the lying, fraud, manipulation and corruption in the gold and silver markets. There is no honesty or integrity left at all. Its one big farce.

Like you SD1, Im so sick of these fucking banksters...

 

Mon, 05/12/2014 - 16:26 | 4752140 semperfi
semperfi's picture

corruption is always the highest at the end of long booms

Mon, 05/12/2014 - 17:55 | 4752452 Mr. Magoo
Mr. Magoo's picture

Why would banksters want such a barbarous relic

Mon, 05/12/2014 - 16:30 | 4752152 Kirk2NCC1701
Kirk2NCC1701's picture

REAL gold fans would take the opposite tack and say: "Thanks for the Dip!"

Gold speculators and gold-friendly CFPs, who keep getting burned and made into liars and fools, have reason to be pissed of course.

I've given up on being a get-rich-quick gold speculator, and have settled for the "BTFD & Hold" instead.  Like Kirk's been saying for over a year (since Apr, 2013), it's a SIDEWAYS MARKET in PMs.  PM will continue to be CHANNEL-BOUND until TPTB decide otherwise. 

And unless you got an inside track with TPTB, you're a gambler or fool if you bet with you own money.  If you're playing with OPM, you're a fraud or self-serving huckster, if speculating with PM and don't have an inside track with TPTB.  In which case, you deserve to get "retribution" from your defrauded clients.

Mon, 05/12/2014 - 17:00 | 4752275 Greenskeeper_Carl
Greenskeeper_Carl's picture

gold will have its day. I used to get angry about it, mainly becuase my miner stocks have gone nowhere, but Ive changed my outlook, since this allows me to accumulate physical at wat i consider bargain prices

Mon, 05/12/2014 - 18:04 | 4752480 Dickweed Wang
Dickweed Wang's picture

Yeah buddy . . . . .

Mon, 05/12/2014 - 18:07 | 4752488 KingFiat
KingFiat's picture

Too early for me to say "Thanks for the dip". I'm still holding onto my fiat, waiting for a real dip. Once we are over the uncertainty regarding Ukraine, I think we might get this dip. But I am watching closely, as I do not think the dip will last for long.

But my thinking is influenced by the fact that I already hold a lot of physical PMs held outside the banking system, so I do not mind if I am wrong and PM prices go to the moon leaving me with a bit of worthless paper :)

Mon, 05/12/2014 - 21:26 | 4753081 TheRedScourge
TheRedScourge's picture

Don't buy on dips, buy when there's blood on the streets. Hold the currencies that aren't being printed as severely until then, and perhaps a few commodities like uranium that pretty much can't get any lower (TSE:U for example) to preserve value incase something happens to your currency, and just be patient.

Mon, 05/12/2014 - 15:35 | 4751897 KingdomKum
KingdomKum's picture

we few,  we happy few,  we band of silver holders  .  .  .

Mon, 05/12/2014 - 15:47 | 4751949 Manthong
Manthong's picture

Sooner or (likely) later, everybody will come to understand this..

A Washington quarter dollar coin (90% silver) would buy you a gallon of gasoline in 1964. That same 25 cent coin (after a stop at the coin store to swap it for FRN’s) will buy you a gallon of gasoline today.

A one dollar Federal Reserve Bank note (FRN) in 1964, would buy you four (4) gallons of gasoline. That same FRN today will buy you one fourth (1/4) of one gallon of gasoline.

And my guestimate is that at some time in the foreseeable future, the smart independent gas station owner is not going to want you to make that intermediate stop at the coin store.

Mon, 05/12/2014 - 15:49 | 4751966 espirit
espirit's picture

So easy, even a caveman can do it.

No, I'm not ray-ciss.

Mon, 05/12/2014 - 15:53 | 4751991 espirit
espirit's picture

@Manthong

Just had my significant other read your post, then asked me what a quarter dollah was.

I am so fucked.

Mon, 05/12/2014 - 17:01 | 4752281 Greenskeeper_Carl
Greenskeeper_Carl's picture

DO-NOT-PUT-A-RING-ON-THAT

Mon, 05/12/2014 - 17:57 | 4752455 oklaboy
oklaboy's picture

cougars have that problem

Mon, 05/12/2014 - 15:57 | 4752001 Darksky
Darksky's picture

Did some googling and your numbers appear accurate. Just emailed all my friends your comment. Wonder if one of them will "get it"?

Not holding breath.....

Mon, 05/12/2014 - 15:58 | 4752006 jbvtme
jbvtme's picture

petro silver?

Mon, 05/12/2014 - 15:36 | 4751907 Gringo Viejo
Gringo Viejo's picture

Each and every day, more and more people, are seeing these criminal fucks for what they are. Critical Mass approaches.

Mon, 05/12/2014 - 15:37 | 4751911 Stoploss
Stoploss's picture

First, they want to buy it.

Then, they want to take it.

Funny how that never works for fiat no??

Mon, 05/12/2014 - 15:38 | 4751924 seek
seek's picture

... gold is going down because they fixed everything after 2011, so of course it's time to sell! /sarc

Mon, 05/12/2014 - 15:39 | 4751929 smoothie
smoothie's picture

So time to buy, and hold, the banks have none and they can't get any because everyone is holding, the chinese bought it all, prices are about to go through the roof when the bubble pops, and they have realised that they are holding paper. So I'll just hand over my ass at the same time shall i, it seems that you want to fuck me in it after all!

Mon, 05/12/2014 - 15:39 | 4751930 goldhedge
goldhedge's picture

Well thats a buy signal.

Mon, 05/12/2014 - 15:39 | 4751931 MFL8240
MFL8240's picture

Trade your Gold in for paper dollars and then they will devalue the junk by 30%.  FU BofA!!!

Mon, 05/12/2014 - 15:41 | 4751934 Peter Pan
Peter Pan's picture

So holders of gold might not see $1300 again?

How about contributors to social security who are a couple of decades away from retirement? Will they see their pension checks arrive?

Mon, 05/12/2014 - 15:53 | 4751937 Save_America1st
Save_America1st's picture

I'll sell those B.unch of A.ssholes some gold...

1 ounce for 70 ounces of fine-ass f@cking silver, bitchez!!!

Keep on stackin'...

Mon, 05/12/2014 - 15:44 | 4751951 beegle
beegle's picture

also jpm , had a bearish view this morning ... I guess the banksters are joining forces ! sith tight , belts on !

Mon, 05/12/2014 - 18:14 | 4752510 unwashedmass
unwashedmass's picture

 

tits in the wringer. there's no more inventory ... and they sold a shitload of naked contracts to get it under 1300 ...

unfortunately, they sold a lot of those contracts to China. 

Now there's no inventory, no actual bullion to deliver. 

Yeah.....think about that. What to say to China? JK, China? 

Mon, 05/12/2014 - 15:45 | 4751952 semperfi
semperfi's picture

I will sell them my gold, gladly!  $50,000 per oz motherfuckers. 

Mon, 05/12/2014 - 15:53 | 4751963 Save_America1st
Save_America1st's picture

good point!  Maybe I was shootin' too low at 70:1 

It's all manipulated to that ratio anyway.  I change my mind.  I'll be fair, and B.unch of A.ssholes can have 1 ounce of gold for a monster box of ASE's.  

Mon, 05/12/2014 - 15:46 | 4751957 Mr. Pickles
Mr. Pickles's picture

More "do as I say, not as I do" BS.. The Big Boys are sharpening their clippers, preparing for yet another shearing-fest.. When are the serfs going to wisen up?

Mon, 05/12/2014 - 15:51 | 4751976 Chump
Chump's picture

You seem to think the serfs have gold to sell to BoA...

Mon, 05/12/2014 - 17:12 | 4752318 Mr. Pickles
Mr. Pickles's picture

Maybe "serfs" was a bad word to get my point across.. What I mean is that anyone who takes their advice is going to get fleeced.

Mon, 05/12/2014 - 15:48 | 4751964 Bill of Rights
Bill of Rights's picture

Go fish for it assholes....

Mon, 05/12/2014 - 15:50 | 4751974 hognutz
hognutz's picture

BOA can kiss my ass...

Mon, 05/12/2014 - 15:51 | 4751981 Luckhasit
Luckhasit's picture

Well, it seems they found a way to cover the gold spread.  They want my gold but all theyre going to get is me cacklin like a villian ina superhero movie. 

Then I will tell them to get off my lawn and i will use my shotgun for emphasis.

Mon, 05/12/2014 - 15:52 | 4751982 Spungo
Spungo's picture

Gold to 800! Keep stacking all the way down!

Mon, 05/12/2014 - 15:54 | 4751990 Bill of Rights
Bill of Rights's picture

Even @ 800 it still has more purchasing power than a FRN..

Mon, 05/12/2014 - 15:55 | 4751996 youngman
youngman's picture

They are slamming gold on CNBC today for some reason..

Mon, 05/12/2014 - 16:47 | 4752223 negative rates
negative rates's picture

Dim the lights, it's show time.

Mon, 05/12/2014 - 20:31 | 4752923 RaceToTheBottom
RaceToTheBottom's picture

Is CNBC still on the air?

Mon, 05/12/2014 - 15:56 | 4751998 Al Huxley
Al Huxley's picture

'See this line on the chart?  That's the line that hundreds of millions of Indian and Chinese are watching, waiting for THE BEST time to sell off their gold.  That's going to flood the market.  There are no more astute technical traders of gold for paper than the Indian and Chinese retail buyers.  Trust us, we're TBTF'.

Mon, 05/12/2014 - 16:03 | 4752044 SAT 800
SAT 800's picture

LOL.

Mon, 05/12/2014 - 15:58 | 4752012 Solomon the KING
Solomon the KING's picture

The list of clueless is growing strong, which leaves me even more bullish on GC.

Mon, 05/12/2014 - 19:21 | 4752695 Papasmurf
Papasmurf's picture

GC is the symbol for paper gold.  You didn't seem to get the memo.

Mon, 05/12/2014 - 15:58 | 4752014 Cacete de Ouro
Cacete de Ouro's picture

So, MacNeil Curry, you like drawing lines over triangles for a living?

I bet you were the best kid in the class at 'join the dots'

Congrats!

Mon, 05/12/2014 - 16:00 | 4752025 Bastiat
Bastiat's picture

DOA's advice on such matters is priceless!   Or was it worthless? 

Mon, 05/12/2014 - 16:05 | 4752046 smoothie
smoothie's picture

I know something that is about to be priceless!

Mon, 05/12/2014 - 16:01 | 4752033 smoothie
smoothie's picture

I suppose we can't all be as clever as gordon brown! When they tell us to sell they must be telling the truth, why would they lie, yeah its the deal of the century, init gordo!

Oh wait, I've gone full retard again..!

Mon, 05/12/2014 - 16:04 | 4752039 Kreditanstalt
Kreditanstalt's picture

Would someone - anyone! - please tell me exactly WHAT macro-fundamentals support the alleged falling value of gold?

(On a WORLDWIDE basis - and I don't mean "the COMEX gold price", either).

Mon, 05/12/2014 - 16:07 | 4752062 Al Huxley
Al Huxley's picture

Haven't you been paying attention?  The US Economy is booming and the recovery is rapidly gathering steam.  The situation in the Ukraine has come to a peaceful resolution, and all the Eurozone debt issues have been deftly resolved by Draghi and his cohorts.  The best place to have your money right now is either stocks, or safely in a TBTF bank account (IFF you want to miss out on the opportunity to be a stock market millionaire, that is).

Mon, 05/12/2014 - 16:20 | 4752123 Kreditanstalt
Kreditanstalt's picture

Oh!  Wonderful!  Free "money" to play with!

FREE wealth being created!    At least until someone needs to sell...

 

Mon, 05/12/2014 - 16:50 | 4752236 Bemused Observer
Bemused Observer's picture

It would appear that the macrofundamental is that someone wants to pound the price down so they can BUY it at a low price.

Either that, or BOA has decided to perform a public service and buy everyone's gold to spare them losses when the price goes even lower.

Tue, 05/13/2014 - 08:40 | 4754060 ltsgt1
ltsgt1's picture

The macro-fundamentals are oil, dollar and gold - Iraq, Libya, Syria and Ukraine. The US government is becoming increasingly desperate and blatant to preserve the reserve currency status. The 2nd Gulf War was the first and Libya second.

Bush terminated Saddam Hussein to kill petrol-euro. EU terminated Ghaddafi to kill his gold back Dinar - the Europeans didn't want to buy Libya's oil with gold and the US didn't want other oil producing countries to follow suit. Obama is now using terrorists and neo Fascists to kill the BRICS bank in its infancy. IMF and the dollar don't like competition.

Mon, 05/12/2014 - 16:05 | 4752050 blabam
blabam's picture

GOFO still negative... yup they are full of shit... unless we get the mother of all paper shorts. 

Mon, 05/12/2014 - 16:09 | 4752071 delivered
delivered's picture

Of course BOA failed to mention how they arrived at this price. Extensive research, I doubt it. In-depth knowledge, what are you kidding me from a bankster. No, rather they are just a proxy for their masters from the Fed who have set the price range and will provide unlimited support behind the scenes to make sure this is the path for gold. Remember, the Fed and Washington need "stability" and cannot have a correction in equities, cannot have credit yields increase, cannot have real estate deflate, and cannot have PMs increase. Period! These are the mandates of the Fed as target inflation and unemployment rates mean nothing to them now as a collapse in equities, credit, or real estate would bring the entire house down.

With the Fed providing whatever ammunition needed by their bithces (oh I mean banks) to pump equities and dump PMs, I don't have much of a doubt that they can achieve this price for gold, at least on paper. I suspect that physical supplies continue to remain very tight and that in order to drive some physical volume into the market, they will coordinate bear raids to shake some gold free. Problem is, most of what they will shake free is nothing but paper not to mention the fact that as the price of gold decreases, eventually, so will production. Further, most real gold investors are looking at a much bigger picture than 30 to 180 days and look at markets in terms of decades rather than months. 

And just one other thought at the global macro level, about the only European leader working with Obama against Russia is Merkel from Germany (as others have been very quiet, including UK, Italy, Spain, etc.). I figure the deal that was cut is that Merkel will provide some political support in exchange for Obama promissing to expedite the delivery of German's gold back (which is really dragging). So with US's coffers empty, time to raid the public and find another 20 to 40 tonnes to meet this years delivery. Enter the banks and the bearish message - story complete!

I don't profess to be a gold bug but in this economic environment, one that has witnessed the greatest infusion of money into the system ever ($10 trillion by the world's central banks over the past 5 to 10 years), one that has pushed the use of debt to record highs, one that basically has almost no freely functioning markets left, one that has resulted in the highest level of economic inequality on record, and a global economic rebalancing that is shifting wealth from West to East, its hard not to have at least 10 to 20% or more of your portfolio in a natural hedge/insurance such as gold or other PMs. 

So let them push on gold prices even further and I'll step in and buy some more. Not worried about a 10 or even 20% correction in the price. Been here, done that before. Rather, the real issue is when the debt load becomes so unbearable and the next round of CB QE produces no results, that the entire system will reset. At that point, you had better have a diversified currency portfolio which of course PMs can provide a natural hedge against currency instability. Just ask the people of India why they accumulate gold on a systematic basis, year in and year out. Part of their culture, yes but just as important, a means to diversify wealth and hedge against the government's mismanagement of their currency. 

Mon, 05/12/2014 - 16:09 | 4752073 indmotor
indmotor's picture

I agree, If You can find an honest buyer at 1300.00 Sell. Silver to gold at a ratio of 15 silver to one gold computes to a dismal $292.50 US fiat dollars. I am SURE that Gold is going under $800.00 soon and that too might be optimistic! I would advise selling as soon as You can, while You still Can find a sucker to purchase it!

Mon, 05/12/2014 - 17:13 | 4752276 smoothie
smoothie's picture

I'm not sure so you say I should sell, sell quick, before its too late?

Also please go fuck yourself!

Mon, 05/12/2014 - 17:53 | 4752444 indmotor
indmotor's picture

Yes smoothie, SELL as soon as You can find a Buyer. Read My last post. It will shock You.

Mon, 05/12/2014 - 17:59 | 4752445 indmotor
indmotor's picture

Smoothie, that was Mean to say those bad words to Me.

Smoothie, not this post but the one further down. OK..

Mon, 05/12/2014 - 20:38 | 4752942 smoothie
smoothie's picture

Aye and what about the nasty thing you just told me to do, that's OK isn't it!

Mon, 05/12/2014 - 16:09 | 4752075 Richard Head
Richard Head's picture

This BofA asshole doesn't even know how to draw a proper trendline. It should touch the Aug 28 high, in which case the downtrend has already been broken. If you believe technicals matter in this market, fwiw.

Mon, 05/12/2014 - 16:10 | 4752079 smoothie
smoothie's picture

Questions:

1. does this also mean silver is a better buy than gold since its sitting at production price, meaning it is basically at cost.

2. And silver is more liquid than gold for barter.

3. Can one safely assume that the increase in silver could be significantly more than that of gold.

4. Did I actually just go full retard with those questions, and I should shut the hell up and buy gold not silver

Mon, 05/12/2014 - 18:57 | 4752611 Hurdy Gurdy Man
Hurdy Gurdy Man's picture

Good for asking questions.  These comment threads can become very conservative sometimes.  Ask, ask, ask.

I don't *think* silver's the same as gold because there's a lot more of it in other forms (candlesticks? silverware?) that can enter the marketplace melted down.  Gold is the same way but I think there's a lot more silver on earth already in use than gold. 

 

Or have I gone full retard?

Mon, 05/12/2014 - 19:53 | 4752799 smoothie
smoothie's picture

My friend you make perfect sense. 

I'm learning quite a bit since I came on this site.

And its good advice as I see it.

Thanks!

Mon, 05/12/2014 - 16:12 | 4752086 CryptoCoinUser
CryptoCoinUser's picture

Buying some more gold & silver via

https://silversaver.com/share/KZ7XE/
Mon, 05/12/2014 - 16:19 | 4752116 smoothie
smoothie's picture

I have limited funds and I need to optimise profit because of that, so I have to pick silver or gold.

Mon, 05/12/2014 - 19:15 | 4752674 Ruger556
Ruger556's picture

Pick silver..

Mon, 05/12/2014 - 19:14 | 4752672 Ruger556
Ruger556's picture

Man..just seeing that shiny metal makes me smile

Mon, 05/12/2014 - 19:28 | 4752699 wanderintheland
wanderintheland's picture

If you don't hold it, you don't own it.

Nobody's holding my shiny for me.

on edit: I'll bury my metal before I put it in someone else's vault.

Mon, 05/12/2014 - 16:14 | 4752096 enloe creek
enloe creek's picture

yes it is going to 1200 or lower, but first they will allow it to breakout so they can mow the long traders like a field of weeds, If I could manage the price of gold I would do the same thing but I am not as nice as the bullion lords so I'd push the price to about 1336 then slam it down and back up to get the longs then the shorts.  bwahahahaha. that is all that is going on just fleecing the technical traders for fun and profit. so what. pull on your big girl panties and get over it or just don't play and buy rental property.

Mon, 05/12/2014 - 16:37 | 4752181 Tinky
Tinky's picture

*they* have been trying – unsuccessfully – to smash gold lower for some time now; the pressure from the boiling pot is making it increasingly difficult to keep the lid tightly in place.

 

Mon, 05/12/2014 - 16:46 | 4752214 smoothie
smoothie's picture

So actually you are saying that it would be hard for gold to go much lower, gotch, I'm looking at silver too, I hear it is sitting close to production cost, in the long term I'm thinking that it could increase more than gold in a bang for buck scenario I'm not sure where to put my money, silver or gold?

Mon, 05/12/2014 - 17:04 | 4752290 Tinky
Tinky's picture

Those with limited funds are probably best advised to choose silver. However, there are advantages and disadvantages to each.

Silver will likely close the ratio gap, and in that sense, offers greater upside potential. But it is more volatile, not as liquid nor as transportable as gold. Also, when things really begin to fall apart, the flight to safety will initially be to gold.

Mon, 05/12/2014 - 17:11 | 4752317 smoothie
smoothie's picture

Thanks man, I appreciate that, I only have a small fund, and I have to be careful as I'm building a 10% disaster hedge, I get your meaning, going through customs to aus is easier with your family and 10 gold coins than 100 silver, I did get a small amount of silver yesterday, but I'm gonna finish with on gold.

What will have won't be much,  but it might be enough to just save my ass, because that's the way things are going now!

These bastards are trying to clean everyone out, and its hard to know, when you don't know. Thanks again man!

Mon, 05/12/2014 - 18:56 | 4752610 I Write Code
I Write Code's picture

That's ten gold versus 600 silver, just sayin'.

And a gold coin is barely half the size for the same one ounce weight.

Mon, 05/12/2014 - 20:22 | 4752900 smoothie
smoothie's picture

OK sorry man I didn't actually work out the math

I've been learning a lot since I came on this site and its all good advice, well taken.

I figure that silver will have the biggest profit, but I don't feel that it will be as easy to move or cash in if it came to that, if someone sees a Britannia they know instantly what it is, and its hard to argue with that, because both parties are on the same page!

I'm not sure I would be as confident in barter with silver, tho I take the point the as "actual" currency it might be better since it represents a smaller denomination, and presents less of a mugging factor if aomeone knew you had it on your person.

I'm gonna make another move on silver when I am able to, I figure that the fiat is actually already worthless, for the following reasons, sure i can spend it, mostly electronically in the UK, but a chocolate bar can only get so small before the price has to start going "up", and as a manufacturer you can't hide from that!

Also I feel with the new legislation I'm possibly only a step away from not being able to really on that electronic shit injabe saved decause it could be confiscated without warning, forcing me to move instantly to debt!  Fuck that!

Also its all tracked I can't do a single thing that won't be logged and analysed, but there are other electronic means that might emerge as an alternative, and may become a liquid swap for gold silver, or anything you can lay your hands on, and if the satellite system gets its finger out then it would be extremely difficult to knock it out even if the mining stopped!

Mon, 05/12/2014 - 16:34 | 4752171 NoWayJose
NoWayJose's picture

$1215 or lower?  Let's get there together, BofA.  I'll take all you want to sell me at $1220 and you can leverage that $5 paper profit up as many times as you want...

Mon, 05/12/2014 - 16:35 | 4752175 monopoly
monopoly's picture

And this is the bank that bought that ever profitable Merrill Lynch. I see. 

Mon, 05/12/2014 - 16:36 | 4752178 kchrisc
kchrisc's picture

Translation: "Sell to us the last remnant of your economic freedom."

Next thing you know they'll be offering to buy my weapons. Oh wait...

Mon, 05/12/2014 - 16:37 | 4752182 beegle
beegle's picture

who is listening anymore ?? the asians dont give a shit about thse thiefs , or what they may think about gold , and in the west everybody has been raped already ... so , whats the point , just an excuse to sell another half a billion worth of comex contracts 15 minutes after the close ?? i think so ... yeah , thats it ...

Tue, 05/13/2014 - 08:01 | 4754005 ltsgt1
ltsgt1's picture

Many Americans don't know they have already been raped. They are quite happy with their gain in their IRA accounts.

Mon, 05/12/2014 - 16:44 | 4752208 Bemused Observer
Bemused Observer's picture

BOA has a better chance of seeing God than they do of seeing my gold.

You see, BOA, I don't buy it to 'trade'. I really don't give a rat's ass what the daily price is. I don't care if it goes to 10 dollars...it won't be a loss to me because I'm not selling it.

But nice try.

Mon, 05/12/2014 - 16:55 | 4752254 Never One Roach
Never One Roach's picture

Is there an APP for that?

Mon, 05/12/2014 - 17:51 | 4752430 indmotor
indmotor's picture

When the 'powers that be' lose the PM manipulations, this is what will happen.

They will set a baseline of say $20.00 for silver on june 1st 20?? Any silver sold after that date will be 'profit' taxed on anything over $20.00 baseline.

So if You have one ounce silver and it is worth $50.00 dollars You will have to pay a profit tax on $30.00 dollars.

Now I am not sure of the exact amount the New Tax will be, although I hear it is going to be in the 39 to 46% range.

They will effectively be cutting Your PM hoards in half.

Either way the Federal Government wins.

Mon, 05/12/2014 - 18:48 | 4752591 chubbar
chubbar's picture

Best of luck collecting that tax. Looks like bartering in the black market will flourish.

Mon, 05/12/2014 - 20:30 | 4752919 smoothie
smoothie's picture

Oh yeah Mr taxman who just destroyed the western world I just bough an AK with gold, please tax me for that, lock me the fuck up while you are at it, for owning an AK.

Tue, 05/13/2014 - 07:56 | 4753999 ltsgt1
ltsgt1's picture

Joe 6 pack turns Bundy.

Tue, 05/13/2014 - 07:54 | 4753995 ltsgt1
ltsgt1's picture

If the government did that, it's an open admission to the rest of the world that the dollar is finished. When that happen, the price doesn't really matter anymore in term of anything dollar denominated. Ones would be foolish to barter with their PMs for any amount of dollar unless they want to start a fire.

Mon, 05/12/2014 - 19:01 | 4752627 RaceToTheBottom
RaceToTheBottom's picture

Prepare for one more PM downdraft.  That is when you mortgage your wife and buy more.  IMHO.

Mon, 05/12/2014 - 19:18 | 4752687 Atlas Crapped
Atlas Crapped's picture

Sounds like a weak hand shakedown to me. Somebody has to supply the eastward flow ...

Mon, 05/12/2014 - 21:44 | 4753135 short screwed
short screwed's picture

OMG gold may drop to 1215! Should I just bring my gold down to the nearest BofA branch, or should I schedule a pick up.

Tue, 05/13/2014 - 05:36 | 4753853 The wheels on t...
The wheels on the bus are going to fall off's picture

I really dont see a major knockdown happening in Silver and Gold anymore this year, i suspect Gold will go close to $1400 by year end and Silver over $22, the following year it will increase further in percentage terms.

Once India officially gets on board in the next few months, then gold will have some good resistance. It is likely that other countries will start increasing there purchases as well (probably in the East) note that China is still on track for 2000 tonnes this year.

The 'analysists' are also calling for Oil to be $100 this year and then $90 next year working its way down further and further. Again i think this is bullshit and the fundamentals just dont work out. The world is in an economy that depends on economic growth, if oil / gas demand increases to meet this growth then how the fuck does it go down, particularly how the number of oil discoveries are reducing year on year.

If energy increases, everything increases and the manipulation of PM's can only go so far before the reality rats it out.

All Fiat money goes to its intrinsic value of 0 through debasement and monetary inflation, this is 100% guaranteed through history, the PM's will therefore (subject to the extent of manipulation) go higher but only because the dollar is falling and will continue to fall.

Tue, 05/13/2014 - 07:42 | 4753966 ltsgt1
ltsgt1's picture

Fundamentals dictate that gold price has to be over $1350 in order to maintain 2500 tons a year production. I strongly suspect the miners will not be able to satisfy demand from the Far East for long If price remained sluggish at $1200 to $1300 range.

At that price range, the miners are barely keeping their heads above water and expenditure for exploration will likely be miminum.

However, ones should not let their guard down since we are dealing with psychopaths in this market and I think they are desparate to accumulate more PMs before India gets back on board - btw, I still haven't figured out why Putin hasn't crushed the bullion banks by buying tons of gold. I'm preparing myself for one last major beat down to $900 to $1000 range. I recommend cost averaging down at around $1050 and back up the truck at $900.

Tue, 05/13/2014 - 08:37 | 4754058 Quinvarius
Quinvarius's picture

They didn't draw their trend line correctly.  Years of experience says this:  As the trend gets steeper, you redraw based on that steepness.  Once it gets through the steepest one of the major move, you need to reverse your mindset.  The instrument will almost always bust through every less steep trend line after the important one strong immediate one is broken.  Gold broke through its steepest one a year ago, indicating the momo was gone from the short side.  That was when it put in a double bottom, and started going through less steep pre-existing tends.  The one they are using is so old it is not even relevant.  It already has several broken ones under its belt proving momo.  It is how you recognize blow off tops and capitulations. 

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