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Crude Enters Bear Market As Gold Posts Longest Winning Streak In 7 Months
WTI Crude oil has now entered a bear market, down over 20% from its June highs (and energy stocks are not off the lows) edging closer and closer to 28 month lows. Meanwhile, gold prices have risen for 4 days in a row - the longest winning streak in 7 months...
Oil in a bear market...
With Brent-WTI back at 3-year lows..
And gold is up 4 dasys in a row - the last time it did this was February and it continued to rise to 2014 highs...
Charts: Bloomberg
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When things do not go up, they frequently go down.
Kinda sad when 4 up-days in a row is the best performance in 7 months...
what i dont get is if gold is up 1.5%, why is GDXJ down 5%, and SIL is down 6%?
People love to hammer the miners. Better to just stack the phys.
Because Paper Gold is not really Physical Gold.
Miners are not 'paper gold'.
Ya .... most Miners are even worse (more risky) than holding paper Gold.
when is the next Fed minutes, meeting, statement, or something? anything? even a dovish queef out of Yellen? please!
Volatility seems to be good at least for FX brokers like this one which hit record volume in September.
im certain Greenskeeper Carl is well aware that paper gold is not phyz gold. His is a faie question, though - lower oil means lower production costs for the miners, and if this is accompanied by a rise in gold, its madness that the miners stawx tank
it's a giant FU from Goldman, JPM etc... thought you were gonna get lucky today>?
Nah, i didnt think i was gonna get lucky. I know miners arent real physical and its just paper and all that stuff. Ive gotten my ass kicked on them, but they will shine one day. Gold may very well drop further, dragging miners down with them too. They are a small part of my account. A pretty good chunk is in SPXS right now, and I have also lost money there. They can't jawbone this market higher forever, this time is never different, and by every real measure we are basically in a depression. Reality will win eventually
usually, $cdnx leads gdxj. the following charts indicate that gdxj will be probably going down further.
http://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=0&mn=8&dy=0&id=p22113609234
The Fed is selling gold and silver stocks with a vengence to give everyone second thoughts about putting any money into the miners after their big runup yesterday.
http://investmentresearchdynamics.com/the-u-s-governments-war-on-gold-it...
very credible explanation about the timing of the feds war on gold
Pulling out every possible trick in the magic box to punish Vlad.
I'm not stating oil was or was not overvalued/undervalued based on various factors (though I'd opine it was dramatically overpriced based on both the current level of real demand as well as the likely demand trend given a very sickly global economy), but the manipulation of oil markets has taken on a geopolitical priority as a result of the new Cold War brewing with Russia vis-a-vis Ukraine, Syria, etc.
Wasn't there a twilight zone about how useless gold would be in the future. I don't think anyone in the west cares about gold anymore they have the magic money fairys at the Fed.
Clap your hands for Tinkerbell.
Yep. It was called "The Rip Van Winkle Caper"
Thank you. Now i know what i will watch tonight.
It is not a happy ending story for us stackers.
Back in real life, I am still waiting for some joy from my metals purchases. I am content for now to fondle it and dream of happier days.
Buh bye, Halcon Resources!
Sorry Vlad. You don't like CIA and Rothschild control and won't do what we say, then we manipulate oil futures down. Oh.... and MT elections coming. Kill two birds with one stone.
that is genius, i only hope brics move quicker with gold backing etc
theyre gonna have to get their shit together if they wanna cash in when china flips the switch
Or as Ricky would say 'Get 2 birds stoned at once!'
Unless and until CB's go batshit crazy, gold remains flat to down in this "deflationary" environment....in my opinion.
Agreed.
I will buy more at $1100 only because I lost my other PMs in an accident.
Margin calls will force it lower prolly.
If you look at history; gold does better during deflations:
http://globaleconomicanalysis.blogspot.com/2007/02/is-gold-inflation-hedge.html
It's not what the 'price' is; it's the purchasing power...
i agree pool, but if asset prices are falling in terms of currency, gold will fall commensurately. I mean to say - if currency debotchment DOES NOT occur, then gold remains flat to down is all.
Correct. But most such falls are temporary (though 'temporary' may mean several years).
In the long run, expect gold to maintain, if not increase, its purchasing power.
The interesting thing about the article by Mish I linked to, is that he penned it in 2007 - just before we had the great deflation/recession.
Remember what happened to gold and bonds over the next 4 years?
I suspect history will soon be humming a catchy little tune that kinda rhymes with the one from back then...
[That's exactly why I've been (repeatedly) saying it is now October, 2007....]
I totally agree pool. Gold's value (purchasing power for shit that is real), holds pretty constant over time, all else equal. If, however, currency prices for "stuff" falls then so too will gold because it is a competing store of value - but - will rise in an inflationary environment. there are other things of course, that affect the price of gold of course - production costs etc., but I am simply stating the obvious - its a currency hedge. fuck with the currency - gold rises. steward your currency with interest rates greater than the rate of inflation - gold falls.
Where's HH? I want to ask him if the drop in oil price will hurt the Houston economy. I lived there in the past and remember when the downtwon was pretty crappy during a recession and very low oil price. I see now Houston is Big Boom Town (in fact, a very nice place) but wonder at what price (if any) does contraction there begin?
I read they also have a booming hospital/medical community so they may not be so dependent on oil anymore.
[anyone else from the Big H?]
They went batshit crazy six years ago.
Somebody call somebody. This will not stand.
4 days is the longest streak in 7 months? lol
Just goes to show the extent of the manipulation!
$ilver 8itchez
Just goes to show people need dollars and other government decree more so then a soft metal that dosn't rust or tarnish.
As long as what you need is a decree of crazy old men you will value that decree over anything else.
About those Bakken oil fields , looks they are going to need some subsidies. Quick, call your piad off congress critter and tell them to call a vote.
Don't worry they'll get whatever they need including National Guard units to protect them from the angry mob.
Never believe that. Ever because it simply not true. TPTB are weak crazy old men who can't even keep the lies streight anymore. Don't you worry about them, it is they who must worry about everyone else, so let them do the worrying. Not you.
... and yet the miners get hammered.
CDE getting crushed. Not selling!
Yeah. Paper metals are still in a downtrend.
WTI crude crashing with all the Geo-political clashes is a bellwether.
Not to mention the flight to safety in bonds.
Will FNMA/FMCC be bought outright by the FED?
What QE dream can Yellen imagine? Student Loan Default Swaps?
Interesting times...
We're Sitting on 10 Billion Barrels of Oil! OK, Two
http://www.bloomberg.com/news/2014-10-09/ceos-tout-reserves-of-oil-gas-r...
"Lee Tillman, chief executive officer of Marathon Oil Corp., told investors last month that the company was sitting on the equivalent of 4.3 billion barrels in its U.S. shale acreage. That number was 5.5 times higher than the one Marathon reported to federal regulators."
He forgot the /sarc tag?
He forgot the /sarc tag?
Aong with the nonexistant pipeline infrastructure and cost of production to sell to an EU that is already in "sink" mode to the bottom!
Russia of course has that infrastructure in place and the oil they sell ain't "shale"!
Fixed it!
Context on the oil price right now.
Lining this up with the frequent visit(s) by the Assistant Secretary of State "witch on a broom" and we're getting closer every day to an all out war!
fuel efficient new vehicle sales NEEDS high gas prices (yeah, i know ... refinery product different than crude) to thrive
Silver now LOD
Gold and Oil typically move in the same direction, as I was told many years ago by a prominent gold jeweler. Gold at $1200 should be seen as a bargain.
Gold at $2000 is a bargain. The only difference with $1200 is that you can buy more at $1200
Metals insurance only pays out when ISDA burns and miners are being nationalized. In physical form that is.
You will enter barter town with shaky hands. But that's always better than stay outside, in the cold.
gold is the disaster trade. in this case it is the ebola vix. seems there are a lot of people beginning to freak out a bit.
Damn 4 day winning streak ??? When did Gold become the Tampa Bay Bucaneers.
I play this song every time the market gets double fucked:
https://www.youtube.com/watch?v=q9xNhcvZ6UI
we need a longer and deeper downturn to forge a divisive break from the paper.
only then will there be a move to freegold and more opportunity for evil hoarders
btfd.
I thought we were trading blood for oil? I'm still spending way over $3 a gallon for gas, so was Mark Ruffalo lying or have we not killed enough Americans?
and for the grand finale...
i give u the Globex drop in Silver after trading sideways all fucking day ....
http://www.kitco.com/charts/livesilver.html
yeah right....
Energy future:
http://www.extremetech.com/extreme/191754-cold-fusion-reactor-verified-b...
Interesting, i thought the temp had to get near or at zero and made cold fusion impractical unless in space. If this holds i have a lot of rethinking to do.
How dare you have only two upvotes?
ZH GET UP AND READ THIS!
The way things are going, Gartmann will probably announce tomorrow he's going all in on gold and it will drop -$500 over nite.
This made me smile, i was thinking Gartmann told someone he was doing the opposite thats why gold went up.
As the smart money exits stawks, leaving only the dumb money to languish before vaporising completely in due course. Shiny prospects for gold ahead.
that long winning streak in gold made you about 35 bucks from low to recent high ;-)....(I own gold before I get beat up on here)
If i was to own a 2011 gold buffalo it would not have gone anyware near the purchasing price. But that 35 dollars is only for that etf or other electronic form of payment.
Time for some naked shorts!
Meanwhile, gold and silver stocks have dropped by over 6% today, more than giving up all of yesterday's gains. Guess higher gold prices must be bad for gold miners.
If your selling gold at below production cost because a man in black told you to what do you think that price would mean for that company. Documents don't sweat because you put a loaded gun to them.
You are correct of course, but I believe it's much more subtle than that. If you don't go along, you might just find that your mining permits have suddenly acquired an invalid status. Heard a rumor that a silver company attempted to withhold silver from the market, and suddenly their permits for a new silver mine in Nevada mysteriously disappeared.
Putin Punishment.
Russia's income is too dependent on energy sources which makes it easier to target and punish Putin, too many eggs in one basket. Putin needs diversification if he is to survive politically. In the end cash (gold) is always king and there are many in mother Russia who are being hurt by Putin's bravado.
I disagree Putin could care less, he is selling to China at set prices. China may not like it so much but then they have a lot of T-bills to sell and need to sell into riseing prices rather then falling ones.
Its easy to sell when prices go up not so easy to sell into a falling market.
There is no such contract as a 'set price', the amount paid changes depending on the market difference.
China would never have a no cap contract, they would tell Russia to stuff it and buy elsewhere.
Plenty of competition.
But the miners are still getting hammered?
Systemic effects :
http://andreswhy.blogspot.com/2014/10/should-you-buy-gold.html
http://andreswhy.blogspot.com/2008/12/financial-crisis-dec-01-2008-petro...
The optimal survival strategy is to buy a vertically integrated , landed estate .(Latifundia)
A proven strategy over millennia .
See http://andreswhy.blogspot.com/2012/03/monasteries.html