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Citi Predicts Gold At $3400 In "The Next Two Years", Potential For Move As High As $6000

Tyler Durden's picture




 

Following today's margin call anticipating, liquidation-driven rout in gold, the weak hands are, as the saying goes, puking up blood. Which may not be a bad thing - after all, sometimes a catharsis is needed to get people away from potentially toxic paper exposure which very likely has been hypothecated repeatedly via the same channels we discussed last week when exposing the MF Global-HSBC "commingled gold" lawsuit. But what about the future? Well, nobody can ever predict it, but at least we can sometimes look at charts in an attempt to glean a pattern. Which is why we present the just released slide deck from Citi's FX Technicals group titled "The 12 Chart of Christmas" which has some blockbuster predictions about the coming year, chief among them is without doubt the firm's outlook on gold which they see at $2400 in the second half of 2012, and moving "toward $3400 over the next 2 years or so." So for those looking at today's price action, consider it an opportunity to roll out of paper exposure and into gold, because the more deflationary the environment gets, the more eager the central planning cabal will be to add a zero (which in our day and age of primarily electronic money can be done with the flip of a switch) to the end of every worthless piece of monetary equivalent paper in circulation. And that's a 100% certainty.

From Citi:

While we remain cautious on Gold in the near term and believe that we could correct lower towards $1,600 and possibly re-test the $1,550 area we continue to believe that the bull market remains intact. As with the Equity market we believe that 2012 may be reminiscent of 1978 when Gold rallied nearly 50% off the 1977 close. Such a move would likely put Gold in the $2,300-2,400 area in the 2nd half of 2012.

 

On a longer term basis we expect even higher levels and target a move towards $3,400 over the next 2 years or so. We are not yet on board with the idea of a move with the same magnitude as seen in 1970-1980 when the last spike in Dec 1979-Jan 1980 saw Gold almost double in price as Russia invaded Afghanistan. Such a dynamic would suggest a move above $6,000 but we prefer to take a more conservative stance and look for a move similar to that seen without that final event driven push at the high which was a “blowout top” in Jan. 1980.

Many more charts coming shortly....

 

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Wed, 12/14/2011 - 16:29 | 1980198 Magnix
Magnix's picture

I heard that many times before! BS!

Wed, 12/14/2011 - 16:33 | 1980212 strannick
strannick's picture

I heard it many times before too. As in gold's going to $700! 1000! 1500! 1625!, and to hear each of these predictions lambasted as the height of lunacy. Roubini will soon be so tweeted by goldbugs he will turn yellow and feathery with rage. So yeah, gold is going nowhere but up

Wed, 12/14/2011 - 16:36 | 1980244 Duck
Duck's picture

Dow 36,000!

Wed, 12/14/2011 - 16:40 | 1980253 Pladizow
Pladizow's picture

Suspicious timing - especially if we apply the Tyler's's's's's's' Goldman Prop desk theory!?

Wed, 12/14/2011 - 16:58 | 1980373 trav7777
trav7777's picture

well paper has not decoupled from physical and silverbugz got MONKEYTORCHED today

Wed, 12/14/2011 - 17:01 | 1980392 Killtruck
Killtruck's picture

I'm not sure what that is but it sounds bad. My stacks appear unfazed, however, and are just as shiny as they were yesterday.

Wed, 12/14/2011 - 17:06 | 1980426 bob_dabolina
bob_dabolina's picture

But an ounce of silver buys less than it did last week. 

Or am I wrong on that?

If you're looking for something shiny may I suggest silica?

Wed, 12/14/2011 - 17:14 | 1980464 mrgneiss
mrgneiss's picture

...... why don't you try pyrite, otherwise known as trolls gold?

Wed, 12/14/2011 - 17:20 | 1980495 MillionDollarBonus_
MillionDollarBonus_'s picture

I have composed a draft letter to the white house expressing my concerns about this slow recovery. I just wanted to run it past you so you can tell me what you think:

"Dear Mr President,

I am writing to you as a concerned citizen. Despite my unwavering support for your administration and the values it stands for, I am increasingly agitated about the sluggish pace of this economic recovery.
I am worried that congress is cutting spending too much and too fast and that this is damaging economic growth and I strongly suggest that without further fiscal stimulus we could be headed for a double dip recession. What is the government doing to promote growth and create jobs? With due respect, I want answers and will not be satisfied with smooth political talk. 

Yours Sincerely,

....."

Just wanted to run this by you guys and see of you had any suggestions. I know it's pretty harsh but I'm really concerned that our government simply isn't doing enough to support this fragile recovery.

Wed, 12/14/2011 - 17:23 | 1980503 redpill
redpill's picture

Coordinated Chicago/Shanghai margin hike in 5, 4, 3.....

 

Wed, 12/14/2011 - 17:44 | 1980595 gmrpeabody
gmrpeabody's picture

"I know it's pretty harsh but I'm really concerned that our government simply isn't doing enough to support this fragile recovery."

Yes..., that is a bit too harsh. BTW.., I think you better get that thermometer up your butt quick, cause you are very sick!

 

Wed, 12/14/2011 - 17:48 | 1980618 Pladizow
Pladizow's picture

Put a stamp on it!

Wed, 12/14/2011 - 17:55 | 1980641 WonderDawg
WonderDawg's picture

This might be MDB's best post yet. Bravo, sir! Fuck, I love subtle sarcasm.

Wed, 12/14/2011 - 18:19 | 1980737 BaBaBouy
BaBaBouy's picture

PILE IN, Bitchez ...

Wed, 12/14/2011 - 20:15 | 1981157 Troll Magnet
Troll Magnet's picture

DO NOT SEND THAT LETTER, DUDE!!!

i wouldn't want you to get assassinated or permanently detained.  never upset the king, dude.  never.

Wed, 12/14/2011 - 20:41 | 1981292 PersonalRespons...
PersonalResponsibility's picture

ssssshhhhhhhh!

Wed, 12/14/2011 - 18:12 | 1980705 Papasmurf
Papasmurf's picture

Lick it

Wed, 12/14/2011 - 18:58 | 1980873 Overflow-admin
Overflow-admin's picture

 

 

Linda Green
Vice President
Mortgage Electronic Registration System

Wed, 12/14/2011 - 17:40 | 1980578 RichardENixon
RichardENixon's picture

I suggest you throw in a line about being promised dollars dropped from helicopters and not standing for anything less.

Wed, 12/14/2011 - 18:00 | 1980659 Schmuck Raker
Schmuck Raker's picture

The White House will be more responsive if you sign it Million Dollar Contributor.

Wed, 12/14/2011 - 18:15 | 1980726 topcallingtroll
topcallingtroll's picture

You should recommend he continue to try to raise taxes on the rich cuz they just hoard money and keep it out of circulation, thus harming the economy.

A committee of government experts should be formed to tell us how best to spend and invest these new tax monies.

Wed, 12/14/2011 - 18:07 | 1980693 WonderDawg
WonderDawg's picture

You forgot the part about "suck my turgid member". You can put that as the P.S.

Wed, 12/14/2011 - 18:15 | 1980725 Freddie
Freddie's picture

The opening is wrong.  Start with "Dear Son of Allah."  Now that is better.

Wed, 12/14/2011 - 18:31 | 1980770 TheFourthStooge-ing
TheFourthStooge-ing's picture

I found a video of Freddie on youtube:

http://www.youtube.com/watch?v=SBHEKFxPb7c

 

Wed, 12/14/2011 - 19:33 | 1981002 peekcrackers
peekcrackers's picture

How about " dear son of bitch  allah peanut butter sandwitch !

Wed, 12/14/2011 - 19:01 | 1980885 goldfish1
goldfish1's picture

it's pretty harsh

Very good.

Wed, 12/14/2011 - 19:04 | 1980900 txsilverbug
txsilverbug's picture

"Despite my unwavering support for your administration and the values it stands for"

Take this out completely.

"I am increasingly agitated about the sluggish pace of this economic recovery."

revised to:

"Your a  fucking tool who can't even tie his own shoes, your recovery sucks donkey ass"

 

"What is the government doing to promote growth and create jobs? With due respect, I want answers and will not be satisfied with smooth political talk. "

revised to:

"It is not the governments job to promote growth and create jobs. Let the free market decide, not your little fucking pea brain."

 

Add this:

"When Moochelle sucks your dick, does she swallow?  Ive always wondered"

 

Might also write that letter in a green crayon on construction paper, I hear he has a hard time reading big boy pen and paper.

 

 

 

Wed, 12/14/2011 - 20:19 | 1981174 Troll Magnet
Troll Magnet's picture

oh, duuuuuuuuude!  you are SO gonna be assassinated now!  or permanently detained. 

Thu, 12/15/2011 - 15:21 | 1984329 mkkby
mkkby's picture

Reply - none.  No need since 99.9 ARE satisfied with smooth or even stupid political talk.

Wed, 12/14/2011 - 17:15 | 1980469 JW n FL
JW n FL's picture

 

 

so does gold.

platinum $1,400(ish).. and going down further?

BEEP.. BEEP.. BEEP.. BEEP.. <--- that is my truck driver backing up.

You buy Paper anything.. with the World Credit Markets Freezing Up! and I will buy metal.. see ya in 6 months.. lets compare K-1's!

Wed, 12/14/2011 - 17:21 | 1980479 bob_dabolina
bob_dabolina's picture

The largest holders of gold are among banks and European sovereign nations. 

While you're backing the truck up, they are rolling you over.

I said this was going to happen when gold was at 1,900 but no one here wanted to listen and instead decided to ad hominem attack me. 

He who laughs last laughs best bitchez. ha. ha.

Wed, 12/14/2011 - 17:23 | 1980501 mrgneiss
mrgneiss's picture

If you think deflation is here to stay, you'd better check your history.Deflation or inflation/hypyerinflation it is just a policy choice.

21 countries have experienced hyperinflation in just the last 25 years:

http://bit.ly/sSi4Xr

These countries have experienced severe deflation over the past 50 years:

Japan.

Why does the government hate deflation and lower prices?

Because it lowers their tax revenues, it gives private citizens back their purchasing power (makes money more valuable to hold and save and invest) in their money and it lowers asset prices and other other consumer prices for goods and services we need and want.

Deflation does not allow governments to use inflation as a tax to steal our purchasing power (inflation is 100% pure government policy and is really nothing but an invisible, hidden government tax) and it lowers the taxes they collect on normal things like wages, property tax, etc.

This is one of the major reasons why there is so much effort by the Fed and Federal Government to try to re-inflate the housing bubble and to create inflation.

It’s in the government’s interests to create inflation (not too much inflation at once or too many people will wake up and realize and also dump the paper, fiat currency).

The bottom line is modern governments and central bankers have not allowed deflation to occur without first trying to interfere heavily in a country’s economy and markets and to first create inflation.

History is strewn with countless examples of interventionist policy by governments where the free market was not allowed to heal itself and purge itself of the bad investments and misuse of capital.

So if you believe deflation will prevail as Bob dabolina does, sure, sell your precious metals. If you believe as I do that printing to infinity will occur, hold onto them and buy on the dips.

Wed, 12/14/2011 - 17:33 | 1980520 bob_dabolina
bob_dabolina's picture

Baby...

Bob_D told you to sell that when Gold was @ 1,900 and silver hitting 49. 

Don't get it confused.

http://tradeonfire.blogspot.com/2011/09/gold-linear-regression.html

http://tradeonfire.blogspot.com/2011/09/profile-on-gld.html

Wed, 12/14/2011 - 17:49 | 1980623 mrgneiss
mrgneiss's picture

Silver - the only commodity in the world still BELOW it's 1980 inflation adjusted and nominal high - I'm not worried.

Gold - just check out this chart for India - the story is similar for China and most other developing nations:

http://i51.tinypic.com/2hxqc9h.png

Dollar vs gold long term chart that even a trained monkey could extrapolate from:

http://goldratefortoday.org/30-year-gold-chart-dollar-gram/

long term dollar purchasing power:

http://observationsandnotes.blogspot.com/2011/04/100-year-declining-value-of-us-dollar.html

 

Wed, 12/14/2011 - 17:51 | 1980630 bob_dabolina
bob_dabolina's picture

Do whatever you want. It's your moolah.

 

Wed, 12/14/2011 - 23:20 | 1981920 tarsubil
tarsubil's picture

You were correct in calmly calling the short term tops in gold and silver. But next time you could be wrong and sooner or later you will be wrong and you will be selling your life boat for a pair of cement shoes. Be careful.

Wed, 12/14/2011 - 18:11 | 1980698 BLOTTO
BLOTTO's picture

'dabolina' = 'jealous'

Its true! i read and studied this behaviour in highschool. What else is it - unless your a troll.

Anyone spending this much time on a website (and not adding any value/info) - and its not porn or poker or sports - is a troll or jealous.

 

Wed, 12/14/2011 - 18:17 | 1980721 bob_dabolina
bob_dabolina's picture

The key to your comment is highschool.  You also spelled 'your' when it should be "you're"

What am I jealous of? Losing money? 

I wish I lost as much as the people who took the opposite side of my trades. Good thesis....good luck in college.

Learn grammar/spelling before you start criticizing people. 

Wed, 12/14/2011 - 18:22 | 1980748 topcallingtroll
topcallingtroll's picture

I think bob adds something. We all know the gold to da moon theory. Good to hear some different versions. I documented buysin zsl on this site one week before the great collapse. Best trade i ever made short term.

I am seriously considering buying gold at support, but gold hates me and tries to hurt me now, so I am not sure if I should.

Wed, 12/14/2011 - 18:29 | 1980766 catacl1sm
catacl1sm's picture

I think you guys are confusing a long-term view of gold and its inherent value in case of a SHTF scenario. Bob_d is looking at it from a trading perspective. From a TEOTWAWKI perspective, hanging on to your gold for dear life is the best move. From a purely trading perspective (short-term) Bob_d is the winner. Apples to apples, dust to dust, bitchez.

Wed, 12/14/2011 - 19:29 | 1980985 teolawki
teolawki's picture

"From a TEOTWAWKI perspective, hanging on to your gold for dear life is the best move"

From a TEOLAWKI perspective, hanging on to your gold for dear life is the best move.

There...fixed it for ya!

Wed, 12/14/2011 - 19:31 | 1981000 FEDbuster
FEDbuster's picture

Still wonder what the "price" discovery method would be in an economic collapse.  Will your one oz. gold eagle buy the whole cow or just a 5 lb. roast.  In Cormac McCarthy's book "The Road" (granted the worst case SHTF scenario) gold has no value to the survivors.  Food, weapons, clothing, etc... become the valuable items.  I am still reading "When Money Dies" which provides insight into post WW1 Europe.  They were trading gold watches for sacks of potatoes, grand pianos for sacks of flour, etc...  So who knows what anything will be worth?  I know, my family needs water, food and shelter to survive, so I will keep concentrating on my ability to provide those items in our uncertain future.

Wed, 12/14/2011 - 21:40 | 1981525 FMR Bankster
FMR Bankster's picture

Depends on your resources really. First food, water, shelter, things to trade, firearms, and stay close to family. Once you have those gold and silver will hold value for after things are reestablished. Recent breakdown in Bosnia (1992-95) says silver, gold, are not the first things to own.

Wed, 12/14/2011 - 19:06 | 1980905 peekcrackers
peekcrackers's picture

for the papper lovers of the world .. if you dont want Au AG ... at least buy some iron and Led

Wed, 12/14/2011 - 17:47 | 1980611 BLOTTO
BLOTTO's picture

They can't roll over our will.

Wed, 12/14/2011 - 17:53 | 1980635 bob_dabolina
bob_dabolina's picture

Tell that to the Enron investors.

Wed, 12/14/2011 - 18:01 | 1980665 tmosley
tmosley's picture

Can't tell the difference between silver and paper.  This is why you will come out of this with nothing.

Counterparty risk, bitches.

Wed, 12/14/2011 - 18:06 | 1980688 bob_dabolina
bob_dabolina's picture

Unfortunately the counter part risk is society. 

I have guns. You have silver. Who wins? 

Wed, 12/14/2011 - 18:14 | 1980708 akak
akak's picture

So you admit that you would, or will, resort to brute force and theft in the case of a financial collapse?

You are pathetic.

Wed, 12/14/2011 - 18:25 | 1980753 Freddie
Freddie's picture

This guy is a troll.  However, when things start falling apart - you will be shocked at how people will behave.  If you have a wife, daughters, sisters, nieces or aunts - make sure they are armd and know how to use a gun.

People will just be taking things like animals if things fall apart.  People voted for this in Nov. 2008.  

Wed, 12/14/2011 - 18:44 | 1980821 TheFourthStooge-ing
TheFourthStooge-ing's picture

You know you've fucked up when even Freddie laughs at your ignorance.

 

Wed, 12/14/2011 - 19:10 | 1980921 peekcrackers
peekcrackers's picture

Akak +1

This is the same guy that fights for a $1.49 towel @ wal mart on black fri.

Just as  long you have the brain.... tools like that kill each other each other off.

Wed, 12/14/2011 - 18:13 | 1980714 tmosley
tmosley's picture

So you are saying human nature will change?

And what, EXACTLY, makes you think that silver ownership and gun ownership are mutually exclusive?

Wed, 12/14/2011 - 18:23 | 1980750 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

I can assure you that they are not!

Wed, 12/14/2011 - 18:37 | 1980796 Sizzurp
Sizzurp's picture

I've heard the average person, in a situation of complete lawlessness, will go feral in about 48-72 hours.  It's something to think about if you come across other folks in those circumstances.

Wed, 12/14/2011 - 19:19 | 1980953 trav7777
trav7777's picture

You've heard that?  You're an idiot.

Wed, 12/14/2011 - 21:34 | 1981513 XenoFrog
XenoFrog's picture

It took only a few hours for people to lose their shit when the lights went out in NY. 48-72 hours would be very generous.

Wed, 12/14/2011 - 23:57 | 1982034 trav7777
trav7777's picture

do you mean people or black people?

Bcus NY when the lights went out was pretty freakin calm.  It will take less than 48 minutes for black people to go apeshit when the law is turned off

Thu, 12/15/2011 - 00:28 | 1982105 tmosley
tmosley's picture

Your exahlted Japs rioted and stormed all manner of stores including breweries to steal shit.

But I guess the Japs just "find" stuff when they "need" it, whereas niggers "steal" anything anytime.

Wed, 12/14/2011 - 19:48 | 1981053 dark pools of soros
dark pools of soros's picture

i think it is more like 4 minutes during a towel sale

Wed, 12/14/2011 - 19:01 | 1980884 kinganuthin
kinganuthin's picture

I have a antique shotgun with beautiful gold inlay.. My fighting guns, however, are rather utilitarian.

Wed, 12/14/2011 - 21:52 | 1981569 XenoFrog
XenoFrog's picture

Since you've never even held a gun, I'd bet on my silver.

Wed, 12/14/2011 - 21:32 | 1981504 XenoFrog
XenoFrog's picture

Gold and Silver will never be worth nothing. You can pass all the laws you want to try and destroy it, but my neighbor's wife will still want some of the shiny stuff in exchange for some eggs and milk.

Wed, 12/14/2011 - 18:56 | 1980867 fourchan
fourchan's picture

the last has only just begun, hold your premature chuclkes.

Wed, 12/14/2011 - 18:01 | 1980662 navy62802
navy62802's picture

I don't know, why don't you go ask all the people who sold theirs?

Thu, 12/15/2011 - 00:50 | 1982146 bbbilly1326
bbbilly1326's picture

@dob_bamolina:  "But an ounce of silver buys less than it did last week. "

so does a dollar..........

Thu, 12/15/2011 - 04:17 | 1982401 Cerna
Cerna's picture

Silver went down because of MFGlobal lost its silver

Wed, 12/14/2011 - 17:17 | 1980483 Hmm...
Hmm...'s picture

Silver and gold may be just as shiny as they were last week, but they are worth less.  Just like my house.  It protects me from the elements just as much as it did in 2007, but now it's worth less.

I'm personally not a weak handed gold investor... I'm a weak minded gold investor.  I may not need to puke, but I definitely am licking some wounds due to losses... at least on paper.  I'm not weak handed because I won't sell anytime soon... (actually, I've *never* sold gold in my life)... and in fact I'll probably buy again in the next 6-12 months...  but 5% moves in a day are hard on this weak minded fool's brain.

I don't really believe in technical analysis, but I do think that 5% daily moves can be psychologically hard on investors...  It'll be interesting if we see a major snap back in the next few weeks, or a grinding up down volatile gold price for a while...

O to have a crystal ball to discover when Ben is going to print...  or at least when the paper/physical relationship was going to break!

Wed, 12/14/2011 - 17:45 | 1980602 pods
pods's picture

If you are in physical, then hide is somewhere safe and go fishing.

Just lay low and relax.  Margin calls all around are probably de-un-rehypothecating all sorts of stuff.

When looked at too closely, any chart can drive you crazy.  Step back and think about what is going on, and you will feel better.

Lastly, stop thinking about gold in terms of $$ or Euros, etc.  Think about it in terms of purity and weight.

pods

Wed, 12/14/2011 - 17:59 | 1980654 Oracle of Kypseli
Oracle of Kypseli's picture

One other reason is distrust of COMEX and no one wants to loose equity. Maybe they are switching to buying bullion bars directly instead of futures and wait for delivery. A la Kyle Bass  

Wed, 12/14/2011 - 19:46 | 1981045 peekcrackers
peekcrackers's picture

Pods

+1 agreed

Use the the cheesy showtime chicken rotisserie pitch " set it and foget "

for you guys that dont like fishing

Go to a strip bar with jogging pants and no undies with fist full of debit notes

if shit goes down .. it goes down

Wed, 12/14/2011 - 19:34 | 1981007 Gringo Viejo
Gringo Viejo's picture

TA is non applicable in managed/manipulated markets.

Wed, 12/14/2011 - 19:52 | 1981064 dark pools of soros
dark pools of soros's picture

'I won't sell anytime soon'  

that is your problem..  buy and sell some on the moves and you will feel much better about the situation.  I sold most of my stuff when gold was near 1900 and silver ~ 48  and bought back some when they dipped..  and so on and so on..  keep a pile you don't touch but don't treat any trade like a long term untouchable 401k only buy monkey fuck

 

Wed, 12/14/2011 - 17:03 | 1980397 JW n FL
JW n FL's picture

 

 

I am the silver bug.. I bought today.. I will buy tomorrow if it moves down again..

when should people buy Travis?

when prices are high?

and I am talking about physical NOT! Paper..

and for the record my foot stool's work as today as yesterday or the day before.

3 monster boxes stacked are a foot stool.

Wed, 12/14/2011 - 21:36 | 1981516 XenoFrog
XenoFrog's picture

I wish I was in your boat. The best I can show off is an additional 30oz today.

Wed, 12/14/2011 - 22:30 | 1981722 delacroix
delacroix's picture

my coin dealer skips the sales tax, on purchases, over$1500.  worth waiting, between paychecks

Wed, 12/14/2011 - 18:00 | 1980661 tmosley
tmosley's picture

I have yet to hear of any owners of physical gold or silver receiving margin calls.  I certainly haven't heard of any having their assets hindered through broker shenanigans.

Looks like Trav loses again, folks.  Big surprise.

Wed, 12/14/2011 - 19:00 | 1980882 pakled
pakled's picture

... haven't heard of any clawbacks on physical either....

Wed, 12/14/2011 - 19:23 | 1980965 trav7777
trav7777's picture

nah I have a giant stack of FRNs, I can buy more silver today than yesterday.

I guess in your world, that's losing.  Making money is for losers.  Maximizing your take is for losers.  Right, cliff?

Basically, people like you brand winners as losers so that YOU can feel better about yourself...because it is YOU who are really the loser.  In all things.

How much more money are you going to cost people before you do the world a service and kill yourself?

Wed, 12/14/2011 - 20:45 | 1981311 tmosley
tmosley's picture

lol, now you are on record as having a giant stack of FRNs.

My cost average for silver is $18.  Let's see if you can pick any up below that price, dumbass.

Thu, 12/15/2011 - 00:00 | 1982039 trav7777
trav7777's picture

so you're admitting you were just cheering for OTHERS to buybuybuy and "back the truck up" in the mid 40s?

You're a real piece of shit

Thu, 12/15/2011 - 00:30 | 1982106 tmosley
tmosley's picture

Interesting.  You don't know what an "average" is.

Thu, 12/15/2011 - 02:16 | 1982244 bob_dabolina
bob_dabolina's picture

If 18 is your number...you're gona' get your shit handed to you.

(friendly warning)

I told you to sell at $49...we're goin' lower on silver

Wed, 12/14/2011 - 18:20 | 1980743 CORNGUY
CORNGUY's picture

I still hate you Trav

Wed, 12/14/2011 - 18:48 | 1980837 Whalley World
Whalley World's picture

well this silver bug is loading the boat much like my cohorts who are not looking to dump physical for paper promises Dude

Wed, 12/14/2011 - 19:22 | 1980961 txsilverbug
txsilverbug's picture

You had me all the way up to the "dude" part. Dude. Agreed though, hold it and wait.  Those printers will make that metal worth more in FRN's. Im glad the PM's got hammered on margin calls today, makes it cheaper for me to buy.

Wed, 12/14/2011 - 17:05 | 1980422 mrgneiss
mrgneiss's picture

Speaking of contrarian indicators, didn't Gartman make a gold bull call in the last couple of days?  What does that make him over the past two years on gold, something like O and five hundred and thirty seven?

Wed, 12/14/2011 - 18:20 | 1980673 akak
akak's picture

What does that make him over the past two years on gold, something like O and five hundred and thirty seven?

I presume you are referring here to his IQ and his weight, respectively?

Wed, 12/14/2011 - 18:32 | 1980745 CrockettAlmanac.com
CrockettAlmanac.com's picture

 

 

Suspicious timing - especially if we apply the Tyler's's's's's's' Goldman Prop desk theory!?

 

Try Tylers'.

Wed, 12/14/2011 - 21:30 | 1981496 DeadFred
DeadFred's picture

What this means is you should go short on C. It means Citi is selling their gold positions and want buyers. Why would they sell their gold unless they're strapped for cash?

Wed, 12/14/2011 - 16:39 | 1980255 mrgneiss
mrgneiss's picture

What, no Robotrader or the other gold trolls who come out those 2 or 3 times a year when their precious metal bear calls are temporarily vindicated?

Wed, 12/14/2011 - 16:46 | 1980300 notbot
notbot's picture

How about long PHYS, short GLD?  Protect yourself from the great paper/ETF unwind.

Wed, 12/14/2011 - 17:03 | 1980406 Odin
Odin's picture

hah, take a walk over to Market Watch...There shitting all over gold in their usual fashion.... Fucking Shills...

Wed, 12/14/2011 - 17:04 | 1980408 lewy14
lewy14's picture

I'm not a troll, gold or otherwise. Gold is my single largest long position.

Yet. What I have to admit, the real catalyst for gold will be QE3, and/or a putsch at the ECB resulting in massive EUR printing.

This is not happening, and there is no sign of it being imminent.

Therefore it is reasonable to assume that the liquidation of everything risk (gold, copper, oil, wood, stocks, credit) will continue.

Printing will happen eventually. But the central banks have set the pain threshold rather high this time, it seems.

Wed, 12/14/2011 - 17:24 | 1980507 Nate H
Nate H's picture

Exactement...

Wed, 12/14/2011 - 18:08 | 1980674 Oracle of Kypseli
Oracle of Kypseli's picture

I think that printing is happening but it's kept under wraps to control gold price. That is actually great for those who are accumulating physical. It lowers the average bought price., especially when you look 2-3 years ahead. What's the point of worrying? the trend is intact BTFD. I bought another 20% position at 3:30pm to ad to my yesterday's 20%

Wed, 12/14/2011 - 18:34 | 1980781 dwayne elizando
dwayne elizando's picture

I couldn't agree more. Deflation is the new terrorist threat. Although the printing may have slowed down some doesn't mean they aren't printing.

Wed, 12/14/2011 - 18:50 | 1980845 Whalley World
Whalley World's picture

reasonable to assume that the liquidation of everything risk

Since when has the oldest form of $ in history been considered risk?  Paper money o.k, but gold, not hardly.

Wed, 12/14/2011 - 20:54 | 1981355 lewy14
lewy14's picture

Since 1971.

The salient facts are these: there is too much debt, and this debt is (predominantly) denominated in dollars, euro, and yen.

It does not matter what gold is "worth". Does not. The only relevant question is: what is the numéraire?

Thu, 12/15/2011 - 15:42 | 1984417 mkkby
mkkby's picture

I'm looking for the end of this correction to get much more long gold.  I'm thinking it could be quite a while (months).  Reason - Obamy will wind down the wars just to get re-elected.  That should reduce the deficit and pressure to print.

Wed, 12/14/2011 - 17:35 | 1980555 High Plains Drifter
High Plains Drifter's picture

robo is busy. on wednesday's his mom makes him clean out the basement and pick  up all of the empty potato chip bags, and coke bottles and big mac wrappers.......

Wed, 12/14/2011 - 16:48 | 1980312 Al Huxley
Al Huxley's picture

No, No, you haven't been paying attention, this time it's different. Gold's going down $60/day for the next 25 days until it reaches its fair value at zero. After all, you can't eat it, and who needs a stable measure of value in the fiat and credit to infinity world we live in today?

Wed, 12/14/2011 - 17:05 | 1980419 Greenspan Shrugged
Greenspan Shrugged's picture

Buy at $1450 people.

Thu, 12/15/2011 - 06:54 | 1982483 anonum
anonum's picture

I envy you US folks; here in Europe gold is not coming down relative to EUR - at least in any remarkable respect.
I'd love to spend my remaining FIATs at the local Krugerrand dealers but no chance to BTFD here.
Take care Amerifriends.

Wed, 12/14/2011 - 18:23 | 1980749 carguym14
carguym14's picture

<golf clap>

Wed, 12/14/2011 - 17:05 | 1980421 I think I need ...
I think I need to buy a gun's picture

it will happen overnight i'm in fofoas camp any disorderly wealth transfer will be publicly unpallatable

Wed, 12/14/2011 - 18:16 | 1980729 whatsinaname
whatsinaname's picture

If Ron Paul gets elected will it be bad for gold since he will have the presses shut (as he proclaims) ??

Wed, 12/14/2011 - 18:29 | 1980763 anarchitect
anarchitect's picture

Negative on that front.  But very positive when he eliminates capital gains taxes on gold and silver.

Wed, 12/14/2011 - 18:52 | 1980851 Sgt.Sausage
Sgt.Sausage's picture

Except "he" can't do that.

Congress does that.

Thu, 12/15/2011 - 08:08 | 1982537 Idiocracy
Idiocracy's picture

Good question.  That's been nagging at me for a while....

What if Ron Paul does well in or wins the early primaries like Iowa and NH??  That will naturally start the US (and world) press and public talking openly about his gold standard ideas.  How can that not be bullish for the pm's??

Wed, 12/14/2011 - 19:01 | 1980888 rosiescenario
rosiescenario's picture

'gold is going nowhere but up"

 

Or, looked at another way, gold is staying level and all the fiat is receding...like an island that appears to be rising from a lake because the water recedes...

Wed, 12/14/2011 - 19:01 | 1980890 tooktheredpill
tooktheredpill's picture

of course - its just a matter of time to hit 6000 eventually. I have a better idea, wait for the shit to go down and the liquidations etc and then make a call. Unless there is clear causation its speculation and hoping like the well fed turkey that tmr will be the same as today.

Wed, 12/14/2011 - 19:42 | 1981033 quintago
quintago's picture

If an investment bank says that Gold is going to 6,000, what they really are saying is that debt will need to be monitized against availably physical reserves.

Wed, 12/14/2011 - 23:46 | 1981993 DosZap
DosZap's picture

Some folk do not get around much.

Alf Fields assures us we will see $4,500.00 Gold, Period.

Mr. Sinclair, says swings of $200-$300.00 in 10 minutes are to be expected as this train progresses.

Face it, we are screwed as a nation fiscally,and because we are the reserve currency, billions, if no trillions has been pouring in from fools, thinking this America of the 60's -80's..................newsflash, we ain't.

Euro gets it first,WE will pay, it's all about timing..................and we are likely  next up.

Where do folks go when they finally get it, that we are the least worst, and we are not the protection of last resort.We cannot even afford the interest on our own debt..........Hello??.

See, even Citi may get an acorn at some time.

I go with those that eat,sleep and breathe the market, and know more than ALL of the Economists, and henchmen on the hill.

Every game must end, EVERY game.

Be ready for the New schedule.

Wed, 12/14/2011 - 16:34 | 1980233 HedgeAccordingly
HedgeAccordingly's picture

She is fishing for buy stops... http://hedge.ly/gFWVSm .. gold up 30 tomorrow

Wed, 12/14/2011 - 18:45 | 1980825 youngman
youngman's picture

It will be up $30 tonight as all the Asians buy it up..then our idiots with their HFT computers will take it down again so they can make money on their shorts...then the Asians will buy it all again...and then one day....it goes poof...

Wed, 12/14/2011 - 17:01 | 1980389 Gully Foyle
Gully Foyle's picture

"There's a sucker born every minute" is a phrase often credited to P. T. Barnum (1810–1891), an American showman. It is generally taken to mean that there will always be many gullible people in the world.

Wed, 12/14/2011 - 18:38 | 1980798 WonderDawg
WonderDawg's picture

So, time is money, then?

Wed, 12/14/2011 - 17:08 | 1980436 Putty
Putty's picture

I have GCZ2 contracts for sale!  Only $2300 an ounce!  Save $100 an ounce, but you must act now!

Wed, 12/14/2011 - 17:36 | 1980558 vast-dom
vast-dom's picture

If only slot machines could be manipulated just a bit by hopium, reports and crooked casino policy...

Wed, 12/14/2011 - 17:56 | 1980644 johnu78
johnu78's picture

We need $3,400 gold now!!!!!!

 

-John
http://www.youtube.com/CarMarketer

Wed, 12/14/2011 - 18:14 | 1980719 I am a Man I am...
I am a Man I am Forty's picture

Damn, Citi is selling gold too!!

Wed, 12/14/2011 - 16:30 | 1980203 Corn1945
Corn1945's picture

An insolvent TBTF financial fraud factory telling me to buy gold? ---> Seriously consider selling all your gold.

Wed, 12/14/2011 - 16:35 | 1980236 mayhem_korner
mayhem_korner's picture

 

 

Shoot me a note and I'll give you my delivery address for your physical.  Do you still accept FRNs for your gold?

Wed, 12/14/2011 - 16:43 | 1980281 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

Me too please.  I just had my wife stop by the coin shop where they are selling Canadian sterling silver Olympic coins at spot.  She just called and said the place is a mad house; I hope she can get some!

Wed, 12/14/2011 - 16:46 | 1980296 mayhem_korner
mayhem_korner's picture

 

 

Perhaps I can rehypothecate the proceeds of my solicitation to you, Alfred.

Wed, 12/14/2011 - 16:50 | 1980315 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

LMAO!  Sounds like the right MFing thing to do brother!

Wed, 12/14/2011 - 18:19 | 1980738 Ignatius J Reilly
Ignatius J Reilly's picture

Hilarious.  I hope "MFing" becomes part of our lexicon.

 

MFing v. - to rehypothecate, to pledge other peoples money or property as collateral for money that one will use on hookers and blow and unfathomable gain without any risk.  Origin. unkn. perfected by Goldman Sachs and to a lesser extent MF Global.

Wed, 12/14/2011 - 18:40 | 1980791 Obadiah
Obadiah's picture

Please let me add the 2nd , and 3rd notations. VERB

MFing v.

1. to rehypothecate, to pledge other peoples money or property as collateral for money that one will use on hookers and blow and unfathomable gain without any risk.  Origin. unkn. perfected by Goldman Sachs and to a lesser extent MF Global.

2. being a directly spawned of the Father of lies and murder, Satan.

3. to suck other male's sexual member and lick the anus of them for profit and scream "THANK YOU"

 

Wed, 12/14/2011 - 19:05 | 1980904 rosiescenario
rosiescenario's picture

..from the Goldman employees' manual:

 

"At all times, to succeed within our firm, lick what is above you and kick that which is below."

Wed, 12/14/2011 - 17:00 | 1980381 trav7777
trav7777's picture

bbbbut...bbbbut...I thought silver was in supply shortage and the physical had decoupled from the paper?!?!?!

You mean shameless pumper shills on the internet are not to be believed?  I'm so disillusioned.... :/

Wed, 12/14/2011 - 17:15 | 1980472 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

Say what?  The place is called Monarch Coin in Salt Lake City.  Give em a call and see what they have left at spot....nothing, it all sold today.  Call em.

Wed, 12/14/2011 - 17:46 | 1980609 youLilQuantFuker
youLilQuantFuker's picture

I think what Trav is saying is that The Hunt Brother event is too fresh in the minds of the targets or perspective targets.

The architects must allow for greater period between temporal frequencies.

Perhaps it's time to invent something new and add it to the lineup?

Wed, 12/14/2011 - 18:04 | 1980676 tmosley
tmosley's picture

Nope, Trav just bases his entire reality around being the opposite of me. He doesn't have anything to say.  He just wants to hurt as many people as he can, because he's a bitter little man who lost his whole family because of his "racial pride".

Wed, 12/14/2011 - 20:00 | 1981092 youLilQuantFuker
youLilQuantFuker's picture

Did you negative me? Why in the world did I get so many negative votes on that one?

I never gave you negative, why slam me?

Wed, 12/14/2011 - 20:46 | 1981321 tmosley
tmosley's picture

lol, no, I didn't give you a negative.

Thu, 12/15/2011 - 00:03 | 1982047 trav7777
trav7777's picture

you're an idiot and a broke loser...who the fuck WOULDN'T want to be the opposite of you?

Thu, 12/15/2011 - 00:31 | 1982107 tmosley
tmosley's picture

You keep thinking that, kiddo.

Wed, 12/14/2011 - 18:12 | 1980695 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

Oh that's weird because I thought he said "You mean shameless pumper shills on the internet are not to be believed?

Maybe he can pick up the phone (rather than spewing a bunch of sniveling drivel) and he will find that what I stated is factual.

Wed, 12/14/2011 - 17:13 | 1980461 IrritableBowels
IrritableBowels's picture

Anyone selling besides the dealer?

Wed, 12/14/2011 - 16:46 | 1980299 wandstrasse
wandstrasse's picture

what they also say (= lie) is that in two years their fraudulent fiat money still can buy PMs.

Wed, 12/14/2011 - 16:30 | 1980204 strannick
strannick's picture

Yes, betting on Government buffoonery is indeed a 100% certainty, and so... gold.

Wed, 12/14/2011 - 16:30 | 1980206 WonderDawg
WonderDawg's picture

And we're supposed to believe anything that comes out of Citi?

Wed, 12/14/2011 - 16:37 | 1980246 DB Cooper
DB Cooper's picture

I'd be really scared if it was Goldman!

Wed, 12/14/2011 - 16:31 | 1980209 surfersd
surfersd's picture

What if the bernank starts the presses again and uses the csh to pound on gold?

 

 

Wed, 12/14/2011 - 16:33 | 1980225 strannick
strannick's picture

Then make sure you buy it while he's pounding it.

Wed, 12/14/2011 - 16:31 | 1980211 silverserfer
silverserfer's picture

"we know this because we rehypothecate gold ourselves" "

Wed, 12/14/2011 - 16:32 | 1980215 dracos_ghost
dracos_ghost's picture

I didn't know Laszlo Birinyi works at Citi now. Gotta love straight edge rulers.

Wed, 12/14/2011 - 16:32 | 1980216 BrocilyBeef
BrocilyBeef's picture

A man's duty sometimes stinks.

Wed, 12/14/2011 - 16:35 | 1980218 Money 4 Nothing
Money 4 Nothing's picture

Money 4 Nothing predicts your not going to have to worry about 2 years from now.

Let's say it does, and your still here to use it, how 'bout paying 10 dollars for a gallon of gas, kinda levels that playing field huh?

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