Gold Down Further 2% – Chorus of ‘Gold Bubble’ Callers Out in Force Again

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Thu, 08/25/2011 - 08:51 | 1598729 MarketTruth
MarketTruth's picture

Back up the truck guys n gals.... btfd!

Thu, 08/25/2011 - 08:57 | 1598752 Earl of Chiswick
Earl of Chiswick's picture

<--- R O U B I N I Rocks

<--- R O U B I N I Sucks

 

Thu, 08/25/2011 - 08:57 | 1598759 tmosley
tmosley's picture

Probably should have switched that order.

Just sayin'.

Thu, 08/25/2011 - 09:14 | 1598809 Earl of Chiswick
Earl of Chiswick's picture

Actually a great deal of thought went into the sequence (it's an inside baseball thing) done for the benefit of the great professor.

 

You need to understand his ego is so Huge that he will read a high number on the negative arrow as a disagreement with the statement that he sucks and may even click on it himself.  But we will all understand its true meaning, that the emperor has no clothes.

 

A side objective is to see if the Zero Hedge rating system can handle triple digits.

Thu, 08/25/2011 - 09:18 | 1598889 fuu
fuu's picture

Yes it can, someone recently went over 130.

Thu, 08/25/2011 - 10:50 | 1599511 eisley79
eisley79's picture

zerohedge is made with drupal, and their up down thing is just a mod for the commenting module, they didnt make it, but at least they arent using the default one any more....

Thu, 08/25/2011 - 10:16 | 1599280 Hearst
Hearst's picture

I hate the pride these top callers have.  Whether it's Roubini or Pretcher or Gartman, they never NEVER admit being wrong.  They twist their mistakes using double speak into half truths and the MSM gleefully have them all back on air to explain the new upmove in precious metals..Sickening.

 

When I think of my Gold and Silver holdings I like to think about them years out.  Where's Gold going to be in 2014 or 2016?  Does anyone who holds physical (besides the corrupt bullion banks and commentators) believe Gold and Silver will not be multiples of their current prices??  Of course not!  Having a long term outlook really calms the nerves.  Not to say I don't follow the prices daily, but I relax more about it.  Having sound money = a sound mind.

Thu, 08/25/2011 - 10:44 | 1599474 Bastiat
Bastiat's picture

They twist their mistakes using double speak into half truths

Clearly you don't have an EC Phd so you are not able to follow their exquisite and subtle reasoning.

Thu, 08/25/2011 - 10:54 | 1599535 eisley79
eisley79's picture

dont measure your metals in dollars, and you wont even care.  Measure it in itself, aka in ounces.  Whether you have on paper profits or on paper losses, is really irrelevant.  Unlike equities or bonds, the underlying entity in metals, cannot go bankrupt, or cease to exist.

They simply are, count the ounces, and sell them only to buy other real assets.  Like land, etc

Thu, 08/25/2011 - 08:56 | 1598754 HelluvaEngineer
HelluvaEngineer's picture

I'll buy more around 1600.  And Roubini still sucks.

Thu, 08/25/2011 - 09:01 | 1598767 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

I doubt this will be a serious correction, and I doubt that the mass buying during spring and summer will be wiped out simply with the spec longs being scared off. I blew 20% of my powder yesterday, will probably buy more in a couple of hours if the price comes down a little, and will blow the rest next week. I don't think they'll knock any of the sentiment out of gold here really and the only way for it to go sub 1620 or so would be more margin requirment increases or shenanigans...just my two cents...

Thu, 08/25/2011 - 09:08 | 1598806 DosZap
DosZap's picture

the MAXILOPEZ,@ 09:01

Bro,

Get ready for this.

< and the only way for it to go sub 1620 or so would be more margin requirment increases or shenanigans...just my two cents...>

I see the same scenario coming they did on Silver.

Thu, 08/25/2011 - 09:12 | 1598836 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

could be, but the margin requirements are now about the same as they are for silver are they not? so wouldn't another 10% or so really move this towards a physical market??

Love it to happen though; I'll keep about half of my powder dry for next week. The rest I blew yesterday and will probably blow in a few hours...

Thu, 08/25/2011 - 12:59 | 1600242 cynicalskeptic
cynicalskeptic's picture

Sorry, seems like 'a few hours' was too long a wait......  on the way up 

Thu, 08/25/2011 - 09:13 | 1598808 Thomas
Thomas's picture

Roubini should spend more time thinking and less time talking. You could plot the assets of a compounding money market versus Yak Dung in Lahsa and get a beautiful overlap if you are willing to use arbitrary origins and different axes (which is exactly what he did). 

I scanned all the gold stories on the CNBC videos. It is unimaginable to me that a secular bull market could be so reviled as gold. That blowhard Gartman--I hope you are reading this--was yacking (Yaking) about cab drivers and shoeshine boys buying gold. Bullshit. You are inventing that crap. I work with 30 very bright colleagues at a top-ten University chemistry department. (Some of you may know my name; anonymity ain't what it used to be.) These bright guys with my prodding are not yet buying gold. Everybody knows about gold, but they are not buying it.

I've been a gold bull since 1999 and I haven't sold a fucking ounce. (Do I sound pissed at the margin hikes and media campaign?)

Thomas

Thu, 08/25/2011 - 09:56 | 1599162 thesapein
thesapein's picture

Yes, you sound pissed. It's frustrating playing with zombies. Rather, it's frustrating expecting zombies to be something more. But if you just face reality and see that they are zombies and not real people, it helps. Nature likes the shotgun method, like shooting millions of sperm out so that just one might level up. You are literally one in a million. Maybe feel some sadness for them, but don't let them throw you off to die with them. Btw, are those bright people you mentioned really bright if they aren't listening to you?

Thu, 08/25/2011 - 14:36 | 1600889 Thomas
Thomas's picture

Savants.

Thu, 08/25/2011 - 12:04 | 1599904 Panafrican Funk...
Panafrican Funktron Robot's picture

The 16's aren't coming.  The buying opportunity is right now; anything below $1800 is going to be a bargain by Tuesday.  Their best opportunity to knock this below $1700 was this morning, didn't happen.  If we close today above $1700, it's off to the races.  Tomorrow will be pants-shittingly epic.

Thu, 08/25/2011 - 09:03 | 1598777 russki standart
russki standart's picture

Not yet. I would wait until Gold approached $1670, 50 MA within the next week or so. On the other hand, I am confident that Gold will trade well over $2500 per oz within 12 months given the amount of money that will be 'printed' to re-elect Obama. Futher, we are entering the 4th quarter, with Diwali, Christmas and various New years celebrations approaching. For those of us who are long bullion, and are trying to preserve capital, we need do nothing. This sell off is a blip.

FYI, I am not a gold bug. I look forward to the day when I can sell all of it and buy the top floor of the Trump Las Vegas, complete with sex slave girls and bathtubs of champagne. 

Thu, 08/25/2011 - 09:10 | 1598824 O_HAI
O_HAI's picture

Those "extras" come standard with the place, no?

Thu, 08/25/2011 - 08:52 | 1598732 Long-John-Silver
Long-John-Silver's picture

Gold Bitchez!

Thu, 08/25/2011 - 09:16 | 1598873 Dapper Dan
Dapper Dan's picture

 

Before we removed MacArthur from the Philippines in WWII we removed the gold and silver, and burned the fiats. We removed 10,800 pounds of gold!

Apparently it was more important to keep the gold from falling into the hands of the Japanese than removing Old "I'll shall return" from Corregidor, if gold is in a "bubble" it is a 4,000 year old bubble.

Story can be read here: http://corregidor.org/chs_trident/uss_trout.htm

 

There were 18,000 Treasury checks totaling $38,000,000 which had been received by the Philippine Treasury for payment and had not been sent to the United States for credit. In addition to these securities, there was on Corregidor a large amount of gold, silver, securities, and government documents as yet not been turned over to the Commissioner. These had served as the Philippine Commonwealth reserves and comprised over one-and-a-third million grams of gold and nearly sixteen and one-half million silver pesos. A rough summation of the valuables collected under the first War Powers Act was nearly $3,000,000 in American currency, $28,000,000 in Philippine currency and 10,800 pounds of gold. The paper currency was easily disposed of by burning after the serial numbers had been recorded and radioed to the United States

Because the gold was the most indestructible, it was important to get it out of the Philippines. As the opportunity for this seemed unlikely, it appeared inevitable that the gold would soon have to be sunk in the Bay and risk recovery by the Japanese. President Quezon and the High Commissioner were greatly concerned with the problem. If it could not be destroyed, or safely sunk in the bay, there was but one answer remaining -- evacuate the gold and silver by submarine.

 

Thu, 08/25/2011 - 08:52 | 1598733 alexwest
alexwest's picture

who gives a fuck about roubini..

best description    i saw about him was

"before crisis 2008 he was nobody and couldnt pay for taxi fare by reading 1 hour lecture"

 

i never saw  VIDEOS ON UTUBE 'ROUBINI WAS RIGHT'

alx

Thu, 08/25/2011 - 09:08 | 1598811 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

I suppose pundits like him realised to get to the top of the class (as for back as elementary school) it was a better idea to say what the teacher wanted to hear than to say what was correct or made sence. Its worked well; they've built entire careeres around being delusioned and promoting delusion. However, when they look at the world do they understand what is happening??

Thu, 08/25/2011 - 08:53 | 1598738 cossack55
cossack55's picture

Can I eat it yet?

Thu, 08/25/2011 - 09:14 | 1598850 Thomas
Thomas's picture

We may all eat it eventually (but that was funny.)

Thu, 08/25/2011 - 09:27 | 1598970 Smiddywesson
Smiddywesson's picture

People trading paper gold feel like it went in the other end.

Thu, 08/25/2011 - 09:17 | 1598872 fockewulf190
fockewulf190's picture

If your waiting to be told then yes, go right ahead.  Don´t worry about the damage to your teeth, I´m sure your dentist will accept the toothmarked bauble as payment for any repairs.  Have fun digging through your own baby ruths.  That will be one expensive flush if you miss it.

Thu, 08/25/2011 - 09:37 | 1599048 tmosley
tmosley's picture

Feel free, but it will be much more filling later.

Thu, 08/25/2011 - 10:14 | 1599285 thesapein
thesapein's picture

This ongoing insider joking does remind me, remember that one quick method to test a gold coin, bite it to see if it's softer than your teeth. Nice thing about gold is that it's completely at home around us organics and plays nice in the body. It's actually perfect for use in medical devices that must go inside the body because it's non corrosive, non toxic, can be made into any shape, etc. Ask any cyborg. 

Thu, 08/25/2011 - 13:03 | 1600279 cynicalskeptic
cynicalskeptic's picture

No you can't eat it yey - nor will you ever be able to  BUT unlike those $100 trillion Zimbabwe banknotes, a pinch of gold dust WILL buy you enough food for a day

 

http://www.youtube.com/watch?v=7ubJp6rmUYM

 

The first comment on this video is:


All the westernized countries look at these poor people and pitys them, not at? all aware that this is coming their way very soon!

Thu, 08/25/2011 - 08:54 | 1598741 Sean7k
Sean7k's picture

Typical options expiration sell off. The last two days, the entire world production of gold was traded. Twice the production of silver. The CME is complicit. Excellent market entrance prior to Bernanke's "we aren't doing nothin' speech". 

Thu, 08/25/2011 - 08:57 | 1598761 eigenvalue
eigenvalue's picture

But in my humble opinion, if Bernanke should say "we aren't doing anything", gold and silver would be hammered again. No QE3 now is supposed to be bearish for PMs. 

Thu, 08/25/2011 - 12:10 | 1599924 Panafrican Funk...
Panafrican Funktron Robot's picture

QE3 = dollar debasement = bullish for gold.

No QE3 = stock market fail = bullish for gold.  

There is literally nothing he can announce that won't be bullish for gold.  Add on the crash in Europe happning currently, and we could see 2k gold as early as mid September.

Thu, 08/25/2011 - 09:01 | 1598771 TradingJoe
TradingJoe's picture

Exactley! Nothing but noise and blantant manipulation via margin hike increases, the leaked ones I mean, options expiration, and all ahead of Benjie's (I'll give you nothing this time) speach! Very Funny indeed!

Thu, 08/25/2011 - 09:10 | 1598791 SheepDog-One
SheepDog-One's picture

Hillarious the concern equity bulls have for those holding gold, as the truck theyre on pulls into the meat cutter house.

Wont hear much from the equity bulls/gold bubble callers when equities roll over and die soon.

Thu, 08/25/2011 - 09:17 | 1598875 Snidley Whipsnae
Snidley Whipsnae's picture

None of the fundamentals of crumbling fiat and crumbling world financial system have changed...

Once again the paper market is wagging the physical...

Buy physical and sit tight...

Weak hands or those wanting a short term profit paid in fiat are not likely to get back into gold at the lower price they expect... PMs that are sold are headed East and won't be coming back near the current price levels...

Are the central banks selling gold?

Thu, 08/25/2011 - 09:26 | 1598965 Absinthe Minded
Absinthe Minded's picture

The price may have dropped, but the premiums haven't. I like how they say gold dropped 5.6% on no news on WSJ this morning. Hiking margins 26% is no news? Fuck off Bernanke bugle blowers. Why don't they hike oil Margins by 25 or 30%? Then watch their asshole buddies at Exxon Mobil cry. No then the big boys at the CME (Chicago Manipulation Exchange) wouldn't get invited to the Turks and Caicos by their greasy oil buddies. By the way, I hope Ilene fucked up their playground down there.

Thu, 08/25/2011 - 09:06 | 1598797 russki standart
russki standart's picture

It is a temporary phenomenon, with weak holders sold out in favour of the strong. When the dollars resumes its decline, just watch as the rest of the world moves into Gold. By comparison the 1970's gold bubble will look like a bathtub fart.

Thu, 08/25/2011 - 09:30 | 1599001 Smiddywesson
Smiddywesson's picture

You are, no doubt, correct.  The only question in my mind is how far down they push it and how long it takes to recover.

Thu, 08/25/2011 - 08:56 | 1598747 Johnny Lawrence
Johnny Lawrence's picture

Just posted this in another thread...I do think it's quite peculiar how all the big brokerage firms increased their price targets on gold, only to then immediately see it smacked down.

From UBS' Dominic Schnider:

Don't panic

The sharp selloff in the gold price has raised concern among investors
about whether the metal had reached unsustainable price
levels and that more weakness lies ahead. The CME Group also announced
a 27% increase in maintenance margins to USD 7,000
for each 100-oz futures contract at Comex. While a dip to the lower
range of our 1- to 3-month trading range at USD 1,724/oz is
at hand, month-to-date the metal is still up more than 7%, and
yesterday’s decline should be seen in this context. This begs the
question of whether markets will sell down the gold to price levels
prior to the US credit-rating downgrade, which would bring the
metal down to USD 1,640/oz, our former trading range low. We
do not expect this to happen. US public finances are far from getting
better, especially with economic growth likely to slump. A firm
durable goods order report for July does not change this picture.
In addition, the structural problems in the Eurozone have yet to be
tackled seriously enough to prevent a disintegration of the euro in
the long run.

Recommendation

We advise investors to build up long positions in gold from a diversification
perspective. Our forecasts remain unchanged. For investors
who want to be positioned more conservatively, the rise in
option volatility toward 30% offers very attractive opportunities to
set strike levels at USD 1,640/oz. Selling volatility (put options) at this
level would bring a 9-10% annual yield over the next 1-3 months.

Thu, 08/25/2011 - 08:56 | 1598753 DaBernank
DaBernank's picture

OK, you all should clearly give me your physical gold and in exchange I'll give you GLD Sept 150 puts, it's a great deal, trust me, I'm doing you a favour. Just ask Doug Kass, Gartman, Roubini....

Thu, 08/25/2011 - 09:18 | 1598887 I Told YOU So
I Told YOU So's picture

I do have to mention that the 125 and 150 gld puts I suggested as a hedge against profits on the physical are WAY up in just 2  days. nothing wrong with "paper" gold if its used this way, paper money is still money and it can be exchanged for the real stuff..

Thu, 08/25/2011 - 09:46 | 1599110 DaBernank
DaBernank's picture

I agree, I've been cashing in on the silver volatility with trading leveraged ETFs, I just don't consider it "owning" silver.

Thu, 08/25/2011 - 08:56 | 1598755 THE DORK OF CORK
THE DORK OF CORK's picture

My last euro gold buy was in the Spring and was only a ounce + a month - I won't be getting my knickers in a twist until it drops another 200 Euros.

Thu, 08/25/2011 - 09:00 | 1598762 Construct
Construct's picture

.

Thu, 08/25/2011 - 09:00 | 1598766 PulauHantu29
PulauHantu29's picture

I am looking forward to a Dow of 700. Should be very impressive. When Gold was $1,910 Faber said he would start buying again if gold dropped $150...so if he is representative of private BiG money, I suspect there's alot of pension funds and private buyers grabbing as much gold as they can before it rises to $2,500.

Thu, 08/25/2011 - 09:01 | 1598768 Jim in MN
Jim in MN's picture

Since the average couple will need about a million dollars (real) to retire, the minimum prudent gold holding would be about $100,000 per household.

Better get on that, America.  Kind of a deal at the minute.

Thu, 08/25/2011 - 09:01 | 1598769 WallStreetClass...
WallStreetClassAction.com's picture

Well you CAN'T DENY that gold pricing nowadays has a healthy speculative component. What % of the overall price is hard to tell. But careful of people saying "gold can only go up".

Thu, 08/25/2011 - 09:05 | 1598786 DaBernank
DaBernank's picture

If you own gold for what I (and many others) consider to be the right reasons, the price really doesn't matter. If you are trading the volatility to make a quick paper profit, then people should heed your warning. In other words, if gold drops to $600 because unemployment is at 5% and interest rates are at a healthy 6% that's great, my physical gold is there as an insurance policy against bad times 20 or 30 years from now.

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