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Gold Falls 2% in Minutes In Asian Trade – Global Currency Wars Resume and Markets Digest German Decision
From GoldCore
Gold Falls 2% in Minutes in Asian Trade – Global Currency Wars Resume and Markets Digest German Decision
Gold is trading at USD 1,843.60, EUR 1,314.10 , GBP 1,155.30, CHF 1,584.10 and JPY 142,390 per ounce. Gold closed marginally lower in all currencies yesterday except for the Swiss franc which fell nearly 7% against gold and other fiat currencies.
Gold’s London AM fix this morning was USD 1,844.00, EUR 1,311.99, GBP 1153.44 per ounce. Gold fixed lower in all currencies (USD 1,891.00, EUR 1,330.75, GBP 1172.86 per ounce).
Cross Currency Table
The German constitutional court rejected the challenge against the Eurozone ‘bail outs’ but said that the ruling shouldn’t be seen as “blanket” approval for future bail outs. Going forward Angela Merkel and the German government must seek approval from the Parliament’s budget committee for new guarantees it assumes under the European Financial Stability Facility.
Gold closed in New York at $1,870.70/oz yesterday and then traded sideways prior to sharp selling in Asian trading saw gold fall 2.3% or nearly $50 in minutes ($1,871/oz at 0514 GMT to a low of $1,827/oz at 0523 GMT). The price fall was odd as there was no breaking news or ostensible reasons for the sell off and other markets were unchanged at the time.
Speculation was that the falls were technical in nature after stop losses were triggered.
Gold in US Dollars Spot – 1 Day (Tick)
However, Asian traders spoke of some 4,000 lots of gold being ‘dumped’ on the COMEX and of a “large sell order”.
This would suggest that the sellers may not have been profit motivated and official selling may have been involved.
After the Swiss franc intervention and currency debasement yesterday, market participants are wary of further official government and central bank intervention. With further gains for the Swiss franc artificially capped (at least in the short term), it would be naïve to exclude the possibility of intervention in the gold market and a continuing strategic capping of the price.
“The start of full-on currency wars has started in earnest,” said Maurice Pomery, chief executive at Strategic Alpha, quoted in the front page of the Financial Times today. “After currency wars come trade wars and as we see the exporting world pressured as the developed world contracts, tensions will rise.”
Central banks, from the SNB to the Bank of Japan, are openly intervening in the currency markets and devaluing their currencies and therefore may be surreptitiously intervening in the gold market.
The safe haven Swiss franc is now pegged to the not so safe haven euro and Japanese money printing is leading to question marks over the safe haven status of the yen. Therefore, risk averse money is likely to flow into gold.
Gold is an internationally traded currency that is not controlled by any one government and therefore cannot be debased, unlike fiat currencies. A way to control gold (at least in the short term) is by market manipulation and capping or lowering the price at key strategic and psychological moments in order to prevent enthusiasm and the public from seeking out the safe haven.
Reuters reports this morning that analysts believe that “expectations that other central banks may step in to intervene in the currency market” may have contributed to the “restraint” in the gold market overnight.
Given the fact that global currency wars have intensified and will likely escalate in the coming weeks, we should be mindful of peculiar and volatile short term movements that give false signals.
All interventions and market manipulation can be successful in the short term but as ever the real fundamentals of supply and demand will dictate the price of all goods, services, assets and currencies in the long term.
Investors and store of wealth buyers should continue to buy the dip.
For the latest news and commentary on financial markets and gold please follow us on Twitter
NEWS
(Reuters) -- PRECIOUS-Gold drops as stocks rally; debt crisis lends support
http://www.reuters.com/article/2011/09/07/markets-precious-idUSL5E7K712S20110907
(Reuters) -- PRECIOUS-Spot gold tumbles 2 pct, tracks US gold in technical selling
http://af.reuters.com/article/metalsNews/idAFL3E7K703G20110907
(Bloomberg) -- Gold Drops for Second Day as Equity Rebound Trims Haven Investment Demand
http://www.bloomberg.com/news/2011-09-06/gold-may-decline-for-a-second-day-after-rally-to-record-encourages-sales.html
(Reuters) -- Libyan convoy with gold, cash crossed to Niger-NTC spox
http://af.reuters.com/article/energyOilNews/idAFLDE78509020110906
(SouthAfrica.info) -- South African gold production declines
http://www.southafrica.info/news/business/1038896.htm
COMMENTARY
(The Telegraph) – Evans-Pritchard: German austerity drive risks Euro-slump
http://www.telegraph.co.uk/finance/financialcrisis/8745695/German-austerity-drive-risks-Euro-slump.html
(The Telegraph) -- Switzerland abandons floating exchange rate in dramatic 'currency war' twist
http://www.telegraph.co.uk/finance/currency/8745686/Switzerland-abandons-floating-exchange-rate-in-dramatic-currency-war-twist.html
(King World News) -- Marc Faber - This Will End in Disaster & You Must Own Gold
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/7_Marc_Faber_-_This_Will_End_in_Disaster_%26_You_Must_Own_Gold.html
(The Telegraph) -- Libya: Mystery of Gaddafi and the gold-laden convoy crossing the desert to Niger
http://www.telegraph.co.uk/news/worldnews/africaandindianocean/libya/8745665/Libya-Mystery-of-Gaddafi-and-the-gold-laden-convoy-crossing-the-desert-to-Niger.html
(King World News) -- Andrew Maguire - LBMA Shorts Will be Forced to Take Losses
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/6_Andrew_Maguire_-_LBMA_Shorts_Will_be_Forced_to_Take_Losses.html
(Zero Hedge) -- "The European Financial System Is Finished" In Quotes
http://www.zerohedge.com/news/european-financial-system-finished-quotes
(CNBC) -- Another Reason to Buy Gold: Franc Losing Safety Status
http://www.cnbc.com/id/44410858
(MarketWatch) -- Euro crisis helps gold shine
http://www.marketwatch.com/story/euro-crisis-helps-gold-shine-2011-09-07
(MarketWatch) -- Gold’s rally will continue
http://www.marketwatch.com/story/golds-rally-will-continue-2011-09-07?reflink=MW_news_stmp
»
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The EE just wants to be kind and give a buying opportunity for all those investors who bought the swiss franc in the first place and are now looking for a new safe heaven.
Forget this conspiracy nonsense. Gold is falling because of Obama's inspiring jobs speech. The market is pricing in our president's ability to inspire positive thinking and spur on our consumer economy by encouraging spending. Gold has formed a perfect double top, and this signifies the beginning of the end of libertarian arrogance.
Do you get paid to spew this crap?
the more worrisome is that despite he is getting paid, he is not the first one to post. I guess they should fire him and hire a quicker writer.
what do you call a libertarian holding the bag, after a gold bubble? A tea bagger.
Oh yeah the bubble is DEFINITELY in gold, and not government debt. A yield of 1.91% for 10-year Treasury debt is DEFINITELY realistic.
Don't worry DormRoom does really care about gold one way or the other, he just like to talk about his favorite topic, tea bagging.
Remember the old days when the TEA Party was inconsequential? Just a few "old white people" sitting in lawn chairs holding up Gadsden Flags. Fast forward (a couple of months) to today and we discover they are the most powerful professional political group that, if something is not done about them soon, will cause the total destruction of the United States of America.
I think you have them confused with MoveOn.org and the other dozen or so Soros money funnelling to dems organizations out there.
You know, gold go up, gold go down, but mostly gold go up. Put your feet up, light a spliff, and chill.
Correct ESC
Anytime you want to neurobash the 'gold-bubble crowd' Show them a chart of the 10-year treasury note from 1981-present. It's been around since the last commodity/PM bull ended ( I was like 8 years old!) Michael Jorden was still in high school/ACDC's Back in Black was just released/Rap was like Fab5Freddy/The Loveboat was the TV show along with Fantasy Island...Talk about a 'bubble' ... i don't know if I've ever seen anything like it.. So much that our bubble economy and the Fed had to step in and further the bubblethat is necessary to keep our consumer society.
That my friends is the truth.....
Ed Steer's column was very revealing....
"Here's a graph the Nick Laird over at sharelynx.com just whipped for us. It shows that the intervention in the gold market started about 4 minutes before the Swiss broke the news on the devaluation yesterday."
http://www.caseyresearch.com/gsd/sites/default/files/Swiss%20franc-Gold....
http://www.caseyresearch.com/gsd/home
makes no sense. go back to your corrupt edcation and leave real economics to the grown ups
Explain gold bubble. EVERYONE and their brother is in on this 'bubble'?
pretty sure he's kidding
Sarcasm, I assume. Or you are a dolt.
BTFD. Short truth. Long consequences. ZH is like having a skybox seat to see the phase shift.
@MillionDollarBonus_, In 1962 JFK gave an inspirational Moon speech. That did not put us on the moon. At some point scientists and technicians had to go to WORK and build the machines to get us there. The President's job speech is just propaganda speech. Speeches don't put food on the table or put people back to work. We need less talk and more action. If he doesn't know how to do that he should step aside and get out of the way. With over 30 million Americans out of work and over 46 million people (and rising) on food stamps, inspiration is not what is needed. Just my two cents.
HAHAHAHAHAHAHAHAHAHAHAHA!!!! (>wipes tear from eye) What the fuck was THAT, disinformation North Korean style?! That was HILARIOUS! (I can't help but picture that Asian gangster from the movie "Hangover," dressed in a general's uniform and reading this into the microphone...)
This is the second time you wrote this bullshit. If you believe it, you are an idiot, if not, it takes away from the importance of some more thoughtful comments. Get this shit off the blog.
LOL.........sarcasm hopefully, or u r just a fucking moron
Bwahahahahahahaha! Double top?
Your homework is to count how many double tops we've had in Au from $300/oz through $1800/oz.
Let me guess - it only costs $5 to dig it out of the ground. . .
They don't want 2000 gold, and what the Swiss did with their Franc means 2000 dollar gold.
So they are pulling the stops out to smash it, so it does not do this in what is now a Bear Stearns/Lehmen Brothers EU environment.
Hinde Capital CEO Ben Davies remarked to King World News yesterday about the suspicious pounding of gold in the minutes just prior to the announcement of the Swiss franc's devaluation, which would have seemed hugely supportive of gold as the only remaining safe-haven currency.
In regard to gold, Davies says: "Why was it selling off just ahead of a really bullish announcement? You have to believe that there was some coordinated action. The central banks will all have been in on knowing ahead of time that the Swiss were going to announce this. So there was central bank selling because they really didn't want the price of gold to skyrocket on what is incredibly bullish news for gold."
I borrowed the preamble from another GATA release...and the link to this must read KWN blog is here. The KWN title is "Silver headed to $65 and gold to soar".
http://www.caseyresearch.com/gsd/home
"after currency wars come trade wars"
"after currency wars come trade wars"
and after trade wars come real shooting wars.
This is, and always has been, the lesson of history. So why, in a world that is globalized and more complex than ever, do people think we can sustain the unsustainable?
[Note: Interdependence did not prevent Britain, France, and Germany from participating in WWI, even though the talking heads said it would never happen because it would wreck their economies.]
How does this "CBs intervening in gold markets" malarkey square with your "their taking us back to a gold standard" theory, Smiddy? Seems diametrically opposed from here.
CB's don't want a gold standard, as it'll hold governments financially accountable. But they will be brought back, kicking and screaming, as "sophisticated investors" will lose faith in governments to repay their debts, one nation by one nation.
Yep, when goods and services stop crossing boarders, troops do.
Smiddy, your Note part is common history. In reality, all three were dancing to the tune of a certain group with vested interests in making the war happen. Israel was not yet born, the Balfour declaration had been signed in 1917 for heaven's sake. And it was a key goal of the same cabal that started the Fed.
none of this is happenstance. The wrecking of economies through war is an age-old ploy, ne?
V
Truth about America
ori....
traficants prose .....scary and depressing-- truly the road to serfdom...the brit bankers /cbs never relinquied control of the colonies only sought a way back in.... took 300 years...guard your gold and ammo... this is gunna get ugly.
thanks ... i guess
Followed, not long afterwards, by shooting wars. There is nothing new under the sun.
Go Team USA!
After trade wars, die Mütter auf alles Kriegs kommen.
Attn USD: The EU has placed the Euro in a brown paper bag....set it at your front door....lit it on fire....rang your door bell....and ran....enjoy the clean up...
It doesn't matter. US stock markets have decoupled from the world and rallying like 1999
Roubini and Robo Trader dancing...where do they go when gold is going up?
meanwhile where is Leo these days?
The EE will go all in now and prevent a rise in Gold. They will fail soon.
smart money selling gold to buy up industrial metals, and energy in preparation for Obama's fiscal stimulus announcement.
Should it be bullish for Silver ? I guess: No.
Everytime when worries come arround about economic contraction Silver is presented as a commodity. Everytime when economic stimulus is annouced, Silver is presented as currency. The EE always has a reason to short Silver on those opposing news. THats not logical at all. Well, no matter for me I am just buying more Silver ;- )
just keep buying, just keep buying..............
I guess that's why we saw a complete collapse in gold pre-QE2.
Oh wai
Robo and especially Dumbass Deinninger (DD) should see this video:
www.youtube.com/watch?v=WCwWfSYBwOQ&feature=player_detailpage
...and this chart!
http://www.creditwritedowns.com/wp-content/uploads/2011/09/Silver-best-p...
BTFD
Amen.
Looks like a simple "scare the sheep away" intervention, but I dunno for sure - I'm not on the sociopath insiders list.
The last "scare the sheep away" resulted in a $200 drop, for all of two weeks.
The one before that was may, which lasted over a month.
How long will this one last, one week or a half week?
As the global monetary system slowly sinks under the waves, the Captain and crew, rather than helping the passengers to safety, have decided to lock the escape hatches and machine gun the lifeboats.
They appear intent on ensuring that if their beloved Fiat currencies go under, EVERYONE will go under with them, even those who saw the catastrophe approaching and had the good sense to find a lifeboat.
They leave with the life boats, not you. They are throwing fiat into the ships boiler to keep the pumps going while they round up all the life boats.
Into the lifeboats, banksters and their luggage first.
Gold saw its top for 2011 ---worlds central banks are in control of its price now.. for the current... sell the rally in gold until it creates a new high..
I think the fiat price of Gold is soooo disconnected to actual supply and demand. The large drop of Gold yesterday and today despite the swiss national bank removing the safe heaven status of the swiss franc prooves this.
Gold topped?
Let's examine the facts. The attack in May was not just foreplay, they did everything they could to take out silver. The same holds true for the attack on gold two weeks ago, and yet it shook off those losses in just two short weeks, so I have to assume that the powers of those suppressing gold are limited.
Aside from observation, logic also tells me their powers are limited, or else gold would be trading at sub $300, not near an all time high.
What is different today than it has been over the last ten years of gold's rise? Where is the logic in your argument that central banks are in control of its price now, because I am seeing more of the same.
Please, don't make some tortured argument about currency wars. The SNB action doesn't change anything with respect to gold and silver. There has been friction in the currency markets since this abortion started almost 4 years ago, and yet central banks have cooperated to an historic extent. They have cooperated in bailing each other out. They cooperated in that they all, all over the world, all at the same time, began buying gold without running the price up on themselves. I see the attacks on gold as evidence of cooperation, not strife, elsewise we would see the price of gold ramp to the moon as nations broke their promises and bought all they could find on the market. I don't buy that the SNB move was unilateral. Everything going on is still being orchestrated. The canary in the coal mine is if gold prices shoot up unexpectedly, not drop. If cooperation ends, gold and silver will ramp. Then you know the game is over.
TPTB are just playing whack-a-mole with safe haven assets in the hopes there will be a winner, either that or they are involved in an elaborate musical chairs charade for position when the music stops.
For the non-believers, this won't end well.
A new animal is emerging in the markets black flag meets black swan. Might look like a black fawn and come quietly.
What do you base this on, your own twisted understanding of history because there is not on sintilla of evisdence to suport your theroy. By the way, are you familar with the paper gold market versus the bullion market? Cant possibly be!
Is gold a safe haven @ $1800+ an oz?
Is any bubble a safe haven?
Bubble? Hahahahahahahahaha!
Moron.
Gold was 10% higher in Swiss francs 5 minutes after yesterday's announcement than it was before hand. Does this sudden jump mean it's just a bubble?
I hope this is the last time I have to explain this. Gold is not going higher. Currencies are going lower. Get it?
He's not a moron, he's blind to the facts because he either has a religious belief that gold is naughty, or he is looking for adoration from other minor birds who chatter back what they have heard from "experts" who are not really experts at all, but just shills.
Bottom Line: Bubbles don't reinflate. Speculative euphoria replaces everything else in a bubble, and once it is pierced, there is nothing left to reinflate the bubble with.
It would be nice if someone would tell that to the banks who are reluctant to foreclose while they hope that the real estate market reinflates.
I know it's more complicated than that, but it seems like the RE industry is waiting and hoping, meanwhile a bunch of us are sitting on the sidelines, ready to buy, but waiting for the market to get in tune with reality.
BINGO!!!
These idiot bankers just don't get it. When the fiat empire collapses, and it will. The fiat paper system will go as well. They can control the markets but physical will eventually disconnect from paper and go parabolic. It's only a matter of time. And those of us who are on the know, know that the time is comming soon. This fiat system has outlived it's usefulness. If TPTB try to implement a new currency system, they will get their butt handed to them. The people want currency freedom, away from Crony Gov't control.
absolutely. And unlike the paper swiss franc, phys gold cannot be printed at will. my guess is that stage comes when inventories in exchanges get depleted. Probably not too long to wait now.
Exactly..and you will not be able to front run it..it will happen overnight..we here have already bought...but the day traders that think they can jump in when the SHTF...will not be able to...the "markets" will be shut down...and when they reopen..it will be priced much higher...
Do you really think you know more than bankers? People that have been operating fractional reserve systems since the 1400's? Do you think bankers are ignorant of how fiat systems fail? How bank runs are precipatated? How specie payments can be suspended just for them? How interest rates can be adjusted for debts in an hyperinflationary environment to protect their holdings?
If the developing world can figure out that the western economies are going to take advantage of their superior gold holdings to create a new gold backed currency and debase their debt held by China, et al- you should atleast be thinking about it.
The Elites are the smartest people in the room, to think otherwise is madness.
Time to change this
Indeed...From time to time elites get replaced, either violently or through bankruptcy. I remember hearing something about the tree of liberty and blood of tyrants ...
Yes the Elites are the smartest people in the room. But it is amazing how clueless the people one tier lower are. My friend is the chief accountant of a Russian division of a fairly large German manufacturing company. One of his senior German executives was visiting Petersburg yesterday. I asked if he made any comments about the Swiss franc devaluation. No. His only comment was that the company feels the economic crisis is over, and they are planning for expansion.
The banksters are not idiots. They know the current system can't be saved or else we would be taking steps to save it. If they were trying to save their fiat, you would see financial reform, you wouldn't have 0% interest rates, and they wouldn't be throwing around trillions, some even across borders, that cannot ever be repaid. They are just buying time.
I completely disagree that TPTB will be prevented from implementing a new currency system. The most difficult stage was securing the consent of the sovereign nations involved, and that apparently went without a hitch. Securing the consent of the people is not necessary, they are sheep and will do as they are told. The very existence of the Fed is evidence of that, and things have gotten so much worse in recent years that most people don't even know what the Fed is. The Germans and the Irish are good examples. Did they get what they wanted?
Don't kid yourself. Their job is to ACT like they don't get it but fiat is being killed off deliberately; this is very much part of the plan (and possibly a far longer term plan than we would ever imagine; wasn't the same thing done to sabotage the Roman Empire, maybe even by some of the same bloodlines?).
When do the clone wars start?
The dollar appears to be rising against the Euro and the Pound. I am not surprised about the fall in Gold I would also not be surprised to see a central bank sell a bit of gold to raise cash. Its had a good run. Would not be suprised to see it fall to 1200 as deflation reasserts itself - we had a significant correction in 2008. At that stage I would be buying more.
1200, come on, dont be silly
Gold continued rising the past weeks as the markets fell. With regards to 2008, gold will act differently, as the entire world now knows the future path of currency dilution. Do you really think QE3 won't be announced to "solve all problems"? No? Well, nobody else does either.
Ya. That's what happened during the great depression. Gold crashed on the first crash and then it really crashed bad on the second crash.
Everything above is true except for the part where gold crashed a second time. Because that's what is great about great depressions. It means there's not enough gold to play the game. It means game over and it means go out and kill and take things through war. It means replacing empty promises will very full cruelty.
Now quit fucking parroting a meme that has no HISTORICAL evidence. Everybody who knows how it works knows how it goes.
Even the Swiss have lost their fucking minds. They have pegged their franc to Greece, Italy and Spain, et al????? Are you fucking kidding me?????? BTFD. It's the only option.
Nothing new here. Gold plummeted once TARP passed on 10/3/08, from over $900 to under $750. Back the truck up.
There’s been some pretty scary stuff going on lately. You had to have known that TPTB would intervene in the markets.
Trying to rationalize and explain a mere 2% movement is a waste of time. Markets move up and down 2% all the time without any news.
That's right.
Also, traders with a big chunk of something to sell, generally wait until the least liquid time of day to sell and then dump the whole lot in 1 minute, thus ensuring that they get the lowest possible price for the asset they're selling.
That's what I do anyway, but I'll have to stop now that I can only afford a cardboard box to live in. I think there may have been a flaw in my trading strategy, but I'll be darned if I can find it.
First good belly laugh of the day!
Bahahaha!
But seriously, didn't the Chinese just up margin requirements? Could it simply be someone trying to beat the rush?
The new requirements were announced Monday and effective next Friday. Given all week to dribble out any selling that someone wanted to do, why would they dump the lot in one go and consequently get a crappy price? No profit-motivated seller would do that.
It could be an excellent strategy, if you wished to transfer your holdings from, say, the Comex to the LBMA.
"ODD"????? ... Read the eleven-years work of GATA, you GODDAMN MORONS!
Good for me. My bank wire just hit my goldmoney.com account. Hope they keep screwing around with the gold price cause I'm a buyer at every dip.
False signals? Omg wtf have we've seen for the last 5 years? Lol
The only "bubble" that exists in real-time is credit. (period)
......surreptitiously..... Does that mean "like using a sledge hammer"?
None of the fundamentals that drove gold to new highs have changed. Fiat is collapsing, the banksters are trying desperately to control gold with paper and fiat... Be right and sit tight. Soon it won't matter what number of paper fiat gold is 'valued' at...
Get long physical and don't let the banksters manipulate you out of your convictions.
Absolutely. Snidley is right, nothing has changed. We have seen it all, and we are going to continue to see more of the same.
The problem with many of our comments, and I am guilty of this to from time to time, is sitting in a long term position trade while thinking like a swing trader. If you are a swing trader, then shut up and trade. If you are a position trader, a nice round of gold will clear your mind.
Does anyone think they can hold a position trade against the most powerful traders in the world and not have at least a 10% stop? Are we that naive? At $2k gold, that's a $200 loss. Haven't we already seen that and didn't it end miserably for the manipulators?
The day to day variations are just noise on the way up. If your positions aren't set already, just BTFD and enjoy the ride....
Only pussies would get scared now! A little correction to gain strength for the next leg up and y'all run around like headless chickens!
However, Asian traders spoke of some 4,000 lots of gold being ‘dumped’ on the COMEX and of a “large sell order”. Not-for-profit selling is the sign of "intervention". Someone said "Is any bubble a safe haven?" Are you kidding? Far from a bubble, far from even being part of hedge funds, pension funds, retail buyers--you know, us, Few people or institutions own gold or invest in gold, globally and especially in the Western world. If you do some research you will find that gold is acting as a currency and silver is doing its best to seperate itself from a commodity and act like the currency it has been for several thousand years. The ptb are desperate and showing signs of losing control and this is a way showing they are still in cotrol of an out-of-control fiat nightmare. They will fail, again.
Someone on an earlier thread asked "why don't treasuruies ever flash crash?"
That is a good question. I believe it is truly all about price manipulation. Gold is the enemy, UST is their friend.
BTW, when our treasury bubble finally pops, a few ears will be ringing.
Yes, so far from hedge funds:
"John Paulson told a UK news show on Tuesday that gold is going to $4,000, reports WSJ.
Read more: http://www.businessinsider.com/john-paulson-gold-headed-to-4000-2011-5#ixzz1XGjDomPV" You 10 cent gold monkeys are the NINJA borrowers of the decade. When your greater fool trade implodes gold will tick back down to it's economic value of <$1000/oz. By then the hedge fund gods will have handsomely cashed out because they are just smarter than you.It's a common newbie misconception that the pros are somehow adept at reading markets and are smarter than the crowd. In fact, every bull market ends in their being swept away and seen for the gamblers that they are. You don't read much, do you?
"Economic value"??? In this market? You have no credibility after that statment.
Now run along back to Yahoo Finance and let the adults talk.
Oh look, another "sophisticated investor" who missed the gold train. Or perhaps just Roubini in disguise.
Keep telling yourself that, you might just end up believing it. Government deficits will DEFINITELY be brought under control and ALMOST CERTAINLY not just cynically monetized by complicit central banks.
given that I started buying out of the money gold options in early 2010 and have periodically booked profits, I beg to differ sir. Playing with the house money now. No sweat off my back if I get out a little behind Paulson.
The idea that the CB's of the world are working under is if we all inflate at the same time it'll be like no inflation at all. It's relative.
Of course ... the problem is insolvency is deflation incarnate.
The only way treating insolvency with liquidity works is if you steal from the solvent to give to the insolvent.
Everyone should see the KingWorld interview with Andrew Maguire. the PAGE could break the bullion banksters.
That dump today took the price to the (resistance now support) previous high at August 10 and bounced off the upper channel line created July 13 - 19, (confirmed Aug 3 & 4 and Aug 29 & 30)...the low of August 25 tested the parallel lower channel line...and this low bounced off the 20 day moving average...the previous sell off, the 30 day.
So, light volume to create three technical bullish signals...to me it is the only thing that makes sense...so I bought.
You won't know 'til you bet.
I see the same thing and so far the chart support at $1,840ish (Highs from 24, 28, and 30 August) is holding.
Trouble is, technicals mean very little when you have Central Banksters stomping around like a Bull in a china shop, manipulating the hell out of everything.
Nobody is prepared to BTFD just yet. The volatility this week gives the criminals at the CME all the justification they need for another margin hike. Buying won't resume until we see whether this is coming down the line or not IMHO.
Lots of technical arguments for the selling put forth in recent posts on Chart Ramblings.
http://chartramblings.blogspot.com/
the man from libya got his gold out (Niger) an now it is on the market...china will buy it up on the QT and he will get protection for he is an asset that china can use to get his oil back in a counter revolution. so until his gold is off the market expect some weakness which the fiat printers will use to back gold down prior to : Obuma's jobs speech. It will be inflationary and soon after gold gets a put. this will be fun to trade!
I think you have that backwards, the man from Libya got his gold out to remove it from the market.
I will stay physical till the end. What else can I believe in at this point?
I will stay physical till it's time to get out.
There are always alternatives.
Well it's simple this place is a fucked up lemonaid stand. They plant the fucking idiots. Grow the fucking idiots. Juice the fucking idiots and try to sell the juice to the smart people for thousands of dollars.
If the lemonaide stand re-opens. Then you are being governed by retards again and you should probably find a nice corner to hang out in till the retard wave falls again.
Want something to believe in? Believe in this. It's easy to make fucking idiots. By simply feeding them stupid juice of the lied to retard that came before them. Until the retards get overharvested and they run out.
http://www.commodityonline.com/news/Chinas-SGE-to-raise-gold-silver-marg...
"Print Baby, Print"...the German Court Rules:
"The ruling confirms our view that the German piecemeal approach on the debt crisis is not likely to change but eventually the German parliament will vote in favor of a second Greek bailout package and the beefed-up EFSF (euro zone rescue fund)."
Bankers score a victory over the German Peoples.
Incredible, isn't it? How in the hell did they ever talk the Germans into this? How is there not a revolution?
“The start of full-on currency wars has started in earnest,” It wasn't that long ago that "a race to the bottom" for curriency values around the world was being talked about. We're in the race now. As for the BITCHEZ manipulating the price of gold, eventually the holders of the yellow metal will win out.
James McShirley's (of the clan McShirley) thesis is that the cartel algos smash down gold after a >2% daily rise, seems to be reliable. He says the algos appear to be in charge of doing it automatically these days. (Interview series, video, with James Turk).
McShirley is an analyst who has studied the gold market over past 11 years (and before) with a keen eye to the cartel suppression schemes. The cartel keeps the gold price tightly range bound within the trend line, and a 2% daily rise is not allowed and results in a smackdown.
Key: He postulates that when you start to see rises in gold >3% per day, without an effective cartel response, it will be the sign the cartel is losing their control of the gold price and gold is about to explode.
Andrew McGuire (of the clan McGuire), the PM whistleblower, says the Asian market is ramping up this Fall. The Western paper gold suppression schemes are about to fail as the physical metal is offered and hoarded, with real audits and actual serial #s of your bars, at the Hong Kong facility.
McGuire says the highly leveraged paper gold will quickly collapse as traders defect to the Asian exchange, in short order. No pun intended.
So, be on the look out for those consecutive days of 2-3% rise in the gold price over the next three months.
Excellent post, although I can't agree the manipulation of gold prices is entirely automatic. They appear to use certain other factors like option expiration and psychological warfare in the form of leaks and margin hikes. I could be wrong and this could be coded, but hands on would probably be necessary form something as important as this.
What the fuck kind of world do we live in where printed money and bailouts equal prosperity? This is fuckin insane! These markets are nothing but a con game and these bankers will take down the world and laugh in your face. The people of Germany need to take to the streets and take back their country. Ditto for the American people.
Let the market cabalists play with the gold price. Pick your spot (dip) and buy physical. Every drop in price just lets the little guys purchase that much more!! It's very simple! Stand Up!! This thing is nowhere the near the end. Wait til the time when Gold has intraday $400 swings. Most will get sea-sick @ that point. You can't even see moves like this drop on the 5 or 10 year chart of gold. Even if gold goes to $1,600 or what ever!!
The president is going to announce all sorts of teleprompted phrases and promises to try and pump up the masses. I don't know anybody (and I know a lot of people) who really believe anything any politician says.
I guess the GenXer's were right after all, gov't should not be trusted, not out of fear but more like out of lack of intelligence. It won't get any better until a huge crisis emerges. Prepare and don't ever loose your higher faculties.....
I assume most of you realize that this blog is nothing but a gold pumping scam (look at the banner ads!) designed to enrich it's founder? He is ultra leveraged in his gold trade however hence the wildly disproportionate amount of coverage on the barbaric yellow metal.
This blog would get far more respect from me if it unconditionally banned all racist slurs.
Ban racistl slurs? Explain where that is legal in our constitution. We still have freedom of speech, writing and discussion, I know thats hard to believe with this group of comunists running this country, but its a fact.
I read pretty carefully and dee nothing that inapropriate, then again, its not for me to judge.
"this blog is nothing but a gold pumping scam..."
Ahhh this must be more "sarcasm". Ok, I get it.
That is a fairly dishonest statement.
This blog would get far more respect from me if it unconditionally banned all theotheris.
You are obviously ignorant and have no credibility. Please tune to CNBC and let them continue to do your thinking for you.
The ads are a reflection of the sites you visit, you fucking moron.
So if the ads are "gold pumping", then it's a reflection of your visits to Glenn Beck's site, in the hope you'll find something to rage about, you sad, sad case.
My ads are FX trading and fucking Ukraine "dating" websites. I guess I browse porn too much.
lol
good one
You are an idiot and have no understanding of how google ads work.
Clear your fucking cookies.
Just so your aware, the 'HOLDERS' of yellow do not set the price and in a down gold enviroment you will not be able to sell it for more than spot, contrary to what many of you believe.
Then you should DEFINITELY short it.
But something tells me you don't have the balls to do it.
bill1102inf
Are you trying to make any logical point with your truism?
What will the "spot" price be in the future as opposed to the past? Will the gold market always be "down"? Does the turnover and amount of currency in circulation affect the price?
So bill1102inf, how much are you shorting today?
Keep telling yourselves that nothing has changed. Your right, nothing HAS changed. Gold still relies on 'the bigger fool' to pay an ever increasing price for something thats only purpose is to get someone else to pay more for it.
You know nothing of history, money, economics, or sovereign debt. Would be wise to speak of things you have SOME knowledge of. Its hard to read ingnorance!
wow...that was ignorant on so many levels.
It's "The Greater Fool" theory you were trying to cite, and given gold's almost complete rejection by the investing public, I don't think it applies to the gold trade.
If you read anything about history, you would recognize that gold's primary purpose, throughout the millenia, has been to serve as money. Opinions based on the present have no perspective, that goes doubly so for opinions based on ignorance and arrogance.
Blanket troll statments without supporting facts makes you the "Bigger Fool."
Just for giggles: What were the last four books on the markets/finance/economics that you read? Do you read? How do you get your information?
Ya, general public completely rejects gold. That's why there are CASH FOR GOLD! shops popping up like weeds in every shopping mall in America. Replacing the CASH FOR HOMES! kiosks, if that's not too ironic for you.
I also love the "throughout the millenia" nonsensical argument.....sorry but I don't think there was such a thing as the Rule of Law or enforceable contracts in 450 BC pal. Not ones that the King or Ruler couldn't desolve instantly I'm sure. Nor could you show up at the local market with your chickens and ask the shop keeper to wire the money into your Chase account.
The metal is a barberic relic and has value only to the amount of economic use....<$1000 oz.
Ya, its been a 10+year successful marketing campaign to separate the sucker from "unwanted" gold... And progressing quite nicely.
In your case, let us hope the sucker, err public, gets this one right.
You are so right bill. And this place is just loaded with bigger fools too dense to appreciate the error of their arugments.
Yes there are big deficits.
Yes the Fed is printing money.
Yes the US has been devalued.
All correct but nowhere near the correlations to the meteoric rise of the Yellow Metal. Monkey Gold Bugs will get crushed!
I hope it jumps past $2000/oz that will be a perfect time to really short the crap out of it. And the best part is that since the rock pays no dividends there's no cost to it!
I bet you've never shorted anything in your life. All talk and full of shit. GTFO if you're so put off by ZH.
Everyone needs to read this decision and see what the court really said. This rulling will be overplayed in the sewers of the West to get stock prices higher before the clown takes the stage but this is not good news fpor the Euro Zone.
http://www.google.com/hostednews/afp/article/ALeqM5ib4RFzPGE1AuZJrk-8KRBmVEpOyg?docId=CNG.f1f5b8b061501ede51979a1e1f42063a.461
The problem is that wording such as this
is so open-ended that it will DEFINITELY be appoved, once the crisis sets in again. Euro bonds it is, I guess.
Southern Europe, toss your austerity aside.
Anyone considered the possibility that someone broke is forced to dump his liquid assets to settle something else?
How is the court decision sitting with the German people? What no riots? Bloody sheep.
SHOCKER! Studies Show Humans Tend To Be Sheep! News At 11!
Expect the criminal cartel at the CME to raise margins today, a day before Shanghi does to further hit Gold. That is what they do in communist coutries like this so get used to it.
You "GOLD BUGS" are about to get slaughtered. The 10 year bull market is finally over.
good luck trying to tell that to the Indians and Chinese who are buying even more of it at every dip.
you are forgetting that 20 years ago these people couldn't buy even if they wanted to and now they can and they certainly want to!
DavidDavidDavidDavid (ad nauseum)
I've said it to goldbug and troll alike...
Secular bull markets (which the PM's are most clearly in) always last more than a decade...We haven't even seen the 3rd phase of this fucker yet!!
Most of us here (but I can't speak for everybody.. but fairly confident) are licking our chops at our new entry points..
If the general equity markets were in a secular bull (which they are not) Most of us here would be riding that instead...
Just because you don't have any PM's
Violins for ya bro'
They aren't bugs David, they are monkeys who mimic their masters. The masters are Tyler Hedge Hog and John Paulson.
MillionDollarBonus.....
Should spend some of that on a Brain....
Sure gold will correct here, however it will move on ahead and break through $2000, very possibly within the next couple of months.
Having said that, I truly wonder how many people here whom are uber-bullish on gold will know the right time to exit this train.....