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Gold Fell 2.96% Last Week – Further Falls Possible But Downside Limited
From GoldCore
Gold Fell 2.96% Last Week – Further Falls Possible but Downside Limited
Gold has fallen in U.S. dollars and in most currencies but is higher in Swiss francs due to concerns of fees on Swiss franc deposits. Asian (except for China’s CSI300) and European equities are higher as investors judge the recent sell off as excessive. Risk appetite has risen on hopes that the U.S. and global slowdown will not be sharp.
Gold is trading at USD 1,818.80, EUR 1,254.10 , GBP 1,110.90, CHF 1,482.50 and JPY 139,340 per ounce.
Cross Currency Table
There is no London AM Fix this morning with London closed due to a holiday. Friday’s London AM Fix was USD 1,787.00, EUR 1237.10, GBP 1094.17 per ounce.
Sterling did not see weakness despite U.K. house prices falling for a fourth month in August. Property researcher Hometrack said demand for homes may weaken further this year due to “weak consumer sentiment, pressure on household incomes and the uncertain economic outlook.”
U.S. personal income and spending are at 1230 GMT and pending home sales are at 1400 GMT. ECB President Jean-Claude Trichet takes questions at 1300 GMT from the European Parliament's economic committee in the first of a two-part hearing on key issues facing the euro zone.
When the dust settled on gold’s volatile week, despite much “noise” from uninformed commentators, it showed that gold fell 2.96% on the week. This must be put in context.
The previous week alone gold had risen 6.2%. Despite the 3% sell off last week gold remains up 11.6% in dollar terms (and by similar amounts in other currencies) so far in August with just three trading days left in the month.
Meanwhile, global stock markets are down by similar amounts in August, with the FTSE down 11.7%, the DAX down 21.6%, the S&P down 8.95% and the MSCI World down 10.95%.
Thus, gold has again proven its hedging and safe haven status.
On Friday, we looked at the very robust demand being seen for physical bullion internationally as seen in tight supplies and good premiums, particularly in Asia. Physical demand is a primary importance to the medium and long term outlook for gold and silver bullion.
To get a read on the short term outlook for gold and silver it is beneficial to look at the data released from the U.S. Commodity Futures Trading Commission late Friday evening.
It shows that in the week ended August 23, hedge-fund managers and other large speculators decreased their net-long position in New York gold futures.
Got Gold Report - Weekly Closing Table
Speculative long positions, or bets prices will rise, outnumbered short positions by 187,681 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions fell by 12,405 contracts, or 6 percent, from a week earlier (see chart below).
Gold Large Specs, Futures
Miners, producers, jewelers and other commercial users were net-short 230,436 contracts, down 18,411 contracts, or 7 percent, from the previous week (see chart below).
Gold Commercials, Futures
In the silver market, hedge-fund managers and other large speculators increased their net-long position in silver futures, according to the CFTC data.
Speculative long positions, or bets prices will rise, outnumbered short positions by 27,011 contracts the COT report showed. Net-long positions rose by 5,083 contracts, or 23 percent, from a week earlier (see chart below).
Silver Large Specs, futures
Miners, producers, jewelers and other commercial users were net-short 47,099 contracts, an increase of 6,418 contracts, or 16 percent, from the previous week (see chart below).
Silver Commercials, futures
The data shows that sentiment in the futures market towards both gold and silver remains muted with very little evidence of participants ‘piling in’ on the long side.
Indeed, it shows that the sharp margin increases seen in silver and the margin increase seen in gold last week have had the desired effect of cooling sentiment thereby making the fundamentals in both markets sounder.
The COT data in conjunction with very robust physical demand globally and especially in China (see news) means that any correction is likely to be shallow and short prior to the primary trend reasserting itself.
Gold and silver are now entering their traditionally strong autumn months which will be supportive.
Not to mention the appalling economic, systemic and monetary backdrop which will also be highly supportive.
For the latest news and commentary on financial markets and gold please follow us on Twitter.
NEWS
(Bloomberg) -- Gold Drops as Bernanke Says Growth Intact, Offers No Additional Stimulus
http://www.bloomberg.com/news/2011-08-28/gold-advances-on-haven-demand-as-bernanke-offers-no-fed-stimulus-plan.html
(Reuters) -- Spot gold falls 1 percent after strong rally
http://www.reuters.com/article/2011/08/29/us-markets-precious-idUSTRE7781Q420110829
PRECIOUS METALS: Gold Lower In Asia On Profit-Taking; Downside Seen Limited
http://online.wsj.com/article/BT-CO-20110829-700891.html
Russian Central Bank to Offer Gold-backed Loans at 7%
http://af.reuters.com/article/metalsNews/idAFL5E7JQ0Q020110826
Record Prices Spawn New Wave of China Gold Bugs
http://www.cnbc.com/id/44310779
COMMENTARY
(The Telegraph) -- Ambrose Evans-Pritchard: Euro bailout in doubt as 'hysteria' sweeps Germany
http://www.telegraph.co.uk/finance/financialcrisis/8728628/Euro-bail-out-in-doubt-as-hysteria-sweeps-Germany.html
(The Telegraph) -- Time to quit the gold party?
http://www.telegraph.co.uk/finance/personalfinance/investing/gold/8725818/Time-to-quit-the-gold-party.html
(The Independent) -- Shane Ross: Worth Their Weight in Gold - Gold Bugs Were Right After All
http://www.independent.ie/opinion/columnists/shane-ross/shane-ross-worth-their-weight-in-gold-2859834.html
(ZeroHedge) -- It May Be 2008 All Over Again, But There Is One Key Difference
http://www.zerohedge.com/news/it-may-be-2008-all-over-again-there-one-key-difference
(ZeroHedge) -- Europe's Funding Scramble: Peeking Below The Calm Surface Waters Of French Bank Liquidity (And Lack Thereof)
http://www.zerohedge.com/news/europes-funding-scramble-peeking-below-calm-surface-waters-french-bank-liquidity-and-lack-there
(Mish’s Global Economic Trend Analysis) -- Capital Flight Proves Confidence in European Interbank System has Collapsed
http://globaleconomicanalysis.blogspot.com/2011/08/capital-flight-proves-confidence-in.html
(Financial Times) -- Wolfgang Münchau: Even a Joint Bond Might Not Save the Euro
http://www.ft.com/intl/cms/s/0/0c3709ac-cf2d-11e0-b6d4-00144feabdc0.html?ftcamp=rss
»
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Silver volume is down 40% this year. I think the next biggy will happen on that side of the bus while gold pauzes at bit for it's next jump.
The gold trade is posted here.
http://capital3x.com/?p=481
Analysis for subscribers. The weekly charts are strong
http://capital3x.com/?p=470
If you purchased 1 oz of gold one year ago and sold it today you would have made $578 fiat dollars.
If you bought 100$ worth of silver 1 year ago, you'de made 127 dollars profit and 227$ in total.
Gold still looking overbought technically, but relatively the miners are cheap!
http://www.bullionbaron.com/2011/08/gold-miners-about-to-breakout-to-new...
Don Coxe supports more bullion miner exposure vs bullion.
http://goldandsilverlinings.com/?p=1588
good time to DCA and buy the dips.
Gold is an excellent investment and is absolutely not overbought in physical form. This will buy you your island paradise when everything melts down soon.
My .00002oz
http://www.singledudetravel.com/2011/07/gold-and-other-investments-for-the-single-dude/
I'm beginning to feel this is a buy only gold site. Say it isn't so. I'm yet to see a hateful post about gold. Just an observation since I get red beans whenever I post about my few long positions on the indexes when an oppurtunity arises. I go the other way too damit! lol /rantoff
that's not what it is.
Most people who read ZH know that the currencies are already dead and that there is a need to change your currencies into something real. And gold/silver just happen to be a great deal at this time.
2008: A rush to the USD and treasuries
2011: A rush to Gold and treasuries
How long before the USD brings down treasuries? Gold supplanting the USD as the go to liferaft is a watershed event. You don't run to a bubble for safety.
Mostly yes, and us ZH's are not put off whenever there is a wee drop. It is only the uninformed that are against gold....and there are perhaps not too many of those around here.
I came to ZH via FOFOA, so yes, I fully qualify for the no bad posts about gold....but why would I slate it anyhow, when it has made me more money these last years than all my other "investments" combined??!
Go Go Gadget Gold!!
why would anyone "hate" a lump of metal? Take your time answering, think about it.
The buy and holders amongst us love gold and silver because of the obvious trends.
The traders among us love gold and silver because of the predictable price action.
There are two kinds of traders in this world. Those who try to predict the future, and those who know all markets, on all time frames, are manipulated, and these second kind of traders spend all their time looking for scams, and trading with the winners.
Most people fall into category #1. They read a few books, take a class, and then go out and blow out a few accounts, thinking they are trading a market. Unfortunately, there is no such thing as a market where pure supply and demand control price action. Most give up. Some wise up and become the second kind of trader.
Those remaining few spend most of their time looking for a scam to trade. They may not give a hoot about the fundamentals of PMs, but still love gold and silver because what is going on is so apparant. The central banks have to buy gold, but that buying makes it increasingly difficult to suppress prices, leading to violent price corrections and gamesmanship that can be traded.
What's not to love?
That’s fascinating man, you're a very knowledgeable guy.
Agreed...buy and hold physical due to long term trends and trade paper short term to gernerate funds to purchase even more physical.
Neven in my life have I thought this (and I speak as a holder), but this kind of comment screams "bubble top." It can only go up? You can even use profit in trades for it to buy more of it?
I'm not selling, but geez, haven't I heard this before?
well youand alot others are fairly new to zh. there has been much gnashing of teeth and fight club mentality on the subject. for most, es is like a volcano erupting, pretty to watch but theres no way in hell you wanna get too close let alone play in the magma. if youre looking for insight in trading in this environment, may i suggest reggie middleton and boombustblog. and to be clear this is a physical only kinda club..othher options open you up to counterparty risk
I would counter that most people on this site are not trading gold futures. Therefore, it is easy to believe it is a long only site, because the long term outlook for gold in our disfunctional global economy is a no brainer.
There were plenty of warnings from our more technical minded readers, as well as the traders amongst us. Options expiry, Jackson Hole, overbought prices after a meteoric rise, the indications were there.
Others just took the hit on the correction due to their unwillingness to get tricked from obviously manipulated price action. The lesson in May was you will give back profits, but a buy and hold will work with gold.
Many of us are PM holders and don't really care what the paper price does.
I didn't see any negative replies to people who posted that there would be a correction. I only saw negative replies to those with their heads in the sand who considered gold and silver prices like they were just some tech stock in 2000. Clearly the fundamentals of a bankrupt world economy, banking system, housing market, and job situation deserve a little more reflection that just announcing, "It's a bubble."
Ignorance, combined with arrogance, in ZH is like poking someone in the chest in Fight Club. It invites attack.
I would absolutely sell all your gold and silver.........under these conditions:
1. When the US Debt under $1 Trillion
2. When you stop 10K baby boomers from retiring every day for the next 20 years spending less, pay less taxes, using more entitlements
3. When housing is fixed
4. When the banks are fixed
5. When commercial RE is fixed
6. Consumer debt is fixed
7. Europe's problems are fixed.
8. When Fort Knox and the FED are audited and the FEDs powers are curtailed.
9. When Keysesianism is ended! (or modified, if that is possible)
.........I'm sure I left a few out...........
So trampstamp, gold is just a symptom of the problem, it is wrong to focus on it. What you're asking is analogous to going to a disaster website and telling people on it not to talk up insurance.
Of course I understand if you're trading paper products you need to be more nimble, but most people here are more concerned with physical gold and silver and we are far from the point where anyone should consider getting rid of those.
Agreed.
Add unemployment to the list.
The baby boomers retiring and spending less is an issue, but they will be replaced in the workplace by the horde of unemployed.
The real issue with the baby boomers is they will absorb more government assistance in the form of Medicare and Medicaid and Social Security, AND they will sell their investments to maintain their standard of living.
Yes.........how could I forget unemployment!
What I find remarkable are these hordes of people with these nice cushy pensions going out into infinity..........and most of them, be they public or private, are massively underfunded, and the underfunding will only get worse. Something will have to give....................yet many of these people think these pensions are untouchable. Being a little younger I somehow knew there would be nothing left when I retired and that the locust horde of baby boomers would have devoured most of it.........so I have always planned on funding my own retirement, and investments in precious metals and their associated stocks, derivatives have greatly helped me to get closer to my goal.
I wish I woke up earlier like you, but better late than never.
One central pillar of retirement planning that I never hear discussed is health. Once your health is gone, your finances soon follow. I figured that one out a few years back and changed my lifestyle. Cutting out all sugar, limiting simple starchy carbs, and running and lifting weights a few times a week is all that is needed, and it's free. It could add years to your work life, and prevent millions in medical bills that could wipe you out.
mrgneiss@08:53,
Surely you jest!!!
< What I find remarkable are these hordes of people with these nice cushy pensions going out into infinity..........and most of them, be they public or private, are massively underfunded, and the underfunding will only get worse. Something will have to give....................yet many of these people think these pensions are untouchable. >
You think the POLITICIANS alive, retired, will actulally LOSE THEIRS?, I know thats who your talking about right?/sarc
Damn truth they WILL NOT, plus their 100% salaries.
(Jus usn's Po Fok, who paid it IN,duncha git whur ah r-uh cummin from??)
Smiddy@08:34,
Your one of the good guys here, and I esp like your handle and your posts, but
Please,
boomers will absorb more gub assistance.
NO the FK 99% will not, they will GET a return on their INVESTMENTS.
Over their lifetimes, I get so sick of if this FREE shit mentality about Boomers, as if they are ALL the something for nothing crowd.
The poor bastards worked / paid for it.....................it's not fking HANDOUT.
/Rant off
As a 62 year old, I'm absorbing your comment. It appears that the money the retirees paid in was skimmed and spent by the various government a-holes who "served" over the last several decades. Where did the money go? That's a dissertation unto itself. It cannot be denied, however, that the "benefits" accrued to all the population, so that would include the younger people (below 40) who post the vitriol here against the "seniors". So, some portion of the money got spent to their benefit. What did they do with those trickled-down benefits? Buy more i-Crap (which we laid the technological groundwork for). Can we have it back now?
RockyRacoon,@10:58,
Sir, we are close to the same age group.
That said, I (and the main reason) get So pissed about this issue,is that the few punks here that feel the way they do, are the really SELFISH one's.
They cannot/will not grasp the facts that WE paid those funds in for OUR benefits and the Guardians of them Gates fkd us,and them.
WE are not stealing or taking anything from them, that was not TAKEN from us.
Right,wrong or whatever IT IS WHAT IT IS.Want to be pissed, do not take it out on those Boomer's who built this frigging nation.
Our .Gub, can give away trillions, and spend like drunken sailors on everything,and anyone else but us but WILL NOT accept the responsibility they are SCREWING everyone.
WE had NO control over their decisions or waste.....none.Did anyone from the Whoredom of D.C. call you and ask your decision/s before they did what they did, or DO?.
Hell no.
So..............WHY are we to blame.
IF you murder someone, is it my fault?,same damned thing. NO
Nuff said this is so O.T........................Sorry fellas.
Excellent points all Mrgneiss and SW...
The Fed needs be done away with... Blowing serial bubbles is nothing more than serial rape of not only the US but the worlds workers...
Gold/PMs are the only safe havens to escape from bankers set free to break laws at will and plunder at will...Said bankers aided by pols and the central banks.
So gold/silver go down some per centage? So what? The fundamentals that continue to drive gold higher have not changed and will not change.
Paper players... you are on your own and in a different catagory than physical investors. Good luck to you.
Bad Au. Au is BAD!
"but is higher in Swiss francs due to concerns of fees on Swiss franc deposits."
More excellent "intervention without intervention" from the SNB!!
My postitioins were not affected. Still have all the gold, silver and mining shares today that I had on Friday. The only change that I plan on making anytime soon will be to ADD to my mining shares. The economy, globally, is a disaster and until it shows signs of actual recovery, nothing has changed. Europe is a mess and the US is a bigger mess. No leadership anywhere to be seen. Only elitist a#%holes running the show. Can't eat any of these barbarous relics, religions or "not money", however, in the near future you will be able to exchange them for farmland, secure water source and weapons, period.
Buy greek stocks for hedging
www.bloomberg.com/apps/quote?ticker=ASE:IND
(it's transitory)
Who gives a shit what Gold is going to do in the near future. Year from now you'll laugh why people wasted time trying to second guess the next move. Price of Gold will be going up. It's just anybody's guess how high. That's all you need to know.
People who call this a gold and silver long only site are also tacitly comparing ZH readers with the sheeple who buy and hold stocks. However, believing in a once in a lifetime trade is PMs in the face of a financial hurricane is something very different than accepting the financial community's propaganda that they are worthy of our blind trust. It is an entirely different situation.
It may appear that everyone is always bullish on gold when many ZH readers hold PMs, and are therefore long only, and trade, where they are neutral, or as neutral as you can be in such a powerful trend. When someone is discussing physical, don't assume they always trade on the long side.
When the hell is banksterland going to become zombieland??? Why is this taking so long??? Fucking never ending drama!
Continue to stack and practice patience... Patience is a virtue and usually well rewarded... so many jitterbugs run hither and yon and never establish a solid physical position, jumping in and out, paying fees, taxes, and consuming large quantities of Malox... Trying to time the market is usually a fools errand, and usually based on reading into goat entrails what ever is desired by the reader...Not so far removed from astrology.
Gold, for it's many virtues, does not have brains... So we have to provide them.
Jesse Livermore: 'Be right and sit tight'...
and good luck PaperBugsBurn...
Gold was up 3%+ on Friday. Should expect to see a McShirley predicted smackdown post any >2% gain. We'll see how his theory plays out. I suspect he's correct. Gains in gold over 3% are indications the cartel is losing their control over the gold market price.
Interesting anecdotal print story from London and about London area jewelers and how they are being effected by new higher gold prices... Couple of short paras here... Gist of the article: Gold is continuing to migrate West to East... and, many old line London jewelers are struggling...
"Investors may be enjoying their longest winning streak since 1920, with gold, which was £188 an ounce in 2001, finishing the week at around $1,780, but the high price does not reflect rocketing demand for bling. Demand for jewellery from India – the biggest buyer of gold – and China is strong, but in the US and mainland Europe, people are selling their gold."
"The industry's business model was already in flux, as in recent years the mass production that used to take place in the UK has been moved to cheaper production centres in the Far East; the manufacturers that remain are now smaller outfits with high design credentials who can still reel in shoppers.
Goldsmiths are also cutting their cloth to fit, working with nine- rather than 18-carat gold or making lighter "hollowed out" designs that are more affordable, says Hughes."
...and about Indian wedding season...
"India is the world's biggest jewellery market and the wedding season, which has started in Britain, is another factor fuelling the heady gold price. And only the best will do. "It has to be 22 carat, it's tradition; we never have nine or 14," says her colleague Harbinder Sisodia.
With some Asian weddings lasting days, a celebration can cost up to £60,000. The occasion calls for serious bling and from the jewel-encrusted tikka adorning her forehead to the rings on her hennaed fingers and toes, bridal jewellery can account for £20,000, say the women."
http://www.guardian.co.uk/business/2011/aug/26/goldsmiths-struggle-in-gold-price-boom
There are two explanations for this Snidley.
1. China is thumbing its nose at the central banks, who are conspiring to hold down gold prices and slowly acquire gold buy opening its own exchange, and China is buying as much as it wants rather than what was allocated to it by the central bank agreement (and there must be an agreement if they all started to buy at once) and telling THEIR citizens to buy.
2. Instead, or maybe in addition to #1, Western nations have agreed to the above and agreed to discourage the purchases of gold by its citizens so the standard of living in the West is lowered. If central banks want to institute a viable global economy NOT based on fiat USDs, they need trade to be more balanced. That can only be effected by lowering Western standards of living and raising Eastern standards of living.
If we go to a gold related monetary system, and the price of gold is ramped to the sky, the banks become solvent, and the holders of gold have their standard of living increased exponentially. The only losers are those without gold.
Smiddy @09:15,
"If we go to a gold related monetary system, and the price of gold is ramped to the sky, the banks become solvent, and the holders of gold have their standard of living increased exponentially. The only losers are those without gold."
Personally, I have a different take on this, and hope I am incorrect.BUT,given the propensity of our Illustrious ,Gubs, IF this scenario were to play out, I am almost SURE we will be relieved of said items,or if we choose to not let go, it will have to be buried, and or taken out of the USSA, to get anywhere close to true value elsewhere.
As we ALL know, they tend to only ALLOW certain classes of folks to PROFIT in huge ways.
PS: I pray I am incorrect,but after watching, and living thru their crap for decades, this is their MO.
The gold bubble is happening nicely almost exactly in a way I predicted in the chart on May 4th, 2011, here:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&sta...
Correction time is October 2011.
A little O/T but I was watching "Gone With the Wind" this weekend. There is a scene where Belle Watling is making a donation to 'the cause' and is having conversation with Melanie Hamilton and Scarlett. Anyway, Melanie opens the handkerchief (gifted from Belle) and exclaims: "look it's gold coins not confederate paper money."
This just struck me as appropriate for our current state of affairs; thought I would share.
I still have Confederate Bonds issued by New Orleans Mint and Confederate Fiat issued by the NO mint. This paper has been handed down in my family for generations and I will be leaving it to my kids...along with the story that goes with it.
My family did not pour all their resources into Confederate paper, but buried some gold as well. After the Cilvil War ended the gold was used to restore the family enterprise and it flourished.
Had the family not had gold they would have been destitute, as many were...and restoration of the family enterprise gave jobs to many that were starving.
Gold doesn't have brains... We must think for it and deploy it wisely and at the right time.
It is a moral obligation upon those of us that study these matters to prepare for these once-in-a-lifetime events so that we can provide for our loved ones who don't have the aptitude, vision, or desire, to understand these matters and prepare.
It is our duty to leave our money to the children or grandchildren who get it so they can do the same for the family if they are unlucky enough to live through similar hard times.
It is also our pleasure to say, "I told you so" over, and over again.
Masterfully done, Sir.
In so few words you have captured the essence of my motivation to buy and hold. It really is all about what you leave behind, because you can't take it with you. Building a trans-generational position cannot be gainsaid by anyone foolish enough to trust in Governments or CB's. Their "winter of discontent" will come.
Hats off to you too Snidley.
Snidley, Very interesting story. Thanks for sharing.
+ $1800 and a green.
Wonderful story about your long term thinking ancestors. Excellent, thanks for sharing!
Gold really SHOULD BE thought of as multigenerational, sitting quietly through time (FOFOA). This kind of thinking is apparently common in Europe, which historically has had more strife than the USA.
The (physical) gold I have will be GIVEN away to my kid (or better yet grandkid(s)).
HURRY!
HURRY!!
SELL ALL OF YOUR GOLD!!!
HURRY!!!!
SELL ALL OF YOUR GOLD, AT A DISCOUNT.. TO ME!!
HURRY!!
HURRY!!!
BEFORE IT IS TO LATE!!!!
Looks like we are desperate to erase some of those August losses before the end of the month. Watch out gold traders.
Latest Martin Armstrong (8/25/11)
http://www.send2web.com/files/Gold%2008-27-2011.pdf
Gold Dodged the Bullet
The sharp decline in gold held the first key support at 1730 for the close. Closing resistance is now building at 1825 and support at 1717 on a daily basis followed by 1680 for next week with the big support down at 1605 on a weekly closing basis. We are at the extreme of the general momentum to the upside indicating that a pause is likely. However, volatility is going nuts off and on between now and next June. This November appears to be highly volatile in all areas, not just gold.
The fundamentals of course have not changed. The likelihood of Europe solving the problem is by no means assured and quite frankly impossible under the current plan.
What makes markets go up and down is NOT the fundamentals – it is people. Between 1970 and 1974 gold rallied from $35 to about $200 on the same default-Fiat hype. Nothing changed, but gold fell into 1976 to $103. Then it rallied to $875 into 1980. There was NO change in the fundamentals. The only change was gold was legalized in the USA for 1975. Europeans in anticipation expected Americans to line up and buy gold bars. When that didn’t happen, gold crashed between 1974 and 1976. Economically, everything had been the same. So trading fundamentally is just NOT reliable. Sounds good, but the rhetoric confuses long-term with short-term.
The main monthly support lies at 1560-1575 for September and quarterly support lies at 1480-1450. Therefore, gold has not been broken yet. Next week the range to watch is 1825-1680. If gold can hold the low intraday of this week 1701, then gold may survive building a sideways pattern above 1480-1450. Moving to new highs is possible with November being the 11th month and next quarter being the 43rd. That would give us a spike high above $2400 area, but at the same time, it will open the door to a more pronounced drop in price with claims the Sovereign Debt Crisis is over. That is not likely without major reform and the politicians will not tackle that until there is no other choice. Watch NOVEMBER!
All respects to Martin, but I believe the current situation is very different than it was in the 1970s.
Central banks are buying and the global economy is destroyed. Yes, they can kick the can for a while longer, but the status quo is done. The money they have thrown around to buy time, rather than take any steps at all to fix things, has sealed its fate.
I believe Martin would reply that, while both eras have their own unique qualities, the commonality is falling confidence in the central authorities and the central banks, which lead to a move from paper assests to hard assets. Notably in both cases the primary hard assets being gold and silver.
Thar she blows, Gold takedown as predicted.
This is a re-post...
but the thought in bold letters is why I re-posted, see if you agree and / or can wrap your head(s) around the fact(s).
Germany is failing..
which would have helped keep CONTAGION from Europe spreading to the United States.
The U.S. has a continuing Depression..
which NONE! of the Structural Issues have been reviewed and / or fixxed.. Think Investment Banks Gambling with CD's from the retail side..
China has just implemented a TRUE! Gold for Renminbi Settlement Window..
and the Chinese know there World is faker than fake, thusly they have been moving money off shore and buying as much Gold and silver as they can find..
QE3 is on deck..
But Gold is going to trade down?
the only reason gold is down now is because the FED bought Gold Down with Tax Dollars like they always do.
How is this even a topic for conversation?
AND!!
You cant eat it, BITCHEZ!!
ZH top ticked at 1911 and now famous last words.. shallow and short.. Gold down 50 bucks and its nt even snack time yet.. Of course its all relative.. is a 600 dollar retracement shallow .. I think we shall see as you get folks back in tooo early.. gold trading is nt immuned as you keep prognosticating.. and we experience days like today where another down 100 plus day is very likely as your bullishnesses continues to be blindly optimistic..
some of the Gold Bugs.. will of course be angry that you are mentioning a lower price for Gold..
I only buy on down days.. my cost average... well lets just say that I hope you are right and it drops $1,000 or 2 dollars below its price right now.
the more that Gold is forced down.. the more it pops thru the channel.
It is funny that all of you pros who chart never take into account why Gold Blows out of normal (manipulated) trading channel, ALL THE TIME!
it is even more funny how you expert chart readers, NEVER.. EVER mention how much downward pressure Gold sees?
it is always a BIG / HUGE Suprise when Gold moves northward..
why? how can it be a surprise?
I mean for a Pro-Chart Reader, how can it be a surprise?
ok. if u say so.
Jim Rickards tweet from last week : "my long-term $7k/oz gold call is not a prediction - it's a warning. When it happens, the world will be a different place."
Another opinion from Mr. Clive Maund......................
Bitchezz,get ready to batten down de hatches/jump ship, etc, if this happens.
http://www.kitco.com/ind/maund/aug292011.html
Special attn,to last 2 or 3 paragraphs.
Gold has tremendous value. Unfortunately that tremendous value is probably half of what it is trading at today.
Look for $1000/oz or less in the next 18 month or so.
Hope it continues to fall for a good while... and stops being front page news..
Then the juniors can get hit more and I can back up the truck..
goldengrowth.blogspot.com