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Gold Soars As Trading Reopens, Hits $88 Away from $2000
We may have been pessimistic with our assumption that gold would reach $2000 in under a week. At the rate it is going, it may get there tonight: upon reopening, gold immediately soared from just south of $1900, to a new all time higher of $1912 as pent up buying interest took out every offer in the market. This time around silver is not far behind and after many were staunchly pushing shorts around the $44 price, the metal also snapped above the $44 barrier. The only question we have is whether the CME will hike margins before or after gold touches $2000. Since the stop loss orders there are likely quite aggressive, we hope our Comex friends would push gold a little lower before it takes off for its next target 5-digit target. Incidentally, those who are long spam and short gold may want to consider unwinding that trade at this point.
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Unleash the Kraken! (Oops, I meant the mighty Venezuelan Navy!)
Japanese said to be SELLING as fast as they can..............if it's Gold, their dumping at these prices.
Current rate of 1.34B per day being bled back into the market.............
Source?
http://www.ft.com/cms/s/0/01eef004-ca5f-11e0-a0dc-00144feabdc0.html#axzz...
That's good.
At these prices I would sell too. (And did.)
Back down it goes.
If it keeps going UP and SILVER hi ho and awaaay... then well... paper money is easy to swallow these days.
All these panting buyers afraid they are missing the train.
The selling is to raise cash to accumulate more on the next low that is coming like a tusnami.
It's really interesting. Just last sunday no one bought at 1650 and 41.50 now you could not keep up with both the asks and bids.
Ebay is probably prying money from those sheep who dont know better with 100 dollar silver and 2500 gold.
Gold is overbought. I would expect a margin hike by tomorrow.
No, ZH is 100% correct, 2000 stop knocked out then a margin hike. Gold should settle into range trades. Mid week selling on indexes (like the last few mths) EZ/US and gold will be bid. If crazy man Bernanke hits the QE3 light button, gold will be bid. If the Libyan crazy ass bandits set off a nutso power vacuum after the insane Gaddafi goes, oil should be bid...and yes gold should be bid too.
It's a beautiful world
Well, appears something has ALL metals in the RED, what news hit?
Gold back to $1890's), and Silver $43.50.????????????
Maybe the Japan news has hit, or the profit taking has begun.
The profit taking has begun. It's transitory and required for higher prices.
Let's see. 19 Asks totaling about... roughly 1000 silver. Nothing much above 46.
120+ bids in blocks of 2,3 4 and 500 or more per at 45.70 and straight down in pennies as they compete.
By morning some of those folks will be plowing the 20K or more they realized from these bids when they execute. Back into more cheap metal.
Last time it did that was when it passed darn close the 50's and someone decided to move the sun closer to the silver prices.
If gold is in a bubble, why are the Canadian juniors down 50% from January and haven't even had a ded cat bounce. I seem to remember theglobe.com with a $1 billion market cap during the Nasdaq bubble. Most gold juniors are under $1. Understand history before posting bubble nonsense.
As a gold bull from 2001, I have now sold every ounce of physical gold above $1,900 and await the CRASH to $1455 (or below). 98% bullish concensus is over-the-top confirmation that a correction is needed in order to flush the late-longs out and return the market to relative health. Still hold the larger physical silver position looking for $45-50.
I have sold naked puts on Barrick and Kinross looking for the Seniors to actually RISE into the physical correction...
Forgive me, but I just got a stiffie... Please, please crash... If you are right, I hoist a Guiness in your honor. More PM's for me!
I have enjoyed being in DGP and AGQ, thanks Hugo.
The paper receipt markets are 100 to 1 versus physical according to CFTC comments but most do not stand for delivery. Amazing that I have to let them know, but this is not wheat or oil in that everyone including individual investors can all take delivery. The less trust in the system (liquidity, solvency, corruption), the more people want an alternative.
Volker knocked down gold prices in the 80?s by raising interest rates to something like 20%, but with rates locked until mid 2013 there will be no opportunity costs related to interest rate risk (why go into short term debt or cash – the interest they are paying you on those intuitively states that they are not worth much). They don’t need your savings, they can just print more – that’s the blind spot of being an ivory tower ivy league academic – ask a former CFO. No risk of inflation signaled by ZIRP suggests no urgency for borrowing and capital investment to lock in low rates, but discount rates should be low for those following the formula of WACC and that should support stocks once the lack of QE and recession is priced in. What is good is bringing some certainty to businesses beyond one year, we need a really long term plan agreed to boost confidence. We need a final decision on ObamaCare from the Supremes and some job stimulus program that has tax incentives tied to US job creation. Interest rates and savings rates are upside down relative to true inflation rates, the system is only being used to save the banks at the expense of everyone else. Zero percent borrowing for P.D.’s and 30% interest rates on credit cards is the tale of two cities: Detroit vs. N.Y.N.Y.
Because of European bank problems, BAC problems, and Venezuela physical is getting harder to secure. They will increase margins as well, but the last one had very little affect, and the higher the margin goes the less they can impact the price with leverage to drive it back down.
Gold is like the sun, and silver like the moon. I like them both. The famous line from the ’81 movie rollover is “gold just went over $2,000?, …”that will be cheap by tonight”. Gold is looking like a giffen good, and silver is a worthy substitute that will have more mass appeal due to price.
I predict we hit just under $2,000 and it falls back somewhat with margin increases in an attempt to knock it back similar to what happened with silver at just under $50. It's a psychological level, and it's quoted in the movie Rollover in the quote above.
Here's my scenario: Similar to May 1st attack on the death of OBL, it will be announced shortly that Gadafi has been captured at the same time that Obama launches a jobs stimulus program, Bernanke does stealth QE, and Congress agrees a long term plan to cut back the deficit gaining an S&P credit upgrade to AAA. Gold pulls back, market rallies.
I also have cash in USD and hope we are on the US Dollar Reserve for the next 50 years as it is a benefit for our standard of living.
Even RE agents buying gold:
WSJ:Los Angeles couple Chantay and Conrad Bridges watched the price of gold rise for years but never invested, afraid they would be buying at too high a price. But recently, as gold notched new highs, they—like many investors—changed their minds. "The dollar is losing its value and if we're going to do it we might as well do it now," says Chantay, a real estate agent.
The market upheaval of recent weeks has even the most skeptical investors rethinking their strategies, and gold's relentless climb—it closed yesterday at $1,888.70 per troy ounce, up another 2.15%—has been fueled in part by ...
http://online.wsj.com/article/SB1000142405311190332790457652446149217784...
I may look to short gold at $2280 since it makes a nice Cup of a Cup & Handle pattern in inflation adjusted dollars going back to 1980. In either case, anything going parabolic never ends well.
Enjoy the ride.
Physical delivery numbers tell a tale of what is coming.
stocks will fang it south next session. then you get your gold 2000.
Central Banks with very strong currencies in Asia aught to be looking very seriously at gold after the rout of the Vietnamese Dong on gold buying concerns. I would be looking for the inflation-adjusted high with 1980 at this point, before a correction in the all-one-market. As some pundits would say, Gold is the last to rise before a correction.
Size of Gold 'Bubble' Now an 'Absurdity': Analyst
WHAT are they gonna say when it gets to $3000/Toz? "Any day now, that gold bubble iz gonna pop..."
My view on pm's (gold and silver) is that prices are going higher, much higher eventually. In the process, we are going to see higher volatility. We are going to enter days when $50 moves will be the norm. Short term the direction of the market is a tough call as I can't imagine Bernanke announcing QE3 this week, but who am I to know. If he does that, then we are going to fly.
Early morning smackdown in progress....... Gold below 1880..... oops. That didn't last long.......
funnny how A...x and other 'open all night' sellers are not dropping spot prices as fast.
But someone's buying the dips- back to 1885 and time for me to go to bed.....
http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-get-12-billion-o...
Thank God there are still plenty of idiots out there...