Has Bernanke Become A Gold Bug's Best Friend?
Below we present the indexed return of ES (or stocks) and of gold over the past 24 hours since the Bernanke announcement of virtually infinite ZIRP, and the latent threat of QE3 any time the Russell 2000 has a downtick. It is unnecessary to point out just when Bernanke made it all too clear that the Fed has nothing left up its sleeve, expect to directly compete with the ECB over "whose (balance sheet) is bigger," as it is quite obvious. What is not so obvious, is that for all intents and purposes, Bernanke may have unwillingly, become a gold bug's best friend, as gold (and implicitly silver) has benefited substantially more that general risk. Much more. So for the sake of all gold bugs out there, could the Fed perhaps add a few more FOMC statements and press conferences? At this rate gold should be at well over $2000 by the June 20 FOMC meeting.
And yet it is not smooth sailing: the time has come to watch out again for potential CME margin hikes (or rumors thereof) in gold at any given moment. After all, any increase in the price of protection against central planning stupidity is "irrational" and must be promptly punished by the keepers of the trillions in "stable derivative markets", who are too busy to police the MF Globals of the world and instead have a mandate of killing any PM price breakout.
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You can always tell when PMs are on a tear because Robo is nowhere to be seen!
Or Benocide just spoke publicly, jittering, shaking, convulsing, and lying.
Silver and Gold MUST be bought. Right MDB?
C'mon Ben, make it rain some more.
Keep yapping Ben. Silver and gold spike with every lie.
Translated : Shut up sheeple, I'm a Yale graduate magna cum laude. Perfect score on the SAT.
i'm pretty sure that was an intentional prick to the dollar bubble yesterday
Like I Keep Saying, GoldManip is on Bitchez ...
It's their top DeWalt "TOOL", to keep their "System" afloat, for now...
US fiat print limit is now $16.4 Trill, hehehe that otta last them a couple of months...
Evantual Manip will fail, and GOLD beyong $25K.
A couple months.....let that actually sink in.
BB has always been gold bug's best friend. He started in Fed in 2001. The gold bull market started in 2001 (more or less). That is not a coincidence.
The "King of Sell-Outs" didn't set down the bag of golf clubs in the lightning storm on the 18th green and slither off to his European villa until 2006.
BB didn't leave his Ivy league "Cush" until 2002....then on the Syndicate's "Board" for a few years as an apprentice. He didn't get passed the baton until 2006.
The US Treasury and FED have been secretly suppressing original money for alot longer than 2001.
My guess is it took a few years for the effects of Billy and the Rube's de-regulation policies to get the snowball moving.
After that....it's been a bubble building in everything the Central Bankers and their Investment Banking and Corporate Partners could get their parasite hooks locked into.
I bet it was real convenient to remove the "fractionals" from the Casino Construct....and build global command centers like the CME Groups "Derivative Deathstar". Short pig-tails with big cannon plugs hooked to algorithmic computers on site to manage all those beautiful digits flying thru the "interlinks"....churning profits.
2001 was just when alot more starting catching on to the ponzi. Like when you're trouncing thru the woods in the mountains and the hair stands up on the back of your neck....as if something was watching and stalking you. The perceptive will look around and often times spot the wolf or the cougar......most will continue onward like the sheep....flirting with a bad ending.
...to the tune of Diamonds Are A Girl's Best Friend: (apologies to Marilyn Monroe)
John William's words may be quite sentimental
But Bernanke is a Bug's Best Friend
Indian demand can be very monumental
But Bernanke is a Bug's Best Friend
Analysts grow cold as a trend gets old but remember this to the end
Do yourself a favor and just smile to Marc Faber 'cause
Ben is just a Bug's Best Friend!
http://www.youtube.com/watch?v=8ZRs__rmYMc
Enjoy
Rising food prices in developing nations are not a problem. They can just switch to eating cheaper food than rice and wheat. Like dirt and sand.
don't forget MUD, we need vitamins too. Many Africans have already found it stops hunger pains.
Melamine, plastic rice and lead-coated infant trinkets work well too.
With each instance of The Bernank's trembling lip, gold - me precious - finds a bid.
--Anonymous Poet
Epilogue
( Spoken by Bendacious )
Now my charms are all o'erthrown,
What strength I have is only from the bucks
Whose virtue fades each time I run the press.
I must be now confined by you
Or sent, like Rodney Dangerfield, Back
To School! That is my dukedom where
A mild deceiver like myself can still
Make good.
@nope-sorry but bernanke is partially right. there are not enough farmers to keep up with the worlds growing appetite. many farmers are beginning to retire..as per jim rogers, the average age of a farmer is in his late 50s..couple that with chinas growing middle class looking to eat more than just rice and vegetables.....if an outright deflationary depression doesnt hit the world, food price increases, coupled with oil, would be most accurately reflective of true supply/demand issues............
The average owner of the farm is in his 50's. His kids and grandkids can't afford their own farmland do to the fact that farmland is finite and people like Jim Rogers bid it to the stratosphere. They remain on the family farm and within System D.
people like jim rogers bid it to the stratosphere??? are you for real? do you have a clue about commodities??????
What part of Jim Roger's wealth >> average farmer's wealth don't you understand? The great Jim Rogers (and people like him)... The men who made a lot of money at the end of a debt super cycle Ponzi by trading paper to greater fools. Now they want to trade it all in for physical assets. Maybe that's smart, but it's hardly fair to those who spent their whole lives being infinitely more productive (while being shoved to the bottom for it by paper whores). Alas, life isn't fair. Anyways, we'll see how Jim Rogers (based halfway across the world) is able to keep his land when the game is over.
Forget that. Monsanto is killing them all with their seed patents and its practices. Farmers who use Monsanto seeds are not even allowed to store any seeds from harvest for future planting. A practice that has been in place since farming began. Some are even genetically engineer to produce lower yield in second generation. If anybody wants to go into agribusiness, I would recommend some other country (Australians kind of speak English). Between Monsanto, Cargill, bleeding hearts and well intentioned bureaucrats you will be too busy for farming.
"(Australians kind of speak English). "
Maybe so, but currently we are stuck with a Fabian Socialist Prime Minister (=President) and government, a doddering Opposition (supposedly "Conservative") who are unable to articulate any conservative policies in abject fear of offending the "new green" trend of their supposed electoral demographic of latte-sipping doctor's wives in wealthy urban suburbs.
Wait until we can clean out all of these full 'tard commies and fellow-travellers, the "green" watermelons, and all the other useless cunts who have overrun this once great country over the last 20 years.
Once you get the "all clear", by all means emigrate here. You will be welcome, black, brindle or brown, whatever. Australia needs people who can farm.
OK Mate, but hurry because the guy with all those aquaponic videos doesn't seam like is going to last until then.
http://www.youtube.com/watch?v=UrIsaBL5ii0
This chart explains why prices are soaring. It`s a exponential chart :), like the debt chart, like the growth paradigm, like the oil consumption chart. This is Beijing traffic today, this was Beijing traffic in 1990. You will never have resources that are finite in nature grow exponentially! So, at some point, something will have to give.
"I attribute rising food prices in developing nations a result of the people of those nations seeking more sophisticated diets."
Has Benny stepped foot in a US grocery store recently?
Food price inflation through the roof ! 30% to 40% in last 12 months ...
Costco large box of tide from $16.00 to $25.00 in last 6 months ...
I guess take two iPads and call dr Ben in the morning? iPads are very sophisticated, every family should eat iPad.
Didn't we play this same song over and over again last year?
Patience, grasshopper
Elemental Economics. Put a paper dollar on the the table. Suspend another paper dollar above it. Drop. The sound of silence. Put a silver eagle on the table. Drop another on top. Hear the difference? It's the sound of real money.
http://www.youtube.com/watch?v=2wYoLQc-x5g
Its the same old song, 4 tops @ $1900...
My physical is stocked away safe and sound, but it's too hard to resist trading these knee jerk market moves..
1/4/2012 BUY AGQ PROSHS ULTRA SILVER $46.20
1/26/2012 SELL AGQ PROSHS ULTRA SILVER $60.55
30% bitches!
bbbbut....bbbbut...DECOUPLING!! Paper going to zero "imminently"!!!!1
Dance, Bob Moriarty, dance like a good little troll clown.
Keep spewing your insane, spittle-flecked rage against silver, and make us laugh even more.
Unlike Meth Man and Johnny Bravo we will forget you. You fail even at being an entertaining troll.
He SHO do hate dem niggahs, doe!
The Sword of Damocles hangs over your head Trav, but you are too stupid to move your fucking chair. Or rather, you are too evil to allow others to move theirs.
Not only too evil to advise others to move their chairs, but more than that, evil enough to berate and bully them to sit still and insist that they NOT move their chairs, meanwhile attempting to nail their chairs in place.
tmosley and akak,
You two are like a pair of stuck records. Can't you change the bloody double act?
Can't you stop bitching about posts of no apparent consequence or interest to you?
I respond to lies, dishonesty and disinformation of my own accord, and based on my own standards --- if tmosley happens to feel and respond similarly, that is his business and his alone. Should I refrain from responding to Trav's bullshit anti-silver propaganda, or any other post, merely because tmosley might happen to have already responded to it as well, or vice versa?
Get a life.
My apologies for being consistant.
If you want flip-flopping, perhaps you should visit the forums of any of the "top-teir" presidential candidates?
I guess you don't realize that your PHYSICAl location is tracable thru your computers ID address. Now they know you have some and it is safely stored until the boys show up one evening to collect...for the national good.
All you bragards need to tone it down, Ain't to smart.
Child please, it ain't here.
My computer doesn't have an ID address...
I guess I'm safe.
I was just thinking it is a good thing my machines have IP addresses. These ID addresses sound dangerous.
Quick! How do I get one of those IP addresses? Do they sell them at Walmart?
They used to but because of people like Jim Rogers the world ran out of them (IPv4)
I dont have address .. I must even safer
Ain't no gold here. IP traces to a data center 2 counties over.
Robo obviously was driven to utter madness when he called the gold top at $900 and sold. He now consider gold and anyone who likes gold his arch nemesis, like a Batman cartoon. I hope the guy can seek some professional help before its too late.
Rumor has it that poor RobotTarder was last seen compulsively masturbating to his basement bedroom posters of the Bernankster and Jon Nadler, fervently repeating: "I believe in paper! I believe! I BELIEVE!!"
LOL You crack me up, akak. Overuse of adverbs usually gets on my nerves but you seem to pull it off most of the time.
I does what I cans.
;-)
I think we are VERY close to a time when CME upping margins is going to be like kissin your sister.
People are going to ignore it.
When paper price decouples from Physical OPENLY, turn off the lights on the HIKES doing the dirty.
Even traders will wake up to the fact that trading, and not holding is death.
As a new-ish poster I'm not sure who Robo is - but I assume he thinks, as I do, that gold bugs are in for a VERY big surprise.
That surprise will be gold at $1000 or quite a bit less - but let's stay on the conservative side at $1000 (I'm actually thinking $8-7-600 ish
Trouble is, you gold bug guys only see the ocean, not the tsunami, the dark shape towering on the horizon. Too busy with your plastic buckets & paddles, having fun, showing how strong & clever you are.
The tsunami is DEFLATION. Coming to a beach/town/city near you. The smaller, initial waves are already here but you've been spun by the spin and can't see them swirling around your ankles. Blind.
That's the way it works. To suck in the majority of suckers. Big wave comes. 'No, it can't be..it's a cloud, it's a.... CRASH!'
Of course, gold is the ONLY real money. Always has been, always will be. Eventually.
But the TPTB (who know much more, and are more powerful & manipulative than you think) as well as history & cycles are not on the gold bugs' side. You'll be taken down, big time. Sad but inevitable.
When the panic starts, the REAL panic, you'll want to unload your pm's.
And I'll be here. Because I'm always ready, always waiting, always positive.
Barbaric relic!
[gnom, gnom, gnom - eating Canada's new plastic $100 bill]
Where Im from, most people think its more real than the old $100 bill
Hmm, Au only comes in one color (excluding Black Hills Au... and white Au...okay, it only comes in 3 colors, then!)
Gold to $25,000.... Ok $2500.
The downside to gold is you can't burn it for warmth like you can worthless fiat.
melting point of gold is 1947 degrees F. it'll keep you warm, and it goes down real smooth! the plus is, you can crap it out, and remelt it again!
Gold bug's best friend? Not really. Holders of gold are not making gains so much as they are just keepinp up with inflation.
Depends on what metric you are using to gauge inflation. Typically for an average family your home is the piggy bank with the goal of owning it outright over whatever period your mortgage is for. So we have inflation in some areas like in consumer goods but not in housing. If one said I'm buying $100,000 in gold vs. buying a new home then I'm sure they are much happier at least from a wealth perspective.
the way people look at it is effed up. A home is an "investment"...metals are just something you buy and spend money on.
Took this chick to a coin store and some guy bought a halves bag. The girl talked derisively about "how much he spent" as if this was like buying jeans or something. I peeked at his invoice...was like $4400 back then IIRC. Yeah, I had to dump that bitch.
You have to look at it as a ratio:
In 2007 the median nominal house price was just about $250,000 and gold was trading at about $650. So in 2007 384 ounce of gold were needed to buy a home.
The nominal home price is now about $155,000 and gold is trading @ $1,700 per troy ounce. So now it takes 91 ounces to buy a home.
If you bought 384 ounces of gold instead of a home in 2007 you could buy 4 homes today and have some $ leftover to buy your date a nice diamond necklace.
How 'bout a pearl necklace?
I'll pass but thanks for asking.
That's just silly talk. And by silly, I mean awesome.
It's like a buddy whom I've gotten into PM's said after the $1900 to $1500's move: gold lost $400! What do I do?
A: nothing. The dollar just got a little boner and the Viagra's about to run out. So down goes the boner and down goes the number of oz you get for your dollar. Again. Same story as before. Sorry to tell you nothing has changed.
@trav---youre so romantic....a coin shop date....and i always thought diamonds were a girls best friend.......
Yeah, and he took her to Burger King afterward too --- oh so debonaire, that trav.
But he inexplicably flew into a rage when the BK employee handed him a hamburger wrapped in silver-colored foil. So much for that date --- back to Craigslist.
The all-important Thanksgiving inflation index was up 13% in 2011 over 2010. I.e. Thanksgiving cost 13% more in 2011 than it did in 2010.
Now, I'm not saying that inflation across the whole economy was 13%, but it certainly wasn't the ~2% or so the government vave us. Probably somewhere in the range of 5-10%. And with that kind of inflation, if you haven't hedged yourself you are a fool.
Inflation? Short term commodity price moves in food and energy is not real inflation. How can the purchasing power be destroyed by each percent rise in gold if the prices for everything is staying the same or getting cheaper? Gold is merely acting as a safe-haven for "expected" inflation as well as safety from US Treasurys and a volatile stock market plus don't forget the massive gold short covering by banks.
Holders of gold are not making gains so much as they are just keepinp up with inflation.
So by extension of your logic, equity holders are losing ground to inflation, and have been for years. The more people realize this, the more fiat will flow from equities to PMs. And then maybe gold and silver will begin to exhibit their true value.
The significance here is that with QE1 and QE2, stocks rose also. If this decoupled response keeps up, then we are closer than I thought to GAME OVER, INSERT QUARTER TO PLAY.
Tyler should run a dividend payer look. The SP as a whole is not a good buy. If you can generate some alpha, you'll have kept up with gold.
For example, a reliable payer like KMP has done very well.
That would have to be his logical conclusion, if gold is 'only keeping up with inflation' with its 5X performance gains over the last decade, then stock holders are plunging down losing in all areas not keeping up with inflation at all! Stock indexes being still around 2000 levels.
Gold's inverse correlation with stocks does not bode well for risk assets.
That comment earns you the "DUH" of the century....
Define "risk".
While yer addit, define "asset," too...
Yeah it's only paper but its OK to strut if you bought GLD calls:
http://www.youtube.com/watch?v=YeccUuvp-qc
Gold is so 2008.
It's off grid solar, at this point.
Staging of investments is important. Plant those avacado trees now.
There's nothing wrong with CME, or other exchanges, margin hikes. Increased initial and maintenance margin levels have been part of futures exchange policies for a hundred years, if not from commodities futures' inception. Margin hikes have little or nothing to do with "any increase in the price of protection against central planning stupidity". Think of it this way: if the initial margin on a $100 face value commodity is 5% then the trader antes up $5. If the face value then goes to $120, then to keep the 5% rule valid, the exchange requires the trader to pony up an additional $1 (.05 x 120 = 6). What don't you get about that?
5 hikes in 9 days is normal? It would be, only if the seller of the contract DIDN'T ACTUALLY HAVE the commodity.
LOL.
CME / COMEX are covering up one massive fraud.
But Trav says it was a bubble?
LOL...
Sure gold is a bubble, but certainly not stocks! Oh no, theyre of course only getting warmed up for further ramping back to R.E. bubble highs.
Did those cocksuckers over at the CME ever LOWER margin requirement for Gold or Silver since both prices are well off their highs?
Yes, we can all do the math. But your example isn't a margin hike - it's enforcement of a static margin %. The manipulation that has been going on is that the % is hiked, at moments uncorrelated with volatility expansion, in order to create a cascading liquidation. Usually this happens when Au starts to break away from equities. And so while liquidity is needed to shore up margin accounts on equities, the CME (or some other exchange) cracks the whip on gold, which precipitates an even larger margin requirement. And since gold is the most readily liquidated thing in so many portfolios, a manufactured sell-off ensues, which is self-reinforcing until the base of unshake-able hands is reached.
This isn't about the exchange's policies, it's about the CBs and ultra-short TBTFs manipulating real money.
Bullshit on your enforcement of a static margin %. It's a hike to $6 (in the example) if you already hold the position and it's $6 if you're a new player. "...while liquidity is needed to shore up margin accounts on equities"--- like there's a mob out there trading ES with Reg T requirements at 50% that's getting called -- what crap.
I find it comical in the extreme that anybody here on ZeroHedge would even dare try to defend the egregiously manipulative machinations of the CME in regards to gold and silver margin hikes, particularly when the timing and pattern of said hikes were utterly UNLIKE those of any other commodity.
Jeffrey Christian, is that you?
(PS: You looked less like a total wimp when you had the goatee.)
you stupid fucks LOVED the paper games when silver was rising.
Had no problem with people levering to the moon...shamelessly pumped and cheerled the whole fuckin way.
It's endlessly amusing how you don't even try to tell plausible lies anymore. I have NEVER participated in the paper PM markets, nor even suggested that anybody else do so, EVER, nor have I ever defended them --- on the contrary, to the extent that I have made any comments regarding the paper PM markets at all, it is was to advise caution in even approaching them, with the thought that they will almost certainly collapse or fail (as they have begun to do with the MFG debacle already) sometime in the not-too-distant future.
Try again, Bob --- your dishonesty and rabid anti-silver rage is showing again.
Please go back to your 321gold website and pump some more marginal gold junior stocks.