This page has been archived and commenting is disabled.

Marc Faber: "Gold Is Quite Oversold. I Will Consider Buying Gold Over The Next Two Days"

Tyler Durden's picture




 

Anyone trading gold and silver most likely had a heartattack this morning. Of that subset, anyone who survived and traded with conviction made a killing, following an impressive surge in both metals, which saw silver soar from $26 all the way back to $30, after it was made clear that there was no behind the scenes liquidation of the metal but merely more piggybacked margin hikes this time out of China as was first reported by Zero Hedge. Another factor that helped was Marc Faber's appearance on CNBC earlier, who said that gold is now "quite oversold" and that he would be adding to the yellow metal in the "next two days." In retrospect, he should have been adding today to his existing holdings. However, since he already has 25% in gold, he is forgiven. Mutual funds which, however, have about 1% in gold, are not.

Some of the key soundbites from Faber: "Gold is quite oversold and I would consider buying some gold in the next two days... We overshot on the upside when we went over $1,900. We're now close to bottoming at $1,500, and if that doesn't hold it could bottom to between $1,100-$1,200. "Both equity markets and gold markets have become very oversold, and I think a rebound is occurring. Following this rebound, which I expect to get underway this week, there will be a longer slowdown." In other words, Faber shares our undying certainty that should stocks plunge and they will once the rumor mill halflife is measured in nanoseconds, the Fed will have no choice but to intervene again, with trillions of monetization. We speculate that that would not be exactly negative for gold...

And naturally, CNBC's spin on this same interview is that according to Faber gold is plunging to $1,100... Sigh.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 09/26/2011 - 08:50 | 1710519 bania
bania's picture

weak hands ----> strong hands

Mon, 09/26/2011 - 08:57 | 1710547 luna75
luna75's picture

As a strong hand, I'm grateful to the weak hands for this opportunity.

Mon, 09/26/2011 - 09:15 | 1710620 GetZeeGold
GetZeeGold's picture

 

Show me someone willing to sell PMs. Silver is still going for $38 on Ebay.

 

This is hot paper pushing the metals down. This market is just not for real.

 

Mon, 09/26/2011 - 09:21 | 1710692 Minoan
Mon, 09/26/2011 - 09:48 | 1710838 mick_richfield
mick_richfield's picture

Precious metals "deep storage".

Get it up here!  Get frikking Jacques Cousteau on the horn!  That could keep the COMEX in business for another three weeks! 

 

Mon, 09/26/2011 - 10:05 | 1710965 Hephasteus
Hephasteus's picture

Ya I heard that they found 90,000 tons of sunken columbian coffee too. Should be going for 10 bucks for 2 lb package any day now.

Mon, 09/26/2011 - 10:19 | 1711014 Minoan
Minoan's picture

Just kidding mate.

I visited 3 coin-shops today and i couldn't find cheaper than 25 euros/t.oz.

Mon, 09/26/2011 - 11:43 | 1711366 Ahmeexnal
Ahmeexnal's picture

A) walk into the coinshop with your iPad displaying kitcosilver daily price chart and demand to have the stuff at the official price.

B) be sure to have an appointment with your dentist/facial reconstructor right after  you walk out of the coinshop...empty handed of course

 

regarding that sunken cargo ship: wouldn't surprise me at all if they found out there was no silver on board in the first place.

flashback to WWII:

Churchill:  "Adolf, old buddy. I need a favour of your U-Boats.....we'll split 50/50"

Mon, 09/26/2011 - 11:07 | 1711240 Smiddywesson
Smiddywesson's picture

That's almost 3 miles deep.  That will be a very long and expensive expedition, but a very exciting one no doubt!

Mon, 09/26/2011 - 09:21 | 1710693 trav7777
trav7777's picture

golddealer.com?  JFC

Mon, 09/26/2011 - 09:51 | 1710877 tmosley
tmosley's picture

Trolls seem to love that site.  Probably because the listed inventory is not linked to their actual inventory, and you have to call to confirm that they don't have any inventory.  I chased that goose looking for COMEX deliverable bars on several occassions.

Mon, 09/26/2011 - 09:42 | 1710784 eurusdog
eurusdog's picture

It would be foolish to pay 38 for physical right now. You find it all over the internet for around 30 - 32.

Mon, 09/26/2011 - 09:18 | 1710651 strannick
strannick's picture

We love you weak hands! 'Hope and Change', 'Yes we can'

Mon, 09/26/2011 - 09:53 | 1710870 thunderchief
thunderchief's picture

This is not good for the silver bulls like me.  I was hoping for a final capitulation crash to 20.  That followed by a full blown comex and London default.  Maybe it will still happen.   A price rise like this may not make that feasible, as the paper monkeys come back in and jack paper prices back up. 

Keep in mind Silver and Gold investors.  Price discovery will only come with a sobering realization of above ground supply.  Silver just went as high as 60:1 with this latest takedown. 

If you all want to come back down to earth with me, there are 8 parts silver for every 1 part gold above ground supply (bars on the shelf).

My point is simple.  We need a physical demand frenzy, and that can only come with further paper price declines.  That will hopefully lead to a Comex and London default. 

And if you think the Silver market has gone bonkers, go talk to Mr. Platinum.  He will give you and even crazier story.

Mon, 09/26/2011 - 11:13 | 1711265 Smiddywesson
Smiddywesson's picture

My point is simple. We need a physical demand frenzy, and that can only come with further paper price declines. That will hopefully lead to a Comex and London default.

Well there you go.  That would argue for them keeping the game going forever.  If the people at risk of a Comex and London default (JPM, big banks, etc) are the same people knocking down silver prices, why would they allow those conditions?

Mon, 09/26/2011 - 11:22 | 1711303 tmosley
tmosley's picture

Where do you get the 8 bars silver for every 1 bar gold?  From what I have seen, there was about as much silver as there was gold, and the silver was being used up pretty fast.  The absolute numbers are quite ambiguous, though.  The only hard numbers we have are on production and use, thanks to the Silver Institute.

Mon, 09/26/2011 - 09:58 | 1710908 XenoFrog
XenoFrog's picture

I bought more over the weekend, so of course silver would crater.

Mon, 09/26/2011 - 10:52 | 1711200 He_Who Carried ...
He_Who Carried The Sun's picture

Its all like 2008, yes, but what happened after THAT cratering?

Mon, 09/26/2011 - 12:43 | 1711730 Sparticus1
Sparticus1's picture

I locked in some 8 days ago for $40.  I guess I should wash my car; we need rain in TX.

 

Mon, 09/26/2011 - 14:15 | 1712120 covert
covert's picture

true but, platinum is even MORE oversold.

http://expose2.wordpress.com

 

Mon, 09/26/2011 - 09:00 | 1710521 LawsofPhysics
LawsofPhysics's picture

Oh crap, sell the paper ASAP!  As always, keep the physical.

Mon, 09/26/2011 - 08:50 | 1710522 papaswamp
papaswamp's picture

Might have missed your chance when it went below $1600...India buyers stepping in heavy with looming wedding season approaching.

Mon, 09/26/2011 - 08:54 | 1710537 Praetor
Praetor's picture

Tell me about it, my soon to be Indian wife loves the gold. Not silver so much. Thinks its funny I'm the only white person accumulating gold. Was waiting for it to drop to 1300 to get some more, but that window is gone I think.

Mon, 09/26/2011 - 10:14 | 1710983 thunderchief
thunderchief's picture

There is a cultural premium attached to Gold in China and India, which does put silver at a disadvantage, like your wife thinks.  The good thing for silver is there are a lot more poor people buying silver than wealthy people buying gold.  But you definatly see this in China and India, which puts silver at a disproportionate ratio to gold.

It is kind of like cars.  A Chinese, Indian, or Middle Eastern person just love status.  Gold is like a BMW/Mercedes/Land Rover/Porche.  Silver is a crazed reckless Nissan Patrol that is going to kill you and your family.  Platinum is a Bugatti.  What the hell is a Bugatti?  You have to go ask the driver

Mon, 09/26/2011 - 10:54 | 1711205 DaveyJones
DaveyJones's picture

is Palladium the Yugo?

Mon, 09/26/2011 - 11:26 | 1711313 thunderchief
thunderchief's picture

I call Palladium the Bastard metal.  That is because it has almost no monetary component, like gold, silver, and Platinum.  The asians, who are always on top of things in the metals market buy platinum, and are catching on more and more with palladium. 

But palladium seems to be equal to an exhaust pipe.  Palladium is ever tied to dirty automobile catalytic converters, which is not fair.  That is why I call it the bastard metal.  As far as price to above ground supplies, I think palladium is the best buy among its peers.  It is very rare and cheap.  

I would put it this way

Palladium #1

Platinum #2

Silver #3

Copper? #4

Gold #5

 

Mon, 09/26/2011 - 09:30 | 1710726 Oh regional Indian
Oh regional Indian's picture

Interesting thing happened in the Indian PM market these past few days.

The price plunge did not match th eglobal one in percentage terms. Why? Because the Rupee tanked also. And we are a primary PM inport nation. 

Must be hairy price-setting in such environments. So, it was a strange week of price-action in India. Of course the value perspective changed not one bit! ;-)

ORI

Getting Weirder and Weirder

Mon, 09/26/2011 - 09:44 | 1710824 ManufacturedOpinion
ManufacturedOpinion's picture

Oh, shit - here he cums again with the worthless articles.

Save your time folks, the indian writes like a lame duck.

Mon, 09/26/2011 - 10:52 | 1711199 Race Car Driver
Race Car Driver's picture

Mbbe you could link us to your blog for a little comparison?

Mon, 09/26/2011 - 08:52 | 1710525 the not so migh...
the not so mighty maximiza's picture

they might just start doing machine gun margin hikes every week if required.   Thats all they got left to manipulate it.  Only the insiders know when they will do it and position correctly.

 

Mon, 09/26/2011 - 08:58 | 1710549 SheepDog-One
SheepDog-One's picture

Yea but arent they limited by a ceiling of 100%?

Mon, 09/26/2011 - 09:01 | 1710559 the not so migh...
the not so mighty maximiza's picture

touche

Mon, 09/26/2011 - 09:51 | 1710880 eisley79
eisley79's picture

yah, buts its absolute value is currently at 5%, so they can raise it "20%" many times still...

Mon, 09/26/2011 - 10:11 | 1710988 pupton
pupton's picture

What I don't get is why the raised silver margin requirements NOW.  The price was $40/oz, which is where they knocked it down to with the Usama Bin Laden May 1 increase.  So the price had stabilized after the previous rout.  Why raise it again?  I'm not that naive to think they wouldn't do it just to crush long speculators, but what is their justification to the market? 

Mon, 09/26/2011 - 11:16 | 1711277 CrazyCooter
CrazyCooter's picture

My theory is they have to beat the price down before they can announce monetary expansion. The market has to go down so they can tie some anchors to gold/silver paper price.

If they can beat gold to 1200 and silver to 20, isn't that roughly what it was before QE2?

This is not market forces at work ... one day the wheels are going to come off ... that is going to be a shit show!

Regards,

Cooter

Mon, 09/26/2011 - 11:17 | 1711280 Smiddywesson
Smiddywesson's picture

Those margin hikes become increasingly valuable to the manipulators as they use them up.  Going forward, they can only use them when they are desperate. 

Mon, 09/26/2011 - 08:52 | 1710530 GeneMarchbanks
GeneMarchbanks's picture

*VID OF THE DAY*

http://www.youtube.com/watch?v=B3ddIJajQ0w

Enjoy, bitchez.

Mon, 09/26/2011 - 09:16 | 1710646 stopcpdotcom
stopcpdotcom's picture

Excellent, Gene. Am obliged.

Mon, 09/26/2011 - 09:23 | 1710704 GeneMarchbanks
GeneMarchbanks's picture

You & fellow ZHers who watched are most welcome;) Now, how this dude got on the BBC is what I'd like to know? Poor little British hussy, she really wasn't ready for his commentary.

 

Mon, 09/26/2011 - 09:51 | 1710879 moriarty
moriarty's picture

He slipped through the net didn't he! The only problem is that the majority of middle England (the bag men and women) that will be creamed in the fall will be out working their ass off for more bank credits.

Mon, 09/26/2011 - 10:06 | 1710972 Motley Fool
Motley Fool's picture

That was fun. :D

Mon, 09/26/2011 - 09:56 | 1710901 RSloane
RSloane's picture

Just wow. Its amazing they didn't cut his feed. Honesty like that is rare and is rarely tolerated.

Mon, 09/26/2011 - 09:57 | 1710905 DosZap
DosZap's picture

GeneMarchbanks

 

BEST LINE and Truth I have heard...........................

Governments do not run the economy GOLDMAN SACHS DOES!!!!!!!!!!!!!!!!!!!!!

BSTDS!!!!!!!!!!!!!!!!!!

Mon, 09/26/2011 - 10:20 | 1711018 Chaffinch
Chaffinch's picture

Excellent video clip!

Mon, 09/26/2011 - 10:40 | 1711155 Awakened Sheeple
Awakened Sheeple's picture

Anyone else notice the silver tie? :)

Mon, 09/26/2011 - 15:13 | 1712408 Cathartes Aura
Cathartes Aura's picture

look again - it's shiny pink, similar to Mr. Faber above - trader tie?

Mon, 09/26/2011 - 11:20 | 1711295 Shit Bag
Shit Bag's picture

He basically suggests to switch every asset to bonds otherwise "every saving will be gone".. wtf

Mon, 09/26/2011 - 15:00 | 1712354 Cathartes Aura
Cathartes Aura's picture
New Study – Traders are worse than Psychopaths

 

http://www.zerohedge.com/contributed/new-study-%E2%80%93-traders-are-wor...

Mon, 09/26/2011 - 08:52 | 1710531 Long-John-Silver
Long-John-Silver's picture

Clearance sale on Gold is almost over.

Mon, 09/26/2011 - 08:53 | 1710532 Robslob
Robslob's picture

 

 

Some CNBC Headlines this Morning: 

1) Gold could fall to $1,100: Faber

2) Central Banks the Only Defense Afainst Apocalypse

 

Something really ugly is brewing...complete confusion mixed with desperation...we must be almost there...

Mon, 09/26/2011 - 08:56 | 1710545 SheepDog-One
SheepDog-One's picture

James Bond villain-style Central Banksters are our only hope against the coming apocalypse.....oh thats just GREAT!

Mon, 09/26/2011 - 11:19 | 1711287 Smiddywesson
Smiddywesson's picture

The world needs 007 and Pussy Galore to come to our emotional rescue!

Mon, 09/26/2011 - 09:02 | 1710563 DormRoom
DormRoom's picture

Feds will not intervene unlesss the USD is strong, and CPI indicates deflation.  Otherwise, you gold & silver bugs are on your own.   And it will be brutal as gold retraces to 1200, and silver 21.

Mon, 09/26/2011 - 09:10 | 1710613 SheepDog-One
SheepDog-One's picture

I see....so then we've suddenly printed less fiat currency?

Mon, 09/26/2011 - 11:59 | 1711476 Troll Magnet
Troll Magnet's picture

duuuuuuuuuuuuuuuuuuuuuude i hope you're right and gold/silver fall to 1,200 & 21 respectively. i'll be maxing out my each one of my credit cards from 1,400/26 on down!

Mon, 09/26/2011 - 09:10 | 1710617 Snidley Whipsnae
Snidley Whipsnae's picture

"And it will be brutal as gold retraces to 1200, and silver 21."

So, tell us dormroom... Are you actively shorting PMs... Or just another troll shooting off your mouth?

 

Mon, 09/26/2011 - 09:19 | 1710686 DormRoom
DormRoom's picture

I don't short.

I follow charts.  go to stockcharts.com select "weekly"  select "3 years".

 

look @ the 20 & 200 weekly DMA for $silver and $ gold.  gold 1197. silver 21.  Faber probably did the same.  you can hold if you want.

 

But if gold & silver were in a speculative bubble, they can fall ALOT lower than the 200 weekly DMA, and you guys will be wiped out.

 

p.s. you can't look @ the absolute amount of money in circulation, but the velocity of money, to see if gold is a good trade.

Mon, 09/26/2011 - 09:31 | 1710734 pods
pods's picture

So wait, if gold drops too far below the 200 DMA they come and take your gold? 

Never heard of that before.

/sarc

pods

Mon, 09/26/2011 - 09:38 | 1710771 LawsofPhysics
LawsofPhysics's picture

Hhmm.  Let's see, nope, just checked the safe and all the gold (most purchased in the late 80's) is still there.  Coming to "get it" would be pretty ugly considing my like-minded and well-armed neighbors.  I am not a trader (although I did ride the paper gold and silver wave and now have an additional 40 acre parcel to show for it) but I do know that trading is for making money and getting out folks. It never made sense as a retirement plan.  In fact if that has what the markets have been reduced to, then the markets are a much larger ponzi that social security could ever hop to be.

Good luck, the paper world is burning, all things physical people, including a valuable survival skill set.

Mon, 09/26/2011 - 11:07 | 1711239 DCFusor
DCFusor's picture

Sounds like we are very much on the same page, and virtually the same situation, Laws.  Plus whatever you like.  Too bad most here aren't (too bad for them, that is).

I've changing fiat I make trading into "real hard assets" of all sorts for the last two-three years now and adding to those I got the old, hard way.  Lots of productive land, lots of tools, lots of skills, 3 new vehicles -- and yeah, beans, bullets, bullion of course, along with stored fuel, tons of useful electronics, medical gear, and various other things.

And you know what, it's not so much I think the end of the world is nigh, though it might be.  It's that is just feels better to have it all taken care of even in good times, it's total win-win if you do it the right way, with the right attitude about it all, rather than OMG desperation "have to move quick and deny myself stuff in the process".

For sure, I'm not cheer-leading for a collapse.  The truth is, it hurts mostly-innocent people, and the bad boys find a way to do OK still, if you look at history.  Unless things get totally insane, we don't seem to have the balls to get out the guillotines -- and even that doesn't take care of the people who mostly don't deserve what's likely coming.

Mon, 09/26/2011 - 09:47 | 1710836 ManufacturedOpinion
ManufacturedOpinion's picture

You follow charts in a purely manipulated environment ???

Go back to sucking cock in the dormroom, and leave the financial subjects to the grownups.

Mon, 09/26/2011 - 11:38 | 1711360 Smiddywesson
Smiddywesson's picture

As you move back in time, the USA and EU were not hopelessly bankrupt and they still had options to fix things.  That is no longer the case.  You are suggesting that you get a clearer picture of things as you back out to higher time frames.  That assumes that we will approach a collapse at a steady state.  So far, the kick the can gang have made your assumption a reality so I can't criticize it. 

However, is that likely to continue going forward?  Hasn't kicking the can resulted in a build up of pressure for cascading a collapse?  The left side of your chart represents the price of gold in a world with stable governments, managable sovereign debt, but with a liquidity problem in banks.  The right side of your chart represents the price of gold with bankrupt banks and titanic sovereign debt.  Those are two different worlds. 

In other words, the trendline of gold prices from 1917 to mid 1922 was irrelevant to the value of gold in paper marks in 1923 (vertical prices).  Trendlines don't settle an argument.  Trendlines remain right until they are not.  With the political and monetary bedlam going on, and the volatility of prices, I wouldn't bet my life on that trendline. 

Mon, 09/26/2011 - 12:59 | 1711779 Roger Knights
Roger Knights's picture

"The left side of your chart represents the price of gold in a world with stable governments, managable sovereign debt, but with a liquidity problem in banks.  The right side of your chart represents the price of gold with bankrupt banks and titanic sovereign debt.  Those are two different worlds."

Taleb's Mediocristan and Extremistan.

"As you move back in time, the USA and EU were not hopelessly bankrupt and they still had options to fix things.  That is no longer the case."

Here's a fascinating article up today on Seeking Alpha that suggests a surprising last ditch maneuver that Europe could implement:

http://seekingalpha.com/article/295803

Mon, 09/26/2011 - 09:27 | 1710715 Alea Iactaest
Alea Iactaest's picture

You are not alone with that sentiment. Clive Maund wrote a devastating analysis over the weekend (and caused me to lose a fair amount of sleep). Here's a link to his article on Silver.

http://www.clivemaund.com/article.php?art_id=67&PHPSESSID=d0ec1c17791d3d...

Here's the punchline:

If we now look again at the latest version of this chart we can see how, having crashed the support at the lower boundary of the large top area on Friday, silver is now in freefall, and while there is some support in the $30 that could produce temporary relief, the magnitude of the decline on Thursday and Friday against the background of emerging deflationary forces strongly suggests that silver will soon crash this support and continue its freefall even lower - and there is no significant support below the $30 area until it gets to the $20 area. This therefore looks like the downside objective for this decline.

Mon, 09/26/2011 - 10:10 | 1710987 Hephasteus
Hephasteus's picture

Yep we are definitely in stage 3. Come get your gold and silver.

http://www.youtube.com/watch?v=sCptAxvv86U

Mon, 09/26/2011 - 10:31 | 1711094 tekhneek
tekhneek's picture

You have any idea how happy I'll be if silver's $5 again?!

Mon, 09/26/2011 - 11:26 | 1711314 pods
pods's picture

I'd buy Methman a 7 gram rock and pay him 10 bucks to dig it out of the ground for me!

pods

Mon, 09/26/2011 - 10:22 | 1711030 Chaffinch
Chaffinch's picture

Is DormRoom a troll by any chance?

Mon, 09/26/2011 - 09:52 | 1710876 DosZap
DosZap's picture

8

Mon, 09/26/2011 - 08:53 | 1710534 Cassandra Syndrome
Cassandra Syndrome's picture

He is the Zen Master. 

Mon, 09/26/2011 - 08:54 | 1710536 breezer1
breezer1's picture

overbought last week oversold this week. faber is full of himself. there is no credable pricing mechanism for gold and silver just the paper stuff.

Mon, 09/26/2011 - 09:06 | 1710586 KingOfMilwaukee
KingOfMilwaukee's picture

Faber has correctly predicted 14 of the last 5 bear markets.

Mon, 09/26/2011 - 09:06 | 1710605 Smiddywesson
Smiddywesson's picture

there is no credable pricing mechanism for gold and silver just the paper stuff.

Or for the paper stuff either. 

Mon, 09/26/2011 - 09:39 | 1710777 mvsjcl
mvsjcl's picture

One might consider availability as a somewhat reliable guide: http://www.proaurum.de/edelmetallshop/silber.html

Mon, 09/26/2011 - 08:54 | 1710539 DormRoom
DormRoom's picture

a lot the investment demand for silver is from retails via ETFs.  As silver slides, retails will get wiped out, and force more ETF liquidiation of the silver metal.

 

ditto for gold, but the ratio of institutional investor:retail is higher.  But the process is the same.  Leverage gold ETFs will wipe them out, forcing them to sell, pushing prices lower, into a death spiral.

 

The inherent asymmetric risk  in leveraged ETFs is wiping out retails.

Mon, 09/26/2011 - 08:56 | 1710546 Gandalf6900
Gandalf6900's picture

by retail you mean....

Mon, 09/26/2011 - 09:49 | 1710842 ManufacturedOpinion
ManufacturedOpinion's picture

What he means is that he has absolutely no clue about financial subjects.

He just likes using big words so that his parents will continue sending the tuition and rent checks so that he can keep partying and fucking away his life in college.

Mon, 09/26/2011 - 11:53 | 1711435 Smiddywesson
Smiddywesson's picture

He just likes using big words so that his parents will continue sending the tuition and rent checks so that he can keep partying and fucking away his life in college.

If so, he's smarter than I, because that sounds like a lot of fun.

What he seems to be getting at is that leveraged ETFs will implode along with the COMEX, resulting in the decoupling of paper prices and physical prices that FOFOA discussed. 

The predicted result is that paper gold prices will plummet.  Maybe yes, maybe no, I don't have a crystal ball on this.  What we know for sure is that if this happens the pain for physical holders will be short and sweet because physical gold will go to ground and nobody will sell it because nobody will know what it is worth.  In that case, fiat will go belly up and it won't matter what the paper price for gold or silver are anymore.  Touchdown, gold and silver! 

Mon, 09/26/2011 - 13:04 | 1711808 Roger Knights
Roger Knights's picture

"The predicted result is that paper gold prices will plummet.  Maybe yes, maybe no, I don't have a crystal ball on this."

My crystal ball says China will buy the dips, so this morning's drop below $1600 is the last one we'll see. Or at least any subsequent ones will be just as brief.

Mon, 09/26/2011 - 08:54 | 1710541 Gandalf6900
Gandalf6900's picture

This is a blessing in disquise...now where did I leave my barrel

Mon, 09/26/2011 - 08:55 | 1710542 SheepDog-One
SheepDog-One's picture

Geez Faber lose the pink tie/black shirt thing it looks clownish.

Mon, 09/26/2011 - 08:59 | 1710543 ivars
ivars's picture

Faber is right, for gold, the price will go up now, as it rebounds quite sharply, though not higher  than 1800 in November,  for a few months till March 2012,  or so when it will fall again back to 1600. For silver, on other hand, the corridor till Q2 2012 is pretty flat- 25-32 USD- but then it may start moving to  reach 80-100USD. At least that is what the charts say.

Gold will however take long time to reach above 2000 USD.

Silver went to 26 on Monday, amazing! Exactly where it was predicted to land in this time in this March prediction chart(25-32USD corridor in H2 2011).:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&start=40#p31020

and gold went to 1550! fantastic: Again, exactly where it was expected to be in this April prediction ( which predicted also the bubble-well I expected it to be there in November) - down to 1500-1600 in November 2011.And I expected bubble and crash in October- it happened in September..

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&start=220#p32176

Mon, 09/26/2011 - 09:14 | 1710632 Snidley Whipsnae
Snidley Whipsnae's picture

"At least that is what the charts say."

Central banks intervening via bullion banks around the world and you are chart gazing?

Do you get paid for reporting the findings of goat entrail reading?

Mon, 09/26/2011 - 09:51 | 1710872 ManufacturedOpinion
ManufacturedOpinion's picture

You predicted this using charts in this purely manipulated environment ???

Brilliant !!

Just BTFD and STFU.

Mon, 09/26/2011 - 11:47 | 1711408 ivars
ivars's picture

All manipulations are included as price chart is just the mathematical result of multiple scale and place and time events influencing people and people made machines that trade silver. So all events and their relative impact, as well as human reactions, decision making are in the chart since the price time chart IS the ONLY pure outcome of all manipulations, BTFD etc.

 

Nothing more complex then price chart, whatever the events and manipulations. One 2 dimensional graph.

Mon, 09/26/2011 - 12:03 | 1711498 Smiddywesson
Smiddywesson's picture

"All human interactions, including price manipulations, are included in the chart" sounds suspiciously like church teachings that God is involved in every minute detail in everyone's lives and it is all part of his master plan.  I never liked blaming God for my own laziness and I never liked that mystical belief in charts.

Chart religion breaks down when outside forces and manipulation IS the price action.  When a hedge fund gets in trouble and other hedge funds know it has to liquidate all it's other holdings, so they raid them all, it's not in the chart.  When Ben Bernanke wants gold to drop just before the SNB pegs the franc, it's not in the chart.

Mon, 09/26/2011 - 10:02 | 1710957 DosZap
DosZap's picture

ivars,

Personally I am  glad you came to ZH, your calls have been dead on............your the MAN.

Thanks for your insights.(;

Mon, 09/26/2011 - 11:44 | 1711389 ivars
ivars's picture

Thanks,

 

Ivars

Mon, 09/26/2011 - 08:57 | 1710544 KingOfMilwaukee
KingOfMilwaukee's picture

Today's comeback might be a temp bottom, but it is 50-50 that the Greek bailout will go off the rails over the next week and if so you could see us at 1400 real fast. I was in around 750 and only like to buy anything when it is off at least 30%, so I suspect I won't dive in until 1340, if it gets there.

 

Silver, though, is already off 41% from its high and I would jump in under $25. For the first time.

Mon, 09/26/2011 - 09:00 | 1710553 ZippyDooDah
ZippyDooDah's picture

Only morons criticize Faber.  He is the man.

Mon, 09/26/2011 - 09:00 | 1710554 doomandbloom
doomandbloom's picture

oops

Mon, 09/26/2011 - 09:00 | 1710557 Quinvarius
Quinvarius's picture

Anyone notied the complete lack of volume in gold and silver during this whole selloff?  You can see it n spot, FX, and GLD and SLV.  It is like the paper market is being ignored.

Mon, 09/26/2011 - 09:02 | 1710564 KingOfMilwaukee
KingOfMilwaukee's picture

There was not much volume on the upside in the big rally this summer either. 

Mon, 09/26/2011 - 09:00 | 1710558 LeBalance
LeBalance's picture

"Mutual funds which, however, have about 1% in gold, are not."

Wow!

Does anyone feel that Mutual Funds are just another CB arm?

So IF (lol) they are does one expect that they would invest in GLD let alone PHYS?

Mon, 09/26/2011 - 09:05 | 1710569 KingOfMilwaukee
KingOfMilwaukee's picture

The vast overwhelming majority of mutual funds are not allowed by prospectus to invest in any commodity based asset, whether paper or not. If they want to own gold, they must buy gold miners.

Mon, 09/26/2011 - 09:02 | 1710561 Mr_Wonderful
Mr_Wonderful's picture

Gold displayed weakness when it dipped below the 200-day MA around 1550 for the first time in 7 months but it bounced back nicely.

It´s troublesome for those holding this "safe haven" asset how unsafely it acts and how fast it falls when under selling pressure.

The line in the sand is definitely around 1550. If that doesn´t hold it´s down to a 52-week low joining other commodities. This would be about 1200.

Mon, 09/26/2011 - 09:06 | 1710597 SheepDog-One
SheepDog-One's picture

Gold isn't for day trading, its for holding thru a currency collapse, if you believe thats what we're dealing with. 

Mon, 09/26/2011 - 09:10 | 1710615 Mr_Wonderful
Mr_Wonderful's picture

I think it´s very vulnerable to short-seller attacks.

There are many traders with fairly tight stops. Once meaningful selling starts this folds like a house of cards, resulting in those sudden 50-100 dollar drops we have seen.

Mon, 09/26/2011 - 09:23 | 1710699 SheepDog-One
SheepDog-One's picture

Of course excluding the $50-$100 dollar rises we have seen.

Mon, 09/26/2011 - 11:16 | 1711274 pods
pods's picture

I can only hope that you are right.  Cause once gold "falls" below a certain threshold, you wont be able to find it eventhough it is dirt cheap.

Then all the traders will look around and wonder why if gold is so cheap it cannot be found.

By then it will be evident the real utility of gold.  Not to trade, but to protect wealth from the man.

pods

Mon, 09/26/2011 - 09:16 | 1710643 Kina
Kina's picture

Sans corruption and manipulation by TPTB gold and silver would be perfectly fine. Even so, in face of a decade of heavy supression by corrupt banksters cartel aided by the CFTC they both still managed to climb steadily. And are still miles ahead despite the latest attempt to finish them off.

 

Makes them a pretty good haven on longer term. Cant do much about the corrupt ones except hope that heavy volume buying eventually sends them bankrupt.

Mon, 09/26/2011 - 09:04 | 1710566 SheepDog-One
SheepDog-One's picture

Well Marc dont wait too many days deciding to buy or not, as now gold already is $100 higher.

Mon, 09/26/2011 - 09:04 | 1710567 theotheri
theotheri's picture

Not covering my shorts just yet. It will probably fall below $1200 but I'll take my profits around $1300. I figure that's a good 25-30% premium to intrinsic value.

Mon, 09/26/2011 - 09:07 | 1710607 SheepDog-One
SheepDog-One's picture

'Intrinsic value' WTF are you talking about?

Mon, 09/26/2011 - 09:18 | 1710673 Snidley Whipsnae
Snidley Whipsnae's picture

He doesn't know what he is talking about... Just another bag headed troll running off at the mouth... Probably part of Ben's new campaign to spread disinformation.

Mon, 09/26/2011 - 12:40 | 1711719 Smiddywesson
Smiddywesson's picture

Exactly, gold IS value.  The equivalent in paper is NEVER "intrinsic value," it is always transitory valuation.  That's why gold is kryptonite to fiat.

Mon, 09/26/2011 - 09:19 | 1710690 Hephasteus
Mon, 09/26/2011 - 09:23 | 1710701 theotheri
theotheri's picture

It's value as jewelry.

Mon, 09/26/2011 - 09:54 | 1710894 ManufacturedOpinion
ManufacturedOpinion's picture

And just how do you arrive at a price for that dumbfuck?

Mon, 09/26/2011 - 10:05 | 1710967 BigJim
BigJim's picture

Didn't you know? The shit is everywhere. And - it only costs $5 to pull it out of the ground.

Unlike Bernankonfetti.

Mon, 09/26/2011 - 10:37 | 1711145 ffart
ffart's picture

i bet if they buried fiat in mines people would make earrings and bracelets out of it

Mon, 09/26/2011 - 10:52 | 1711202 passwordis
passwordis's picture

Are you unable to respond to people without calling them dumbfuck and or telling them to go suck cock?

 Are you a kid? If you are a kid, you shouldn't be here. If you are an adult, you are just embarrassing yourself.

Mon, 09/26/2011 - 09:05 | 1710573 Kina
Kina's picture

Wow, just scanning the main stream media on gold stories and of course you get the usual anti gold pro stocks mantra, to be expected.

I think some of the worse encomic commentary comes from The Age paper of Australia. Today's effort on gold by their CHRIS ZAPPONE .. is the most shallow ignorant piece I have read on gold for a long while...truly embarass piece. Luckily for him the local population wouldn't have a clue either. This guy and the other one there Pascoe are pig ignorant on anything that isn't a local stock.

Mon, 09/26/2011 - 09:11 | 1710622 Praetor
Praetor's picture

Yep, Pascoe is a complete dick, in essence they are leading Australians into the trap as Peter Schiff has described. As everyone buys up USD only to realise, too late, they are worthless junk.

Mon, 09/26/2011 - 09:07 | 1710608 Sid Non-Vicious...
Sid Non-Vicious LeRoux's picture

What's to worry about? Margin hikes are a HUGE buy signal, for physical. I want 100% margins ASAP.

Mon, 09/26/2011 - 09:08 | 1710609 Robslob
Robslob's picture

 

 

Your hypothesis is based on the undeterminable valuable of fiat...and NO the indexes do not count...

 

Purchasing power is the only measure...which way is that going?

Mon, 09/26/2011 - 09:09 | 1710611 Hephasteus
Hephasteus's picture

It's like a whole herd of face fucking IMF official drama llama's.

 

Mon, 09/26/2011 - 09:10 | 1710614 swanpoint
swanpoint's picture

The time to buy 16,384 shares of PSLV was NOT Friday Sept 23 at 9:47 AM EST.

Mon, 09/26/2011 - 09:10 | 1710616 66Sexy
66Sexy's picture

I am shocked at how weak China is. They are no different than Obama, or any other sold out American politician. They seem to be 'going along to get along' because they believe they will "get something".. just like every other sell out in the world. China aint shit. And i guess they are not very smart either; they believe central banking will benefit them; soon they will be in debted and enslaved just like everyone else in the world. I am amazed how soverign countries sell out to these assholes so easily; but I think it is over: The bankers WON. They have captured China, which is no longer a country, they have captured Russia. They have captured the US.

It's OVER.

Mon, 09/26/2011 - 09:23 | 1710700 Snidley Whipsnae
Snidley Whipsnae's picture

It isn't over... You're just a quitter... The bankers haven't won any damn thing and are up to their azzes in bad debt.

Grow a pair and stop running around with your hair on fire.

Mon, 09/26/2011 - 09:32 | 1710733 WonderDawg
WonderDawg's picture

Was it over when the Germans bombed Pearl Harbor? Hell no!

Mon, 09/26/2011 - 12:47 | 1711747 Smiddywesson
Smiddywesson's picture

It's not over until a modern equivalent of Archduke Ferdinand is shot.  It's not over until we have to invade somebody to save them.  It's not over until all your electronics are blown and you are living off of cat stew because your house is surrounded by face eating zombies.  Give it another six months or so before we panic, ok?

Mon, 09/26/2011 - 09:10 | 1710618 bania
bania's picture

silver down 15% then up 15% in less than 6 hours. if dow did this every mom and pop would pull the rip cord and never invest in equities again.

Mon, 09/26/2011 - 09:11 | 1710621 monopoly
monopoly's picture

At some point the idiot channel may just stop talking about gold and silver and move on to what really counts,BAC, MS,  RIMM, NFLX, CMG and HPQ. We do not need so much press time. Just here for the long haul.

But that was some volatility last night. Expected to wake up to gold down another $100.00. Must admit will add to my silver horde if it sees 25. This is a long process.

No margin, no double, triple ETFs. But you all know that already. My charts show strong support at 1585 for gold. Silver, just do not know with that one. More unpredictable that my sweet wife.

Mon, 09/26/2011 - 09:12 | 1710623 LongSoupLine
LongSoupLine's picture

Silver (on the weekly chart) touched the 61.8 fib retrace ($26.05), which is the 100 MA as well.  If it fails on this bounce and falls through $26 we can likely see mid 23's.

Of course, this is my loose analysis, and I'm a complete idiot, which is why I scale-in my purchases tied to key levels and not wait for the "golden egg level"...whatever that is.

Mon, 09/26/2011 - 10:24 | 1711037 ManufacturedOpinion
ManufacturedOpinion's picture

Me too.  I gotta be one of the dumbest motherfuckers out there.

All I know how to do is this:  Every time silver goes down 5% I convert 1% of my net worth into it.

Yawn ... so mechanical - so simple.

"Buying all the way down and halfway up the other side."

Mon, 09/26/2011 - 09:12 | 1710624 KingOfMilwaukee
KingOfMilwaukee's picture

Berksire has just announced a share buyback. The stock is up, which the only reason he made the announcement in the first place.

Another case of Buffett using the media to help his own cause while pretending to be some guru looking out for the USA, while in fact he has become a Benedict Arnold against gold and inflation and all he use to believe in.

Mon, 09/26/2011 - 09:12 | 1710625 TradingJoe
TradingJoe's picture

yadayadayadaetc....! Gold & Silver weather paper or physical underly one and the same "analysis" and that it:

 

FEDster's print, it'll go UP, FEDster's DON'T print, it'll go DOWN!

 

Me think, FEDster's WILL print, eventually, and thus PMs will go UP!

Anythign else is blantant rethoric! And a waste of time! Yhe whole world(except a few dickheads) knows that the shit storm about to hit globally, requires to hold PHYSICAL, store your almost worthless FIAT in there until you can re convert back to whatever will "raign" THEN!

Stop making yourselves and other mad about what's gonna happen to Gold "when, If, maybe, bla bla"!

Mon, 09/26/2011 - 09:20 | 1710691 SheepDog-One
SheepDog-One's picture

The danger is always out there that Central Banksters will get in so much trouble here that they will suddenly go Double Secret Full Retard and emergency print.

Mon, 09/26/2011 - 12:51 | 1711752 Smiddywesson
Smiddywesson's picture

And that becomes an ever more possible danger as we double down to kick the can. 

Mon, 09/26/2011 - 09:13 | 1710630 maverick91919
maverick91919's picture

Sadly the best part of that Marc Faber interview came a few minutes later and obviously CNBC decided not to post it. For anyone that missed it live, Faber went on in the second half of the interview to say the Fed is a 'criminal organization' and explained in detail why he feels that way. CNBC anchors were very quick to cover their ass, but it was classic Faber, I hope someone here can find a video of it?

Mon, 09/26/2011 - 09:19 | 1710688 turicum
turicum's picture

YES, a link to that part would be appreciated here, too.

Mon, 09/26/2011 - 09:14 | 1710637 monopoly
monopoly's picture

First time I have seen this in the WSJ. They been reading Tyler's posts.

WSJ:

Pivot Point: Investors Lose Faith in Stocks
Mon, 09/26/2011 - 09:17 | 1710649 Kina
Kina's picture

Im sure the corrupt cartel and TPTB will still do their best to knock gold and silver down.

Mon, 09/26/2011 - 09:21 | 1710694 Mr_Wonderful
Mr_Wonderful's picture

The probability that gold will retest the 200-day MA is quite high IMO.

It´s way below the 50-day at 1780, doesn´t seem to be able to get it up to retake the 100-day at 1670.

Looking rather bearish, but we shall see.

Mon, 09/26/2011 - 09:29 | 1710725 Johnny Lawrence
Johnny Lawrence's picture

You shouldn't be getting down votes simply for telling people what the charts look like.  I'm a believer in the metals, but the technical picture does look awfully lousy. 

Mon, 09/26/2011 - 10:27 | 1711049 ManufacturedOpinion
ManufacturedOpinion's picture

"... but the technical picture does look awfully lousy."

Which, of course, duzn't mean a damned thing in this purely manipulated market.

Mon, 09/26/2011 - 09:25 | 1710695 lynnybee
lynnybee's picture

...... luv Dr. Faber; one of my favorites.    am on my way to the coin guy;  just hope he hasn't been cleaned out !

Mon, 09/26/2011 - 09:25 | 1710709 freethinker4now
freethinker4now's picture


 BBC Global News 
http://a2.twimg.com/a/1316728146/phoenix/img/sprite-icons.png); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; overflow-x: hidden; overflow-y: hidden; width: 15px; height: 14px; text-indent: -99999px; outline-style: none; outline-width: initial; outline-color: initial; background-position: -192px 0px; background-repeat: no-repeat no-repeat; padding: 0px;">  by stacyherbert

Wreck of British cargo ship Gairsoppa, sunk in 1941 with 7million ounces of silver, is found in the Atlantic. More soon 

Mon, 09/26/2011 - 09:25 | 1710711 yabyum
yabyum's picture

Ouch Swan, thats going leave a mark.

Mon, 09/26/2011 - 09:26 | 1710714 mvsjcl
mvsjcl's picture

Not quite sure why he'd telegraph his intention. But, heck, I'm just an accumulator, not a trader, so what do I know?

Mon, 09/26/2011 - 09:27 | 1710718 Kina
Kina's picture

OK now it is blatantly obvious we have a JPM or BB concern troll here.

 

Forget your charts, watch Bernankes print button, keep an eye on JPM/HSBC invisible silver and gold.

Mon, 09/26/2011 - 13:08 | 1711821 Smiddywesson
Smiddywesson's picture

It's not that the charts are useless, it's that they can't make your decisions for you or you are dead meat.

TPTB are looking at the same charts.  Are they likely to move the price to favor a position a chart pattern put you in, or more likely to trap retail in such a position? 


"It happened just as I figured. The traders hammered the stocks in which they figured they would uncover the most stops,and, sure enough, prices slid off."  -  Reminisences of a Stock Operator

Anything, even the Holy Grail of systems, will fail miserably if you end up joining retail clustered on one side of the trade.  They took gold down because retail was all on the long side and they had the money to move the price.  Beware those charts.

Mon, 09/26/2011 - 09:28 | 1710723 monopoly
monopoly's picture

Agree, from a chart perspective, it could move to the 200dma. IF it does that, my dealer will need a truck to make my delivery.

Mon, 09/26/2011 - 09:29 | 1710724 ivars
ivars's picture

Faber is right, for gold, the price will go up now, as it rebounds quite sharply, though not higher  than 1800 in November,  for a few months till March 2012,  or so when it will fall again back to 1600. For silver, on other hand, the corridor till Q2 2012 is pretty flat- 25-32 USD- but then it may start moving to  reach 80-100USD. At least that is what the charts say.

Gold will however take long time to reach above 2000 USD.

Silver went to 26 on Monday, amazing! Exactly where it was predicted to land in this time in this March prediction chart(25-32USD corridor in H2 2011).:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&start=40#p31020

and gold went to 1550! fantastic: Again, exactly where it was expected to be in this April prediction ( which predicted also the bubble-well I expected it to be there in November) - down to 1500-1600 in November 2011.And I expected bubble and crash in October- it happened in September..

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&start=220#p32176

Mon, 09/26/2011 - 10:42 | 1711165 Alea Iactaest
Alea Iactaest's picture

Why do you cut-and-paste the *exact* same post 2x in the same thread?

Mon, 09/26/2011 - 11:48 | 1711410 ivars
ivars's picture

Yes. I wonder myself.

Mon, 09/26/2011 - 13:09 | 1711825 Smiddywesson
Smiddywesson's picture

I get that when my computer lags.

Mon, 09/26/2011 - 09:39 | 1710775 Mr_Wonderful
Mr_Wonderful's picture

There is some urge to print.

 

FOMC member Susan Raskin suggests additional Fed actions may be warranted even as previous steps have done less than hoped to assist the economy. Instead of concluding the Fed didn't pursue the right course, the ineffectiveness of current policy may mean a doubling-down is necessary.

Mon, 09/26/2011 - 09:39 | 1710776 freethinker4now
freethinker4now's picture

Faber "S&P going to 1,10 &. Gold oversold @ $1,500, going to buy some soon" Thats what he asid. Not Gold going to $1,000!

Do NOT follow this link or you will be banned from the site!