Ok what's happing to the metals ?
Smittys
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Smittys
Posts: 9,876 ✭✭✭✭✭
Smittys
Posts: 9,876 ✭✭✭✭✭
Comments
May go a little farther from the sounds of the paper threads.
I knew it would happen.
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
–John Adams, 1826
<<<deafening silence>>>
I knew it would happen.
Second, we will also see the expiration of options contracts in two days. If the spot price at the close of trading on the day that gold (and silver) options contracts expire is higher than the contract price on a call option, the owner will exercise the option to demand immediate delivery of physical gold. The higher the price of gold, the more call options that will be exercised. Conversely, a lower gold spot price will reduce the demand for gold for immediate delivery. There is a major block of call options at $1,050, so expect prices to stay below that level through Wednesday night."
Gold Blast-off starts on Friday
Sounds like price got beat down to reduce demand of physical delivery on this week's expriring options contracts. Could be a very good sign that there's not enough physical gold out there!
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
<< <i> If that is the case, who in heavens name thinks the US dollar is a good investment these days? >>
The Chinese ? ! ? !
1947-P & D; 1948-D; 1949-P & S; 1950-D & S; and 1952-S.
Any help locating any of these OBW rolls would be gratefully appreciated!
what we have now is "a self correcting market" which is the best kind.
www.AlanBestBuys.com
www.VegasBestBuys.com
Texthttp://www.barrick.com/News/PressReleases/PressReleaseDetails/2009/Barrick-Reports-Q3-Results-Significantly-Reduces-Gold-Hedge-Position/default.aspx
Remember its not money thats the root of all evil, its "the love" of money which is the root of all evil. Precious metals will never reach their potential as long as there is enough interest on the other side line whose profits rely on lower precious metal prices. Ya the dollar has been the arch nemesis of the stock market and commodities for a while now. You can guarantee that for every 100 points the DOW goes up or down, the dollar index will be about .500 in the opposite direction.
Texthttp://www.barrick.com/News/PressReleases/PressReleaseDetails/2009/Barrick-Reports-Q3-Results-Significantly-Reduces-Gold-Hedge-Position/default.aspx
It could. But Barrick will be slowly closing out these hedges over the next "year or so".....or so they say. What's to stop them from papering up those hedges with yet more leveraged paper derivatives? Yeah, it would look bad if in 2 years they are right back at the table telling shareholders the hedges are still there and more stock dilution is needed. They had a big increase in revenues this quarter by hundreds of millions of dollars yet it is being wiped out by billions in hedges. This is basically what everyone told them would happen 5-10 yrs ago if they heavily hedged forward production. And most of those hedges require them to sell gold at $400/oz or less. Considering they were one of the greatest players in the gold carry game of the 1990's that attitude has been hard to shake off. Then again if the big banks are the power behind Barrick then it makes sense why they kept those hedges on all these years...gold price supression. They made approx $2 BILL during the carry trade years when real gold miners were slowly dying. That $2 BILL looks like chump change today.
roadrunner
<< <i>They appear to be moving inversely with the dollar, as they have been for some time. >>
BINGO...watch the dollar and you'll know what's happening to stocks and commodities.
<< <i>who in heavens name thinks the US dollar is a good investment these days?
<<<deafening silence>>> >>
I would much rather own the US dollar over the Euro, British pound or Yen. And right at this very moment, over the Aussie, New Zealand and Canadian dollars. I wouldnt even wipe my butt with the Chinese currency. Probably get lead poisoning or something.
Knowledge is the enemy of fear
<< <i>
<< <i>who in heavens name thinks the US dollar is a good investment these days?
<<<deafening silence>>> >>
I would much rather own the US dollar over the Euro, British pound or Yen. And right at this very moment, over the Aussie, New Zealand and Canadian dollars. I wouldnt even wipe my butt with the Chinese currency. Probably get lead poisoning or something.
for the short term, I cannot argue with you, as currency fluctuations, up or down, is a total crap shoot.
for Long term...please read: http://www.sprott.com/Docs/MarketsataGlance/MAAG_10_2009.pdf (summary: get out of the US dollar!!)
LINK
Looks like we're getting ready to break out to the upside when the one-dimensional stock guys start hating gold enough to complain about it on tv.
I knew it would happen.
I am very close to thinking the dollar is about to begin a decade(s) long rally. Im still crunching data, but am leaning toward the contrarian camp--if there even is one.
Knowledge is the enemy of fear
I knew it would happen.
Yes, it is the sign of the times here that the folk that we previously had listened to for sound advice are now in the trenches fighting their detractors with misinformation, hyped and skewed numbers, and in-the-tank parroting of what the admin would want us to hear. Even the public television media is caught up in the scam to the point there was a smallish but very public protest last week here about one of the local channels sympathising with the current party in power. The protest was to ask for fair and balanced reporting instead of in the tank biased news though methinks the protests were for naught.
Maybe the market people are just trying to impress each other with their stunning powers of perception eventhough they are all saying the same thing and maybe they hope we will be impressed enough to never think to doubt their gifted advice. J6p is a non-player, suzy homemaker is keeping the cash close to home, the cube dwellers are stashing anything and everything they can get their hands on and anyone with two or more contiguous brain cells already knows they are getting the mushroom treatment from the media and they need to be making up their own conclusions. The market types and the admin folk want everyones money fully on the table and invested in this great ponzi by the banks and they will go to great efforts to make everyone think they are safe as long as they just keep swimming into the nets with all the other mullets, please.
Buy a new house with a tax credit, buy a new car with the clunker credit, pump up the IRA and consider a Roth, get a student loan at a reduced interest rate, get those credit accounts cookin' for Christmas, just please stay on the hook for as much of your cash as possible and all will be well; you can still live like you did a couple of years ago...bwwwwwwaaaaahahahahaha. As mentioned in a previous post, the most sincere form of protest at this point is to own PM, stay away from credit card balances and keep your cash nearby and out of other peoples hands.
Please return to your regularly scheduled programming.
<< <i> I am very close to thinking the dollar is about to begin a decade(s) long rally. Im still crunching data, but am leaning toward the contrarian camp--if there even is one. >>
Well you wont have any problem getting dollars. The Fed is printing trillions of them as fast as Congress can spend them and that won't stop too soon.
<< <i>They were just talking on CNBC about how bad an idea buying gold is - how overbought and vulnerable to a slide it is. One guy remarked that he didn't know how many times investors would fall for the "gold bug" before they learned.
Looks like we're getting ready to break out to the upside when the one-dimensional stock guys start hating gold enough to complain about it on tv.
Every time the little guy puts some of his hard earned money into gold or silver it is a vote of no confidence against the current Administration, the big banks and the stock guys. Such doubt (and even worse independent thinking) cannot be tolerated.
CNBC would have me believe that the gold I bought at $900 was a mistake. All I'll I've learned it that I should have bought more.
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
If that did occur I think gold would have to go along for the ride. There are just too many liabilities on the US dollar going forward. I can't see the dollar gaining value long term while gold is trashed. It's not the 1980's or 1990's anymore. Didn't the dollar's value peak in the mid-1980's? So it's been a general 25 year decline. Wouldn't that correlate with the US political and economic power peaking in the mid-1980's? If everyone devalues together the US dollar could certainly "gain" against competing currencies causing the USDIndex to rise. That could be called bullish. But all of them would still be falling against gold. Gold's world annual production has been falling since around 2000-2001 and that's against a backdrop of spending 3X the money and processing a lot more ore to come up with less gold ounces. In those same 10 yrs the price has quadrupled. That sort of throws a wrench in the logic of those who say gold production will ramp up to meet demand. The only "production" that can be ramped up is taking above ground gold from current owners.
The govt is keystroking TRILLIONS of dollars into existance. But the actual amount of currency is only around 1-1/2 trillion dollars, with 2/3 of that amount overseas and out of the hands of US citizens. If there ever become a crushing demand for paper currency because electronic systems were not available (ie checks/credit cards no good) those US dollars would become quite valuable. Actually there is 4X more gold in the world than printed US currency. The existing printing presses couldn't be run fast enough to make a dent in $1 TRILLION of currency on short notice even if they ran 24 hrs a day pumping out only $100's. About the only way to catch up quickly is to come up with some $1,000 to $10,000 plates.
The talking heads like to talk about gold's volatility. What they fail to realize is that gold is merely responding to the whipsaws of the world's major trading currencies. If the currencies were stable, gold would be as well. If you look at gold's chart over the past 10 years you will find that it's trend is much more stable when compared to stocks and currencies. One could say that gold is the more stable item in a sea of economic/financial volatility. But none of that makes good news copy. In the immortal words of Frankenstein:
"Fire......baaaad.......Gold....baaaad."
roadrunner
Yes, mentioned here but not discussed much, probably because it seems to be one of those numbers that are hard to come up with. I would think that there is not too much cash out there and if even a small percentage of folk go to the bank and ask for a wad of their cash that it would severely strap the cash system, not that there really is one anymore. Strong recommendation for keeping some cash on hand and I'm not talking about the atm. Just for drill, reach in your pocket and see if you can come up with enough cash for a weeks worth of groceries...hummmm.
"About the only way to catch up quickly is to come up with some $1,000 to $10,000 plates."
You can be sure this has come up in discussions. What would be interesting is if they created the "0's" for international trade only kind of like the trade dollar (yes, I know it circulated in the US a little), not legal tender in the US. US bill denominations Funny that there is not an actual 1 millllliooooonnn dollar bill in the US, only the 100,000 and it was a gold certificate and you can be pretty sure they aren't gonna be issuing any $100,000 gold certificates anytime. So, one trillion dollars would be 10 million of those cute little 100,000 gold certificates...awesome.
Stack 'em, stash 'em, throw 'em in a sack.
<< <i>The existing printing presses couldn't be run fast enough to make a dent in $1 TRILLION of currency on short notice even if they ran 24 hrs a day pumping out only $100's >>
The 100 bill is the highest in anonymous notes but I think we all know there is a lot more around in US TBills in million plus denoms than in 100 bills. They can print billions real fast if needed. Of course the preferred way is a simple electronic journal entry and POW, Goldman Sachs gets another few billion at 0% interest to invest on insider information.
The only ones who get nailed are the Martha Stewarts and the foreigners who aren't in the "club"
<< <i>
<< <i>who in heavens name thinks the US dollar is a good investment these days?
<<<deafening silence>>> >>
I would much rather own the US dollar over the Euro, British pound or Yen. And right at this very moment, over the Aussie, New Zealand and Canadian dollars. I wouldnt even wipe my butt with the Chinese currency. Probably get lead poisoning or something.
Well I own all of the above with the exception of the Euro and Pound.
I also own the Swiss Franc also which is almost at par
No matter how hard you try to polish this turd the dollar is the weakest link
The dollar is going to .72 and then .63
Maybe not in the near future but in the forseeable future
Cohodk- since you think the dollar is going up or is the currency of choice, where do you think the stock market is heading?
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>
<< <i> I am very close to thinking the dollar is about to begin a decade(s) long rally. Im still crunching data, but am leaning toward the contrarian camp--if there even is one. >>
Well you wont have any problem getting dollars. The Fed is printing trillions of them as fast as Congress can spend them and that won't stop too soon. >>
Indeed, I don't know how people can be so overly optimistic on the dollar's future strength. To me, it's irrational exuberance to the max, and that's putting it kindly.
Text
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
<< <i>
<< <i>
<< <i>who in heavens name thinks the US dollar is a good investment these days?
<<<deafening silence>>> >>
I would much rather own the US dollar over the Euro, British pound or Yen. And right at this very moment, over the Aussie, New Zealand and Canadian dollars. I wouldnt even wipe my butt with the Chinese currency. Probably get lead poisoning or something.
Well I own all of the above with the exception of the Euro and Pound.
I also own the Swiss Franc also which is almost at par
No matter how hard you try to polish this turd the dollar is the weakest link
The dollar is going to .72 and then .63
Maybe not in the near future but in the forseeable future
Cohodk- since you think the dollar is going up or is the currency of choice, where do you think the stock market is heading?
MJ >>
If he is correct about the dollar staging a massive rally then precious metals AND the stock market will suffer a huge selloff.
My family thinks Im a little wacko but I like to consider myself a "contrarian", after all, just because everyone else expects the sun to rise in the morning doesnt make me wrong.
<< <i>I get up every night at 10pm and go outside to try and cut my grass. I'm know one of these nights the sun will rise around 10pm.
My family thinks Im a little wacko but I like to consider myself a "contrarian", after all, just because everyone else expects the sun to rise in the morning doesnt make me wrong. >>
Ya, CNBC is the master at bringing out the contarian players or events that they say cause tops.
Like when the model Giselle ( Mrs. Tom Brady) demanded to be paid in Euros and Jay Z had a video with 500 euro notes in it......
They said that signaled the top in the Euro and that when super models and rappers are in on the trade it's time to get out...laughing
The Euro was close to 1.40 at the time she actually made the statement
Moral of the story..........Giselle and Jay- Z know currencies : )
The hubrus spewed sometimes amazes me by the ones holding the microphone
"any man with a microphone can tell you what he likes the most"-----Jack White the White Stripes
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......