saveyourassetsfirst3 |
- Have Gold Skeptics Been Validated?
- Gold Rally Provides Two-Fold Benefit To Newmont Shareholders
- Peter Spina talks to James Turk
- Gold Bubble Pops Before Jackson Hole Speech
- Outlook For Gold And QE3
- Warren Buffett's Magical Fairy Dust Lands On BofA
- 5 ETFs Investors Should Closely Watch Ahead Of Bernanke's Speech
- Egon von Greyerz talks to James Turk
- Spina: gold and silver are money again
- How does possibility of QE3 make gold drop $200?
- Gold Down Further 2% – Chorus of ‘Gold Bubble’ Callers Such as Roubini Out in Force Again
- Any Chance of $1500 Steady?
- Quick Correction in Gold or the First Part of a Bigger Decline?
- U.S. home prices are seeing dramatic new declines
- The big reason behind yesterday's dramatic gold decline
- CNBC Gold is over! The Fed is done printing money, LOL, enjoy!
- Margin requirements on gold futures hiked again
- Gold and Dow Moving to Equality?
- Biggest gold price rout of the year
- Gold Is Not in a Bubble: Alan Greenspan
- How Much Gold Do You Need? - Casey Research
- Despite Pullback, Gold, Silver & Mining Shares Still a Buy: Peter Schiff
- Merkel rejects ally's call to use gold as bailout loan collateral
- Tie Central Bankers' Hands, Return to Gold Standard: James Grant
- We See Unprecedented Physical Gold Demand: Ben Davies
- CME raises gold margin requirements again
- Greenspan says that gold is not in a bubble
- Precious Little to Halt Rising Fear Factor
- Gold Reacts to Markets
- Gold & Silver Market Morning, August 25, 2011
| Have Gold Skeptics Been Validated? Posted: 25 Aug 2011 06:44 AM PDT By Zecco: By Paul Quintaro After almost hitting $1,900 on Monday, Gold started to pull back on Tuesday, and sharply declined on Wednesday, dipping well below the $1,800 price mark. The precious metal has enjoyed a bull market for the last decade, although much of the action in the price of gold has occurred within the last several weeks. Since the start of July, gold has rallied nearly $400. The move on Wednesday represented a sharp reversal in the trade, as the metal plummeted over 5% during the session. The sell-off may have been due to a variety of factors. Like silver back in May, the gold price may have suffered due to margin hikes. Tuesday, the Complete Story » |
| Gold Rally Provides Two-Fold Benefit To Newmont Shareholders Posted: 25 Aug 2011 06:32 AM PDT By Trefis: Newmont Mining (NYSE:NEM) announced in April that it will link its dividends to the prevailing gold price. The recent turmoil in the equity markets has led a robust rally in the spot market gold price as investors have sold off risky assets. With the new dividend policy and the potential for greater profitability due to the higher gold price, we see significant upside to the company's stock price. Newmont, primarily a gold miner, competes with other international gold producers like Barrick Gold Corporation (NYSE:ABX), AngloGold Ashanti Ltd. (NYSE:AU) and Goldcorp Inc. (NYSE:GG). We currently have a $75.80 price estimate for Newmont's stock, implying a 20% premium to the market price. Gold price linked dividend will woo investors The rally in gold benefits Newmont's shareholders more than those of most other mining companies due to the dividend policy, whereby shareholders receive an additional 20 cents per share for every $100 increase Complete Story » |
| Peter Spina talks to James Turk Posted: 25 Aug 2011 06:15 AM PDT Peter Spina, CEO of GoldSeek.com, and James Turk, Director of the GoldMoney Foundation, talk about gold. They discuss how little media attention is paid to gold and how that is slowly changing. They also talk about the differences between investing in gold bullion and gold mining shares. They talk about many aspects of gold mining, such as the differences between junior and senior miners, the importance of location and of new discoveries, as well as the dangers of nationalisations and other geopolitical risks. |
| Gold Bubble Pops Before Jackson Hole Speech Posted: 25 Aug 2011 05:51 AM PDT By Forexyard: By Russell Glaser The price action from yesterday's early New York trading session was particularly dramatic when gold prices collapsed. The 5.6% drop in the price of the NYMEX gold futures contract sends a signal from the commodities market that additional stress is apparent the financial markets. Since the beginning of July the price of gold has accelerated rapidly, rising from $1,500 to over $1,900 as of Tuesday morning. However, that all changed following the announcement that the Shanghai Gold Exchange would raise the margin requirements for gold forward contracts for the second time this month. This led to a decline to $1,823, a price below Monday's closing price. Technical analysts would note this as an outside day down candlestick, a powerful reversal signal. Wednesday's price action followed with a continuation of the move lower and the selling was intensified as the price dipped to a low of $1,741. Most Complete Story » |
| Posted: 25 Aug 2011 05:40 AM PDT By Ananthan Thangavel: The past week saw a resurgence in selling pressure among US stocks, with the panic of last week's selloffs returning. With the VIX index back comfortably above 40, risk aversion is at a fever pitch. Investors have turned to monetary commodities as a safe haven, bidding up gold seemingly every day for its longest winning streak in years, and increasing prices by almost $150/ounce in the past week. While precious metals have shined even with risk assets getting pummeled in recent weeks, we believe the way forward is becoming rife with risks for all asset classes, including precious metals.The following charts show the CRB Raw Industrial index and the GSCI Total Return index. (Click charts to enlarge) From 8/22 Commodity Analyst Newsletter:
Complete Story » |
| Warren Buffett's Magical Fairy Dust Lands On BofA Posted: 25 Aug 2011 05:40 AM PDT By Felix Salmon: Behold the power of Buffett! With a $5 billion investment which will pay him $300 million per year in perpetuity, Warren Buffett has managed to boost the share value of Berkshire Hathaway (BRK.A) by something north of $12 billion. Oh, and Buffett also gets a massive free option on BofA (BAC) stock — the right to buy 700 million shares at $7.14 apiece, at any point over the next decade. If exercised, that would give him 7% of the company. This is very reminiscent of the time when Buffett did something similar with Goldman Sachs (GS), in the immediate aftermath of the collapse of Lehman Brothers. That too boosted the stock in the short term (although not as much as this), and the investment turned out to be an excellent one for Buffett, even though Goldman's common shares are still trading below that September 2008 level. There are basically two Complete Story » |
| 5 ETFs Investors Should Closely Watch Ahead Of Bernanke's Speech Posted: 25 Aug 2011 05:29 AM PDT By Jarred Cummans: The summer of 2011 is shaping up a lot like that of 2010. Yet again, fears in the eurozone have sparked massive sell-offs in global equities, as more countries become at risk of defaulting this year. Worries over the U.S. economy are also a major factor in the market slump, as many analysts have slashed the U.S. growth outlook for the year. President Obama even weighed in on the situation, stating that our economy will rebound once the housing market finds its footing, a scenario that he feels will not play out for about a year. When markets endured a similar period last year, the Fed rode in to the rescue and announced a $600 billion QE2 program, sending markets surging. Now, investors are looking for Fed Chair Ben Bernanke and his team to pull us out yet again, as Bernanke is set to speak from Jackson Hole, Wyoming on Complete Story » |
| Egon von Greyerz talks to James Turk Posted: 25 Aug 2011 04:30 AM PDT Egon von Greyerz, of Matterhorn Asset Management, and James Turk, Director of the GoldMoney Foundation, talk about the state of the global economy and gold's status as a safe haven. They discuss ... |
| Spina: gold and silver are money again Posted: 25 Aug 2011 03:00 AM PDT Peter Spina, CEO of GoldSeek.com, and James Turk, Director of the GoldMoney Foundation, talk about gold becoming money again and what this will do to the price of gold given the small amount of ... |
| How does possibility of QE3 make gold drop $200? Posted: 25 Aug 2011 01:38 AM PDT Can someone please share with me how the possibility of QE3 on Friday makes gold drop $200? I am not sure how printing billions more FRN's make them more valuable in relation to gold. Thanx in advance. :confused: |
| Gold Down Further 2% – Chorus of ‘Gold Bubble’ Callers Such as Roubini Out in Force Again Posted: 25 Aug 2011 01:34 AM PDT |
| Posted: 25 Aug 2011 01:05 AM PDT As in a full week sub 1.5K? The 300 rise in a week and 200 decline in 3 days really shook up potential goldbugs. Many are thinking this is a profit taking scheme by govs. |
| Quick Correction in Gold or the First Part of a Bigger Decline? Posted: 25 Aug 2011 01:00 AM PDT SunshineProfits |
| U.S. home prices are seeing dramatic new declines Posted: 25 Aug 2011 12:46 AM PDT From Bloomberg: Home prices in the U.S. fell 5.9 percent in the second quarter from a year earlier, the biggest decline since 2009, as foreclosures added to the inventory of properties for sale. Prices dropped 0.6 percent from the prior three months, the Federal Housing Finance Agency said today in a report from Washington. In June, prices retreated 4.3 percent from a year earlier, while increasing 0.9 percent from the previous month. Foreclosures are boosting the supply of properties on the market and undercutting the confidence of homebuyers, sapping demand even as mortgage rates tumble to the lowest in more than half a century. The U.S. inventory of homes for sale averaged 3.7 million during the second quarter, the highest since the third quarter of 2010, data from the National Association of Realtors show. The mortgages on 6.5 million U.S. homes had late payments or were in foreclosure in June, according to Lender Processing Services Inc. in Jacksonville, Florida. "Foreclosures water down home prices because banks want to get rid of properties as fast as they can," said Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts. "The key number driving foreclosures is the unemployment rate, and we saw that worsen in the second quarter." The unemployment rate in the three months ended June 30 rose to 9.1 percent from 8.9 percent, the first quarterly increase since 2009, according to the Labor Department. California, Nevada Home prices in June fell the most in the region that includes California, slumping 8 percent from a year earlier, the FHFA said. They decreased 7.9 percent in the area that includes Nevada and Arizona. The month-over-month gain in prices exceeded analysts' forecast of 0.2 percent, the median of 16 estimates compiled by Bloomberg. The region that includes Wisconsin, Illinois and Ohio had the biggest increase from May, with a 3.3 percent rise. Mortgage rates for 30-year fixed loans fell to 4.15 percent last week, McLean, Virginia-based Freddie Mac said. The rate probably will average 4.6 percent this year, lower than 2010's 4.7 percent, according to Fannie Mae in Washington. Sales of U.S. previously owned homes dropped in July, reflecting an increase in contract cancellations due to strict lending rules and low appraisals, Lawrence Yun, chief economist of the National Association of Realtors, said Aug. 18. Purchases decreased 3.5 percent to a 4.67 million annual rate, the weakest since November. Today's FHFA report measures changes in real estate values using repeat data on individual properties with mortgages backed by Fannie Mae or Freddie Mac. It doesn't include a dollar value for homes. The U.S. median home price was $171,900 in the second quarter, according to NAR. To contact the reporter on this story: Kathleen M. Howley in Boston at kmhowley@bloomberg.net. To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net. More on housing: America's cheapest real estate CNN: The housing recovery has "vanished" How you'll know when housing has finally bottomed |
| The big reason behind yesterday's dramatic gold decline Posted: 25 Aug 2011 12:42 AM PDT From Washington's Blog: Gold tanked today, crashing $104 points. That is the largest one-day crash since March 2008, erasing two weeks' worth of gains. Margin Requirements Hiked Zero Hedge explains why gold tanked – margin requirements were hiked sky-high by two major exchanges: Two weeks after the CME hiked gold margins by 22%, and two days after the Shanghai Gold Exchange sent them higher by 26%, here comes the CME, as we expected, with another 26% gold margin hike. And now we know that this particular margin hike was leaked well in advance, and explains the entire $100 plunge in gold today... Read full article... More on gold: Why owning gold is not enough Four reasons to short gold now The correction is here: Gold plunges $104 today |
| CNBC Gold is over! The Fed is done printing money, LOL, enjoy! Posted: 24 Aug 2011 11:40 PM PDT  |
| Margin requirements on gold futures hiked again Posted: 24 Aug 2011 10:45 PM PDT Unsurprisingly, perhaps, given the recent gains in the gold price, the Comex operator CME Group announced another rise in margin requirements on gold futures yesterday - the second such rise ... |
| Gold and Dow Moving to Equality? Posted: 24 Aug 2011 09:32 PM PDT Bill Bonner at The Daily Reckoning wrote this before today's $100+ drop in the price of gold. Interestingly, he also thought gold might go down, perhaps for some period. Is he discouraged? Hardly, he believes it would be crazy to divest of gold and expects one ounce of gold to eventually be equal to the [...] |
| Biggest gold price rout of the year Posted: 24 Aug 2011 09:30 PM PDT Stock markets rose yesterday and the gold price plunged as investors regained some optimism about the state of the global economy. The German DAX settled 0.84% higher yesterday, with Britain's ... |
| Gold Is Not in a Bubble: Alan Greenspan Posted: 24 Aug 2011 09:19 PM PDT ¤ Yesterday in Gold and SilverThe gold price was up about twenty bucks when Comex trading began in New York at 8:20 a.m. Eastern time...and as I said in 'The Wrap' in my column yesterday, the bullion banks were still lurking about. It was just a matter of whether they showed up during London trading, or when the Comex opened. Well, the latter case turned out to be the correct one, as moments after the Comex open, the selling pressure began...and by the time that the Comex close came at 1:30 p.m. Eastern, the gold price was down almost a hundred bucks from the Comex open...and down $77.90 on the day. Gold volume set a new record yesterday...and I'll have more on that further down.
Here's the New York Spot Gold Bid price so you can see all the New York action, which is the only price action that counted yesterday...and most other days as well.
The Kitco silver graph looks about the same as the gold graph, with 'da boyz' showing up at precisely the same time in silver...and by the close of Comex trading, silver was down three bucks from the Comex open. The price recovered a bit in the thinly-traded New York Access Market...and silver finished down $2.11 spot on the day. Volume was heavy, but nowhere near record volume territory.
Here's the New York Spot Silver Bid price chart as well. Note the low price set at 1:30 p.m. yesterday afternoon at the Comex close.
For Wednesday, gold was down 4.26%...platinum down 3.22%...palladium down 1.72%...and silver, as always, got hit hardest...down 5.05%. All these precious metals had intra-day loses in New York far in excess of the numbers posted in the above paragraph...with silver leading the pack by the widest margin...around 7.8% from its high to its low. No other precious metal even came close. I'm providing the U.S. dollar chart for entertainment purposes only, as it is no longer a pricing factor in the precious metals market.
The gold stocks certainly had a different kind of trading day. After gapping down a bit at the open and making a feeble attempt to rally, they got sold off heavily...and by 10:15 a.m. were just about a their lows for the day. The actual low came late in the New York lunch hour...and it wasn't much a low. From there, the stocks rallied back strongly, gaining back two percent from the bottom. This was an amazing performance considering the fact that gold suffered one of its biggest one-day losses ever...and declined throughout the entire time the equity markets were open. The HUI only finished down 2.15% on the day. One wonder who the buyers were that were in there catching a falling knife. What do they know that we don't? Just asking.
Although some of the smaller junior producers got whacked pretty good, there were a couple of green arrows in my tracking list yesterday. A lot of the stocks that make up Nick Laird's Silver Sentiment Index actually fared much better than the average...and the index was only down 2.61% on the day. It could have been far worse...as the 'catch a falling knife' buyer was obviously active in some of the large cap silver companies as well.
(Click on image to enlarge) The question I always ask myself when I see this sort of counterintuitive activity in the stocks, is whether the big buyer is loading up to make a profit on the next price rise...or are they going to use these cheap shares to dampen share prices during the next rally. John Embry, amongst others, has always said that someone is manipulating the share prices of gold and silver stocks...and this is one possible way they could do it. I could also be looking for black bears in dark rooms that aren't there...so keep that in mind as well. But, having said that, you have to ask yourself this one question...why have the shares done so poorly in the face of massively rising gold and silver prices? Think about it. We'll find out on the next rally in both metals. The CME's Daily Delivery Report showed that 468 gold, along with 10 silver contracts, were posted for delivery on Monday. The big short/issuer [388 contracts] in gold was JPMorgan in their proprietary trading account...and the biggest long/stopper [247 contracts] was JPMorgan in its client account. Running close behind as a stopper was Goldman Sachs with 161 contracts received. There shouldn't be too much left to deliver in gold this month...and whatever's left, has to be delivered by the end of the trading day on Tuesday. Yesterday's issuers and stoppers report is worth a look...and the link is here. There were big withdrawals from both GLD and SLV yesterday. GLD showed another big decline, this time it was 876,288 troy ounces...which was an even bigger withdrawal then they reported on Tuesday. SLV showed a withdrawal of 1,948,224 ounces...after adding about 4.1 million ounces on Tuesday. The U.S. Mint had another sales report. They sold 7,500 ounces of gold eagles...2,000 one-ounce gold buffaloes...and another 100,000 silver eagles. On Tuesday, the Comex-approved depositories reported receiving no silver, but shipped 645,517 ounces of the stuff out the door...virtually all of it from the Bank of Nova Scotia...and the link to that activity is here. I had an interesting comment from reader J.P. in Iowa yesterday about silver availability at the bullion store he trades at..."I read with interest the story of T.K. in the U.K. I went to my usual dealer in Iowa to get some silver eagles and he was sold out. He said earlier that day a man came in and asked to buy all the stock the dealer had." Silver analyst Ted Butler had his mid-week commentary to his paying subscribers yesterday...and here's a free paragraph... "Since the weekly review a few days ago, the price volatility in gold and silver has been extraordinary. Gold first climbed by $60 and then plunged by $160. Over the same three days, silver first climbed by $1 and then crashed by more than $5. I have tried to explain why we climbed by more than $400 in gold from July 5 and why we might fall (or further explode). That explanation involved the massive bet on the short side by the COMEX commercial interests that went bad to the tune of almost $10 billion at the recent peak. Many are quick to claim that it was speculative buying that drove gold higher, but they are only partially correct. Technical funds and other speculators did buy and establish long positions on the way up, but such buying mostly ceased at about the $1,600 level. The speculative buying that drove prices the last $300 higher, from $1,600 to over $1900, was largely panic short covering by certain commercials. I postulated that the market would further explode if and as more short covering occurred and that if that commercial short covering was satiated, prices could crash. It looks like we got both." Here are a couple of graphs that Nick Laird over at sharelynx.com sent me late last night. They show the 'volatility' in the gold and silver markets going back to late 2000. Here's the one for gold...and as you can see, yesterday's price action produced one of the biggest volatility spikes to the downside in the last ten years.
(Click on image to enlarge) And here's the one for silver...and silver's volatility hardly stands out at all.
(Click on image to enlarge) You can bet your last nickel that the Commercial shorts of all descriptions in the Comex futures market in gold and silver were either covering, or going long themselves yesterday. CME raises gold margin requirements again. Merkel rejects ally's call to use gold as bailout loan collateral. Tie Central Bankers' Hands, Return to Gold Standard: James Grant ¤ Critical ReadsSubscribeMoody's downgrades Japan, blames fractured leadershipThe downgrade came as the government unveiled a $100bn loans programme to help companies deal with a strong yen that threatens the economy. Moody's reduced the rating on Japanese government bonds to Aa3 from Aa2 less than a week before Japan is to select a new prime minister to become the nation's sixth leader in five years. Gee, I don't suppose it would have anything to do with the massive public debt of 200% of Japan's GDP? Nope, probably not! I thank Roy Stephens for this story out of yesterday morning's edition of The Telegraph...and the link is here.  CME raises gold margin requirements againFor the second time this month, the CME Group Inc., the parent company of the main metals and energy exchanges in the U.S., announced late Wednesday an increase in margin requirement to trade gold. It raised the amount of money needed to trade gold contracts by 27% to $9,450 per 100-ounce contract. The move comes on the heels of a $104-an-ounce drop in gold futures prices, which some analysts had blamed partly on speculation that the CME would raise margin requirement again. It's perfectly normal for the CME to raise margin requirements as the gold price rises sharply. Well, that's not what they did. They raised them as prices fell sharply...and announced it after the close of trading yesterday. As Ted Butler has pointed out, they do this because it helps the Comex short holders at the expense of the longs. This is precisely what they did in silver in the days that followed the drive-by shooting on Sunday, May 1st. I thank reader Charley Orr for sharing this very short marketwatch.com story with us. It's well worth skimming...and the link is here.  We See Unprecedented Physical Gold Demand: Ben DaviesHere's a short King World News blog that Eric sent me late last night. The headline pretty much says it all...and the link is here.  Tie Central Bankers' Hands, Return to Gold Standard: James GrantHere's a gold-related story from last week that slipped through the cracks...and I thank Pittsburgh reader Ross Paullet for digging it up for us. Central bankers are in the business of "currency manipulation," James Grant, editor of Grant's Interest Rate Observer, told CNBC Thursday. He wants a "modernized, 21st century gold standard that checks the capacity of central banks to print money." "I am for more rope in regard to the government's hands and less rope around the hands of people in enterprise," he said. The problems in the U.S. economy come from an "accumulation of government initiatives and the sum total gets you to $14.3 trillion in the debt crisis." The story was posted over at cnbc.com on August 11th...and is well worth read. The photo ain't too shabby, either...and the link is here.  Merkel rejects ally's call to use gold as bailout loan collateralGerman Chancellor Angela Merkel gave short shrift to a political ally's call for the use of gold as collateral for all future euro zone bailout loans. Labour minister Ursula von der Leyen's suggestion yesterday caused ructions in Berlin and prompted an immediate denial that it represented government policy. This idea obviously touched a few nerves in Berlin. The story is posted over at the irishtimes.com website...and I thank Roy Stephens for sending it along. This short piece is a must read in my opinion...and the link is here. How Much Gold Do You Need? - Casey Research Posted: 24 Aug 2011 09:19 PM PDT  This short essay was posted in yesterday's edition of Casey's Daily Dispatch...and bears the above title. This is a must read piece, but you have to scroll down a bit to get to it...and the imbedded graph clearly shows the reason why I'm personally 100% 'all in' the precious metals market. The link is here. |
| Despite Pullback, Gold, Silver & Mining Shares Still a Buy: Peter Schiff Posted: 24 Aug 2011 09:19 PM PDT  Here's another item that Eric King sent me last night. This is an audio interview with Peter Schiff...and the above headline shows you the direction this interview is going. The link to this KWN interview is here. |
| Merkel rejects ally's call to use gold as bailout loan collateral Posted: 24 Aug 2011 09:19 PM PDT  German Chancellor Angela Merkel gave short shrift to a political ally's call for the use of gold as collateral for all future euro zone bailout loans. Labour minister Ursula von der Leyen's suggestion yesterday caused ructions in Berlin and prompted an immediate denial that it represented government policy. This idea obviously touched a few nerves in Berlin. The story is posted over at the irishtimes.com website...and I thank Roy Stephens for sending it along. This short piece is a must read in my opinion...and the link is here. |
| Tie Central Bankers' Hands, Return to Gold Standard: James Grant Posted: 24 Aug 2011 09:19 PM PDT  Here's a gold-related story from last week that slipped through the cracks...and I thank Pittsburgh reader Ross Paullet for digging it up for us. Central bankers are in the business of "currency manipulation," James Grant, editor of Grant's Interest Rate Observer, told CNBC Thursday. He wants a "modernized, 21st century gold standard that checks the capacity of central banks to print money." "I am for more rope in regard to the government's hands and less rope around the hands of people in enterprise," he said. The problems in the U.S. economy come from an "accumulation of government initiatives and the sum total gets you to $14.3 trillion in the debt crisis." |
| We See Unprecedented Physical Gold Demand: Ben Davies Posted: 24 Aug 2011 09:19 PM PDT  Here's a short King World News blog that Eric sent me late last night. The headline pretty much says it all...and the link is here. |
| CME raises gold margin requirements again Posted: 24 Aug 2011 09:19 PM PDT  For the second time this month, the CME Group Inc., the parent company of the main metals and energy exchanges in the U.S., announced late Wednesday an increase in margin requirement to trade gold. It raised the amount of money needed to trade gold contracts by 27% to $9,450 per 100-ounce contract. The move comes on the heels of a $104-an-ounce drop in gold futures prices, which some analysts had blamed partly on speculation that the CME would raise margin requirement again. |
| Greenspan says that gold is not in a bubble Posted: 24 Aug 2011 09:19 PM PDT  "Gold, unlike all other commodities, is a currency," he said. "And the major thrust in the demand for gold is not for jewelry. It's not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating." Perceived? Seems? [Sir] Alan is one of the chief architects of the dollar's one-way ticket to oblivion. The above quote is buried at the end of this Bloomberg article that's headlined Greenspan Says Euro 'Breaking Down'...and I thank reader 'Roger' for sending it along. The link is here. |
| Precious Little to Halt Rising Fear Factor Posted: 24 Aug 2011 09:19 PM PDT  It's not the price of gold that's going up. It's the price of fear. And fear has just passed $1,900 an ounce. Gold prices have already risen 46% since the start of the year and a whopping 19% this month alone. Behind these gains lies an intensifying fear that the monetary and fiscal authorities can get nothing right and everything wrong in their attempts to fix the fiscal problems in the world's ailing economies. "The fear component [of gold buying] is driven by the negative real interest rates, the excessive government debt, and the rising fear of a collapse of the system," reckoned Austrian-based Erste Group's Ronald-Peter Stoferle. "Gold remains an excellent hedge against worst-case scenarios," he added. |
| Posted: 24 Aug 2011 09:11 PM PDT Gold Versus Stock Trading Action Portends Fall Stock Market Crash. Gold charts went vertical as stock markets were erratically volatile signaling trading mania. Last week's global market trading demonstrated more clearly than ever, the politicians have lost control, the global bond system is sinking further into disarray, and a severe and reckless moment this fall could decisively take out several markets. As usual if only one or two serious events appear you could dismiss them, expecting resolutions. Last week, we were inundated with rapid fire scary news. These stock market gyrations and open panic regarding Europe's credit messes forecast an increasing pathological mania of wild intensity. Huge directionless moves in the Dow last week might have been attributed to program traders. These folks run massive trading programs on autopilot. They are so fast a trade might be in and out in mere seconds. When trading in size as they are set-up to do, you can see the results. In our view, something big is going to break. Program trading is way faster than any screen watchers pushing buttons. Stops are tight and interconnected programs are complicated; running at the speed of light. Gold and silver bugs have waited years for (1) Precious metals to diverge from the US Dollar and (2) diverge from mainstream stock markets. Over the past months, we have been straining to find some clues when this big break might arrive. While it is not yet complete, I think we are getting very close. Our best forecast is 9-15/10-15, 2011. Trading Action For August And The Last Quarter Of 2011. Precious metals and other commodity traders should expect channeled, choppy trading for a few more days in August. However, on historical cycles, gold normally rises first followed by silver trading 5-10 days later. Then, at the end of August and right after Labor Day, metal shares usually begin new rallies. Vacationing brokers, investors, traders, and fund managers begin drifting back to work between August 29th and September 9th. Keep in mind the funds drive 70% of all trading and they move the markets. Larger decisions have already been made to and through Labor Day. Those remaining in the office are usually left to maintain the status quo and watch for any sudden market-moving events. Serious trading begins when the top managers are back to work. For now they're at the beach working on tans. Some Congress people are calling for an immediate return to work. This won't happen as the leadership and others are busy on the stump politicking, raising money and planning their next moves to become re-elected. The Peoples Business is shoved aside as usual so these clowns can continue feathering individual nests and plotting more political treachery. Reports this week say the President has been on Air Force One every other day for the last 175 days. Most of these travels are politics related and not about serious USA national-international business.
        This posting includes an audio/video/photo media file: Download Now |
| Gold & Silver Market Morning, August 25, 2011 Posted: 24 Aug 2011 09:00 PM PDT |
| You are subscribed to email updates from Gold World News Flash 2 To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment