"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Wednesday, February 22, 2012

Sterling Gold surging Higher

Gold priced in terms of the British Pound is surging higher being reinforced in its upward trajectory by news that the Bank of England was further expanding its bond purchase program (Read this as its version of QE). This is more evidence that nearly the entirety of the Western World Major Central Banks are completely engaged in the process of adulterating their currencies.

They BOE has now set a program target near the 325 billion pound mark or $513 billion dollars. That is not exactly chump change.

This is also the reason that bears at the Comex are increasingly having difficulty in capping the price of the metal there as it is surging higher across a variety of foreign currency terms.


  1. Some good sector rotation into PM's today, like I expected as the value investors stepped up. The cartel was nowhere to be found today. I watched the action tick for tick and the red arrows were few and far between. NO SELLERS until 1780, and even then, just weak selling. Cartel is in a long gold bull cycle as per latest COT, so where they book the profits from the recent runnup is anybody's guess. They have their moral duty to defend fiat and headline of 1800 gold, so I think they strike back starting tommorrow and try and push it back to 1765.

  2. "Bank of England was further expanding its bond purchase program (Read this as its version of QE)."
    Dan, maybe you should let MISH know.

  3. It is always difficult to know where someone has drawn the line in the sand. In US dollar terms I think 1750 was the number and before I say why I would like to say that I respect 1764 with the idea that as you get into a parabolic rise you need to have an idea where the next "price cluster" may occur; I also respect 1780 as important in the idea that "one man's ceiling is another man's floor" - the whole principle of the auction market, price discovery, psychology of markets takes place at a price level creating a "line in the sand".
    When is a market going up or going down and over what time frame? This is always a difficult question. Last Christmas the bears gave the bulls a severe correction to digest during the Yuletide. Yesterday was Ash Wednesday, meaning we entered into Lent. Perhaps a mere coincidence - we shall see - but there was a trend change from down to up which is beautifully depicted in the Point and Figure chart of the Privateer. A picture is truly worth a thousand words.
    PS As for being a "bag holder" - owner of Agnico-Eagle stock
    - you gave no mention of its price action on February 16th - post earnings. The stock opened down more than 5% and then during the course of the day closed up more than 5%. Talk about an outside day! Kinross also reported the same day, but was up all day. Another indication that a "sea change" has occurred.

  4. Dear Trader Dan,
    To be clear - it was someone on the blog who called me a bag holder - "sticks and stones ..."
    Also this morning Coeur d'Alene releases earnings. Maybe they will have something nice to say? I don't look at the HUI but I appreciate your insights. Perhaps something is already starting to show on this chart?


  5. And while you're at it Trader Dan, please give the Privateer a nudge telling him that we have started a New Year (2012).
    As we come to the open, I detect the distinct smell of something burning. What could it be now?
    Could it be at the short order desk - someone getting fried?
    Or perhaps the old "Pigs get fat - hogs get slaughtered?"
    Someone's bacon becoming past crisp.
    My final word for this post is following saying:
    He who laughs last, laughs loudest.

  6. I went back a few days to your last post on Silver.
    It looks that the "line in the sand" comes in at 35.45US
    with an interesting downtrend line if you join the April 2010
    highs to the September 2011 highs. Talk about a conjuncture point!
    And there again the same logic applies. There is a slightly different looking chart in each currency - some already above or at interesting levels. When these levels start falling like ducks on the pond... it certainly will surprise us all!
    And Jim Sinclair just posted an article from the MainStream Press on oil priced in terms of gold. Is the cat out of the bag?

  7. Correction April 2011 highs.


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