Why do they sell so many different products in gold and silver?
There seems to be an increase in products in the gold and silver bullion market. It used to be just a few primary categories but now there are all sorts of generic coins, bars, and fractional coins and bars along with this Viacambi Combi bar that Peter Schiff calls a chocolate gold bar: Peter Schiff's GOLD CHOCOLATE BAR
If there was an actual shortage of gold and silver you wouldn't see all these new product designs. Am I right or wrong?
There also seems to be some kind of QUASI or PSEUDO-NUMISMATIC creations now as what used to be known as bullion has been given a category of it's own.
I'm asking all this because I was at a coin auction recently talking to a few folks there who say the interest in bullion coins has declined but true numismatics graded by PCGS and NGC are the only ones worth their metal.
In closing I want to share an experiment I did recently at this place in West Allis, Wisconsin that buys GOLD and SILVER. I walked in and the place was loaded with jewelry and a massive barrier of bullet proof glass all around and the woman well secure behind it all. She even opened just a small vent that was shielded to talk to me:
I told her I had some silver to sell in American Silver Eagle coins that were 999 pure silver and I wanted to get an idea of what they're worth. She knew all about them and she told them they would buy them from me at $8 per ounce. They don't even want the stuff! :-)
Weather Unit, You are smarter than that. Who other than a fool would think their American Silver Eagles are worth for 8 bucks at this time? Anybody would by them for 8 dollars even Mark. Or is this Mark under another blog name.
I think there are only fools selling at this point concord. The same fools that were buying silver at 50 bucks.
Someone mentioned Eric de Groot the other day and how great his service is. Why nobody bothers to check trackrecords is beyond me. Eric on 12 June 2011 when silver was trading at 35 dollar.
"Silver’s next move has the potential to be “shock and awe”. Smart money is buying long contracts hand over fist. This type of concentrated buying has not been seen since late 2008 (see chart below). The concentrated buying of 2008 foreshadowed nearly a doubling and quadrupling in price by early 2009 and 2011. In other words, the money flow setup foreshadowed a ‘shock and awe’ run that few experts saw coming."
It made a secundary top about 6 weeks later at some 43 bucks and since that went down, down, down. The shock and awe move turned out to be the kind of volatility associated with blow off tops. Eric is not worth the few hundred bucks he charges to me. There is a reason why he started charging money after the metals crashed.
Hi Jasper, thanks for your comment about Eric. My point of view on this :
1) Eric says that concentration still needs a technical trigger; obviously. Concentration alone is not enough to start a buy or sell signal.
2) If you trade dynamically, you still have to follow your trade. And run to the exits if something goes wrong. And of course take a bit of profit here and there when first targets are met. So you say Eric mentioned a potential explosive silver at 35 $. Well, as a trader, if you bought then on a technical trigger and went up to 43 $; you had a chance to make a lot of money, as it went the right direction a hole 22%. At those level, though I don't know Eric, I would dare say that any sane trader would already have raised back his stop loss at his entry level or even above, and took a bit of his profits on his line. That's what I do. So a trader makes money on this. He doesn't passively wait with his long position to collapse back to 18 $...
3) I find his search about : - intermarket analysis - gann and 45° approach - concentration and diffusion index aspects worth mentioning. I am curious, and I like to follow different approaches. Even so, Watch what he is doing doesn't mean follow everything without questioning. It's about Learning about his method and integrating it, rather than following buy or sell recommendations. 4) A trader will never be right all the time. If his method seems interesting, am I going to judge the guy because on his track record I find he went wrong once or twice in the past, even if it were dead wrong? A trading system only gives you an edge by increasing your odds to be right. It doesn't make you an omniscient Jedi, who is right all the time. Have a nice weekend,
If you want to track reliable bid and offer prices from every reputable dealer in the U.S. you can go to this site:
www.goldprice.com
Pick any product, and you will see realtime prices, which I have been following for months, and I can tell you that these prices track the spot price tick for tick.
I believe that if there were a real shortage of physical vs. the paper market, hundreds of hedge funds would be buying regularly on dips and gradually cleaning out the inventory of all these dealers.
Much in the same way that ammo is being cleaned out daily, then restocked at Wal-Mart.
However, all of these dealer have plenty in stock, because there is no real demand. And there won't be any demand as long as stocks keep climbing to the moon and inflation remains non-existent.
Like a poster here mentioned earlier, the entire hedge fund community is locked up in their war rooms pouring over thousands upon thousands of small cap stock charts, looking for the next name that is going to get hockey-sticked into an incredible parabola.
Your point is exactly correct in my view. Those that keep talking about "shortages of physical gold" just do not seem to understand the nature of supply/demand and the role of the speculator.
Any REAL Shortage of gold would be immediately met by savvy speculators loading the boat much the same way they did back when some of these same hedge funds were renting oil tankers and stuffing crude oil into them while floating them offshore to keep the supply off the market and drive the price even higher.
Your analogy with the ammo situation is apt. I buy lots of ammo as I do lots of shooting and when there is indeed a shortage of the stuff, the price soars. I should know as I have been paying much higher prices over the course of the last year. At least the stuff is becoming more available as manufacturers ramp up production.
Too many people make this stuff way more complex than it really is - example - this entity is buying this and shipping hither thither and yon. That mike make sense if the price were rising. It isn't.
It is the same thing I said back when that BACKWARDATION crap was the latest rage - if it meant anything, the price at the Comex would be soaring.
Gold will move higher when it is ready to move higher and that will be when REAL INTEREST RATES turn negative, inflation fears arise and confidence is lost. Until then, all of this chatter about who is doing what, comex stocks in the warehouse, GOFO rates, backwardation, is useless and a complete waste of time and energy.
Folks just need to forget all that stuff and listen to what the market says. Sadly, too many have their ears stopped.
Expectations... by the time anyone figure as out the C 's have devalued the world and allowed the bankers to buy/steal engines lives it will be history. A one paragraph chapter. Energy, food, Tesla S, health insurance, truth, reality, and two of the most essential needs of humans will be extinct...freedom and GOD. GOD BLESS YOU DAN for stating the word EXPECTATIONS. The word inflation will be illegal shortly after confidence goes extinct.
OMG. You're relating hedge funds to real physical gold. As I understand, they only long contracts. They never intend to take the delivery. So if a HF sells, either it's liquidating it's long contracts, or it sells short with its own gold or collaterals.
I kindof agree on inventory tightness of coin dealers side is exaggerated because dealers don't want sell at low price. BUT, this is only in US. For the past few months, Shanghai exchange delivered monthly world production each month! Do you see a stretch in supply demand? Based on Andrew Maguire, London market activities are high too.
So, we're taking about East drain gold supply from West, and it's going on. Mark, if you just limit yourself to US, of course you won't see this. Everyone here is listening to MSM, and they still think China will never dump US treasuries just because they own too much.
Dan, you have to give credit to GOFO. Last it turned negative, it did prevent gold price from dropping further. And we actually saw a small short squeeze. I agree with you that paper game dominates now. But physical market is playing more and more important role now. At some point, the contracts have to be backed by some gold. With GOFO rates go negative, it's not easy for them to dump huge contracts on market any more.
Physical demand has nothing to do with gold price discovery. The goldbugs are starting to realize this and the angst is palpable. In a way paper gold (where the price is discovered) is lent credibility by some physical being available when needed. The game is up when physical dries up and all the market participants realize all they have is a paper claim.
This is not completely correct. The physical tightness will reduce the possibilities of dumping huge orders in the paper market. Andrew Maguire predicted that gold will not stay below 1300 for long last week, and he's right. because of the physical market tightness, someone had to buy back in a huge order.
Dan, I want to discuss with you on who the big sellers in the market are. You mentioned the intention of the huge sell orders is to buy back at lower price. I agree with you. So the result should be the price action triggers the stop orders, and the seller will buy more back to cover than he sold. Then we'll have to see who suits for this intention. The HF who are net long? If they want to liquidate, they would do it this way cause this will give them the worst price. If they buy back more at lower price, their long position should increase. I think BB suit this case, because they are accumulating.
As we know, HF and US banks are net long, and foreign banks are net short. But HF long positions are shrinking, and US bank longs are increasing. The obvious answer of the sellers to me is US BBs.
When "a huge order" for physical can't be filled the game as we know it ends. Those with paper claims (including Andrew Maguire) will be cash settled at the paper price while real physical requires much higher prices to flow.
Correct Dan We have all fallen victim to the usual suspects who make outrageous claims in outrageous headlines. This is not limited to only gold, the same goes for US equities. At this point the equity Bulls would have you believe (as you stated) that there is no end to the continuing rise and commodities will stay cheap forever. I too intend to ride the equities frenzy, who cares about P/E ratios or price to yield anymore. Far too many analysts claim they will be able to tell us when it is time to get out and that all the warning signs will be clear. Well, some are saying that now...do you believe them? Or will the correction come like a thunder clap where virtually nobody gets out in time ?
I agree with Mark on the equity Bull, I am unsure about his claim that it is now a perpetual motion money machine with no end.
I have accumulated 70 calls of varying lengths from Jun 2014 to Dec 2015 on the DIAs and SPYs.
The dollar will be the last man standing, and the US equity market will have a blowoff top before this is all through, with equities perhaps doubling in the next two or three years. it will surprise even the most bullish forecasters.
A 45k bet for a potential huge payday is little to ask.
I bought SPY 200 dec 2015, 200 Jun 2015, 200 Jan 2015, 175 Jun 2014 calls. DIA 160 170 180 Jan 2015 calls
I intend to add more way out of the money calls as I think about this strategy, especially on any pullbacks. However, I think the next move is up and 16,000 dow doesn't seem so remote anymore. We have been through the worst time of the year, and with the worst stuff thrown at it and still the equity markets continue to shine. There is no where else to go. Who wants a Treasury boond anymore? the foreigners think the US govt is a circus. The private sector will win out. and ironically, so will the dollar.
the final straw on full conviction was seeing how CMG and GOOG did. I doubled my call option count. Basically, investors, especially foreign, will dump all the dollars they have into these firms, and bypass the US Treasuries, leaving the Fed to buy up the extra.
The govts are putting big restrictions on gold. They will continue to make gold ownership more difficult.
Eph, Martin Armstrong could not have said it better himself. He seems to be the man these days. I agree but it makes no sense in an economy that is showing little growth. Oil stocks should be on the list as well.
Think about this... The banks are not safe, especially overseas. Americans are looking for ways to take their money overseas. Foreigners are desperate to get their money out and put it to work here (real estate, stocks, etc) . A big daisy chain. Govt bonds are a laugh with no yield. Equity PEs on a historic basis are really not high at all and are about average since the 1982 macro bull market began.
As long as the Fed provides the cheap money, firms can continue to lever and grow profits tremendously. It's like a supermarket chain. A 5% top line growth can double earnings. A 5% drop can mean bankruptcy. The leveraging of the firms to grow is truly amazing to watch. When it's over, that's when worldwide sadness befalls humanity. I do not see that happening for a while.
As for oil I believe you on that one. i am looking to buy real estate rentals in Farmington, NM, where the largest employer is Conoco Phillips. They are drilling there in NW NM like crazy.
As for picking equity sectors, I shy away, and stick to large macro moves. I picked the best time to enter gold. My only mistake was listening to the gloomers too much and stayed away from equities.
Anyway, i have been placing a large directional bet, and going with it. If I put it in particular sectors I would increase the volatility, perhaps tremendously, without getting a comenserate reward.
I am a big picture guy. scalping and such is fine, but it takes a tremdous toll on my health and sleeping habits.
@Eph, here are, per the st. louis fed, the last 5 reading of AAA bond yield. 2013-09: 4.64 2013-08: 4.54 2013-07: 4.34 2013-06: 4.27 2013-05: 3.89 So this could be due to the expectation of the big Taper, or not. But what if corporate bond yields continue to drift up despite continued goosing?
@Eph. I'm a chicken. 1. GOOG's double digit, $40 some billion dollar gain in market cap looks closer to the start of a blow off top than not. 2. Though I wouldn't bet on it, I think to say the that the stock market will continue to rise because the fed will continue to print is not so different than the argument than that of gold analysts saying gold would continue to rise as long as the fed prints.
It seems to me that a lot of dumb money would be entering the market now that it is totally 'safe' - e.g. post 13% moves in GOOG (which does have an admirable cash flow history) 3. Does a market have to 'blow off top' before heading down? The gold bulls didn't see a blow off top in 2011. There was no blow off top in 2007 either. 4. If bond govt. bonds yield rise, don't they then start to compete with stocks for return? 5. I was reading the paper/magazines today and two things struck me: First, there was an article about apartments, the prime/over $6million category stagnating / sinking in price (20%plus below top) AND in the New Yorker two profiles, one of the Twitter founder Jack Dorsey, another, the previous week, of a young (early 30s) angel investor in San Francisco. The real estate thing is obvious. The mainstream media / laggard media's picking up on these stories, the new face of capitalism, new organization of society, says to me that we are getting toppy. 6. A friend of mine just folded his hedge fund because volatility is nil in the market. It seems to me that when all the people trading volatility are forced out of the market, the market is going to be very susceptible to volatile moves (not un-fragile to use Taleb's terminology).
I know Marty Armstrong warns us to not be to beholden to fundamental analysis, but I'm just saying it's an arrow in the quiver.
this is why I'm doing options. I can lose this money and still survive. Yet the upside could be tremendous.
I don't really hold to anything Armstrong says. The conclusions I make are based on what I see.
1) gold is dead as the govts around the world want it dead, and they will do whatever it takes to make sure that happens. Why? Because it is an asset shield. They want to make gold holders miserable.
2) When it comes to trading I am not looking for a blowoff top to time the high. I worked for Nasdaq (my last job) and was there at the marketsite when Nasdaq comp broke 5000 for the first time. The broad market is behaving just like Nasdaq in 1998. There seems to be a lot of pressure to lift this market. I suspect foreign money is chasing this as they worry about what to do with dollars (the world's reserves are at least 60% USD and need dollar denominated assets). They do not want USTs anymore. So, yield rises are a reflection of this. If yields rise too much they will then compete, but that is a couple years away (my guess), plus the Fed will monetize as much as they can, and the fed deficit has been narrowing.
There's little volatility, because there is so much money on the sidelines waiting to enter the equities. The Feds can rig the market for several months, maybe a year, but to have it go on this long. something else is at play. I think it's foreign money. The US is the strongest nation here. People don't trust the Chinese markets and economy, their currency will never be the reserve currency.
I suspect the large hedge funds and people like Blackstone are using foreign money to buy real estate. Foreigners own most the dollars as most of them are overseas. where can they use them? The whole irony is that after seeing what just happened in DC they are speeding up their dollar deployment.
I see GOOG and CMG differently. Everyone is bearish. I have to listen to CNBC and Bloomberg and nobody talks about S&P 2000. Yet the moves in some of these stocks is telling me that something else is going on. Plus, the market is not expensive, historically speaking. We can question the quality of earnings, but PEs are in line and much below market peaks.
The dumb money is not in the market. The dumb money got into Nasdaq in 1999. Most people I talk to are not invested in the stock market anymore, other than retirement plan allocations.
I don't doubt your strategy. The question like in gold is when to get out. I missed it and it was obvious, in general equities the lying establishment will do much more to keep us in before the bottom falls out
I wonder if oil will be the next commodity to get hit? In 2007 it was about $50 per barrel then bounced up to $145 and then promptly down to $40 in 2009 and now bouncing between $100 and $110. I think if the US$ starts declining (as the world gets more concerned with everything US) can oil remain at these levels. A higher oil price would enable some big profits but at the expense of the US economy.....a lower energy cost would benefit manufacturing and also the little guy is always concerned with prices at the pump. There is a glut of oil in the US and most is close to southern gulf states refineries. The oil there has large net backs whereas Canadian oil needs transport to refineries and heavily discounted. So the US has command of the north american oil market. I could easily see it going back to $75 or so. I'm wary of that sector for these reasons but JMHO.
Good points but oil did very well when the dollar was strong in the last few months. I think there will be a lot of m&a in permian and baaken oil companies. At least I hope so.
Buy PALLADIUM: It's going to $8,000 and will double the price of gold says one analyst: CLICK HERE
Why is it you never hear all this talk about PORK BELLIES, COTTON, COFFEE, COCOA, CORN, or LUMBER? Someone needs to start telling people to stack 2X4's or even COPPER GROUND RODS. :-)
I own palladium weather unit, I know little about the other commodities what is the best way to invest in them. Steve from Sparks seems to know a great deal about commodities. One thing that got my attention when I clicked was motif investing which I just heard about Friday. Could be a very good way to invest with your other commodities and the tech and social media world. Do you know much about it? Thanks
Stay diversified and take profits on any sign of uncertainty. Only one problem: There is a certain amount of uncertainty lately but the uncertainty has risen to levels never before seen in the history of the markets. So it is certain that you need to stay safe but it is very uncertain what safe is anymore.
@Eph, I would agree with many things you wrote, and your real experience is sure deeper than mine about Nsdq, etc..., but :
"gold is dead as the govts around the world want it dead"
Does it include Russia? China? Some other Asean CBs?
"People don't trust the Chinese markets and economy, their currency will never be the reserve currency."
No it won't. But the plan is simply to stop USD to be the one single reserve currency as of today. Can they achieve this goal? With (using Sinclair's expression) putting a necklace of gold around their currency (5000 tons as suggests Rickards? I don't know how much of their reserves would be needed in tons, but let's say they target 20% in gold). Plus with developing currency swap agreements as they are doing with London and Frankfort and Canadian hubs? The strategy of many CBs can simply be diversification from the dollar, to the profit of Renmibi, Gold, Euro...not the annihilation of the dollar nor the replacement of the dollar with a single other reserve currency (neither Yuan nor Euro could assume such a role anyhow). And if so, there are still some forces here bullish for gold and against a view of "all governments united for gold's death". What do you think? Thanks,
When slightly more than 60% of all currency in circulation is the US dollar, where does one go? How does a trillion dollar portfolio diversify away from dollars? They cannot without destroying the dollar. The Feds know this. Remember the Baker plan of the 80-90's to dollarize the western hemisphere/african debt? All done to keep people in dollars. Foreigners are now scared about what is going on in the US. They need dollar-denominated assets.
However, the macroeconomic numbers here in the US are awful. But this does not matter anymore, as foreigners are accelerating their dollar deployment. They do not want treasuries. Nobody wants Renminbi, except for transactions. Their credit market is a joke, and will not be sophisticated enough for at least another 10-15 years. That's the garbage of Jim Rogers, etc. If the foreigners don't trust the US, they cerrtainly do not trust the Chinese.
The Shanghai Coop Org. has tried to make a gold backed currency for the past 13-14 years. They understand that under current circumstances they cannot do it. They were essentially the BRIC nations, with some mid east economies. They know they are stuck, and to get rid of their dollars would be like slicing their own throat. That's why real estate is doing so well in the face of poor demographics and macroeconomic data.
Put it this way, we are playing musical chairs. There are five chairs and ten people. When the music stops where does one go?
Eph 6:7 said:" The govts are putting big restrictions on gold. They will continue to make gold ownership more difficult." Would you please explain this.
I think oil is now vulnerable as gold has been. They will try to see how low they can drive it and the shares will collapse. The oil market is however a much harder market to control due to geopolitical issues that don't cooperate.
Anonymous ownership of assets will be most likely be restricted after the global financial dictatorship comes into fruition toward the end of the decade. Laws and regs are already being implimented on a global scale. France is restricting gold purchases with cash. Look for this to spread around the Euro zone. India is placing surcharges, import restrictions, and tariffs on gold imports. Vietnam is restricting the importing as well. As govts around the world get more desperate to raise money, they are attempting to make an inventory of everyones assets. My guess is that there is going to be some sort of "bail-in" taxes being placed on each of us. Think of the one asset that can escape this... that is gold. Using deductive reasoning and seeing the trend taking shape, it's not that difficult to determine that there will be problems down the road with anonymous gold ownership.
The US is purposely leaving gold alone... for now. I see down the road that the globalist-controlled media will begin to talk about terrorists using gold to finance terror, etc. (the whole terrorist thing is a joke anyway, having personally dealt with the phony 9/11 thing).
Now I am not saying they are going to confiscate it. To do that is the proverbial litmus test that will scare the unwashed masses. But the govts will nibble and nibble until they make ownership very onerous.
I own gold and will never sell it. However, the price volatility, while maybe not carried out by the globalists, definitely works to their advantage. Cui bono?
People own gold as a means to keep assets outside the system. I do, it's better than the bank. How long can govts let this continue?
If I were a govt desperate for revenue, i would trash gold behind the scenes, while damning it with faint praise in the media. How many times do we here the same trite responses on CNBC. "Gold is not performing the way it should." Well, the markets are controlled, so the objective is to furiously work gold behind the scenes, and then let the globalist media do the psy-ops.
It works well, which is why I stay fully hedged for now. I worry that after the holiday season, gold will swoon again and take out the old lows (dec-feb). I have a feeling I may be at the gym on a snowy day looking at the TV while the brain-dead teleprompter readers will be talking about the big drop in gold.
Confiscation really isn't necessary in the west as most sheep own gold paper as ETFs. These were conjured as a price managment mechanism, a simple way for govts to keep tabs on peoples gold ownership, and when the time was right an easy way for confiscation.
BTW i was talking to a gold dealer in ABQ, and he was complaining that he may lose his bank account as his bank may not work with gold dealers and pawn shops anymore. Why? The bank said money laundering. The premise with gold is that why do you need to own it if you have nothing to hide?
you put a couple of very interesting ideas out there. Whats your take on the other precious metals? As they are mainly used industrially, it should be way harder to confiscade, demonize etc... them. And they should also work as a store of value over a longer period. I reckon they might although tax the shit of of them though. Cheers
Eph, as usual, thanks for the interesting and detailed answer. I only regret Sinclair is not here to get into this discussion as well :)
Just two things : 1) "But the govts will nibble and nibble until they make ownership very onerous. I own gold and will never sell it." Why? If the painting seems so dark and hopeless, what is the essential reason that makes you keep it?
2) Do you think all this negative global times for gold will eventually end? I.e one day will come after bail-ins, after price manipulation, after we eventually decreased the huge western debt (if we manage? through bail ins, inflation, etc...), when people won't be punished anymore for owning gold?
The bad times for gold (in terms of price action) will definitely end. Gold could take out its old highs in a 2-3 years.
I am just saying that all this "spying" on people is to help the govt find out who owns what. It is all about money. The patriot acts were all about money.
Savvy people will always own gold. If I were a money launderer I would use gold. I still think gold is the way to go, and would not put any gold proceeds in the bank to store wealth. The govts reactions and such are just a realization of this. However, the govts tread lightly, because the globalists like gold, too.
these are dark times for humanity, and understand it will get much darker over the next 10 or so years. The fact that the average person is clueless about gold and the markets is testament to this. But that doesn't mean we can't make a lot of money. I see people unprincipled and amoral, etc. The worst part is that they think all is OK with them. There will be no great reawakening. Perhaps when they see the bombs dropping and taking out DC in the next global conflict a decade from now, they may rethink their life, but even then I doubt it.
I think owning industrial metals is great, if that's your thing. I own metals as monetary equivilents. Gold has been used for 6000 years. The NWO wants to break that. So, this is the dynamic I discuss. The worst thing that happens is that you march down to the factory and sell palladium. Keep in mind that platinum can be used in place of Pd. Can Pd's price rise above Pt?
the longer gold stays above 1300, the greater the chance to breach 1330 and test 1350 in my opinion...but then again, macro data like jobs/unemployment will decide which way it goes
Well, >30 minutes, gold acts better than plat & silver, a bearish omen ; now how are the spinmeisters going to explain to us the job numbers and better yet, what kind of a circus will we have in an hour out of the Richmond hocus pocus numbers?
Steve, all the guys long gold and the stocks in 2011 are shorting now. Ill took and will continue to take the other side to that trade. Marks last post friday 19 I dont think well see him reporting on glamstocks today too.
Thanks Eph, This may sound strange coming from one who advocates physical gold ownership but India has a gold problem. The incredible demand for gold imports was causing trade deficit issues for the RBI and IMHO the central bank did the right thing. It is hard for a westerner to comprehend the gold obsession in India.
As far as France is concerned it seems recent legislation regarding capital flight restrictions is not limited to gold. I have not looked too hard at Vietnam but a cursory glance tells me the restrictions there are mainly to reign in speculation on paper gold. As we all know governments enact stupid legislation sometimes but I don't see widespread attacks on physical gold ownership (especially in the west where paper rules).
I am always objective with my views. Whether all the restrictions and rules regarding gold makes sense doesn't matter. What matters is that they are happening now.
BTW the equities are on a tear, and my options are now firmly in the green. There will be nothing that can stop this freight train for at least 12-24 mos. The pressure to lift these markets is without precedent. it will make nasdaq 5000 momentum players blush.
Final thought ...IMHO ... No govt want to really destroy gold. Cause if they destroy it value they will have trouble in restore the fiat currency fate once people completely do not have fate in currency.
Gold are the direct reflection of our economy.Although there is a constant increase in prices of gold, yet it attracts a lot of investors. Gold becomes a savior at the time of recession in market. Nice post! Gold bullion Australia
I have a question about GOLD and SILVER bullion:
ReplyDeleteWhy do they sell so many different products in gold and silver?
There seems to be an increase in products in the gold and silver bullion market. It used to be just a few primary categories but now there are all sorts of generic coins, bars, and fractional coins and bars along with this Viacambi Combi bar that Peter Schiff calls a chocolate gold bar:
Peter Schiff's GOLD CHOCOLATE BAR
If there was an actual shortage of gold and silver you wouldn't see all these new product designs. Am I right or wrong?
There also seems to be some kind of QUASI or PSEUDO-NUMISMATIC creations now as what used to be known as bullion has been given a category of it's own.
I'm asking all this because I was at a coin auction recently talking to a few folks there who say the interest in bullion coins has declined but true numismatics graded by PCGS and NGC are the only ones worth their metal.
In closing I want to share an experiment I did recently at this place in West Allis, Wisconsin that buys GOLD and SILVER. I walked in and the place was loaded with jewelry and a massive barrier of bullet proof glass all around and the woman well secure behind it all. She even opened just a small vent that was shielded to talk to me:
I told her I had some silver to sell in American Silver Eagle coins that were 999 pure silver and I wanted to get an idea of what they're worth. She knew all about them and she told them they would buy them from me at $8 per ounce. They don't even want the stuff! :-)
Weather Unit,
DeleteYou are smarter than that. Who other than a fool would think their American Silver Eagles are worth for 8 bucks at this time? Anybody would by them for 8 dollars even Mark. Or is this Mark under another blog name.
https://online.kitco.com/refining/refining_USD.html
DeleteDont sell em for 8 dollar, kitco will pay 16 dollar.
She gave you the rip off price, not the real price.
I think there are only fools selling at this point concord. The same fools that were buying silver at 50 bucks.
DeleteSomeone mentioned Eric de Groot the other day and how great his service is. Why nobody bothers to check trackrecords is beyond me. Eric on 12 June 2011 when silver was trading at 35 dollar.
http://edegrootinsights.blogspot.nl/2011/06/silver-preparing-for-another-shock-and.html
"Silver’s next move has the potential to be “shock and awe”. Smart money is buying long contracts hand over fist. This type of concentrated buying has not been seen since late 2008 (see chart below). The concentrated buying of 2008 foreshadowed nearly a doubling and quadrupling in price by early 2009 and 2011. In other words, the money flow setup foreshadowed a ‘shock and awe’ run that few experts saw coming."
It made a secundary top about 6 weeks later at some 43 bucks and since that went down, down, down. The shock and awe move turned out to be the kind of volatility associated with blow off tops. Eric is not worth the few hundred bucks he charges to me. There is a reason why he started charging money after the metals crashed.
I write this because Eric now like small cap stocks and large cap stocks over the precious metals, based on some unreadable 145 year chart.
Deletehttp://edegrootinsights.blogspot.nl/2013/10/the-message-of-market-changed-in-2013.html
Me thinks not. Ill report back in a couple year on that one.
Concord: I know I'm smarter than that. (at least a little bit)
DeleteI was just astonished that she only offered $8.00 per ounce. I thought it was very strange indeed.
Hi Jasper, thanks for your comment about Eric.
DeleteMy point of view on this :
1) Eric says that concentration still needs a technical trigger; obviously. Concentration alone is not enough to start a buy or sell signal.
2) If you trade dynamically, you still have to follow your trade. And run to the exits if something goes wrong. And of course take a bit of profit here and there when first targets are met. So you say Eric mentioned a potential explosive silver at 35 $. Well, as a trader, if you bought then on a technical trigger and went up to 43 $; you had a chance to make a lot of money, as it went the right direction a hole 22%. At those level, though I don't know Eric, I would dare say that any sane trader would already have raised back his stop loss at his entry level or even above, and took a bit of his profits on his line. That's what I do. So a trader makes money on this. He doesn't passively wait with his long position to collapse back to 18 $...
3) I find his search about :
- intermarket analysis
- gann and 45° approach
- concentration and diffusion index aspects
worth mentioning.
I am curious, and I like to follow different approaches. Even so, Watch what he is doing doesn't mean follow everything without questioning. It's about Learning about his method and integrating it, rather than following buy or sell recommendations.
4) A trader will never be right all the time. If his method seems interesting, am I going to judge the guy because on his track record I find he went wrong once or twice in the past, even if it were dead wrong? A trading system only gives you an edge by increasing your odds to be right. It doesn't make you an omniscient Jedi, who is right all the time.
Have a nice weekend,
If you want to track reliable bid and offer prices from every reputable dealer in the U.S. you can go to this site:
ReplyDeletewww.goldprice.com
Pick any product, and you will see realtime prices, which I have been following for months, and I can tell you that these prices track the spot price tick for tick.
I believe that if there were a real shortage of physical vs. the paper market, hundreds of hedge funds would be buying regularly on dips and gradually cleaning out the inventory of all these dealers.
Much in the same way that ammo is being cleaned out daily, then restocked at Wal-Mart.
However, all of these dealer have plenty in stock, because there is no real demand. And there won't be any demand as long as stocks keep climbing to the moon and inflation remains non-existent.
Like a poster here mentioned earlier, the entire hedge fund community is locked up in their war rooms pouring over thousands upon thousands of small cap stock charts, looking for the next name that is going to get hockey-sticked into an incredible parabola.
Heh, who the heck needs physical gold?
LOL.....
Mark;
DeleteYour point is exactly correct in my view. Those that keep talking about "shortages of physical gold" just do not seem to understand the nature of supply/demand and the role of the speculator.
Any REAL Shortage of gold would be immediately met by savvy speculators loading the boat much the same way they did back when some of these same hedge funds were renting oil tankers and stuffing crude oil into them while floating them offshore to keep the supply off the market and drive the price even higher.
Your analogy with the ammo situation is apt. I buy lots of ammo as I do lots of shooting and when there is indeed a shortage of the stuff, the price soars. I should know as I have been paying much higher prices over the course of the last year. At least the stuff is becoming more available as manufacturers ramp up production.
Too many people make this stuff way more complex than it really is - example - this entity is buying this and shipping hither thither and yon. That mike make sense if the price were rising. It isn't.
It is the same thing I said back when that BACKWARDATION crap was the latest rage - if it meant anything, the price at the Comex would be soaring.
Gold will move higher when it is ready to move higher and that will be when REAL INTEREST RATES turn negative, inflation fears arise and confidence is lost. Until then, all of this chatter about who is doing what, comex stocks in the warehouse, GOFO rates, backwardation, is useless and a complete waste of time and energy.
Folks just need to forget all that stuff and listen to what the market says. Sadly, too many have their ears stopped.
Expectations... by the time anyone figure as out the C 's have devalued the world and allowed the bankers to buy/steal engines lives it will be history. A one paragraph chapter. Energy, food, Tesla S, health insurance, truth, reality, and two of the most essential needs of humans will be extinct...freedom and GOD. GOD BLESS YOU DAN for stating the word EXPECTATIONS. The word inflation will be illegal shortly after confidence goes extinct.
DeleteOMG. You're relating hedge funds to real physical gold. As I understand, they only long contracts. They never intend to take the delivery. So if a HF sells, either it's liquidating it's long contracts, or it sells short with its own gold or collaterals.
DeleteI kindof agree on inventory tightness of coin dealers side is exaggerated because dealers don't want sell at low price. BUT, this is only in US. For the past few months, Shanghai exchange delivered monthly world production each month! Do you see a stretch in supply demand? Based on Andrew Maguire, London market activities are high too.
So, we're taking about East drain gold supply from West, and it's going on. Mark, if you just limit yourself to US, of course you won't see this. Everyone here is listening to MSM, and they still think China will never dump US treasuries just because they own too much.
Dan, you have to give credit to GOFO. Last it turned negative, it did prevent gold price from dropping further. And we actually saw a small short squeeze. I agree with you that paper game dominates now. But physical market is playing more and more important role now. At some point, the contracts have to be backed by some gold. With GOFO rates go negative, it's not easy for them to dump huge contracts on market any more.
Physical demand has nothing to do with gold price discovery. The goldbugs are starting to realize this and the angst is palpable. In a way paper gold (where the price is discovered) is lent credibility by some physical being available when needed. The game is up when physical dries up and all the market participants realize all they have is a paper claim.
ReplyDeleteThis is not completely correct. The physical tightness will reduce the possibilities of dumping huge orders in the paper market.
DeleteAndrew Maguire predicted that gold will not stay below 1300 for long last week, and he's right. because of the physical market tightness, someone had to buy back in a huge order.
Dan, I want to discuss with you on who the big sellers in the market are.
ReplyDeleteYou mentioned the intention of the huge sell orders is to buy back at lower price. I agree with you. So the result should be the price action triggers the stop orders, and the seller will buy more back to cover than he sold. Then we'll have to see who suits for this intention.
The HF who are net long? If they want to liquidate, they would do it this way cause this will give them the worst price. If they buy back more at lower price, their long position should increase. I think BB suit this case, because they are accumulating.
As we know, HF and US banks are net long, and foreign banks are net short. But HF long positions are shrinking, and US bank longs are increasing. The obvious answer of the sellers to me is US BBs.
When "a huge order" for physical can't be filled the game as we know it ends. Those with paper claims (including Andrew Maguire) will be cash settled at the paper price while real physical requires much higher prices to flow.
DeleteHe's talking about London market. It seems to have a lot of activities of real gold. unlike COMEX which heavily depends on cash settlement.
DeleteBy the way, the new "alternate currency" of choice by the Chinese is Bitcoin, not gold.
ReplyDeleteFresh, new, world record highs as we speak.
http://bitcoin.clarkmoody.com/widget/chart/
Correct Dan
ReplyDeleteWe have all fallen victim to the usual suspects who make outrageous claims in outrageous headlines.
This is not limited to only gold, the same goes for US equities.
At this point the equity Bulls would have you believe (as you stated) that there is no end to the continuing rise and commodities will stay cheap forever.
I too intend to ride the equities frenzy, who cares about P/E ratios or price to yield anymore.
Far too many analysts claim they will be able to tell us when it is time to get out and that all the warning signs will be clear.
Well, some are saying that now...do you believe them? Or will the correction come like a thunder clap where virtually nobody gets out in time ?
I agree with Mark on the equity Bull, I am unsure about his claim that it is now a perpetual motion money machine with no end.
I have accumulated 70 calls of varying lengths from Jun 2014 to Dec 2015 on the DIAs and SPYs.
ReplyDeleteThe dollar will be the last man standing, and the US equity market will have a blowoff top before this is all through, with equities perhaps doubling in the next two or three years. it will surprise even the most bullish forecasters.
A 45k bet for a potential huge payday is little to ask.
I bought SPY 200 dec 2015, 200 Jun 2015, 200 Jan 2015, 175 Jun 2014 calls. DIA 160 170 180 Jan 2015 calls
I intend to add more way out of the money calls as I think about this strategy, especially on any pullbacks. However, I think the next move is up and 16,000 dow doesn't seem so remote anymore. We have been through the worst time of the year, and with the worst stuff thrown at it and still the equity markets continue to shine. There is no where else to go. Who wants a Treasury boond anymore? the foreigners think the US govt is a circus. The private sector will win out. and ironically, so will the dollar.
the final straw on full conviction was seeing how CMG and GOOG did. I doubled my call option count. Basically, investors, especially foreign, will dump all the dollars they have into these firms, and bypass the US Treasuries, leaving the Fed to buy up the extra.
DeleteThe govts are putting big restrictions on gold. They will continue to make gold ownership more difficult.
Eph,
DeleteMartin Armstrong could not have said it better himself. He seems to be the man these days. I agree but it makes no sense in an economy that is showing little growth. Oil stocks should be on the list as well.
Think about this... The banks are not safe, especially overseas. Americans are looking for ways to take their money overseas. Foreigners are desperate to get their money out and put it to work here (real estate, stocks, etc) . A big daisy chain. Govt bonds are a laugh with no yield. Equity PEs on a historic basis are really not high at all and are about average since the 1982 macro bull market began.
DeleteAs long as the Fed provides the cheap money, firms can continue to lever and grow profits tremendously. It's like a supermarket chain. A 5% top line growth can double earnings. A 5% drop can mean bankruptcy. The leveraging of the firms to grow is truly amazing to watch. When it's over, that's when worldwide sadness befalls humanity. I do not see that happening for a while.
As for oil I believe you on that one. i am looking to buy real estate rentals in Farmington, NM, where the largest employer is Conoco Phillips. They are drilling there in NW NM like crazy.
As for picking equity sectors, I shy away, and stick to large macro moves. I picked the best time to enter gold. My only mistake was listening to the gloomers too much and stayed away from equities.
Anyway, i have been placing a large directional bet, and going with it. If I put it in particular sectors I would increase the volatility, perhaps tremendously, without getting a comenserate reward.
I am a big picture guy. scalping and such is fine, but it takes a tremdous toll on my health and sleeping habits.
@Eph, here are, per the st. louis fed, the last 5 reading of AAA bond yield.
Delete2013-09: 4.64
2013-08: 4.54
2013-07: 4.34
2013-06: 4.27
2013-05: 3.89
So this could be due to the expectation of the big Taper, or not. But what if corporate bond yields continue to drift up despite continued goosing?
@Eph. I'm a chicken.
Delete1. GOOG's double digit, $40 some billion dollar gain in market cap looks closer to the start of a blow off top than not.
2. Though I wouldn't bet on it, I think to say the that the stock market will continue to rise because the fed will continue to print is not so different than the argument than that of gold analysts saying gold would continue to rise as long as the fed prints.
It seems to me that a lot of dumb money would be entering the market now that it is totally 'safe' - e.g. post 13% moves in GOOG (which does have an admirable cash flow history)
3. Does a market have to 'blow off top' before heading down? The gold bulls didn't see a blow off top in 2011. There was no blow off top in 2007 either.
4. If bond govt. bonds yield rise, don't they then start to compete with stocks for return?
5. I was reading the paper/magazines today and two things struck me: First, there was an article about apartments, the prime/over $6million category stagnating / sinking in price (20%plus below top) AND in the New Yorker two profiles, one of the Twitter founder Jack Dorsey, another, the previous week, of a young (early 30s) angel investor in San Francisco. The real estate thing is obvious. The mainstream media / laggard media's picking up on these stories, the new face of capitalism, new organization of society, says to me that we are getting toppy.
6. A friend of mine just folded his hedge fund because volatility is nil in the market. It seems to me that when all the people trading volatility are forced out of the market, the market is going to be very susceptible to volatile moves (not un-fragile to use Taleb's terminology).
I know Marty Armstrong warns us to not be to beholden to fundamental analysis, but I'm just saying it's an arrow in the quiver.
this is why I'm doing options. I can lose this money and still survive. Yet the upside could be tremendous.
DeleteI don't really hold to anything Armstrong says. The conclusions I make are based on what I see.
1) gold is dead as the govts around the world want it dead, and they will do whatever it takes to make sure that happens. Why? Because it is an asset shield. They want to make gold holders miserable.
2) When it comes to trading I am not looking for a blowoff top to time the high. I worked for Nasdaq (my last job) and was there at the marketsite when Nasdaq comp broke 5000 for the first time. The broad market is behaving just like Nasdaq in 1998. There seems to be a lot of pressure to lift this market. I suspect foreign money is chasing this as they worry about what to do with dollars (the world's reserves are at least 60% USD and need dollar denominated assets). They do not want USTs anymore. So, yield rises are a reflection of this. If yields rise too much they will then compete, but that is a couple years away (my guess), plus the Fed will monetize as much as they can, and the fed deficit has been narrowing.
There's little volatility, because there is so much money on the sidelines waiting to enter the equities. The Feds can rig the market for several months, maybe a year, but to have it go on this long. something else is at play. I think it's foreign money. The US is the strongest nation here. People don't trust the Chinese markets and economy, their currency will never be the reserve currency.
I suspect the large hedge funds and people like Blackstone are using foreign money to buy real estate. Foreigners own most the dollars as most of them are overseas. where can they use them? The whole irony is that after seeing what just happened in DC they are speeding up their dollar deployment.
I see GOOG and CMG differently. Everyone is bearish. I have to listen to CNBC and Bloomberg and nobody talks about S&P 2000. Yet the moves in some of these stocks is telling me that something else is going on. Plus, the market is not expensive, historically speaking. We can question the quality of earnings, but PEs are in line and much below market peaks.
The dumb money is not in the market. The dumb money got into Nasdaq in 1999. Most people I talk to are not invested in the stock market anymore, other than retirement plan allocations.
if anything the dumb money is short
DeleteI don't doubt your strategy. The question like in gold is when to get out. I missed it and it was obvious, in general equities the lying establishment will do much more to keep us in before the bottom falls out
ReplyDeleteI wonder if oil will be the next commodity to get hit? In 2007 it was about $50 per barrel then bounced up to $145 and then promptly down to $40 in 2009 and now bouncing between $100 and $110. I think if the US$ starts declining (as the world gets more concerned with everything US) can oil remain at these levels. A higher oil price would enable some big profits but at the expense of the US economy.....a lower energy cost would benefit manufacturing and also the little guy is always concerned with prices at the pump. There is a glut of oil in the US and most is close to southern gulf states refineries. The oil there has large net backs whereas Canadian oil needs transport to refineries and heavily discounted. So the US has command of the north american oil market. I could easily see it going back to $75 or so. I'm wary of that sector for these reasons but JMHO.
ReplyDeleteGood points but oil did very well when the dollar was strong in the last few months. I think there will be a lot of m&a in permian and baaken oil companies. At least I hope so.
ReplyDeleteBuy PALLADIUM: It's going to $8,000 and will double the price of gold says one analyst:
ReplyDeleteCLICK HERE
Why is it you never hear all this talk about PORK BELLIES, COTTON, COFFEE, COCOA, CORN, or LUMBER? Someone needs to start telling people to stack 2X4's or even COPPER GROUND RODS. :-)
bellies don't trade anymore, chief
DeleteI own palladium weather unit, I know little about the other commodities what is the best way to invest in them. Steve from Sparks seems to know a great deal about commodities. One thing that got my attention when I clicked was motif investing which I just heard about Friday. Could be a very good way to invest with your other commodities and the tech and social media world. Do you know much about it? Thanks
ReplyDeleteStay diversified and take profits on any sign of uncertainty. Only one problem: There is a certain amount of uncertainty lately but the uncertainty has risen to levels never before seen in the history of the markets. So it is certain that you need to stay safe but it is very uncertain what safe is anymore.
Delete@Eph, I would agree with many things you wrote, and your real experience is sure deeper than mine about Nsdq, etc..., but :
ReplyDelete"gold is dead as the govts around the world want it dead"
Does it include Russia? China? Some other Asean CBs?
"People don't trust the Chinese markets and economy, their currency will never be the reserve currency."
No it won't. But the plan is simply to stop USD to be the one single reserve currency as of today. Can they achieve this goal? With (using Sinclair's expression) putting a necklace of gold around their currency (5000 tons as suggests Rickards? I don't know how much of their reserves would be needed in tons, but let's say they target 20% in gold). Plus with developing currency swap agreements as they are doing with London and Frankfort and Canadian hubs?
The strategy of many CBs can simply be diversification from the dollar, to the profit of Renmibi, Gold, Euro...not the annihilation of the dollar nor the replacement of the dollar with a single other reserve currency (neither Yuan nor Euro could assume such a role anyhow).
And if so, there are still some forces here bullish for gold and against a view of "all governments united for gold's death".
What do you think?
Thanks,
When slightly more than 60% of all currency in circulation is the US dollar, where does one go? How does a trillion dollar portfolio diversify away from dollars? They cannot without destroying the dollar. The Feds know this. Remember the Baker plan of the 80-90's to dollarize the western hemisphere/african debt? All done to keep people in dollars. Foreigners are now scared about what is going on in the US. They need dollar-denominated assets.
DeleteHowever, the macroeconomic numbers here in the US are awful. But this does not matter anymore, as foreigners are accelerating their dollar deployment. They do not want treasuries. Nobody wants Renminbi, except for transactions. Their credit market is a joke, and will not be sophisticated enough for at least another 10-15 years. That's the garbage of Jim Rogers, etc. If the foreigners don't trust the US, they cerrtainly do not trust the Chinese.
The Shanghai Coop Org. has tried to make a gold backed currency for the past 13-14 years. They understand that under current circumstances they cannot do it. They were essentially the BRIC nations, with some mid east economies. They know they are stuck, and to get rid of their dollars would be like slicing their own throat. That's why real estate is doing so well in the face of poor demographics and macroeconomic data.
Put it this way, we are playing musical chairs. There are five chairs and ten people. When the music stops where does one go?
I mean the Brady Plan.... The Baker Plan didn't work out as well, and was replaced by the Brady Plan.
Deletemonumental mess with no clear-cut exit plan; eerily quiet
DeleteThis is the tightest I've ever seen gold trade, but what does it all mean?!
ReplyDeleteEph 6:7 said:" The govts are putting big restrictions on gold. They will continue to make gold ownership more difficult." Would you please explain this.
ReplyDeletewonder if we will trade the dummied up employment numbers tomorrow, or the energy break that started today?
ReplyDeleteI think oil is now vulnerable as gold has been. They will try to see how low they can drive it and the shares will collapse. The oil market is however a much harder market to control due to geopolitical issues that don't cooperate.
DeleteAnonymous ownership of assets will be most likely be restricted after the global financial dictatorship comes into fruition toward the end of the decade. Laws and regs are already being implimented on a global scale. France is restricting gold purchases with cash. Look for this to spread around the Euro zone. India is placing surcharges, import restrictions, and tariffs on gold imports. Vietnam is restricting the importing as well. As govts around the world get more desperate to raise money, they are attempting to make an inventory of everyones assets. My guess is that there is going to be some sort of "bail-in" taxes being placed on each of us. Think of the one asset that can escape this... that is gold. Using deductive reasoning and seeing the trend taking shape, it's not that difficult to determine that there will be problems down the road with anonymous gold ownership.
ReplyDeleteThe US is purposely leaving gold alone... for now. I see down the road that the globalist-controlled media will begin to talk about terrorists using gold to finance terror, etc. (the whole terrorist thing is a joke anyway, having personally dealt with the phony 9/11 thing).
Now I am not saying they are going to confiscate it. To do that is the proverbial litmus test that will scare the unwashed masses. But the govts will nibble and nibble until they make ownership very onerous.
I own gold and will never sell it. However, the price volatility, while maybe not carried out by the globalists, definitely works to their advantage. Cui bono?
People own gold as a means to keep assets outside the system. I do, it's better than the bank. How long can govts let this continue?
If I were a govt desperate for revenue, i would trash gold behind the scenes, while damning it with faint praise in the media. How many times do we here the same trite responses on CNBC. "Gold is not performing the way it should." Well, the markets are controlled, so the objective is to furiously work gold behind the scenes, and then let the globalist media do the psy-ops.
It works well, which is why I stay fully hedged for now. I worry that after the holiday season, gold will swoon again and take out the old lows (dec-feb). I have a feeling I may be at the gym on a snowy day looking at the TV while the brain-dead teleprompter readers will be talking about the big drop in gold.
Confiscation really isn't necessary in the west as most sheep own gold paper as ETFs. These were conjured as a price managment mechanism, a simple way for govts to keep tabs on peoples gold ownership, and when the time was right an easy way for confiscation.
BTW i was talking to a gold dealer in ABQ, and he was complaining that he may lose his bank account as his bank may not work with gold dealers and pawn shops anymore. Why? The bank said money laundering. The premise with gold is that why do you need to own it if you have nothing to hide?
ReplyDeleteNibble and nibble
Hey Eph 6:7,
Deleteyou put a couple of very interesting ideas out there. Whats your take on the other precious metals? As they are mainly used industrially, it should be way harder to confiscade, demonize etc... them. And they should also work as a store of value over a longer period. I reckon they might although tax the shit of of them though. Cheers
Shippi
This comment has been removed by the author.
ReplyDeleteEph, as usual, thanks for the interesting and detailed answer.
ReplyDeleteI only regret Sinclair is not here to get into this discussion as well :)
Just two things :
1) "But the govts will nibble and nibble until they make ownership very onerous. I own gold and will never sell it."
Why? If the painting seems so dark and hopeless, what is the essential reason that makes you keep it?
2) Do you think all this negative global times for gold will eventually end? I.e one day will come after bail-ins, after price manipulation, after we eventually decreased the huge western debt (if we manage? through bail ins, inflation, etc...), when people won't be punished anymore for owning gold?
Thanks,
The bad times for gold (in terms of price action) will definitely end. Gold could take out its old highs in a 2-3 years.
DeleteI am just saying that all this "spying" on people is to help the govt find out who owns what. It is all about money. The patriot acts were all about money.
Savvy people will always own gold. If I were a money launderer I would use gold. I still think gold is the way to go, and would not put any gold proceeds in the bank to store wealth. The govts reactions and such are just a realization of this. However, the govts tread lightly, because the globalists like gold, too.
these are dark times for humanity, and understand it will get much darker over the next 10 or so years. The fact that the average person is clueless about gold and the markets is testament to this. But that doesn't mean we can't make a lot of money. I see people unprincipled and amoral, etc. The worst part is that they think all is OK with them. There will be no great reawakening. Perhaps when they see the bombs dropping and taking out DC in the next global conflict a decade from now, they may rethink their life, but even then I doubt it.
I think owning industrial metals is great, if that's your thing. I own metals as monetary equivilents. Gold has been used for 6000 years. The NWO wants to break that. So, this is the dynamic I discuss. The worst thing that happens is that you march down to the factory and sell palladium. Keep in mind that platinum can be used in place of Pd. Can Pd's price rise above Pt?
the longer gold stays above 1300, the greater the chance to breach 1330 and test 1350 in my opinion...but then again, macro data like jobs/unemployment will decide which way it goes
ReplyDeleteWell, >30 minutes, gold acts better than plat & silver, a bearish omen ; now how are the spinmeisters going to explain to us the job numbers and better yet, what kind of a circus will we have in an hour out of the Richmond hocus pocus numbers?
ReplyDeleteSteve, all the guys long gold and the stocks in 2011 are shorting now. Ill took and will continue to take the other side to that trade. Marks last post friday 19 I dont think well see him reporting on glamstocks today too.
ReplyDeleteThanks Eph, This may sound strange coming from one who advocates physical gold ownership but India has a gold problem. The incredible demand for gold imports was causing trade deficit issues for the RBI and IMHO the central bank did the right thing. It is hard for a westerner to comprehend the gold obsession in India.
ReplyDeleteAs far as France is concerned it seems recent legislation regarding capital flight restrictions is not limited to gold. I have not looked too hard at Vietnam but a cursory glance tells me the restrictions there are mainly to reign in speculation on paper gold. As we all know governments enact stupid legislation sometimes but I don't see widespread attacks on physical gold ownership (especially in the west where paper rules).
I am always objective with my views. Whether all the restrictions and rules regarding gold makes sense doesn't matter. What matters is that they are happening now.
DeleteBTW the equities are on a tear, and my options are now firmly in the green. There will be nothing that can stop this freight train for at least 12-24 mos. The pressure to lift these markets is without precedent. it will make nasdaq 5000 momentum players blush.
Hi,
DeleteA thought. It will be nut for India govt to destroy gold ... It just make no sense after all they have one of the largest private ownership.
Ok.. I leave the pro to have the front drive.. Cheers..
what the hell are you saying preditor1976?
DeleteHi Steve.
DeleteEph6:7 was trying to say govt around the world to restrict ownership of gold and it have start India Vietnam etc..
My thought on this is above.. Cheers
Hi again..
ReplyDeleteFinal thought ...IMHO ... No govt want to really destroy gold. Cause if they destroy it value they will have trouble in restore the fiat currency fate once people completely do not have fate in currency.
Cheers
gold is acting real sweet today....not sure if it has enough steam to pop up and breach 1350 but cant complain today
ReplyDeleteGold are the direct reflection of our economy.Although there is a constant increase in prices of gold, yet it attracts a lot of investors. Gold becomes a savior at the time of recession in market. Nice post!
ReplyDeleteGold bullion Australia