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Offline g

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Re: Gold & Silver News
« Reply #435 on: April 16, 2013, 05:06:25 AM »
Gold got down to 1320 last night and is now at 1388  a 68 dollar bounce of the low

Silver got down to 21.12 and is now trading at 23.70 a larger than 2 dollar bounce and more impressive than Gold's bounce back so far.

Action leads me to believe the manipulators are more concerned with keeping Gold down rather than silver.

Surprised the COMEX didn't jack margins up yet, might mean some of their big boys got caught by surprise, but I rather doubt it.

Agelbert and Haniel I was unable to purchase either so I have decided to go the ETF route GLD and SLV, a poor substitute I know for the real thing, but useful for day trading an unusual event such as this when the physical markets are frozen for the buyers.  Gold mining stocks hammered to ridiculous prices also and offer and avenue to play the smash for those so inclined.  Options look attractive here for those with little capital and a stomach for greater than normal risk.

                                                           
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Offline agelbert

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Re: Gold & Silver News
« Reply #436 on: April 16, 2013, 08:55:21 AM »
Quote
With their industrial base all but gone, the housing market bubble popped, and the Federal Resereve funding the majority of the government debt with printed currency, the American economy can ill-afford a new challenge to its currency's reserve status. It is this very reserve status which has led to America being able to consume more than it produces for decades upon decades as foriegn countries were willing to trade consumer products for paper IOU's. The Dollar's reserve status came about naturally after WW2 as the U.S. was the world's larget trading nation, exporter, and creditor. Today, China occuppies all of these slots.
GO,
I guess the idea that China is "toast" is a bit premature...  ;) :icon_mrgreen:

In regard to PM ETFs, my wife won't hear of me getting into the MAHKET  :icon_mrgreen:, but IF I was to get in I'd head straight for AGQ double levereged silver ETF. Somebody is going to rake it in there but sadly, it won't be me :(.

Good luck to you.

Uncle Bob,
Maybe you are right and there is no scam but I, ignorant fool that I am  :icon_mrgreen:, believe there is one. Bombs in Boston and a big quake in Iran and PM prices don't rocket up!? Give me a break here!

By the way, futures contracts are only a tiny portion of price discovery, not the full picture. Puts and calls in or out of the money and how much of what most people are buying is an effect of the long and short positions (and, of course, actual buying and selling of physical and ETF equities) separate from the futures contracts themselves. Futures contracts, if not sold prior to expiration date, as you know, do nothing to the commodity's price. Good luck and Caveat Emptor! :icon_mrgreen:

NOTE: AGQ is up over 6% as I posted here.https://www.google.com/finance?q=NYSEARCA%3AAGQ&ei=6LUrUfjCMLK50QGCbQ
« Last Edit: April 16, 2013, 09:03:50 AM by agelbert »
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Offline DoomerSupport

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Re: Gold & Silver News
« Reply #437 on: April 16, 2013, 09:03:34 AM »
Quote
They had no gold coins for sale.. I'm guessing they don't want to sell in the dip.  Will call me when they have some for sale.   :-\

Just curious Haniel, same for silver coins?

They had rounds, bit pricey (spot plus 1.50 I think) and I'm not after silver at present.  No sales tax here on purchases of coins over $ 1,500, so I usually use silver to round up to make sure I go over the threshold.   

The pawn side of the business had a queue out of the door, but apparently that's normal these days.


Offline RE

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The Final Liquidation of the Gold Bug
« Reply #438 on: April 17, 2013, 02:11:25 AM »
It's the FINAL COUNTDOWN for Goldfinger!

<a href="http://www.youtube.com/v/9jK-NcRmVcw" target="_blank" class="new_win">http://www.youtube.com/v/9jK-NcRmVcw</a>
Notice it says "GO" at 0:54 in the Video  :icon_mrgreen:

The article BTW is written by a Gold Bug, who at the end PLEADS with his Fellow Gold Bugs to STAY THE COURSE!  Be BRAVE my Fellow Gold Bugs!  "The Few, The Proud, The STACKERS!" LOL.

RE

The Final Liquidation of the Gold Bug


What you are witnessing in the gold market right now is the final liquidation of the gold bug. On Friday gold fell $84 an ounce for a 5.38% drop while the HUI gold stock index fell 6%. Big bad moves. What is worse these drops have come after months of falling gold prices all while the S&P 500 has gone higher.
This has been a very painful time for gold and silver bugs. While they have lost money they have for the most part watched the broad US stock market go up, which means that while their gold positions went down in value those not invested in gold and in just about anything else made money while they lost money. It feels awful to do that. There is only one word for this – brutal.
Gold bugs have been holding on to their positions since gold last made a peak in the Fall of 2011. Since then the HUI has dropped 53% since it topped out on September 8, 2011. They have held on through some frightening declines and seeming bottoms that provided nothing but false hope. Last year we saw a potential bottom in the Spring and a rally in the Fall that led to nothing but another top and a nosedive into this year and into the present.
The reward for believing in gold has been to be punished over and over again. Many gold bugs bought into gold with the idea that it was a safe haven – that to buy into the US stock market or stocks anywhere else in the world was just too risky to do. Didn’t the 2008 stock market crash prove that? Didn’t the European crisis of last year show us all the risks of debt? Not exactly – as European markets have boomed since last summer with Greece of all places being the fastest gaining market in the world.
But many have said that only gold can go up. That only gold will provide a way to make money. They promised that if you bought gold you would come out a winner while one day everyone else will lose money. Now it seems that all of the promises have proven to not be true and that gold has been the big disappointment.
Now many are selling disgust. CNBC is saying that gold is done, because Ben Bernanke and President Obama have put the country on the verge of a coming economic boom. They say command and control economics is the future and anyone who doubts this by owning gold is a dinosaur. In the last month we have seen days in which good economic news comes out that gold has gone done in value. Then on days when bad news has been announced gold goes down too instead of doing up.

Then on Friday the Cyprus government said it would sell gold and give the proceeds to the European Monetary Union to finance its bank bailouts as it gives up its national birthright. It seems no news is good for gold. Goldman Sachs sent a note to clients last week telling them to short gold. Marc Faber told a reporter this weekend that he thinks gold could drop to $1,300 an ounce before bottoming.
Many are saying gold is over and there are some now that have held on to their gold positions for years and are now selling. Some are taking that money and moving it into the S&P 500 in obedience to the talking heads on CNBC and really more in fear of missing out on more stock market gains than anything else. If that turns out to be a mistake well at least they won’t be alone – so for many there is emotional comfort in that. They’ll lose money with everyone else and that isn’t as bad as possibly being all alone in gold while your neighbors in their boring mutual funds make money not knowing what they are doing. But that is not prudent investment behavior.

And Goldman Sachs isn’t always right. What Goldman Sachs does with its own money and what it tells clients can be two different things. Back in March of 2000 Goldman Sachs talking head Abby Cohen told people to keep buying Internet stocks just as they topped. In July of last year Goldman Sachs sent a note to clients telling them to SHORT the S&P 500 due to what they thought were signs of economic weakness in the US economy. That was a mistake and this call now to short on gold on their behalf will be proven to be one too.
“So what is going on then?” you probably are asking. Why is gold falling? What does this mean? Are all the economic risks gone? Is deflation coming? Is Fed QE the miracle CNBC’s Steve Liesman says it is? Yes there are some who hate gold bugs, because they represent doubts over the Federal Reserve. They wish they would become extinct.

But gold is not going away. Here is the thing. No one really knows exactly why gold is falling, because there probably is not some big economic reason for it. The truth is markets are cruel. They go up and trap people at tops and then fall far enough to cause as many people to sell on a bottom as they can. This is how bull and bear markets work.
Bear markets do not come to an end when news all of a sudden gets better. They come to an end when every potential seller in them sells out. This is what really causes bear markets – more selling than buying. Gold has been in a bear market now since 2011. However, that is a two year bear cycle within a long-term secular bull market cycle that has been going on for gold now for over a decade and is not over yet.
There are two things you need to realize. When this gold bear market is over a new bull market will begin and those that are invested in that bull market will make an absolute killing. Gold is still up over 580% from 2001 even with its decline of the past two years. And since then gold has gone through two other major declines which lasted over a year that led to awesome gains once they ended. There is no reason to think this time will be different.
Whatever you do you need to make sure that you are in gold during that next bull market. To sell now would mean to give that up. Perhaps though you have to sell. Maybe you own too much. Maybe you are on margin. Maybe you are a hedge fund with investors that now will have no more patience for your gold positions with the S&P 500 going up the past few months. You see bear markets force people to sell for many reasons. Hundreds of millions of dollars are being forced out of the gold market right now.
Second you have to realize that there is nothing easy about trying to make big bucks out of a financial market, because financial markets are cruel. If you thought the gold game was going to be easy than grow up. But realize that nothing else will be any easier. Don’t think for a second that the S&P 500 is going to remain an easy game for people either. Since I’ve been in the financial markets there have been two massive stock market wipeouts that were just as bad – if not worse – than what we are witnessing in gold right now. And I am sure eventually once this bull market in the US stock market ends there will be another cruel bear market that will wipeout another round of investors.
This is how the stock market works and this cycle will never end. You see bull markets thrive on buying. They depend on more people putting more money into use to drive them higher. As people buy they get bullish. If someone has money and is on the sidelines he has doubts about the market. But once he buys he pushes those doubts away and proclaims himself to be a bull! That is why at major market tops bullish sentiment is widespread and just about everyone you know is in. But when there are no buyers left to get in the bull market ends as sellers take control.
As bear market start people hold on in hope. Each rally that comes appears to be the start of a new bull market, but as each successive rally disappoints more and more people sell. Sellers take control of the market. Whether the news is good or bad the market drops anyway.
You see the NEWS DOES NOT MATTER. In bull markets bad news is bought and in bear markets all news gets sold. The news means nothing. All that matters is whether the sellers are in control or the buyers. All that matters is whether the market is in a bull market or a bear market and that is ALL YOU NEED TO KNOW. Trying to figure out why gold is dropping right now is a total waste of your time. It is dropping because it has been in a bear market for almost two years now and at the end of bear markets you can get crashes and extremes in bearish sentiment as every person who is a potential seller finally sells in a giant capitulation. What you are witnessing is not some grand change in the world economy, but the mass liquidation of all remaining gold bugs. It is simply the natural process of a bear market cycle that started in the Fall of 2011.
Right now the sentiment surrounding this gold market is just about as bad now as I’ve ever seen it. For instance see this comment from the blog Theshortsideoflong.com:

I have hinted at the extreme depressed sentiment including the following important indicators:
• In early March COT reported Gold short positions reached the highest level in over a decade
• In early March Gold’s Public Opinion reached one of the lowest levels in at least a decade
• Last week COT reported Silver short positions reached the highest level in almost two decades
• Last week Silver’s Public Opinion reached one of the lowest levels in at least a decade

The latest development worthy of “decade extreme” or “record extreme” within the Precious Metals sector, comes to us thanks to Mark Hulbert Financial Digest. According to Mark’s latest WSJ column, there has been a huge plunge in exposure of various Gold newsletter advisors. Currently, the Hulbert Gold Newsletter Sentiment index (HGNSI) is at -31% net short, a historical record low since the inception of the survey in 1997. Essentially, this means that the average Gold newsletter advisor is telling subscribers and various other clients to be short Gold with 31% of their portfolio.

I just want to plead with you, do not give up on gold! You see no one cannot predict at what exact price the current gold price drop is going to end, but I can tell you two things for sure. I can tell you first of all that gold stocks are super cheap now on a fundamental basis with many gold stocks paying big dividends – dividends bigger than you can get from buying a US treasury bond. Newmont for example has a P/E of 10 and is paying a dividend over 4.30%.
I know you are probably thinking well they were cheap a month ago too and that doesn’t mean that gold and gold stocks can’t go lower. And yes you are right! They can. But one thing we both know for sure all bear markets come to an end and this one will too. And once it does gold prices will explode in value and a whole new cycle of gold investors will make a mint off of it.
I plan on being a part of that. I have a little gold and gold stock position so this drop has barely made a dent in my portfolio. You see I own positions in markets all over the world and gold has just been a tiny part of my portfolio. I didn’t want to buy a whole lot of it until I was sure the bear trend was over.
Now I am getting excited about the idea of buying more of it. Tomorrow morning I am going to send premium WSW Power Investors my game plan for doing just that. We are all learning lessons from these markets. You never stop learning.
If you have had no choice but to sell gold positions because of this decline or feel like you must due to the impact a further drop in gold would have on your portfolio or your job if you are a fund manager then the lesson you need to take away from this is not that gold is now bad, but that you need to manage your money differently in the future. The mistake you made was not in owning gold, but in owning too much of it or not reducing your position at the right time and taking some profits if you sold years ago.
Maybe you are in cash and are feeling no pain at all though. I do not know what your personal position is on gold as I am writing this for myself and thousands of others who will read it. What all of us must do, no matter what our current investments are, is figure out what is the best way to make money in these markets going forward. If you believe like I do that gold will go higher once again once its current decline that started way back in the Fall of 2011 is over than you must figure out how you want to be a part of that next bull run in gold and precious metals. You need to figure out when you want to buy it and how much.
You need to figure out how you want to manage your money in a bull market. You see people buy in tops and sell on crashes over and over again never learning anything, because they never stop to learn from what they have already done. Once you learn then you make money in a sustainable manner.
Bull markets come and go. So do bear markets. These cruel cycles and patterns never will end, because they are human nature. With gold we are witnessing climatic bear market crash action. We are witnessing the liquidation of the gold bug and the beginning of a bottom. The only thing left once all of the potential sellers are gone will be the few strong hands left – those will be the people who just own a little bit so they don’t get crushed so much they have to sell and those simply tough enough to hold on. They are the few and the brave.
What you have to think about though isn’t being tough – but getting smarter when it comes to investing. Market action like this is when it makes sense to make plans to buy. Think about last year when European markets crashed and everyone said it was stupid to invest there. No one believed, because no one was left to believe. And now the gold bugs are almost all gone too.
« Last Edit: April 17, 2013, 02:22:07 AM by RE »
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Offline g

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This Gold Slam Is a Massive Wealth Transfer from Our Pockets to the Banks

By Chris Martenson PhD
Created 16 Apr 2013

I am very disappointed by, but not surprised at, the latest transfer of weath to the bankers from everyone else. The most recent gold bear raid has vastly enriched the bullion bankers, once again, at the expense of everyone trying to protect their wealth from global central bank money printing.

The central plank of Bernanke's magic recovery plan has been to get everybody back borrowing, spending, and "investing" in stocks, bonds, and other financial assets. But not equally so - he has been instrumental in distorting the landscape towards risk assets and away from safe harbors.

That's why a 2- year loan to the US government will only net you 0.22%, a rate that is far below even the official rate of inflation. In other words, loan the US government $10,000,000 and you will receive just $22,000 per year for your efforts and lose wealth in the process because inflation reduced the value of your $10,000,000 by $130,000 per year. After the two years is up, you are up $44k but out $260k for net loss of $216,000.

That wealth, or purchasing power, did not just vanish: it was taken by the process of inflation and transferred to someone else. But to whom did it go? There's no easy answer for that, but the basic answer is that it went to those closest to the printing press. It went to the government itself which spent your $10,000,000 loan the instant you made it, and it went to the financiers that play the leveraged game of money who happen to be closest to the Fed's printing press.

This explains, almost completely, why the gap between the rich and everyone else is widening so rapidly, and why financiers now populate the top of every Forbes 400 list. There is no mystery, just a process of wealth transfer of magnificent and historic proportions; one that has been repeated dozens of times throughout history.
This Gold Slam Was By and For the Bullion Banks

A while back I noted to Adam that the gold slams that were first detected back in January were among the weakest I'd ever seen. Back then I was seeing the usual pattern of late night, thin-market futures dumping which I had seen before in 2008 and 2011, two other periods when precious metals were slammed hard.

The process is simple enough to understand; if you want to move the price down for any asset, your best results will happen in a thin market when there's not a lot of participation so whatever volume you supply has a chance of wiping out whatever bids are sitting on the books. It is in those dark hours that the market makers just dump, preferably as fast as possible.

This is exactly what I saw repeatedly leading up to Friday's epic dump-fest. The mainstream media (MSM), for its part, fully supports these practices by failing to even note them, and the CFTC has never once commented on the practice, and we all know that central banks support a well contained precious metals (PM) price because they are actively trying to build confidence in their fiat money, and rising PM prices serve to reduce confidence.

Here's a perfect example of the MSM in action, courtesy of the Financial Times:

    Gold tumbles to two-year low [1]

    “There is no other way to put gold’s recent sell-off: nasty,” said Joni Teves, precious metals strategist at UBS in London, adding that gold would have to work to “rebuild trust” among investors.

    Tom Kendall, precious metals analyst at Credit Suisse said “Once again gold investors are being reminded that the metal is not a very effective hedge against broad-based risk-off moves in the commodity markets.”

There are two things to note in these snippets. The first is that the main ideas being promoted about gold are that it is no longer to be trusted, and that somehow the recent move is a result of "risk off" decisions meaning, conversely, that there is increased trust in the larger financial markets that 'investors' are rotating towards. Note that these ideas are exactly the sort of messages that central bankers quite desperately want to have conveyed.

The second observation is even more interesting; namely that the only people quoted work directly for the largest bullion banks in the world. These are the very same outfits that stood to gain enormously if precious metals dropped in price. Of course they are thrilled with the recent sell off. They made billions.

In February Credit Suisse 'predicted' the gold market had peaked, SocGen said the end of the gold era was upon us, and recently Goldman Sachs told everyone to short the metal.

While that's somewhat interesting, you should first know that the largest bullion banks had amassed huge short positions in precious metals by January.

The CFTC rather coyly refers to the bullion banks as simply 'large traders' but everyone knows that these are the bullion banks. What we are seeing in that chart is that out of a range of commodities the precious metals were the most heavily shorted, by far.

So the timeline here is easy to follow - the bullion banks:

    Amass a huge short position early in the game
    Begin telling everyone to go short (wink, wink) to get things moving along in the right direction by sowing doubt in the minds of the longs
    Begin testing the late night markets for depth by initiating mini raids (that also serve to let experienced traders know that there's an elephant or two in the room)
    Wait for the right moment and then open the floodgates to dump such an overwhelming amount of paper gold and silver into the market that lower prices are the only possible result.
    Close their positions for massive gains and then act as if they had made a really precient market call
    Await their big bonus checks and wash, rinse, repeat at a later date

While I am almost 100% certain that any decent investigation by the CFTC would reveal that market manipulating 'dumping' was happening, I am equally certain that no such investigation will occur. That's because the point of such a maneuver by the bullion banks is designed to
transfer as much wealth from 'out there' and towards the center and the CFTC is there to protect the center's 'right' to do exactly that.

This all began on Friday April 12th, and one of the better summaries is provided by Ross Norman of Sharps Pixley, a London Bullion brokerage:

    The gold futures markets opened in New York on Friday 12th April to a monumental 3.4 million ounces (100 tonnes) of gold selling of the June futures contract (see below) in what proved to be only an opening shot. The selling took gold to the technically very important level of $1540 which was not only the low of 2012, it was also seen by many as the level which confirmed the ongoing bull run which dates back to 2000. In many traders minds it stood as a formidable support level... the line in the sand.

    Two hours later the initial selling, rumored to have been routed through Merrill Lynch's floor team, by a rather more significant blast when the floor was hit by a further 10 million ounces of selling (300 tonnes) over the following 30 minutes of trading. This was clearly not a case of disappointed longs leaving the market - it had the hallmarks of a concerted 'short sale', which by driving prices sharply lower in a display of 'shock & awe' - would seek to gain further momentum by prompting others to also sell as their positions as they hit their maximum acceptable losses or so-called 'stopped-out' in market parlance - probably hidden the unimpeachable (?) $1540 level.

    The selling was timed for optimal impact with New York at its most liquid, while key overseas gold markets including London were open and able feel the impact. The estimated 400 tonne of gold futures selling in total equates to 15% of annual gold mine production - too much for the market to readily absorb, especially with sentiment weak following gold's non performance in the wake of Japanese QE, a nuclear th

The areas circled represent the largest 'dumps' of paper gold contracts that I have ever seen. To reiterate Ross's comments, there is no possible way to explain those except as a concerted effort to drive down the price.

To put this in context, if instead of gold this were corn we were talking about, 128,000,000 tonnes of corn would have been sold during a similar 3 hour window, as that amount represents 15% of the world's yearly harvest. And what would have happened to the price? It would have been driven sharply lower, of course. That's the point, such dumping is designed to accomplish lower prices, period, and that's the very definition of market manipulation.

For a closer-up look at this process, let's turn to Sunday night and with a resolution of about 1 second (the chart above is with 5 minute 'windows' or candles as they are called). Here I want you to see that whomever is trading in the thin overnight market and is responsible for setting the prices is not humans. Humans trade small numbers of contracts and in consistently random amounts.

Here's an example:
These are just a few of the dozens of examples I captured over a single hour of trading before I lost interest in capturing any more.

As I was watching this and discussing it with Adam in real time, I knew that I was watching the sort of HFT/computer trading robots that we've discussed here so much in the past. They are perfectly designed to chew through bid structures and that's what you see above. They are 'digesting' all the orders that were still on the books for gold, to remove them so that lower and lower stops could be run.

Anybody that had orders up against these machines, perhaps with stops in place, or perhaps even asleep because this all happened in the hours around midnight EST, lost and lost big.

There is really no chance to stand again players this large with a determination to drive prices lower. At the very least, I take the above evidence of computer assisted declines of this magnitude to be a sign that our "markets" are completely broken and quite vulnerable to a crash. That the authorities did not step in to halt these markets during such a volatile decline, when they have repeatedly stepped into other markets and individual equity shares on lesser declines, tells me much about the level of official support for such a decline.

It also tells me that things are speeding up and the next decline in the equity or bond markets may happen a lot faster than anybody is expecting.
Unintended Consequences

If the intended consequences of this move were to enrich the bullion banks and to chase investors away from gold and other commodities and into stocks, what are the unintended consequences going to be?

While I cannot dispute that the bullion banks made out like bandits, I also wonder if perhaps instead of signaling that the dollar is safer than gold, that the banks did not unintentionally send the larger signal that deflation is gaining the upper hand?

With deflation, everything falls apart. It is the most feared thing to the powers that be and for good reason. Without inflation, and at least nominal GDP growth, if not real growth, then all of the various rescues and steadily growing piles of public debt will slump towards outright failure, and possibly collapse. The unintended consequence of dropping gold so powerfully is to signal that deflation is winning the day.

If this view is correct, then the current sell off in gold, as well as in other commodities (detailed in part II), will simply be the trigger for a loss of both confidence and liquidity in the system and that will not bode well for the larger economy or equities.

In Part II: Protecting Your Wealth From Deflation [9] we explore the growing signs that the money printing efforts of the central planners are seeing diminishing returns and are failing in their intended effect to kick-start global economic growth higher. Deflationary forces appear poised to take the upper hand here, sending asset prices lower -- potentially much lower -- across the board.

If deflation indeed manages to break out from under the central banks efforts to contain it, even if only for a short period, how bad will the ensuing wave of price instability be? How can one position for it? How extreme will the measures the central banks take in response be? And what impact will that have on asset prices, the dollar and precious metals?

We are entering a new chapter in the unfolding of our economic emergency, one in which the risks to capital are greater than ever. And the rules are increasingly being re-written to the disadvantage of us individuals.

The one unfair advantage we have is that history is very clear on how these periods of economic malfeasance end. Let's exploit that as best we're able.


Many interesting unique charts in article
http://feedproxy.google.com/~r/fso/~3/vjfhBDwAMOg/gold-slam-massive-wealth-transfer-our-pockets-banks   :icon_study: :icon_study:

« Last Edit: April 17, 2013, 03:20:35 AM by Golden Oxen »

Offline agelbert

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Re: Gold & Silver News
« Reply #440 on: April 17, 2013, 09:13:00 AM »
Quote
Why So Many Analysts Insist Gold Will Tank

This is a non-complex issue that economists like to make it sound complex in order to further their temporary need for market stimulation. Anyone that tells you that the result of Nixon shock is any more complicated than supply and demand methods learned in an ECON 101 class is trying to pull the wool over your eyes. What I mean by that is that this is a far less complicated issue than many economists will have you believe. It has to do with the amount of money in the supply versus the finite, unchangeable amount of gold available worldwide. :emthup:

So, the wool that Goldman could be trying to pull over your eyes here could be the same tactics used by analysts, market makers and hedge fund traders everywhere: create a trend and buy/sell the opposite into it. If you think Goldman could not possibly be buying gold on their very own downgrade and assumed corresponding price decline, then I have some real estate in Alaska I'd like to sell you. I'd bet dollars to donuts that the "waning interest" in gold that Goldman is citing could be as fabricated as the money we continue to print. :evil4:

The above quote is from an interesting article from a fellow that has been calling a market top since March 12. I think he makes a lot of sense. :emthup: :icon_mrgreen:

3 Moves To Make On The Verge Of Market Panic
http://seekingalpha.com/article/1344511-3-moves-to-make-on-the-verge-of-market-panic?source=email_the_daily_dispatch&ifp=0

SNIPPET
Quote
How You Can Invest This :

Buy puts against long equity positions you want to hold

Write calls against long equity positions you want to hold

Sell short a competitor to your long positions as a sector hedge [i.e. If you're long Chipotle (CMG), short Panera (PNRA)]

Buy inverse index ETFs like DOG, DXD, QID

2. Gold is Cheap, Buy It Now

Gold (GLD) was down 9% early this week commensurate with the panic that ensued on Monday.
Leges         Sine    Moribus      Vanae   
Faith,
if it has not works, is dead, being alone.

Offline DoomerSupport

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Re: Gold & Silver News
« Reply #441 on: April 17, 2013, 10:05:06 AM »
Gold is just the latest market to be blatantly manipulated.  It joins pretty much any other asset class in that respect.  Resources are being herded into the fiat currencies to keep them viable for a little while longer. 

I plan to hold onto my PM's and maybe add a little more in this dip, but I am loosing confidence in PM's being left to float as a gauge of wealth compared to the fiat currencies.  While it's a store of wealth, the concerted effort to drive down the prices concerns me.  I suspect that the bullion banks are trying to get back what they leased from the FR to meet delivery calls from players big enough to make waves if they do not get it - like Germany.

The way it played out, it looked like the big players gamed the system to cause a lot of GLD to sell via automated triggers, in the middle of the night when the little guys were sleeping. It's why I don't trust paper.

If the government ever want to repeat the gold confiscation gag, then they'll need to drive the price way down so they only pay a distressed asset price. Then they can lease the new pool of gold to the bullion banks and let the price float again, allowing the bankster buddies to  privatize the profits. Again.


Offline agelbert

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Re: Gold & Silver News
« Reply #442 on: April 17, 2013, 11:31:34 AM »
Haniel,
Well said. In the meantime expect the bullion dealers to invent higher "premiums" over spot so they can pretend the price is still "low" of spot. That $3.50 an ounce "premium" on silver is a scam. :evil4: At $23.25 and ounce that's a 15% mark up! If they did the same thing to gold at $1375 and ounce they would have to claim a "premium" of $206! I wouldn't put it past them with current actual demand on physical.
 
Leges         Sine    Moribus      Vanae   
Faith,
if it has not works, is dead, being alone.

Offline agelbert

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Re: Gold & Silver News
« Reply #443 on: April 17, 2013, 01:59:32 PM »
Weird new silver play out starting today. Looks a bit risky. :P

Quote
Credit Suisse's Silver Shares Covered Call ETN (SLVO) with annual fee of 0.65%. The fund is long silver (through the SLV), but forgoes monthly gains in the metal greater than 6%, instead generating income by selling out-of-the-money calls in SLV

http://www.indexuniverse.com/hot-topics/16500-credit-suisse-launches-silver-etn.html

I don't see any downside protection but I do see Credit Suisse's grubby hands out grabbing a fee!  :evil4: :emthdown:
By the way, they've got one gold too called GLDI.
Leges         Sine    Moribus      Vanae   
Faith,
if it has not works, is dead, being alone.

Offline g

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One of the more curious revelations of the New Normal is the fundamental dichotomy when investing between paper "investors", or those who chase returns based on intangible, fiat-based and central bank-backed promises, such as capital appreciation or cash flow streams, and those who would rather convert their paper money into hard assets, even if said assets can not be, in the immortal words of Warren Buffett, fondled, or otherwise generate a cash-based return. Such as gold.

Today provides perhaps the perfect example of how the former increasingly trade on nothing but momentum and speculative mania (such as the previously reported record inflow [6]of foreign capital into the Japanese stock market well after the bulk of the easy upside has already been made and at this point there is mostly downside) and where buying begets only more buying, while rampant selling only leads to liquidations, while those who invest in hard assets (and thus have little to no leverage) have become the true value investors, purchasing more as the price of the underlying asset drops. Yes, a novel concept to most High Frequency Trading vacuum tubes, and the momentum-chasing, equity trading "expert" du jour, but nothing new to Indians [7], Australians [8], Chinese [9]or the Japanese [10].

And apparently to at least some Americans.

According to today's data from the US Mint [11], a record 63,500 ounces, or a whopping 2 tons, of gold were reported sold on April 17th alone, bringing the total sales for the month to a whopping 147,000 ounces or more than the previous two months combined with just half of the month gone.

Punchline number one, as the chart below shows, is that the more the price of gold fell, the more aggressive the purchases of physical gold through the Mint became, rising to 96,500 oz in the last two days alone. Buying more of something you want when the price drops: what a stunning concept - explain that to the algos who nearly crashed the German stock market overnight [12].

Punchline number two, of course, is that the US mint charges a hefty premium for purchases: much more so than traditional vendors like Apmex or Gainesville Coins, and is usually the last resort for when nobody else has any physical at a lower premium to spot (or any metal in inventory).

So how long until the US mint "runs out" of American Eagles and Buffaloes in inventory, along with the depletion of all other precious metal vendors? And what happens if the price of paper gold hits zero (or goes negative) courtesy of bank and financial institution liquidation selling of paper derivative contracts nebulously referencing some yellow metal somewhere, even as suddenly there is no physical to be delivered to anyone, anywhere?

Inquiring minds really want to know.


                                               
Gold Mint
Gold Mint
             

http://www.zerohedge.com/news/2013-04-17/us-mint-sells-record-63500-ounces-gold-one-day  :icon_study:

Offline g

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Re: Gold & Silver News: China's Gold Rush as Prices Drop
« Reply #445 on: April 18, 2013, 04:02:13 AM »
Gold, once considered a sure-fire investment, has seen a massive price drop, following disappointing growth figures from China. Monday saw a $125 dollar per ounce drop—the largest daily drop in history. But while people in the States and Europe have been rushing to sell of their gold before prices further drop, in China, gold couldn’t be hotter.
According to reports coming out of Shanghai and Hong Kong, people are flocking to jewelry shops, not to sell, but to buy gold, with some shops selling out of their gold stock in one or two days. Apparently the lower prices are making some think it’s the perfect opportunity to buy that gold ring they always wanted.
 
That’s good news for business in Hong Kong that were bracing for a big hit after some investment banks predicted gold prices could fall as low as $1,200 per ounce, the lowest since 2010. But the influx of customers from the Mainland has seen business booming, and at least for now, all that glitters is gold.

http://ntdtv.org/en/news/china/2013-04-16/china-s-gold-rush-as-prices-drop.html Video included in article  :icon_study:

Offline Petty Tyrant

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Re: Gold & Silver News
« Reply #446 on: April 18, 2013, 06:26:59 AM »
There you go, 444 and 445 above prove my point that the gold bugs world is totally different from paper gold investors. If there is anywhere other than a jewellery shop you can buy without leaving ID, it wont be long before you can no longer. You will have to wait, which means leaving your details, which means they may confiscate haircut it.
ELEVATE YOUR GAME

Offline g

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Re: Gold & Silver News: Paper Gold Crash Unleashed An Unprecedented Demand
« Reply #447 on: April 21, 2013, 05:58:42 AM »
10 Signs The Paper Gold Crash Unleashed An Unprecedented Demand For Physical Gold And Silver

Submitted by Michael Snyder of The Economic Collapse blog [14],

The crash of the price of paper gold on Monday has unleashed an unprecedented global frenzy to buy physical gold and silver.  All over the planet, people are recognizing that this is a unique opportunity to be able to acquire large amounts of gold and silver at a bargain price.  So precious metals dealers now find themselves being overwhelmed with orders in the United States, in Canada, in Europe and over in Asia.

Will this massive run on physical gold and silver soon lead to widespread shortages of those metals?  Instead of frightening people away from gold and silver, the takedown of paper gold [15] seems to have had just the opposite effect.  People just can't seem to get enough physical gold and silver right now.  Those that wish that they had gotten into gold when it was less than $1400 an ounce are able to do so now, and it is absolutely insane that silver is sitting at about $23 an ounce.  If the big banks continue to play games with the price of gold, we are going to see existing supplies of physical gold and silver dry up very quickly.

And once reports of physical shortages of gold and silver become widespread, it is going to absolutely rock the financial world.  But this is what happens when you manipulate free markets - it often has unintended consequences far beyond anything that you ever imagined.

The following are 10 signs that the takedown of paper gold has unleashed an unprecedented global run on physical gold and silver...

#1 [16] According to Zero Hedge [17], the U.S. Mint set a new all-time record for the number of gold ounces sold on Wednesday...

    According to today's data from the US Mint [18], a record 63,500 ounces, or a whopping 2 tons, of gold were reported sold on April 17th alone, bringing the total sales for the month to a whopping 147,000 ounces or more than the previous two months combined with just half of the month gone.

#2 [19] Precious metals dealers all over the United States are having a really hard time keeping up with demand right now.  According to Chris Martenson [20], many are warning customers to expect waiting times of five to six weeks at this point...

    In the U.S., all of the dealers I talk to are reporting huge demand and brisk buying. Silver in any form is quite hard to come by unless you want to pay premiums of 20%+ per ounce above spot price. Delivery times are 5 to 6 weeks out now – that's an unusual situation.  If this recent slam was designed to scare people away from gold, it did not have that desired outcome; in fact, just the opposite.

Link to rest of article. A Must read for those interested in Gold and Silver Markets

http://www.zerohedge.com/news/2013-04-20/10-signs-paper-gold-crash-unleashed-unprecedented-demand-physical-gold-and-silver  :icon_study: :icon_study: :icon_study:

Offline g

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Re: Gold & Silver News
« Reply #448 on: April 21, 2013, 07:52:27 AM »
The latest pearls of wisdom and measurement from the imbeciles that manage our system of Fiat, pure bull shit for the sheeple.  :-[

What costs goes up in real life decreases expenses according to government calculations.

The newest flimflam in town is the recent suggestion of an alteration to the CPI index. This suggestion assumes that if for instance the price of beef goes up you will buy a cheaper meat. I imagine if that cheaper meats goes up in price you will eat spam or cat food. This way if any inflation takes place you ignore it and substitute a cheaper similar item. We now will have a CPI (Consumer Price Index) index that goes down when prices go up. I love the magic wand of government that makes inflation into lower price canceling it all out.

Bureau of Labor Statistics’ (BLS) CPI-W Index, measuring prices for urban wage earners and clerical workers. The idea behind the CPI-W adjustment is that since urban wage earners and clerical workers have constrained incomes, they will shop in a thrifty manner, similar to retirees.  :laugh:

Offline monsta666

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Re: Gold & Silver News
« Reply #449 on: April 21, 2013, 02:54:47 PM »
Where is the gold?

An interesting documentary that should interest all gold bugs (and more) especially in light of the recent price manipulations of gold/silver.

<a href="http://www.youtube.com/v/4wgbpGF9kT0&fs=1" target="_blank" class="new_win">http://www.youtube.com/v/4wgbpGF9kT0&fs=1</a>

<a href="http://www.youtube.com/v/5OEMBzbINBI&fs=1" target="_blank" class="new_win">http://www.youtube.com/v/5OEMBzbINBI&fs=1</a>

<a href="http://www.youtube.com/v/hZzlz8GlX-c&fs=1" target="_blank" class="new_win">http://www.youtube.com/v/hZzlz8GlX-c&fs=1</a>

 

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