AuthorTopic: Gold & Silver News  (Read 476019 times)

Offline g

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Re: Gold & Silver News
« Reply #45 on: August 27, 2012, 03:22:46 AM »
 Gold and silver off to the races?
http://www.goldmoney.com/gold-research/newsdesk/gold-and-silver-off-to-the-races.html

Excited spectator Gold and silver prices posted very strong finishes to the end of last week, and look like they could at long last be at the start of a significant trending move higher. Gold gained 3.46% over the week, with silver recording an impressive 8.98% weekly gain. The white metal has broken above an important resistance level at $30, and judging from the price action this morning looks like it could launch a quick assault on $32.50 – a level that marked stubborn resistance for much of the first half of this year.

Over at KingWorldNews, commodity guru Dan Norcini notes the rash of short covering that took place in the silver market last week. He points to $35-$35.50 as the last “line in the sand” for these speculative shorts, and thinks that we could see a huge new influx of money on the long side of the market if this price level is bested. $40 will then be in play again.

The story is similar in gold. If the yellow metal rises above $1,700, we can expect to see speculators dashing to cover their short positions. Aside from the increasing likelihood that the Federal Reserve is getting ready to launch another money printing scheme within the next few weeks, gold bugs have also been encouraged by chatter about the Republican National Convention (due to meet in Tampa this week, barring problems with hurricanes) including a plank in the convention platform calling for a “gold commission” to study the feasibility of relinking the US dollar to gold.

Of course, a similar congressional commission was convened in the early 1980s, and to nobody’s great surprise endorsed the (non gold standard) status quo. Given the restraints that a genuine gold-dollar link would impose on federal spending, it is in fact almost inconceivable to imagine Washington voluntarily agreeing to return to a gold standard. But even accounting for these caveats and the fact that this latest idea probably owes more to Romney-Ryan trying to secure votes from Ron Paul supporters (many of whom will be tempted to stay at home on election day), it is at least encouraging to see gold once again becoming a mainstream discussion point.

Less encouraging are the continuing misconceptions fostered by lazy and/or ignorant journalists about gold’s use as money. But that’s a discussion for another article.     :icon_sunny:                                        :icon_study:
         
 

Offline g

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Re: Gold & Silver News: Eric Sprott Cautions " Fear the Financial System"
« Reply #46 on: August 28, 2012, 04:24:42 AM »
The Gold Report: You've stated before that the price of gold should be above $3,200/ounce (oz) and the price of silver above $200/oz but market manipulation keeps both metals artificially low. Who is manipulating it?

Eric Sprott: I suspect the G6 central banks have a hand in subverting the gold price because as the canary in the coal mine, high gold prices might tip everyone off to the severity of the ongoing financial crisis. I don't think anyone can doubt that we're in the middle of a financial crisis, primarily in the banking system, when month after month one program after another is rolled out to save somebody, whether it's Long-Term Refinancing Operations (LTROs), quantitative easings (QEs), bank bailouts in Spain or rollovers of debt in Greece.         :icon_study:
http://feedproxy.google.com/~r/theaureport/Ajgh/~3/TfuWkwMvLgg/14210

Offline g

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Re: Gold & Silver News
« Reply #47 on: September 04, 2012, 07:11:27 AM »
December Gold at 1700, December silver over 32.

Nice going Jb, nice entry point on silver.

Offline Jb

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Re: Gold & Silver News
« Reply #48 on: September 04, 2012, 07:34:59 AM »
Mornin' GO,

I'm not celebrating yet, but glad I didn't wait any longer. We'll see if this is truly a return to the longer trend. My own novice opinion is that beginning in 2008, the metals and in particular silver, stop being commodities and reverted to money as last resort.

Interesting that the metals did well last week despite Bernanke's lack of specific details. I was worried that the metal market was looking heavily to Jackson Hole for an excuse to go higher. Apparently, that is no longer the case. Spain is in real trouble, Obama is pulling troops out of Afghanistan in a hurry (and go where?), Egypt will collapse without subsidies from her traditional allies, failure of the US corn crop and the effects on food and fuel prices, etc. It seems to me the Fed is losing the battle and becoming irrelevant as events move beyond it's sphere of influence. 

Offline g

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Re: Gold & Silver News
« Reply #49 on: September 04, 2012, 07:43:53 AM »
Morning Jb. Sure is a horrible picture out there. Black swans everywhere possible and probable. Big inflation in food prices almost a certainty.

Offline Jb

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Re: Gold & Silver News
« Reply #50 on: September 04, 2012, 08:01:49 AM »
And here we go, right on cue:

http://chartistfriendfrompittsburgh.blogspot.com/2012/09/greece-exits-euro-usd-rallies-gold.html#more

Offline Jb

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Re: Gold & Silver News
« Reply #51 on: September 04, 2012, 08:11:31 AM »
This chart highlights my concern well enough.


Offline Jb

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Re: Gold & Silver News
« Reply #52 on: September 04, 2012, 03:46:08 PM »
Aaannnd then you read stuff like this and want to buy anything tangible, physical, and hold it your possession...

http://www.bloomberg.com/news/2012-09-04/saudi-arabia-may-become-oil-importer-by-2030-citigroup-says-1-.html

Offline g

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Re: Gold & Silver News
« Reply #53 on: September 04, 2012, 04:52:58 PM »
Aaannnd then you read stuff like this and want to buy anything tangible, physical, and hold it your possession...

http://www.bloomberg.com/news/2012-09-04/saudi-arabia-may-become-oil-importer-by-2030-citigroup-says-1-.html

We certainly have some pressing problems to deal with, and it had better be real soon.

Offline g

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Re: Gold & Silver News:How Long Will Dollar Remain the World’s Reserve Currency
« Reply #54 on: September 04, 2012, 05:24:57 PM »
From Ron Paul
We frequently hear the financial press refer to the U.S. dollar as the “world’s reserve currency,” implying that our dollar will always retain its value in an ever shifting world economy. But this is a dangerous and mistaken assumption.

Since August 15, 1971, when President Nixon closed the gold window and refused to pay out any of our remaining 280 million ounces of gold, the U.S. dollar has operated as a pure fiat currency. This means the dollar became an article of faith in the continued stability and might of the U.S. government.

In essence, we declared our insolvency in 1971. Everyone recognized some other monetary system had to be devised in order to bring stability to the markets.

http://feedproxy.google.com/~r/fso/~3/-LuHmo2HPOw/how-long-will-dollar-remain-worlds-reserve-currency   :icon_study:

Offline Surly1

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Re: Gold & Silver News
« Reply #55 on: September 05, 2012, 01:59:23 AM »
As has been discussed her before, the sole underwriter of the USD is the Big Ass Military (BAM) and its thousands of nukes.

It says here that one of the reasons that Gaddafi got it in the neck was that he proposed the Gold Dinar. Also, you'll recall that all the "nuke Iran" talk started in earnest a few years ago when Iran proposed an oil bourse that would bypass the USD.

Just coincidences, I'm sure.
"...reprehensible lying communist..."

Offline g

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Re: Gold & Silver News: Why is Putin Stockpiling Gold?
« Reply #56 on: September 06, 2012, 04:47:40 AM »
 


Sept. 5, 2012, 4:16 p.m. EDT
Why is Putin stockpiling gold?
Commentary: Russia is bulking up its gold reserve

By Brett Arends

I can’t imagine it means anything cheerful that Vladimir Putin, the Russian czar, is stockpiling gold as fast as he can get his hands on it.

According to the World Gold Council, Russia has more than doubled its gold reserves in the past five years. Putin has taken advantage of the financial crisis to build the world’s fifth-biggest gold pile in a handful of years, and is buying about half a billion dollars’ worth every month.                          
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It emerged last month that financial gurus George Soros and John Paulson had also increased their bullion exposure, but it’s Putin that’s really caught my eye.

No one else in the world plays global power politics as ruthlessly as Russia’s chilling strongman, the man who effectively stole a Super Bowl ring from Bob Kraft, the owner of the New England Patriots, when they met in Russia some years ago.

Putin’s moves may matter to your finances, because there are two ways to look at gold.

On the one hand, it’s an investment that by most modern standards seems to make no sense. It generates no cash flow and serves no practical purpose. Warren Buffett has pointed out that we dig it out of one hole in the ground only to stick it in another, and anyone watching this from Mars would be very confused.

You can forget claims that it’s “real” money. There’s no such thing. Money is just an accounting device, a way of keeping track of how much each of us produces and consumes. Gold is a shiny and somewhat tacky looking metal that is malleable, durable and heavy. A recent research paper by Duke University’s Campbell Harvey and co-author Claude Erb raised serious questions about most of the arguments in favor of gold as an investment.

But there’s another way to look at gold: As the most liquid reserve in times of turmoil, or worse.

The big story of our era is not that the Spanish government is broke, nor is it that Paul Ryan apparently feels the need to embellish his running record. It’s that the United States, which has dominated the world’s economy for several lifetimes, is in relative decline.      :icon_study:                             

www.marketwatch.com/Story/story/print?guid=9F27FB2E-F793-11E1-A4AB-002128049AD6

Offline Jb

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Re: Gold & Silver News
« Reply #57 on: September 06, 2012, 05:51:18 AM »
« Last Edit: September 06, 2012, 05:53:51 AM by Jb »

Offline g

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Re: Gold & Silver News
« Reply #58 on: September 06, 2012, 07:27:38 AM »
Murphy has done a great job exposing the swill Jb. All the markets of course are now rigged but none greater than gold and silver.

Remember that nothing is more powerful than a bull market that has been held back by lies, propaganda and manipulation. When it finally breaks loose from those shackles you can usually expect a real fireworks display.

Conversely if the manipulation is to the upside, as for stocks and bonds, "Look Out Below".     :icon_study:

Offline Jb

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Re: Gold & Silver News
« Reply #59 on: September 06, 2012, 08:53:11 AM »
Quote
In a desperate bid to save the U.S. dollar, Volcker increased the funds rate to an unprecedented 20% in mid 1981, pushing the prime interest rate to a usurious 21.5% by the middle of 1982. Finally, Volcker's radical intervention slowed the rate of CPI inflation and restored confidence in the U.S. dollar. It also brought the price of crude oil down and smashed the prices of gold and silver.

I was too busy playing high school soccer to pay any attention to this.

Quote
What was more important was that the prices of gold and crude oil tended to correlate. The implication of Gibson's Paradox was that interest rates could remain low as long as the price of gold did not rise

Ah, now I understand the need to manage the price.

Quote
The flaw was that the Federal Reserve had absolutely no control over the flow of increased liquidity resulting from its policies.

Yep, noticed that.

Quote
Setting aside flat to declining supplies of sweet light crude oil (Peak Oil), the fact that the price of gold has risen roughly 500% in a single decade suggests much higher oil prices in the future.

Ah, but now we come to Chris Nelder's 'Narrow Ledge'... Who will pay more than $147/b?

Quote
A successful invasion of Iran would eliminate the largest non U.S. dollar oil exporter, delaying the breakdown of the U.S. dollar's status as the world reserve currency. Although a war with Iran would cause a spike in oil prices, U.S. control of Iran's oil would increase the supply of oil available for purchase in U.S. dollars, which would bring the U.S. dollar price of oil down and enhance the ability of the U.S. to manage the price of oil to meet the needs of the U.S. economy.

According to this logic, gold would decline alongside the price of oil IF the regime were replaced through a negotiated cease fire or go back to selling oil for dollars, and the oil infrastructure remained undamaged. The process of shifting Iranian oil to US friendly markets could take longer than the US economy could survive on higher prices. And what will India, China and Russia have to say about this oil grab, hmmm? I don't think it's the Iranian response we're worried about.

In the meantime, it sounds to me like gold should move higher as interest rates around the world remain flat and central banks keep buying it.

Source: http://seekingalpha.com/article/499411-pending-iran-military-action-and-the-historical-effect-of-wars-on-the-u-s-dollar

 

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