Doomstead Diner Menu => Economics => Topic started by: Eddie on September 18, 2015, 08:36:03 AM

Title: A Typical Article From the Bullion Sellers
Post by: Eddie on September 18, 2015, 08:36:03 AM
Have you noticed that people who want to sell you something almost always have a bullish outlook on what they're selling, whether it's rational or not?

The Federal Reserve kept interest rates unchanged yesterday due to increasing concerns about the global economy and financial market volatility. The sluggish U.S. economy may also have played a role in the decision but this was not signaled.

In what amounted to a somewhat embarrassing volte face, Yellen said developments in a tightly linked global economy had in effect forced the U.S. central bank’s hand. “The outlook abroad appears to have become less certain,” Yellen understatedly told a news conference as gold prices ticked higher.

Yellen was more dovish than expected which is bullish for gold and suggests that the long awaited for bottom for gold may have occurred in early August prior to recent market volatility.

The longer interest rates stay at these record low levels, the better for gold. (

I see no logical basis for, nor has the author of this bullish bullshit article made any cogent argument for gold being affected one way or the other by continued ZIRP. 

Simply put....if the equites markets tank, gold goes down due to selling by big players needing to meet margin calls. And I think it will take more real stimulus than what Yellen is currently employing to keep the stock bubble inflated.

I say beware of Irishmen who say they have gold to sell you. They might be leprechauns.
Title: Re: A Typical Article From the Bullion Sellers
Post by: Eddie on September 21, 2015, 05:23:57 PM
Articles like this litter the information superhighway. (

Some pearls:

As you can see from the graph to the left, the Elliot Wave cycle theory is predicting a big move higher for gold (and silver, of course).

Of course. (Note for beginners. If Elliot Wave proves it must go up, then consider a short position.)


Furthermore, as a reliable contrarian indicator, the market sentiment toward gold is at one of its lowest levels in the last decade:

And sentiment has gotten steadily worse for four years...because gold has been going steadily down for four years. If gold goes down another $100 bucks, it'll be even lower.


I really think there’s a serious problem in the supply of physical silver. The mint announced another 20% allocation cut-back two days ago. This is NOT a refinery supply issue – this is a raw material supply issue.  And this is another fundamental supply/demand variable that could launch the precious metals into orbit, especially given the potential for igniting a short-squeeze in the paper bullion markets.

Hmm. I read another article today that thinks the opposite. That small time silver hoarders are driving the market for coins and small bars, which are flying off the shelves...but not so large bars, the kind used by industry.

Just another fine example of how easy it is to find an article that tells you...what? BUY NOW!