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We are heading for financial collapse

gold and silver will be the last man standing

the price is collapsing because the cabal are trying to scare you away from owning it

they want it all for themselves

physical demand is increasing in correlation with the price dropping

throw your charts away switch off CNBC and keep stacking while you still can

 

gold is the currency of kings silver is the currency of gentlemen barter is the currency of peasants

debt is the currency of slaves and paper is the currency of fools

which one are you ?

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We are heading for financial collapse

gold and silver will be the last man standing

the price is collapsing because the cabal are trying to scare you away from owning it

they want it all for themselves

physical demand is increasing in correlation with the price dropping

throw your charts away switch off CNBC and keep stacking while you still can

 

gold is the currency of kings silver is the currency of gentlemen barter is the currency of peasants

debt is the currency of slaves and paper is the currency of fools

which one are you ?

 

Yeah but you are preaching to the converted here i think :)

 

In the late 70's gold retraced 50%, so anything is possible in the next few months.

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Campbell:

"Gold targets $1250, and will accelerate to get there..."

That's a similar opinion to my Hedge Fund friends, B-and-E*.

I this I may show him Campbell's chart, and ask for an opinion.

 

Personally, I still think it can hold $1450, and think this selloff was "engineered" by Goldman Sachs.

== ==

 

*per recent email:

"Gold support broken, more declines expected. Target $1200-1300/oz."

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Assault On Gold Update — Paul Craig Roberts

 

April 13, 2013 |

NOTE: Readers point out that gold weights are based on metric tons and Troy ounces. 500 metric tons of gold would be 16,075,000 troy ounces. This changes the arithmetic slightly but not the point

 

I was the first to point out that the Federal Reserve was rigging all markets, not merely bond prices and interest rates, and that the Fed is rigging the bullion market in order to protect the US dollar’s exchange value, which is threatened by the Fed’s quantitative easing. With the Fed adding to the supply of dollars faster than the demand for dollars is increasing, the price or exchange value of the dollar is set up to fall.

A fall in the dollar’s exchange rate would push up import prices and, thereby, domestic inflation, and the Fed would lose control over interest rates. The bond market would collapse and with it the values of debt-related derivatives on the “banks too big too fail” balance sheets. The financial system would be in turmoil, and panic would reign.

 

Rapidly rising bullion prices were an indication of loss of confidence in the dollar and were signaling a drop in the dollar’s exchange rate. The Fed used naked shorts in the paper gold market to offset the price effect of a rising demand for bullion possession. Short sales that drive down the price trigger stop-loss orders that automatically lead to individual sales of bullion holdings once their loss limits are reached.

 

According to Andrew Maguire, on Friday, April 12, the Fed’s agents hit the market with 500 tons of naked shorts. Normally, a short is when an investor thinks the price of a stock or commodity is going to fall. He wants to sell the item in advance of the fall, pocket the money, and then buy the item back after it falls in price, thus making money on the short sale. If he doesn’t have the item, he borrows it from someone who does, putting up cash collateral equal to the current market price. Then he sells the item, waits for it to fall in price, buys it back at the lower price and returns it to the owner who returns his collateral. If enough shorts are sold, the result can be to drive down the market price.

 

A naked short is when the short seller does not have or borrow the item that he shorts, but sells shorts regardless. In the paper gold market, the participants are betting on gold prices and are content with the monetary payment. Therefore, generally, as participants are not interested in taking delivery of the gold, naked shorts do not need to be covered with the physical metal.

In other words, with naked shorts, no physical metal is actually sold...

. . .

Who has 16 million ounces of gold? At the beginning gold price that day of about $1,550, that comes to $24,800,000,000. Who has that kind of money?

What happens when 500 tons of gold sales are dumped on the market at one time or on one day? Correct, it drives the price down. Investors who want to get out of large positions would spread sales out over time so as not to lower their sales proceeds. The sale took gold down by about $73 per ounce. That means the seller or sellers "lost" up to $73 dollars 16 million times, or $1,168,000,000. (DrB: Nope. If you are short gold, you make a profit on a drop.)

 

Who can afford to lose that kind of money? Only a central bank that can print it.

===

/more: http://www.paulcraig...-craig-roberts/

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Published on 12 Apr 2013

David covers the reasons behind the major pullback in metals on April 12 and where they may go from here.

 

Gold : Cyclical Bear in a Secular Bull

 

"Stay the course," says Macalvany

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there really can't be many 'weak hands' left to sell now.

What's happening here is either blatant shorting or forced liquidation (japan?!)

I'm staying the course, I don't care if it goes down another $1000. There won't be any phys available at all if that does happen! I imagine all the miners will go and get jobs selling treasuries on Wall St.

 

Edit: I remember feeling this kind of emotion in 2008, I think, when Puplava bouht "a ton" of silver at $12, but it took like 8 months to get delivery because you could not easily get physical metal due to the price dump engineered by the paper boys.

Let's go to a cash market, eh? No margin. Then we'll see true price discovery.

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So based on this I would be looking for gold to move down to $1430 and then be met with solid support.

 

 

Gold Futures (June)

gold_zps60a45805.png

 

Gold sold off further early this morning, with a very brief dip down to $1422 for a 5 min period. I've highlighted the $1432 level. So far volume by 9am today has been equal to an average days trade in the gold futures market. I would really have wanted to see much higher volume on that second move down to $1432....

 

 

 

The lowest trendline represents 3 standard deviations from the mean and is currently at $1432, so if gold were at that level today it would be 3 standard deviations from the average price over the last 5 years.

 

Referencing the above gold spiked through the lower 3 standard deviations line during it's move down to $1422. Measured this way we have seen an extreme in price.

 

gold3sd_zps875c425d.png

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Gold Futures (June)

Referencing the above gold spiked through the lower 3 standard deviations line during it's move down to $1422. Measured this way we have seen an extreme in price.

 

gold3sd_zps875c425d.png

Interesting - same "extreme" as at the top?

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I'm off to the beach today. What will happen will happen; my precious is still mine and I am not concerned by the paper games.

Let's see what dealer is willing to sell coins at $1396... lol.

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£917/oz? seriously? and silver at £15.50? wow.

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Looks like I was wrong about the $1430 level being significant.

 

The low so far, was something like $1388.

But it may finish the day above your target, or not...

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Gold futures;

gc3_zps1887cdb7.png

 

Looking at this my first though was, "Paulson's dead"

 

So far this move - the drop on friday and the drop today...

 

gc1_zps583dc799.png

 

...is very similar to the move that also happened across a weekend, back on 23 - 26th September 2011. On friday 23rd September 2011 Gold opened at 1739, sold off heavily, then sold off even more heavily on monday 26th September, trading as low as 1535 before rebounding sharply higher. That was a two day drop of $204 whereas across the 2 days this time it's been as much as $175.

 

gc2_zpsaaa66172.png

 

 

 

 

Very strong volume coming in now for gold;

 

Intraday showing what looks like a V bottom;

 

Vbottom_zps18f4264e.png

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Nice chart, PD !

Indeed : a possible "V" bottom today - as I said on the DrB Diary:

 

GOLD DOWN to $1388 in early London trading

 

Looks like some big stops got hit (on the opening), and the Buyers are now coming back in, after letting it plunge

 

It's just below $1430 now - Can we get back to $1450 today?

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The target bottom would be the same distance as the previous trading range. Marked in red - this is an old chart from February but illustrates the point.

 

desk.PNG

$1200-$1300 area.

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NOPE !

Too much selling - all across the board so far

 

Everything is being HIT in the commodities sector, within New York Trading

====

GLD- : $134.53: - $9.42 / - 6.54%

UGLD: $ 22.90 : - $5.62 / -19.71%

GDX- : $ 29.60 : - $2.62 / - 8.13%

GDXJ : $ 12.61 : - $1.38 / - 9.86%

CDNX : $976.52: - 46.09 / - 4.15%

CU--- : $ 23.60 : - $1.63 / - 6.45%

DBA- : $ 25.62 : - $0.33 / - 1.27%

SPX- : 1580.28 : - $8.57 / - 0.54%

====

 

Do be careful !

Wait for some strength to some up somewhere during NY trading

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[This move]...is very similar to the move that also happened across a weekend, back on 23 - 26th September 2011. On friday 23rd September 2011 Gold opened at 1739, sold off heavily, then sold off even more heavily on monday 26th September, trading as low as 1535 before rebounding sharply higher. That was a two day drop of $204 whereas across the 2 days this time it's been as much as $175.

 

 

Well it's now $205 down from the open on friday to the lowest point so far today.

 

Monster volume so far 512,000 GCM3 (June) contracts traded. This is the highest volume of trade in one day in the history of the gold futures market and we are only part of the way through the day.....

 

GC4_zpsb522f1bc.png

 

 

I think when all is said and done we may hear news about the wipe out of a hedge fund or two.

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Regardless of fundamentals, this is a falling knife at the moment.. and needs to treated as such.

 

Yep couldn't agree more wait till it sticks in the ground!!!

 

Though I don't think the price will be down there for long !!

 

Regards

 

ML

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