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The shorts will be forced to cover in a rising market today, which should mean some spikes up as they do.

So today they didn't actually bother covering and were determined to keep the price from rising still. Which means they have had to sell even more paper forward. I think this means in the days to come the price is really going to exploding to the upside and we will be hearing of continued failed deliveries and shortages.

 

 

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Pluto,

1. Do you think we are seeing an Oriental strategy at work here - to break the shorts?

2. If a lot of short positions have to be covered tomorrow, what effect on price when they have to buy back in? 1200?

 

I have no idea what the orientals are doing or thinking. What we are seeing is the Anglos lose control of the price of gold. That is, the game of shorting gold with paper money is coming to an end. Folk worldwide want delivery of their metals - and not settling for paper promises anymore. Sooner or later the fools gold play will also come to an end.

 

The shorts are accumulating losses in paper money - which is manageable in a fiat system. As soon they are required to settle positions in actual metals, then they squeal like pigs in a slaughter house.

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Just to show I don't always post bullish news, laughable though I think.

 

SAN FRANCISCO (MarketWatch) -- Gold futures will fall below $1,000 an ounce by year-end and fall as low as $800 an ounce next year, said U.K. forecasting firm Capital Economics Monday.

 

Gold to fall under $1,000 by year-end: forecaster

 

Of course, the fool who runs this outfit is a self proclaimed Keynes lover.

 

Roger Bootle is managing director of Capital Economics and economic adviser to Deloitte. You can contact him at roger.bootle@capitaleconomics.com

 

http://www.telegraph.co.uk/finance/comment...-solutions.html

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Can someone please check on John Reade's gold price predicting skills? It's because I have some doubts that he is a 'gold star'.

This from GATA on Reade;

 

John Reade has not been that spot on regarding the price of gold over the years at all and has been at odds with GATA, another one who publicly lashed out at us. The GATA group which went to London in May was supposed to hook up with him, but he couldn't make it at the last minute.

 

 

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China, Russia to build up gold reserves

2009-11-23 06:02:56

 

A prominent official at ETF Securities says the value of making a gold investment is being underlined by the ever-increasing rate of central-bank buying at present.

 

The Reserve Bank of India announced recently that it is set to purchase 200 tonnes of the yellow metal from the International Monetary Fund amid the US dollar's current struggles.

 

Nigel Phelan, the Australia and New Zealand director at the futures firm, has explained that other banks will follow suit as fears persist over the future of the greenback, which shares an inverse relationship with gold.

 

"Many market participants view this purchase as just the tip of the iceberg, with China, Russia and other central banks also indicating their intention to build up gold holdings as part of their strategy to diversify away from the US dollar," he told the news provider....

 

 

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I have no idea what the orientals are doing or thinking. What we are seeing is the Anglos lose control of the price of gold. That is, the game of shorting gold with paper money is coming to an end. Folk worldwide want delivery of their metals - and not settling for paper promises anymore. Sooner or later the fools gold play will also come to an end.

 

The shorts are accumulating losses in paper money - which is manageable in a fiat system. As soon they are required to settle positions in actual metals, then they squeal like pigs in a slaughter house.

 

 

Ok. Thank you for replying.

 

 

I recall that recently, there was an alleged incident where someone was offered a 25 percent premium not to take delivery (cannot recall the source). This led me to the following train of thought:

 

While it is still possible to buy physical bullion and the price of this bullion is related to the spot price, everything seems ok. I do not know the volume of the sales to the public - perhaps they are too small to matter but at some point must come a widening of the price between physical and spot - which will occur as a result of wholesalers becoming nervous about their ability to restock physical at a similar price (or at all!) in the future. I wonder if this widening of price between paper-gold and gold will trigger a vicious price-spiral which would ultimately lead to a 'bank run' on bullion.

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Ok. Thank you for replying.

 

 

I recall that recently, there was an alleged incident where someone was offered a 25 percent premium not to take delivery (cannot recall the source). This led me to the following train of thought:

 

While it is still possible to buy physical bullion and the price of this bullion is related to the spot price, everything seems ok. I do not know the volume of the sales to the public - perhaps they are too small to matter but at some point must come a widening of the price between physical and spot - which will occur as a result of wholesalers becoming nervous about their ability to restock physical at a similar price (or at all!) in the future. I wonder if this widening of price between paper-gold and gold will trigger a vicious price-spiral which would ultimately lead to a 'bank run' on bullion.

 

It was JP Morgan and Deutsche Bank who were counterparties on the gold trade were they weren't able to produce the metals to settle a short trade. The Bank of England had to rush to aid of the banksters. Of course the bullion the Bank of England produced was shoddy and not to the standards of the LBMA (what a surprise), so a 25% premium was offered over spot to settle in paper money. You see, they can keep playing the fools gold game as long as you stay in the paper system. As soon you demand settlement in metals the rats go scurrying for cover.

 

Sooner or later there is going to be a "failed to deliver" and then we shall see who is really swimming with no trunks on.

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It was JP Morgan and Deutsche Bank who were counterparties on the gold trade were they weren't able to produce the metals to settle a short trade. The Bank of England had to rush to aid of the banksters. Of course the bullion the Bank of England produced was shoddy and not to the standards of the LBMA (what a surprise), so a 25% premium was offered over spot to settle in paper money. You see, they can keep playing the fools gold game as long as you stay in the paper system. As soon you demand settlement in metals the rats go scurrying for cover.

 

Sooner or later there is going to be a "failed to deliver" and then we shall see who is really swimming with no trunks on.

Yes they can also short enlessly with inpunity - what does it matter to them, its only fiat they can print up at their choosing. Thompson said something along the lines of the banksters win either way: accumulate metals on the way down and short on the way up. Pure evil, if you ask me.

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A pullback in Gold from a high this week could lead to a buying opportunity in Dec. or January

 

Weekly Gold ... update

goldw.gif

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eurl.gif

 

See: http://www.Tinyurl.com/EuroFalls

 

If you read the postings, you will see how what might be a great call was ignored and sometimes rubbished

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See: http://www.Tinyurl.com/EuroFalls

 

If you read the postings, you will see how what might be a great call was ignored and sometimes rubbished

Link doesn't work. It seemed quite a plausible call to me.

Error: Unable to find site's URL to redirect to.

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A pullback in Gold from a high this week could lead to a buying opportunity in Dec. or January

Would that mean that Sinclair's $1224 will be reached first?

 

Hochberg from EWI predicted gold at $6xx on FSN last weekend. We should keep track of this to see in a year or so whether these guys are geniuses or complete nutters who totally ignore fundamentals.

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Would that mean that Sinclair's $1224 will be reached first?

 

Hochberg from EWI predicted gold at $6xx on FSN last weekend. We should keep track of this to see in a year or so whether these guys are geniuses or complete nutters who totally ignore fundamentals.

The EWI crew are all nutters that have completely missed this very obvious bull run all the way through it. They may be able to work things out in a normal market with their wave theory, but it appears to fall apart when the deal with unusual situations. They have been making calls for $600 gold and $15 oil recently, which is dream world stuff IMO.

 

 

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Would that mean that Sinclair's $1224 will be reached first?

 

Hochberg from EWI predicted gold at $6xx on FSN last weekend. We should keep track of this to see in a year or so whether these guys are geniuses or complete nutters who totally ignore fundamentals.

Trouble is "fundamentals" can mean different things to different people. You have the fundamentals of gold. Then you can have the "fundamentals" of the market, where perceptions and market behaviour rules. Add to those the "fundamentals" of finance, where credit/ leverage can expand and then turn on a dime to contract.

 

Perhaps a truer picture would be found in a "triangulation" of the three, which would also paint a less bleak picture than a possible fall to the 600 handle.

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Another record high in Sterling and no-one got anything to say?

 

How about discussing an exit strategy and the next asset class to purchase with gains from gold?

 

Or will gold reach a permanently high plateau?...

 

My take is that we are now well into the press interest stage of the launch and that public interest stage is just about to ignite. Cue more rocket pics.

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Another record high in Sterling and no-one got anything to say?

 

How about discussing an exit strategy and the next asset class to purchase with gains from gold?

 

Or will gold reach a permanently high plateau?...

 

My take is that we are now well into the press interest stage of the launch and that public interest stage is just about to ignite. Cue more rocket pics.

 

way too soon imo

 

I think you' ll find most of us will be hanging on to our gold for a lot longer

 

are you strapped in and ready for the ride or do you want to get off ?

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A pullback in Gold from a high this week could lead to a buying opportunity in Dec. or January

 

I'm going to sit and wait for my next (big-ish) purchase. I've got the dry powder for more but can't bring myself to buy at the moment into this strength.

 

I've a large core position, so I am 'on the boat' before it sailed. I just would like to get a few recently-acquired items of luggage on board before the coast is out of sight. :)

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If there is a short squeeze in gold this week, how far do we think it would rise, or would everything possible be thrown at its containment / masking the symptoms.

 

Interested in what people's selling strategy would be if this happens - clearly such a price spike would be short-lived so timing a selling to look in profits to immediately reinvest when the squeeze subsides would have value.

 

Thoughts?

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A pullback in Gold from a high this week could lead to a buying opportunity in Dec. or January

 

Weekly Gold ... update

goldw.gif

Is this a sign that you that you now think we are on a breakout surge. Your graph above seems to say we are now doing similar to the 2007 breakout.

 

Can I take it that you now agree with my original posting back in September?

 

Is there anything which looks negative about this chart, why all the gold bears holding out for a deflationary discount.

 

It looks to me that we have just broken through the resistance and are now moving into the next stage. Resistance becomes the new floor, which is on an angle not flat. I doubt very much we will see $900 again.

 

Gentlemen start your engines, $1350 here we come.

 

Gold_USD.jpg

 

More recent version;

 

Pixel8rs-Lines-5.jpg

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way too soon imo

 

I think you' ll find most of us will be hanging on to our gold for a lot longer

 

are you strapped in and ready for the ride or do you want to get off ?

 

I'm definitely expecting to pass out with the g-forces. But I'm planning to dock with the satellite and stay in orbit, not return to Earth...

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I'm definitely expecting to pass out with the g-forces. But I'm planning to dock with the satellite and stay in orbit, not return to Earth...

 

there WILL come a time when it will make sense to swap some gold for other assets (property?) but that time is not on the horizon (see Goldfinger's Gold versus Property chart)

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Another record high in Sterling and no-one got anything to say?

 

How about discussing an exit strategy and the next asset class to purchase with gains from gold?

 

Or will gold reach a permanently high plateau?...

 

My take is that we are now well into the press interest stage of the launch and that public interest stage is just about to ignite. Cue more rocket pics.

Yes, it will if currencies are pegged to gold in the end. I wouldn't worry too much about gold getting in a bubble... or looking for an "exit".

 

That's not to say it couldn't get a bit "frothy" in the short term. If gold shows its characteristic volatility to the downside as well

as the upside, many chasing gold up here could also be soon selling.

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I'm going to sit and wait for my next (big-ish) purchase. I've got the dry powder for more but can't bring myself to buy at the moment into this strength.

 

I've a large core position, so I am 'on the boat' before it sailed. I just would like to get a few recently-acquired items of luggage on board before the coast is out of sight. :)

Me 2.

 

Careful your boat isn't overloaded. If it capsizes, don't try to salvage your gold, it will take you straight to the bottom. :lol:

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there WILL come a time when it will make sense to swap some gold for other assets (property?) but that time is not on the horizon (see Goldfinger's Gold versus Property chart)

The ratio's are something near everyone bullish on gold can agree on.

 

That said, it may make sense to keep some liquidity for quite some extended period of time in the future. After purchasing some property, you will still most probably be left with the question of which currency to remain liquid in. I think gold will remain that currency for quite some time... all this talk about an "exit" mystifies me.... as if gold could get in a bubble.

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