GOLD

[warpig]

Dear Friends,

 

There are a lot of new and weak hands in gold. THAT MEANS VIOLENCE.

 

We had a high today of $1366 which in my world is a bulls eye for Angel $1369. That means the Angels are functioning like a good Swiss watch.

 

Don’t get a knot in your tights. The violence coming in gold has no peer.

 

From high to low you will see multi hundred dollar jumps in both directions before it reaches its fulcrum point.

 

Gold is going to and through $1650. That should be your mantra for financial survival now.

 

Respectfully,

Jim

 

[Eiji]

Still one of my favorite charts ! I reckon we're well below the 200 oz level in terms of Sterling priced gold. Heading in the right direction with today's house price news and gold's recent run up.

 

Yes, with nominal house prices dropping and house prices dropping against the value of gold, I'm sure the target area will be reached much quicker

[romans holiday]

Dear Friends,

 

There are a lot of new and weak hands in gold. THAT MEANS VIOLENCE.

 

We had a high today of $1366 which in my world is a bulls eye for Angel $1369. That means the Angels are functioning like a good Swiss watch.

 

Don’t get a knot in your tights. The violence coming in gold has no peer.

 

From high to low you will see multi hundred dollar jumps in both directions before it reaches its fulcrum point.

 

Gold is going to and through $1650. That should be your mantra for financial survival now.

 

Respectfully,

Jim

But we're not seeing this kind of violence. There's been quite a reduction in price volatility.... at least against the dollar.

 

If gold is being monetized, you'd expect it to settle down against the reserve currencies and steadily strengthen [along the thin blue line].... which it is doing.

 

Sinclair seems to have a view of gold where cosmic forces are at battle.... angels...mantras etc.

[Schaublin]

But we're not seeing this kind of violence. There's been quite a reduction in price volatility.

 

If gold is being monetized, you'd expect it to settle down against the other currencies and steadily strengthen [along the thin blue line].... which it is doing.

 

Sinclair seems to have a view of gold where csomic forces are at battle.... angels...mantras.

 

 

I agree with you on this - pictures of angels with magnets pulling the gold price up (notwithstanding the fact that gold is not attracted to magnets) is so err odd and kitsch that on the odd occasion I do check his site , I worry. A quick recap of public and private debt in the West, soon puts me back on track.

[azazel]

I agree with you on this - pictures of angels with magnets pulling the gold price up (notwithstanding the fact that gold is not attracted to magnets) is so err odd and kitsch that on the odd occasion I do check his site , I worry. A quick recap of public and private debt in the West, soon puts me back on track.

 

I dont think its meant to be scientifically accurate, just an illustration. You cant deny his track record though. I like his style and it sets him out as unique amongst all the other gold analysts.

[Errol]

But we're not seeing this kind of violence. There's been quite a reduction in price volatility.

 

He said the 'coming' violence i.e. the violence that hasn't started yet.

[Pixel8r]

I'd really like to see bullish confirmation with a pullback and retest of the ascending upper line of the rising wedge. It would also allow some "steam" to work off.

That looks like what is happening.

 

 

[warpig]

You're missing the main point, he hit his price target. 

 

The price of gold is manipulated, it always has been and I've seen nothing to suggest this has now mysteriously stopped. I think you're mistaking the recent lack of volatility as market participants simply buying the dips, even JT described this in the video above.

 

This is nothing more than a figure of speech, I don't think this really needs explaining.

 

But we're not seeing this kind of violence. There's been quite a reduction in price volatility.... at least against the dollar.

 

If gold is being monetized, you'd expect it to settle down against the reserve currencies and steadily strengthen [along the thin blue line].... which it is doing.

 

Sinclair seems to have a view of gold where cosmic forces are at battle.... angels...mantras etc.

[jinbal]

That looks like what is happening.

 

 

Well a move has started - too early to say how it'll play out

 

Also there is very little chart support until 1250-60 (the initial breakout) - where it is strong - I happen to think that if the bullish retest fails thats where we're going - I may nibble a bit there, but any larger buys would be when price approaches the 50EMA and more so whilst its between the 50 and 150

[Pixel8r]

Well a move has started - too early to say how it'll play out

 

Also there is very little chart support until 1250-60 (the initial breakout) - where it is strong - I happen to think that if the bullish retest fails thats where we're going - I may nibble a bit there, but any larger buys would be when price approaches the 50EMA and more so whilst its between the 50 and 150

I would like to see and am expecting is for gold to come down to the breakout line @ around $1327 and then take off. Here's a closeup of the graph above;

 

 

 

[romans holiday]

You're missing the main point, he hit his price target. 

 

The price of gold is manipulated, it always has been and I've seen nothing to suggest this has now mysteriously stopped. I think you're mistaking the recent lack of volatility as market participants simply buying the dips, even JT described this in the video above.

 

This is nothing more than a figure of speech, I don't think this really needs explaining.

My point is the price looks to be becoming less volatile not more. Sinclair has expected massive volatility... the type of which would take gold to his predicted price target of 1650 in January 2011..... 3 months away.

 

As far as manipulation goes, I apply Occam's razor and remain "agnostic" about this [unnecessary to multiply supposed entities].The assumption of manipulation/ repression of the price by TPTB is not necessary to explain why it is not so volatile to the upside as some expect [the explanation of manipulation always tends to follow on ad hoc after a promising spike peters out].

 

If gold is maturing as a currency here then it could be expected to do so in an orderly fashion. I'm content with 20% compounded.... but time will tell. Let's see where the price is in January next year..

[warpig]

I understand what you're saying, I just disagree with your conclusion and I think the mass volatility is yet to come. The volatility will result from the resistance by TPTB to accept gold as a contending currency, this is me applying Occam's razor...

 

My point is the price looks to be becoming less volatile not more. Sinclair has expected massive volatility... the type of which would take gold to his predicted price target of 1650 in January 2011..... 2 months away.

 

As far as manipulation goes, I apply Occam's razor and remain "agnostic" about this [unnecessary to multiply supposed entities].The assumption of manipulation/ repression of the price by TPTB is not necessary to explain why it is not so volatile to the upside as some expect [the explanation of manipulation always tends to follow on ad hoc after a promising spike peters out].

 

If gold is maturing as a currency here then it could be expected to do so in an orderly fashion. I'm content with 20% compounded.... but time will tell. Let's see where the price is in January next year..

[romans holiday]

The Exter Pyramid has been around for a while now - is it pre-71?....could it be that the strong USD cash component is now flawed because of the US situation with gold...?

Well, that was bizzare. On googling "John Exter's reverse liquidity triangle" to look for his interview, the first entry to come up was none other than:

 

http://www.greenenergyinvestors.com/index....mp;#entry175498

 

Found it:

 

http://the-moneychanger.com/articles_files...omy/exter.phtml

 

He thought of the reverse pyramid in the early sixties. Though the dollar was completely divorced from gold in '71, this didn't change his views on the triangle with regard to cash. The reason being, the dominant feature is debt. As the population moves out of debt instruments into forms of liquidity, those forms strengthen.

 

MONEYCHANGER Exactly. Because most people thinking about inflation back in the ‘70s were looking at the models of John Law or Revolutionary France or even Germany after WW I, they saw our inflation ending in a hyperinflation. You have steadily insisted that our inflation would end in a deflation & a debt collapse.

 

EXTER Yes, that’s very important. I’m sure the collapse that I’m talking about will start in the dollar. (My debt pyramids are always in single currencies: there’s a dollar debt pyramid, a deutsche Mark debt pyramid, a Yen pyramid, & so on.)

 

This will be a deflationary collapse rather than an inflationary blow-off because creditors in the debt pyramid will move down the pyramid [see pyramid chart -- Ed.] out of the most illiquid debtors at the top of the pyramid -- junk bonds, failing banks, S&Ls & insurance companies, Donald Trump, & Campeau. [Trump has survived until now, 1998, but Long Term Capital Management & other ailing hedge funds fit the same bill. – Ed.] Creditors will try to get out of those weak debtors & go down the debt pyramid, to the very bottom: currency (dollar bills), even though they pay no interest. Next above currency are Treasury bills, issued by the government & backed by the Federal Reserve, which supports the market through its open market operations. They are by far the largest component of Reserve Bank credit, so are really as safe as currency notes, plus they pay interest. Still, you can’t buy anything with Treasury bills; you have to liquidate the bills to get money of some sort to buy something. [The very flight to quality that we are seeing in 1998. – Ed.]

 

The higher debtors sit in the pyramid, the less liquid they are. At the top are all the least liquid debtors that I’ve already mentioned. This explains why we are headed for deflation. Creditors will move out of debtors high in the debt pyramid as many of those debtors fail through defaults & bankruptcies. That is very deflationary.

 

Given the free-floating nature of our currency system, I think Exter's triangle needs to be "internationalized". Rather than just having separate triangles for each country, all the currencies can be put into a super triangle. Reserve currencies would be in the tier above gold, major currencies above reserve ones, and commodity currencies in turn in the tier above that.

[G0ldfinger]

Goldman revised their EURUSD target From 1.38 To 1.55, typically they do that at times when the market reverses or is about to.

Exactly right.

 

I think the were forecasting $1.00 when the Euro was bottoming

 

My guess is that they have similar thoughts as Jim Sinclair:

 

http://jsmineset.com/2010/10/08/in-the-news-today-672/

23 states have made cease and desist orders on all foreclosures. There is a call for a national cease and desist order on all foreclosure.

If the order on all foreclosures goes national, all securitized debt on mortgages is therefore of questionable value as that would mean they cannot source the collateral.

 

Look out for G20 BS coming this weekend. Remember there is a huge difference between coordination and accord.

 

Be prepared for a comparison to the Plaza Agreement of 1985 and the MOPE coming out of G20 this weekend. There is zero chance that major currencies will coordinate, let alone 20 currencies.

That alone would (guesstimate) need gold at $4,000-$5,000 just to make the Fed's balance sheet whole for all the worthless MBSs they have there. Hence the USD weakness some people see coming. It's all politcal now, i.e. will the banks somehow get their way without Obama vetoing it?

[kkeegan123]

Here's an interesting auction on Ebay. Krugerrands are typically selling for around £880 - £920 at the moment, but the authenticity of the Krugerrand in this auction was questioned in the past.

 

http://cgi.ebay.co.uk/Krugerrand-/23053233...=item35accc5218

 

Worth a bid at this price? I'm tempted, if I could acquire it for less than £720.

[warpig]

No don't buy it, it looks as dud as they come.

 

Here's an interesting auction on Ebay. Krugerrands are typically selling for around £880 - £920 at the moment, but the authenticity of the Krugerrand in this auction was questioned in the past.

 

http://cgi.ebay.co.uk/Krugerrand-/23053233...=item35accc5218

 

Worth a bid at this price? I'm tempted, if I could acquire it for less than £720.

[stobar]

Here's an interesting auction on Ebay. Krugerrands are typically selling for around £880 - £920 at the moment, but the authenticity of the Krugerrand in this auction was questioned in the past.

 

http://cgi.ebay.co.uk/Krugerrand-/23053233...=item35accc5218

 

Worth a bid at this price? I'm tempted, if I could acquire it for less than £720.

 

Quite a simple solution to this one - Ask if you can return it if you take it to a dealer and they say it's not genuine...easy.

[warpig]

My son's got chocolate coins that look more authentic. Take a hint, it's been returned once and he says he doesn't want it returned again...

 

Quite a simple solution to this one - Ask if you can return it if you take it to a dealer and they say it's not genuine...easy.

[kkeegan123]

My son's got chocolate coins that look more authentic. Take a hint, it's been returned once and he says he doesn't want it returned again...

 

I love it, thanks guys. £675 now, think I'll save myself the hassle.

 

[Jake]

Exactly right.

 

I think the were forecasting $1.00 when the Euro was bottoming

 

 

My guess is that they have similar thoughts as Jim Sinclair:

 

http://jsmineset.com/2010/10/08/in-the-news-today-672/

 

That alone would (guesstimate) need gold at $4,000-$5,000 just to make the Fed's balance sheet whole for all the worthless MBSs they have there. Hence the USD weakness some people see coming. It's all politcal now, i.e. will the banks somehow get their way without Obama vetoing it?

Would not such a scenario bring down banks and be highly deflationary?-except for gold

[Errol]

 

[Eiji]

If there is one thing I ponder about gold it's that what if central banks decided to offload vast amounts of gold sometime in the future. Wouldn't that crash the gold price? Is there any reason why they wouldn't do this?

 

Your views would be appreciated.

[Jake]

If there is one thing I ponder about gold it's that what if central banks decided to offload vast amounts of gold sometime in the future. Wouldn't that crash the gold price? Is there any reason why they wouldn't do this?

 

Your views would be appreciated.

Yea, Brown tried that and sold half the UK's stock. Great idea. All our gold is probably in Moscow or Shanghai or Geneva now. Would it crash the price? Maybe. Would they do it? No way. It is the only hope of saving themselves in the future re-pricing of gold for debt.

 

I sometimes wonder why they just dont print shed loads of cash and go out and buy gold out of every nook and cranny. If I could, I would. It would be far better than a load of useless QEing buying useless debt promises.

 

This is probably why I am not an economist. (Though perhaps I should be.)

[romans holiday]

If there is one thing I ponder about gold it's that what if central banks decided to offload vast amounts of gold sometime in the future. Wouldn't that crash the gold price? Is there any reason why they wouldn't do this?

 

Your views would be appreciated.

Investors should be thinking like CBs are. To know what CBs are thinking, watch their actions not their words. They are buying gold [not selling it] because they know it will be the ultimate stabilizer of an increasingly unstable monetary system.

 

The nominal price is completely arbitrary... to the upside that is.

[Pixel8r]

Those who have been reading my posts over the last few years will remember this graph. Gold/GBP still seems to be fitting this exponential curve on a log graph!