What's CNBC's Problem with Gold? 38 comments
-
Font Size:
-
Print
- TweetThis
CNBC seems to have a problem with people who want to own gold, which is a valid investment as a hedge against inflation and a lower dollar. I cannot remember how many times I have heard the commentators rip gold apart and question why it hasn’t crossed $1,000 an ounce yet.
Listen, I know their deal is stocks and not commodities, but they have to lay off gold or better understand how gold works. I am in the camp that does believe that gold is held down by certain banks, the evidence is pretty solid. Every time we see gold rally to this point, on a weaker and weaker dollar, it cannot break and hold the $1,000 mark.
I do not think it is coincidence, I believe GATA when they say that banks push it down. Even the Gartman Report says, on fast money about a month ago, it is strange that at $980 an ounce someone comes out of nowhere and pushes it down. I do not know if I buy all the conspiracy behind what GATA claims is at work, but I believe that there is some type of manipulation.
However, it does not excuse CNBC constantly talking gold down. Gold was one of the only positive investments this year until July and the market rally. Should the price of gold be higher? Absolutely, based on where the metal was trading a month ago and the 3% depreciation of the dollar, but I digress.
I would like to see gold lower before I bought more, my average is in the $880 mark, but even at these prices, if you are thinking long-term, it is still cheap on a relative basis. However, silver probably offers more bang for the buck and there is not as much of it left as one would think. It is a personal preference, but there should be no reason to not buy the yellow metal.
Related Articles
|
-
The Seeking Alpha 100
See allThe top 100 stock
market authors
selected for publication
Seeking Alpha 100 » -
Fastest Climbers
Authors with the largestSee all
increase in followers
in the last 7 days
Fastest Climbers » -
Top Commenters
Top commenters,See all
as ranked by their peers
Top Commenters » -
Top Instabloggers
The 100 most active
Instabloggers.-
1
David Fry
-
2
TraderMark
-
3
Don Dion
-
4
Cliff Wachtel
-
5
Mike Havrilla
Top Instabloggers » -
1
-
Top StockTalkers
Top
StockTalkers.-
1
David Fry
-
2
Cliff Wachtel
-
3
Mike Havrilla
-
4
David White
-
5
Hedged In
Top StockTalkers » -
1
This article has 38 comments:
I would worry if CNBC suddenly becomes wildly bullish on gold and start featuring a gold-stock IPO a day...
TM
And it's a no-brainer why their masters are anti-gold, as in "DOH!!"...they control the printing press. They control the money supply or are first on the food chain to receive "new money." (To call it printing is now an anachronism as we're essentially dealing with electrons in the ether, created with a few keystrokes and placed in the hands of the club members.) And as Nathaniel Mayer (Bauer) Rothschild quipped in the early 1800s: (and I probably paraphrase) "I care not a whit what puppet they put on the throne of England, on the throne of the kingdom on which the sun never sets, whoever controls the money supply controls the throne, and I control the money supply." He controlled the Bank of England, and the Fed is simply one of the demon spawn of the Bank of England.
Gold is the canary in the coalmine that warns of the degradation, the devaluation, the inflating of the paper currency (note, I did not say "money"...gold and silver are money...the FRN "dollar" is simply currency...backed by...well, if you don't know what its backed by, you can't possibly understand this article or my comment)--the higher the price of gold, the more the devaluation of the paper currency becomes obvious. So suppression of the price of gold (and its poorer cousin silver) is necessary for TPTB to be able to continue to tout their "strong dollar" policy...which is simply a bold faced lie, nothing more, nothing less.
And the ridiculously low price of gold (compared to new currency created, esp. FRNs) is what they have used to justify low interest rates (Gibson's Paradox--just ask Larry Summers about that) and the lies from the BLS (Bureau of Lying Statistics) about our rate of inflation (which of course for anyone with half a background in real economics is NOT about prices, but about expansion of the money supply, which will in the end bring about all kinds of price inflation while in the meantime leading to gross misappropriation of capital).
And I could go on, but again, the bottom line is exactly as stated by our ManAboutDallas...he ain't really MAD at all...but right on the money...so to speak '-) jt
Thanks, i will add that one to my LOL list.
On Aug 04 09:27 AM Danny Furman wrote:
> stocks were cheap and now they're not. looks like gold's turn to
> me.
"Delivery of futures is allowed in ...GLD or SLV."
On Aug 04 09:02 AM Menock wrote:
> You don't own gold and silver, you own paper. Delivery of futures
> contracts in gold and silver is allowed in bullion or GLD and SLV.
> Zerohedge.com just published how bogus the claim is that the ETFs
> back the security with bullion. Recent data on clearly fraudulent
> or grossly negligent inventory falsehoods in SLV show that this is
> how the banks, JPM is custodian of SLV, and CEO Jamie Dimon is on
> the board of the NY Federal Reserve, are soaking up demand for the
> metals while holding the price down. Sell GLD, SLV. Buy gold, silver,
> or the miners. I don't know if this is the next Enron in scale, but
> it is no different.
>
> TM
-Alan Greenspan
"Delivery of futures is allowed in ...GLD or SLV."
Go to cftc.gov, type gold etf in search bar, read the top hit.
That is from the horse's mouth. Or the horses asses.
Just like the idiot politicians, these guys agree with JM Keynes that the way out of a recession is for the government to pay people to dig holes and then pay them a second time to fill them back up.
If we have a precious metals bubble, which I believe is going to happen a couple years down the road, CNBC will jump on the bandwagon at some point. Yes that will be a sign that you are getting to the latter stages of the bubble.
pdf warning:
www.cftc.gov/files/sub...
On Aug 04 12:04 PM SW Richmond wrote:
> NYMEX changes rules to allow futures to be settled in shares of ETF:
>
>
> pdf warning:
>
> www.cftc.gov/files/sub...
NYMEX is NOT allowing ETF shares to be used to settle futures contracts. The exchange is allowing them to be used to qualify as EFP (exchange for physical) or as NYMEX now calls them, EFS
(exchange for swap) transactions. If you don't understand the workings of an EFS transaction, please read the NYMEX rule book, but there is NOTHING, I repeat, NOTHING, that allows other than physical gold to be delivered against a COMEX gold contract.
See COMEX rule 113.02:
"...delivery shall consist exclusively of..either one (1) 100 troy ounce bar or three (3) one (1) kilo bars."
End of story..plain and simple.
Please understand the workings of an EFS before you state futures can be settled with ETF shares.
On Aug 04 12:04 PM SW Richmond wrote:
> NYMEX changes rules to allow futures to be settled in shares of ETF:
>
>
> pdf warning:
>
> www.cftc.gov/files/sub...
On Aug 04 09:02 AM Menock wrote:
> You don't own gold and silver, you own paper. Delivery of futures
> contracts in gold and silver is allowed in bullion or GLD and SLV.
> Zerohedge.com just published how bogus the claim is that the ETFs
> back the security with bullion. Recent data on clearly fraudulent
> or grossly negligent inventory falsehoods in SLV show that this is
> how the banks, JPM is custodian of SLV, and CEO Jamie Dimon is on
> the board of the NY Federal Reserve, are soaking up demand for the
> metals while holding the price down. Sell GLD, SLV. Buy gold, silver,
> or the miners. I don't know if this is the next Enron in scale, but
> it is no different.
>
> TM
Thanks for your reply. My answer to your post will take the form of an article explaining how EFP transactions might contribute to manipulation of prices. Can these transactions take place at any price agreed to by two parties? Can, as is possible in Canada, the two parties can be different divisions of the same entity? Now, for extra points, who runs SLV and GLD, and what are their respective derivative positions in the precious metals?
From an earlier SA article:
seekingalpha.com/artic...
"Let’s begin with the obvious. Is it not a huge conflict of interest that JP Morgan (JPM), a bank that perpetually ranks among the largest short positions against silver on the COMEX, is the custodian for the iShares Silver Trust (SLV)? According to silver analyst Ted Butler, JP Morgan is consistently among the one or two U.S. banks that hold more than 80% to 90% of the entire commercial net short position in COMEX silver futures. If you have positioned yourself to make huge profits from drops in the price of silver, is it reasonable for you to simultaneously desire investors to buy more physical silver (if indeed the SLV holds the amount of physical silver it claims)?
Is it also not a conflict of interest that HSBC (HBC) bank, a bank that allegedly holds some of the largest short positions against gold on the COMEX, is the custodian for the SPDR Gold Trust (GLD)?"
How hard will it be to connect these dots? Is it possible that JPM enters EFPs at whatever prices it wants either with cooperative counterparties or with itself, and then settles them, with (new) shares of its very own SLV? Does this provide a mechanism for perpetual reselling of exchange silver? At first glance, all that is required is to have an EFP backed by physical at entry.
Why is it that all the major depositories of physical silver and gold (NYFed, Fort Knox, SLV, GLD) seem to so badly need to be audited?
On Aug 04 09:36 AM Maxe Paul wrote:
> Wow, now it's CNBC's fault gold is not going up, along with the "conspiracy",
> the "manipulation" and the "banks".
>
> Thanks, i will add that one to my LOL list.
The very point of identifying a transaction as an EFP is to AVOID use of the transaction as possible manipulation. If the prices of EFP transactions were allowed to enter the normal data stream and appear on your screen as live, real time competitive market transactions, then manipulation, and limit price violations and all kinds of nasty things are possible. That's why EFPs are outside normal transactions. They are by definition hedge transactions and are identified as such to the exchange.
You and I may disagree on whether the large bullion banks are party to some huge market manipulation...my 35 years in the precious metals business tells me they are not....but the function of EFPs and EFSs are a legitimate part of the physical and futures markets and NYMEX is not allowing anything other than physical metal as settlement of a spot month contract.
From a financial theory point of view, GDX is a much better play long term because it's a true investment in production and not just speculation in an asset price.
Also would like to know what's the best way to play agribusiness/soft commodities as I think they are also gonna shoot up higher if and when inflation figures come in higher than expectation.
Shouting on the Midway he's selling Sarah Palin. Only after you change good money for a ticket you enter the tent and behold Roseanne Barr!!.
The market represents stock in Co's, 92% of which will go belly up
in the next few years. If you can't see that yet, you need another good dose of Obama, catch him tonight any network any time!.
Buying ETFs (gold and silver) are the height of stupidity, plain and simple. Getting a piece of paper for your money that says you have gold and silver waiting for you when you want it. Yeah, right! Why not just buy the physical stuff and be done with it? Too complicated, huh?
And kohalakid, for crissakes, will you get a life! You are one arrogant, pain in the ass! Is there NOTHING that one can provide you in facts that you will accept? Are you Freya in drag?
If you want to have an opinion, I have absolutely no problem with that. In fact, as a market maker, people with different opinions have been paying my bills for over 30 years, so I love different opinions.
Just don't represent opinion as fact.
Leave that to Obama.
If you want to have an opinion
On Aug 04 03:44 PM 5142152-337 wrote:
> The CNBC collective is nothing more than media/finance whores! They
> tell viewers what THEY want you to know. Those stupid enough to
> hang on their every whim are what they are: sheeple.
>
> Buying ETFs (gold and silver) are the height of stupidity, plain
> and simple. Getting a piece of paper for your money that says you
> have gold and silver waiting for you when you want it. Yeah, right!
> Why not just buy the physical stuff and be done with it? Too complicated,
> huh?
>
> And kohalakid, for crissakes, will you get a life! You are one arrogant,
> pain in the ass! Is there NOTHING that one can provide you in facts
> that you will accept? Are you Freya in drag?
Yeah, very unlikely that CNBC would ever recommend gold at any point. If they ever do, sell every bit of it you can, since that will be a huge sell signal.
It is a sad state of affairs when a stinking lump of ore can beat the pants off of the US Stock Market. Got gold?
On another related thought, think about the "output gap" we keep hearing about which is supposed to guarantee that prices will not rise for years. If fewer goods and services are being produced, due to the output gap/idle capacity, but more dollars are being produced, this will be inflationary since there will be more dollars in circulation eventully but fewer goods and services to purchase.
All resources are scarce, except currencies that can be printed or created digitally.
On Aug 04 09:21 AM jt wrote:
> Yes...it is disgustingly simple--the mainstream media (seekingalpha.com/symbo...),
> including CNBC et al, is bought and paid for and controlled through
> desks in DC and NY all belonging to the Bankster Elite family (actually
> it is controlled almost in toto by 6 persons). It is now for US citizens
> what Pravda was for our Russian peasant comrades in the last century...pure
> propaganda...pabulum for the masses..."gentle" brainwashing.
>
> And it's a no-brainer why their masters are anti-gold, as in "DOH!!"...they
> control the printing press. They control the money supply or are
> first on the food chain to receive "new money." (To call it printing
> is now an anachronism as we're essentially dealing with electrons
> in the ether, created with a few keystrokes and placed in the hands
> of the club members.) And as Nathaniel Mayer (Bauer) Rothschild quipped
> in the early 1800s: (and I probably paraphrase) "I care not a whit
> what puppet they put on the throne of England, on the throne of the
> kingdom on which the sun never sets, whoever controls the money supply
> controls the throne, and I control the money supply." He controlled
> the Bank of England, and the Fed is simply one of the demon spawn
> of the Bank of England.
>
> Gold is the canary in the coalmine that warns of the degradation,
> the devaluation, the inflating of the paper currency (note, I did
> not say "money"...gold and silver are money...the FRN "dollar" is
> simply currency...backed by...well, if you don't know what its backed
> by, you can't possibly understand this article or my comment)--the
> higher the price of gold, the more the devaluation of the paper currency
> becomes obvious. So suppression of the price of gold (and its poorer
> cousin silver) is necessary for TPTB to be able to continue to tout
> their "strong dollar" policy...which is simply a bold faced lie,
> nothing more, nothing less.
>
> And the ridiculously low price of gold (compared to new currency
> created, esp. FRNs) is what they have used to justify low interest
> rates (Gibson's Paradox--just ask Larry Summers about that) and the
> lies from the BLS (Bureau of Lying Statistics) about our rate of
> inflation (which of course for anyone with half a background in real
> economics is NOT about prices, but about expansion of the money supply,
> which will in the end bring about all kinds of price inflation while
> in the meantime leading to gross misappropriation of capital).<br/>
>
> And I could go on, but again, the bottom line is exactly as stated
> by our ManAboutDallas...he ain't really MAD at all...but right on
> the money...so to speak '-) jt
"I will demonstrate in detail why it doesn’t really matter if ETFs are really “paper” or “Physical Product” when it comes to EFP transactions. In fact, it doesn’t really matter to market participants what is exchanged on the physical side of an EFP, be it even toilet paper, as long as EFPs remain only a minor component of overall trading volume on the exchange.
Unfortunately, Mr. Douglas has done a disservice to the gold community by not explaining how the EFP works and thus I shall try to correct this first."
Ray (and the rest of you politically correct sheeple)...why go half the way there with an interesting topic and then go braindead like that? Why do you have to write such inane script like that? Why in the world would you take such "rumors...with a grain of salt"...???!!!!! Why would you not understand that this manipulation and price suppression is at the very CORE of the damage that has been done to this Republic, to its currency, to its economy, to its working class and LOOK INTO IT, YOU LAZY SLOB!!!
You think you can write those PC meaningless words and sound intelligent?? Well maybe you do, but only to those like you...PC and lazy...but not to those who want to know the truth, to get to the root of the problem. Why don't you go look at the evidence?...evidence that would stand up in ANY court of law were it to make it there. Then come back and tell us how many "grains of salt" it took to bury the evidence....
Sorry to be so in your face, but that kind of comment has NO place in open and honest and intelligent discovery and discussion, which these boards should be encouraging. If you think that you should just blow off the majority of "conspiracy theories"...esp ones with such overwhelming evidence, then you really are part of the problem...you really are just another sheep. If you have good evidence that it IS just so much BS, then show us the evidence and contradict it...o/w at the least don't go spouting off about what you don't know until you can say something intelligent about it. jt
On Aug 04 01:23 PM Ray wrote:
> I never said that its CNBC holding gold down?? I just don't understand
> how folks do not see that gold is a legit investment. However, there
> are rumors of manipulation and I always take those with a grain of
> salt, but I think we can agree that commodities markets can easily
> be manipulated, i.e. oil. Learn the markets or research it before
> you assume everything is a level playing field. Otherwise you do
> not have an informed position, period.
FOX Business mentions only the gold price....
And does anyone remember Sue Herera last winter when the DOW was...down saying, "Is THIS the bottom of the market"? Or Larry Kudlow mentioning, "drill, drill, drill" or something about "green shoots" and "mustard seeds". Jeeez
I
It's enough to make a man WANT Prozac....