Abegaz: 10% or more is not so far out of line if you see the hurricane coming toward your beach front house in Daytona. Some of us see the storm coming is all.
PAR Model: You believe that the 170 tons of gold from GLD is actual bullion and not paper derivatives? I am very leery of their claims that they hold physical in such quantities and can trade it with such ease and speed. The US Treasury can't pay back Germany all that we hold of theirs for seven years but GLD and SLV trade physical gold and silver with no problems? Hmm...somethin' smells fishy.
Author: "The new supply of bullion being offered in the market is so large...only long-term holders such as central banks are likely to be able to absorb."
And that's the point–what supply? When the largest Dutch bank defaults on their gold contracts to their clients two weeks ago; when the US and Canadian mints must stop producing silver coins because they've run out of silver; when ebay prices are 50-100% higher per coin than the going metal value; when Germany gives the US seven years to return their gold bullion–what does this tell you? There is not a glut of PMs out there. There is a drastic shortage.
The current crash of the PMs is a finely orchestrated and perfect storm to drive the PM prices down.
All Crowded, Speculative Trades Unwind At Some Point [View article]
Paulo: "...a dead cold shiny rock."
And what exactly are US Treasuries, bonds, or the USD (or even the euro)? All the above are currencies made of paper or as you might put it–"wood". Gold is the ultimate panic button currency and can never go to zero value. Insurance is expensive but, as they say, not as expensive as not having it.
Additionally, you must agree that PM bullion and miners were not crowded trades but GLD, SLV, and COMEX PM shorts were. I'm thrilled those two ETFs have dropped, if we are lucky they will never recover. As for the COMEX shorts, they'll get squeezed at the next big euro/Iran/Korea/etc. crisis.
Don't Get Caught Up In Panic Selling And Capitulation In Precious Metals [View article]
Edit or Perish: It took awhile yesterday but my buy order finally got filled in piecemeal. I picked up more Sabina Gold and Silver which is a steal. Sabina did very well compared to other miners after the last big drop and look great for the future plus they're in Canada and not in a resource tax/royalty risky country. Even if it goes down more today I know that where these stocks are right now will not be where they will be shortly. As Jeb said—"don't panic!" But who's panicking?! I'm backing up my little truck.
Gold: I Hate To Say I Told You So ... But I Told You So [View article]
tunaman4u2: Good call. The Japanese QE is much, much stronger than anything that the Fed has done to date in a GDP comparative ratio. When the author states: "...it looks like QE may be coming to an end," he is way off base. Little with the middle class has changed in the last few years and we muddle along sideways in our economy waiting for the next euro or banking crisis. For the Fed to stop or lessen the 86 billion (!) dollars a month they are spending would take our economy down again.
Gold has been crushed by fears over Cyprus selling gold which holds so little it is a fly speck on the overall gold market, algorithmic computer trading, and the fears flamed by a gold downgrade of a bank. Fear is a greater mover of the market than confidence and if fear of a currency returns, so will the price of gold. And that can turn on a dime.
Bitcoin: I Hate To Say I Told You So... But I Told You So [View article]
Netbluesky: I agree with you that China's currency is not now the acceptable currency to replace the USD. However, many analysts/economists see that they are creating a block of dependent countries in SE Asia that could form a financial block with a basket of currencies, possibly including gold or even the Russian ruble, that would rival the USD as a reserve currency down the road. (Hence the sneaky part.) As the USD becomes more bloated every month with QE printing, central banks are buying fewer of the needed US Treasuries to support it. What the Yuan or Renminbi is now is certainly not what it will be in the future and to think that the USD has a lock on being the reserve currency forever is an illusion.
Stars Continue To Align Against Gold, Goldman Sachs Targets $1,270 Per Ounce In 2014 [View article]
"...as optimism returns to the economy and markets, the main pillar holding up gold will crumble. Hope and recovery will likely be the final straw that breaks the back of gold." - author
Optimism, hope, and recover can turn on a headline. The reason that Korea and Cyprus did little to the price of gold is that they are contained fears. The general public does not fear Korea's empty threats and Cyprus' crisis is contained mostly to the euro and financial market. If (when) the USD or euro show signs of inflation or default, that's when the public will fly back to both physical and (argh!) paper gold.
Additionally, if the price of gold drops, a central bank will want to either buy more gold to bring the amount of assets back up or to force the price of gold upward so that they don't have to buy more. With central banks printing like there's no tomorrow, they will continue to buy more gold assets to maintain a balanced asset level. When physical gold begins to become scarcer to purchase, the price will rise.
A U.S. Dollar Retreat Could Ignite The Precious Metals Market [View article]
Lead? Ohhh...I get it. Well then, the prices for sulfur, charcoal, and salt peter should just skyrocket then! And maybe stock up on toilet paper, vitamin pills, and bottled water for the compound, too?
If the end of civilization doesn't come, there's going to be a whole lot of really pissed off people stuck with unusable ammo and rotting food supplies. However, gold doesn't rot and doesn't need an armageddon to make it usable as a currency, just a failing currency.
Bitcoin: I Hate To Say I Told You So... But I Told You So [View article]
"...it is even more unlikely that a new currency or monetary system will replace the US Dollar as the world's reserve currency." -- author
Wow! That's some long range forecasting. Two hundred years from now and the greenback is still king?! Ahh...don't look now but China is sneaking up on it.
Three Catalysts That Should Boost Gold Price This Quarter [View article]
Goldman Sachs has been wrong so often it is surprising that anyone gives them any credibility. Outside of daily fluctuations, the overall trend of the price of gold and silver is in the hands of the global public in response to fears. No one can predict when or where these fears will arise or the public's response to them. All that we can be sure of is that the current financial situation, in the West in particular, is a shambles and that should bode well for gold and silver sometime in the future.
Goldman Sachs Says Short Gold And Lowers 2014 Price Target To $1,270 [View article]
Nope, Goldman Sachs' crystal ball is still broken. A year ago last March they said gold would be at $1940 oz. right now. And people still listen to them? No one knows where gold will be at any specific time, but it becomes obvious to many that it eventually will be much higher at some time.
A year ago last March, Goldman Sachs said that gold would be at $1,940 right now—so much for their analytical skills. Gold investment is an insurance that the general public hates to buy. Until the public accepts that Western fiat currencies are failing, the gold and silver prices will continue to fluctuate wildly on good and bad economic and financial news. However the end of the fiats is inevitable, so keep buying on lows.
Don't Panic Over The Silver Sell-Off [View article]
Mr. Davis: Yet another excellent article. But who's panicking? I've never sold any of my silver (started collecting about 1983 or so) and I don't plan to until the USD crashes. Which, if you pay attention, won't be so very far in the future. And if you haven't read David Stockman's essay from a week ago in the NY Times (http://nyti.ms/1436vXI), I suggest all readers do! It is the economy in a nut shell and a vision of what we should do.
Gold Lied, Inflation Died [View article]
The Gold Emperor Has No Clothes [View article]
The Gold Emperor Has No Clothes [View article]
The Gold Emperor Has No Clothes [View article]
And that's the point–what supply? When the largest Dutch bank defaults on their gold contracts to their clients two weeks ago; when the US and Canadian mints must stop producing silver coins because they've run out of silver; when ebay prices are 50-100% higher per coin than the going metal value; when Germany gives the US seven years to return their gold bullion–what does this tell you? There is not a glut of PMs out there. There is a drastic shortage.
The current crash of the PMs is a finely orchestrated and perfect storm to drive the PM prices down.
All Crowded, Speculative Trades Unwind At Some Point [View article]
And what exactly are US Treasuries, bonds, or the USD (or even the euro)? All the above are currencies made of paper or as you might put it–"wood". Gold is the ultimate panic button currency and can never go to zero value. Insurance is expensive but, as they say, not as expensive as not having it.
Additionally, you must agree that PM bullion and miners were not crowded trades but GLD, SLV, and COMEX PM shorts were. I'm thrilled those two ETFs have dropped, if we are lucky they will never recover. As for the COMEX shorts, they'll get squeezed at the next big euro/Iran/Korea/etc. crisis.
Don't Get Caught Up In Panic Selling And Capitulation In Precious Metals [View article]
Gold: I Hate To Say I Told You So ... But I Told You So [View article]
Gold has been crushed by fears over Cyprus selling gold which holds so little it is a fly speck on the overall gold market, algorithmic computer trading, and the fears flamed by a gold downgrade of a bank. Fear is a greater mover of the market than confidence and if fear of a currency returns, so will the price of gold. And that can turn on a dime.
Bitcoin: I Hate To Say I Told You So... But I Told You So [View article]
Stars Continue To Align Against Gold, Goldman Sachs Targets $1,270 Per Ounce In 2014 [View article]
Optimism, hope, and recover can turn on a headline. The reason that Korea and Cyprus did little to the price of gold is that they are contained fears. The general public does not fear Korea's empty threats and Cyprus' crisis is contained mostly to the euro and financial market. If (when) the USD or euro show signs of inflation or default, that's when the public will fly back to both physical and (argh!) paper gold.
Additionally, if the price of gold drops, a central bank will want to either buy more gold to bring the amount of assets back up or to force the price of gold upward so that they don't have to buy more. With central banks printing like there's no tomorrow, they will continue to buy more gold assets to maintain a balanced asset level. When physical gold begins to become scarcer to purchase, the price will rise.
A U.S. Dollar Retreat Could Ignite The Precious Metals Market [View article]
If the end of civilization doesn't come, there's going to be a whole lot of really pissed off people stuck with unusable ammo and rotting food supplies. However, gold doesn't rot and doesn't need an armageddon to make it usable as a currency, just a failing currency.
Bitcoin: I Hate To Say I Told You So... But I Told You So [View article]
Wow! That's some long range forecasting. Two hundred years from now and the greenback is still king?! Ahh...don't look now but China is sneaking up on it.
Three Catalysts That Should Boost Gold Price This Quarter [View article]
Goldman Sachs Says Short Gold And Lowers 2014 Price Target To $1,270 [View article]
Every Gold Coin Has Two Sides [View article]
Don't Panic Over The Silver Sell-Off [View article]