Gold

[Iron]

From an interview with Donald Trump (http://video.cnbc.com/gallery/?video=3000045806):

I rented one of my buildings 40 Wall Street. I rented a metals specialist. They said to me, 'Could we pay you in gold?'

I said, 'I'll take the gold'.

Now, I hope for the day when I would say to them 'No, no, no, I don't want gold. I want the dollar'.

Frankly, it's easier. I couldn't believe how heavy it was. It's heavy. I know, but it's so small. I talked about this earlier. it's not a size of the big candy bar bar. It's worth $60,000. They gave me $180,000 in three little bars. There will be a day, I think, if we're smart where I will say and others will say, 'No, no, no, I want the dollar. I don't want the gold'. That will be a great day for this country. I think that day will come.

Jeff

2. It must be portable.

[superfrank]

There will be a day, I think, if we're smart where I will say and others will say, 'No, no, no, I want the dollar. I don't want the gold'. That will be a great day for this country. I think that day will come.

That day will come when money printing stops, interest rates rise and budgets are balanced.

To me that day seems a very long way off - mainly because tptb won't accept the necessary destruction of the phoney wealth created during the (credit) boom.

IMHO the bull market in gold and silver has many years to run.

[superfrank]

great article

Financial Warfare
http://www.zerohedge.com/news/financial-warfare

central planners can win battles but not the war

[Euler]

Silver is taking a beating, it's seems every asset is headed south at the moment!

[superfrank]

yeah getting thumped. when commods get hammered because of global growth worries it goes south hard (same thing happened in 08/09). silver gets treated as just like any other industrial metal at these times.

my bet on silver is that one day in not too distant future it will be treated as a wealth preserver as fiat currencies collapse (just like gold is).

i just wish it was gold that was falling as hard cos I don't have much of that (gold in GBP has hardly budged).

wealth destruction is going into overdrive atm - and that's probably a good thing for the longer term. it was the phoney wealth created by reckless credit expansion, and maintained by reckless deficit spending, that got us where we are today.

edit: btw i don't want fiat currencies to collapse!, but unless central bankers come to their senses there's a good chance that they will.

[Iron]

Looks like the gold bubble may be about to burst.

It's already about 15% down on a few weeks ago...

Jeff

[Euler]

Almost a head and shoulders pattern?

[Iron]

It's also a double top (the picture is of a different instrument, just in case anyone't thinking it doesn't look like the current gold chart!).

Jeff

Almost a head and shoulders pattern?

[Euler]

Gold and silver plunging again this morning. It's a rout for anybody long at these elevated prices and a windfall for anybody short. Every market has it's price.

I fancy an inflation play on bonds.

[Iron]

There's an interesting pattern forming on gold today, suggesting that a reversal may be imminent. It may be that the downward momentum has come to a halt, and people are panicing to get out of their short positions.

I don't trade reversals, but if I did, I'd go long and place a stop just below the most recent low, and see where the market goes...

Jeff

[Euler]

Looks like some silver will be rising very soon: -

http://www.bbc.co.uk/news/uk-15061868

[superfrank]

http://en.wikipedia.org/wiki/Andrew_Mag ... eblower%29

Andrew Maguire is an independent bullion trader and a whistleblower. He notified United States regulators that fraud had been committed, manipulating prices in the international gold and silver markets. Maguire and his wife were injured in a hit-and-run accident a day after he was identified as the source of the allegations.

According to Maguire, the precious metals markets trade "pretty much in tandem", but because the silver market is so much smaller, it is harder to disguise one's activities and therefore easier to figure out who is behind a manipulative event. After Bear Stearns and their short silver positions were acquired by JPMorgan, manipulative events in the silver market became more frequent. Maguire decided to inform the CFTC. He contacted commissioner Bart Chilton, who had Eliud Ramirez, a senior investigator from the CFTC's enforcement division, get in touch with Maguire. Maguire explained the manipulations in great detail, both over the phone in an hour-long interview and afterward, in a series of e-mails with screen shots.

Maguire then predicted a manipulative event in the silver market and gave detailed information in an e-mail to the CFTC about what to expect, sending it on February 3, 2010, two days prior to the event. The event transpired exactly as Maguire predicted. While the event was taking place, Maguire sent e-mails in real time, pointing out certain details because the CFTC enforcement seemed not to know what to look for or how to interpret the data.

Silver: Assessing The Damage And Looking Ahead
http://seekingalpha.com/article/295700- ... king-ahead

The sharp sell off comes with the territory with silver. While the -22% decline over two trading days was certainly jarring, it is a characteristic of the very high risk associated with owning silver. For example, this marks the 19th time in the last five years that silver has posted a double-digit decline over two trading days.

hmmm!!

[Euler]

Is somebody manipulating the gold market?

http://www.moneyweek.com/investment-adv ... rket-55628

[superfrank]

Is somebody manipulating the gold market?

http://www.moneyweek.com/investment-adv ... rket-55628

Commodity futures markets have always been open to manipulation.



This book is a great read and describes lots of dodgy happenings in the early days with people trying to corner markets and all sorts of skullduggery.

I guess for those trading commodities based on some sort of fundamental view that the this sort of thing can create lots of opportunities.

Silver fell 43% in less than 3 days (to $26 intraday on Monday) before bouncing about 20%.

[superfrank]

(from Sept 26) Silver Arrow's Groenewegen on Gold, Silver Prices
http://www.bloomberg.com/video/76143172/