Down on the day - biggest fall for over a year and a half. People closing out long positions?
Up 23.36% year to date.
There was an increase in margin requirements in Shanghai last night.
Gold
Yes, but that's not an argument against trend following. I'm not saying you were saying it was - just saying... 
IMHO, the problem with the way some traders approach trends is that they either:
- Exit as soon as they have a 1 tick profit, terrified that it will disappear in an instant.
Or
- Don't cut their losses swiftly, meaning tiny losses have the chance to mushroom...
Jeff
IMHO, the problem with the way some traders approach trends is that they either:
- Exit as soon as they have a 1 tick profit, terrified that it will disappear in an instant.
Or
- Don't cut their losses swiftly, meaning tiny losses have the chance to mushroom...
Jeff
Euler wrote:The trend is your friend until the end!
QE 3 may be announced on Friday, at the Jackson Hole banking conference, so it's possible that the markets are a bit more jittery than usual...
Jeff
Jeff
andyfuller wrote:Down on the day - biggest fall for over a year and a half. People closing out long positions?
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superfrank
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That old tactic - they did the same with silver earlier this year when it started going up too fast for TPTB. Interesting that you never get increased margin requirements for stocks...andyfuller wrote:There was an increase in margin requirements in Shanghai last night.
I really hope QE3 causes a crash in gold + silver... it could possibly present the last great buying opportunity.
Anyone who didn't who didn't watch the video posted by ciangerry should do so, whether you agree with gold + silver bugs or not, it's good stuff.
http://www.youtube.com/watch?v=tj2s6vzErqY
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superfrank
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I don't think so. Bernanke would be doing cartwheels, but his fun wouldn't last long.Ferru123 wrote:If it does, it could make Lehmann or even 1929 look like a walk in the park...
Jeff
I hope you're right. But when you consider how much money is tied up in yellow metal with limited practical use, a crash wouldn't be pretty for the global economy...superfrank wrote: I don't think so.
Why would Mr Bernanke rejoice in a crash in gold?superfrank wrote:Bernanke would be doing cartwheels, but his fun wouldn't last long.
Jeff
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superfrank
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Precious little (excuse the pun) is tied up in gold + silver. How many people do you know that own any?
As MM states in the video only 1/3rd of an ounce of gold, and 1/14th of an ounce of silver, exists above ground for each person on the planet.
The rising price of gold + silver makes central bankers look bad because it illustrates, like nothing else, that the financial system is failing.
As MM states in the video only 1/3rd of an ounce of gold, and 1/14th of an ounce of silver, exists above ground for each person on the planet.
The rising price of gold + silver makes central bankers look bad because it illustrates, like nothing else, that the financial system is failing.
Last edited by superfrank on Wed Aug 24, 2011 7:57 pm, edited 1 time in total.
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superfrank
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You've been calling the top for quite a while now Euler!Euler wrote:The trend is your friend until the end!
According to Wikipedia:
'A total of 165,000 tonnes of gold have been mined in human history, as of 2009. This is roughly equivalent to 5.3 billion troy ounces ... The world consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry'.
Let's assume that 40% of gold ever produced is tied up in investments:
40% * $1,750 * 5,300,000,000 ounzes = $3,710,000,000,000
To put that figure into context, in 2010, the IMF estimated Germany's GDP at $3,315,643,000,000.
Jeff
'A total of 165,000 tonnes of gold have been mined in human history, as of 2009. This is roughly equivalent to 5.3 billion troy ounces ... The world consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry'.
Let's assume that 40% of gold ever produced is tied up in investments:
40% * $1,750 * 5,300,000,000 ounzes = $3,710,000,000,000
To put that figure into context, in 2010, the IMF estimated Germany's GDP at $3,315,643,000,000.
Jeff
superfrank wrote: As MM states in the video only 1/3rd of an ounce of gold, and 1/14th of an ounce of silver, exists above ground for each person on the planet.
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superfrank
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Assuming that you are correct then that's about 25% of US official US debt excluding unfunded liabilities, so about 5% in reality.
It's irrelevant anyway, you can't measure real money in collapsing currencies.
MM's target for gold is double the DOW.
It's irrelevant anyway, you can't measure real money in collapsing currencies.
MM's target for gold is double the DOW.
Something that hasn't been mentioned re. gold's rise and fall is that it may be due, in part at least, to high frequency trading. If the machines decide that an instrument is heading in a particular direction, it could become a self-fulfilling prophesy!
And yes, the trend followers could be partly to blame too!
You might find this article interesting: http://finance.yahoo.com/news/Black-box ... 34467.html
Jeff
And yes, the trend followers could be partly to blame too!
You might find this article interesting: http://finance.yahoo.com/news/Black-box ... 34467.html
Jeff
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superfrank
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That's bolux. HFT gets blamed for everything; again, it's irrelevant.