Sep 8, 2011
Is there anything out of the ordinary about gold selling off $100-$200, after it rises $900, without a serious correction against the dollar?
No, nothing is out of the ordinary. In fact, a $400-500 correction is not out of the ordinary, regardless of the fundamentals of the crisis. Don't feed yourself price chasing candy. You won't look financially healthy for long, if you do. The crisis is not, "so bad that gold can't correct". That's the statement of a price-chasing idiot. The crisis is beyond "bad", and yes the system, if marked to market, is totally destroyed, but that has nothing to do with the dollar rallying against gold on a very regular basis.
Also, remember that the banksters aren't too keen on seeing groups of funds or business owners attempt to compete with them in size. Pools that are formed to operate with leverage and compete with the banksters... tend not to fare well, and the banksters use regular price smackdowns to ensure they, alone, hold the most gold. Hold the gold, not the leverage, if you really want to make rules.
Gold is rising on central bank buying, but a new crew of mini-minds have raced to take the gold analysis stage, and expound great theories, that will make you poorer if you act on them. Team mini-mind claims central banks are actually selling gold. That's "beyond hilarious".
If you want to believe that theory, as Clint Eastwood used to say, "Go ahead, make the banksters' day". Sell your gold to them (and believe me, they WILL buy it) because it didn't go up every single minute of every single day. The "conspiracy crew" thinks any time gold falls down more than one cent an ounce, it's because of manipulation of the price by the banksters.
One well-meaning but all-wrong analyst noted that the banksters sold 4000 comex gold contracts as it ripped to a new high near $1920. He thought they did it to "manipulate the price down". Earth to the worst traders on Mars: The banksters bought a hundred thousand longs into the lows of $1700! Do you really think they are not going to book profit on anything... after price blasts two hundred dollars higher?!?!
The only question I have for team "night of $1920" is, "who is the certified moron that bought those 4000 contracts?!!!" You don't buy gold in a greed-fuelled price chase, after it soars $200; you sell some! Here's my summary of the night of $1920 gold: Be a pro... or you have to go!
"Everybody knew OTC derivatives were ok to invest in".... until they all blew up. They [Then?] nobody knew what they bought. Think carefully about the bond market. Everybody knows the bond can't fall down much, and everybody "solid" is invested in there, so what can go wrong? "Build that bond tower of babel. We're confident you can add another 100 floors without any safety concerns. Go for it. Financial heaven awaits you, our dogs promise it will happen. We'll loan you money to leverage the deal, as a personal favour to you!" - banksters, on the phone with Donald Duck PFM (pension fund manager).
The fog zone. Sometimes the next move in a market against the dollars seems like a sure thing. That doesn't last long. Soon team "short the Dow" will begin to regret failing to buy gold stock instead of shorting the Dow. There's a tiny shortside play in the Dow, and it may not even play out. If I was a bankster, right here, right now, I would push the fundsters to bid the Dow higher, to financially obliterate the crew of hedge funds and retail "get the Dow, make it pay!" maniacs, who are short the market.
Then I'd take those positions and release some new crisis horrors surprise news, and watch the Dow fall 1000-2000 pts, and book off a billion or two in profits.
Elmer Fudd Public Investor would look like a roasted toothpick if this happened. Then I'd take his positions as he ran to the bond market, and cash, screaming, "I'll pay anything for safety, just get me out of the stock market forever, now!". What a pathetic worm he is. Then I'd begin the great reflation game, the attack on all the world's paperbug currencies.
You could almost call the clearly stated commitment of the Swiss central bank to money printing as official policy this week the "official starting gun"... to the gold parabola. I would say that's slightly premature, but I view it as a call to all the gold players to make sure you are bolted inside the gold spaceship now.Lock the doors from the outside, so you can't get out, even if you desperately wanted out.
You can't risk that ship blasting off with either a rocket blast of massively accelerated central bank gold buy programs, or warped into the next price dimension, by a forced night time monster reval. This is the big show, the big wealth transfer show, and the question is, Are You Onside?
Attention gold juniors fans: click here now to view the new head and shoulders pattern appearing on GDXJ. While gold fell $50 yesterday, a lot of juniors marched higher, and few fell hard. GDXJ was up on the day, and has built more head and shouldering action, which is a huge positive.
A key theme for you this week is understanding that you could be making a financially fatal error if you think gold bullion falling from $1900 to $1800, $1700, $1600, $1500, or even to $1400, is necessarily negative for gold stocks.
Yesterday's gold stock price action, with bullion down, gave you a tiny taste of that reality. I fully expect to see days in the parabola zone where gold falls $200 and GDX rises $5. GDXJ could rise $7-$10 in one day, on gold bullion monster down days, at some point in this all-epic coming parabola zone. Don't predict that point. Just make sure that your gold stocks spaceship door is locked, from the outside!
Here's my suggestion to Elmer Fudd Professional Idiot: Instead of worrying about when gold stocks might start rising, I'd start worrying about whether you're going to live long enough... to enjoy every monster price moment, of the multi-decade gold stocks party!
A quick note for "hi ho, silver!" fans. I mentioned buying silver in the $44-$39 area on the recent sell-off, every 10 cents down. My average entry price for silver is $7. A few of you have an even lower average entry point. The bottom line is that this is new risk capital brought to the party, to play the possible parabola zone, which could make an appearance above $52.50.
I mentioned yesterday that I'm selling silver every dollar higher. I want to be sure you understand that I'm not just raising my PGEN sell increments, but turning most of them into outer core positions. When I say I'm selling every dollar higher with that silver position, what I mean is that I'm selling one position every round number higher. I bought about 50 positions, and for every 10 bought, I'm only offloading one, and doing so at 10 times the buy increment. I'm not here to flip trade you, or I, thru the parabola zone. I'm here to get us both a lot richer in there. In the parabola zone, flip trading in size, is your ticket to the breadline, not to riches.
Click here now to view the "buying silver on every 10 cent an ounce sale" zone. In the current sell-off, I'm buying every 50 cents down, because I just finished buying it every 10 cents down. I took a little off, and now a little goes back on. End of PGEN Party Pack Story.
Don't overdo a good silver thing with excessive buying, or it could become a hangman's noose for you, rather than a slingshot operated by the punisher.
All my gold, silver, and gold stock accounts hold between 21%-27% cash, which is low for me.
What's going to take silver through the $52.50 line in the dollar bug sand? Check the site in a few minutes for a very unique head and shoulders that will serve as the booster rocket, but in the final technical analysis, it is the 30 year head and shoulders pattern, that is arguably the greatest technical pattern to ever appear on any charted investment, in the history of the world. The ultimate target for silver is unknown, but appears to sit "somewhere" between $100 and $1000.
Some of you are still booking profits on silver and gold stocks in dollars. I think that's inefficient and costly, at this new pre-parabola time of the crisis. I put the proceeds of my sales into gold, via physical gold ETFs and trusts like SGOL, PHYS, GTU. Gold is the currency of choice for my profit booking now. I have no interest in booking profit in dollars. I'll let you know when I do. As a hint, in case something happens to me, it will be when you see thousands of Fudds screaming and crying that interest rates are out of control, the system is finished, and they will be thanking the banksters for saving them by locking gold to the dollar probably somewhere between $10,000 and $100,000 an ounce. THAT is when I'll be interested in making dollars of profit again. For now, it's... gimme the ounces or go home! Thanks!
Gridtime! Things are moving at an accelerating rate, towards the parabola zone. For those thinking the banksters want gold lower, they need to throw their gold analysis toolbox into the river, and don't look for it, ever again. When the banksters REALLY want gold lower, it WILL go lower, and do it in a way that brings terror beyond terror to the gold community. That won't be happening in this gold bull market, and maybe not even in the next one, or the one after that. It may be over 100 years before there is another greed-fuelled bull like there was in 1979. Greed bulls end with crashes, like the stock bulls of 1929 and 1999. Fear bulls end with locks of gold to paperbug credits. Gold flatlines, like it did in the 1930s. This bull ends with the ultimate PGEN range trade, after the ultimate parabola! Nirvana for you. Nirvana for me, and the question is... Can you handle... THAT??
Thanks!
Cheers
St out