So, it turns out “The Donald” is now accepting gold as a form of payment for his real estate properties partly in protest against Chairman Bernanke’s easy-as-can-be monetary policy.
I noted on Monday that the miners were putting in bearish reversals, and the silver miners especially seemed to be confirming that bearish evening star pattern, losing their respective 50 day moving average today on SIL (ETF for silver miners). Moreover, the junior gold miners have erased virtually all of the gains from late-August.
Now, I realize that the miners and the metals themselves often trade in separate worlds, but from a contrarian perspective, coupled with the sudden turn of events in the technicals, perhaps gold is putting in a more meaningful top than we think right now. To be sure, the bullion has been in a fierce, multi-year bull run. Bull markets of that magnitude tend go out with a bang rather than a whimper. I am not sure we have seen that big bang yet, but we must be getting closer when real estate tycoons accept gold as a legitimate form of payment. Note also we are seeing more liquidity enter global capital markets, yet gold is down today. When something starts going down on what is supposed to be bullish news, it often reinforces the “top” thesis.
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The Secret Service will be coming for “The Don” shortly. They don’t look kindly on “counterfeit” currency, I am told.
Good point.
Grandma selling her old dental crowns on TeeVee is always an indicator of the top of the market.
LoL
Gma selling gold vs. commercials selling gold to the public is more indicative of a top. When the general public starts buying gold that is when the bulls should be fearful.
Ignore gold’s volatility and focus on fundamentals…shit about to hit the fan…
MDW
Trump’s polar. People love/hate him. He’s good in my books.
He also recently published that he made his first large equity purchases in 2011. My guess is Apprentice profits are being treated like house money.
One day, those gold bars will be worth much. But short term, you’re right, as of today, not the best form of accepted consideration.
Good. Let him hold gold bricks in his gold plated apartment. Is he denominated in $$$ or gold at the end of the day?
We’ll see if premiums for physical gold and silver come down also. The paper and spot markets are heavily manipulated, but the physical market cannot be manipulated and the premiums will reflect this. I don’t think there’s any way to convince the public that gold and silver are worthless simply by moving the paper value of PMs down. The gullible (Americans) will fall for it, though.
Cool .. I’ve been buying $USD’s with $USD’s all morning. 😉
I’m waiting to overhear people bragging about how much money they make at work….
However, recently I heard another sign of a top and that is at applebees a biblestudy group or something was saying “I bought gold and silver, sometimes you can ask God what to buy and if you listen closely he will tell you what to do so you can make money from which you can use part of it to donate and do good things”
What? why didn’t God tell you to buy when gold was $300 an ounce and silver at $6 an ounce?