Note to the Wise: Gold Will Crash
I hear all of you late comers clamoring for a piece of the yellow metal action, up at these levels. The time to buy gold was when no one was interested, exactly what Jakegint was doing many months ago. Now that every one is talking about it, the trade has become stupid.
Instead of buying gold near $1,200 per ounce, I’d rather shoot my face off with a howitzer. Sure, the dollar is screwed and we’re all going to die, at some point this century. However, that does not mean it makes sense to buy a stupid yellow metal, which has little to no purpose on Earth, aside from providing criminals with profound reasons to cap someone in the face.
As an aside, it appears the market is “going virgin” into the bell, by denying me of my victory, my rights. No worries kids, we’ll be back at ‘em tomorrow with more buy tickets than the world has ever seen.
Top picks: W.W. Grainger, Inc. [[GWW]] , FBR and U.S. Global Investors, Inc. [[GROW]]
Gold will crash to make me cash. Dzz is the play on the way down.
I too was buying gold many months back.
Fly I don’t know about Gold crashing
IMO gold is not going to crash anytime soon, same for silver. It may be worthless in your view, but as long as the demand is strong and the dollar falls it stays strong. that is until the government starts to confiscate gold from the citizens as it Roosevelt did
Interesting comments on gold.
http://www.minyanville.com/audiovideo/749/3/43
macke looks medicated..talk about dumbed down..crayons no less…the cramers (lost 50% of his audience?) and the mackes self destruct ….mission possible…oh yeah the ratigans too…add the kernans, schiffs, whitneys, and on and on..the shelf life of the pundits 2009 aint pretty…
I think Jake still had about 45% of his portfolio in gold.
Any thoughts on oil?
Oil is so 2008.
howitzers.are.pretty.big,sure.ya.dont.want.some.help.with.it?
RGLD puts were active today.
you are going to anger the jake gods with that one…we love rgld…
Oh almost forgot, TMoe shorts LVS @ 16.30
STOP SHORTING YOU IDIOT.
lawl.
LVS has some problems, plain and simple. HK issued shares was at low end of what they wanted and needed. Large debt load, and decreased revenues from Vegas
more of your stupid “rationale” that makes no sense when the market melts the fuck higher. take your “plain and simple” and shove it up your pee hole.
Well, it’s not going to happen now or tomorrow. Eventually, gold will get slugged, badly.
Rob Stein (Astor fund, worked @ the Fed for Paul Volker, nailed most of the last 2 years and the dot-com bust, runs a long/short fund, book endorsed by Rahm Emanuel, not as pimp as The Fly, but pimp nonetheless) just added UUP to his fund. Should correspond to Gold’s pending de-moustaching.
DO you know the real reason why roosevelt confiscated gold. it wasn’t a run on the banks, it was people were turning their dollars in for gold. there wasn’t enough gold. roosevelt needed gold reserves. that’s why the confiscation not inflation. even though the sob gave people a twenty that had a value of $11.50
gold has no intrinsic value, neither did those stocks that crashed in 08, and the new correction this year. gold is the oldest reserve currency in the real world. there are a ton of shorts out there no, thanks jamie diamond, bottom line dollar rally will be short lived, as will currencies around the world. am i saying don’t own any money, not until the grocery store takes gold in conjunction with or in lieu of.
you equity guys have been bad mouthing gold for 5 years plus, why because you morons missed the trade. as peter schiff said on friday during the beginning of this correction, come on in the bull market is just starting. EQUITIES, WERE TALKIN EQUITIES HER MAN.
Mr. Fly you did recognize the paradigm shift in market since March, but now you are sounding like Tim Knight when it comes to gold…. this will be your downfall!!! Something has changed, the dollar will go to zero.
Buy gold now, real money while that soon to be worthless green paper you have goes in the toilet.
Who cares? Downfall? According to what, my words?
I am not shorting gold. Like I said before, this is a LONG ONLY market. I am suggesting you don’t chase gold here, that’s all, you stupid bastard.
You don’t make sense…Gold will crush when dollar rockets and carry trade is over so markets will crush as well. You still like CIEN with crappy Nortel assets?
Love CIEN after NT.
I guess what I am saying is: the market will not climb forever, especially gold.
Ahem…did you let slip a curse word, Le Doctre Fly?
Bastard is not a curse word. A bastard is a male bitch.
From a momentum perspective, gold is up about 25% since the March lows, while SPX is up ~63%. On that basis, SPX would be the one more likely to violently correct (“crash”). Even if gold corrected 10% (possible in the short term), that’d still keep it above $1k. Gold is also nowhere near the Naz (entire stock market’s?) moonshot in ‘99-’00 in terms of momentum.
FWIW, it seems the “gold is a bubble” thesis is more crowded than the “I am long gold” crowd, which from the contrarian standpoint would support the current price levels.
So, I take it you like gold more than banks?
If he does like gold moer than the banks he is a smart man
unlike you, shorting rockets
Depends on the time frame – banks I’d be willing to trade on a short-term technical basis but not consider for long term holdings, while I’ve got GLD as a “core holding”. I consider the financial industry as a whole too subject to surprises (in both directions) to make for reliable or intelligently placed “investment positions” in the current environment.
But the people buying GLD now are NOT intelligent.
In the very short term (next few weeks or so) it would not surprise me for a correction back down below $1100, so the “late to the party mo-mo-ers” could be in for some hurt (ie not an intelligent move). For the long-termers, waiting for a pullback is probably adviseable, but opening a partial position now and filling it out on a pullback isn’t a bad idea, either.
I think you have it backwards – BAC will be worth lot more in two years but the interim volatility is a pain in the ass….GLD is going into the crapper- the FEd and Ben and GS (is it massively short gold?) will not let gold derail their recovery..besides- if gold becomes the leader of the pack, the macro gets ugly…and you won’t like your life…you’ll be sitting in an empty mcmansion with no heat eating bean paste out of can wrapped in a snuggie you pulled off your dead neighbor. Ra!
hmmm….
http://www.cbsatlanta.com/news/21699504/detail.html
I want to know what the Flotek is going on in that picture?
Gold will not crash because whilst I agree with your view that it is ‘useless’, it is one of the only ways to be synthetic short of fiat currency with no counterparty risk.
Let’s all buy lead instead. What the difference?
How about zinc? Better yet, PLUTONIUM?
At least we can travel time or destroy countries with that stuff.
I am kinda into dysprosium myself.
Buy guns and ammo. They hold their value over time. In the event we go “Mad Max”, gold won’t do you any good when there’s a gun stuck in your face.
neither will the smith & wesson in that case….
these.responses.are.hilarious
on.multiple.levels.
an.noy.ing.
No buy Booze. It fits any situation .
http://dudespaper.com/wp-content/uploads/2008/11/spicoli.jpg
hey.dudes,whats.like.ftk.trading.at?
cheeyaaaaa
Prechter time …
I don’t like picking tops.
For one they are always wrong and two they are always an expensive lesson.
At some poing Gold will break the trend and the tape on it will turn ugly, until then it’s a ride.
Gold is a collectible for taxes. I buy silver and the miners…..not a huge position and I expect gold will pull back 5 to 10% after it crosses $1200 but beyond that my crystal ball is cloudy….just like for stocks and anything else. Hell, the market could fool a lot of people and move up 5 to 10% through the end of the year ….like 2003. I believe that we are in unprecedented times.
FINRA.
Oh shyt.. Return of DD?
Celebrity gold tag team cage match: Fly + Jake vs. D. Einhorn + J. Paulson
Four men enter, two men leave.
Be therrrrrrrrrrrrrrre….
Devildawg had a gold toilet seat……..but had to sell it after crashing in FAZ.
some of my positions right now
30% cash
Long GLD, SLV, HYG, GMCR, UUP, TBT
Short LVS, BAC, SPY, GE,
Own Jan puts on RTH
buy gold – they are not making any more of it!!!!
Or was that land?
I think the correct mantra right now is “the water is freezing and there aren’t enough boats”.
Fly i was out all day attending to other matters of state, what’s your take on GMCR?
Ddrx is the biggest maker of k-cups. This is a no brainer for gmcr and will be very accretive to earnings.
K cups are for fags. Espresso is so easily prepared with 1 push of a button with a little device called an espresso machine all the cool kids drink espresso now and a good quality machine can be had at your local retailer, Kcups are for fags…Oh I said that already
I’ve been thinking the gold climb was nearing an end for a while. The commercials on radio/tv makes me scared to get in at this point. Whenever an investing idea is getting lots of advertising dollars I get a bad feeling. If it is that great an idea they wouldn’t be paying to share the idea with others.
Gold is the new coffee. Go long gold until $2200.
even if the govt wouldnt make gold illegal to own again…..it could be deemed necessary to make a certain countrys gold illegal to own..ie: kugerrand from africa ..not sure i spelled it right ..but yes it happens and did ….
FLY,
if your still looking for web sites that get visited i usually go to this one ,especially if im heading out to go to a coin auction…… http://www.kitco.com/
Gloom and doom for 2010. I am the Dr. Doom now. Forget this Roubini and Faber. However, the dollar will rally while everything else crashes, odd no? Buy that UUP – it’s a real snail – make 2 or 3% every 6 months.
No shit but try shorting UDN and see what happens if the $ BTFO ….. I’m not expecting that (not in the Prechter camp) but that would be the play.
No King Cock Today?
What flavor K-Cup did we have today? I think I’m going to break down and join the club. DDRX this shit is going to peck away at SBUX, No?
arch- you mentioned websites and coins. A while back a little Internet searching for dealers made me uneasy. I also found this site: http://www.fisch.co.za/home.htm I have no idea if this is a good tool or not, just an FYI
i would deal with your local dealer if your just starting ..join a coin club ..its been fun for me for years and it takes years to do
any tools used to help identify or test gold ( with the permission of the owner ) would in my opinion be welcome …but dealing with a reputable dealer is a must ..i wouldnt be looking at the flea markets for gold..
and dont assume all gold is 24 kt because its not
i use books to determine auth. mainly because of the die markings that help tell if a coin is genuine..and thats just for the more expensive ones ..i know just by looking.. and the auctions i go to been going to them for 20 -30 years now ..and there are alot of dealers there so once in a while a fake 1 comes along but its removed after every body sees it ..
the item your link goes to is not in my tool box
http://www.nationaljewelerssupplies.com/gold-testing-kits.html
i think all three will happen
/DX goes up GLD retreats and $SPX pulls back
/DX 10-15% SHORT SQUEEZE
GLD 10-15% pullback
$SPX 10-15% pullback
and as for coffee id rather own SUGAR
“Note to the Wise: Gold Will Crash”
Hunh? I didn’t think Devil Dawg was doing a blog Mondays anymore. And what is that underworld canine doing posting under Fly’s moniker?
Hehe, remember awhile back, when DD said ‘Gold to 600!’ ?
Followed by: ‘Gold to 840, then to 600!’
I really enjoyed that.
FOr the sake of fun let’s say the globe adopts some sort of SDR with Gold in the mix, do you lot have the slightest idea what POG will be in ‘greenbacks’ then? Here’s a hint: A long sight more than 1200 USD
I remember Fly and his bearish gold calls two years ago.. At the time he was just starting to understand what an otc derivative was. I’ll sit tight until gold hits $3000/oz.. I expect Fly to turn bearish and then bullish on gold several more times all the way to $5k/oz.. Just watch..!
Sierra
sierra you buying property yet?
I have not seen an article devoid of any logic nor any analysis telling not to buy GOLD.
So what do u recommend? Dollar? or canadian Loonie. ?
Am not a Gold bug nor great Ben fan but dude…u got to accept a simple truth….when u have access of one thing .it will go down in value….Thats the story with Dollar.
fresbee
Hyghhhhh