Gold is now the #1 source of funds for everyone in need of cash. From hedge funds to Merrill Lynch all the way down to Dennis Gartman, gold is being sold with reckless abandon. More importantly, central banks own a shit load of gold. Would you be surprised to learn Italy sold gold in order to raise cash? Silver is nothing more than a levered version of gold. Hence, the move lower is extreme.
What’s very important to note is the fact that gold is no longer acting defensive. The Federal Reserve wants gold to trade lower and fast. They do not want GLD competing with TLT for scared money. Nevertheless, the drop in commodities is scaring the shit out of people. Whenever it happens, people attribute the drop to “slowing in China.” I give up trying to get a handle on China. One week they are slowing, the next things have never been better.
If you believe the Europeans will let everything collapse, short term, gold is a sell. If you believe they will print, this is a buying opportunity.
In my opinion, this is capitulation. Every fucktard with a series 7 or Zeeco trading account is selling gold now. I do not like to travel with the herd. So, naturally, I think these fucking idiots are wrong. But my risk appetite is nil. I am 75% invested and have reserved my cash for lower prices. If and when the market gets into my comfort zone, I will take a shot at some miners, like RGLD, EXK or AG. But remember, liquidation trades are volatile and the market is filled with the biggest fucking idiots the world has ever known.
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That somehow made me feel a little better for just a moment.
Nice. Looks like a couple of my “experimental” accounts this year.
very nice.
This is without a doubt, the toughest year I’ve ever seen. It just sucks.
Amen brother! This year blows.
the donald trump top
http://www.csmonitor.com/Business/Mises-Economics/2011/0915/Donald-Trump-gets-paid-in-gold-bars
Paulson begging for bail out…
SeÑor Tropicana, what’s your take on ZH’s new favorite buzzword rehypothecation?
Thank You Santa..I knew I was a good Nymph this year.
RATE is up…no wonder…I just got a 3% mortgage…next up 0.9% car loan.
Gotta love this country.
Definitely one of the greatest perks in this whole mess.
Aston Martin 0.9% loans for 5 years!
Wonder what the 99% say about that.
something like “buy me one”
Great – fucking – point!
Indeud.
Time to drop the market and find a rich girl. Please don’t tell my wife.
Good luck with that…
The 200 breach in GLD will change the purple crayon direction…
Sold half positions and still short GLD, CMG and LULU.
New short ZUMZ hoping to fill the gap around $24.5 with stop at $30.50
I reckon GE is the watch stock. It’s bid. It has been for two days now.
Time names the Protester, Person of the Year…what a bunch of idiots, talk about buying at the top.
You don’t even hear about OWS anymore from the media.
If OWS was a stock, sold to you.
OWS + Tea Party = Communitarian Third Way party.
This was planned all along. That’s why it was necessary for central bankers to help organize and fund both parties.
They make you beg for the solutions. It takes the heat off.
Taco
That’s the stupidest thing I’ve read for a while, even beating out 911 troofer trolling.
In fact there’s more Chance Bush ordered the WTC strike than your stupid idea being real.
Seriously Taco, did the Zerohedge guys send you over here to post stupid shit and make the site look silly?
http://www.youtube.com/watch?v=vftNpSXUOU8
There is a clear connection between central interational bankers and socialism….
Now tea party wants to bring down government, OWS wants to bring down business. Order will come out of chaos, but if both sides are influenced, they can better influence policy. If you control billions, money is not the issue, so power is next. If you want to control world policy, you certainly would fund both sides so you have a say in it.
The US stands in the way of a one world government, so they must lose their status as a financial capital of the world and lose reserve currency status.
The Tea Party and OWS both have been twisted into an “anti-establishment party”. They want the gold standard and no government involvement on one hand, and no business on the other, the combined theme between them, is they both divide the democrats and republicans, and people seeking any resolution of the tension will jump at anything they share in common.
tea party wants less government, free market and less taxes
OWS wants socialism and 100% government intervention, redistribution and punitive taxation
explain to me how these two would work together?
bringing down the house to put up global reform and more globalized central control for the internationalist bankers?
How does that happen if Tea Party achieves their ends peacefully?
The OWN creepsters are unorganized and ineffective. How do you compare?
_______
“This was planned all along. That’s why it was necessary for central bankers to help organize and fund both parties.”
Taco.
Correlation does not prove causation.
OWS is the Groupon of global movements.
Time is the phone book of magazines.
Time is more like an advertising circular.
lol ^^
so true
I shorted OWS the moment it spilled out of the rotten womb of the coffee party
I say hold physical bullion as a hedge in case of a USD overnight devaluation, and for no other reason. That silver and gold are down in the face of obvious money printing and central bank purchasing already shows clear manipulation. So don’t buy PMs to make money. Buy them as a hedge.
What money printing!?
I keep hearing about all the Fed money printing; well where is it? They haven’t expanded the balance sheet in a year.
Thank god somebody said it…
what overnight US dollar devaluation are you talking about, squire?
What are you thinking here, taco: that the Euro debt situation is going to miraculously heal itself and the Euro goes to 1.600 overnight?
Have you been reading zerohedge?
The US captured reserve currency status and financial capital of the world status from Britain in 1914, who stole in 1689 from the Dutch by putting the Dutch William of Orange on the throne. The Dutch took it from the Germans who had grabbed from the Italians.
Nothing lasts forever. The superpower status is always lost by corruption and arrogance.
Moderator.
Taco ought to be banned for being the biggest idiot I’ve seen here in 3 years.
No one deserves to be inflicted with this level of oppressive stupidity.
lol
10-yr Treasury yield down 45% year-over-year. Money is literally stempeding into Treasuries.
We’ve got a good, ol’ fashioned selling stampede in equities right now. We are on trading session 3 of said stampeded. Stampedes last an averge of 19 trading sessions and at the nadir of the stampede the S&P has shed an average of 12%.
$VIX acting like it did in September 2010 and February 2009.
Once this selling stampede subsides (second week of January is my guess) equities will snap back and they’re going to do so very suddenly.
I totally agree with you premise, although I won’t comment on your exact statistics.
In this half of 2011, we have not seen mean reversion materialize quickly, or definitively. It has been characterized by prolonged periods of oversold readings with little headway to revert, followed by equally prolonged periods of overbought reading, with no interest in slowing down.
Treasuries are the bubble now. Unless we get deflation, which seems impossible with QE.
Yep; but when to short into that bubble is an interesting question. The rewards are many, but you must outlast the flood.
It’s only a “bubble” in the event the Fed shifts the target rate upward. Try shorting the bond market without monetary policy at your back. It’s been a losing trade for some time now. The Fed could hoover up the entirety of foreign treasury holdings and peg the long bond wherever the hell it wants. Once we’re in an environment where rates can move upward, then yeah, long term US debt will be an awesome short. To think that investor supply/demand fundamentals will pop this bubble is a bit naive given what we’ve witnessed over the last four years.
THIS IS WHAT I SAID LAST MONTH. http://ibankcoin.com/flyblog/2011/11/09/murderholes/
“The_Real_Hmmm says:
November 9, 2011 at 11:04 pm
I just can’t see getting long gold/silver here yet, hence my short position on an overvalued miner. If bond spreads are blowing out and the ECB has cut rates despite Italian inflation increasing, it’s telling me that credit right now is tight. Therefore, a decrease in the sovereign bonds will cause margin calls and the forcible pledging of additional collateral. If central banks want to maintain positions in declining euro paper they’re going to have to sell off currency reserves, fixed income instruments, or hard assets like gold. As of December 2010, Italy was the third largest holder of gold reserves (2500 tons). Now in terms of capital structure, I would dump the most overvalued asset relatively speaking (gold) or UST and buy up euros and euro bonds. This may seem counter-intuitive because UST and dollars are safer in the global sense but if EZ members are required to abide by Maastricht criteria, certain measures must be taken.”
You should really be in the blogger network, Hmmm, if you aren’t already.
Your comments brighten up my day.
Thank you, very kind words Cain. The feelings are completely reciprocal. Although I may not comment on your blog as often as Fly’s, I do read it daily. You do great work there.
I will write some thoughts in the blogger network at some point, when I’m ready. In the mean time I’ll just stick to the comments sections.
Again, the market WANTS to go lower. Not to be a contrarian but it was obvious. Everyone is hoping it finds support and works higher
There were so many days in Feb, Mar, it WANTED to go lower. But was manipulated higher. The little manipulations in the last 5 min every day will only work for so long
Fuck you
I giggle in your face…..again
once gold hits 1500$ I’m long.
that should be the time when I sell my WTI shorts…
Senior Tropicana.
Great-Fucking-Post.