Well, in the least, it’s a bounce. And it’s off two significant indicators, which gives me comfort. The more indicators, the better I feel about taking the trade.
As you know I’m already ass deep in gold and gold miners, and the [[$HUI]] is a great indicator for the unhedged (ie, usually smaller) gold and silver miners. That said, I may try to take advantage of what I think will at least be a measured bounce here to pick up some $GDX calls. Again, the chart tells the tale:
I’m looking at the September $28’s now, as well as adding some more juniors. Best to you all.
_________
-
UPDATE:
I bot 20 Sept GDX 28 calls @ $8.00. Possible to add 20 more… developing. Allied Nevada Gold Corp. [[ANV]] and NovaGold Resources Inc. (USA) [[NG]] on fiah. Watch biotech grenades… [[OXGN]] stealing all the air from the room. Keep an eye on [[BIOS]] .
- Second Update:
Bot 1500 of IRE @ $8.10. Probably late, but… I like the look of it.
Last, an enduring hat tip to my young friend CA for [[CAR]] .
__________
GG and ABX actually looks like a daytrade short here.
Nice pop, good call:
http://www.kitcosilver.com/charts/24hoursspot.html
TC — of those two, I think only GG is in the $HUI.
ABX is a fossilized whooah.
_________________
Update: I just bot 20 GDX Sept 28’s @ $8.00.
_____________
Hey hey, don’t hate on ABX – that’s my gold hedge against my DUG position.
KGC and GG are the two I’m watching for the rest of the week.
What do you think of the fact that the Rothschild family plays such a significant role in helping to determine the gold spot price on a daily basis?
Taco — I’d think you’ve been hanging on too many conspiracy websites.
Now the diamond trade? That’s a manipulated market.
_______
Jake, with 25 years as a diamond importer and wholesaler I can agree that is true somtimes, and was true to a much larger degree 15 years ago..Now not so much manipulated as played by big money as a hedge against weak dollar
You are talking about diamonds, now or gold?
I mean, diamonds are pretty much doupolized by DeBeers and the Russkies, no?
___
Diamonds.
Fuck I just typed a fucking thesis on my edit and ran over ..if you are up holler
I’m a looooong time fan of GG, ZMoose, even though I don’t talk about it much here.
I spend too much time gabbing on about her sister, SLW.
_________
Ahh, yes… SLW’s performance will be monitored over at the Moose Den as well, as we discussed that earlier today.
Jacksonians will turn around, for it’s only a matter of time that the commodities take control again.
I am serene.
JakeGint —
Your canned response is, well…. canned. What prevents you from looking something up? Fear of not fitting in? Scared of something? I’ll let you sort of your own karma. Not my issue.
So here’s an answer…
The usual benchmark for the price of gold is known as the London Gold Fixing, a twice-daily (telephone) meeting of representatives from five bullion-trading firms. Furthermore, there is active gold trading based on the intra-day spot price, derived from gold-trading markets around the world as they open and close throughout the day.
The Gold Fixing (also known as the London Gold Fixing or Gold Fix) is the procedure by which the price of gold is set on the London market by the five members of the London Gold Pool. It is designed to fix a price for settling contracts between members of the London bullion market, but informally the Gold Fixing provides a recognized rate that is used as a benchmark for pricing the majority of gold products and derivatives throughout the world’s markets. The Gold Fixing is conducted twice a day by telephone, at 10:30 GMT and 15:00 GMT.
The first fixing took place on 12 September 1919 amongst the five principal gold bullion traders and refiners of the day: N M Rothschild & Sons, Mocatta & Goldsmid, Pixley & Abell, Samuel Montagu & Co. and Sharps Wilkins. The gold price then was four pounds 18 shillings and ninepence (GBP 4.9375) per troy ounce.
Gold prices are fixed in United States dollars (USD), Pound sterling (GBP) and European euros (EUR).
The Fixing historically took place twice daily at the City offices of N M Rothschild & Sons in St Swithin’s Lane, but since 5 May 2004 it takes place by telephone. In April 2004 N M Rothschild & Sons announced that it planned to withdraw from gold trading and from the London Gold Fixing. Barclays Bank took its place from 7 June 2004, and the chairmanship of the meeting, formerly held permanently by Rothschilds, now rotates annually.
A tradition of the London Gold Fixing was that participants could raise a small Union Flag on their desk to pause proceedings. Under the telephone fixing system, participants can register a pause by saying the word “flag”, and the chair ends the meeting with the phrase “There are no flags, and we’re fixed”.
The current five participants in the Fixing, who must be members of the London Bullion Market Association, are:
* Scotia-Mocatta — successor to Mocatta & Goldsmid and part of Bank of Nova Scotia
* Barclays Capital — Replaced N M Rothschild & Sons when they abdicated
* Deutsche Bank — Owner of Sharps Pixley, itself the merger of Sharps Wilkins with Pixley & Abell
* HSBC — Owner of Samuel Montagu & Co.
* Société Générale — Replaced Johnson Matthey and CSFB as fifth seat
Sources: http://en.wikipedia.org/wiki/Gold_price
JakeGint —
Read this http://en.wikipedia.org/wiki/London_Gold_Fixing
The conspiracy theory is that the concept of a conspiracy theory is designed to prevent anyone from doing any research (apparently), which leaves them at the mercy of the “coolest ” news clique they subscribe to and defend at all costs, despite that the subscriber has not a clue what they are defending.
Aw gee, and I had just chalked it up to long standing anti-Semitism and a general lack of logical facility.
In this century, gold is traded in very liquid market. The “fixing” means little.
_
Jake
Speaking of -conspiracy, I heard(new Fed chief hopeful) Summers’ mantra of “Keep gold low to keep interest rates low,” is put into practice by Rubin et al who borrow gold from BOE at 1% and flooding the markets with metal. Like to hear your take on both Summers quote and the Rubin action.
Do you have the actual quote and/or article from which you obtained this info? I have heard about games being played in the gold leasing space, but I thought they kind of went away when gold cracked $400 (along with the major hedgers).
From jesse:
http://1.bp.blogspot.com/_H2DePAZe2gA/Slu2o2eEmLI/AAAAAAAAJYM/8gUmYdxqVqM/s1600-h/goldweekly.png
The GS blowback should be great for gold.
Tell the truth, Scum… you drew the demure little smiley face on that chart, didntcha?
_________
😀 NO 😀
Random political-economic post that might mean something to you:
(hat tip WSJ):
Mandating Unemployment
Congress prepares to kill more jobs.
Here’s some economic logic to ponder. The unemployment rate in June for American teenagers was 24%, for black teens it was 38%, and even White House economists are predicting more job losses. So how about raising the cost of that teenage labor?
Sorry to say, but that’s precisely what will happen on July 24, when the minimum wage will increase to $7.25 an hour from $6.55. The national wage floor will have increased 41% since the three-step hike was approved by the Democratic Congress in May 2007. Then the economy was humming, with an overall jobless rate of 4.5% and many entry-level jobs paying more than the minimum. That’s a hard case to make now, with a 9.5% national jobless rate and thousands of employers facing razor-thin profit margins.
There’s been a long and spirited debate among economists about who gets hurt and who benefits when the minimum wage rises. But in a 2006 National Bureau of Economic Research paper, economists David Neumark of the University of California, Irvine, and William Wascher of the Federal Reserve Bank reviewed the voluminous literature over the past 30 years and came to two almost universally acknowledged conclusions.
First, “a sizable majority of the studies give a relatively consistent (though not always statistically significant) indication of negative employment effects.” Second, “studies that focus on the least-skilled groups [i.e., teens, and welfare moms] provide relatively overwhelming evidence of stronger disemployment effects.”
Proponents argue that millions of workers will benefit from the bigger paychecks. But about two of every three full-time minimum-wage workers get a pay raise anyway within a year on the job. Meanwhile, those who lose their jobs or who never get a job in the first place get a minimum wage of $0.
Mr. Neumark calculates that the 70-cent per-hour minimum wage hike this month would kill “about 300,000 jobs for those between the ages of 16-24.” Single working mothers would also be among those most hurt.
Keep in mind the Earned Income Tax Credit already exists to help low-wage workers and has been greatly expanded in recent years. The EITC also spreads the cost of the wage supplement to all Americans, not merely to employers, so it doesn’t raise the cost of hiring low-wage workers.
For example, consider a single mom with two kids who earns the current $6.55 minimum at a full-time, year-round job. In 2009 she receives a $5,028 EITC cash payment from Uncle Sam — or about an extra $2.50 per hour worked. Other federal income supplements, such as the refundable child tax credit, add another $1,900 or so. Thus at a wage of $6.55 an hour, her actual pay becomes $10.02 an hour — more than a 50% increase from the current minimum. (See nearby table.)
But that single mom can’t collect those checks if she doesn’t have a job, and the tragedy of a higher minimum wage is that it will prevent thousands of working moms striving to pull their families out of poverty from being hired in the first place.
If Congress were wise and compassionate, it would at least suspend the wage hike for one or two years until the job market recovers. We know this Congress won’t do that, but someone has to speak up for the poorest, least skilled Americans.
_____________________
Another reason to to keep your daughter OUT of sports reporting.
__________
Awwwww …c’mon, he was just giving her a “hard” time!
Nice post Jake. I have been on the Jacksonian band wagon for awhile now and the fibs said get in today so I did. GG and GDX August calls again. Unfortunately I got nervous and sold them both today, but will get back in around the same levels. Any IT or LT thoughts on TC? Would love to buy that again, but steel just seems weak here. Do you think 8.75 will be seen again in the short term? (1-2 weeks)
Thanks in advance.
Let me take a look closer tomorrow morning, and I will get back atcha. Long story short — she ain’t dead yet.
_____________
No Horns… looks like TC broke out of it’s consolidating triangle about 2:30 or so yesterday, and has not looked back.
I would feel a lot more comfy on breaks of 10.85 and $11.00 however.
__________
Thanks Jake. I was looking for 11 myself if there wasn’t going to be a substantial pullback. I am still not ruling this out. Earnings always mess things up a wee bit, but don’t believe we have seen the IT bottom quite yet. I think things will be more technically correct once the banks are done reporting.
Thanks for the insight.
Horns… changed my mind looking at the weeklies… I do think TC is a buy here again.
New post….
Meh, she was putting it out there and he was taking advantage of the opportunity.
Yeah, I’m sure she’s a model professional sports reporter in her tight top and short ass jean mini-skirt.
NG poking it’s turtle head out of the channel as we speak. ($4.29 @ 11:30)
Off to yet another meeting.
________
BIOS moving again.