Tuesday, January 26, 2010

Scared of Falling Gold Prices? Heheeee!

From Anon:

The banking houses privileged to meet with the Rothschilds to set the world price of gold are known as “the Club of Five”. In 1958, they were : N.M. Rothschild, Samuel Montagu, Mocatta and Goldsmid, Sharps Pixley, and Johnson, Matthey.

I know this has changed over the years, but that the Rothschilds family likely still controls the entire process and is at the heart of it, regardless of what happened in 1984, since they have been doing this for 200+ years.

In any case, as long as these same greedy DNA-mutated emotionally-fractured infantized adults are in control, I don't hold out much hope for gold. Silver and other metals, maybe. I think what we'll see is the collective mainstream media shunning gold as a safety net, the coordinated manipulation of prices... which will result in the collapse of the secondary price market reflected in the premiums... a double price collapse in gold brought on by the ignorance of the commom man.

Silver may do better, but I think the ultimate goal is to cut off all exits and steal the wealth of the US middle class, and these people are ruthless and almost religiously inspired in their zeal.



This yr's reasons for Gold to fall OR rise, Place your bets you greedy gamblers,heheeeeeee!


Reasons for Gold to fall:

The stockmarket has been climbing without any improving fundamentals long enough to be due for a significant correction and the gold price has followed the DOW down 51% of the time in the last half of 2009 (gold stocks followed the DOW down 71% of the time).
China has indicated that they plan to begin monetary tightening.
There is hot money right now in gold that will likely flee now that it has stopped going up.
The “dollar carry trade” could unwind, removing many gold hedge fund positions.
If the government is unable to print more money than is being lost in the economy due to loan payoffs, defaults and decreased money velocity then our economy will tilt again towards deflation. Even if you believe that the government will eventually be successful in creating enough inflation, it is not impossible that they fall behind the curve for a while if things start to happen quickly, resulting in a temporary loss in gold prices.
JP Morgan and the other big banks seem to be able to create nearly infinite amount of short positions to keep the price down and the political will to stop that seems to be largely absent.
The amount of paper gold substitutes such as GLD is arguably much greater that the actual amount of real gold available, causing dilution of the investment demand in the same way as when a company issues a large new set of shares.
Gold is under a downward sloping trendline and well under its 50 day moving average.
Gold stocks (GDX) are under a downward sloping trendline, well under its 100 day moving average and is now lower than its December 2009 lows.
Dehedging from gold companies may be almost over now.
As we saw in the Fall of 2008, Gold (and certainly not Gold Stocks) do not necessarily benefit and can in fact be substantially harmed by safe haven flows in a panic.

Reasons for Gold to rise:

Central banks around the world continue to print money without end in their attempt to keep the financial system solvent. For example in December alone, Freddy and Fanny were given an infinite checkbook by the government.
None of the excess that caused the financial crisis appear to have been solved:
Banks are still massively overleveraged.
Banks know that if they take on risk they will be bailed out, so they are still taking on huge risks.
Unemployment is still skyhigh with no indication as to where any new jobs might come from to bring it down again.
The is a huge overhang of homes that are technically in default but that are being held out of the market by the banks.
Alt-A loans and Options ARMS are resetting this year and they are bigger than subprime.
The government will be unable to substantially raise interest rates for the forseable future, leaving us in a net negative interest rate environment.
Companies that hold huge short positions risk a default if counterparties demand physical delivery of their metal. There are some indications that this could occur in 2010 (in fact there are some rumours of this occurring already right now, with huge premiums being offered in return for cash settlement).
Central bank selling has turned into net central bank buying.
Many large gold companies have cleared large portions of their hedge book, indicating that they expect higher gold prices.
Contrarian investing disagrees with most of the articles in the mainstream media say gold is overvalued and going to fall.

http://news.goldseek.com/GoldSeek/1264349100.php

10 comments:

  1. kli... like the new sheeple picture in your blog.

    ReplyDelete
  2. Ben will keep the presses running. Its the only way to cover the bets I mean debts of our country outside of going BK. Long term gold will be golden.

    ReplyDelete
  3. Kli: "JP Morgan and the other big banks seem to be able to create nearly infinite amount of short positions to keep the price down and the political will to stop that seems to be largely absent."

    Who the hell is trusting enough to stand on the other side of those contracts though? If I bet 100 people $100B each that I drop a rock and it will fall up, anyone expecting to get paid is a moron.

    ReplyDelete
  4. BTW Jesse is on fire lately: http://jessescrossroadscafe.blogspot.com/2010/01/we-are-all-central-planners-now.html

    ReplyDelete
  5. Stock market running out of legs here and a small dollar rally has taken shape. short term for gold down 980 to 1012 target area. Long term
    very bullish. I will be adding on the way down both miners and the real stuff.
    Thanks kli
    Matt

    ReplyDelete
  6. This is an entertaining video, though it's also scary when you realize how uneducated so many people are, and that they are willing to act on their ignorance --

    Mark Dice: People sign petition to "increase inflation to 100%" to cause hyperinflation.
    http://www.youtube.com/watch?v=vJtS9CuyuaU

    Forbes magazine this last week announced that gold was going below $500/ounce. All the puppets of the ICB's (international central bankers) have been quoting the same news bites. I'd say this is a gold/silver shake-out and that there is genuine concern among the ICB's that so many Americans are holding gold/silver, to protect their wealth.

    The NWO can't happen according to plan if the sheeple aren't financially bankrupt to the point where they will gladly give up their rights and also take on a green job in order to survive.

    ReplyDelete
  7. The banking houses privileged to meet with the Rothschilds to set the world price of gold are known as “the Club of Five”. In 1958, they were : N.M. Rothschild, Samuel Montagu, Mocatta and Goldsmid, Sharps Pixley, and Johnson, Matthey.

    I know this has changed over the years, but that the Rothschilds family likely still controls the entire process and is at the heart of it, regardless of what happened in 1984, since they have been doing this for 200+ years.

    In any case, as long as these same greedy DNA-mutated emotionally-fractured infantized adults are in control, I don't hold out much hope for gold. Silver and other metals, maybe. I think what we'll see is the collective mainstream media shunning gold as a safety net, the coordinated manipulation of prices... which will result in the collapse of the secondary price market reflected in the premiums... a double price collapse in gold brought on by the ignorance of the commom man.

    Silver may do better, but I think the ultimate goal is to cut off all exits and steal the wealth of the US middle class, and these people are ruthless and almost religiously inspired in their zeal.

    ReplyDelete
  8. Analyze,

    DTO continues to do well, and SWC gave the gap again, nice 1030 to 10.60. I like this market.

    palmer

    ReplyDelete
  9. Palmer, I think the miners on gaps are the lowest risk trade available. I have a CAT short on here that I intend to hold for a couple days, it ramped end of day like Obama was going to wear one of their t-shirts during his address tonight lol. Those counter-moves are part of its natural downward progression after gap-downs, usually falls short of retesting gap resistance, so it should pan out. Very easy to get shaken out of positions in this ponzi. - Analyze.

    ReplyDelete
  10. Quite succinctly put! Will quote in my next revision of my post: http://crisismaven.wordpress.com/2010/01/24/do-we-see-a-gold-bubble

    ReplyDelete