Tuesday, May 15, 2012

DEVASTATION!

After the PM trade was nuked by the Fed, the faces on traders may resemble these souls. It was a different time but the players back then were the same, and there is no guarantee the outcome of this current debacle will not end the same for billions on this earth. The desolation of today's move may foreshadow greater and more foreboding changes coming to our lives as the Grand Supercycle closes in on the overleveraged developed world. You can't help but notice the ill winds blowing across many sectors of the world's economy and if the PTB lose control of CONfidence then you will have nothing to prop up the illusion there is a functioning economy. CONfidence is essential and that is where you personal trading pain enters the picture. With the headline price of PMs rising precipitously then the game is over with the run on all fiat currencies. Will this happen? I truly hope not, but this is a very dangerous time for you to assume that a rush for the exits cannot occur. As you read this a dangerous run on many Euro banks is occurring with fear building that the PIIGS can suddenly collapse and their accounts vaporized. It is essential to keep PMs......gold in particular...from appearing as a "safe haven". You hear that phrase continuously on CNBS.....that gold is no longer a "safe haven". Of course if you measure it in terms of the percentage move on a smaller time scale such as months then yes, one could hardly call a 20% drop as safe. But if you look further down the road you may have to change your mind. If you believe the dollar will retain its value as THE SAFE FIAT king then be careful if someone offers you some swamp land to invest in. This is the trade you are in. I am telling you the other side of the trade is the global fiat empire/Fed.....and they are fighting to retain the dollar. They are not going to give this trade up easily, but it will swing the other way so be patient. Buy your physical and say thank you for the discount. They've held this nicely for you. GL

42 comments:

  1. Few items from Phil's site:

    He believes with China, Europe, and commodities under stress, US equities may benefit since people have to put their money somewhere.

    Minister of International Finance estimates that Greece's exit could cost $1.3 trillion.

    900 million was withdrawn from Greek banks this month and liquidity is drying up.

    Personal observation: I frequently look at the eBay prices for a roll of 1964 Kennedy half dollars. There are always some on sale from private sellers. Recently, there are much fewer being offered. I wonder if sellers are holding them and waiting for a rebound in silver prices.

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    1. yes doc.....this is how its playing out and as far as silver goes the beatdown in physical is simply a gift

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  2. Question, If you had a preference in which metal to buy right now, which would it be? I want to buy some gold but silver is very cheap right now. Cannot figure out which to buy....any suggestions

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    1. Silver moves much better in my experience. Of course that knife cuts both ways so be ready :) That only applies to trading though. If you're buying as insurance I would say go 30% gold, 70% silver. But that's just my opinion.

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    2. At the current prices, silver seems to be the better bargain if you anticipate a rebound in the short term. Silver can go back to $35 while gold gets to $1,700. That's a 10% increase in the gold price and a 25% increase for silver. It would work in the reverse after a rally whereas gold would be the safer bet to protect from a steep drop.

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    3. if you are buying physical then gold is easily transportable and not easy to sell in SHTF scenarios IF you needed to sell it (limited buyers due to expense) If you have silver....particularly junk silver then you can use it for a medium of exchange in many scenarios......large ammounts of silver not easily concealable compared to same amount of gold. If you are looking for comparative appreciation then silver should outperform gold......bottom line more silver than gold unless you are anticipating mobility

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    4. Thanks all. I appreciate the input. I have current have more silver than gold. I have added a good amount to both since December but would like to add some more. Looks like the metals are going down further.....GL all!

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  3. Also forgot to mention from Phil, he wrote that in Italy, apparently a banker was shot at, so the government is considering using their military to protect the bankers. You just can't make this stuff up.

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  4. GM guys. Nice bounce here, but I won't be convinced until there's confirmation. Wondered what you think about this chart: http://news.goldseek.com/GoldSeek/1337145600.phppersonally don't think it will be 2-1/2 yrs. before the launch because it looks to me like situations are more magnified now.

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  5. http://kingworldnews.com/kingworldnews/Broadcast/Entries/2012/5/13_Michael_Pento_files/Michael%20Pento%205%3A13%3A2012.mp3

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  6. http://www.silverseek.com/article/backwardation-gold-and-silver

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  7. http://news.goldseek.com/GoldSeek/1337145600.php

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  8. That last one is the one I posted Kli. What do ya think? Tia.

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    1. agree that this is very possible but time frame may be shorter

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  9. Euro sinking like a stone...

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    1. Here is the reason:

      ECB STOPS MONETARY POLICY OPERATIONS TO SOME GREEK BANKS AS RECAPITALISATION NOT IN PLACE -CENBANK SOURCES

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  10. A bounce to about 1.30 in the Euro would tempt me something fierce to take the loss on the miner calls and switch to FXE puts. We shall see if we get it.

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  11. This is one of the best shake downs I have ever seen. Just like natty b4 it turned...

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    1. actually its starting to look like NG is building massive inverted h&s on daily... right neckline now in place...

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  12. http://www.zerohedge.com/news/canary-gold-mine-historic-move-japanese-pension-fund-switches-gold-first-time-ever

    Shop while supplies last.........

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  13. Last stand territory... will it hold?

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  14. The beat down on precious metals continues.

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  15. just remember they have the potential to take gold easily to 1400 or below.......BUY PHYSICAL

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  16. Silver to 17 is my wish for last big physical buy

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  17. Check out SD, nice triple bottom?

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  18. all please keep your eyes on the bank's ATM machine lines.....Cashin just said the greek lines are to be watched

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    1. The powers that be are beginning to push their luck...

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  19. I've got $24 on slv tomorrow at the 61.8 fib on the entire move.

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  20. sorry, also be a undeniable 5 waves down and fits a FIB time line...

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  21. I have a question. If Greece goes belly up (which looks very likely at this point). How would this effect gold?

    It will surely cause the destruction of the Euro, but wouldn't that strengthen the dollar and therefore decrease the price of gold?

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    1. it may jay but its really up to the PTB to determine when gold is released to move up.....underlying this trade are a number of factors and guessing how they play it is just that..guessing....hehehheheeh

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    2. it really is a matter of how much physical bullion they are willing to sell the the east at this artificial price.......and they are selling a lot right now.....i do not believe they are trying to "break" the trade.......the market will determine it ultimately and they know that.....i do believe they are trying to keep it controlled

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    3. this is what i am referring to.... Soros, PIMCO, Paulson, Texas Teacher Retirement Fund Buy Gold in Q1
      Prudent money with an understanding of gold's long term diversification benefits continues to accumulate gold as seen in the latest SEC filings.

      Billionaire investor George Soros significantly increased his shares in the SPDR Gold Trust in the first quarter. Soros Fund Management nearly quadrupled its investment in the largest exchange-traded gold fund (GLD) to 319,550 shares - compared with 85,450 shares at the end of the fourth quarter.

      John Paulson maintained his large stake, the ETF’s largest stake and other large and respected institutional buyers were PIMCO and the Teacher Retirement System of Texas.

      Paulson, 56, who became a billionaire in 2007 by betting against the U.S. subprime mortgage market, told clients in February that gold is a good long term investment, serving as protection against currency debasement, rising inflation and a possible breakup of the euro. http://goldsilver.com/news/soros-pimco-paulson-texas-teacher-retirement-fund-buy-gold-in-q1/

      Eric Mindich’s Eton Park Capital also bought 739,117 shares in the SPDR Gold Trust during the first quarter. The New York-based fund held no shares of the exchange-traded product as of December 31.

      Overall holdings in the SPDR Trust rose just over 8% in the first quarter, after a 2% gain in Q4 2011.

      Global holdings in ETFs backed by bullion have seen slight declines in the last 3 months, the longest losing streak since 2004. Assets in the SPDR Gold Trust, the largest fund backed by bullion, reached at 1,309.92 metric tons on Aug. 8 and appear to be consolidating at these levels as were at 1,277.11 tons as of yesterday.

      Paulson has to date been the biggest holder of SPDR shares, using them to hedge currency exposure, while other managers such as David Einhorn and Daniel Loeb have favoured more discrete, more cost effective and safer option of owning physical gold bullion.

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  22. this is the link for the above

    http://goldsilver.com/news/soros-pimco-paulson-texas-teacher-retirement-fund-buy-gold-in-q1/

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  23. must watch vid above from comiskey

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  24. What site should I look at to buy silver?

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    1. i use gainesville coin (google it) and have had no problems BUT that is NOT and endorsement......just a fact.

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    2. Thanks Kli, I will check them out.

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  25. so, like, why? so like why is silver up 2 percent tonight? lol. Too funny. Impossible to catch a reversal intra day....

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