Wednesday, December 12, 2012

QE ANNOUNCEMENT SLAPS GOLD DOWN

This is what I think of gold
The announcement of massive further QE by Dr. Bernanke resulted in a severe pullback in the more thinly traded Asian Market tonight. Asian gold traders realizing that the printed money tsunami announced by the Fed today would put all gold at risk and dumped a massive number of contracts in a nanosecond in a thinly traded market. Apparently the Asian market is where one needs to get rid of a massive paper position when you want the best price for your gold. These traders apparently believe that dumping the contracts all at once  will  create  the "best" price for their gold contracts.

Spending anymore time than the above sarcasm on the overnight price action serves no useful purpose. If you still have some cash in your accounts then buying any red miners at the open you may have on your shopping list may be a good strategy. I will not be buying since I am fully invested in the miners and could care less at this particular juncture what they do in the short term. Headline price of gold being driven down after the QE announcement is not surprising and will be short-lived most likely. The price action in miners today and recently hints strongly that real buying has begun. I have tried to help you expect the volatility and counter-intuitive moves in PM equities and I will reiterate that more volatility is ahead.

These are desperate times for the game so be aware of the pitfalls of leveraged trading. If you cannot afford to trade in this market then get into physical now....otherwise strap in......this flight is going to get bumpy. Remember they don't want YOU in this trade and they will try over and over to shake you out. gl


23 comments:

  1. Yes, Kli, There Is A Santa Claus! hehehehe

    Doc, Sorry if I put the whammy on things but you had to know this was coming!! Besides stuff like this should motivate one to get their Christmas shopping done early!

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  2. Tom, if Christmas shopping involves the purchase of Gold & Silver coins, I'm all for it.

    Phil Davis pointed out that the Feds needed to sell 21 Billion in 10 year notes yesterday and 13 Billion in 30 year notes today. Creating some fear helps sell the notes.

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  3. that's called ouch! my small paper gold trade blew up on me :(
    thanks kli for the warnings.

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  4. Doc,

    This might cheer you up some....

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/10_John_Embry_-_This_Is_Why_Silver_Will_Smash_Through_$100.html

    Hehehehe I was not refurring to fighting the Hordes at the Mall's or Wally World.....

    On a side note if you really want to observe True Unadulterated Selfish Human Behavior just take a spin to the local Wally World by me!!

    Got sent on a Mrs. mission the other night to the local Wally World, WOW, is the best description I can come up with. Came back and told the General never again! Would rather sit bare a$$ on a fire ant hill than do that again!!!

    If what I saw was indicative of what goes on on Black Friday's..... People are just out of their mind's

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  5. Tom,
    On the Yahoo Finance page, the was an article about the top 15 gifts NOT to buy a woman. Fishing lures were not among the 15 items. This would imply that it is OK to buy fishing lures for your wife. You can buy directly from Cabelas over the Internet--no need to go to the mall at all.

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  6. GOOOOOOOD Morning all... just flipped on my charts and of course the miners are red with gold down hard. So if the game plays out the miners losses should be reversed within a couple of trading days or even today.....

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  7. silver getting crushed..hehehehe.....this is just too rich....this should shake some leaves

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  8. Doc,

    Sounds logical to Me but I won't be doing any fishing round these parts for say......Fifty years! Not with all the crud that was and still is being dumped in the bay's, do like Cabelas, has some good deals on Bear Spray :)

    for your listening pleasure while you trade today:

    http://www.youtube.com/watch?v=jyCiNAgfcUs


    hehehehehe


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  9. Good morning. FWIW - My sales this Christmas season at my garden center have been strong. Up over 12% from last year. Even with rainy weather last weekend, we had good sales. Trees are almost gone already! Even with some of my customers having beach homes destroyed from Sandy, people are still spending money. Most of my sales are coming from credit card. So easy to spend a little extra with that magical plastic, heheheeh. Credit card sales are almost 80% of my transactions now! Anyway, I'm still underwater on my HL, PZG, and EXK. Good luck everyone.

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    1. Gl ryan and put some of that profit into physical.......your miners will take care of themselves

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  10. So right now there is a sense of desperation about gold. All of the developed world economies have been built on paper currencies. This is why governments are so active manipulating gold. That’s just the way it is. If people read the ‘Holy Grail’ article on your site they will realize we are headed to a point of inflection where the manipulators will have to eventually give up.

    Right now you can buy gold, which is headed to $10,000, at $1,700. So these prices which are manipulated are simply a gift. When I said oil was a $100 commodity, it was trading lower than where silver is today. Everybody said I was crazy. I’m not crazy. Gold is heading to $10,000 with or without people reading this. Gold and silver are really the de facto currencies in today’s world and they will be the leaders going forward, not paper assets.

    The one caveat would be the miners. Quality miners are a paper asset investors can believe in. A great deal of big money has been patiently positioning themselves in key mining stocks just waiting for the explosion they know is eventually coming.

    But everyone should own physical gold and silver. Once you start buying gold and silver it’s hard to stop. Once you get it in your hands you just want more. So for people who are discouraged in gold or mining shares, don’t be. Your day is coming and it’s coming sooner than you think.” KWN today Leeb

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  11. there go the miners with the overall market.......just have to watch the close

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  12. http://lewrockwell.com/napolitano/napolitano80.1.html

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    1. Ya Think!!!

      http://www.wired.com/threatlevel/2012/12/public-bus-audio-surveillance/

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  13. Oh well when you look back on this price point on these miners you will wonder what were you ever thinking when you worried about your fiat investment........as they say......this too shall pass

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  14. For the "Do as I Say" but not "Do as I Do" file.........

    http://www.reuters.com/article/2012/12/12/berkshire-buyback-idUSL1E8NCITK20121212?feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews&rpc=22

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  15. going to my favorite coin dealer this weekend to buy christmas presents for the whole family. it's been a tradition since early 90's. austrian phils are great now that the kids are doing more and more music at school.

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  16. Hello all...gone all day but what a shock. Just look at good ole ppp tho. It was the one GREEN I had. If it weren't for you guys, I'd probably be worried. But with your undying help, I am having a grand holiday season and wish you all the best, too. Ryan--good to hear you're doing so well. A big thanks to you guys for putting up with me all these years--Sis

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    Replies
    1. hang in there nancy this is all about control of this trade....its disgusting but NOT a surprise

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  17. tragedy today with another 20 something male disenfranchised statistic raised on desensitizing video games with no hope ....

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  18. We talked about that at work today. It is difficult to have much hope. There is so much that has yet to play out.

    On a lighter note, it is the office Christmas party tonight. Leaving to get ready now.

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  19. Having lots of computer problems, tried everything & the guy that helps me thinks it's the modem. I'm not convinced. Even my toolbar's all messed up. Going to NY for Christmas...if I cannot get this straightened out (it comes & goes) BEst to all of you my good buddies. Feeling extremely sentimental this year. Just because one never, ever knows.

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