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It’s quite probable that gold has entered a “transitional resting period” as Martin Armstrong pointed out in his most recent letter when his key identified 1372 level was on the verge of giving way.
Gold $1345.10 UP $2.70
Silver $27.32 DOWN $0.21Mr. Armstrong’s word “transitional” in this gold bull market is a euphemism for laying back and take a rest where declining days are predominant and emphasis is on greater daily percentage declines than advances.
Access to Mr. Armstrong’s letter,” Are You Ready To Rumble,” can be accessed at http://www.martinarmstrong.org.
To add my own two cents in, it was not favorable when the gold price recently sold below its 50 day moving average level at just above 1380 and yesterday, when it cracked its 100 day average line in the neighborhood of 1353.
It is expected that the dark forces will heavily lean on the gold price it nears the 1350 area and just above. While the price remains under these two levels, it appears gold will experience Armstrong’s traditional phase with lower prices.
It will be important to read Armstrong’s analysis of gold in his recent letter. This, as he stated, is all totally normal within this bull market.
You should prepare yourselves with resolve in the weeks ahead and possibly for a few months, or so.
At the outside, bull markets can surprise followers with change of direction to the upside without notice and can be quite powerful within the primary trend.
Let’s hope this new transitional period ends sooner, rather than later.
Yes, I’ve been $-averaging in each month as well, but with m-funds, not the real stuff. This is where I’ll start.
Rick
I buy some gold and silver each month and have been doing so for some time, with silver receiving most of the allotment in the last two years.
I believe that’s the best way to accumulate it. This is my insurance policy against the know-it-alls messing with our money.
It wasn’t that long ago when ‘Gold Resting at $1345/otz’ would have seemed like a headline from an outter-space movie.
No, I still haven’t pulled the $$ from the market mutual-funds…but remember telling myself to do it if we bounced back to 10K on the Dow.
I guess the only thing keeping me from doing it is not doing it…because the title of this topic has survived for five years+ ….and there is nothing but impending inflation looming. (Okay, Bluejay, I am about 25% in gold..considering that move to 75%…so, why am I shy?)
Perhaps not shy of doing it…just not doing it. I know that when my $$ is sitting in the most valuable of hard assests this planet has ever known, I’ll breath a sigh of relief.
Thanks Bluejay. Time to go.
Gold $1341.30 DOWN $4.30
Silver $27.42 DOWN $0.05The war is on.
The CME, again, raises margins on gold and silver contracts. If this isn’t ludicrous with weakness in these two metals, I’d like to know what is.
This has nothing to do with the public’s interest. It is all about protecting the losing positions of its shorting members who remain under water as a result of past months strength in these metals. The CME, not only is a house of cards with its phony paper products, it’s a brazen manipulator with the continuing blessings from federal regulators. No wonder investors of all types are exiting markets of all kinds, it’s a fixed game.
This is just another inflicted hiccup to mess with your mind in their attempt to scare you out of your position in gold and silver so their member buddies that don’t know how to trade can get a free pass for their mistakes.
It’s just a matter of time before the physical market in gold and silver crushes the comical paper market.
Gold $1345.90 DOWN $24.60
Silver $27.54 DOWN $ 1.23The miscreants continue their paper charades on the Comex today. Selling the paper products, sorry we don’t have the physical, in the form of special drivatives, futures and options continues to suppress gold and silver prices. Isn’t this a great game, watching the wagon pull the horse over our rose garden? What’s next, will they be telling us that investing in municipal bonds is the safest bet in town?
Unfortunately, we must indure this semi-sophisticated attempt to currupt our minds. Don’t let this sideshow of bogeymen running all over the precious metals markets fool you. Stand fast and increase your holdings as a dying fiat will NEVER replace gold and silver in this environment regardless of the music they are playing.
There has never been one instance of “striking up the band” that prevented a sinking ship from going under.
And…imagine if today’s un-funded liabilities had funded themselves with the backbone that gave birth to the US State of California, embracing its rich heritage of mining gold rather than trashing it.
Imagine also why they aren’t.
No imagination needed. Their design is to confiscate.
What’s behind this anomaly?
Gold $1373.30 DOWN $14.70
Silver $28.72 DOWN $ 0.93
USD 79.24 DOWN 0.74Broken down even further:
(figures supplied by kitco.com)Gold price change due to a weakening USD(U.S. dollar.)
UP $15.10Gold price change due to predominant sellers.
DOWN $29.80.Behind this classical take-down are the tracks of your favorite keeper spreading its decadence through its puppets, the bullion banks.
Remember, this current raid is taking place at the same time that the dollar is getting thrashed. Remember, 2008? That year the bankers raided the gold and silver markets unmercifully, broke all the rules selling contracts that had no physicsl behind them, naked short selling. This time, all the unethical tools are being employed again to hurt the folks who understand that they must hold gold and silver to protect their wealth.
All thoughout history fiat currencies have financially ruined millions of families around the world.When you understand that our keepers hate gold, along with silver, these attacks don’t surprise anyone that thoroughly comprehends their intent. Unfortunately for the government and the money changers, gold is an international currency. In time, over and over again, gold will be the consistent winner aside from these blantant sideshows.
When is the last time you have heard on television or read in the papers that gold has increased in value nearly 20% every year during the past 10 years?
How California Has Failed, Again.
If Calpers had invested in gold over this time their stock market returns would have been significantly different than the embarrassing 1.2% return that they have shown for the California public employees retirement fund.
If the State-run fund had any brains it wouldn’t be in the fix that is in today, underfunded by 50%. One has to wonder, how many “know it all” State employees it takes to screw-up thousands of retirees future?
I’ll match my 10 years return, anytime, with any of the over-paid California State employees with their big pensions who were in charge of making financial decisions for Calpers for the same time.
The real sad thing is, that the wealth contributed to Calpers for future pension payments, most probably, has lost nearly 50% of its real purchasing power during period, or so. As our currency continues to be debased by the Fed, expect this percentage to consistently grow. Calpers is a complete failure acting on the behalf of hard working State service employees.
Another relevant question is, how much money was wasted in running this organization into an almost zero performance return operation?
Gold $1369.80
Silver $28.69The following excerpt is from today’s International Forecaster:
As the destruction continues in an insolvent banking system banks continue to speculate in world markets again increasing leverage at the cost to the economy of not lending to most small and medium sized businesses. The Treasury carry trade is far more profitable. All this in an environment of flash trading, which is front running and is illegal, as is naked shorting, which the SEC refuses to do anything about. In addition, of course, is a rigged manipulated stock market whose license to steal was granted under Executive Order. These mechanisms are used to take markets in whatever direction government and the people who control government want them to go. Is it any wonder the public investor is leaving the markets in droves?
Gold $1371.10
Silver $ 29.07In the past few days gold is down from the $1425 area while silver is down from above the $31 level. Adding to the downside pressure, gold sold beneath its 50 day moving average at about $1378 which should influence, as well, the silver prices to drift lower for the time being.
Most disturbing during this weakness is the dumping of excessive amounts of conterfeit gold and silver related shares known as naked short selling. This occurs when sell orders are accepted by the brokerage firms with no intention by some sellers of ever delivering the physical shares to them for submission to the clearing corp.
When it comes time within three days for some sellers to produce shares, only legally issued by the transfer agent, NOTHING HAPPENS. No one can know how many shares sold represent nothing but “hot air” but the clearing corp.
Either the clearing corp. is not reporting undeliverable shares to members of the exchanges or the OTC or they don’t care. It’s quite obvious connected people are the only ones that get away with this this type of fraud. If you and I tried it, the brokerage firms would come down hard on us and close our accounts.
For all intent and purposes, the folks behind this blatant sham are most likely the investment banks and the regulators that have been told by higher-ups to look the other way. It’s plain and simple, it just couldn’t be anything else.
So what do we do as shareholders in this environment? You do nothing as we are the hostages. You just watch as the money is temorarily ripped from our pockets in the short term or you get really scared when prices dive and you throw in the towel letting the criminals win thus enabling them to cover for a profit.
The same thing happens at the Comex. Naked short sellers force down gold and silver prices with no physical metal behind their executions. If all the holders of gold or silver contracts demanded physical delivery the Comex would have to close their doors, for it is certain the gold and silver are not there.
What we have in markets today is a bucket shop operation being co-mingled with real fully paid investors and sellers with physical shares to deliver. With the two classes of participants in markets these days, it is painfully clear we are not the favored ones.
Below is a link to a video with an educational message concerning silver that might surprise you.
Gold and Silver to advance during the first half of the new year. James Turk forecasts $1800 gold and $50 silver. Check out the full interview of James Turk by Eric King.
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/12/30_James_Turk.html
Gold $1421.60 UP $17.60
Silver $30.91 UP $ 0.45
Copper $4.42 UP $ 0.08Copper was added as it has been very strong in December and is expected by Bob Chapman to hit $6 a pound in 2011.
Gold in the last trading day of the year put in an impressive close, as did silver. If a close on gold occurs in the excess of $1480, it is expected to go ballistic according Martin Armstrong. Silver, with a close over $30, is very near to going ballistic according to Eric from http://www.jsmineset.com.
Below is a link to a story entitled Hyperinflation Will Drive Gold To Heights Unthinkable. It is written by Egon von Greyerz from Gold Switzerland.
Gold $1371.70
Silver $28.85A little concerned with the weakness in gold today? You might not be after reading the few exerpts below from the December 15th article, “Chinese Take-Out(of US economy) by Jim Willie:
The global monetary system is collapsing, led by sovereign debt ruin and amplified monetary expansion that brings no viable solutions anywhere. The major banks are collapsing in insolvency and futile defense of their broken fortresses. Government deficits are spiraling out of control, whose solution in fiscal austerity only makes the economies weaker. The metals exchanges are being systematically drained, even as revealed for the leveraged high risk in fractional methods. They buy and sell paper gold and paper silver without too much benefit of physical, permitting naked short sales by the biggest US and London banks. Their game is being called. The Swiss banks are under critical eye for foot dragging on gold & silver withdrawals from Allocated accounts.
The Chinese have done something remarkable, only to be done if they know the game is over and the victory over fiat paper money is complete. The Chinese have laid out their game plan, their modus operandi, their tactics if not strategy, through an anonymous London broker. Hats off to the King World News for sharing the invaluable information that should encourage even the most timid and reticent investor. The Anglo bankers are stuck!! They are running out of physical metal to sell in a fractional scheme. They cannot afford to pounce too hard on the price, with either naked shorts or higher margin requirements. Doing so only plays into the Chinese hands, which are grabbing all the bullion available. So the challenge is for the Anglo bankers to control the pace of the demise of the Gold & Silver metal market. This is game over. In these times of monetary hyper-inflation, called euphemistically Quantitative Easing among gentlemen, the prospects for a double and triple in the Gold & Silver price is utterly obvious.
Sorry for the entra entries but tonight for some reason, the keyboard is somewhat sensitive and appears to have a mind of its own.
The feeling is apparent that bear forces are attempting to take gold lower, led by aggressive pressuring each time silver nears and breaks the 30 level. Aside from this, gold remains firmly entrenched in its bull market.
It’s no secret from viewing the gold chart that an effort has been in the works since early October from preventing the metal from establishing itself above 1400. What’s happening now is the bears are hoping to destroy a short term ascending trendline at 1376. Also, they have their eyes on invalidating another support area, this one from an established ascending 50 day moving average line at 1368.12.
This is just how the bear mind works, always looking for opportunities to erode confidence in the gold market by hacking away at perceived areas of support to create their little panic sell-offs.
In this case, their trick plan is to crush these two levels and hold prices below with more selling if gold tries to push back through them. Will their plan work?
Lower down there is support at the 1346 to 1350 area from a line extended through two recent bottoms(1320 and 1330).
Jim Sinclair states 1650 is coming in January. With a last of 1381.70 the big push, for him to be right, will have to start soon. If Mr. Sinclair is right, Mr Martin Armstrong’s prediction of $5000 comes into play. Mr. Armstrong stated, once the top of the ascending monthly channel line is bettered just below 1500 then its up, up, up and away.
Will PacMan eat the shorts in the coming days or not? Stay tuned.
Gold $1380.80
Silver $29.01Gold $1400.30 UP $5.80
Silver $29.73 UP $0.18If you like silver, this an opportunity.
Currently you can purchase pre-1964 silver coins for under silver content value, not to mention the 10% copper in each coin. Lately, copper has been hot and is over $4 a pound.
At the following website they are offering half dollars, quarters and dimes at about $27.50 for their silver content with silver’s last of $29.73.
http://prostores4.megawebservers.com/madeyourday16_com/-strse-Special-Offers/Categories.bok
I have dealt with these folks before with no hitches. All purchases are shipped free of charge with no sales tax from the State of Washington.
I’m going for more tonight.
Gold $1387.60
Silver $ 28.76Below is a linked chart from stockcharts.com depicting the recent weakness of gold against silver, basically saying, silver had been the place to be for folks seeking maximum protection against the general meltdown of public confidence in their governments.
Gold $1387.60
Silver $ 28.76Below is a linked chart from stockcharts.com depicting the recent weakness of gold against silver, basically saying, silver had been the place to be for folks seeking maximum protection against the general meltdown of public confidence in their governments.
From Jim Sinclair at http://www.jsmineset.com:
In the News
Posted: Dec 06 2010 By: Jim Sinclair Post Edited: December 6, 2010 at 10:43 pmFiled under: In The News
My Dear Friends,
Gold is clearly on its way to $1,650 and beyond. I have told you for many years that there was no PRACTICAL solution to the problems created by OTC derivative manufacturers and distributors namely our beloved “banksters.”
By practical I meant a solution that itself would not cause more dislocations than the problem to which it was applied already has. Now you see political realities both in taxation and quantitative easing.
Friends, there is no practical way out of this problem – none. We are going to inflate and spend as the entire Western world financial/political managers again try to kick the can further down the road.
No further proof is required.
Regards,
Jim
Gold $1398.10 OFF $26.50
Silver $28.51 OGG $ 1.57Government carpet bombing of gold and silver today has sent both metals lower. This is no less than a scare tactic. It wouldn’t surprise close followers of these markets if the disinformation dial gets abruptly turned up to support these shenanigans.
Can you imagine, selling crate loads of paper contracts(??) trying to make people believe they are just as good as the real thing? What a joke! Just try and take delivery and the Comex boys do everything to dissaude you. Just ask Mike. He had an associate that went through the Comex meat grinder when he wanted his gold. The Comex boys, basically, told him to go stick-it. What a joke!
What we’re probably witnessing today is a scared and freightened Fed and Treasury shooting the messenger that is telling us, these guys don’t know what they’re doing.
Gold $1410.90 OFF $3.60
Ben Bernanke has just finished speaking on 60 Minutes back East. For us on the West Coast the buffoon will be coming on TV in a few hours.
Ben has, probably, by himself destroyed more of our wealth with all of his free hand-outs to his Lords, the international bankers, than any other person in the World’s history. If anyone believes anything that comes out of his forked tongued mouth, you are in dire need of some serious education.
The following are comments by James Turk who has been correct in his gold and silver predictions, many times. His comments were aired on kingworldnews.com with Eric King hosting last week.
“The market in silver is very tight, it hasn’t loosened up at all. The takedown we discussed in a previous interview that was an attempt to shake out strong hands in the silver market did not work. We actually had an increase in demand into that decline.
We may test support one more time, but there is enough of a base that has been built, it is strong enough to launch it. So you don’t need one more dip. The next upleg will begin with a break above $30 on silver and that should take place in short order.
The gold/silver ratio is once again below 50, that is a bullish indicator. When we take out the low of 48.70, silver should be trading above the previous high of roughly $29.30. Silver would then be leading which I really like to see.”
Gold also appears ready to launch, despite pulling back to even on the day. What are your thoughts on gold?
“Gold is taking a little longer to develop because it had several days of trading above $1,400, so some short-term resistance built up there. But I like what the gold chart is doing, it is creating enough of a base to power through that minor resistance level.
The bottom line is that I expect silver to take out its high, to be followed by gold hitting new highs a day or two later. It is important that gold confirms the new high in silver so that both metals are trading in synch with each other in new high territory.
By the way Eric, I like very much what the gold stocks are doing here today. We are seeing some real strength which suggests higher prices in not only the mining stocks, but also in the precious metals as well.
What we should see is the XAU which has already confirmed, followed by a confirmation of new highs on the HUI as well. You know my view has been that the new bull market in the mining stocks began when the XAU made a new high above 206 back in October.
Just to be clear, going forward we should expect extremely bullish activity in the mining shares.”
The comments at the end by Turk remind me of Jim Sinclair’s statement that people should hold on to their book (positions) right now. In secular bull markets, it is a huge mistake to lose your position. At the same time it is very difficult for individuals to hold on all the way to the mania. As Richard Russell often says, “Very few human beings are able to hold for the duration of a bull market.”
Gold $1414.50
Silver $29.38Something is seriously wrong in the world with derivatives and debt and gold is yelling loudly to be prepared.
From http://www.jsmineset.com:
Jim Sinclair’s Commentary
You know what respect I have for Martin Armstrong as a broad market trend timer.
He is simply the best in modern times. Yes, he is a tad self-destructive but that does not detract from his genius. I have known MartinArmstrong since the late 60s and have yet to see him seriously wrong.
In Martin Armstrong’s last writing he said the following about gold. His history of accuracy demands that we all listen carefully to him, myself included.
“I have given a number for gold $5,000 that is very conservative. If we take U.S. gold reserves at 252 million ounces and we divide that amount into the national debt of 14 trillion that yields a staggering amount of $53,639 per ounce. Even taking the world official gold reserves divided into the US debt of 14 trillion we still get $15,873 per ounce.”
This makes my eight year price objective of $1,650 in January of 2011 look pitifully on the low side. Assuming Armstrong is right (as he has been for 40 years), the shorts of gold and gold shares are going to be destroyed.
Gold $1391.40
Silver $28.78As Nobel Prize-winning economist Robert Mundell, ‘the father of the Euro,’ recently warned, ‘We are living in the worst monetary instability in the last 3,000 years.’ The prospect for precious metals has seldom been more promising.”
Gold $1388.30
Silver $28.12The following are comments on gold and silver from Dan Norcini at http://www.jsmineset.com :
Considering the fact that today is the end of the month and that during such times, many markets that have been in uptrends see some price weakness as traders book profits, gold, and silver for that matter, displayed impressive strength as buyers went to work. One can only suspect that December should start off very well for the fans of both metals based on what we saw today as overhead resistance levels were shattered and both markets appear to have broken out of recent consolidation patterns and look poised to move higher.
If that wasn’t enough, Gold priced in terms of the Japanese Yen made a 27 year high at today. When priced in terms of the British Pound and the Euro, it set new lifetime highs respectively. It also is within a few francs of setting a lifetime high in terms of the Swiss Franc.
Clearly unrest regarding the sovereign debt crises of some of the Euro nations is bringing strong demand from the continent into gold and silver for that matter as silver made a new record high when priced in terms of the Euro.
Gold $1362.70
Silver $27.10The fact of the matter is that the knot-heads in Washington along with the biggest knot-head of them all, Ben Bernanke, plus their bankster buddies know not what they do and in the end (as is now for some folks), we will pay a very high price for their abundance of STUPIDITY and GREED.
Got your gold?
The following linked article by a “real” brilliant man, Mr. Martin Armstrong, clearly and sadly spells out a factual and shaking account of HOW IT IS.
http://www.martinarmstrong.org/files/Indirect%20v%20Direct%20Stimulus%2011-21-2010.pdf
Gold $1373.70 UP $7.30
Silver $27.35 DOWN $0.58Gold advanced on the reported shooting between the two Koreas. Silver got a one-two punch taking it down to $27.08 in early London trading. Silver is still weak but is trading higher being helped by its big brother.
It was quite apparent this morning that massive naked selling was once again at work in the gold shares. As gold advanced, you could have all the shares that you wanted which kept prices unusually checked. Silver being checked was also a bit unusual with gold advancing.
What are we to surmise today with the contrary action in the gold shares and silver?
Although the metals are in a general resting stage following their recent advances, any strength will be met with aggressive selling by the miscreants until new highs come again. Until that time arrives, when the bull starts lifting his horns again, it will make sense to remain on the defensive.
The HUI, the gold producer unhedged Index of stocks, made a long term breakout above the 515 trouble level on the chart about four weeks ago. The last on the HUI is 547.27. The naked shorters can dump all the paper they want into gold share market to surpress prices but they may be in for a shock when higher earnings expectedly hit the news wires.
The SEC is a criminal organization for permitting the conterfeiting of mining shares. Big money interests in Wall Street have bought and paid for this Commission many times over. These guys will never go to jail as they own the regulators who are paid to look the other way.
Frustrations are growing internationally at the influential control the big banksters have over our lives with their puppets in government orchestrating for them. Check out what the French soccer star, Eric Cantona, is advocating for December the 7th.
Check this out. Tired of banks controlling your life? This is an opportunity to show your dissatisfaction.
http://maxkeiser.com/2010/11/17/max-keiser-crash-jp-morgan-buy-silver/
Asian Markets Sunday
Gold $1359.20 UP $5.10
Silver $27.81 UP $0.46Gold is up $1000 an ounce since this topic was created.
During the period the State has taken away management’s focus towards mining and cost the shareholders dearly in checks going to it along with the expenses of defending ourselves over and over again from these tyrants. To say we have been damaged would be an vast understatement.
The last time I checked mining was still considered a major enterprise in our country but in California mining is practically non-existant. We as Californians, along with the mining industry itself, have been beaten down with regulations, all in the real name of stuffing those fat cat pockets in Sacramento with unjustified high salaries and as mentioned earlier, with puffed up pension plans.
Well, State salaries and employment are due to be greatly reduced along with the outrageous entitlement programs. They did it to us and themselves all in the name of GREED. California may never be the same again because of the cupidity of these so-called bureaucrats or as stated by a friend of the mine, by these liberals and socialists.
When these legislators and all their staff along with the useless and unproductive bodies in these so-called regulatory agencies come home someday crying that the State can’t afford them anymore, you won’t catch me feeling sorry for them. They all deserve what is surely coming their way as a result of the State’s $25 billion deficit, growing each day, that they are all responsible for in one form or the other.
The new money in the world today is gold and we still have it in the ground just waiting to be daylighted. Gold and silver are going a lot higher in price as a result of the Fed printing all this new money because their little brains can’t figure out what else to do because their bankster buddies keep telling it to continue sticking it to the people. New money will equal more inflation(hidden tax), sooner or later, with the banks and government being the great benefactors.
Aside from efforts to halt or stall the march to higher prices in the metals, everything will be done to attack them. So when these days occur followed by weakness in the precious metals:
Buy Gold
Buy silver
Gold and silver pushing higher in Asian and London markets.
Gold $1357.30 UP %21.50
Silver $26.51 UP $ 0.86Gold $1331
Silver $25.07Bob Chapman of the International Investor says the big short in these markets is the government. Chapman adds that it doesn’t bother them being heavily short with naked paper sales because if they eventually get boxed in with continuing new highs, it’s just the public’s money in the end.
Gold $1335.60
Silver $25.57The following was released this morning from John Williams from shadowstats.com:
Gold and Silver Highs Adjusted for CPI-U/SGS Inflation. Despite November 9th’s historic high gold price of $1,421.00 per troy ounce (London afternoon fix) and multi-decade high silver price of $28.55 per troy ounce (London fix), gold and silver prices have yet to approach their historic high levels, adjusted for inflation. The earlier all-time high of $850.00 (London afternoon fix, per Kitco.com) of January 21, 1980 would be $2,390 per troy ounce, based on October 2010 CPI-U-adjusted dollars, and would be $7,824 per troy ounce in terms of SGS-Alternate-CPI-adjusted dollars (all series not seasonally adjusted).
In like manner, the all-time high price for silver in January 1980 of $49.45 per troy ounce (London afternoon fix, per silverinstitute.org) has not been hit since, including in terms of inflation-adjusted dollars. Based on October 2010 CPI-U inflation, the 1980 silver price peak would be $139 per troy ounce and would be $455 per troy ounce in terms of SGS-Alternate-CPI-adjusted dollars (again, all series not seasonally adjusted).
Gold $1339.00
Silver $25.67From Bob Chapman’s International Forecaster(not the International Investor as erroneously posted last night) this morning:
Monday, just like on Friday,
the Comex again raised margin requirements on silver from $6,700 to $10,000 a contract and on gold from $5,700 to $6,000. That is to allow the shorts to drive both metals down, so the shorts can cover and restrict their losses. It does not get any more blatant than this. Cross-market manipulation.In the prior contribution re silver dollars, was referring to the Morgan and Peace 90% silver coins.
The follwing is an informative listen, if you can spare the time it’s worth it:
http://bobchapman.blogspot.com/2010/11/bob-chapman-on-sovereign-economist-10.html
Gold $1358.90
Silver $25.53Both metals came under selling pressure today as the Dollar Index rose, closing at 78.68. It appears that Wall Street’s trading houses(the banks) have been buying the dollar as there is far too much negativism in short term for its impending collapase. Too many shorts are in the boat for the moment and these trading concerns thought they would shake it a little for hopeful profits, it may have worked.
As the dollar strengthens it usually makes gold cheaper as was the case today as it’s off about 10 bucks. The Dollar Index may be heading higher in the days ahead, at least, into the 80 to 82 zone on the chart. This type of action would most certainly encourage futher selling of gold, as well as in silver.
A few days back, or so, it was discussed that gold was brushing close up against monthly resistance in the $1440 to $1480 area. At the time the following should have been included concerning silver, silver’s monthly top on its ascending channel line of the chart is in the area from $29 to $30.
Today, at around $25.50 its down about 13 1/2% from the recent high of $29.50. Silver, unlike gold, is quickly disappearing from above-the-ground inventories. In 1942 the Treasury had 3 billion ounces. Today, it has none. For the year 1940, above the ground supplies of silver in the hands of governments were 10 billion ounces. Currently, above the ground silver supplies amount to less than 1 billion ounces.
The current annual world demand for silver is 900 million ounces with only about 480 million of those ounces being supplied by the mines. So it only makes sense to say that, inventories will dwindle further as the years go forward.
Where is the silver going? It is being used up by industry. There are so many growing uses for the metal that it boggles the mind to wonder where the new source will be one day when earth’s below-the-ground resources have been largely depleted. The U.S. Geological Survey estimates that there are just 8.5 to 18 billion ounces left to be mined.
Folks would be surprised what silver is being used for these days. Just research silver uses and be enlightened. When you’re on the Internet search Robert Kiyosaki silver to get the true story concerning silver’s price future. Robert Kiyosaki is a self-made multi-millionaire and who is most probably worth north of the billion dollar mark.
With Christmas closing in on all of us, the best gift, IMO, for a child remains a few silver dollars for his or her stockings.
Just bought some silver dollars at a good price today. If you would like the source in Tacoma, Rae should be able to furnish my e-mail address.
What is the expected potential for price weakness going forward in gold as the dark forces, apparently, are at it again?
Did they not learn their lesson in 2009 when they were severly beaten, like Napoleon was at Waterloo in 1815, when the $1000 ceiling on gold imploded? With the realistic chances being nil of gold bullion being sold by the IMF or any other country, their going to have to come up with a lot more than jaw-boning futures exchanges to raise margin requirements and continuing their usual media blitz.
To be honest, after following markets for years, especially, following the tracks of the inventive cabal, they always seem to come up with new tricks to flush the gold market. Something has changed this time, from a recent low-point at $1150 in August of this year, strong relentness buying took the metal up to close to $1400 six weeks ago. This type of buying, minus but one small reaction of, maybe, 30 dollars had not been seen since late in 1979 when gold was in the process of doubling during a short period of six weeks, to $850.
So if gold does remain weak next week and beyond during its bull market, we can look for some excellent support around the $1300 level. Below that, the general $1250 area is much stronger.
For folks looking to buy either gold stocks or gold bullion coins, 15% should have already been committed as of last Friday. Going forward, Another 50% should be used for scaling down to the $1300 level. Following that, if gold continues its retreat the remaining funds should be in place for final purchases lower into the general area of $1250.
Disclosure:
I personally trade 5% of our long term position, never the bullion coins. On the day gold hit $1420 certain gold shares were liquidated and beginning Friday, a small portion of the funds were recommitted to two issues. On Saturday a small portion of silver bullion coins were acquired. The balance of the proceeds are awaiting lower prices or possibly, higher prices if gold has a shallow continuing reaction.
James Turk made the following comments November 11, 2010 while interviewing David Morgan at goldmoney.com:
James Turk:
“Well, my long term view is that by 2013 to 2015 gold is going to be 8,000 $/ounce and if you accept that, as I do, that the ratio(gold to silver) is going to fall and go below 20, even if you take the ratio of 20, 8,000 dollar gold means 400 dollar silver. I think that is a very reasonable target. You know when I first did that forecast of 8,000, back in 2003; there were a couple of aspects to it. One is that in 2003, gold was about 350 $/ounce and it took 10 dollars in 2003 to equal what the purchasing power was of 1 dollar in 1971, so if gold could go from 35 dollars to 800, on an inflation adjusted basis it could go from 350 to 8,000. It is basically saying that history is going to repeat on an inflation adjusted basis. So I don’t think it is unreasonable of a silver price of 400 $/ounce or perhaps even more, if the ratio goes even below 20, because I think 8,000 $/ounce gold is not an unreasonable target by 2013 or 2015. So bottom line, we’re both very very bullish, both on gold and on silver, but particularly bullish on silver.”
David Morgan: “Exactly.”
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