Posts by dustyheron5

As far as I can tell, Jim Sinclair called gold at $1,500 back when it was trading at just $300—so his insights carry a lot more weight than those folks who have been screaming that gold is a bubble for the last decade...😂

Patrick Moore3 said:Draughtin Lesar:

If owning two houses makes you rich, what does that make the people stacking gold?

http://www.foxnews.com/news/economy/if-owning-two-homes-makes-you-rich-what-about-gold

😂

And what's left for the people holding two houses, gold, ammunition, AND stocks? ...just a bunch of corrupt opportunists...😂

I have no idea—it doesn't interest me as a trading vehicle... I just know that those currently executing trades are dead wrong.

Robert Vaughn10 said:It’s incredibly difficult for manipulators to maintain this kind of pressure indefinitely. Eventually, they have to crack. In fact, I’d prefer if this drag continues a bit longer; it gives me more time to get my ducks in a row. If we play this right, the ultimate "penalty" for these players will be so massive they won't even think about manipulation again. The timeline? Five to ten years would be ideal to ensure that once things finally align, they move aggressively. The price target? Mike Maloney has mentioned $20,000. It’s a bold claim—one I barely dare to contemplate—but the longer the crowd stays sidelined, the harder the eventual breakout could be.

You make a great point—the actual price of gold isn't their primary concern. For the commercial players, the priority is simply profiting from short-term price manipulations by siphoning capital away from hedge funds and retail traders... and as you can see, they are doing quite well for themselves...😉

If the price sits at $2,400 in two years, it won't bother them one bit; they'll be able to manipulate the market just as effectively there as they do at $1,600...

Naturally, they prefer price levels where interest is highest—whether that's through shorts or longs—because high interest inevitably means higher volume...😁

I didn't even realize I was in agreement with Mike Shedlock regarding the price action in gold and silver...😍😍

Gold Action

With Gold Action with Soros and others selling—and given that Goldman Sachs and JPMorgan Chase are likely front-running the move by shorting futures during low-liquidity windows—we may have already hit the bottom at $1554.

Unlike others Who believe Gold is constantly manipulated lower, I believe manipulation works equally in both directions. Think about it this way: contrary to the GATA perspective, Goldman Sachs and JPMorgan Chase don't actually care which way gold (or silver) moves—they just want to ensure they profit by front-running the massive surge in volume.
Read more at http://globaleconomicanalysis.blogsp...wBQrWHjwCOx.99

lonehawk5 said:Yeah, sure, this 'crazy' growth totally kicked them out of their shoes😁

Don't sweat it—prices will climb just enough to shake them out of their positions...🙂

Which means we still have plenty of room to run...

Of course it’s dipping—no sane investor expects everything to be wrapped in gold or silver... what's your take? 😂

btw gold is at $1,614😍.......it completely wiped those hedge funds out—just like I said they would 😉

The only indicator you can actually trust... Ben Bernanke... the second he opens his mouth, gold prices crater... that's just the OMO effect in action...😍

On the other hand, you have people pointing to a death cross on gold's technical charts... but that doesn't work the same way for gold as it does for stocks—in fact, it suggests the exact opposite:

@Jim Rickards
A friend told me that dismissing TA is foolish—I had to remind him about the 2008 " Death Cross ", right before #Gold rallied to $1900
Retweeted by Jim Rickards

Pure contra-indicators if you ask me... just look at the data. 😂

hollowmoose21 said:Another contrarian indicator? 😁
Nah, explain this to me instead:
The support for gold in Feb is 1574. The resistance stands at 1667-1690. The support will begin to fade in March and The number to watch will become 1638. The primary support Lies AT The Three Monthly Bearish Reversals. Once they give way, then we can see a real break. M. Armstrong
😁

I saw 😉

If that support doesn't hold (on the monthly chart), gold will test $1,160 again. 🤣

But that’s Martin Armstrong—he's a cycle expert, which is a different league than me. I don't follow that school of thought; I find it all fundamentally distorted and believe no single indicator is actually grounded in market reality... plus, I don't think anyone can truly know what happens three, four, or five years down the line. The maximum window you can successfully forecast in the markets is maybe 3–6 months—and even then, only if you are watching macroeconomics and smart money movements very closely... or if you have a master-level grasp of technical analysis.

In any case, there was a more detailed version just before that text:😉
Gold closed on Friday AT 1574.8. The major support is highlighted by the Monthly Bearish Reversals at 15470, 15410, and 15320. This is the critical support and a monthly closing beneath these three reversals will confirm we should retest the 1160 area. A minor Monthly Bullish stands at 17580. The next Two Weekly Bearish Reversals ara 15640 and 15320. From a timing perspective, next week is a turning point followed by Panic Cycle The Week of March 11 th. Volatility should reach a high The Week of March 18 th. This week is a Directional Change. The key is the monthly levels and until these three are taken out, then gold is still basing. Daily closing resistance is at 1652.

Overall, February was a Directional Change and that Has been on The money. High volatility appears in april and The next major turning Point will be May followed by Sept / Oct. We still see gold rising after 2015.75.

By the way, for those who aren't following Armstrong: just a heads up, Martin is expecting gold prices to drop and the bull market to only resume in 2015 (around August/September)—so, take that for what it's worth. 🙂

Melissa Sanchez17 said:http://www.bloomberg.com/news/2013-0...-collapse.html

🙂 🙂

The hedge funds have been caught on the wrong side of the trade—they got flipped and stripped of their capital. Gold is sitting at 1600 right now. 😉 Now we can expect a new round of manipulation for the exact same purpose—whether they drive the market up or down. 😉

Based on my past experience with Goldman Sachs'—let's call them "contrarian"—recommendations, things are likely headed up.😂

We’ll see how this plays out... but as I previously noted—the commercial players have effectively flipped the hedge funds on their heads (those guys got caught in record-breaking short positions). Tomorrow, we will likely see gold prices climb above 1,600—in my honest opinion—before they perhaps attempt another crash just to lure in a few more naive investors. Though, I doubt that’s even profitable for them anymore, given how quickly they're running out of "clients" on the short side. It's smarter for them to nudge the price up gradually to entice the long crowd; once enough people are positioned there, they can pull the rug out from under them just like they did to those who walked straight into the slaughterhouse on the short side.

http://www.kitco.com/charts/popup/au24hr3day.html

hollowmoose21 said:hollowmoose21 is being a skeptic. Honestly? I think that’s a solid red flag. 😁

Good? No—it’s excellent. 😍

Here is some context from Martin Armstrong:
This is not about gold going to $30,000 an ounce. 😉
This is about tangible assets providing the bridge when the currencies collapse and what we have today is replaced by something new.
Our major risk is that everything falls apart and we descend into trade and currency wars as politicians once again try to cling to power rather than reform.

Since I didn't get this out immediately, I will provide it now.😍............beyond just looking at the chart, you really need to digest the underlying data.😂...or perhaps it would be more efficient if I simply posted the analysis from my own site here;

"A quick update regarding Gold......

After dropping to $1,550, Gold finished the week at $1,580—which represents the lower boundary on the weekly chart.
The primary driver behind the current bullish sentiment in Gold is the COT report (Commitment of Traders)—essentially, the positioning of the major players.
The logic is straightforward: whenever hedge funds overextend themselves in either long or short positions, major bullion banks (the commercial players) flip the script. They drive the trend against those overextended positions to capture profit........
We are talking about institutions such as JPMorgan Chase, Goldman Sachs, JPMorgan Chase, and others.......

With that in mind, we must examine the managed money short positions on Gold:

What does the data reveal?
The chart shows a clear pattern: every time hedge funds aggressively entered short positions, we hit a local price floor for Gold. Simultaneously, the major banks pushed prices upward, effectively wiping out the hedge funds—and the retail investors along with them)........
It is visible on the graph where these local bottoms occur; they consistently coincide with record-level short positions by hedge funds, which generates massive revenue for the bullion banks.......and currently, hedge fund short positions have reached their most massive levels since 2008.

Here is the full text:
http://thetsitrader.blogspot.ca/2013...ged-money.html

For anyone interested in studying the mechanics further—and if you can spare a few hours for it—this is an excellent resource:

http://treo.typepad.com/files/201302...-cot-notes.pdf

The conclusion: for those considering a long position in Gold, the timing is ideal. Monday will likely be one of the best entry points, similar to last Friday.........I realize the average investor is feeling fearful right now, but that is precisely the point—very few investors possess the courage required for true contrarian thinking and action.

Regards,

Downside potential is extremely limited—while the upside looks pretty substantial.
Take a close look at this chart...😍

http://3.bp.blogspot.com/-rDe6nkVunq.../s1600/COT.png

http://thetsitrader.blogspot.ca/2013...ged-money.html

dustyheron5 said:The market can remain irrational far longer than an average investor can stay solvent... and just when most people are 100% certain they can't take any more hits... blink, and you're suddenly underwater. 😍

If you don't believe in a bull market for metals, you can always sell—just like everyone else.
No one is forcing you to hold them. You know how the biggest shills in finance operate... this isn't advice to buy or to sell. 😂

When I look at US equities, it looks like a bubble inflated to an agonizing degree—the fundamentals will crash, leaving people wondering how it happened.
Metals, on the other hand, aren't in a bubble at all. For instance, gold hasn't even reached its inflation-adjusted 1908 peak—which should be closer to $2,413—and silver is even more undervalued since it's the only asset that hasn't surpassed its nominal 1980 high.

I'm already seeing people diving headfirst into massive gold shorts lately—total deer mode.😂

Honestly, neither side can be right—those shorting the metal and those who were on the other side simultaneously. Next week will reveal who actually came out on top.😉

Maguire - Stunning $ 24 Premiums for Gold in New York today whistleblower

Today whistleblower Andrew Maguire spoke with King World News about The stunning premiums being paid in New York for Gold , and What price investors and traders need to watch to see buy stops triggered on The upside in The Gold market. this is The third and Final in a series of interviews with Maguire lifting The curtain on What is going on behind The Scenes in The ongoing Gold and silver War which continues to rage. Below is Part iii of Maguire’s extraordinary interview.

Whistleblower Andrew Maguire: “We were already hearing rumors two weeks ago of another CME broker default (when gold was pushing $1,700), and I think something had to be done. Up until The Monday When the US went on holiday, these dips were being aggressively bought, forcing the bullion banks on the bid to meet every allocation.
This is why gold couldn’t break down below the mid-$1,650s. So what did they (bullion banks) do? They waited until the paper markets had no competition. Waited until the US was on holiday and most of America was closed, and then they targeted absolutely visible long stops.

“You can be absolutely sure, Eric, that the bullion banks are short covering into this supply. Their footprints are all over it.

I mean the premiums in New York this Morning were over $24 an ounce for gold. We’re (trading) $1,608 (for gold) in New York.
The paper market longs have been tricked into selling. Obviously the managed money and the specs are now being tricked into short selling. Who do you think is on the long side of those trades?

These bullion banks have actually successfully transferred massive short positions into very weak hands. And this next week is going to provide large short fuel above the market. As soon as this leveraged selling is insufficient to meet the bullion bank buying, which will happen, if not today it will be early next week.

They are simply going to run out of sell power vs what the bullion banks are forced to buy because the physical market is so strong.”

Eric King: “Andrew, as you know they’ve been all over the mainstream media trumping the end of the bull market. They are talking $1,200 gold and claiming a collapse is in front of us here, your thoughts on that?”

Maguire: “Yes, you’ve seen an absolute crescendo of it. It’s by no coincidence either, talking about the ‘Death Cross,’ (and saying) Soros sold. Soros sold a measly 18 tons last year. You don’t think the guy is on the bid now?

Do you remember when you and I had this talk at the end of last year when all the rumors were that Paulson was selling? Do you remember that you and I said ‘that’s impossible. I guarantee he’s not selling.’ Sure enough he had not sold. He’s the one that’s holding on to his gold position.

The level of disinformation circulating right now is truly staggering. We are witnessing a bottoming process where the bullion banks shift their short positions onto much more vulnerable players. Given how incredibly strong the demand is in the physical market, expect a sharp, rapid reversal.

There is a massive amount of short fuel sitting just above current levels. Looking at the managed money short positions, we have entered bubble territory. This concentrated short fuel will inevitably trigger aggressive short covering—once prices push back into the $1,600 range, those central bank stop-limit orders will hit, and the discount window will slam shut fast.

analogharbor44 said:How many times do we have to go over this? 🙂 And how is that supposed to impact gold prices? Not at all. 🤣

Look, Evo Fed is printing money, yet gold isn't even moving up? Someone out there claimed that was the only thing that mattered!
Others were calling for 1880 by late February or early March. 🙄

The market can remain irrational far longer than an average investor can stay solvent... and just when most people are 100% certain they can't take any more hits... blink, and you're suddenly underwater. 😍

If you don't believe in a bull market for metals, you can always sell—just like everyone else.
No one is forcing you to hold them. You know how the biggest shills in finance operate... this isn't advice to buy or to sell. 😂

When I look at US equities, it looks like a bubble inflated to an agonizing degree—the fundamentals will crash, leaving people wondering how it happened.
Metals, on the other hand, aren't in a bubble at all. For instance, gold hasn't even reached its inflation-adjusted 1908 peak—which should be closer to $2,413—and silver is even more undervalued since it's the only asset that hasn't surpassed its nominal 1980 high.

Gold entering backwardation...

Alert: Gold in Backwardation Again!

Publication date: 2013-02-21
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By Philippe Herlin - Researcher in finance / Contributor to Goldbroker.com

What is backwardation? Typically, with gold—or indeed any commodity—the price of a future or a term contract sits higher than the current spot price. This is standard practice. To guarantee the delivery of a commodity down the road, an investor must borrow capital to secure the asset today and pay for its storage until the delivery date. That carrying cost is baked into a future price that remains higher than the spot price.

Under normal circumstances, that is the rule. However, we occasionally see the spot price climb above the future price. This occurs when intense demand meets a shortage in supply—when the market simply cannot keep up. This state is known as backwardation (the inverse, known as contango, represents the status quo).

While this makes sense for most commodities where inventories can run dry, it is harder to justify with gold. Gold isn't a consumable commodity; it isn't used up or transformed upon acquisition. It is simply held.

The quantity of Gold in The World never diminishes—in fact, it grows steadily through mining. Therefore, under normal conditions, gold should never experience backwardation. Theoretically, such a scenario shouldn't even exist—one could simply sell physical gold for cash and immediately buy it back via a futures contract to lock in a risk-free profit. In an era where the markets are scrutinized 24/7 by thousands of professionals utilizing highly advanced algorithms, an anomaly like this should vanish in seconds. Yet, we have seen it persist for several days at a time.

There is only one logical explanation for gold entering backwardation: a total loss of confidence. Buyers in the futures market are essentially betting that there is a real risk the contract won't be honored—that the actual physical gold won't be delivered. Even if a profit opportunity exists, they aren't looking to arbitrage; they are choosing to cling to their physical bullion.

Backwardation persists as long as the crisis of confidence does. And we aren't just talking about market jitters—we are talking about confidence in the entire monetary system. If backwardation becomes a permanent fixture, gold will become unavailable at any price. Holders of gold bars will refuse to sell regardless of the offer, simply because they no longer trust the paper currency being used to pay them—which, frankly, feels like the opening act of hyperinflation.

Historically, the gold market has stayed in contango. Since the turn of the millennium, it has largely mirrored interest rate trends, moving downward as the cost of money decreased. Gold was in backwardation for several Days The First time in December 2008—immediately following the Lehman Brothers collapse and the resulting market chaos. We saw it again in May 2012 during the height of the European debt crisis. Now, we are seeing it once more—a clear indicator of deep-seated tension, even if prices seem relatively steady for the moment. But the question remains: how much longer?

It seems highly unlikely that the Federal Reserve will pull the plug on their stimulus measures anytime soon........

http://www.reuters.com/article/2013/...91L02I20130222

lonehawk5 said:You can find absolutely any kind of nonsense online these days😁
If only I had the time to read it all...

Look, someone has to be responsible for maintaining a sense of optimism regarding precious metals—not everyone can just blow horns (like the mainstream media or the G-20) claiming they're worthless. 😍

They hold assets, for instance, like certain stocks that might drop 30% overnight without anyone batting an eye—or even the Euro, which could face disintegration, or the Dollar, which could just as easily tank 20-30% overnight if things go south for Americans. 😁

Personally, I don't view precious metals as a fetish; I see them as a liquid asset that needs to be held in a certain percentage to prepare for unforeseen developments. 😉