The decline is front and center in the financial papers. CNBC hosts are grilling every analyst they can find with drivel like, "What a drop! Is the gold rally now dead?"
Our advice to the nervous gold owner: Sit back and take the "long view" of gold. Remember, no bull market rises in a straight line to the sky. And gold regularly experiences wild swings in price.
Gold is the "odd man out" among financial assets. It's not like a rental property, where you can say, "I'll pay eight times annual rent for this." Or a blue-chip stock, where you can say, "I'll pay 10 times annual cash flow for this." Gold represents real wealth and crisis protection. Folks go through periods where they'll dump this protection... or buy it with both hands. This leads to lots of volatility, like we've seen in the past few days.
It could even lead to a bigger drop in gold. But as you can see from today's five-year chart of gold, the yellow metal could drop all the way down to $850 an ounce and still remain in the confines of a big bull market. This sort of drop is unlikely, but anything can happen in the gold market... so be prepared.
tell me that the Soros plea and all the short positions that his Bullion Bank buddies have for IMF gold Sale to fund Climate Change is nothing but a plea for the Shorts to cover their contracts ??????
ReplyDeletehttp://goldnews.bullionvault.com/gold_caution_120220093
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For some perspective in the Gold Futures market, meanwhile, Comex commercial traders are now net short contracts representing 30.6 million ounces of gold metal – about 952 tonnes of paper gold bets that would improve if gold falls in price.
That gives new meaning to the phrase "motivated seller" doesn't it?
The chart above looks at just the nominal amount of commercial net short positioning. The chart below compares the Comex commercial net short position for gold with the total open interest (LCNS:TO). That gives us a better idea of how the largest hedgers and short sellers are positioned relative to the rest of the Comex traders.
As measured against all Comex open contracts, the relative commercial net short position snapped back up from 52.8% to 58.7% of all contracts open on the COMEX, division of NYMEX in New York. That's a large enough jump to be considered a warning-shot and we are back to an extremely high level, suggesting that commercial traders are once again confident or "determined" that gold will move lower near term.
We hasten to add, however, that the commercial "industry insiders" are not always right. The most recent example came on September 22 (a little over a month ago) as the LCNS:TO reached an all time record 61.8% of all the contracts open on the Comex. That was with gold at $1,014.96.
Gold has since broken above $1200 the ounce.
Why George Soros is after IMF gold
http://www.commodityonline.com/news/Why-George-Soros-is-after-IMF-gold-23792-3-1.html
Copenhagen climate summit: George Soros urges use of IMF gold for green loans
http://www.telegraph.co.uk/earth/copenhagen-climate-change-confe/6778960/Copenhagen-climate-summit-George-Soros-urges-use-of-IMF-gold-for-green-loans.html
Breaking the manipulation in gold is at a critical stage , if the Private Investors hold their gold positions long enough right now , at this stage , with the way Soros made a Plea to the IMF this Morning we are at the Breach point in forcing them to cover their shorts , making them buy gold higher than what they shorted with and with equities in short trading ranges they can't even generate the cash from those investments to buy gold and cover with , so this will force the FED to open the window to the Big short players and the vacuum on the stimulus will be set into motion by the Chinese imports inflating in price , we got the makings of a rally in Gold Big time here !!!!!! and a Big Bounce in gold will follow , and reverse the manipulating trend thats been at play for so long .
ReplyDeleteHold your Gold positions a bottom is forming ... these big players are caught in the short position they can't fill them because their equities positions are not rallying fast enough to do it , this article is a tell all , if they can get the IMF involved they can get this reserve on the market and force the price , but its the last straw in the bale of hay that will leave nothing left for their manipulation of the metals .......all the debt in the world is forcing China to inflation their productions which is a bubble in the making , they cannot sustain the 19 % gains their reported ... http://www.marketwatch.com/story/china-output-exports-improve-as-inflation-returns-2009-12-11 hold your positions , Independence in gold is about to take shape , its the moment we gold bugs have been waiting for .......
there is no wealth being generated to tax , or we would not see the articles on Soros like we are ... this tells you that wealth creation is absent , or the cry for IMF Gold reserve funding for developing nations would not be needed , its way bigger than what you are prescribing as a solution . the need for International Consensus around a means to fill and need is not able to be facilitated through your method of concept , so that the willing to give a Tax is recovered in some other form or fashion , or total stalling of markets and hoarding will result if your concept were to be implemented , its like dancing with the Black widow , if you are not careful she will eat you when the dance is over ........
http://www.usdebtclock.org/