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August 24, 2011 / Hal (GT)

Options Expiration Week Takes Big Bite of Gold.

And gets a piece of silver in the process.

Well, it is options expiration week (tomorrow is the day) and gold has been under the hammer. Most telling to me that in Asian buying gold showed strength last night only to get trounced upon again once London came on followed then by the COMEX.

Right now the free widget on my desktop is showing the evidence in the graph. It’s proving to be a rather volatile day. Just after grabbing that pic, gold went to $1,760.50.

Lear Capital: Stocks Soar, Precious Metals Collapse – Is Gold Still a Win-Win <- I love how David Engstrom opens:

Yup!  We can all pack up and go home now.  The markets are recovered and there is no need to rely on gold and silver anymore to protect our assets.

Gold, the dollar and currency failure <- Interesting article:

In the last two weeks we have seen the strongest and most respected currencies being purposely weakened by their own central banks.   It is at times like these, when the going gets tough, that national monetary priorities are fully exposed.   There are major dangers in these policies because of the role that currencies have played since gold was written out of the monetary system in the early seventies.

Embry – $2,500 Gold to End the Year Wouldn’t Shock Me <- Some good info here on King World News.

Robin Griffiths – Important Price Targets to Look For in Gold <- Some more good info on King World News.

Is a Fear-Driven Gold Mania Here? <- I don’t know that I totally agree with this read in the Casey Research Daily. Though I will be the first to admit that they are far more experienced than little old me is when it comes to understanding this market. But what my opinion is, is that gold’s rise is more a function of the debt rise than it is a fear of currency woes. Granted debt is a function of the fiat currency so there is a link there. I just don’t see this as a mania stage of fear at the moment.

Budget agency: Jobless rate above 8% for years <- HT to Future Shock on Twitter.

Gold “The World’s Currency”

Fearing the worst, high rollers are buying gold.

Kazakhstan Will Buy All Domestic Gold Production Starting January 1st, 2012 <- Ed Steer’s Gold & Silver Daily has an interesting email from a German reader talking of the physical tightness of the silver market. Here’s a snippet:

“The mints were all working with gold and not providing any silver to the markets, the ratio of gold to silver purchases being about 10:1. They were hoping to get more silver in a few weeks but couldn’t promise it.”

Wall Street Got About As Much Free Money From Bernanke As America Currently Owes On Its Houses <- Go figure.

September could be a ‘crazy month’ for gold <- you don’t say?

It Should Be Obvious To Everyone By Now <- Sadly it isn’t.

HUD Subsidizes Wealthier Indiana County <- Ummm. Yeah. Like they need it.

Biggest Gold Drop Since December 2008 Sends Metal To… Week Ago Levels

Operation Twist Expectations (or LSAD) Returning With A Vengeance Explains Today’s Moves In Stocks And Gold <- On Zero Hedge. Here’s the snippet:

It also explains why gold is being sold off today, because simplistic investors believe that without an actual balance sheet expansion, the Fed will not be diluting paper. Completely wrong: it will merely do so synthetically, from a duration basis.

Where Are We? <- good question. And where are we going?



Well it looks like gold has bottomed at the moment. It’s still sitting in the $1760 range. We’ll see what excitement tomorrow brings.

Keep tracking!



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