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September 12, 2011 / Hal (GT)

New Week in Gold opens with Sell Sell.


I have to say that the news this past weekend has been rather doom and gloomish for the global economy. Which one would think is good for the precious metals, particularly gold. However, when I was calling up Lear Capital’s real time mobile page last night to double check what was going on in the Asian markets I was mildly surprised.

To the left is a capture I just grabbed of ExactPrice’s 24hour gold chart. Doesn’t look that pretty. So there’s been a lot of selling going on in spite of news of Euro / Greece’s woes and that many businessmen don’t see any benefit here in the USA to the President’s so called “Jobs Bill.”

So why is it falling when all the fundamentals remain in place that point to higher gold?

Well, as I was discussing with a buddy this morning, the sell off of stocks globally has forced a lot of investors who were hedging in precious metals to take those shares and trade them in for cash to cover other loses in stocks.

To that regard, I see I’m not alone in this thinking: Gold price eases as drop in stocks sparks rush to cover losses.

So, I think once this sell off chops everyone off at the knees, gold will resume it’s upward climb.

Jim’s Mailbox <- Jim Sinclair pretty much thinks the same, so I feel pretty comfortable in my thoughts.

Eveillard – Expect a Mania in Gold Before This is Over:

“Gold today should be seen as a currency, none of the major currencies being appealing.  The are an enormous amount of debt claims throughout the world, which by comparison with gold at $1,800, the entire amount of gold above ground equals ten trillion dollars, including incidentally half of that being in the form of jewelry.”

Jim Rickards – Gold Rise to Continue on Fed Manipulation <- go read.

“Unless the Fed stops its manipulations and returns to a strong and stable dollar, the conditions for gold’s push to $5,000 per ounce or higher are still intact.”

Senate Approves $500 Billion Increase in Borrowing Authority <- rather odd how this was quietly done and all without further media trumpeting debates.

Gold Is Never Easy <- From Jim Sinclair and is a must read as well.

“Gold is never easy is and only going to get harder. The algorithms are fighting the cash market as margins rise. It is only natural that the cash market takes on more strength when margin is headed to cash anyway.”

 Rosenberg On The Latest Helping Of “Smoke And Mirrors” From Obama <- claims that bill only injects $35 billion.
Experimenting With New Ideas:

“I think most Americans understand that no matter who we elect, we can expect more of the same. Our leaders are satisfied with failing conventionally (raising taxes, cutting spending, etc.), and this is why we’re doomed.”

How Would Gold Perform In A Full Blown Depression?

Gold Bull Market Could Last Another 20 Years With $12,000 Price Target

This is a must watch interview with Peter Grandich. I found particularly interesting what he had to say about why mining shares aren’t performing well.

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