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September 19, 2011 / Hal (GT)

Monday smack-down to precious metals.


I woke this morning to think that gold would be on the way up today. It was up until about the time that President Obama gave his speech on how raising 1.5 trillion dollars in taxes upon the wealthy in America.

In fact I had the ExactPrice widget running in the corner of my desktop and it was in the hour leading to the speech that the I watched what looked to me like a heavy hand move the the gold spot price.  You can see it in the chart. Check out the volume spike just before the 10:30 speech time.

Right now gold is at $1,774.90 as I type.

I realize that sounds conspiratorial, I don’t mean it to sound that way. And indeed it could be as simple as the fact that the stock market itself sold off greatly and so people were pulling out of gold to cover losses in the stocks.

The thing that is amazing to me is that the fundamentals that point to further upside in gold are still in place. In fact the news of Greece looking at another chance of default and our poor economic positions are both positives for driving gold higher.

It’s just a matter of time.

The Coming Collapse: “We Can Buy Time, But We Can’t Change the Outcome” <- Video and hat tip to Peter Grandich.

Gold falls after strong start, stocks plunge, “domino effect” from Greece could “send shockwaves throughout Europe’s banking system”

China’s Gold Investment to Top Record: Cheng

The Dutch Ask Their Central Bank: “Where Is Our Gold?” <- What a novel idea. HT to ajmcafe on twitter.

EU Bailout—Don’t Worry Be Happy <- What a mess.

Rob Arnott – Expect Tremendous Inflation Going Forward:

“What we have is a situation of too much debt and if you owe more than you can ever afford to comfortably pay back, your choices are austerity, pay it back slowly and painfully, abrogation, default on the debt, or if you happen to have a printing press, run it.”

Robin Griffiths Report – Only a Fool Would Short Gold Here <- dare I note that the world is full of fools?

Jim Rickards – Secrets of QE, Gold & Currency Wars:

“The world is now in a beggar-thy-neighbor phase, last seen in the 1970’s and before that the 1930’s, where countries steal economic growth from neighbors by currency depreciation to cheapen exports.

“Switzerland and Brazil are mere sideshows in this global war. The main event is the three-ring circus of the U.S., Europe and China and their respective currencies, the dollar, euro and the yuan. The dynamic is straightforward – all three would like a cheaper currency, relative to the others, to help exports.”

Greece must shrink state to avoid default: lenders <- does anyone really believe that will happen?

A Closer Look at the Gold Continuation Triangle, and the Coming Breakout to 2100 <- good read.

Tick Tock, Tick Tock

Central banks return as gold buyers <- You don’t say? Hm…. I wonder why.

Fakeout Moves Before the Gold Rally <- Very good read:

This is a level of fiscal mismanagement on a global scale that I have yet to find a precedent for in history. Even the sovereign debt crisis during the Great Depression pales in comparison. Connect the dots, it’s not that hard.

Shakeout <- Ferguson covers the question I began this post with in analyzing this morning’s action in gold.

Well, I think that’s enough for today. Until next time.

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