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View Full Version : Temporary Dip Folks....Bernanke Smoke & Mirrors



silversurfer1
4th December 2009, 17:51
Pasted below are thoughts from Jim Sinclair. Remember too that our friend Ben Bernanke (BB) is going through his little re-confirmation process. He will pull out all stops to try and make things look good from fudging un-employment figures to boosting the Dollar (temporarily) to lowering the price of Gold (temporarily). The guy is a criminal. Just wait it all out. Actually we didn't lose much on Silver.

The dollar has rallied today and accordingly gold is soft.

1. The temporary high of this rally was $1224.00 to $1224.10 in the cash market 3 times.

2. Remember the day that unemployment figures went from 9.5% to 9.4%? It was heralded as the end of the continuous increase in that figure.

3. Gold at these price levels will axiomatically become extremely violent.

4. The magnet underlying gold is at $1156 and below that at $1089.

5. Regarding articles that claim gold has topped, the Chinese will be buyers on the decline if they can make that purchase and save face.

6. This is a boon to the Chairman of the Federal Reserve as his supporters can claim that changing leadership when things are turning is a greater risk than maintaining the present leadership at the Fed.

7. If Bernanke is confirmed, which is reasonable to assume, you can be sure that the pressures for policy will be generated via the Treasury.

8. Clearly this economy is bouncing along a bottom and has decelerated its decline, but is doing so poorly in light of the over the top liquidity placed into the world economy. This is how all figures, market related, react in a trend. That is all.

9. Respectfully, this is gold so if you cannot stand the heat in the kitchen then you had better leave. Buying dollars here has no real fundamental basis other than a few days at best.
The MOPE ( Management of Perspective Economics) accelerated two trading days ago is now rising to spiritual levels. The exception to this is at the US Labor Department. They suffered a major loss of standing when they went wild over the drop from 9.5% to 9.4% as the end of increasing unemployment.

I am interested in following the analysis of this number by paying attention to www.shadowstats.com (http://www.shadowstats.com).

Gold weakness and dollar firmness is again temporary.
Act with your head, not with your gut center of emotions.
Sincerely,
Jim

ryshay
4th December 2009, 18:53
Well, the PM dealers sure seem to think this correction in PMs is only temporary. The kitco boards are b!tch!ng about APMEX actually raising their premiums as PM spot prices fell.

AGEs are $100 over spot!
The bid price is $40 over spot! (to sell AGEs back to APMEX).

ASEs are $3.99 over spot!
The bid price is $1.99 over spot!

To me, this means that PM dealers know that American Eagles are scarce, and won't part with them for close the COMEX spot price. This seems like bad news, but maybe it means that PMs will bounce back soon.

PM dealers have long experience with adjusting their premiums so they don't fall for COMEX's spot price trickery.
Maybe if the spot PM price persists lower, then the PM dealers will lower the premiums on their AE's. But maybe, they smell something fishy with COMEX's action today, and they don't want to get burned by selling their best coins for artificially low prices.

And Bullion Direct's AGE's are $70 over spot, and ASE's are $3.00 over spot! Better, but still inflated premiums compared to yesterday.
Yup, the PMs are hoping this little correction will be over by next week.

Hey! This thread got a gold star! Thanks!

Mighty_Men_of_Baltimore
4th December 2009, 22:45
Peter Schiff, in a video this evening, just reminded everyone that the biggest downside moves always happen, not in bear markets, but in bull markets.

http://www.youtube.com/user/PeterSchiffChannel

silverheartbone
5th December 2009, 04:35
Hold up, the dollar is worth over a percent more today?

Wow.

Those Rothschilds are something else!

silversurfer1
5th December 2009, 06:19
I guarentee once BB is confirmed again the markets will go back to "normal." Dollar will once again continue to fall and silver/gold go back to it's stellar rise. This temporary manipulation must be costing them. Just be patient. As I mentioned our Silver is hanging in there in the middle 18's - not that big a drop at all.

Az2Africa
5th December 2009, 07:16
I guarentee once BB is confirmed again the markets will go back to "normal." Dollar will once again continue to fall and silver/gold go back to it's stellar rise. This temporary manipulation must be costing them. Just be patient. As I mentioned our Silver is hanging in there in the middle 18's - not that big a drop at all.

I agree. There is nothing but belief holding the dollar up now.

gottago
5th December 2009, 08:19
I agree. There is nothing but belief holding the dollar up now.



It's called thread.

silversurfer1
5th December 2009, 08:31
The only holding up the Dollar is the American military - without it we'd be "kapuut" long ago. But under current circumstances even that won't last much longer.

http://2.bp.blogspot.com/_5vkPiCEjjdg/SxpsD56e6HI/AAAAAAAAFG0/nxI3Cjs0AdU/s400/3.gif

Gene Daniels
5th December 2009, 09:53
There seems to be two halves to everyone stacking PMs. The emotional side goes into fits whenever the price swoons, while the intellectual side knows it is only smoke and mirrors. The key is in not making decisions with the wrong side of the brain.

Since I am quite sure that PMs are in a long-term bull market, I let me emotions take a small dive and quit reading the news for a few days, then soon enough the market returns to its normal, slow-but-steady upward drive. I am not worried, I only have sweaty palms from time to time.

Burticus
5th December 2009, 12:04
As predicted the day before by Ed Steer in his Gold & Silver Daily, on Friday TPTB did their same tired old magician trick of making the FeRN defy gravity while whacking gold & silver when the fraudulent unemployment report is issued.

As James Turk says in his recent interview on KWN, in an odd way, stackers should actually be grateful for FedGov price suppression, since it enables them to convert an overvalued asset (FeRNs) to seriously undervalued ones (gold & silver). Cost average in, buying on these stomp-downs.

Mr. Turk also expects the gold:silver ratio to go from 60:1 to 20:1, but warns that not everyone has the stomach for the "volatility" of silver, including that caused by paper manipulation. If gold is an 800 pound bucking bronco, silver is an enraged 2,000 pound bull. He also contends that his GoldMoney product is a good way for people to safeguard some of their assets off shore far away from the claws of corrupt gubmints. I personally have a thousand ounces of silver in their Swiss vault (not London....)

Papersilver price did not get whacked on Friday as badly as papergold price, causing a large drop in the ratio on the GSR chart. The gold chart shows that this big one day whack brings RSI way down below 60. When gold price first hit this level on 11/23, RSI was in seriously overbought territory at 80. This dip was anticipated by many of our favorite punditia and should give it more room to run, encouraging tech traders and the Chinques to keep bidding.