The financial pros are panicking again and seeking refuge in the dollar. As the spiral continues and other shoes continue to drop gold goes much higher. Mad Money Cramer went long gold, and their is so much commentary on the subject metal that a contrarian might call it toppy. Not in this environment. Just more fuel for the fire. Targets in the 1350-1400 range by May. And yes, gold bugs and hoarders, when the price of this wasting and useless asset starts to go ballistic, it is not intrinsic value, and it is more than disquieting. It reflects major dislocations in the world.
On a more optimistic note, and keeping in mind that I still refuse to speak with former acquaintances who voted for Obama, he did a credible job addressing the housing issue today. He enunciated many of the causes, offered some palliatives, discussed the pros and cons, risks rewards etc and notably demonstrated an awareness of the conflict in philosphical values surrounding an intervention in the housing deflation. Maybe the administration has the capacity to face reality and learn on the go. It is still all talk, and he has a ways to go before he can convince the capitalists that they are going to die rich old men. However, I feel compelled to remove Obama from my naked short list, pending further review.
RichFeb 18, 2009 @ 11:15
Friends, observe last March 14 and 17 people very ebullient re silver and gold at 20.73 and 1004.40 and that was a time to subtract.
Last October 22 and 28 people very bearish on gold and silver at 660 and 8.45 and that was a time to add.
Maybe the financial world will end tomorrow, but Geithner, Obama, Pelosi and Reid have a lot more liars dice to play before the banker fiat currency power in DC ruse self-destructs….
Regards All*Rich
jamesFeb 18, 2009 @ 8:51
according to sinclare its poland, the zloty, and deritives big trouble brewing
jpFeb 18, 2009 @ 8:49
c’mon! sing along!!
you know the words:
Please don’t miss this train at the station
‘Cause if you miss it, I feel sorry, sorry for you
People all over the world, join hands
Start a love train, love train
O’ Jays
OccdudeFeb 18, 2009 @ 2:10
Its my humble opinion that gold is rising on safe haven buying. The dollars rising because thats what the dollar does in deflation. People are trying to hedge against conflicting information. On one hand their ears hear all about Obama letting loose with the liquidity canons but their eyes see employment, retail and industrial numbers that make you want to draw up the covers and tremble in fear. Asset price deflation is getting warmed up again and people are misreading the signals they do a simple equation that goes “hell in a handbasket=gold”, but their hearts only partly into it, I think if gold gets to a grand, investors are gonna get progressively jittery, while the dollar still has room to gain on the Euro and the pound is dead man walking.
The dollars is the real move. People are CONSIDERING the hard asset angle as a HEDGE. The very rich are starting to put more percentage into gold due to the uncertaintny angle. The very rich want to still have money even if there’s nothing else left but cockroaches and asparagus left after an economic nuclear war.
SocialismSucksFeb 18, 2009 @ 0:46
Excellent commentary, Rick. It dovetails with Faber, Roubini, Sinclair, Shedlock and even the normally unflappable Yves Smith over at the mighty Naked Capitalism blog – all are detecting a global version of something rotten in Denmark.
Imagine that! The human race entered the age of globalism around the turn of the century and less than a decade later the entire globe is hit by a monster wave of coordinated corruption.
What a surprise!
RegardsFeb 18, 2009 @ 2:18
Could it be gong like this :
– X is buying USD against hard currencies (Sterling, Euro, Yen, …) : USD = appreciating
– X is then going to Comex, buying Gold for these USD dollars : Gold = appreciating, but not too much & very controlled because :
– Y is selling the Gold on Comex (Y is Morgan and HSBC who are the only 2 entities in the world being Net Short Gold : Fed agencies).
Comments on this entry are closed.
The financial pros are panicking again and seeking refuge in the dollar. As the spiral continues and other shoes continue to drop gold goes much higher. Mad Money Cramer went long gold, and their is so much commentary on the subject metal that a contrarian might call it toppy. Not in this environment. Just more fuel for the fire. Targets in the 1350-1400 range by May. And yes, gold bugs and hoarders, when the price of this wasting and useless asset starts to go ballistic, it is not intrinsic value, and it is more than disquieting. It reflects major dislocations in the world.
On a more optimistic note, and keeping in mind that I still refuse to speak with former acquaintances who voted for Obama, he did a credible job addressing the housing issue today. He enunciated many of the causes, offered some palliatives, discussed the pros and cons, risks rewards etc and notably demonstrated an awareness of the conflict in philosphical values surrounding an intervention in the housing deflation. Maybe the administration has the capacity to face reality and learn on the go. It is still all talk, and he has a ways to go before he can convince the capitalists that they are going to die rich old men. However, I feel compelled to remove Obama from my naked short list, pending further review.
Friends, observe last March 14 and 17 people very ebullient re silver and gold at 20.73 and 1004.40 and that was a time to subtract.
Last October 22 and 28 people very bearish on gold and silver at 660 and 8.45 and that was a time to add.
Maybe the financial world will end tomorrow, but Geithner, Obama, Pelosi and Reid have a lot more liars dice to play before the banker fiat currency power in DC ruse self-destructs….
Regards All*Rich
according to sinclare its poland, the zloty, and deritives big trouble brewing
c’mon! sing along!!
you know the words:
Please don’t miss this train at the station
‘Cause if you miss it, I feel sorry, sorry for you
People all over the world, join hands
Start a love train, love train
O’ Jays
Its my humble opinion that gold is rising on safe haven buying. The dollars rising because thats what the dollar does in deflation. People are trying to hedge against conflicting information. On one hand their ears hear all about Obama letting loose with the liquidity canons but their eyes see employment, retail and industrial numbers that make you want to draw up the covers and tremble in fear. Asset price deflation is getting warmed up again and people are misreading the signals they do a simple equation that goes “hell in a handbasket=gold”, but their hearts only partly into it, I think if gold gets to a grand, investors are gonna get progressively jittery, while the dollar still has room to gain on the Euro and the pound is dead man walking.
The dollars is the real move. People are CONSIDERING the hard asset angle as a HEDGE. The very rich are starting to put more percentage into gold due to the uncertaintny angle. The very rich want to still have money even if there’s nothing else left but cockroaches and asparagus left after an economic nuclear war.
Excellent commentary, Rick. It dovetails with Faber, Roubini, Sinclair, Shedlock and even the normally unflappable Yves Smith over at the mighty Naked Capitalism blog – all are detecting a global version of something rotten in Denmark.
Imagine that! The human race entered the age of globalism around the turn of the century and less than a decade later the entire globe is hit by a monster wave of coordinated corruption.
What a surprise!
Could it be gong like this :
– X is buying USD against hard currencies (Sterling, Euro, Yen, …) : USD = appreciating
– X is then going to Comex, buying Gold for these USD dollars : Gold = appreciating, but not too much & very controlled because :
– Y is selling the Gold on Comex (Y is Morgan and HSBC who are the only 2 entities in the world being Net Short Gold : Fed agencies).
=> X and Y are the same entities? (Fed Agencies)
Regards.