The Golden Truth: Gold: Look Out Above...

Thursday, April 29, 2010

Gold: Look Out Above...

One very reliable directional indicator for the price of gold is The Privateer 5x3 point and figure chart, the one below goes back to 1985. I was in a lazy mood today and I think this chart pretty much speaks for itself. The P&F pattern is a double-top breakout and the odds are high that the price of gold will soon challenge the $-based all-time high, following right behind the persistent all-time highs for euro-gold that have been hit repeatedly over that past few weeks. Here's the source for this venerable chart. I am not a current subscriber to the The Privateer but was for several years: LINK

(click on chart to enlarge)

On another note, several people have remarked to me that it now appears, based on this week's action on the Comex, that some big money may be challenging the fraudulently massive short positions in gold and silver. Hard to say for sure, but in the face of increasingly aggressive attempts by the likes of JPM and HSBC to beat down the price of gold and silver, especially silver, the futures have been rebounding sharply almost every day. I'm not sure I would want to be short the precious metals market right now...

7 comments:

MikeThursday, 29 April, 2010
they probably listened to andrew macguire's interview about non-westerns traders that are going to blow up the comex market have to be certain the shorts are naked.
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TheBoogieManFriday, 30 April, 2010
Gld up 1% and Phys down on the day. I have both and phys has been a major disappointment. you rage on and on about gld but phys looks like the rip off.
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AnonymousFriday, 30 April, 2010
Dave, since u'r in a lazy mood, here is something to get u'r blood boiling:
[Miss him? Bush's reputation might be ready for a rebound]
http://news.yahoo.com/s/mcclatchy/3491615
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Dave in DenverFriday, 30 April, 2010
I hated Bush - I hate Obama more. At least with Bush we knew we were getting fraud and corruption. Obama is a smooth-talker who many still believes has good intentions. But he's taking the anti-constitutional doors opened by Bush and running thru them.
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Dave in DenverFriday, 30 April, 2010
Hey Boogie - If you don't like PHYS then sell it. I would suggest and would bet that over a longer period of time than a couple months, PHYS will substantially outperform GLD.

Investing requires more than going off 3 minute charts and 10 day moving averages.

If the physical market ever does blow up the paper market, and if GLD has been leasing out its gold, GLD will drop by at least 50% in the face of gold spiking to the moon.
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RothbardFriday, 30 April, 2010
Agreed Dave.

In the last week, X has performed better than Y, so it MUST be better.

Reminds me of a caller to a certain financial network, who said after thinking about it, he felt even more safe holding Silver Certificates with Scotiabank than getting physical.

There are no staorage costs, assaying fees or monthly charges. Its a no-brainer right? He is right it is a no-brainer. Why do you think the bank has all those roadblocks in place to DISCOURAGE you from holding physical?

PAL, it works unitl it doesn't.
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Dave in DenverFriday, 30 April, 2010
BNS has problems. This is coming directly from someone having problems getting delivery and it's not Harvey Organ.

Check out the amount of silver and gold BNS has taken off the Comex this week:

http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsReport.pdf
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.