$80 Silver by spring…. physical only.
:Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with dollars, purchasing power of which is artificially inflated against oil and gold by the efforts (manipulations) of the West. However, Putin uses these dollars only to withdraw physical gold from the West in exchange at a price denominated in US dollars, artificially lowered by the same West.:
:The Western world has never faced such economic events and phenomena that are happening right now. The former USSR rapidly sold gold during the fall of oil prices. Today, Russia rapidly buys gold during the fall in oil prices. Thus, Russia poses a real threat to the American model of petrodollar world domination.:
Don’t know if that is a good thing, or not. Bitcoin showing some strength again, now $371.
Commodity Trader J.B Slear of Fort Wealth Trading Co. has long been an advocate of squirrelling away the ‘nuts’ of Gold, Silver, and Cryptos. His blog often has an interesting take on the markets:
“…But then I remember I’ve been in cartoon land for about 3 years now in a place where reality doesn’t matter, only the painted charts that very few can profit in. Treasuries have been kept from falling as the support mechanism (aka Algo’s) dare not allow one iota of reality in otherwise the entire system would weaken into a pile with the central banks smothered in their own unprofitable and unwanted products. This rally surely couldn’t be the banks trying to support a president who seems to be inciting a revolution in his own backyard (could it?). Why I haven’t started drinking heavily in the morning is another question I have to ponder as well.”
In Germany for now or next in Europe.
Another problem in the commodity world is take/make delivery. It’s not possible for an individual farmer to deliver grain on the futures market. It requires a “delivery certificate” issued by an elevator and they won’t issue to an individual. The elevator doesn’t get their additional $.50 if they don’t sell it. Try to take delivery of gold and silver. They will issue a “warehouse receipt” and storage and insurance starts.
producers want to sell at the top, commercials want to buy at the bottom. The speculator moves the market from bottom to top. When they allow owed the slime balls in the middle, things went wrong. The regulators just had to look the other way for a few million.
For example, you and a hundred other people each buy 1,000 shares each of GG to hold for the long term. They will not be for sale for a very long time.
Then, along comes a bunch of unknown strangers, with an opinion prediction or guess, that prices will drop. They can borrow your shares and dump them like garbage into the market place, and actually make the price drop, just as if YOU a the hundred others sold out early.
So it kind of evens out.
No Perrier, just empty Dorito bags.
In my opinion, the story below is about how the gov’t and banks get involved in the supply and demand price of a commodity. The supply and demand of a product, food, fuel or metal, imo, should ONLY involve the actual producers and final users. Fake “middle men” placing bets, should NOT be involved with buying or selling things they do not own use or produce.
What they have been doing with pricing goods, would be like people betting on the winner of a super bowl football game, and if most of the betters thinks team “A” will win and team “B” will lose, that’s what will happen.
For example, the “gamblers” buying tons of “paper” oil, made oil price get too high. And too low recently. Also, for example, if the weather report says a Cold snap with frost is coming to Florida, they fall over each other to buy long Orange juice contracts and drive price too high.
There have been many complaints to representatives about these market price distortions for decades, but they never do anything about it. Like our open borders, fast and furious, IRS scandal etc. Ie stonewalling.
The story below SOUNDS like they may change their ways because they screwed everything up so much.
The Federal Reserve may curtail Wall Street commodity businesses after lawmakers said banks’ role in energy, power and metals markets spurred unfair trading advantages and could threaten financial stability.
This week, the Senate panel released findings from a two-year investigation that said Wall Street’s role in owning commodities provided undue influence over prices and could threaten the economy
Federal Reserve President William C. Dudley questioned whether banks should be involved in commodities at all. The Fed is looking at the issue “intently,” he told lawmakers on the Senate Banking Committee.
Levin faulted banks for stockpiling commodities at the same time they were engaging in “massive” transactions to buy and sell them and trade derivatives tied to oils and metals. The situation “raises concerns” about market manipulation and unfair trading, he said.
Appreciate if you could Oasis label those adorable photos. Seem to recognize one of them as Buygold and the other as Goldi. But just who the other two are I dunno.
Well you won’t get rid of any of that smell with a Bush or a Clinton…….just more of the same!!!
NAPALM for Xmas.
What we want is to get rid of the FOUL ODURE first and get the Place fumigated ..
The next inhabitant will need to take extraordinary measures to remove all traces of it.They might try Boric ACID that will kill vermin and then maybe an ionizer to refresh the place also a paint job with oil based paint that usually runs the vermin out of the walls and ceilings.
I cant imagine how 8 years of LIES and DECEIT can be removed from the place ! Its going to take a Saint and maybe a Exorcist to remove the Demonizers from the foul air that permeates the place.
Not that there’s anything wrong with car salesmen but we need a president till we don’t and that’s where it’s going at this rate.
From the Manitoba Herald:
The flood of American liberals sneaking across the border into Canada has intensified in the past week, sparking calls for increased patrols to stop the illegal immigration. The Republicans winning the Senate is prompting an exodus among left-leaning citizens who fear they’ll soon be required to hunt, pray, and live according to the Constitution.
Canadian border farmers say it’s not uncommon to see dozens of sociology professors, global warming activists, and “green” energy proponents crossing their fields at night.
“I went out to milk the cows the other day, and there was a Hollywood producer huddled in the barn,” said Southern Manitoba farmer Red Greenfield, whose acreage borders North Dakota. “The producer was cold, exhausted and hungry. He asked me if I could spare a latte and some free-range chicken. When I said I didn’t have any, he left before I even got a chance to show him my screenplay, eh?”
In an effort to stop the illegal aliens, Greenfield erected higher fences, but the liberals scaled them. He then installed loudspeakers that blared Rush Limbaugh across the fields, but they just keep coming.
Officials are particularly concerned about smugglers who meet liberals near the Canadian border, pack them into electric cars and drive them across the border where they are simply left to fend for themselves after the battery dies.
“A lot of these people are not prepared for our rugged conditions,” an Ontario border patrolman said. “I found one carload without a single bottle of Perrier drinking water. They did have a nice little Napa Valley cabernet, though, and some kale chips.”
When liberals are caught, they’re sent back across the border, often wailing loudly that they fear retribution from conservatives. Rumors have been circulating about plans being made to build re-education camps where liberals will be forced to drink domestic beer and study the Constitution.
In recent days, liberals have turned to ingenious ways of crossing the border. Some have been disguised as senior citizens taking a bus trip to buy cheap Canadian prescription drugs. After catching a half-dozen young vegans in blue-hair wig disguises, Canadian immigration authorities began stopping buses and quizzing the supposed senior citizens about Perry Como and Rosemary Clooney to prove that they were alive in the ’50s. “If they can’t identify the accordion player on The Lawrence Welk Show, we become very suspicious about their age,” an official said.
Canadian citizens have complained that the illegal immigrants are creating an organic-broccoli shortage, buying up all the Barbara Streisand CDs, and renting all the Michael Moore movies. “I really feel sorry for American liberals, but the Canadian economy just can’t support them,” an Ottawa resident said. “How many art-history majors does one country need?”
Trying to reassure his liberal base and get them to return to the U.S., President Obama reiterated what he said in his press conference following the beating the democrats took in the last election: “I heard from the 1/3 of the electorate that voted, but I also heard from the 2/3 that did not vote.” Who knew the president was clairvoyant?
He also said the reason the democrats got their asses whipped wasn’t because of HIS policies, but rather because the Dems did not get his message out to the people. Ya gotta love a guy that takes responsibility when something goes wrong.
Those things have gone on before including different countries. don’t think it was just the Fed who propped up the markets. It is people running from low interest banks, and issues going on in their country.
If so what happens when the Fed can no longer do so. Will it come crashing down with a Big Bang. Forward trading has been going on for many reasons from driving it up to sell into it, to trade ahead of rest to sell higher, to go short next due to up tic laws. It is the primary reason so many won’t recognize a real move until they are left behind from the lows. They get back in with a bid up then falls. Then people say I’ll wait this time yeah yeah I’ve seen this before. That’s why I say hedge for those who hold long. What the end game is I don’t know but the bubble this time seems to be in bonds that could come crashing down. When that happens money will have to move somewhere.
Likely it could as it is already move into stocks. Initially I can’t know for sure what will happen when it goes if it goes like the real estate bubble. Armstrong who is more focused on Equities although pointed out that if it should happen like this post even tangibles or PMs will rise. Since the PM highs were at the bottom of his ECM and began to fall as it began to rise I first wondered if he was pointing out that perhaps the opposite when it fell. It may it may not but possibly then follow it. Haven’t had time to put all the pieces together.
Heres a post from him a few weeks ago. Meant for info only:
QUESTION: Martin; I read with much interest your latest post that appears to be very bullish on the US share market. On 10/14/14 you posted the following:
” If we were to make new lows and fall to test the 15900-16000 level this week, then a rally back into November 3rd week is possible with a turn back down into January. That would be the shifting of the cycle warning we are dealing with a cycle inversion that would extend the high into 2017-2018. That would be VERY VERY VERY bearish for government.”
It looks like the market has done exactly as you forecast at that time. With your recent bullish post are you now thinking that this isn’t a cycle inversion and that the market will not turn back down next week into January?
Thank you, I’m a big fan of your work!
REPLY: We came within just a hair’s width of achieving a Sling-Shot Move to the upside. This is how markets actually propel themselves back and forth. They are like a pendulum. The energy spent in one direction becomes exhausted and that then is transformed into the energy to send the market cascading in the opposite direction – short cover or panic selling. We have sophisticated models that measure this flow of energy.
Our energy models on the Dow confirm that we did not achieve the Sling Shot Move. The energy reading for October came in still at a positive 7100 points, which was down from September 7300 point level (This means there is 7100 points worth of buying above equilibrium). The measurement of energy is based upon highly complex math. All the energy that was created to the negative during the Crash 2007-2009, was completely reversed within just 7 months. This confirmed that NEW HIGHS would be seen as the ECM turned back to the upside 2011-2015. Barron’s reported that forecast with a bit of bewilderment to say the least. Most could not believe that forecast. But this energy model the day of the low in the 1987 Crash, allowed us to forecast the low would hold and NEW highs would be made going into 1989. That forecast was also correct and marked the Japanese bubble. This not OPINION. This is simple hard-line forecasting.
It is still possible to see a weaker version of a Sling Shot Move, but to a lessor degree meaning it is extended in time. This means we may still see high going into 2015.75 and an extension into 2017-2018 on top of it as capital continues to shift from the Public to the Private Sectors. However, now January becomes critical. If we consolidate into January, then we will see the market turn up into March. If we see a high in March with a low into the ECM 2015.75, then we may yet see that Sling Shot Move into 2017 with the mid 40,000 target. It certainly appears that the market is extending time. A high in 2015.75 should be blasting its way now. Consolidating will warn of extending this entire move because of a very serious Bond Bubble and the Big Bang in the Sovereign Debt Crisis.
We still see the two primary targets for highs on this run in the 26000 area followed by 43000 area. The latter would have been a Sling Shot Move now for a high in 2015.75. We are still in a position to see that level but it would appear more-likely-than-not to be the 2017-2018 time period.
This is a question of TIME more so than price. Keep in mind that the amount of capital contained in the bond markets is at least 3 times that in equities. If we see the Bond Bubble in 2015.75, then the capital pouring out of bonds will be like the 1929 Stock Market Crash. That money will then flow outward. This is when we will see the greatest potential for a rise in equity and YES we should see the turn in all tangibles including gold.
Looking at the timing array, volatility will start to rise from here on out. November is an important shift in trend. So far, the wild swings have come on time. We warned the markets would be quiet until September 2014. That so far has been spot on.
The week of November 3rd was a key target in many markets. This is where we will see if we back off or blast out. We may see a new high on Monday intraday, but a lower closing will warn that we may now back off and retest support.
There is resistance just overhead in the 17712-17725 area. A lower closing on Monday will signal a retest of support.
Yes, this is looking to “be VERY VERY VERY bearish for government.” As nuts as our forecast seemed back in 1985 that we would see the long bond at the 150 area, that target has been accomplished and on time.
This is the Bond Bubble we have been warning about all these years with Big Bang coming into focus for 2015.75. The slide from our 1998 World Economic Conference projected the sequence of events necessary to lead us to Big Bang. So far, everything has unfolded precisely as the computer had forecast. All that is left now is the home stretch to Debt Day.
The worst for the Sovereign Debt Crisis seems to be first shaping up in Europe. Here we have new highs but with declining energy. The divergence warns that we are in a MAJOR topping pattern.
Everything is correlating so far on time. We have the metals crashing shaking the tree to get rid of all the perpetual bulls. They just have to be devastated before you can move in the opposite direction. This is just how markets move. The stock market advance has been with historic lows in retail participation. This sets the stage for the skeptics to rush back and buy the highs. The average person buys or sells based only when they see confirmation. This is what leads to buying highs and selling lows. The rally will come when the fresh crowd all start to buy once again. That becomes the question as to how high is high. It is starting look like the 43000 number more so than just the 26000 level. We need more price action to confirm that outcome.
A golden oldie…Lehigh Valley PA-1 first generation diesel