179 replies to this topic

[dharma]

"Aristotle defined the four properties of "good" money. Money must be durable, portable, divisible and have intrinsic value. Aristotle's definition has stood the test of time. For more than 2,000 years sound money has been proven to be a good medium of exchange as well as a store of value. The only time gold money lost its intrinsic value is when governments debased coins used by the general public (reduced the gold content in a coin by substituting industrial metal at the same weight), while hoarding pure gold coins for themselves." (Courtesy of Scott Silva's "The Gold Speculator") dharma

[inamosa]

Gold rally attempt in progress...past $1528 and things will get pretty interesting. $1462 not broken and DX looks set for at least short-term weakness in the coming days. HUI oversold and due for a strong bounce, possibly more, IMHO.

Edited by alysomji, 17 May 2011 - 09:13 PM.

[dharma]

again i am in agreement w/alysomji. the powers that be, the fed, wants a lower dollar, there will be rallies all of which will fail. the race w/fiats is to the bottom. watch what they do, not what they say. crude oil- looks to have bottomed. supply from iraq and libya taken off the market. while demand from chindia and the west remains firm the miners took a beating. so did i. dusted myself off , and bought a few things yesterday. gld/gdx , gld, hui, gld/xau all @the lowest point since the 08 drubbing. i hate throwing back profits, but it is the nature of the beast. i hope to do a better job @this upcoming june top. the severity of this decline is a warning. gold only lost about 7% from its highs demand from cbs and wealthy individuals is firm. on the next decline i am thinking below 1300 is a strong possibility silver is sporting daily divergences after a 30% haircut. i think gold has a shot @new highs, silver i am not so sure. full moons have been (within a few days ) have been marking bottoms-yesterday was the full moon the fed ends qe2, or so they say, the end of june. i doubt that it lasts long. the deflationary forces are deeply entrenched and w/o some form of qe rates will have to rise. make no mistake, ben is in there to print and print he will. there is no hint of volker in him. the dollar, and for that matter almost all fiats will crash and burn under the burden of debt. if you have doubts, listen to that zell piece i posted. the government is a debtor. sovereigns never pay, they inflate the debt away. few renege. since china has become an economic power many have called for their demise. and yet they continue to grow @astounding rates. i look for them to remove the dollar peg to the yuan. they have said they want to cut their dollar hoard. and their peg to the dollar , like everyone else is causing them to have inflation. i didnt create any of these situations. but , i am not going to close my eyes to history or the reality of what is coming down the pike. dollar holders for the past 9yrs have been losing pp. i am proactively doing something about protecting my pp. the standard of living is going to change. dharma

[stubaby]

again i am in agreement w/alysomji.
the powers that be, the fed, wants a lower dollar, there will be rallies all of which will fail.
the race w/fiats is to the bottom. watch what they do, not what they say.
crude oil- looks to have bottomed. supply from iraq and libya taken off the market. while demand from chindia and the west remains firm
the miners took a beating. so did i. dusted myself off , and bought a few things yesterday. gld/gdx , gld, hui, gld/xau all @the lowest point since the 08 drubbing. i hate throwing back profits, but it is the nature of the beast. i hope to do a better job @this upcoming june top. the severity of this decline is a warning.
gold only lost about 7% from its highs demand from cbs and wealthy individuals is firm. on the next decline i am thinking below 1300 is a strong possibility
silver is sporting daily divergences after a 30% haircut. i think gold has a shot @new highs, silver i am not so sure.
full moons have been (within a few days ) have been marking bottoms-yesterday was the full moon

the fed ends qe2, or so they say, the end of june. i doubt that it lasts long. the deflationary forces are deeply entrenched and w/o some form of qe rates will have to rise. make no mistake, ben is in there to print and print he will. there is no hint of volker in him. the dollar, and for that matter almost all fiats will crash and burn under the burden of debt. if you have doubts, listen to that zell piece i posted. the government is a debtor. sovereigns never pay, they inflate the debt away. few renege.

since china has become an economic power many have called for their demise. and yet they continue to grow @astounding rates. i look for them to remove the dollar peg to the yuan. they have said they want to cut their dollar hoard. and their peg to the dollar , like everyone else is causing them to have inflation.

i didnt create any of these situations. but , i am not going to close my eyes to history or the reality of what is coming down the pike. dollar holders for the past 9yrs have been losing pp. i am proactively doing something about protecting my pp. the standard of living is going to change.
dharma

dharma:

Amen and Amen!

Yesterday a friend of mine asked me what I did - my answer:

"I'll sum up what I do with one sentence and one chart"
I invest to attempt to maintain the purchasing power of my money over extended periods of time.http://stockcharts.com/c-sc/sc?s=$USD&p=M&yr=9&mn=9&dy=0&i=p36413775883&a=234533405&r=466.png

stubaby

[dharma]

again i am in agreement w/alysomji.
the powers that be, the fed, wants a lower dollar, there will be rallies all of which will fail.
the race w/fiats is to the bottom. watch what they do, not what they say.
crude oil- looks to have bottomed. supply from iraq and libya taken off the market. while demand from chindia and the west remains firm
the miners took a beating. so did i. dusted myself off , and bought a few things yesterday. gld/gdx , gld, hui, gld/xau all @the lowest point since the 08 drubbing. i hate throwing back profits, but it is the nature of the beast. i hope to do a better job @this upcoming june top. the severity of this decline is a warning.
gold only lost about 7% from its highs demand from cbs and wealthy individuals is firm. on the next decline i am thinking below 1300 is a strong possibility
silver is sporting daily divergences after a 30% haircut. i think gold has a shot @new highs, silver i am not so sure.
full moons have been (within a few days ) have been marking bottoms-yesterday was the full moon

the fed ends qe2, or so they say, the end of june. i doubt that it lasts long. the deflationary forces are deeply entrenched and w/o some form of qe rates will have to rise. make no mistake, ben is in there to print and print he will. there is no hint of volker in him. the dollar, and for that matter almost all fiats will crash and burn under the burden of debt. if you have doubts, listen to that zell piece i posted. the government is a debtor. sovereigns never pay, they inflate the debt away. few renege.

since china has become an economic power many have called for their demise. and yet they continue to grow @astounding rates. i look for them to remove the dollar peg to the yuan. they have said they want to cut their dollar hoard. and their peg to the dollar , like everyone else is causing them to have inflation.

i didnt create any of these situations. but , i am not going to close my eyes to history or the reality of what is coming down the pike. dollar holders for the past 9yrs have been losing pp. i am proactively doing something about protecting my pp. the standard of living is going to change.
dharma

dharma:

Amen and Amen!

Yesterday a friend of mine asked me what I did - my answer:

"I'll sum up what I do with one sentence and one chart"
I invest to attempt to maintain the purchasing power of my money over extended periods of time.http://stockcharts.com/c-sc/sc?s=$USD&p=M&yr=9&mn=9&dy=0&i=p36413775883&a=234533405&r=466.png

stubaby

yes , it is the name of the game. gold will have corrections as will the dollar. but make no mistake the dollars trend is down and golds trend is up/ folks who this eludes, miss great opportunity. weakness in the metals is a gift.
they are flooding farming areas in the south to prevent the refineries from shutting down. this will exacerbate rising food prices
iraq and now libya are off line . this will send energy prices higher
the country is in recession/depression and deep in debt . interest need to remain low. remove qe =less money chasing more supply of bonds/bills= rising interest rates. the fed will be forced to print. they may say otherwise. but print they will
the metals are your protection.
1500 here appears to be stiff resistance. we know that. its a round #. suck in more shorts to be fodder. its a cruel game. get your emotions in check gain understanding. oh yeah, fundamentals matter
dharma

[inamosa]

IMHO: $1500 has been a tough nut to crack. If gold can get past it then there's a good chance we see one last move higher before the summer downturn gets underway, perhaps to new highs or perhaps just to $1525-35. Otherwise, the summer downturn has already been underway - in which case it will be boring for at least a couple of months, but things Gold perk up again in late summer or early fall. I suggest everyone keep a close eye on $1500 and $1462. Range-bound for now but there will be a breakout coming one way or the other.

[uh'sgirl]

IMHO:

$1500 has been a tough nut to crack. If gold can get past it then there's a good chance we see one last move higher before the summer downturn gets underway, perhaps to new highs or perhaps just to $1525-35. Otherwise, the summer downturn has already been underway - in which case it will be boring for at least a couple of months, but things Gold perk up again in late summer or early fall.

I suggest everyone keep a close eye on $1500 and $1462. Range-bound for now but there will be a breakout coming one way or the other.

I agree. I would also note that if gold consolidated for a while near the bottom of that trading range, a right shoulder could develop on a wierd looking H&S pattern on the daily gold chart. That pattern would be the inverse of the one which contin ues to form on the USD.
Gold

uh

[dharma]

the band of resistance in my work is 1495-1513. i have another date next week , we shall see. saw a chart of sentiment #s for silver. believe it or not, silver is near the lows of 2008 in sentiment. the year before an election is historically bullish for stocks(not gold stocks necessarily, but for the broad market). the food stuffs put in a stellar day yesterday oil also put in a stellar day. i look for a run in commodities. there is so much uncertainty gold will benefit from that run, should it occur. the apparent killing of obl will give obama the election. repubs are in disarray. ron paul is too honest,has too much understanding the rest @this point are just power hungry i have to give the benefit of doubt to the bull. surprises are on the upside! i am not doing a thing in here. show me! dharma

[inamosa]

I also caught the sentiment numbers for both gold and silver and they are sitting at levels that normally occur at the bottom of multi-week corrections. So, I am hopeful of at another high coming in gold and am not sure about silver (probably not in silver for at least 8-12 months, is my guess - but it should rebound perhaps to the low $40s).

[dharma]

I also caught the sentiment numbers for both gold and silver and they are sitting at levels that normally occur at the bottom of multi-week corrections. So, I am hopeful of at another high coming in gold and am not sure about silver (probably not in silver for at least 8-12 months, is my guess - but it should rebound perhaps to the low $40s).

it astounds me how quickly people give up on this stuff(indication:the bull has alot more time left) i didnt mention the gold #s but as you say both are @levels that indicate bottom. silver is so so so volatile anything(the unthinkable)is possible
i read this am soros sold his gold(opps he forgot to mention this) and bought miners.
gold=money
dollars=debt
i suspect if we do get a run here , the bulls and bears will be worn out by the time it occurs
just sitting!
dharma