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Gold And Silver – Timing Is Most Important Element

edgetraderplus's picture

“Excuse me, sir, do you have the time?”

In a Clinton-esque response: “It depends on what the definition of “time” is.”

Throughout much of 2013 and all of 2014, there were numerous stories/reports out on what would have to be considered as very bullish prospects for the prices of gold and silver. There were calls for gold to rally anywhere from $3,000 to over $25,000 the ounce, $100 to over $500 the ounce for silver. Almost no one called for both metals to make new recent lows by the end of 2014, where gold was $1,180 and silver $15,50. This was a far cry from even the most conservative bullish calls for much higher prices by the end of 2014.

We were not among those calling for higher prices by the end of 2014, but neither did we expect new recent lows to occur. What happened in the face of any number of bullish expectations? Among them were:

*Record sales for gold and silver coins to the public *Huge lines of Chinese citizens buying gold coins, bars, and jewelry [Just goes to prove that the public always buys highs and never picks bottoms.] *Record purchases of physical gold by both China and Russia *Depletion of inventory at COMEX and LMBA *Hypothecation, rehypothecation, and more re-rehypothecation by US/UK central banks, to the point where there was little to no gold left in central bank vaults *Germany demanding repatriation of its gold from the NY Fed, which said there were “logistics problems” for shipping the gold to Germany. [Can’t ship what you don’t have.] *The expected demise of the Federal Reserve Note, called the “dollar,” as a world reserve currency *Establishment of the BRICS nations to compete against Western central bankers *A new world gold standard to replace all fiat currencies * Etc, etc, etc…

SI-W-24-Jan-15

Market Tensions Mount: Canada, Crude, Copper, Small-Caps, & Credit

neutr1n02001's picture

This is great! One Canadian dollar only worth 0.80 US dollar now. Considering most of the planes are priced in US dollars, it doesn't make much sense for me to buy a plane in the near future. Guess I'd better wait until the oil price is back up. Thank you, morons from Bank of Canada! What kind of idiot logic is that! You sacrifice common people to enrich a very few exporters! I admire Swiss bank and envy Swiss people. Every Swiss got 20% richer instantly. Thank heaven some of my wealth is in gold and silver!

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GCG15 – February Gold

rickackerman's picture

February Gold was gingerly consolidating last week’s robust rally Sunday night, trading slightly above a 1274.30 Hidden Pivot resistance that was the highest target that could have been projected using the intraday charts.

How Nanny State Killed American Dream

rickackerman's picture

After America: Get Ready for Armageddon is almost as depressing as its title. Mark Steyn’s 2011 book, which I’m reading now for the first time, gives statistical heft to the doomsday thread that animates this forum form time to time. There’s no point in trying to save the Republic, Steyn warns, because it’s too late; it is too far gone. The Nanny State has become all-pervasive, meddling in every detail of our lives in ways that even King George III would have rejected as too intrusive. Still worse is that the unelected bureaucrats who toil ceaselessly at crushing the energy, initiative and vitality from the economy are not only everywhere, they are paid far more than their counterparts in the private sector. Steyn notes that in 2009, the average civilian employee of the U.S. Government earned $81,258 in salary plus $41,791 in benefits, for a total of $123,049. The private-sector worker, meanwhile, received a mere $50,462 in salary and $10,589 in benefits, for a total of $61,051. That’s why the latter will be working until they are 80 to pay for government workers who retire with absolute security as early as 55.

As for electing Republicans to obstruct a Marxist president who is hell-bent on destroying America, Steyn reminds us that the loyal opposition is as much a part of the problem as the Democrats they would seek to rein in. This is even more obvious now than it was when Steyn published the book. Back then, we might have hoped that Obamacare, the most destructive piece of legislation ever enacted by Congress, as well as the largest new tax ever levied on America’s middle class, would have been repudiated and rescinded by now. Instead, the GOP has been taking potshots at the ACA’s gratuitous tax on medical devices while they bide their time waiting for the Supreme Court to decide King v. Burwell. Although the case seems likely to invalidate Obamacare subsidies in the 30 or so states that wisely decided not to set up their own healthcare exchanges, Republicans evidently have no strategy for pressing the advantage when the court decision is rendered sometime this summer.

Gold And Silver – Swiss National Bank Rally. Enough For A Change?

edgetraderplus's picture

It would seem that last week’s rally in gold was Swiss National Bank-driven, plain and simple. It is difficult to get a handle on the ramifications of what just happened with the Swiss “unpegging” from the Euro. It was becoming prohibitively expensive for the SNB to keep buying Euros and trashing their own economy in the process. Ostensibly, this is a tale of a central bank telling the US and the rest of the EU, enough! We have had it, and we are now going to be more fiscally responsible.

Right. Just after opting not to have the Swiss franc backed proportionately by gold, a move that would have been an act of fiscal responsibility. If there is one constant about world-wide central bankers, it is that they lie on an ongoing basis. The truth, if it ever comes out, may not become apparent for the next several months. It makes no sense for one part of the central banking cabal to pull a “surprise attack” on the rest of the group.

If there is one thing certain about this insidious group is that they always act in their own best interests, which means always against the public’s interest. The SNB telling others they have had enough should be viewed as more kabuki theater. The least surprising aspect of the SNB move toward “independence” is that there was probably a fantastic fortune made, in the process. That would be more in keeping with what to expect.

GC-W-17-Jan-15

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