Al's Insights – Wed 24 Aug, 2011

From Alaska, Big Al discusses the Tuesday gold market with Sean Brodrick, Dan Pisenti and Dr. Russell Meyers

Click download link to listen on this device: Download Show


Featuring:
Al KorelinSean BrodrickDan PisentiRussell Meyers

Comments:
  1. On August 24, 2011 at 9:25 am,
    Marc says:

    Big Al,
    I completely agree. ANYBODY who looks at this market through myopic, short-term spectacles and gets “spooked” by short-term corrections shouldn’t be playin in this arena – it will drive you insane. Remember:
    1. China and India are not goin away – they’re here to stay and their billions of PM buyers and their proclivity for hard assets.
    2. Our currency crises are here to stay – for a while.
    3. Our debt crises are here to stay – for a while.
    4. Our “leaders” are here to stay – for a while :}.
    5. Our entitlement obligations are here to stay – for a while (trillions).
    6.,7.8…..etc, etc
    There are NO quick fixes, magic wands or potions to solve this…its going to get worse before it gets ANY better! This has been a 40 year paper pushin nightmare.
    You guys and only you guys can be proactive and act accordingly – long term trends are just that LONG TERM!
    All the best,
    Marc
    P.S. I will tell you what I still dont believe ONLY 1% of all portfolio investments in this entire world are in PM’s and mining, etc. NOW if that isn”t a mis-allocation of funds I don’t know what is! We got major ” deer in the headlights” stuff goin on :}.

    • On August 25, 2011 at 1:35 pm,
      Big Al says:

      Hi Marc,

      Hard for me to add anything to what you said. Very positive and accurate summary on your part.

      Big Al

  2. On August 24, 2011 at 9:41 am,
    irishtony says:

    HI AL. It could just be people taking a profit !, but i think THE MOB are up to their old tricks again. Me i’m sticking with my physical. Enjoy your travels.

    • On August 25, 2011 at 3:02 pm,
      Martin says:

      Hi Irish Tony
      We are in the UK.
      This was no normal correction, I agree with you, it was a take down pure and simple manipulation.
      This was instigated by the USA government they are all a bunch of criminals ripping everybody off.
      They are trying to discourage people buying into gold & silver and keep whacking these markets.
      This is especially true for the relatively small silver market.
      We should have seen the writing on the wall when the shorts started doubling every day. Then you get the media stating that Sprott is selling Gold to buy silver. was there any truth in this, I doubt it?
      If there was he’s lot a bundle as well. (let us know Eric).
      Short selling should be banned!

      The US Goverment & Fed are all in it together along with JP morgan, HSBC and the other bullion banks. They all have the money to manipulate markets.
      Theywant you to buy ther useless dollars and worthless bonds.
      America has a bad name the world over and its getting worse by the minute with these tactics.
      They have spent beyond their means and want to get it back by any means possible.
      Everyone was complaining why silver was not keeping up with gold.
      It should be pretty obvious its a busted market, after the crash from $50 in May and 2 more since, people have no confidence in the silver market anymore, its finished. How high will it go now before another takedown? Are you going to risk it again?
      I sadly bought in at $44 like many others thinking it was going back to $50.
      They suckered us all in and stripped us of our money and savings.
      We in the UK are just hoping for the day when the the dollar totally collapses and China takes over.
      We need another downgrade, come on Standard & Poors get on with it.

      Martin UK

  3. On August 24, 2011 at 9:49 am,
    irishtony says:

    Mark. I agree with you. The people at the top are into P.M.s , in a big way, they just dont want the rest of us to know about it . SLIMY SODS. Good health to you.

    • On August 25, 2011 at 1:37 pm,
      Big Al says:

      Hi Irishtony,

      Was a great trip and I am devoting the entire Weekend Show to it. That’s how impressed I was.

      When you say the people at the top are into precious metals, just look at the Chinese!

      Big Al

  4. On August 24, 2011 at 12:39 pm,
    carlton says:

    Gold was way overbought with bullish sentiment so naturally a correction was overdue.

    I shorted gold early this morning at $1854 and $1822(which I don’t advise for most people unless you keep tight stops and trade small contracts)and took profits at
    $1797 and $1770. I trade was very successful after watching gold break those two support levels. Now I would not be surprised to see a bounce off todays lows and then further retracement to possibly the $1670 level thus filliing the gap on the day chart but then again that gap may not be filled until after this bull market ends.

    Silver traders on margin got hurt today unless they put in tight stops. We had about a $5.00 drop so far from yesterday. OUCH! Last price was around $39.25.

    Physical metals are safest bet. Take physical possession and hide them in a safe somewhere out of the hands of bankers and other crooks.

    I’m looking for the U.S. Dollar to fall hard in possible panic selling if Sep 73.50 is broken. Metals could surge much higher very quickly and hedge funds might rush into gold and silver.

    Once $2,000 gold and $50 silver is reached then the public will possibly start to get the idea that maybe they should own some real money instead of fiat paper. But the average person doesn’t have much savings and will be hard pressed to buy anything but food (at much higher prices and other necessities like gas for their car)

    • On August 24, 2011 at 4:43 pm,
      Lynn says:

      Carlton,

      Ag seems to be following Au in all of this. I guess the Pigmen wanted a cheaper price or someone else out there.

      But no doubt, NO DOUBT about it that people should hold physical Au and Ag. More and more are coming around to the reckoning of the fact that the Nice Government Men are killing their own created currency. Whether it’s in the West or the East.

      And if people cannot purchase Gold or Silver witht heir current stash of paper dollars, stocking up on households and food is necessary NOW!

    • On August 24, 2011 at 9:25 pm,
      John W. Robertson says:

      Carlton, I took a short-term, short position on silver (sacrilege!) about a month before the debt-limit issue…it’s not for everyone, but you’re correct…there’s a lot of ups and downs in fast moving markets of any kind. Even with technical analysis, this field is fraught with uncertainly, so as you say…very tight stops, buy wisely, and have a target to exit the trade. I got out even, with only 2 short windows for profit (didn’t see the debt limit debate going as far as it did). But there’s money in ‘dem dare peaks and valleys.

      For those who are just long, which is my definite and normal view on metals, expect a few of these hard down days. There are a lot of nations and reserve banks who are willing to do anything to keep metals from rising…expect some interference, and outright profit taking at times. If we were just going to go straight upwards, gold would be at $5K by Christmas. Trader Rog talks about these swings and he is correct…this is just par for the course.

      As you say, nothing has been improved in the world’s finances today. I run a small consulting company and we analyze the “wealth of nations”. Even with numbers from 2006, before the financial freeze and all the trillions of subsequent spending, our alarms bells were ringing. Things have only got worse with the collective trillions that have been borrowed and spent, with only a pathetic, small bump on tax collections and stock market wealth created to show for it (and virtually no lasting capital improvements or labor hiring). The western world “pulled a Japan”, and we’re still doing it now. We all know you cannot fix too much debt with more debt…well, most of us here at least. It’s just idiotic.

      • On August 25, 2011 at 1:44 pm,
        Big Al says:

        Hi John,

        Are you based in Vancouver, B.C.?

        Big Al

    • On August 25, 2011 at 1:41 pm,
      Big Al says:

      HI Carlton,

      Congratulations on your successful trade.

      Regarding food, I had a very interesting conversation with a couple from Minnesota who had been farmers all their lives starting years ago in Pennsylvania.

      The husband really opened my eyes regarding food shortages which could very possibly occur in the future. The example he gave me was corn. According to this fellow, the corn supply in the U.S. is lower than it has every been or at least close.

      Thanks for your comments,

      Big Al

    • On August 25, 2011 at 1:41 pm,
      silverbug (Dave) says:

      I am looking at that gap near $1670 and the price went down to near the top of the gap on this pullback but has not filled the gap not yet anyway. Maybe there are some gaps that are never filled. We have seen several gaps up in gold lately on Sunday nights when Asian trading opens. Gaps are interesting and seem to come on some kind of news, the debt downgrade of the USA being a good example, the debt ceiling raise, the bin Laden assassination and others too. Even so, I wonder how significant gaps really are because these gaps occurred over weekends and just represent anticipation of some news or other that is manipulated over a weekend when markets are clsoed. If the markets were open, the price would have just risen at 45 degrees or fallen at 45 degrees and no gap would have occurred.

      • On August 25, 2011 at 1:46 pm,
        Big Al says:

        Hi silverbug(Dave)

        Interesting points you make.

        The important thing for all to remember is the trend and not the short term “gaps”.

        Best,

        Big Al

  5. On August 24, 2011 at 4:28 pm,
    Lynn says:

    Hi Al,

    I know we were all expecting a correction, but this also came out today as well–> http://blogs.marketwatch.com/thetell/2011/08/24/cme-raises-gold-margin-requirements-again/ <–

    From the page: For the second time this month, the CME Group Inc., the parent company of the main metals and energy exchanges in the U.S., announced late Wednesday an increase in margin requirements to trade gold. It raised the amount of money needed to trade gold contracts by 27% to $9,450 per 100-ounce contract.

    I heard from other people that they did this on the Shanghai Exchange yesterday.

    • On August 25, 2011 at 1:47 pm,
      Big Al says:

      Hi Lynn,

      As was the case earlier, this rise was to be expected.

      Best,

      Big Al

  6. On August 24, 2011 at 5:19 pm,
    Karen says:

    Hi Al,
    In view of the fact that Chavez has recalled about $11 billion gold that is stored in U.S. and European, I think gold will move higher quickly.

    • On August 24, 2011 at 9:39 pm,
      John W. Robertson says:

      At $2K/oz, that would be about 5.5 million ounces or 172 tons. That’s quite an inducement to move the price, but my only concern about this being a price trigger is the market has handled this volume (re the IMF 400 t sale). It also has a self-correcting feedback loop, in that as the price/oz rises, less ounces are needed to fulfill the order. I might indeed be wrong, but I’m curious if this will move gold as much as we think, at least on it’s own per se. I think there just might be enough dumb countries willing to sell their gold to boost their supplies of rotting dollars to supply such a market.

      I only say this as I know (and feel myself) the anxiousness of wanting to see the price of gold really “go”, but sometimes we don’t see reasons for why it may not occur as fast as we expect…or want.

      • On August 25, 2011 at 1:50 pm,
        Big Al says:

        HI John,

        I agree with your comment to Karen.

        It is really important to “see reasons for why it may not occur a fast as we expect…or want”

        That’ obviously called using your head!

        Big Al

    • On August 25, 2011 at 5:09 am,
      Har says:

      Nope. Taking delivery means other can not borrow against it. Which means more ounces on the market.

  7. On August 24, 2011 at 5:32 pm,
    Paul S. says:

    Thank you traders for bringing gold down, for my buy and hold plan for precious metals, that I can purchase at a lower price.

    • On August 24, 2011 at 10:35 pm,
      AlKorelin says:

      Hi everyone,

      Just got back. Tired! Will be back in the morning

      Best

      Tired Big Al

  8. On August 25, 2011 at 5:08 am,
    Har says:

    Top signal was the miners issuing new stock at record rate.

    Taking delivery means other people can not borrow against it.

  9. On August 25, 2011 at 1:51 pm,
    Big Al says:

    Hi silverbug(Dave)

    You are what this audience is all about and why this comment section is so interesting and educational.

    Best,

    Big Al