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Kitco Gold Commentary

Big Al
June 28, 2012

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Discussion
38 Comments
    Jun 28, 2012 28:37 PM

    watch the conventionmal markets come roaring back in the last 1/2 of trading. the equity markets shrug off all news. meanwhile gold is crushed again. not good. not good. if your not worried about gold more power to you. i’m worried. silver breached its support, no bottom. gold desperate to hold %1550. this decision was not a surprise. there are forces at work.

      Jun 28, 2012 28:41 PM

      Does the PPT take Fridays off though?

        Jun 28, 2012 28:49 PM

        Probably not!

        Big Al

      Jun 28, 2012 28:47 PM

      HI James,

      Yes, there do appear to be forces at work!

      Big Al

    Jun 28, 2012 28:50 PM

    ROG……..Whats more important……..THE CONSTITUTION, OR THE ECONOMY ?

      Jun 28, 2012 28:49 PM

      Definitely the Constitution, Mr. Irish. That is what this country was built upon!

      Big Al

    Jun 28, 2012 28:55 PM

    Without a sound, thriving, functioning economy there can be no constitution. When they knocked those towers down they were attacking our economy, not the buildings, and sad to say they succeeded. Now we don’t have either. Sad day for America.

      Jun 28, 2012 28:10 PM

      JAMES. If they had have stuck to the letter of the constitution from day one , then in my opinion , the economy would not be in the mess it is today. Not just a sad day for America, but for the free world……Remember where America leads the rest follow.

        Jun 28, 2012 28:52 PM

        Unfortunately Mr. Irish that is true, but getting to be less and less the case.

        Big Al

      Jun 28, 2012 28:51 PM

      In spite of what I said to Mr. Irish, in part I agree. But, you know in by book The Constitution is the basis of it all and with it the economy would be sound!

      I guess I am just sentimental.

      Big Al

        Jun 28, 2012 28:58 PM

        AL i do agree, & your not just sentimental, you are also using common sense…Are we still allowed to use common sense ?

    Jun 28, 2012 28:59 PM

    If you do not own Gold or the associated equities, this is a heck of a time to start getting in. I can’t believe what some of these stocks are selling for. This reminds me of seeing an old pink sheet from the 80s which listed Microsoft at $1.65 per share.

      Jun 28, 2012 28:52 PM

      I agree Jed!

      Big Al

      Jun 28, 2012 28:00 PM

      I agree too Jed. There are some smart fellers here who can time quite well, and truth be told I enjoy the game of TA myself, but it’s debatable how much longer someone should wait. I’d start being worried about missing on the upside rather than looking for a bottom. Could be a a few weeks or few months, but like all sales, it will eventually come to an end.

    Jun 28, 2012 28:12 PM

    Al –

    Not to be too critical of Roger’s prognostication of a upward spike in the price of gold earlier this week, but the blind chicken actually gets some of the feed every once in a while.

    I think the usefulness of technical analysis has been greatly watered down in the environment that we find ourselves in.

      Jun 28, 2012 28:44 PM

      GDF,
      I agree with your comments.

      Jun 28, 2012 28:53 PM

      I have to agree with you going down fast. It is important to me to see all the arguments though!

      Big Al

      Jun 28, 2012 28:28 PM

      going down fast,
      i am with you on your TA comment. I love TR but going out on a limb 2 times??? and yes a broken clock is right twice a day.

        Jun 29, 2012 29:33 AM

        Well Bobby,

        Gold is up close to $50 today.

        Best,

        Big Al

          Jun 29, 2012 29:06 PM

          How right you are! btw my silver dollar came up heads today when i flipped it too. we are all winners.

      Jun 28, 2012 28:16 PM

      I politely disagree with your statement Mr. Fast. Both the good Doctor and myself (mostly the doc) have been saying that technicals point to downward pressure. So, what is it about fundamentals? If fundamentally the metals should be rallying, then why aren’t they? They will, no doubt about it, but right now the fundamentals are getting taken to the wood shed with and ugly club. Technicals are a DIRECT reflection of market psychology and what they reflected and have been reflecting is a bias towards the downside, mostly from the larger time frames.

      So, as the metals prices continue to have downward pressure, are we to keep beating the same drum until we are eventually proven right? No. But if you are in for the long haul AND I THINK MOST ON THIS SITE ARE, then buying the physical is the smartest thing to do.

      But technical analysis – in my own opinion – is EXTREMELY useful because you trade both offensively and defensively if you are wrong.

      I do however, LOVE your analogy of the “blind chicken” – LOL!!! 😉

      stay frosty.

    Jun 28, 2012 28:43 PM

    equity markets came roaring back from the dead just as I predicted. These markets are no better than casinos.

      Jun 28, 2012 28:54 PM

      Well it kind of looks that way given the move away from fundamentals!

      Big Al

        Jun 28, 2012 28:02 PM

        Big Al,
        Here is the Eu’s solution and US
        http://www.jsmineset.com/A for that matter…….QE

          Jun 28, 2012 28:05 PM

          OOOPS…try this!
          http://www.jsmineset.com/
          Marc

            Jun 28, 2012 28:31 PM

            Hey Marc,
            Thanks for that.
            For a while today jsmineset was down, and I thought – oh oh the old boy has had enough and shut the site down.

            Thank goodness it’s up and running again.

          Jun 29, 2012 29:29 AM

          The EU solution, Marc, seems to be the capitulation of the German philosophy.

          Too bad.

          Big Al

    Jun 28, 2012 28:16 PM

    Just my 2 cents but I feel the whole thing is controled. Especially with somewhere between 50-80% algorithmic trading. (depending on who you read) I have read that demand has not matched supply recently and I also read that another 300 million oz of added production in 2013. Talk about it going to $14 and staying for years.Honustly I think the 1 thing gold has going for it is if the powers that be make it a teir 1 asset. For their own gain of course, but revalued gold would fix alot of books. In my opinion these markets are totally controled and if we are lucky its not to fleece us completly and I have read arguments for that too.

      Jun 28, 2012 28:58 PM

      Yep first they take Italy’s gold & other countries, when they accumulate most of it, revalue at 5 times or more… Maybe that’s the plan. But what do I know…

    Jun 28, 2012 28:18 PM

    Oops, thats 300 million added oz’s of silver.

      Jun 28, 2012 28:37 PM

      14.00 an oz….for silver for years…IMHO, that is complete hogwash! …no way…no how…supply and demand fundamentals are absolutely superb for this metal for years to come – PLUS,of course, it is ALSO A MONETARY metal also…any thing lower than what we have now the silver mines would shut down.

    Jun 28, 2012 28:16 PM

    There are long term fundamentals and short term fundamentals.

    Long term fundamentals are good but short term is not – you have India out of the market and retail is still dead. With these two supports out it allows hot money specs and HFTs more room to dominate and increase volatility.

    Jun 28, 2012 28:10 PM

    One thing for certain, and that is the US economy is going down hard and fast because of this Supreme Circus decision. What are these people drinking or smoking? Ironic in a way, total tax revenues and health care payments by the private sector will collapse as businesses close down and lay off people. Unemployment will rise fast no matter how measured which according to Fed Governor Lockhart will prompt massive QE despite Bernankes reluctance. Won’t matter however, because no amount of printing will bring employment back except in the government sector which means that the US is rapidly becoming a Socialist economy entirely.

    France has decided on this and they actually think the German people will pay for it. What a joke this Keynesian Socialist economic system in the World has become.

    I recommend watching Europe in the next few weeks for a harbinger of things to come in the US. Eventually and soon, Germany will be forced to leave the European Union as they finally wake up to the fact that socialism does not mean being friends but actually creates enemies from people that might otherwise be friends. When the Northern European countries leave, Gold will separate from the dead Euro and rise in dollars to numbers reported by Alf Fields. It will be the US and Japan’s turn to battle the tides of collapsing debt based currency. Perhaps Germany can form a better Eastern European currency union, based on more similar cultural and work ethic ties. France is a basket case, as it always was. I love the Gauls, but their idea of being a good neighbor has something best done at a distance not in my own home.

      Jun 28, 2012 28:25 PM

      Clay,
      Excellent, excellent summation, IMHO.
      All the best,
      marc

    Jun 28, 2012 28:43 PM

    Wherever you go….there you are….how did we arrive in 1938 Germany?

    Jun 29, 2012 29:35 AM

    Dennis, the same way Germany did back then. Several decades of wars, arrogant expansion and the attitude that might makes right. Back at the end of the 19th century and beginning the 20th century, Germany began a series of world expansions, same as Japan did. They had a sort of national superiority complex and believed their language and culture was better than any other and they took that with them everywhere they went, Pacific, Africa, South America. The British and French were the main roadblocks and tried to resist this German expansion.

    World War one was inevitable as tensions boiled. Germany had allies back then like Turkey and a few others, but by and large the world had had enough of the German sense of superiority.

    Suffice to say, the US government is now viewed very much in the same way as Germany was back then. I truly believe the US is on a course destined to end in World War Three. The US may have been an awakened tiger in the last world war, but the US tiger has no chance against the awakening Dragon of China and its growing allies.

      Jun 29, 2012 29:07 AM

      Good points and history reflection Clay!

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