Gary Savage – Fri 20 Dec, 2013

Gonna be an interesting day boys and girls!

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Al KorelinCory FleckGary Savage

  1. On December 20, 2013 at 8:13 am,
    raymondo colella says:

    Its friday, Short covering

    • On December 20, 2013 at 10:59 am,
      bj says:

      Yes, meaning the shorts couldn’t drive gold below 1185.
      It’ll be interesting to see how gold closes the day and the week after this latest bear raid.

  2. On December 20, 2013 at 8:58 am,
    Big Al says:

    As you mentioned in another comment.

  3. On December 20, 2013 at 9:10 am,
    james (the lesserrr) says:


    Isn’t that what I have been saying all along about the “taper”

    Wednesday’s “Taper”, for lack of a better term as Al would say; was a game changer.

    This was very gold negative – the simple reason being the less money printing, or QE, the less dollars created, hence gold negative. Right on queue gold reacted, tumbling back down to June lows.

    Many people got the “taper” wrong, including myself. I was in the camp (or ended up in this camp to be more precise) that there could be no taper.
    However I said many months ago that they would one day be forced to taper.
    Not that they want to taper, but in order to save face and not lose credibility they would have to taper.
    I believe that was the reasoning behind this taper.

    I believe Bernanke wanted to take his last victory lap, take his final bow, and pass the baton onto Janet Yellen, being able to claim his plan worked and now he can ride off into the sunset having saved us from disaster. It is now up to Janet Yellen to not drop the ball.

    Bernanke’s hands are now clean. He left with a taper in place and a vote of confidence.
    It is now up to Yellen to move the ball forward.

    Bernanke has now put us on a tapering path; that under ideal circumstances will end sometime in mid 2014. If all goes according to Hoyle.

    Make no mistake – if they are able to consistently reduce QE month after month without any hiccups I believe this will be very negative for gold. It only makes sense.

    However this is, or could be, a very big IF.


    Even though gold got smacked we needed this taper.

    We needed to change course, finally get it out there and now see what becomes of it. Why?


    And what have I been saying?


    Once you start the “taper” you can now never go back

    If Janet Yellen blinks, even once, the FED loses all credibility, confidence is blown out of the water and we are back to QE to infinity for good.

    She cannot drop the ball, she cannot postpone even a month’s tapering.

    Don’t misconstrue what I am saying, for those of you who hang on every word I say.

    Can she pull it off? I have no idea.

    Do I know what is going to happen? I have no clue.

    But I do know the risk reward ratio for gold is starting to be in gold’s favor.

    And speaking of fighting, the vitriol right now against gold is off the charts.

    Read the comments on any article about gold, don’t bother with the biased article; just the comments.

    The DOWNRIGHT HATRED for gold is beyond the pale.

    People are starting to get stupid to, with calls for $700 gold, or going to zero.

    This too is setting up for a favorable risk reward ratio IMHO

    Stay nimble, be careful.

    We are in for interesting times.


    Better than two guys swinging sticks at each other and knocking someone’s eyes out

    Let two athletes slug it out, blow off some steam and get on with the game!


    Then the fireworks are really going to start!

    • On December 20, 2013 at 9:22 am,
      Big Al says:

      Might very well have started today The Greater

    • On December 20, 2013 at 5:26 pm,
      ManAboutDallas says:

      Ms Yellen will “un-taper” The Taper the FIRST CHANCE SHE GETS ! And she’ll get it fairly soon, if the economic numbers continue to deteriorate as recent numbers such as existing-home sales have already started to warn. The first REALLY BAD “headline” number and The Taper won’t just go back to $85 Billion a month, it’ll be RAISED to $100 Billion a month, MINIMUM !

  4. On December 20, 2013 at 9:55 am,
    b says:

    I think it might be a little early to be calling what gold is doing “a strong finish” or a “vertical” move. $1187 to $1206 is only $19. Im crazy I guess but somthing to get excited about for me would be maybe $100 straight up. I agree with Gary, seeing gold above $1268 would make me see it more positively.
    I think James has it right, this is just a bit of a bounce after a bit of a drop.
    We shall see of course.

    • On December 20, 2013 at 10:05 am,
      Big Al says:

      The end of the day will be interesting. I really can’t totally disagree with you regarding today b.

  5. On December 20, 2013 at 10:00 am,
    James says:

    Please skip all of the pre talk and just let Gary speak please. Most people on here are active traders and don’t need up to date prices.

    • On December 20, 2013 at 10:06 am,
      Big Al says:

      Bear with me. We get thousands of visits everyday and not everyone is an accomplished trader.


  6. On December 20, 2013 at 10:28 am,
    james (the lesserrr) says:

    I am not an active trader. I am a buy and hold accumulator who contributes commentary on horse racing and hockey…

  7. On December 20, 2013 at 10:57 am,
    james (the lesserrr) says:

    Speaking of Horse Racing – This Sunday Hollywood Park Racetrack will close its doors after hosting great racing since 1938.

    Is this a sign of the times?

    The 260 acre property will be renovated to make way for housing units and entertainment centers.

    Gone are the heydays when celebrities like Cary Grant, Lucille Ball and Al Jolson strolled the grounds, and wagered on horses like Seabiscuit and Citation.

    Great horses, great races, great times.

    All to be raised to the ground to make way for housing units.

    Of course most people could care less.

    But when things like this happen I always think it is just one more link that is removed from the chain that connects the present with the past. An entire generation will grow up having no knowledge of the great memories made on this racetrack. Instead they will see crammed cardboard boxes and Dunkin Donuts.

    There are worse things to do than spending a leisurely afternoon at the track, meeting and greeting friends and acquaintances, reliving old times, retelling tall tales, while occasionally kibitzing.

    If someone had the mental fortitude to read this entire article maybe you would get something out of it.

    I know everyone is in a rush these days to get to the next race or the next trade, so pardon me if I take up too much of your time with sentimental dribble.

    • On December 20, 2013 at 11:45 am,
      Big Al says:

      Not even close to being sentimental dribble in my humble opinion!

      • On December 20, 2013 at 11:52 am,
        b says:

        Same thing in Calgary James. But now after a couple years, plans are now in the works for a new track at a new location just outside the city.

    • On December 20, 2013 at 2:42 pm,
      Dai Uy says:


      I certainly agree with you on the King of Sports, As a kid, I spent many wonderful years on the backstretch during early morning workouts and in the paddock prior to the races legging up (and in a few cases, almost over, the jockeys when they mounted up even though I was smaller than they were). And then fairly often, in the winner’s circle post race having our photo taken. Wonderful memories.

      About 20 years ago, our then smaller but oldest race track west of the Mississippi finally and sadly closed down.

  8. On December 21, 2013 at 11:24 am,
    eagleeye says:

    It always amazes me how inward looking Americans feel the need to understand markets in terms of American events as if the the rest of the financial world is merely tagging along for the “Made in America” ride. Nothing could be further from the truth and the Fed tapering and it’s effect on gold is a good example. Yes, there was an initial sell off in gold but there will be no long term lasting effect since American demand for physical gold comprises less than %5 of the world’s total. I know that is hard for an American goldbug to swallow but that is a fact. While Americans are sleeping, gold trading is going on at a ferocious pace in Asia. The Comex is becoming more irrelevant with each passing day given it has become nothing more than an exchange of paper gold with a nearly 100 to one leverage versus the 100% gold backed exchange in China. If you were a large gold holder, which would you rather deal with?

  9. On December 21, 2013 at 1:09 pm,
    Bill says:

    Well, I read earlier that the news is that the economy grew at 4.1% in the third quarter. How do you gentlemen figure that with all the other bad numbers pointed out above? Is the 4.1% number real or conjured?

  10. On December 21, 2013 at 9:57 pm,
    Mark says:

    Gold will have its day, but that day will be when ignoramuses like Gary won’t see it coming. He can’t. because his reasoning is faulty, and he thinks like everybody else who has an attachment to gold and silver. He will screw himself, and has already screwed people like me until it becomes clear that everything he assumed made an ass out of you and me.

  11. On December 22, 2013 at 6:20 am,
    Gold Bug says:

    Looks like Gary is not only good at picking bottom, he is also good at picking top. Here comes options again. Many thousands of percent! Just what I have been looking for. What a great article. It keeps me away from the dangerous stock market, and keeps me hanging in PM. I don’t care how much I have lost in PM, I will continue picking the bottom, and I will short the damn stock market, for many thousands of percent. Call me stubborn, but really it’s time for revenge!

    • On December 22, 2013 at 8:17 am,
      Mark says:

      You’re funny.But gaining a thousand percent of what little you have left still leaves you with a break even or even a loss. Good luck. You might want to wait a little longer though.

  12. On December 23, 2013 at 7:16 am,
    Fat Profit says:

    Regarding the little war between Kong and Gary, what’s the point to argue like girls? Show us the results! Let the numbers speak! Kong says his 2013 return is 130% so far, 2012 return is 112%. Gary: what are yours?
    Oh BTW, Kong and Gary: please be ready to provide proof.