The attack yesterday was in two tranches by separate parties……..might be a conspiracy!
;>)

Thanks Gary – helpful insights.
Worth listening (as so often) to David Mcalvany:

http://mcalvanyweeklycommentary.com/

IF everyone stopped using charts……..the dumpers, would not have a guideline for all the chickens to roost on ………….

.I have seen the enemy and that is us……..Charlie Brown.

Here is Clive Maund’s take on gold currently – some of you more experienced guys than I might be able to take something from this.

http://www.clivemaund.com/article.php?art_id=68

Cannot comment intelligently on conspiracies, nor on cycles or technical analysis. It seems to me Mr. Market overall is telling us it has not been worried and is still not worried about price inflation. Look at recent price history of crude, corn, soybeans, wheat, cotton, I believe sugar too, and even meat has started to come down. Price inflation is not here now, and that I believe is one of the biggest drivers for why gold is struggling. Look at Treasury yields – certainly the bond vigilantes are not worried about inflation (also look at TIPS spreads). If anything, bond yields may only rise due to if Fed Reserve really does raise rates next year – and that might hurt gold some, too. I will wait until I expect some price inflation ( and I hope I will be able to recognize it before it happens ) before considering investable gold assets, and I will just keep to my coins and bars for the long haul and it may go to my nieces.

Massive yield of corn and soybeans coming, so those prices should fall more I expect. I think geopolitical risk kept gold supported for a long time despite the strength in the dollar and the weakness in commodities. IMO these all are the reasons for gold weakness, not pointing to conspiracies. Quite frankly, few people in the West care about gold right now, as evidenced by some recent numbers on GLD holdings in 2014 that I have seen. If one is talking about investing in gold, I think one should wait until we see some signs that all the negatives I mention above are starting to change. We really need to see better jobs – better wages -more full-time jobs before we can start to see some demand that would ratchet up prices of stuff and get price inflation to drive gold higher. Sadly, I expect this week’s jobs report will be more of the same sad story – a good headline number, but lousy jobs and poor wage growth..

Now, holding gold for the long term is another story entirely, and the current price is probably a good one if one can stay calm if it drops further. Some day, gold will shine again.

Thank you Gary. What is your target for intermediate bottom for Gold and GDX? 🙂
Thank you in advance.

Here is an interesting email I received:
Gold: It Is Not Time
Posted: 02 Sep 2014 10:13 AM PDT
I was at a used bookstore the other day perusing the business and investing section. I saw a couple of books about the next Great Depression of America, and of course, had to take a look. The arguments in these books were pretty sound, and I nodded my head often…. that is, until I realized these books were from 20 and 30 years ago! These authors (still doom and gloomers today) were predicting a stock market crash right before the biggest rally the world has ever seen. They touted gold during the beginning stages of a 20-year bear market. Right now, they have a tribe of loyal followers – gained from the crisis of 2008- that have no idea how wrong they were for decades.
Amazing.
I’m not saying these guys are stupid. At the very least they were prescient. But remember, this is the money-making business. There is a reason Charlie Munger says ideology is dangerous in investing. And make no mistake about it- if you stick to one view for 30 years even those the market is telling you something different, you are an ideologue.
Here’s the thing. If I was an adult in the 80′s, I would have probably seen the national debt and said “gee, this can’t go on forever”. The problems with Social Security were also obvious. But you must be able to disconnect the fundamentals from price action and be aware of the timing of events. And if things aren’t going according to plan, change your plan.
The Correction in Gold
To be honest, this correction in gold has gone longer than I expected. So what? You adjust as an investor. I’m actually happy about the extent of this gold correction because it’s a lesson for me. You must disconnect your beliefs from how you manage your portfolio. Is our government out of control? Yes. Are we going to default on our debt? Probably. Does this bode well for gold? Yes, if history is any guide. But this doesn’t mean that gold needs to rise right here, right now. This is what it really takes to be a full-time investor- namely to believe 110% in an asset, but minimize losses when the asset doesn’t trade exactly as you expect.
Fundamentally, gold is a screaming buy. But the market keeps sending the signal that it is NOT TIME for gold. I respect that signal. When it is time to buy, I will scale in on the way up, then take a long vacation.
Gold is trading like it is attracted to $1000-$1100. The dollar is just beginning to break out. Be patient. Gold will probably play “catch-up” like it always does.

I am confused. Why gold has to rise immediately for you to buy? Market timing is dangerous.

Removing Any Doubt

You may have missed it. In fact, you probably did. While you were out enjoying your holiday, we saw more proof of how Cartel algos are set to manage and control price, regardless of the day or time.

Just after 1:00 p.m. EDT on Monday, a very curious drop in the spot price of gold occurred. “Curious” in that all global futures markets were closed, with the U.S. electronic trading closed until later today, opening at 6:00 p.m. New York time .

But the futures markets being closed didn’t stop a trade from effecting the spot price of gold which, at 1:02 p.m., fell by nearly $5 in an instant. This “trade” was noticed by ZeroHedge and it immediately caught my attention. The damage, however, was minimal and the spot price almost immediately recovered. As I type, spot is down about $1 and up over $3 from the low.

“What’s the big deal, Turd”, you ask?

Check this out from the RanSquawk headline service at ZH: http://headlines.ransquawk.com/headlines/spot-gold-moves-to-fresh-lows-in-recent-trade-and-breaks-below-the-200-dma-after-going-through-the-comex-trading-halt-for-gold-futures-although-there-is-no-fundamental-news-behind-the-movement-01-09-2014

What’s that? “Spot gold moves to fresh lows and breaks below the 200-day MA”…”although there is no fundamental news”.

That’s interesting in its own right but here’s your money shot, also from RanSquawk:

“On 26th May, 2014, when US markets were closed and electronic trade was halted, a similar move occurred at the same time, although the move was later busted by some charting systems”.

So let me see if I’ve got this straight….

Today is Monday but not just a regular Monday. Today is Labor Day in the U.S. The U.S. markets are all closed. Yet, someone or something runs an algo that hits spot price at 1:00 pm.

May 26th was not your regular Monday, either. That day was Memorial Day in the U.S. and the U.S. markets were similarly closed. Yet, someone or something runs an algo that hits spot price at 1:00 pm.

Hmmm…Do you have any remaining doubt that there are Cartel algos, pre-programmed to run buy/sell programs at specific times during the day or night?

And now you know why I so often publish these 3-day charts from kitco. Here are just a few recent examples:

http://www.tfmetalsreport.com/blog/6089/removing-any-doubt

What has happened to Gary’s long & oft-stated, gone-wrong many many many times, prediction of the $USD ultimate demise & subsequent hyperinflation?

Stick that one on the bonfire of his myriad predictions gone up in smoke.

One does not have to be Einstein to recognise that the Fed note is not reflecting the debts,deficits and liabilities it is supposed to represent.
Get the metals paper pricing system away from the entities that represent the Fed and valuation levels based on honest fundamentals will unfold.