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Why we will not see $1,000 gold – at least short term

October 30, 2014

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88 Comments
    Oct 30, 2014 30:34 AM

    Rickards – FOMC members admit they have no clue and are experimenting.

    Jim Rickards ‏@JamesGRickards 17 hours ago

    @DickPittman7 Not hubris. I’ve spoken privately to several FOMC members. They admit they have no idea what they are doing. It’s experimental

    Jim Rickards ‏@JamesGRickards 17 hours ago

    @GilmanAMD That’s exactly right. That’s what they tell me privately. Try something, see if it works, if not, try something else.#Experiment

    https://twitter.com/JamesGRickards/status/527532423819829250

      Oct 30, 2014 30:55 AM

      I doubt if any FOMC member actually said that they have no idea what they were doing. I also doubt if they are just trying things willy-nilly as if they are very desperate. I found that what Rickards said can’t be completely trusted as being accurate. I recently watched several videos with him and several times he exaggerated things.

    Oct 30, 2014 30:36 AM

    Well there goes the neighborhood ,…again. Wonder where its all headed?

    Oct 30, 2014 30:38 AM

    As long as the force to be prevail, we will see what they want gold and silver to be. The price of PMs has nothing to do with supply, availability, etc……just what those in power “say”. It is sad watching deception, distortion and manipulation in the markets taking place. As much as I believe in PMs, I am beginning to lose a bit of faith….not selling….just wondering if all that “stuff” I have buried will be of value in my lifetime. If they can create fear of PMs and hope in the phony dollar, we
    will see 700-800 gold and 6-7 silver.

      Oct 30, 2014 30:44 PM

      Could not be more true!

    Oct 30, 2014 30:41 AM

    daily editorial #2? I must have missed the first?

    Oct 30, 2014 30:48 AM

    The gold-silver ratio hit 73 today. Sheldon explains why this is important…
    http://www.youtube.com/watch?v=Gg9kSn3NRVk

    Oct 30, 2014 30:50 AM

    Matt,

    glen has been saying 78-80 and no one is listening to me.

      Oct 30, 2014 30:04 AM

      You shouldn’t assume that no one is listening. A move to that level would not be surprising in the least. The linked chart is silver:gold rather than gold:silver, but you can still see that it supports a move toward your call.
      http://stockcharts.com/h-sc/ui?s=$SILVER:$GOLD&p=M&yr=18&mn=3&dy=0&id=p56389313236&a=373988319

        Oct 30, 2014 30:09 AM

        It could be that by putting in a 14 month double bottom (double top on your chart), instead of a spike low, we don’t have to go any further.

        Oct 30, 2014 30:24 AM

        Agree Matt..

      Oct 30, 2014 30:10 AM
      Oct 30, 2014 30:55 PM

      Nobody says no to you. Why do you say nobody listen?

        Oct 30, 2014 30:46 PM

        Lawrence,

        it’s nice to get a little recognition at times if your calls have been great. I understand all the glory goes to the panel but we are not sheep in here..

        And thank you lawrence as I always enjoy everyone’s flavor in here and that includes yours.

        This by far is the most intellectual/investment panel and contributors on any site. Im glad I form part of it. I do it from pure kindness.

          Oct 30, 2014 30:00 PM

          Thanks for your reminder. Sometimes except buying when blood is on street, people like us can not make money. They seems always want to push silver to extremes. We are definitely not at high now. But we never know when the final low is reached except on the hindsight.

          Oct 30, 2014 30:50 PM

          We are certainly glad to have you here.

    Oct 30, 2014 30:51 AM

    I’ll state again that we have massive inflation it’s just focusing in the stock market at the moment.

      Oct 30, 2014 30:53 AM

      I’ll also note that the Fed is never going to be audited so how do we know if the Fed has really ended QE or not?

        Oct 30, 2014 30:24 AM

        Gary,

        I’ve been thinking about that statement ever since they started there taper program. How the heck does one no 100% these guys are actually tapering? Do we have 100% proof or go by what they say. There printing more then we can imagine that’s the bottom line and the debt keeps going up.

          they are all liars……………so, there is your answer……………

            go back to the” brief case mode”l…….ALLEN THE GREEN SPANDEX…..stretch to true, and believe in babble…………

            Oct 30, 2014 30:00 PM

            No he will be reknowned as greenspan the GREENshoots.You remember the media in late 2009-2011 how many times it mentioned that word.Greespan sowed the seeds and greenshoots appeared.Under yellen things are gonna change drastically because many traders are gonna YELL like hell when stock market plunges not like under ben BUENO bernanke.

            Oct 30, 2014 30:47 PM

            J I agree with you!

        Oct 30, 2014 30:47 AM

        The fed is a great deceiver.From November 2013 through January 2014 Belgium with a GDP of $480 billion purchased $141.2 billion of US Treasury bonds. Somehow Belgium came up with enough money to allocate during a 3-month period 29 percent of its annual GDP to the purchase of US Treasury bonds.Certainly Belgium did not have a budget surplus of $141.2 billion. Was Belgium running a trade surplus during a 3-month period equal to 29 percent of Belgium GDP?No, Belgium’s trade and current accounts are in deficit.Did Belgium’s central bank print $141.2 billion worth of euros in order to make the purchase?No, Belgium is a member of the euro system, and its central bank cannot increase the money supply.So where did the $141.2 billion come from?There is only one source. The money came from the US Federal Reserve, and the purchase was laundered through Belgium in order to hide the fact that actual Federal Reserve bond purchases during November 2013 through January 2014 were $112 billion per month.

        Oct 30, 2014 30:00 PM

        Belgium buying is very strange. The bond rate is also very strange. How can they just operate with people’s money and not required to have any audit. I don’t see the difference between US and any authoritarian country on this. It is especially troubling since FED is a private institution. It theoretically serves banking cartel only.

          Oct 30, 2014 30:34 PM

          The Federal Reserve Banks are not United States Government institutions. They are private monopolies which prey upon the people of the U.S. for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.

            Oct 30, 2014 30:55 PM

            Of course they ate private!

            Oct 30, 2014 30:18 PM

            There are numerous articles that expose this myth and other myths about the Federal Reserve..

            Oct 30, 2014 30:28 PM

            The Secrets of the Federal Reserve by my late friend Eustace Mullins. The original, and gold standard, on the Fed.

            Oct 30, 2014 30:07 PM

            This is creepy. How can Americans stop FED from acquiring all the asset of US and saddle people with debt? Then people will be very poor since they have huge debt but no savings and their wealth is negative, big negative.

          Oct 30, 2014 30:59 PM

          Your comment about audits is more than a little interesting!

      Oct 30, 2014 30:03 PM

      Base money has been expanded by 5 times. There is no free lunch. More money chases same among of goods, price has to go up. Otherwise we can get rich simply by printing money.

    Oct 30, 2014 30:53 AM

    Nice to see Martin Armstrong continues to call gold and silvers bearish action to perfection since 2011……lol…not opinions but computer data driven…..where is gold at 90-95-100 US$ index as Europe implodes?

      Oct 30, 2014 30:14 AM

      I know nobody wants to follow those that have been right here but Marty has a weekly close below $16.50 silver suggesting $15 then $12.50….reality!

      Al time to have Peter Perfect on again

      http://peterlbrandt.com/chart-day-hearty-hi-ho-silver-away/

        Oct 30, 2014 30:59 AM

        Thanks for the post JJ!

        Oct 30, 2014 30:50 PM

        Marty has been right all along, so I will go with him, also larry Eddilson’s short call has made many rich.

          Oct 30, 2014 30:48 PM

          Bobby what is larry eddildon’s current call as i write this?

            Oct 30, 2014 30:06 PM

            Short gold silver miners, 3x. Long dollar UUP.
            Yesterday.

    Oct 30, 2014 30:54 AM

    What is happening to Silver right now is blowing my mind. Exciting times ahead. This will kill the small and large struggle mines/miners if it sustains. Not a bad thing for the long term.

      Oct 30, 2014 30:10 AM

      If anything it will discourage bringing mines back into production because miners are going to have it in their heads that a price rise is just a short lived event and not worth responding to and not worth the expense of restarting production. The price would have to increase exponentially and not come back down for a very long time and then may be.

      Oct 30, 2014 30:53 PM

      We will see what happens at $15.00, I don’t pretend to know but many of us used $15.00 at a cut off point, and we don’t want to see $9.00 again.

        Oct 30, 2014 30:49 PM

        15 will hold! I repeat 15 will hold.. Glen said it first.

        Oct 30, 2014 30:26 PM

        Good points Bobby!

        Keep your head on straight, man.

    Oct 30, 2014 30:00 AM

    Gartman says collapse coming in oil to around 50 or lower. He is often wrong. I am buying back into transocean today. I have been accumulating twitter since it has fallen from the 50’s to 40.
    http://www.cnbc.com/id/102125295
    Crude to ‘go the way of whale oil’: Dennis Gartman
    He has a screw loose. Says fusion will power the future very soon in as little as 10 years.

      Oct 30, 2014 30:27 AM

      Paul,

      Be very careful here. This glen has been calling for 78 oil first then a collapse to 30-40 at its given time. Oil is telling you we are headed lower first with gold then higher. Oil will drag equities down eventually.

        Oct 30, 2014 30:40 PM

        I will just play for a bounce short term as I still think we may eventually see as low as 70.

    Oct 30, 2014 30:02 AM

    You guys are funny

    Oct 30, 2014 30:03 AM

    Can I have that in writing?

    Oct 30, 2014 30:05 AM

    I am just guessing but it looks like some one is trying to retest the $1180 price for gold again. In the light of all the financial assets, gross world product and global currency supplies the market price of the real gold or silver is extremely deflationary. If everything else was priced to be brought into balance with the market price of the metals with no leverage or paper metals then the world as we know it would be a very different place and most would be ruined because of it. Their assets and the real or imagine value of everything priced in currencies would be greatly diminished if it existed at all. The only thing left would be ounces in hand or worthless paper.

    Oct 30, 2014 30:11 AM

    gee Doc I hope all the nibbling you’ve been doing these past two months with gold stocks is really small nibblings cause your right about silver having a breakout move (just not up) but down….$16.50 is very key….hello $15….that uptic in gold you suggested will be a real tuff read as to how powerful since its breaking down not up…ouch!

      Oct 30, 2014 30:27 AM

      Where’s Bird and his trumpet. Bird and original jj both tootin horns…..all in fun of course…..

        Oct 30, 2014 30:30 AM

        just posting facts gator, nothing more, sorry gold not holding $1242 after reaching the 50dma was a sell signal, sorry

          Oct 30, 2014 30:56 PM

          You cannot reason with perma bulls, they think with their heart.

            Oct 30, 2014 30:55 PM

            Bobby,

            Sometimes in life your heart leads to places your head could never imagine. For the one’s who have fallen in love with gold, maybe someday god shall reward them. Always remember that the heart is the engine that keeps you going.

            Oct 30, 2014 30:53 PM

            Yes it does Glen. Thank you!

            Oct 30, 2014 30:30 PM

            Many certainly do Bobby!

    Oct 30, 2014 30:29 AM

    The results from Avon and Visa and MasterCard sure are truth telling in my opinion. Less stuff being bought and accumulated but the stuff that is being bought is being purchased using expensive debt. Not good for average Joe and overall economy.

    bb
    Oct 30, 2014 30:39 AM

    Using only the “live gold” chart, there looks like there is some support around 1180-1200,
    next is small support around 1150-1100, next 980-860, next 680-580, if that breaks its all the way down to about 400.

    I guess Greenspans opinion is circulating today, but tuff for miners to make money I would think, there are about 1/2 dozen that pull gold out for around 800 an once, most seem to be losing money hand over fist.

    My guess is still the Chinese step up buying around 1000, looks like Im gonna get the chance to see if Im right or not.

      I hope it goes all the way down to $35 ………….I can pick some up where I started.

      Oct 30, 2014 30:19 AM

      If gold dropped to $400 an ounce that means the market and the powers that be are nuts or all the non gold and silver wealth and currency in the world just got flopped lower than whale crap in terms of quantity and or price or they are totally nuts and the market prices should be disregarded altogether.

        Oct 30, 2014 30:35 PM

        The only way gold is going to $400 is if there is a massive collapse with global deflation in all commodities. Oil would probably have to be $10. If that really happens it probably means we will all be living in caves and tents.

    bb
    Oct 30, 2014 30:44 AM

    Why couldn’t it mean that all demand has been met and there turns out to be an actual oversupply?

    Weve been hearing for years about shortages and reasons for gold to the moon, but in reality, all supply has been met.

    I cant see why gold would do anything other than it has historicaly tho.

    Oct 30, 2014 30:54 AM

    Gold is about to get crushed. And when it does the central banks are going to scarf it all up, driving the price even higher in short order. I see the bottom between 5 and 600 ( five sixty seven ). And fiat currencies being a thing of the past. That’s the reason for all of the asset restructuring and new lending regulations.

      Oct 30, 2014 30:04 PM

      Chartster…just my opinion but I doubt the price will get to $600.00 due to buying from the East….and possibly a shortage on the horizon…..

        Oct 30, 2014 30:53 PM

        Agree Gator. My opinion? Not even close to those numbers!

        bb
        Oct 30, 2014 30:09 PM

        No Offense Gator, but we been hearing shortage longer than I can remember now.
        Never was, isn’t now or..is it different this time?

    Oct 30, 2014 30:00 PM

    A good article from a Greenspan speech on gold…and the fed…very informative…

    http://www.jsmineset.com/2014/10/30/in-the-news-today-2032/

    Oct 30, 2014 30:14 PM
    Oct 30, 2014 30:07 PM

    Gold/XAU ratio 17.6 is all time high. I never have seen anything close to this. I remembert it was 3.3 when I saw it first time in 2004. PM stocks are going no bid like Rick Rule said a few weeks ago. Hope all of them go bankrupt. I hate the fact these guys going high grading and still lose money. They are really bad managers.

      Oct 30, 2014 30:38 PM

      Brave ones can buy mining equity. I am not brave so I only buy metal and hold forever.

        Oct 30, 2014 30:49 PM

        I personally believe that a select few are steals. Just my opinion and not investment advice.

          Oct 30, 2014 30:04 PM

          Some of them can not survive though. I got rid of my PAA a few days ago with a loss. I am looking at my portfolio and see which one loses money like they do. When this is all over, mining might look like battle gound with massive casualties

          Oct 30, 2014 30:13 PM

          This is the 4th time they attack last year low in gold. Silver is by far below production cost. I am taking David Morgan’s advice, buy metal itself under production cost. It worked in 2008. Now I bet either price of silver rise or they kill the miners and silver has to rise.

            Oct 30, 2014 30:28 PM

            If this time gold does not break 1179, I will be convinced there is a sovereign entity Below it.

            Oct 31, 2014 31:22 AM

            Well, unfortunately, you are wrong, Lawrence. I sold my JDST too early apparently…

    Oct 30, 2014 30:15 PM

    How many mines must close before this smoke-and-mirrors collapses? What is the end game? The elite on the boards of the only non-nationalized or closed mines left in the world?

    Oct 31, 2014 31:01 AM

    1162.00 gold
    whoosh