Currency Wars: Good for Gold? – Yra Harris
Forget what Larry Kudlow and the Fed cheerleaders say; currency wars are here and they’re real. Yra Harris thinks this is good for gold.
MY INVESTING PHILOSOPHY is quite simple: Mimic what the Chinese do….of course, mixed in with valuable info and insight with my good friends “korlinites” here….of course, a little humor helps – are you listening – Irish, Jerry and Irwin :).
I like that philosophy marc!
yes marc…..I LIKE philosophic humor,,,,,,,TO BE OR NOT TO BE…THAT IS THE REAL QUESSTION…..
I posted about the white PMs a week or so ago.
In case you haven’t noticed Rhodium is up $50 today.
Palladium is up $9 in London…..haven’t checked N.Y.
CFS,
Saw that…what are your charts saying on Rhodium?
Last time I checked it was a healthy buy. (And todays move will change the short-term more positive. Can’t check charts on metals till markets close)
321gold wrote something on Rhodium a couple of days ago; well worth reading for the fundamental point of view.
Thanks cfs,
Big Al
Currency Wars are here. The last four days thats all I have been hearing and reading about! And yet gold goes nowhere. This is unexplainable. Forces must be at work behind the scenes you and I are not privy to. The $ is strong today and they want their currency to go down. Gold couldn’t hold $1650 and now could be in for further losses, $1625 the next key level of support. So who right? The CNBC crowd have been cheerleading for years, the real estate agents have been telling us the bottom has been in for years, Obama and his comrades assure us everything is getting better, jobless claims are falling, hiring is up, real estate is up big in some areas, even talk of another bubble! Bernanke assures us there is no inflation anywhere. Happy days are here again! Weve danced this dance before! Gold is clearly stuck and going lower until it isn’t, if ever. $48 silver looks more and more like parabolic blowoff and a price we will not see again. Newcomers will not be rewarded in this market. So I ask – if you bought gold at $1800, or $1850, or $1900 and silver at $40, or $42, or $45 or $48 – Are you still in this market? did you get scared out? Will you get out if you ever have a chance to get even? These are important questions becuase they will determine how this market goes. Time is running out!
Today’s gold chart looks like someone is playing whack-a-mole. One of these days this will turn around. I wonder why these hedge funds short either gold or gold shares to buy the other? Can’t they short Tech and buy gold? No. because they know the currency game and gold or gold shares get clobbered by the PTB.
Dan
You do understand what hedge means.
In a random walk market, if you don’t know if it is trending up or down,
You pick a good stock long and a poor stock in the same business to short.
With hedge funds, part of their difficulty is volume. They can most only use high volume situations, so in the precious metal area they go long metal, short a few big stock or vice versa.
I didn’t thinking hedging meant staying in the same industry with the short and the long. Thanks cfs. I have never had a margin account other than options nor have I shorted anything other than options.
Dan
you can also hedge by owning a stock long and buying puts in the same stock. etc.
The dollar index mostly measures the dollar against the euto plus a bit of yen and GBPs; they’re all fiats.
The war is NOT between fiats, but between fiats, the Yuan ans PMs.
Russian and China both get it and are scrambling to produce and buy as much gold as they can before the fiat banking system implodes.
N.Y. and London with government backing are trying to keep the gold and silver price down so people do not panic.
The (utter sarcasm on) brilliant economic teams in the US and UK are playing right into China’s hands. (sarcasm off) Talk about stupidity!
Very interesting thoughts cfs.
Big Al
James, Very well put and my sentiments exactly. Yes I got caught out with the blow-off silver and cost me a packet. I got out @ $35. Went back in @ $26 and recovered my loss. I am waiting to go back in but waiting for another good bottom ie $26.
Its dropping today and cany hold this level.
David Morgan or is it Moron said we would see $60 in 2012. Thats a laugh $26 it was fortunately and sold for $35.
Great commentary The Greater,
Will have an opinion in the form of an editorial no later than tomorrow a.m.
Al
Big attack on silver under way in New York. Third attack on PMs today.
I wish there was a volatility Index to bet on for PMs, it is going to get more and more volatile as Fiats go in to death convulsions.
With respect to currency wars read Fitzwilson’s comments on KingworldNews. He nailed it.
The silver and gold markets have been really “interesting” of late cfs. Obviously both down today.
Big Al
The CENTRAL BANKS control everything and won’t ever give up the power of their fiat money.
Eventually they will give it up, Reo!
Big Al
Ultimately they won’t have a choice.
CFS,
I am really pleased that you are again SO active on the site…thanks again!
Thanks, marc.
I’m here until mid April unless the weather changes to intolerable.
In April, I’m goofing off in Europe again.
All fiat currencies eventually become worthless. It is a race to the bottom. Gold should be much much higher. The hedge funds can take gold very high very fast and just as low just as quickly. We are still at the mercy of the hedge funds. Until the physical gold market breaks away from the paper market gold will be contained. How many investors own physical gold and what is the allocation? I would say very very low. This needs to change. This could take a very long time.
Yep, The Greater, they are eventually fall into the ash heap!
Big Al
Big Al,
I know I have asked before, but any chance of having the spot price silver in the left side bar as well.
Yes. We are working on getting that up! Look for it in the near future.
There are two problems, I think.
1. Keeping hold of the physical, without it being confiscated or taxed to nothing.
2. Controlling emotions.
If anyone thinks something like today’s knock-downs are worrisome, they are going to have a problem in the future. We will see massive convulsions in the gold price ahead as fiat dies.
I think that “controlling emotions” is the real key, cfs.
Big Al
I think you’re right also about being diversified. That helps to control emotions, rather than having all one’s eggs in a basket that is being kicked around by forces beyond your control.
Al: Regarding your question about “pending new regulations” coming out of the Interior dept., my contact in the Interior Dept. told me that it has been approved inside existing rules and regulations through re-interpretation of words such as Cultural, Antiquities, Values and Resources. In this respect procedures of resource extraction are given guidelines to Dept. authorities with revised rules on allowance or permit. The drive to do this which was initiated shortly after the election is mostly directed to “Mining” and only in exceptions given will any interpretation of various dept. authorities be given. Exceptions in this case are almost exclusively reserved through political influence, and yes that means bought and payed for influence.
Investors in US development based mining projects need to be aware that political support both local and Washington is being made mandatory.
My opinion is that in order to even consider a project in the US the developers must consider first obtaining guaranteed support from the local and Federal Rep first before proceeding. Otherwise roadblocks will appear in succession one right after the other.
Let’s see what Linda Thorstad of Orsa Ventures has to say about this. Her company is active in Oregon, an interesting state when it comes to regulations.
Big Al
Silver lease rates are doing the manipulators bounce again.
Dan
I listened to Yra twice and then again specific snips that I wanted to make sure of. It was also very important to watch Yra and Greg was talking, but I only wish Greg would have talked less and let Yra speak. Anyway the basics of what Yra was saying was:
1) The entire system, (and I believe in this respect he was talking about Keynesian run economies) are run on Debt.
2) These economies, their currencies, governments and production depend on increasing debt to hold them together and without this increasing debt the result is deflation.
3) Yra said what helps him sleep soundly at night is knowing without doubt that these central bank run economies will not let deflation take hold and will print any amount of new currency in form of debt to keep liquidity available, first to the banks, then to governments and finally down from big corporations to the slaves.
4) So why does 3) above let Yra sleep at night knowing that? He did not say but his often quick smile or light in his eyes when touch of subject appeared tells us that it is because it confirms what he knows to be true in real economics both Austrian and Keynesian how this is and will play out. To be sure Yra is APPROPRIATELY allocated.
I recommend that everyone think about this and what they should do to protect themselves and their families future, because one thing is for certain that neither Obama nor Government will be there when the need is most.
Gold folding again today – I think the only currency war on is the one against gold, and silver of course.
Gold will take off fiat money will dissappear…yeah in which or who’s Lifetime? These stories are getting old..and have been going on around the net for years..WHILE GOLD GOES NOWHERE and gold STOCKS CRASH DOWN DOWN DOWN. The worst performing investment has been the gold stocks xau hui gdx and the whole lot.
Certainly cannot disagree Reo.
I think that the positions of most of the folks on this site, including me, is that what we are investing for is the future.
Tough times man,
Big Al
gold goes nowhere!!!!!!!
Have you looked at a chart over the last decade?
If you expect gold to go up every day and never go down, you don’t understand the stockmarket and should not be in it.
Because people tend to buy after a stock has been going up for a while and sell after it has been going down for a while, the average person is usually late in both buying and selling. Stocks tend to go from being undersold to being oversold, to being undersold…..i.e. they oscillate about a trend-line. Gold is now oversold and soon will rise again, after the deep pockets have shaken as many fools out of the market as they can, buying their gold up.
The RSI or relative strength indicator is at 33 at the moment. The scale goes from 0 to 100. Anything under 30 is technically oversold, anything over 70 is technically overbought. The RSI is going down and will turn. The price is going down, AND WILL TURN UP, like I say, when as many of those who don’t know what they are doing have been shaken out as possible.
Good thinking cfs!
Big Al
This washout is bringing the RSI down to oversold levels and if you look at a chart of GLD you can see that the 200MA will start to rise as the Aug prices of last year fall away. Spend yer dime and take yer chance.
Dan
There are two wars going on.
The one Yra is talking about is the fiat war or the trade war.
China does not have a free-trading currency and can place its value where it wants.
The hidden war , which the west is choosing to lose, is the war between fiat and the precious metals.
russia and China WILL kill most fiats at a time of their choosing, when they have cornered most of the world’s gold. At this point the dollar dies, but real war has broken out and, with mass death, civilization will rise again from the ashes.
I do agree with most of what you are saying here, cfs.
Mass death? I don’t think so. Civilizations have become too “civilized” for that!
Big Al
Ever the optimist aren’t you ,O Big One. You don’t think the US , about to lose a fighting war, having neutron bombs and nasty viruses and nerve gas plus unknown other monstrosities in its arsenal would succumb to temptation of using one of these after it has been vilifying its enemy for a few years and is now losing the war? You have great faith!
Not as much as you might think, cfs!
Big Al
What I don’t understand is that if we, village idiots all, can see the blatant manipulation, currency wars, Bankster oppression, pending death of fiat currencies, unsustainable national debt, and a train behind that light at the end of the tunnel, is it not right to think that the wunderkinds behind all of this see it too, and are using it to achieve their final end, to wit: Global control? Could “they” be really so stupid as to let Russia and China gain the upper hand with no counter measures at the ready? Just wondering……
It is nice that we aren’t burdened by proof but just follow the money and know what is going on(;-)
To answer your last question; only if their egos blind them and the military may be the counter measure. About Russia and China; are they not smart enough to know that divide and conquer works? An enemy of an enemy is a friend in desparate times.
Dan
Hi Calgary Dan,
Without a doubt there are some very interesting things going on behind the scenes.
How will it all turn out? I personally don’t see how we can win this one. Time will tell.
Big Al
As I said earlier Kanada Kevin,
I think that there are a lot of possibilities out there and since we don’t really see the total picture all we can do is guess. What a shame!
Big Al
Kevin,
Great points….they have plans BUT WHAT ARE THEY!
There’s a very good chance that the PMs will have another short term bottom in the next 2 weeks. Also the odds are that the GDX will also bottom in the next 2 weeks. It looks like we’ll test $1625 on the gold market. Finally others are starting to note the precarious nature of the US currency.
Notice gold was not mentioned until the end? Maybe half the readers wouldn’t even get that far. Good article.
RSIs should look good in a couple weeks. Maybe some 200MAs can be crossed on the way up.
Dan
The one disconcerting stat negative for the PMs is the COT commercial position for silver—-at this time it doesn’t bode well for silver and subsequently indirectly for gold. Gold may have to fall to support at about $1500 and silver to $26 before we see any significant move up. I know many would find this disconcerting but it’s a possibility since the weekly momentum indicators for gold continue to be also sloping down.
What will be, will be. But my gold will have to be prised from my dead hands, metaphorically speaking.
I feel the same way. This precious metal run is far from over and once again there’s another (and probably last) chance to buy the physical.
“at these prices”.
X-mas, again…IN February, oh GOOOOOODDDIIEEEE! 🙂
There is clear panic in London over gold.
Note the attacks today…….Two major attacks.
There is evidence of a switch in hedge fund trades; now shorting the metal and buying stock in producers. (E.g. ABX, with heavy volume spread between Toronto and New York)