Marketsurfer's bold gold proclamation

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[Hi,

I just started with this post on GOLD, please comment your take on this post.

Here is my take on gold short term 1-2 weeks, it will trade in the band $760 - $810 based on these 3 links given below

1) storing dollar
2) hedge funds forced unloading as part of delevarage

Dollar soars to 20-month high; euro drops vs yen
http://www.reuters.com/article/hotStocksNews/idUSTRE49D12L20081021

Gold falls for seventh day on funds liquidation
http://www.marketwatch.com/news/sto...E4BC11-FD94-4FA5-9726-B3D758BD84F5}&dist=news

Freaky Friday Part II - The Big Roil
http://www.kitco.com/ind/nadler/oct172008A.html

Cheers
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http://goldnews.bullionvault.com/gold_mining_supply_demand_102120083
"We believe the normalization of money markets should support precious metal prices as liquidity returns," says Walter de Wet for Standard Bank in Johannesburg, "[but] a strong Dollar would make large price rallies difficult to sustain."

The $3 trillion now promised by major world governments to shore up their domestic banks continued to reduce money-market interest rates on Tuesday.

The gap between 3-month US Treasury yields and London's inter-bank lending rates dropped to 3.15%, down from the record 4.50% hit at the start of last week. Interest rates on so-called "commercial paper" – meaning short-term debt issued by corporations – fell to a four-month low in New York.
 
Quote from marketsurfer:

earnings and traditional metrics will be out the window. this has nothing to do with gold pricing or any other old fashion correlations

what is it that you don't understand?

<i>Bernanke is of the view that a major reason for the Great Depression of 1930s was the failure of the US central bank to act swiftly to revive the paralyzed credit market. By "swift action," Bernanke means massive monetary pumping.

The Fed chairman continuously reminds us that at least he has learned the lesson of the Great Depression and will make sure that the error that the Fed made then will not be repeated again.

At the conference to honor Milton Friedman's ninetieth birthday, Bernanke apologized to Friedman on behalf of the Fed for not pumping enough money to prevent the Great Depression:

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again.

(Milton Friedman and Anna Schwartz wrote that the key factor behind the Great Depression was the failure by the Fed to pump large doses of money.)

Central-bank policy makers have said that the key for economic growth is a smooth flow of credit. For them (in particular, for Bernanke) it is credit that provides the foundation for economic growth and raises individuals' living standards. From this perspective, it makes a lot of sense for the central bank to make sure that credit flows again.

Following the teachings of Friedman and Keynes, it is an almost-unanimous view among experts that if lenders are unwilling to lend, then it is the duty of the government and the central bank to keep the flow of lending going.</i>

http://mises.org/story/3151
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Forgive my confusion, but the article you quoted suggests inevitable inflation and other "old fashioned correlations", which would bode well for gold. Yet you remain convinced gold is destined to keep moving lower and that those old correlations no longer apply. So where is the disconnect?
 
Quote from marketsurfer:

Gold 774.90 -15.10 -1.91




Expecting the 740 low to be taking out very soon. then the drop to proceed in a series of sharp rallies combined slow long prolonged selling with some sharp dips. the liquidation has begun....

surf
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As expected the 740 low was taking out about 35 minute ago with a small market flood of selling. 699--703 is the next support range on the way to sub 600 and below.

surf
 
Quote from marketsurfer:

As expected the 740 low was taking out about 35 minute ago with a small market flood of selling. 699--703 is the next support range on the way to sub 600 and below.

surf
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Just curious, where do you expect gold to bottom out at?
 
Very interesting, thank you for that site, i have not heard of that group. although I believe their cause is a lost one, however there is LIKELY truth to some of what they say....

why not be on the same side as the "manipulators" ?? they leave rather large footprints

:D :D :D
 
Quote from marketsurfer:

Very interesting, thank you for that site, i have not heard of that group. although I believe their cause is a lost one, however there is LIKELY truth to some of what they say....

why not be on the same side as the "manipulators" ?? they leave rather large footprints

:D :D :D
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But the question is, what happens when the manipulation is revealed? For the sake of argument, what would happen if December physical delivery of futures contracts failed?
 
Quote from zboy2854A:

But the question is, what happens when the manipulation is revealed? For the sake of argument, what would happen if December physical delivery of futures contracts failed?
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In that event Comex would probably try to reissue paper, or settle in cash (bailout). But that begs the question, who would buy after that.

No one wants to be the one without a chair when the music stops

edit: All I know is there's a huge shortage of physical gold, you cant find it, and when you do, be prepared to pay HIGH premiums over spot. Most dealers that still have inventory will not sell at these prices.

One side or the other eventually has to give. I have to side with the actual gold stuff.

fwiw,
 
Quote from zboy2854A:

But the question is, what happens when the manipulation is revealed? For the sake of argument, what would happen if December physical delivery of futures contracts failed?
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i believe those who matter all ready know all there is to know.

there is plenty of physical, its just waiting to be released--- my opinion ofcourse.

surf
 
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