GOLD GAP DOWN
April 15th, 2013Warning: This is not a recommendation to buy, sell or hold any financial instrument.
Gold Set for Worst Two-Day Loss Since 1983
Via: Reuters:
Gold headed for its biggest two-day drop in 30 years on Monday as funds accelerated their exits from the market, and investors also cut exposure to oil, copper and grain after underwhelming Chinese growth data.
The precious metal slid further into bear territory, dropping more than $30 in a matter of minutes at one point. Losses widened to more than 6 percent at the lows as prices breached support at $1,400 per ounce after falling 5.3 percent on Friday.
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$1403.
Hot knife through butter.
Next likely support: $1300.
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Bloody knuckles over that weekly 200 EMA. You have to see this, keep in mind, this is the weekly interval:
Spot Gold, Weekly Interval
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$1445. Longs trying to bounce it.
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Sitting exactly on the weekly 200 EMA.
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Through it. New low: $1425, possibly overshoots. Longs definitely had the same idea as me. They’re trying these levels now in an attempt to get a hammer formed on one of these supports. Bounce is pretty feeble so far.
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That 38.2% level fib retracement caught it for a few minutes. The weekly 200 EMA is $1439.
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From a couple of days ago: “Shorts should consider paring it down, closing it out or reversing it long (short term) into $1450.”
I show a low just now of $1448.91.
Let’s see if it holds.
So much for $1480…
Burn, evil paper, burn.
Yes Steve Holmes I agree.
The operator at the tollbooth told me today that after last Wednesday storms (straight line winds at 80 to 90 miles per hour in our area)that he was glad he didn’t lose $400 dollars in tolls due to the winds. An analogy appropriate to paper gold methinks.
Wondering why the nefarious critter JP Morgan Chase took their physical gold holdings out of their piggy bank last week? How did they know there would be this paper chase on gold this week?
Goldbugs, keep the faith. Hold onto your few coins in your piggy banks. I know I am and will never depart from getting out of paper. And you long and short folks, may the goddess have mercy on you and your gambling.
Oh and please forgive me. I have no judgement on peoples who enjoy gambling on shorts and longs (although I question the procedures involved). My father, dear Joseph was born in 1910 and started playing the penny stocks on the market when he was seventeen. He loved to gamble on stocks. He made and lost a fortune – at least it was to him- many times gambling on – or investing in the stock market. But that was before all of this electronic manipulation stuff. Its not the same game anymore. Take care dear friends. Hoping to make many off of shorts and longs to me is like playing chess against what is it, the Deep Blue computer? Methinks it is better these days to be putting food, water, clothing and shelter on your family.
Eileen-
I also found it interesting that JP Morgan is just fine on allocated gold, but unallocated accounts have vaporized. There’s nothing there. Other traditional vaults have tons of both. Something mighty fishy going on.
On January 16, I fell twice in the ice and gave myself a nasty concussion. So I took percocet and went to bed and had a strange dream that was so odd to me that I wrote it down. I saw a “vanity” license plate on a car that read, “SHORT MAY 5-OCTOBER 2.” I don’t own paper, and if I did I would have already sold it and bought physical gold. So maybe it was the percocet, maybe it was a warning for others. In any case, I have had an unshakable feeling ever since that the wheels are coming off the bus. We shall soon see….
Here’s my theory: The people with the wealth and power derive that wealth and power by extracting rent from the entire economy. They only continue to accumulate that wealth while the general public is participating as much as possible by spending every dollar that hits their wallet. Once someone has run out of money from savings, they must borrow and spend. The worst thing that can happen from the owners and rent-takers of the world is that people save, hoard, bug out (flee to Northland :)) and slow their participation in the economic machine. Things were fine when it was just a few “nutters” running for the hills, but now pretty much everyone realises that something has changed, something has gone wrong and we’re not heading back to the glory days of booming markets and tomorrow being better than today. Suddenly the feature article in the Sunday paper is on cool ways to be frugal. What is this, the 30s all over again? People are talking to each other about ways to save money – I don’t mean buying a TV on sale, but actually accumulating money in a bank account so that if times keep getting tougher, they’ve got something to fall back on.
If you’re a big bank or own a company or three, this is Bad News. Money that by rights should be theirs is being locked out of the system in bank accounts and (worse) gold and (even worse) bitcoins. So what’s your strategy? People must be convinced that their money is not safe anywhere, so you might as well spend it now. Here’s how:
– Engineer collapses of confidence in stores of value. I use the term “engineer” loosely, because generally these markets collapse themselves. Either way, people get scared of losing their money because they saw gold at $1700 and now it’s $1350.
– Convince people that the assumption that the govt would step in and guarantee bank deposits in the event of a crisis is false. Cyprus is a nice small scapegoat… Once everyone is convinced that it’s possible, a few casual mentions that “technically it could happen here as well” will do the rest.
The lesson is this: Your money is not safe anywhere. Not in the bank, not as gold, not under the mattress. The only thing to do is spend.