I know he's a billionaire, but even at $2-Billion, losing principle on a $250-million GLD bet is a big hit. When he first announced his big purchase into GLD, I felt a little more secure, figuring he's have more insight than others, since he's plowing his greatest amount of money into this asset-class. But low-and-behold, he's getting fleeced, along with every other gold-investor.
I personally think people don't realize how powerful the Fed is to dictate the Markets and USD valuation. Unless things slip beyond their control (one thing Miller was figuring in his big-GLD-bet!), they will continue to juice the stock-market higher (even with their so-called tightening, it will be so minuscule, and so non-traditional, as in, no "tightening cycle", but rather, a series of hodgepodge, let's "see-what-happens-if-we-try-this", type experimentation", that you'll never know that the Fed actually tightened.) That's my guess anyhow.
But I did think Drunkenmiller would be a little wiser than to get so fleeced as he is. Damn, just goes to show!
People don't want to acknowledge, much less believe, the rampant, often big-institution manipulation of Markets, that goes-on routinely, while the SEC sits-on-its-hands. What ever happened to the US Justice Department's investigation into the Big-Bank gold-price fixing scheme?
Y'all, ever since the Fed co-opted our markets in 2008, with their $4-5 trillion-dollar backstop of not only the stock-market, but also the big-banks, we've seen nothing but a strong-strong Market that can never really go-down! It's being held-up by the Fed, and the Fed's policies have hurt other economies currencies, while sending ours through-the-roof; And all this has put "gold" into the toilet, even though the physical market has never been bigger, or seen more "buying by nation-states". They've turned true supply-demand economics 101 on its head, and not it's all about putting money into Wall-Street's pockets, at the expense of nearly everyone or everything else in the world, savers and pensioners be damned! But, this obscene largess won't go without consequences. IMO, we've sown the seeds of a great financial calamity yet to come, b/c real Market valuations have been turned on its head, and now it's all about Fed-induced actions. Yet, the Fed is the biggest bank in town, so, as long as they can dictate policy and have the Markets respond, in kind, then all is well; It's when they lose their power and legitimacy that "all heck breaks loose". One only need study a bit of world history to see the end-result of "all this"...and it's often "not pretty"! GLTUA! eom!
I've been looking at this stock chart-wise too, and it's hard to call a "fantastic bottom entry", but if the recent low in WTI oil prices wasa $38.25 on August 24th, '15, then buying on this pull-back from the nice +$10-dollar run in RDS-A, ($40-to-$50 quick climb!) and now buying near the 52-week low in the middle, would be a great-great long-term buy; However, if you are in the camp that oil prices haven't quite see "the bottom" for this year, or early next year, then you'd want too look at the "strong double-bottom formation" at RDS-A at $32.35 , which hit Dec. 26th of 2008, and extrapolate-out for "another scare 2nd-leg bottom" somewhere around that figure, and wait to start accumulating big then. Both time to grab-on-big in this stock are #$%$ shoots, imo, b/c it's hard to tell about world-wide demand if China doesn't start-back-up big, and/or if we start trending recession here in the USA; These considerations along with Iran's 1-million barrels a day (eventually anyhow), and we could indeed see such a "scary double bottoming situation" develop.
It really all depends on your current vested amount, what you ultimately want to acquire in this Co., and where you gut-feel think we're headed. Personally, I'm just an observer at this point, and I would go hog-wild long if RDS-A got near $32 again, barring it so doing wasn't under "Wolrd-wide Depression" conditions.
To be safe, and if you've got a lot of buys to make, I'd begin accumulating on big-down days like today, and save power for such a scenario outlined above. $45 feels cheap for this stock long-long term, but that doesn't meant that it won't #$%$-out, making such a historic true double-bottom formation, from 2009's first bottom at $32. We'll see...
Memphis, TN $1.85-1.90 (Of course, it varies, but this is about the normal "cheap" price you can fine, all the way to $2.10, anything higher and you are way-way over-paying in the Mid-South.)
If I can get-out of my options position with any respectable results, I will stay far away from ANY investment that is so manipulated; Of course, that leaves me hardly investing in any thing, b/c so much is "controlled and manipulated". But lesson learned, and I'm just hoping for some kind of graceful exit from this madness of fraud, that appears to have the blessing of regulators. Libor, CDS-CDO scandal mired in mortgage fraud, gold-bench-mark rate fixing by the London crew, lying Goldman-Sachs CEO Blankfein, selling short-and-long, duping clients along the way, then saying "he did nothing un-ethical or illegal. I could go on-and-on-and on.....
Needless to say, even as I write this here, you can observe the bank's "controlled black-box naked-short machines" kicking-into-high-gear, whacking the miners. If by some miracle, the Comex pog can close above $1,150, that's bullish, and if we can break $1,170 strongly, then I don't care how low they attempt to snuff the miners, b/c the pog on the Comex will have shown great technical bottoming. Of course, I'm not holding my breath. "Gold Price Fixing charges (investigations) by both the Justice Department and Swiss authorities, only means that "someone confirmed what we've observed all along"----massive manipulation by the big banks! Against that kind of backdrop, how can a small-fry investor hope for anything less than complete annihilation! One of these days though, average Americans really will say "enough's enough" and if they/we don't directly address the issue "in-the-streets" (on Wall Street specifically), then we'll probably elect some one like Bernie Sanders, who will honestly fight this US-Gov. sanctioned THEFT!
Manipulation my friend, pure-and-simple. The Justice Dept and Swiss authorities aren't flapping their lips for nothing when they talk about "investigations into gold price-fixing by the major banks". This is one of the most rigged markets I've ever seen in my time trading the Markets. Word to the wise, if the POG doesn't get-up and hold above $1,150, then on to $1,170, breaking above that level on good volume, DON'T WASTE YOUR TIME/MONEY!
This is total B/S and manipulation and it's called FRAUD. No reason in the world the POG should be down when there will be no interest rate raise this year, revealed by the Fed today. One of these days,...one of these days, is all I can say! Until then, one could hardly dispose of his/her funds any quicker than investing in any type of gold instrument, and I'm surprised Stanley Drunkenmiller got hood-winking into the GLD to the tune of $130-million recently! Just goes to show, ANYONE can get fleeced!
Don't hold-your-breath; Don't forget that two substantial probes (Justice Dept and Swiss), investigating "price-fixing" in the gold market, by the big major banks. It was obvious today, how the Comex was stangle-held at $1,150.8, then shorted into the ground. Gold can't break $1,150, which it really needs to do, to show some technical strength, much less the $1,170 it needs to get-over to break the downward channel. Don't think that these manipulators don't know this. By all accounts, the Fed minutes were bullish for gold, but the controllers wouldn't have it. If I wasn't already-in some gold miner options, I wouldn't consider a gold trade until the POG of gold was bidded higher, on higher volume, than $1,170. Until then, one is throwing his/her money away!
I think this is total B/S, but it would explain why GFI is stuck-in-the-mud, versus the other gold-plays!
You're wrong, it is about "money supply", but your example of increased money supply since QE, is mis-understood. The velocity of money is low-low-low, b/c banks aren't lending and people aren't taking-out big loans. If the "velocity of money" were high, you bet we'd have massive inflation, especially on the back of a Fed 4-trillion dollar balance-sheet. Gold has been manipulated beyond normal trading, and you might also understand it's in the US Government's interest, US-Banks and US-Corporate's---all beneficiaries from the Fed's massive largess, to see gold down big.
You have the Justice Department earlier this year, that supposedly was looking at big-bank gold-fixing charges, then the Swiss recently. Are they all gold-bug kooks? I doubt it, but what they'll probably conclude is that "those doing the manipulation" are back-stopped by the US-Governments, so "hands-off" and no charges will ever be forthcoming.
But the health of the whole Market system is at stake, and Gold can only be manipulated as long as there's the appearance of "everything being OK with the Markets". Once the $4-trillion Fed balance-sheet comes-into-play, and inflation becomes something to absolutely contain, you'll see gold have its day. Also take note, just how far gold as come since "funny-money has become a way to do business with US-Government in bed with Wall-Street". POG in Oct 2000 = $370, POG in Oct 2015, x15-years later = $1,145 And you talk about Gold having no value under hardly any conditions? How about an increase in value of 300% since year 2000? Thing is, imo, it's way undervalued relative to the "financial engineering taken place since 2008", and as I related, since the "velocity of money is muted", we haven't seen ANY EFFECT from that massive stimulus, money-printing scheme.
...the average Joe worker, you and me, will REACT, and that's why you keep hearing about the Stanley Drunkenmiller's huge fear-trade into GLD to the tune of $130+ million, along with Carl Ichan's recent tome and warning about the huge disparity between CEO pay and regular-Joe's pay, and the hugely sour Market we may be in store for....
These guys don't normally blow-blue-smoke, and sound an alarm bell. These are huge hedge fund leaders, who have seen the obscene wealth gap that has taken shape these last x15 years, as a strong, viable middle-class American has been pushed further and further into service-caliber, part-time work, and lower-and-lower real wages.
In reality, the type of world we live in should be pushing gold to all-time highs, but instead, we've seen the exact opposite, as the Fed, tries everything in its play-book to keep the charade marching-on. But fundamentals do matter and in the end of every great civilization, that's what determines "viability, growth and staying power". At the demise of so many cultures past, is unprecedented corruption, fraud and manipulation at maintaining a "appearance of strength". B/c of all this, that's why you have a candidate like Donald Trump leading in the poles, b/c even though he's a "successful businessman and misogynist ", deep-down people and the citizenry know "we are in trouble" and we need significant real change if we stand a chance at being a strong country, economy and power.
All this said, I am stuck in the some gold options dated 2017, and I sit-by and watch them wither day-by-day, but I know gold will have its day, especially as the fraud reaches its maximum sustaining power, and folks realize "what's there really left that has value"? But from what level that POG will shoot-up from, or how long the Comex can't distort, I don't have a clue. I suspect, just like coal, many oil plays, other basic materials and commodities sector, many bk's can ensue first.
GLTUA and heaven help us all, im
Thing is, not one CEO from any of the gold-miners, junior or majors, has come-out in support of now a Swiss investigation, along with a supposed Justice Dept "possible investigation" that we've never heard another word about, since it was announced this past Summer.
I've come to the conclusion, with the Comex's nearly 100:1 derivatives-to-actual-physical-gold "paper products" (that's huge funny-money leverage, btw), is a totally rigged-to-the-hilt, out-right scam. It's almost "what's the point"? So much of our Markets are like this, yet it goes on-and-on-and-on, and imo, even though we haven't seen the fruits of such fraud market-wide yet, we will, as such seeds have been thoroughly sewn. We'll see it with the Fed's attempt to "normalize" from an obscenely abnormal intervention, which imo, sealed-the fate of the Market's big demise, in it's "way over-board, gargantuan US bank-and-corporate well-fare give-away, to the tune of $4-trillion", yet we like to act as if "nothing much happened, and any day now we will RETURN TO NORMAL". There are so many duplicitous, conniving, disingenuous and outright fraudulent dealings in the broad Markets, that they have become pretty much un-investible, imo.
I would say, about the only thing one could possibly put their money into and have it do well, are the smatttering of New American companies that come public, and represent a sea-change in the business they offer, and are new-and-fresh and not as subject to the dictates of manipulation and fraud; But these are far and few between, especially as many companies have recently held-off coming public in our recent "down Markets".
Fraud and manipulation in the Markets are now commonplace, and have lined corporate Wall-Street's pockets since the Treasury and the Fed gave-away-the-store, on top of stealing people's homes during the CDS/CDO debacle, which never has been "reconciled or corrected", but only made more perverse. One of these days, the average US Joe working will....
That "Dr" is a cook. Do a Google search of him, and you'll see, he's simply a shill for the gold-bug industry. I'm long some gold-options btw, but I don't appreciate the "gold propaganda industry". Anyone who has listened to these "gold prices to the moon calls", are now staring bankruptcy/default in their investment dollars. Gold prices will rise again, but it won't be at the behest of these "cooks-and-gold-pushing crooks". Guy should be called a "Dr." unless he's a "doctor of bowel movements". All imo, and no personal offense!
PS: Him and Peter Schiff need to have tea together, in golden cups, and they can spew some more grand postulations!
I can't resist a bit of sarcasm here-and-now; So here it goes:
"Hurry, we need to tame this rapid inflation ever-to-come...hurry, b/c wage-inflation is set to soar, lol. Hurry, inflationary pressures are building like an H-bomb, and we've better get-ahead of this madness and raise rates this year! That will show how strong our economy actually is. Never mind that commodities across nearly ever class imaginable are falling as if we are headed for a "Depression" (if you look to commodities as a read-or-take on the trajectory of the broad "health" of the economy, you'd conclude that it is SCREAMING DEPRESSION COMING....When's the last time commodities were this low? 2008!)
So yes, hurry-hurry and raise interest rates before this killer inflation takes hold! LOL...lol, Fed backed in a corner...now what? I like to fill-up my Prius for $1.78, so for $12-bucks, I get 425-miles, not bad!
Yes, throw-away the only thing that has sustaining value (while remembering that it's totally a rigged-market anyway as referenced in the above article), get scared, b/c everything has been turned on its head, corporate paper is over-valued about x2-3 b/c of Fed-play, and through "rigging, cajoling and out-right fraud", the pm's are getting tanked, to obfuscate all the charades of "Father Fed, Corporate Greed and Paper-Play". Sometimes we have to learn the hard way! Brace your selves, imo! S&P down -144-points or -3.09% Buh-Yah!
I wouldn't buy "here-and-now" to recoup losses. The real Market swoon hasn't really begun yet. Soon, folks will see what unprecedented $4-trillion-dollar Fed-intervention does to Markets, when that support is pulled-from-under. Welcome to the beginning of 2008, fresh in the making, imo.
Yes, precious metals will get dragged-down too, into "penny-stock territory", then you want to be very selective and buy the ones with the least-amount of debt-to-equity. I'm waiting to buy to "recoup" losses, but we're simply not there yet, imo!
I'm sorry, but I don't think you realize the extent that "corporate paper" is "getting a hair-cut and going to get sheared". The "trimming" is 1st-batter-up, 1st inning, with the game totaling triple over-time, imo. Hang-on, and short-at-will. The only real things with true value, are getting manipulated down as well. Google "Swiss authorities probe 7 banks for suspected metals price fixing", and you'll see what kind of world we live-in.
I predict Oct will bring some of the most ferocious selling of paper-assets we've seen since 2008!
Copy-past the above headline to read today's news!
Copy-paste the headline into Yahoo-Finance search above, to get the full story!
Surprise, surprise. Copy-paste the headline into Yahoo Finance search above, and read for your self!
Reverse split would spell the end of this Co., as a publicly-traded entity! It's more than a big-deal, it's a end-of-HMY deal, and one might as well start shorting the next minor "pop" if one wishes to make a dime of HMY, imo! Sad that management feels this way, and is willing to let-this-happen. CEO's resigning too, so no telling what self-destruction HMY has planned for itself. Shame is, the balance-sheet isn't that bad, compared to some more viable miners. There's a better way, but maybe management is too weak to seek it!
Good reply "apax0260". I agree with you, this should be seen as a "positive" on many different levels....