If you would have said that at $1,900, 1,700, 1,500, 1,300, yeah, I can hear you. But now every one and his brother comes-out the wood work, screaming how low gold is going, when it's $1,090-ish, with a chart that looks like it could possibly hit $950, which I wish it would ASAP, instead of hanging-around this level; Unless it's headed to $500, I'd say they are real late to the "short-gold party", and are rather parroting the other shorters, pundits and USD believers--and their desire, wish and bet, that gold's headed "so much lower". I say it's headed lower too, btw, but when I look at a long-term chart, I see $950 for strong support!
I know...that's why I say, the new currency of the world, the TRUE STORE-HOUSE OF VALUE are USD denominated paper and big-coins. They/it has "true substantive value", not some yellow-honky metal that Native Americans were massacred for, or that gave King Soloman un-told biblical riches.
It's all about Father Fed now, and his ability to make the US-Markets strong via QUANTITATIVE EASING! We aren't subject to -10% corrections any more, thanks to Father Fed. Still, our economy is so strong that we don't have to charge interest anymore. That's a thing of that past, an old-time-usury notion.
Nowadays, it's about $4-trillion Father Fed support, 0% for infinity and rich US-stock market paper. Thank-you Father Fed and for enlightening us to the "new and real store-house of value"! Time to buy some more DUST!
No, you are right, the millennials have been taught by Father Fed, that USD "is the only salvation". Never mind that the Fed created $4-trillion to buy mortgages and bonds, and lets US-Banks park their money there to gain interest. We have been taught in the benevolence of the Great Fed, that has given us a stock market that is no longer subject to -10% normal corrections, and can now run near fautless with much less tendency to "go down". We've been taught that the whole "hard money commodity complex is bunk", and such things as "digital dollars hold more value". Yeah, we think of WW-II Veterans as "hold fogies", that use to save money in their mattresses, still remembering the Great Depression. What's that? But, we are a much smarter, younger lot, that knows no true sacrifice, b/c Father Fed is there, has been there and will be there.
Simply put, "war and gold are old-fashioned notions". We have Facebook, Twitter and Bit-coins. Never mind 8-billion people and growing, a 1% that controls more wealth than in the history of the world, and a climate that is reducing the quality of living beyond anything enjoyable and sustaining. We have Father Fed! Buy USD, b/c it's the ONLY STOREHOUSE OF REAL VALUE! Thank-you Father FED!
It's not a political "Dem v. Rep." issues. It's a broken Capitalist system. You had it right, about Keynesian debt-wrong-doing, but you left-out "Capitalist Cronyism", bought-and-paid for lobbyist, manipulation of the Markets via the Fed and other institutions world-wide, massive Quantitative Easing Programs worldwide, the enrichment of the top 1% to un-heard-of levels never before seen in the history of the world. This is so not a "Republican v. Democrat", "Conservative v. Liberal" problem.
Where will the DOW be? The S&P? Oil? Copper? Wheat? Corn? Palladium? Soybeans? Heating Oil? Lumber? The 10-year treasury? All up, right!
After the Chinese market lost -8% over-night, the biggest daily decline since 2008, Chinese regulators promised to purchase massive amounts of stock to support their otherwise crashing economy. Meanwhile, the US has already done their "massive support", with the Fed's $4-trillion-dollar life-line. Europe is said to be looking "not so good", while the ECB is ball-and-chained to Greece (everyone says that crisis is past now that Greece agreed to European bail-out terms, but what has really and fundamentally changed with Greece?), and yet US Indices aren't really all that far from their not-too-distant record-high territory!
Ask your self this? Doesn't such seem just a "little bit odd"?
Isn't it just a bit odd that the best stock on my screen is DUST? Yet gold at the Comex is "up" for the day!
All I can say is "there will be wailing and gnashing of teeth", as we've let Markets around the world be totally manipulated, inflated and supported by Central Banks and Governments. What would normally retreat a market into some kind of "correction territory" no longer does. It can't, b/c the "Fed's of the world are holding it all up", and we've sat-around and patted-our self on the back, and said "how good things are now that we've "Recovered"." All smoke-and-mirrors and there will be a day of reckoning when the Market prices assets "fairly and accordingly" not to some Central Bank's determination.
Why did we let this happen? Why did we give the top 1% "that much more" with QE-2-3-4?
We are culpable as a people, letting big-Money not only take-over our body politic, but also our supposed "free market". Crony Capitalism and manipulated stock markets, is what we have, pure, plain and simple. At this point, one must say, "let the chips fall where they may"!
Please know this was said "tongue-in-cheek", a "spoof if you will" on the fake Fed-asset-inflation scheme. If it sounded totally ridiculous, it is/was and meant to be. Sorry I didn't give a disclaimer, or let-on that I was b/s-ing. I actually find it un-believable that the statements above could be half-way believed. FB isn't the best poster child of "paper over-valuation", for there are too many others that fit such gross analogy.
Crony Capitalism has gotten so many on the Street to actually believe in the bubble-paper-valuations we are seeing. It's sickening to me, scary and I can't imagine how bad the fall will be when the "game is finally up"; Which begs the question, how far down the road can the Fed kick the proverbial "normalization of rates threat"? IMO, the Market's getting one-leg up on this, trying to tank itself, forcing the Fed's hand for a "Dec." rate, that ultimately will get pushed-out to 2016 And the merry-go-round goes on-and-on-and-on.
For us gold investors, I also believe that what we want to see at this point is absolute capitulation. We don't want to hand-around levels that will ultimately break support, thus a total wash-out is what one wants here. The quicker and harder if falls is the quicker and stronger it can recover, imo.
The Market is being ruled by smoke-and-mirrors, multi-nationals and Wall-Street Cartels. They want you to bow-down to USD, even though that USD is backed by $18.3 trillion in out-right debt, another $4-trillion in Fed-asset-bubble-creation monies (all since 2009---boy that's a lot of debt fast. And they have the gall to say that "it's not really debt and the Fed's balance sheet is un-limited! You know it's bad and we live in a ferry-tale land, when money can be created out of thin air, with zero accountability!), and a populace less able to make ends-meat than ever before on the heels of a great "Recovery". Smoke-and-mirrors I say, smoke-and-mirrors, and the end-result is devastating,....
Question is, which will go down faster, the stock market in general, gold, silver, oil, copper, wheat?
Why is the 10-year in retreat, with a Fed-rate hike looming? Wouldn't folks be selling the 10-year with a rate-hike on the horizon? I know, I know, we've drunk the Fed's cool-aide, and bought-into the "all is well, paper mantra". Yeah, what's the US-Government's debt level now? $18.3 trillion, and the USD is strong-strong-strong, on top of a near record high stock market. But unlike the old days, people/consumers bustling with money in their pockets, buying cars, homes and consumables, today's record-high stock market is going directly into Wall-Street's pockets. Yes, we sheeple buy-into the "all is dandy manta" and "now the Fed will normalize rates" and all will be fine. Yeah my friend, sure, great, only will the rate increase be in September? December? or next year even? The 10-year note says we're full-of-it to beleive it's this year! And yet, not a person is concerned in the least, not a smidgen with a "forever going to raise/normalize rates" Fed. I bet they will when the Dow/S&P start falling off a cliff!
Gold is a reserve currency the world-over; Once folks get a real glimpse of the "paper conspiracy the Fed had hoisted upon the world--enriching the 1% beyond any level in the history of the world", you'll start to see a real and earnest effort to find things of true value; Which, btw, show me one culture standing dandy, when wealth disparity has become this extreme?!), And when will that be you ask? When the Fed, either in September, December or "sometime next year" tries in earnest to raise rates, even just a bit! Until that time, the merry-go-round game will go on-and-on-and-on; Believe you me, "normalizing interest rates" CANT be taken to mean raising interest rates, b/c a world of fluff has been built on 0%. How can the US Government function so-much-better, if you have them pay so much more in interest on $18+trillion, when consumer receipts and taxes are a smidgeon of what they once were when boom-times were real, and lots of people had good paying jobs? Take -0-% away, and you get a glimpse of the real state of the economy!
It's not only ABX that had "debt problems"...the US Gov. debt stands at $18.316,000,000 TRILLION, and they/we haven't had a rate increase in x10 years; I'll also add that we haven't had a true -10% correction in the Markets either, since the Fed's stock-market inflation scheme; The Fed's balance sheet stands at $3-tillion +
Where do you think "all this is headed"? I've never seen a stock market more over-valued, nor over-leveraged by the Fed, in world history. True, ABX could get taken-down to -0-, but at the same time, you'd be way remiss to not mention the other "debt bombs looming". At some point, something of substance will hold reserve currency value. The "money-changers" are attempting-fighting with all their might, to get you to believe it's USD, and on the surface, it looks to be the case. But since when did (as I heard Market-watch say just the other day), that the Fed can print an infinity of money with zero consequences.). That heightened me to know that we are in one of the biggest equity bubbles the world has ever known. If gold does you no good, then maybe 'food, water and a shelter" is one's best bet. There will be wailing and gnashing of teeth, when stocks show their "real and intrinsic value".
It's not the Co. and the results, which is/are more than admirable in this gold environment, as it has more to do, imo, with Central Bank policy, equity asset inflation, durable goods/services non-inflation (The Fed's 2%, where?...more like broad de-flation, the very thing the Fed was trying to avoid with their massive QE-buying spree! Yet, instead of spurring some broad consumer-demand inflation, they've rather inflated the stock-market to un-heard of heights, all the while nothing else is really keeping-up; Yeah, you can point to this-and-that, and say its back to pre-crisis levels, but truth be told, we've way-way over-inflated paper, while the true fundamentals never drived that run-up in asset prices, but rather, it's all about the Fed.---dangerous-dangerous policy, that we never have yet faced the repercussions of, b/c we haven't tried to raise rates in x10 years. So, there's a concerted effort to diss gold, while getting everyone to believe that "all is well in the stock market, simply b/c prices have never been higher". I've said this a bunch, and I'll say it again, LOUD AND CLEAR: QE-1 was absolutely needed to keep us from going-off-the-cliff, but QE 2, 3 and 4, only served to enrich the uber-rich 1%, such so that there has never been a greater disparity in the history of the world, between rich-and-middle class, much less poor; Yet, this is taking so long to play-out, b/c the Fed has infinite (almost anyhow) financial power, to dictate asset-prices. The only way they fall short, is when they try to "normalize rates", imo. That's when the ruse is up, and so-called getting-back to normal begins, and that's when we find-out just how "far from normal" things are in the market, when it hits highs, day-after-day, with hardly a normal -10% correction, which used to be a healthy thing for un-manipulated-by-Fed stock-market pricing.
Look at a 50-year chart of the Dow, and tell me what you see! I don't want to be an alarmist, but I see 1929 and 2009 coming
For this company, then I'd buy 10k shares! They will try and fool you into believing gold is value-less, b/c they want you to believe in USD, even when we are at $18-trillion in debt, and they can't raise rates (and if they ever could more than nominally, how could we effectively service that kind of mother-load of debt!), and we are caught in a deflationary spiral, even when the Fed has spent some $4-trillion trying to keep our head above water! Somehow this state-of-affairs, is supposed to make gold "less valuable". Yeah buddy, spank it down, bc honestly, the lie is not big enough for me. I need to see sub-$1k gold, before I'm a believer in Uncle Scam-bam! Give me 950 gold, then we'll talk about how dandy things are!
Point being, and as painful as it is, let them take gold so low as to expose this huge Fed lie for what it is. We can't stop it, but what I see is that "truth and the real state of our economic affairs" is coming to a head. if things were "that great", we'd have a sniff of inflation, consumer borrowing, building, buying, etc. etc. Instead, we have falling commodity prices, and unprecedented deflation, which will result in falling consumer prices.
You/we must be very patient here, and very long. At this point, we want to see gold falling -$25-50 dollars a day. The quicker it gets to where it must, is the quicker folks will realize the sham that is a record-setting US-stock market, USD-paper, and the lie can be exposed for what it is: massive Central Bank intervention, destroying true market-based asset pricing, while giving the 1% a life-line and a bonus check, while the rest of us sit and watch!
We want to see this get a lot messier, imo. They are trying to get people to believe it's a "gold thing" only. Look at all the rosy forecast for oil, even when Iran is set to un-leash 500k-barrels-a-day in the Market, then 1-million, still they sing the praises of increased oil demand and pricing.
What we should be realizing and witnessing is one of the most destructive, broad-based commodity declines in the making--all the while when the Central Banks of the world are massively inflating paper. Don't you think if the world economy and the US economy were "that strong", that the Fed could at least raise rates 1-basis point! Yet, in all of x10 years, they can't. Now, how can they raise in September, with oil near under $50 and a host of other commodities prices free-falling and the uber-strong USD crimping multi-national sales? It's a ruse, a scam, and we've let the oligarchs bid it all up, with greed and mal-practice. This whole charade of paper is going to come crumbling down much like 1929, b/c the Fed and their bubble antics can't keep going-on forever in 'forever going to normalize mode"; Either what they say is true and a rate is forthcoming, or they've been fibbing and exaggerating, with this whole false notion of "economic strength". Truth be told, few realize just how precarious a position the world economy is really in, mainly exacerbated, not by QE I, but II, III, and IV. Those huge $trillions have gone into the US-banks pockets, the top 1% (never greater disparity in wealth, in the world's history!--EVER!), and Corporate America, and they've peddled the lie that "all is well now, and we've recovered". Yeah right, that's why oil is at $50 and falling, that's why any hard assets are seen as value-less. It's all about Fed-paper, until it isn't, and the fact that the Fed hasn't been called-out for B/S yet, after x10 years, only tells me how much bigger this fall is going to be.
I wouldn't buy here, not after watching the action; POG should have bounced, but nada. We are seeing the effects of a huge wedge-pattern, many years-months in the making; Many were wondering "which side she's break", and now the answer: the downside. This isn't over in x1 day. I now expect something below $1k-an-ounce, before we can even think about a rebound.
I know, absurd, but not if gold hits $500-800 Otherwise, with pog around $1k, I see $10 for GG! I see $5 for ABX with this current gold-price though....
This shows you how 1) the paper-gods at the Fed, with their $4-trillion stock-bubble inflation experiment, want this scheme to work and 2) how big of a bubble it actually is....
The other hard truths are that 1) we are in a deflationary free-fall, with oil headed to $40 a below, possibly, and 2) the USD-King-Dollar effect, b/c every other currency and commodity is bolstering its strength.
With "all this", gold can't help but be where it is. The next logical question is "how low can it go"?
That's "conventional wisdom", much like when She said gold would rally beyond belief when the Fed printed $4-trillion. I will wait to buy "on the day the Fed announces a rate-raise", throwing conventional wisdom under the bus. Until then, you get your all-caps yelling about gold's deflation, imo.