Without a doubt, we are nearing the day when the existing system built on the quicksand of Keynesian anti-capitalism, as opposed to a system built on gold will reach its breaking point. While it’s difficult to know exactly when the system will crack, this may indeed be near. One sign suggesting a breaking point may be imminent is seen in the chart of the KITCO Gold Lease Rates chart on the next page. The one-month lease rate (red line) has risen above the three-month and six-month rates suggesting a rising demand for physical gold rather than paper gold is starting to take place. But there is reason to believe the COMEX and LBMA will fail to deliver gold at some point because contract volume surpasses physical holdings by 100 to 1! It is possible last Friday’s move to a higher gold price, which started as the London markets were closing, is suggesting it is “game on” for gold and “game off” for the dollar currency fraud. If so, rather than seeing predictions of $800 gold by ABN Amro come true, we may be witnessing a double bottom for gold and double trouble for those who have written contracts to sell gold they cannot deliver. If that turns out to be true, 2015 should be a most profitable year for those who own physical gold including companies with gold in the ground. Stay tuned!
By Jay Taylor. Read on Kitco news. Double trouble or double bottom?
Bullard Does It Again, Says Market "Misread" His QE4 Comment
Read more on Zero Hedge.
Dust better get ready. Monday maybe good for DUST but the rest of the week will be all NUGT. IMO
We have positive news out of China and the ECB today . At last check spot gold trading above $1200.00. Looks bullish to me.
It's not any beer. :). Just my I Pad with different formats/versions of CNBC. I have 3 I Pads that I switch out when the battery's get low.
Hi trader 537, I was was watching my stocks and ETF'S on CNBC and all of a sudden everything I was watching went negative. CNBC must be screwing with all their viewers I guess. I all most had a heart attack seeing green one second then turn red the next. Freaky!
“There’s a lot of bears out there, brother. A lot of bears,” Comiskey said. “My thinking is we are going to gravitate toward the $1,175 to $1,170 range.”
He later explained: “Somebody has a lot of firepower who committed to those strikes on the put side…..Now, Mr. Market is bigger than any one entity. But, whoever committed their funds to those strikes is going to do everything in their power to drive the price of metal down toward the strike or below the strike so they can profit rather handsomely going into expiration.”
Further, regardless of options positioning, the stronger tone in the U.S. dollar lately is a factor that could also hold down precious metals, Comiskey added.
Meanwhile, there is potential for the market to make a counter move after the expiration as traders unwind newly established futures positions, said Sean Lusk, director of commercial hedging with Walsh Trading. He said the biggest open interest – at strikes that are relatively near current prices anyway -- appears to be around major round numbers such as $1,150, $1,175, $1,200, $1,225 and $1,250.
Read the full article on Kitco News.