Quail, it still the bankers in control. Supply and demand of metals is mostly trumped by the movements of banks, their money and client money. Clients include governments, international corporations and the very rich. This is how currencies/pairing works. China is a client for developing international corporations and trade. Everything around the world is priced in a currency. When you want to sell or buy a product with another country, the pairing currencies will be adjusted if several events are timed within a certain length of time. Why, because every product is money and other more real forms of money surrounds that, as in taking advantage. Banks are like the mafia.
No news is right. I did see early on that traders in Japan were covering some dollar shorts. I'm always cautious of this, as they have become a quicker trading society; ( post from September 16 ).
So much for Buddhist patience, but then again, Buddhist are too smart to invest in paper values. I think investors in Japan and maybe Europe saw #$%$ budget resolution coming soon, so there was a little covering. I had mention yesterday that some banks in Europe had taken shorts on the USD, but I was surprised by the 10- year bond movement today. That could have been a little too manipulative for a Friday with what's going on in Washington. I should say what isn't going on in Washington. Nothing new there.
The benchmark 10-year note was 3/32 higher in price, yielding 2.615%. This was a pivot point. Bond prices move inversely to their yields.
The 10-year yield could fall to 2.5% at some point next week. When (if) it hits 2.520, I will buy a solid position in EXK.
Treasuries holders (banks) will convert to gold when their client business ( money laundering) is completed. Watch 2's and 10's for signal, but wait for a second wave for confirmation.
I'm really under the weather again today, and I'm finding it hard to write a constructive sentence. I really do care about my friends (here) to make money. There are a few currency EFTs that have more than decent track records. Maybe this is something that we should discuss in consideration for those that may want to hedge, (just a little), without opening a currency trading account. I have never invested in a currency EFT.
Agree. A few things that I have on a worksheet without the math are: Placing dollar values on the weak ISM report to future value (145 hours) of the EURUSD. I can say that there's several key banking players shorting the EURO. Trading motions at times are smoke screens for bankers that have clients (corporate) that are trying to move funds - international.
I guess it's sort of like you or me going to an airport currency exchange vending machine in Paris and then taking a fast flight to New York to cash in or vice- versa.
I have been trading the dollar on momentum against volume. Why: Because I'm betting on no taper as in non - farm (lower) and the budget mess causing certain economic domino effects. Retail and service numbers are important. But there's more: Debt has several faces including one's own debt and government debt, which both is in focus.
Banks are also up to this: I see gold making a move when banks finish with transferring funds for large corporate international clients. When? Not sure. I have a list of those clients (over 50) in which most also use a lot of silver and other industry metals. Boeing is the largest. Knowing a lot about how Boeing operates, including sales, can give one a strong understanding why the dollar is down - as well as silver/gold.
Also banks don't always care about the economy, but they want us to think so, so knowing what their financial money movement games are important.
I have been pounding this board for the last month and longer, saying that the dollar would drop. This is the first time since 2011 that the dollar has dropped for 4 straight weeks. We are now on week 5. The 52 (working week average) is between a rock and a soft place. The March/April lows and the July high is mostly meaningless. Much of that was to do with 'no taper'. We are dead center between trend line and channel support. Channel support is 10402. When we break channel support the game will just be the beginning for a multi-year decline. I had mentioned back several weeks that we would come up against channel support and then gold/silver would start to make a move. I caution that we aren't there yet.
Quail, Great posing about the dollar and other stuff. I agree with all of your remarks, and I also see one economic issue that will make gold/silver real currencies; AND, that is the destruction of the middle class and others just above or below this wealth mobility factor.
"I've only traded" should be I've mostly traded. This year - two day trades and four swing trades ( but had to cost average some older shares), besides purchasing shares last week.
Hi Arwen: I'm holding some EXK and a very small amount of PZG and will probably keep them for some time - at some point I wish to buy more EXK. Other than that, I've only traded currencies and futures in this related area. Longer term, me think that silver will do well. I have the flu or something, back to bed. Talk to you soon.
Just nice. Dollar continued down - a given. Budget mess means probably no taper. Silver down pure manipulation -surprised to the amount.
Northern Miner ---- "Mexico-focused newsletter writer Mike Kachanovsky argues that if the 7.5% mining tax is passed into law it will have a chilling effect across the board, but says he suspects that the government may have floated a high number first in order to gauge the reaction, and will probably settle on a lower number in the 2–3% range so that it appears that it is willing to compromise."
"He also makes the point that the government “isn’t stupid” and recognizes that some of the largest Mexican mining companies like Fresnillo (LSE-FRES, US-OTC: FNLPF), Grupo Mexico and Minera Frisco (a private company owned by telecoms billionaire Carlos Slim) are likely to push back against such a high rate." “Companies like Fresnillo and Grupo Mexico, they’re politically connected . . . they’re not going to allow a proposal that is so harmful to be accepted.”
The EURO 100-COT index is most bullish since May 2011. The USD isn't. Pivot points and oscillators represent a strong longer-term contrarian view. Sentiment indicators are starting to spell fear and an upward movement in silver will follow. Blend a Midnight song into your Midnight budget thoughts for laughs.
Midnight Rider by the Allman Brothers and Waylon Jennings
Midnight Caller by Badfinger
Midnight From The Inside Out by the Black Crowes
Midnight In Her Eyes by the Black Keys
The Midnight Special by CCR
Midnight Confession by the Grass Roots
Sister Midnight by Iggy Pop
After Midnight by J.J. Cale
Midnight Man by the James Gang
Midnight Moonlight by Jerry Garcia and David Grisman
Fire At Midnight by Jethro Tull
Burning Of The Midnight Lamp by the Jimi Hendrix Experience
Living After Midnight by Judas Priest
Midnight Special by Lead Belly
Lady Midnight by Leonard Cohen
Hamburger Midnight by Little Feat
Midnight Flight by Moxy
Midnight To Six Man by the Pretty Things
Midnight Fever by SRC
Midnight Lullaby by Tom Waits
Midnight by William Elliott Whitmore
In The Midnight Hour by Wilson Pickett
So it depends on the money transactions that big banks, cartel banks, Rothschild banks and central banks have in final (morning/daily) payment/receiving processing to determine currency and gold movement. Interest rate setting is the arm and can be seen in T's and Chicago futures.
The members of the British Bankers' Association forward their current rates every business day before 11 a.m London time. Just in concert with gold/silver. Overnight rate settlements determine the dollar and gold. The banking cartel sets LIBOR primarily to govern interbank lending rates, which is an overnight rate. The prime rate doesn’t play a regulatory role. Rather, it is the best deal available to the largest corporate and institutional customers of American banks. Changes in either rate can have enormous impact on opening gold prices, based on the transfers of money for real estate transactions or M&A. Trade isn't always primary. These are the LIBOR rates that change daily. Libor is actually a collection of rates for 10 currencies. Banks around the world borrow from each other at the Libor, and many consumer and commercial loans are derived from Libor plus a spread. So it's all fixed as in fixed or rigged. It's like a seesaw from day to day between all interest related transactions and currencies. It made to be that way. Getting to be a favorite saying - scratch my back today and I will scratch yours' tomorrow.
Hi Quail. I agree Mensch as your thoughts (China) was once one of my main posting thesis. There is news today about China and African mining, but for now, there isn't a strong driver in favor of previous metals. The strongest moves are set by manipulation and day trading. I do think we can hit higher on an intermediate, short-term basis more so based on internals.
Major advertisers with both ad and media commercials have admitted to only targeting the poor on assistance or the rich. This is the way our politicians want it. The middle class is not a mobility class like the other two classes; and that's the problem. That is what will eventually destroy the United States.
I decided to take another position which would be beyond a core. If I need to cost average, I will have cash placed aside. Reasoning isn't totally based on a manipulate dollar, but based on the coming together of several events. Some are: Earnings guidance for 2014, timed to a budget agreement. It doesn't matter as to the outcome of the budget talks, as to just an agreement. For now, this is just another yearly budget circus. Margin use (futures) has started to increase a bit today. Of course these events are short term - as we all know that longer term results will wipe out the middle class. Add Asian commodity exchanges backing gold as in physical holdings. China will have more control and this scares the bullion banks and places the Fed between two hard rocks.
They did buy enough shares to own us 25 times in the last few years, but they keep changing their minds and selling those shares. Maybe to buy shrimp.
"Sometimes I guess there just aren't enough rocks.
And that's all I have to say about that" .