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Perception is everything I guess. Even though gold has outperformed just about every asset class on the planet the last two years - the perception is that it is torturous. Why? Because 73% of the time it is down, 19 of 26 months. Hard to believe.
Unfortunately, IMO Murphy is losing subscribers because of the juniors. Add the action in the juniors to gold declining 73% of the time and you’ve got a sector that almost always makes you feel like crap. JMHO.
“Here’s to a lower price of gold for another buying opportunity.” I needed that tonight, thank you Equisetum.
I have a new saying that I just thought of- If you’re pizzed, buy more fizz (physical). hehe
The XAU lost 7.11 to 185.04 and the HUI was beaten up for 13.49 to drop to 432.50.
Today had the early potential to be one of the most constructive days for the price of gold in a very long time. The Gold Cartel knew it, and along with the PPT and the rest of the market managers in the US Government, went into action … to turn it into one of the most demoralizing days in some time. From a very knowledgeable fellow Café member…
“And what have I done to deserve this despicable torture? At what point do we admit that this sector is doomed?”
Which led to my Café Sentiment Indicator, which remains dreadful, and an indication that more and more veteran gold/silver investors are losing interest in our sector and giving up…
Hi Bill,
I was thinking about this indicator and your comment about price action makes market commentary came to mind. So lets look at price action.
From the Gold high in May, 2006 we went through a 15 month long correction until August, 2007. Followed by a 7 month rise to March 2008, then another 4 month correction to now.
So out of the last 26 months we have been in corrective mode for 19 months. 19 out of the last 26 months or 73% of the time Gold has been manhandled.
It is hard to get excited about an investment under these conditions.
Joe M.
Jax, Fl.
And fewer and fewer are Joe … except the BIGGEST money of all. They realize what is going on here. Enough of them are looking at these Gold Cartel induced tank jobs as an opportunity to acquire cheap gold, silver too, and they are doing so … which is why we keep going right back up of late.
Think about it. What changed from last night to this morning to this afternoon in terms of the fundamental scenario for US financial markets, real estate markets, and our dollar? NOTHING, except for humongous market intervention by the US Government, one ordered by General Paulson & Co. This sort of intervention, without corresponding action, can only last a few days or weeks, until the real fundamentals assert themselves once more.
The Fed and Treasury have been in a panic for a long time now, and remain in one. They know they are only a few headlined pictures away from a full scale public banking panic. Example of how serious this issue is … from Bullish Bob Bagley this morning:
The gas station attendant where i buy gas this morning remarked to me out of the clear blue…
“I hear banks are not a very safe place to leave your money!”
This guy does not know I am a broker.
***
It wouldn’t, or won’t, take much more to effect a serious run on our banks. The ubiquitous Paulson is everywhere these days to shore up confidence. He is on the tube so much it is as if they are afraid of not having him show up for a day. He didn’t bring in his sidekick from Goldman Sachs because “Everything was fine.” That is for sure. Everything is really that BAD.
Which is WHY this is no time to abandon ship, regardless of how dispiriting the short term situation is. While a bummer, this is no surprise. As I, and many in the GATA camp, have maintained for years, gold will only fly when The Gold Cartel is overpowered. It is THE key to the gold market. While other factors are critical in stimulating demand, which will be key to winning the day, they are mostly noise compared to the defeat of The Gold Cartel and allies.
The bad news is we have a “today.” The good news is the bums are sucking wind. They are desperate. It won’t be long before market events, ones which THEY have caused, will be too enormous, and catastrophic, for them to handle, leading to extremely adverse market consequences.
This is when gold and silver become the GO TO investments around the world and The Gold Cartel becomes dead meat.
GATA BE IN IT TO WIN IT!
MIDAS
anyone know what happened to platinum. its up $24. in thin trade tonight.
rno
tomorrow, and therefore the price of gold too, since Dolly is not expected to be a big impact, except in the Brownsville area. I’ll sure be glad when hurricane season is over so I will be able once again to more easily forecast where the price of gold is going the next day. It’s so hard to decide when to buy more physical silver and gold when fickle hurricanes get into the pricing formulae. Here’s to a lower price of gold for another buying opportunity. Equiz.
Just point out your catalytic converter………………….it’s insured.
Hi Bill:
Some folks might have a bit of trouble putting Wachovia’s $8.86Billion QUARTERLY loss in perspective.
Wachovia loses $8.86Billion, slashes jobs
uk.reuters.com/article/bondsNews/idUKWNAB160920080722
Greenwich Connecticut claims $430,000 average wealth for its 61,000 residents.
en.wikipedia.org/wiki/Greenwich,_Connecticut#Wealth
Divide that average wealth into $8.86B and that is equivalent to bankrupting 20,604 residents in one 90-day period.
That is, one-third of Greenwich’s population could have been forced to the soup kitchens.
At $950 per ounce of gold, Wachovia’s loss was equivalent to 9,326,315 ounces, or 290 tonnes.
(Using LBMA 32,150 oz per ton). www.lbma.org.uk/lon_weights.html
In 2007, Barrick Gold’s entire-year production was 8,056,000 ounces.
www.goldsheetlinks.com/ptable.htm
However one looks at it, that’s a hell of loss.
Edward Ulysses Cate
The safest place for me to be where that one is concerned is on the fence. None the less, I have been enjoying the discussion that has taken place the topic.
I took heed of PMFever’s note the other day that he chose not to discuss his physical holdings on a public forum. I just buy a bit when I can. best wishes. Equiz.
The promising momentum situation very early this morning (when it is composed) led The Gartman Letter to add a “unit” of $US gold to the two units of Eurogold it has been carrying since last week. (The latter survived: it has an E584 stop.) Some of gold’s friends will find this amusing. However the frequency with which this experienced and commercially-driven Trader keeps getting caught like this underlines the reliability with which circumstances which tempt a normal trader in the gold market to buy in fact seem to trigger massive selling. By whom?
…this idiot has been bopped by the Cretins more times than ment was bopped by the V
for the third time this popular class will be given to new/and a refresher for students of economics ..with a emphasis on present deflation
due to higher costs the class fee will be marked up an additional $100
123 deflation
flash .. prices suddenly collapsed in a spurt of hidden savings, milk, eggs, insurance costs, utilities, were the hot topic of conversation.. as consumers reported their paycheck going further ..
some are even resorting to additional saving by hording the green paper .. as it is gaining value at an unheard of 2% of month..
wrigelys the giant gum maker will add three sticks to a pack while at the same time lowering prices a nickle.
and instead of the usual two twinkies to the pack.. now three will be packed with a 20% reduction in price..
tacos now three for a dollar
….this Set of charts is OVERLOOKED…is right here on the sidebar in the Charts Section under Jr Metal and Energy Stocks…..these indices are compiled by Smartinvestor….Daily and Weekly…..Everybody have a look….you too winedoc…did you know there was a junior uranium Index ?
