Gold Blast Off Starts Friday- Patrick A. Heller
http://www.numismaster.com/ta/numis/Article.jsp?ad=article&A...
There are two significant events this week that could exert pressure for higher gold prices. Because of this, I expect to see major behind-the-scenes actions to try to suppress gold (and silver) prices until the middle of Thursday afternoon.
First, the U.S. government’s Treasury debt auctions will sell the greatest amount of debt ever sold in one week. The net debt increase of $153 billion is so high it will exceed the current authorized federal debt limit. Flooding the financial markets with so much debt is a sign of weakness for the U.S. dollar. As the dollars declines in value, the price of gold in U.S. dollars invariably rises.
Second, we will also see the expiration of options contracts in two days. If the spot price at the close of trading on the day that gold (and silver) options contracts expire is higher than the contract price on a call option, the owner will exercise the option to demand immediate delivery of physical gold. The higher the price of gold, the more call options that will be exercised. Conversely, a lower gold spot price will reduce the demand for gold for immediate delivery. There is a major block of call options at $1,050, so expect prices to stay below that level through Wednesday night.......much more at link:
http://www.numismaster.com/ta/numis/Article.jsp?ad=article&A...
Fair Use Doctrine of International Copyright Law ©
http://www4.law.cornell.edu/uscode/17/107.html
Gold always has a way of
Gold always has a way of responding to a government seeking to inflate its debt away....The repudiation of this government's debt began in earnest a few years ago and they are trying everything in their power to continue to prop up their institutions and their crony corporatism through inflation...it can only work so long, but eventually the house of cards crumble.
http://www.1776solution.blogspot.com
"The greatest danger to the State is independent intellectual criticism."
Murray N. Rothbard
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Why is it that options are
Why is it that options are supposed to expire on the third Friday of a month, but these October options expired on the fifth Friday (or Thursday)?
techticker vid today: The coming war a big driver of gold price.
This must be a new war versus all the wars we are now already involved in.
http://finance.yahoo.com/tech-ticker
I'm Impressed ! Mr. Heller Nailed It !
snip; "There are two significant events this week that could exert pressure for higher gold prices. Because of this, I expect to see major behind-the-scenes actions to try to suppress gold (and silver) prices until the middle of Thursday afternoon."
**********************************
At about 12:00 P.M. eastern time today Thursday afternoon, this chart shows the move upward started:
http://www.kitco.com/charts/livegold.html
beesting
Asteriks are Off The Chart Like Gold
Asteriks are off the chart like gold.
In my browser the above continuous asteriks are seen as one word so it kind of screws up my page.
If there were a space in the asteriks then the normal word wrap would take place.
Or I could upgrade from Mosaic 1.0 but I vowed not to until Ron Paul is Elected Pres.
amazingly accurate, silver
amazingly accurate, silver seems to be following suit.
http://www.kitco.com/charts/livesilver.html
which i'm glad of, cause I bought at 17.20
“One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors.” Plato
“One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors.” Plato
The intra trend dollar
The EURUSD had abruptly and forcefully been knocked from its brief $1.50 pedestal on Sunday night/Monday, presumably by the Central Banks. The 1.50 mark received much complaint and press attention in Europe.
Having dropped steadily through the week so far, it touched a bottom of
of 1.47 this morning, then saw its first rise all week, to 1.4828 (at this writing) in the aftermath of today's mixed US figures of an expanded GDP and worse than expected increased unemployment claims.
Still awaiting the results of the Treasury sales as noted in the OP.
Personal forecast, is for a (forced) resumed strengthening of the dollar to continue into next week.
Cheers,
G.
All metal are recovering today.
Metal Bid Ask
Gold $1,042.80 $1,043.80 up$12.30
Silver $16.58 $16.63 up $0.38
Platinum $1,322.90 $1,332.90 up $25.00
Palladium $321.70 $326.70 up $8.30
Updated:10/29/2009 11:00:01 AM CST
hmm it sure does look like they called it
hmm it sure does look like they called it...gold is back up to $1043 as i post this. either way i don't care all that much about the daily and weekly movements in price, im still pretty young and in it for the long haul.
i picked up a lot of physical gold back in 2007 & 2008, then stocked up on more during the major dips in 2009, i'm pretty good with gold for a while i think and probably won't be purchasing more for the time being. at this point i am just trying to stock up on silver, kinda got into that game a bit late (2009) but i bought it around the $12-$14 range so i'm still looking good. again, if you can't stomach the weekly or daily moves, this isn't for you, but it doesn't hurt to have an ounce or two of gold, or a couple of ounces of silver just for fun. overall even if gold dipped to $800 or lower (which i think is doubtful) it is still in a long term upward trend, and from my experience panic sell-off's tend to always be regrettable.
Gold & Silver for me isn't for profit, it is so I can give
something to my son one day that is a real store of wealth. I don't plan to sell any of it unless it becomes necessary to survive. It is to keep what I have and pass it on.
You hit the nail on the head. The long haul is what Gold & Silver is for. Not getting rich quick.
"What was taken from the boomers, it ain't there, what was taken from the X'ers it ain't there, what is being taken from their great, great, great squared grandchildren it ain't there. Some generation just has to have the guts to quit passing it on." Me
*May the only ones to touch your junk, be the ones you want to touch your junk.*
Looks like they are heading back up to $1050.00
I got a little more silver yesterday when it dipped down to $16.12. So far this article looks like it called it.
"What was taken from the boomers, it ain't there, what was taken from the X'ers it ain't there, what is being taken from their great, great, great squared grandchildren it ain't there. Some generation just has to have the guts to quit passing it on." Me
*May the only ones to touch your junk, be the ones you want to touch your junk.*
Yes, Timing Perfect
Nailed it.
How do they rig it?
There is a major block of call options at $1,050, so expect prices to stay below that level through Wednesday night.
Do the commercials short GLD in order to prevent the call options from being exercised? Are they doing this just to prevent the call option holders from taking physical possession?
No.
Physical Gold is traded on the futures markets almost 24 hours around the world during business hours. The price here is called the worlds "Spot" price of Gold.However, delivery is only taken about once a month, when it is taken.
http://www.kitco.com/charts/livegold.html
Traders are allowed to buy an option { or sell } at a certain price. They are bets on the future price of the commodity. { physical Gold }
http://en.wikipedia.org/wiki/Call_option
snip ; "Call options can be purchased on many financial instruments other than stock in a corporation. Options can be purchased on futures on interest rates, for example (see interest rate cap), and on commodities like gold or crude oil." end snip.
GLD is a company that buys and sells { Paper/Electronic } stock shares that are supposed to represent physical Gold held in storage, however some analysts claim the stored Gold is never audited, something like the Fed.
Very big buyers and sellers on futures markets can control prices.
Thanks for the question, I hope my answer helps.
beesting
Thanks for the reply beesting.
I'm still not getting the mechanism they use to suppress the price.
That may never be published until H.R. 1207 uncovers it.
The mechanism is the supply and demand of "Paper" Gold futures contracts on the world's Gold futures markets.
You must try to understand that it's estimated only about 5% of buyers of physical Gold take delivery of the Gold upon the contract expiration date.
95% of contracts are rolled over, { extended } payed for in dollars, or settled without physical Gold actually changing hands.
An organization called GATA has been uncovering hidden facts about Gold manipulation for many years now. Here is a recent blog:
http://www.gata.org/
From Merv Burak
http://news.goldseek.com/GoldSeek/1256533440.php
snip: "If we look at the daily chart we see that the price of gold started its move on the first of Sept. The open interest started its sharp rise at the same time. It had increased 132,129 contracts since the first of Sept. That’s 13,212,900 ounces of gold. At an average $1000 per ounce we’re now over the $13,000,000,000.00 mark of short sales
.
{beesting-- shorts or short sales means sellers of paper Gold futures contracts }
The total short interest is 516,832 contracts representing 51,683,200 ounces of gold which represents $54,841,043,000.00 worth of short sales at Friday’s closing price. WHO has that kind of money? And WHO has that amount of gold to short? Or are these just naked shorts with no gold behind it?"..... end snip.
beesting again, Only the Fed or the very top investment banks { J.P. Morgan, Goldman Sachs, HSBC, etc. etc. } would have that kind of money and a "Reason" to keep the price of Gold down.
The reason is, the U.S. dollar's worldwide value can be destroyed if all foreign holders of U.S. dollars decide to sell or replace their dollars for other assets.
The price of Gold worldwide gives an accurate indication of the "Value" of the U.S. dollar.
Thanks again for allowing this to be discussed here, and please pass it on to those that are fighting for the passage of H.R. 1207.
{Addition} All this is done with margin accounts, and only the biggest investment banks have sufficient assets to have margin accounts of this size:
http://en.wikipedia.org/wiki/Margin_(finance)
beesting
Does it get harder and
Does it get harder and harder to rig the market?
Not for the riggers as long as they make the rules.
...and have access to unlimted dollars.
Audit the fed to expose what's going on.
beesting
Good article.
Points to several matters regarding fear and manipulation. (Psycho-economic warfare).
I can see it now...Bernanke and Geithner are busy spray painting tungsten bars in preparation for the 1207 audit. If you notice what seems to be a plume of gold paint emanating from Fort Knox, that's just residue from the boys polishing their brass. Go back to grazing....
I hope so
I have given up hope of ever being exonerated in the eyes of those who decided I am crazy, but I could use the morale boost!
Truth exists, and it deserves to be cherished.
Thanks for Posting
Bump!
You're Very Welcome.
Mr Heller also mentions Ron Paul's H.R. 1207 in his article.
beesting
bump
.