Gold and Silver had their biggest drop in over 10 years = Deleverage

"I went in for a visit to my gold and silver dealer at Camino Coin in California yesterday. It was a very busy day at their office with phones ringing off the hook! I asked if there were more buyers or sellers on this crazy day with metals prices plunging. To my surprise the dealer said that almost all of the calls were buy orders! The ratio was something like 20:1 buy to sell orders! This is crazy! The price of silver and gold are plunging and the dealer has 20 buy orders for every sell order! The dealer has also stopped selling 100 oz. silver bars since they can’t get them anymore! I may have to settle for generic silver rounds or 10 oz. bars. They are also out of junk silver bags! This is nuts to say the least. The dealer says that almost no one is selling their silver or gold, they just keep buying! Camino Coin also said the wait time for 100 oz. silver bars was weeks to months before they stopped selling them. It looks like my retirement is postponed due to the metals and share price plunges but I feel secure with physical in my possession. We will persevere!"

From a member of LeMetropole Cafe.

___________

Lisa C.

www.dvds4delegates.com=Ron Paul, the 44th U.S. President

Join us at: www.campaignforliberty.com

Brought to you by: www.women4ronpaul.com

"Hi all,

All is well now. We once again have $800 gold, $14 silver, $5 corn, $113 crude. You may now go back to your normal activities. Sit down in front of the boob tube and watch all the exciting action. No, not the Olympics, the REAL action- the continuing financial wipeout. The entertainment includes many thrills, such as.....

Watching your 8 closest neighbors getting evicted by foreclosure.

Wagering whether the Fannie and Freddie collapse will add 1 trillion or 2 trillion to the public debt.

Further wagering whether GM, Ford, or Chrysler will be the first government-owned auto company.

ARM resets adding 10 million more foreclosures to the housing junk heap.

Another bank implosion.

Debating whether the new, expanded 10 trillion dollar debt ceiling will last until January.

Calculating all those zeros in the category of "notional value of all derivatives outstanding".

Unstable regions in the world further de-stabilizing.

Based on everything I have learned from cabal attacks the danger for the dollar right now must be red alert. This was a big, vicious metals takedown. It was well timed, in-your-face, and capitalizing on all of the cabal tricks. They really aren't even trying to hide interventions any longer. It's just smash-mouth corruption. I don't give a damn any more about technicals, all I need to know is the fundamentals. If all you knew about the metals were the fundamentals you'd swear there'd be no gold or silver available at ANY price.

Gold trash talkers like Gartman and Nadler should note how frequently trash talking can backfire. I'll bet the French men's 4X100 swimming relay team wish they had been a little less mouthy to Jason Lezak, Michael Phelps and company."

___________

Lisa C.

www.dvds4delegates.com=Ron Paul, the 44th U.S. President

Join us at: www.campaignforliberty.com

Brought to you by: www.women4ronpaul.com

Mike
"Fire Team for Freedom" and "Revolutionary Business"
visit www.mikeandjake.com

more articles by

Rick Ackerman

Gold's Stampede Into Bogus Paper

By Rick Ackerman
Aug 12 2008 10:34AM

www.rickackerman.com

Global markets continued to punish gold yesterday for the speculative excesses of crude oil, a mere commodity. With the dollar robustly on the rise in recent weeks, spurred in part by the prospect of a plunging energy-trade deficit, it’s easy to understand why investors would treat the dollar as money and gold as a commodity. Of course, they have it exactly wrong, as most of you will already know. How can we be certain of this? Well, for one, neither Paulson nor anyone else at Treasury can refute the following statement: The $20 bills in our wallets are fundamentally worth no more than the $1 bills. Indeed, and indisputably, if either bill has any value at all, it resides in the durability and ultra high-quality of the paper on which the various denominations have arbitrarily been printed. Too bad there is only one person in a position of leadership -- Ron Paul -- who understands this.

If we sound churlish over the thrashing that precious metals have received in recent weeks, it is not because it took us by surprise. In fact, Rick’s Picks has provided a series of downbeat forecasts for gold and silver all the way down, and there is yet one more querulous target to be achieved that lies beneath even the 824.50 nadir of yesterday’s insensate plunge. There is also to consider a worst-case fantasy target of sorts that we disseminated yesterday in the chat room: $654. It is based on the price of gold following crude oil all the way to the bottom of its presumptive bear market. We’ve repeatedly said that oil prices are not correcting but crashing, and this would imply they will be at least cut in half from the $148 peak recorded in mid-July. So what would $74 crude mean for gold? Well, if bullion were to continue falling 60% as steeply as oil, which is what it’s done since crude prices began their collapse nearly a month ago, it would imply a $654 low for gold.

'Strong' Dollar a Falsehood

But we don’t expect that to happen, not at all. More likely is that oil will fall well below $74 as the world slips into severe recession or depression; and gold will begin to resist its pull, acting more and more money-like as the revelation of the dollar’s fundamental worthlessness spreads to every corner of the world where dollars are held as reserves. For now, though, gold bugs need to recognize that as overdone as the selling of precious metals has become, and as detached from reality as those who have been doing the selling evidently are, the fleeting illusion of a “strong” dollar is one that cannot possibly endure. In the meantime, we have the modern-day tool of technical analysis to help us avoid serious financial injury even as we rub our eyes in disbelief. While this misguided trend runs its course, however, we should not even try to make sense of a world in which investors trip over each other to trade gold for paper.

Rick Ackerman

****

Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company.

Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary.

All Contents © 2008, Rick Ackerman. All Rights Reserved. www.rickackerman.com

Did you trade the 'biggest drop in 10 years'?

Gold August 2008
Qty Position Entry Current Difference Profit/Loss
10 Short 927 810.9 -116.1 +$116,100.00

http://www.gbemembers.com/webintro.php?view=wmv

"PunJab! Bring me my checkbook!"

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All the others were up as well.

People know what's coming.

___________

Lisa C.

www.dvds4delegates.com=Ron Paul, the 44th U.S. President

“Elections are short term efforts; revolutions are long term projects.”

--Ron Paul

Join the rEVOLution here: www.campaignforliberty.com

I thought it was all just Dr. Paul selling his gold and taking a profit.