Gold Just Tanked, Silver Tanked, And Oil Is Sliding

TBI ^ | 11-28-2012 | Joe Weisenthal

[Sam Gamgee]

My thoughts exactly. Nothing new under the sun. Not the first time gold has had a $20 to $40 in price.

[Sam Gamgee]

Likely it was a hedge fund sell. One of the reasons I hate the SOBs at hedge funds. They add nothing to the market and only contribute needless volatility. They are run by followers, not leaders, who consistently under perform the market.

I am going for the 2 for 1 DOW to GOLD ratio. So if you think we are going deflationary and see the DOW at 6000 that puts gold's top at 3000.

[Sam Gamgee]

As long as we continue to see:

1) Negative real rates of interest return
2) Money supply growth
3) Price inflation (food stuffs)
4) Monetization of debt
5) Flatlining gold production
6) Real estate falling
7) Evidence of stagflation

I will continue to hold gold.

My only concerns are:

1) Jewelry demand
2) Improved oil to gold ratio
3) US dollar strength

Those 3 items may simply temper how fast and how much I invest in gold.

[Sam Gamgee]

Is it not true that the COMEX keeps changing to rules to favor gold shorts at the expense of gold longs? They keep forcing longs to cut their margin for example.

[Sam Gamgee]

It does make you wonder though. If Barrick Gold, for example, is such a gold believer, why don't they hold off on selling all the gold they mine right now, and wait until the price hits $2000 to sell it? Or in the least, have a trading desk set up that times the market to only sell gold on the top of overbought waves?

[ctdonath2]

The problem: turning gold into necessities is very hard when SHTF.
Make sure you are functionally self sufficient (food, tools, land, arms) before investing remaining wealth in dysfunctional holdings.

[Sam Gamgee]

Will the SHTF or will we just have the long slide to oblivion like Spain?

I am Canadian BTW, so gold is actually less attractive to me as the movement in price is always tempered by a strengthening in the Canadian dollar vs the US dollar.

Haven’t you heard, we are not allowed to own weapons here in the Great White North?

[onyx]

Nov. 27 Comex December gold options expiry
Nov. 27 Comex December silver options expiry
Nov. 27 Comex December copper options expiry
Nov. 28 Comex December miNY gold futures last trading day
Nov. 28 Comex November copper futures last trading day
Nov. 28 Comex December E-mini copper futures last trading day
Nov. 28 Comex December miNY silver futures last trading day
Nov. 30 Comex December gold futures first notice day
Nov. 30 Comex December silver futures first notice day
Nov. 30 Comex December copper futures first notice day
Nov. 30 Nymex December palladium futures first notice day

[Mad Dawgg]

"Haven’t you heard, we are not allowed to own weapons here in the Great White North?"

Wow I bet hunting Elk is a bitch then. What do you guys use for such, Harsh Language?

[Sam Gamgee]

I was half joking, only because Canada has somewhat of a anti-gun reputation. In fact, the authorities are very anti-gun here. People outside the cities are not.

[Atlas Sneezed]

If Barrick Gold, for example, is such a gold believer, why don’t they hold off on selling all the gold they mine right now, and wait until the price hits $2000 to sell it?

---

Because they’re in the MINING business, not the speculating business. They need to sell the gold to pay for the fuel, labor, and other extraction costs.

[Varsity Flight]

14-1B

[Sam Gamgee]

Yes, that makes sense, but it still seems more prudent to run expenses on a loan for a few months in order to get a better price on their product.

[TruthWillWin]

Improving US economy? Hard to believe that.

[ctdonath2]

SHTF.
Spain et al have a history of robust black markets, and a government not so entwined in daily life. Not so here, where all is so intertwined - at least in the “lower 48” - and will, with great momentum, pull down the system in short order as it almost has more than once.

I’m married to a Canadian, so any discussions of fiscal cliffs and SHTF are met with “so lets move to Canada!”

Oh, and you’re well armed. There’s a reason the long gun registry was dumped.

[Sam Gamgee]

I use to think America more conservative than Canada, but with the passage of same sex marriage in some US states, and the fiscal path it is on, I'm not so sure anymore.

Still, Canada has no real free speech, we can't even DISCUSS healthcare reforms, and abortion is pretty much on demand.

In short there is nowhere to run, except maybe Taiwan?

My wife is American actually, and we have citizenship in the US for our 3 kids. I just hope it is worth something when they grow up!

[spaced]

“Soros.....”

I heard Morgan Stanley was behind the drop in silver. Probably paying off some political debts. The government has a vested interest in discouraging “the little people” from buying gold and silver; it forces them to use fiat money. Meanwhile, China keeps buying gold...

[foxfield]

Yup, first thing that came to mind was that fashion model who recently walked into the prop of a small plane.

Disassedher!

[gleeaikin]

Bought silver back in the mid 1990s for jewelry sales, around $4.00 an oz. Still have it :-)

[County Agent Hank Kimball]

"Because they’re in the MINING business, not the speculating business. They need to sell the gold to pay for the fuel, labor, and other extraction costs."

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It's a sad commentary on the present state of economics discussion that I got as excited as I did upon seeing such a simple, correct and logical statement as the one you just posted.

Hank