Well, honesty gives me to admit I am less than flat broke, fwtw.
Posted on 11/16/2010 8:40:33 AM PST by WebFocus
UGLY.
That's the only way to describe the scene in the commodity world today, as a dismal night in China, and a strengthening greenback continue to make the speculative froth go away.
A few notable moves, via FinViz:
Silver is off 3.5%
Soybean Oil is off over 4%
Wheat is off over 2%
Coffee is off over 3.6%
Here's the key thing to know... prior to the big selloff that started Friday, speculators were universally positioned to be long these commodities (and short the dollar), and so there wasn't much direction for this to go, and not surprisingly, the selling is furious.
(Excerpt) Read more at businessinsider.com ...
I was going to buy gold and silver a few weeks ago and then I found about QE2 which caused the price to go up. So I decided to wait a while and let this minor bubble burst. Looks like I did good.
>>In the end, if we keep printing money we will have more dollars chasing the commodities. That will force the price up again.<<
Yes, but in the meantime, if the government prints a trillion and two trillion evaporates via the credit meltdown, we are still in deflation. I have the sneaking suspicion that the government would have to print ten or twenty trillion in the next couple years to compensate for the deflation. And once they do “catch up”, they will have sown the seeds of hyperinflation. I just don’t see any painless way out of this.
>>It will retrace some more. Then it will go up.<<
We are on exactly the same page here.
Were you riding in a boat when you thought that bit iw wisdom up?
Buying opportunity at Ag $17 and Au $1080 ..... that’s what I’m pulling for. China and SKorea raised interest rates. This did some of the damage to commodities and PMs. Forget the QE2 “inflation trade”. We are now in the “deflation trade” for the last few days. Lets see how long it lasts
Plus how much QE2 will actually take place??? Pressure and protests are mounting aging this idiocy. Sarah Palin protested it first then it was picked up. More Republicans coming into office just might help stifle QE2. Ef the Federal Reserve. No one likes these traitors who sat on their collective butts while Banksters/Wall Street went wild (2001-2008) and are still going wild
Buying opportunity at Ag $17 and Au $1080 ..... that’s what I’m pulling for. China and SKorea raised interest rates. This did some of the damage to commodities and PMs. Forget the QE2 “inflation trade”. We are now in the “deflation trade” for the last few days. Lets see how long it lasts
Plus how much QE2 will actually take place??? Pressure and protests are mounting against this idiocy. Sarah Palin protested it first then it was picked up. More Republicans coming into office just might help stifle QE2. Ef the Federal Reserve. No one likes these traitors who sat on their collective butts while Banksters/Wall Street went wild (2001-2008) and are still going wild
No I was talking to a Canadian friend twenty years ago about Oil Royalty Trusts and we got sidetracked into talking about the Bay of Fundy and the real estate market, and this was a paraphrase of his closing remarks.
Did he add Grasshopper to the end of it?
My family has farmed in this county in TX since the mid 1880’s. We are producers, not speculators. In fact I hate what the commodities traders do to the markets. They don’t want to take physical posession of the commodity, only own it.
It is one thing to trade non-perishable commodities, but quite another to trade perishable items.
This area has historically grown cotton, wheat, maize, sesame and peanuts. Although you can produce most other crops. And we raise cattle.
The big issue with Ag products is physical location. Most of the items are freight intensive. When the area was “settled”, after the railroads came in during the early 1900’s, the transportation problem had a huge reduction. Now almost all the railroads have been taken out (maintainance cost issues). It is all trucked to market.
We will always be capable of feeding ourselves, I plan a bigger garden next year but do not plan to produce all we eat. But we could.
I am glad I do not live in a North Eastern city or in a California metro area.
FWIW I didn’t take his advice to heart at the time, and ended up with less. I was investing per a pre-Glen Beck disasterism, in an economic collapse and also speculating in options. My philosophy today is wholly different.
I want more physical Silver myself even with the nonsense going on detailed below the way I look at it is good if this brings down prices a bit in the short run I’ll get some for the long run.
CME Raises Gold Futures Margins By 6%, Hikes Silver Margins For Second Time In Under A Week
Crash JP Morgan Buy Silver – Growing Economic Guerrilla War to Crash Bank With Silver Bullets
http://www.rightpundits.com/?p=7681
As Freeper Cicero pointed out...
“I think those margin increases are favors from the Comex traders to JPMorgan and others who are holding huge naked shorts in gold and/or silver. They’re trying to knock prices down as a favor to their pals.
I figure that will only result in a small correction into the first week of December, probably.
As the Hunt Brothers discovered in 1980, the rules are changed, if necessary, to favor the insiders.”
Is that you Chance the Sailor?
Well, honesty gives me to admit I am less than flat broke, fwtw.
“In five days gold’s dropped about 10%.”
Yep. I called it a few weeks ago and people told me I was full of carp (intentionally misspelled). I can’t wait to see all those who were willing to throw Milton Friedman under the austrian bus squirming through their losses.
Sold my GLD 2 months ago.
The market is stabilizing...not recovering yet, but stabilizing...gold is done imo.
“you can’t have a hyperinflation on a gold standard”
Sure you can, it just is not as likely. Suppose someone actually can turn lead into gold.
Additionally, that wasn’t my statement. I was responding to the fact that a 10% drop in gold prices would cause price inflation on a gold standard and I think you know that. Ever read much about Jay Gould? Believe me, people like him are still around.
If you believe that then you've bought gold futures, otherwise you're just chatting. Here are the facts: rbmillerjr took profits on gold, nobody ever went broke taking a profit, and lots of people have gone broke 'knowing' a price was going up when it didn't.
Yeah, gold is going up forever.
You will wake up one morning and your gold will be down 300 bucks and that will just be the start of the spiral. You’ll want to buy it cheap.
Have fun...I buy and sell in the middle long and short...you have fun trying to guess the bottoms and tops rookie.
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