Gold & Silver sell off - can you make any sense out of this?

Gold has fallen 10% in the past week.
Silver more.......
Gold falls on Euro worries - Kitco
Its like a few months ago when the blonde bimbo announced on MSM gold is backed by nothing, the dollar is backed by the government......
You gotta laugh. WTF is that all about?
The Euro is all but finished
The dollar will go 2-3 weeks after the Euro
The banks have already got all our cash through mortgage defaults,CDS's and resulting Austerity measures.
Now the PM prices are being manipulated to initiate a panic sell off by the public so those same banks can clean up at basement prices before it all goes tits up when fiat burns and the PM prices soar.
Either that or somebody has perfected Alchemy and ATS is not the first to know about it.
Please no CERN jokes
I would say I am amazed, but honestly I have been expecting this.
what do you guys think about all of this?


PEACE,.
RK

Originally posted by Rigel Kent
Gold falls on Euro worries - Kitco
The Euro is all but finished
The dollar will go 2-3 weeks after the Euro

A lot of these questions are answered by knowing these trading guys dont look with long term vision.
They trade with questions about whats going to happen in the next day/hours.

Today, the USD (which is what gold is traded in) held its value, so there is no need to throw money at the emergency back up Gold... lets throw some at the USD instead.
Tomorrow, the rules will change again.

Edit - what that blonde said a few weeks ago about the dollar being backed by government so therefore better than gold is true... if you only look with blinkers at the next few days. Traders do... so therefore it IS true as far as they are concerned.

This was an interesting article and I thought this Gero made some sense.

Gero said gold's losses were accelerated as traders and fund managers had to trade the metal in for cash to cover losses elsewhere as bad headlines continued to mount. Stop losses -- in which traders automatically sell gold at a certain level to protect profits -- were also activated.

money.msn.com...

money.msn.com...

I will apologize in advance I have linking issues-

Personally, I think the MF Global fiasco has caused the market to back up and ponder whether there is enough physical gold in the market to cover all of the purchases that have been made to CYA against a currency/system collapse and, if there isn't enough, what are the ramifications of abandoning one fiat currency system for another fiat system which is far more unstable than the original, government backed system?

Unless you own AND HOLD IN YOUR OWN HANDS physical precious metals, you're playing a game of 3 card monte. I think the PTB allowed MF Global to implode, but didn't anticipate the magnitude of the impact fleecing investors in the process would have on the paper gold/silver markets.

reply to post by Rigel Kent

I agree ! How can gold and silver plummet, when they're one of the few assets that will have a value after a global market crash.....which seems to be hinged on the Euro zone failing first. I've got some and won't be selling off....seems like a panic is being created so the big guys can buy in cheap??

reply to post by conspiracytheoristIAM


Another main reason for them plummeting is that is the value of PAPER GLD not the physical. If you look into how they sell that stuff it is sold many times over for the same thing. This is is just like was said up top it is being sold by the big guys to cover losses they have. Once the presses start running at full tilt again it is going to sky rocket.

the suckers are being made fools of

From an Elliott Wave perspective we are in the midst of a wave 3 (of 5) of C (ABC) of a large Wave 4 correction (of SuperWave III). The target for this correction should be between 1265 and 1309 BUT I expect a false rally from the mid 1450 area first. The subsequent Wave 5:III to the upside should rally to 2750~ish and then a "crash" to about 1700 from there it should chop and mark time before we see the gold climb steadily to new highs (SuperWave V) and beyond in the years ahead. It is hard to predict where the ultimate high will be but most likely it will be a blow off top and collapse. The market is technical and when everyone gets loaded up on one side of the boat it has a tendency to flip over. Fundamentally many are expecting hyperinflation but are ignoring the deflationary aspects of this bi-polar economy. Sure the monetary base has exploded but most of that is in the form of debt creation not literal money printing like the Weimar Republic or Zimbabwe. During an economic decline debt is destroyed or restructed and that is what is happening net-net. Also the monetary inflationists forget to factor in the declining velocity of money into the equation. IF the 1225-65 level fails then the market can test a wide area between $1034 and $850 but I do not expect that to happen.

reply to post by alfa1

On some previous post in late Oct re the US Dollar (where the OP was anticipating an imminent collapse from the 75 area) I suggested that it had already bottomed and was headed for at least the 81 area...now that we are here I think that we can see 84 to 89 before a bigger correction. Ultimately we may see 100 on the USD (and may approach parity on the Euro as well). A stronger dollar is bearish for Gold, Silver and commodities in general.

Originally posted by Rigel Kent
Gold has fallen 10% in the past week.
Silver more.......
Gold falls on Euro worries - Kitco
Its like a few months ago when the blonde bimbo announced on MSM gold is backed by nothing, the dollar is backed by the government......
You gotta laugh. WTF is that all about?
The Euro is all but finished
The dollar will go 2-3 weeks after the Euro
The banks have already got all our cash through mortgage defaults,CDS's and resulting Austerity measures.
Now the PM prices are being manipulated to initiate a panic sell off by the public so those same banks can clean up at basement prices before it all goes tits up when fiat burns and the PM prices soar.
Either that or somebody has perfected Alchemy and ATS is not the first to know about it.
Please no CERN jokes

I would say I am amazed, but honestly I have been expecting this.

you generally cover the subject...

but, i earlier pointed out that it seems the EURO will fall to parity with the USD
while the price of gold retreats to $ € 1,440.00

its a combined inflation/deflation counter trend... in that the $ remains high & strong
while money printing is "on hold" in the USA and until Feb 2012 in the EU
(but the knowledge that the ECB will print some € 5 Trillion is why the EURO declines to $1 USD equivelent



after this -6 month program rolls out, & the EURO gets devalued, & gold reaches a stable price/value of 1440.00
then the USD starts to shove aside the EURO in favor of doing free swaps with Sterling...

see the USD will be both the global reserve currency...the petro-dollar AND will assume stature as the only currency that has enough trading/exchanging with about 90% of all the worlds economies and their underground economies and black-markets...

the USD also is the only legal medium of exchange for all the $700Trillion in 'derivatives' out there in the financial world...

also... the $35 Trillion of USD currency that is every-day circulating in the nations of the world, the arms markets of the world, the clandestine drug markets of the world...will gain a significant status & trust in these communities because only the $ can be exchanged freely and still retain a steady value within a certain range (despite the inflation from printing money out of thin air)...

bottom line-> the USD will remain the most trusted money on Earth because of the 10,000 nuclear devices that exist in the USA arsenal



this is only a brief overview or synopsis...i cannot imagine the real-time dynamics which will allow the dollar to excape the collapse which the Euro and other fiat currencies will face in the coming months/years


thanks

reply to post by alfa1


I agree that the traders essentially make the markets but what amazes me is that the markets can ignore the world financial situation to such an extent where tangible assets such as PMs suffer
I suspect that banks want to buy gold back on a large scale but its too expensive at the moment
The wealth shift from population to banks in the past 3 yrs has been incredible.
The banks are now fiat cash heavy
In the event of a cataclysmic event what is best........ fiat or gold?
Banks aint stupid.... people are.....
seems to me like they are gearing up,
10% loss in a week is big man

PEACE,
RK

I believe the big banks are working to supress the price of gold and silver. If you haven't seen the CME has lowered their margin requirements on oil futures. Part of what you are seeing is the short selling and the move into oil futures.

The other reason might be that the "paper" future contracts have been proven to be worthless after what MF Global did......

all of these markets are confidence or the lack of confidence markets..... the market is so over-extended that rational asset ratios are not even considered......

in my opinion, it's proof of market manipulation when both stocks and metals drop.
if you look at the history of it the usually go in opposite directions.

reply to post by Rigel Kent


It is because all the poor people are trying to get Christmas money, it is a false and very low drop imo for the holiday. It should have gone much further down this really does show how desperate the market is.

Originally posted by AuntB
This was an interesting article and I thought this Gero made some sense.

Gero said gold's losses were accelerated as traders and fund managers had to trade the metal in for cash to cover losses elsewhere as bad headlines continued to mount. Stop losses -- in which traders automatically sell gold at a certain level to protect profits -- were also activated.

money.msn.com...

money.msn.com...

I will apologize in advance I have linking issues-

I think you hit the nail on the head there buddy....

TRADERS

when I buy physical I have a 2.5% premium and when i sell it i have that too
we cannot trade gold like the big houses.
Some people think that the dollar is strong cos of the Euro weakness
have they not forgot about the 13 or so states which are already bust and nearly 10% of the population living in tent cities? interesting times we live in

PEACE,
RK

First of all if you go on ebay you can't get gold for 1550 or whatever it is at, it is more like 1800 so that is not an acurrate gold price, "where the world checks the gold price" yeah, how convenient, just what the globalists want a central command to "show" more like fix the gold price.

Secondly if it does go down, the media will act like the gold "bubble" is bursting but gold hasn't had a bubble pop in 5000 recorded years of history, so if prices go down a small bit that is when you should actually buy. You think gold would ever drop to 35 dollars an ounce. Ha, most people wish.

reply to post by burdman30ott6


Agree totally but my thread is assuming ownership of physical.
To be homest, I cannot see why anyone would buy an ETF.
In the wake of bank performances in the past 3 years, why would anyone trust a bank to hold their gold?
Its like bank safety deposit boxes, good on paper, but when the bank closes, you are f^^^d.
better a bird in the hand than 2 in the bush my freind,
still trying to make sense of this.
I just cannot see how gold can suffer so much against fiat in the current global financial state unless it is being manipulated by the big houses??

PEACE,
RK

reply to post by conspiracytheoristIAM


Agree totally mate,
Its like the big boys are shaking the tree to see what falls out.
cheap pickings for them
10% drop in a week is the worst we have seen in years
if it gets worse , i suspect a crash,
hope i can predict the bottom
Where is OBE1 when you need him LOL

PEACE,
RK

reply to post by St Udio


Awesome post man,
Im still trying to get my heaad round that, but i do see the sense in what you are saying.
I used to think the dollar was f^^^ed but now i see the Euro as the dollars bitch
fire power is everything.....
cheers,

PEACE,
RK

From another angle...we have rallied approx 7.5x the last major low. Central banks who were sellers at the low have been buyers towards the high (sign of at least a temporary top). The large presence of Gold ETFs and the use of leverage (options and futures) has created a situation where gold is being liquidated like stocks on margin. If the market repeats the experience of 2008 then we will see more liquidation of gold and silver to cash (liquidity).