I have my eggs ready josjes.Previous resistance of 952/3 will turn as strong support. Why the support is so strong? Because it was passed with ease. IMO, last night/today was the last buy at US$960-970 before it reaches 1000.
Gold is not going to put in a lower low and gold is not going to go away in May (or July or August for that matter). What gold is going to do is rally. Last Thursday and Friday’s break out to the upside left what was strong resistance at 945 in the dust and will challenge the 999.40 resistance without any significant setbacks.
IMHO gold will reach a minimum price target of $1200 with no more than 8% correction reaction.
DYODD
Author: Dan Norcini
Dear Friends,
You can almost set your watch by the completely expected parade of talking heads which graced our ears and eyes this morning. The reason for the “sudden appearances” of Paulson and Plosser are obvious. The Dollar made its LOWEST CLOSE in two months in yesterday’s session and was sitting barely a half a cent above an ALL TIME LOW in the USDX chart. Having no other weapon in their bag of recent tricks to support it, they resorted once again to the tried and not-so-true method of currency manipulation, aka, verbal intervention. What a tragic scene to witness – the world’s premiere superpower resorting to spin to prop up Humpty Dumpty.
I cant, a bit wild that one and apologise
In fact the gold standard used to keep gold prices fairly stable. There was a bit of a jump around 1936 from $US20 to $35 where it was then held in check by US Government Regulation.
The decoupling of gold from currrency created the conditions on which gold could rise from that $35 to the $800 peak in 1980.
My contention is (and this should be on the gold thread) that this situation is repeating and the ratio says to me that it will go very high indeed this time.
Gold turned down overnight, the following from Jim Sinclair's blog says it well.
Author: Dan Norcini
Dear Friends,
You can almost set your watch by the completely expected parade of talking heads which graced our ears and eyes this morning. The reason for the “sudden appearances” of Paulson and Plosser are obvious. The Dollar made its LOWEST CLOSE in two months in yesterday’s session and was sitting barely a half a cent above an ALL TIME LOW in the USDX chart. Having no other weapon in their bag of recent tricks to support it, they resorted once again to the tried and not-so-true method of currency manipulation, aka, verbal intervention. What a tragic scene to witness – the world’s premiere superpower resorting to spin to prop up Humpty Dumpty.
David Hirst, back page of Business Age well worth a read also. I think it can be accessed on line later in the morning.
The bigger days for gold are getter ever so much closer now.
The chart doesn't show up on screen for me in prof's post two posts back - is that just me or is there something wrong with the link?
The chart doesn't show up on screen for me in prof's post two posts back - is that just me or is there something wrong with the link?
Yeah same here. I just got the little icon with the X on it.
What format was your chart in the first post, prof?
Yep.Did the chart in the second post show up for everyone else?
Gotta love the enthusiasm there. What else would this guy expect Paulson to do? It's his job to try and communicate what the govt/fed are trying to achieve.
Considering the state of the US dollar right now, he wasn't exactly going to show up and talk the dollar down was he?
US govt trying to acheive a strong dollar???? Running massive trade, current account and budget deficits, and then monetising every insolvent financial entity from the Treasury?? Or the US monetary authorities lying again?
Explod, you constantly make comments about the talking heads on CNBC and other mainstream journo's talking the stockmarket up and leading the lambs to the slaughter(or something like that). This is pretty well the exact same type of spin, but aimed at gold bugs
Sorry but you can't compare the two, they are poles apart. All the spin 2-3 months ago about the worst of the credit crisis being over, The Bear Stearns collapse behind closed doors, while saying everything is dandy in the week leading up, the Fannie and Freddie collapse while denying their insolvency, the whole lead-up, and denying the size of the bailout after the collapse.
One is purposeful deception, lies, fraud, cover-ups, manipulation, etc. vs another side saying with conviction and honest belief that gold is going up as a result of all currency and monetary shenanigans.
Did the chart in the second post show up for everyone else?
RS, not sure about the merit of these comparisons without comparing the cost of living between those times and now.Also historically, a day's wage used to be a silver dime, a silver quarter, or maybe a silver dollar. 2000 years ago in Rome, a silver denarius was a day's wage, and that coin was about the size of a silver dime, too. Even as recently as 100 years ago, a silver dime was a day's wage. A silver dime today costs about 50 cents, at $7.20/oz. for silver. Since a day's wage today is say $150 you can see silver is way undervlaued to its historical value and similarly gold would be.
Likewise, Judas betrays Jesus for 30 pieces of silver and buys a field just outside Jerusalem with the money. How much is a field just outside town worth today? Again, silver and gold historically were worth much more than they are now, or stated differently, they are very undervalued at present.
RS, not sure about the merit of these comparisons without comparing the cost of living between those times and now.
Might be a little more today.
It compares the price of silver (and x15 implicitly gold) to real world things like a day's labour and a field.
It shows that 2000 years ago, silver and gold bought a lot more than they do today, or, that they are not at similar buying power prices to what they have been historically.
The 600 silver chart likewise is miles apart from professor finks chart.
So the question that flows on from this is why? Why would people perceive something to be a store of value when it has been steadily losing value for the entire modern history of mankind?
That chart I posted came from http://www.chartsrus.com/, which also had the chart you just posted up there, so I can only imagine that they've come from the same source:dunno:
If we use the silver chart you posted and assume the gold/silver ratio is accurate to estimate where gold should have been, it further highlights the point I was making earlier about gold not being a very good store of value.
So the question that flows on from this is why? Why would people perceive something to be a store of value when it has been steadily losing value for the entire modern history of mankind?
Well I see it another way and this is just one example of my thinking. In 1934 when my Dad was a lad he could buy a meat pie for threepence (2.5cents) Today it costs $3. so in 70 years a pie has gone up more than 1,000 times. Gold has only gone up about 38 times.
So what is losing value, I say the paper money because it is taking more and more of them. And eventually if this rate keeps up there wont be anough dollars in existence to buy all the gold. Or oil, silver, and a pie.
As I said in a recent previous post here, it took a barrow full in Germany to buy a pie in 1924.
You can tell I used to love pies, my Doc wont' let me now.
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