Trembling Hand
Can be found on the bid
- Joined
- 10 June 2007
- Posts
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- 205
Must be time again to short gold.
Lets call it short at 857 stop at 867.
Lets call it short at 857 stop at 867.
Must be time again to short gold.
Lets call it short at 857 stop at 867.
Trembling Hand said:Must be time again to short gold.
Lets call it short at 857 stop at 867.
Anyone who reads the written works of our Fed Chairman will know that Bernanke's long term plan involves devaluing the dollar against gold. This is the exact opposite of the position of most prior chairmen. He has overtly stated his intentions toward gold, many times, in various articles, speeches and treatises written before he became Fed Chairman. He often extols the virtues of F D Roosevelt's gold revaluation/dollar devaluation back in 1934, and credits it with saving the nation from the Great Depression. According to Bernanke, devaluation of the dollar against gold was so effective in stimulating economic activity that the stock market rose sharply in 1934, immediately thereafter. That is something that the Fed wants to see happen again."
It is only a matter of time before gold is allowed to rise to its natural level. Assuming that about one half of the recent increase in Federal Reserve credit is neutralized, the monetized value of gold should be allowed to rise to between $7,500 and $9,000 per ounce as the world goes back to some type of a gold standard. In the nearer term, gold will rise to about $2,000 per ounce as the Fed abandons its hopeless campaign to support Comex short sellers in favor of saving the other, more productive, functions of various banks and insurers.
Revaluation of gold, and a return to a gold standard, is the only way that hyperinflation can be avoided while large numbers of paper currency units are released into the economy. This is because most of the rise in prices can be filtered into gold. As the asset value of gold rises, it will soak up excess dollars, euros, pounds, etc, while the appearance of an increased number of currency units will stimulate investor psychology; and lending and economic output will increase all over the world. Ben Bernanke and the other members of the FOMC Committee must know this, because it is basic economics.
What if there are calls for delivery and nobody, or very few, who are interested in selling you back the 'pretend' gold you sold?
What if the long fut were asked to take delivery?
They can cash settle,
shall I say any more.
From the Asia Times today, well worth checking out IMVHO
Opening paragraphs answer a lot of questions on backwardation also.
Article titled "Gold fever sets in" by Ankel Fekete
cheers explod - interesting article - I'd seen part of it reproduced in another column, but not read all of it.
'A break above the green line and we are off'... after extending my ESP and 'L' plate EW last night, I'm also still leaning to the northern trajectory in the short to med term... but if my count is right, or at least partly right, the little diag triangle suggests a max of 871 for leg v of 1.
But that would be ok... wave 2 retrace a little before 3 attacks the high again.
Like I've said elsewhere here MRC, inflation although obviously eventually a concern, in the short term, gold is purely a currency destruction play... and that is it really...
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