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brian0918
Penny Collector Member
USA
315 Posts |
 Posted - 07/01/2010 : 11:22:11
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Thanks to a You must be logged in to see this link., they're selling their most liquid assets (gold, silver, USD, commodities) to get cash (which is You must be logged in to see this link. in this case). So now we have a gold/silver bargain on our hands!
Of course, one of the reasons gold and silver has been made so liquid is due to GLD, SLV, and other ETFs. That would not be a bad thing except for the fact that many of these ETFs are definitely leveraging - selling the same bar of gold to multiple people - and thus driving down the price of gold.
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"The man who speaks to you of sacrifice, speaks of slaves and masters. And intends to be the master." -- Ayn Rand
Searched: $2230 Nickels; Liberty: 1; Buffalo: 4; War: 20; 2009: 2; 2010D: 8 |
Edited by - brian0918 on 07/01/2010 11:30:55 |
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brian0918
Penny Collector Member
USA
315 Posts |
Posted - 07/01/2010 : 11:33:09
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My favorite comment from Zero Hedge, explaining what's happening:
quote:
During a liquidity crises people sell their most liquid and profitable assets to pay debt/margin calls/cover losses in less liquid and positions.
This is normal. The markets are infact acting quite efficiently right now.
It ultimately creates a buying oppourtunity as pretty much everything gets sold with reckless abandon.
This is a panic. To survive: don't panic.
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"The man who speaks to you of sacrifice, speaks of slaves and masters. And intends to be the master." -- Ayn Rand
Searched: $2230 Nickels; Liberty: 1; Buffalo: 4; War: 20; 2009: 2; 2010D: 8 |
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brian0918
Penny Collector Member
USA
315 Posts |
Posted - 07/01/2010 : 11:40:14
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| There is some debate as to whether this is being caused by a liquidity crisis in the banks, or short-covering as the Euro rises. Either way, it means gold is on sale, as people who bought gold need to give it up in order to buy the Euro - for whatever reason. |
"The man who speaks to you of sacrifice, speaks of slaves and masters. And intends to be the master." -- Ayn Rand
Searched: $2230 Nickels; Liberty: 1; Buffalo: 4; War: 20; 2009: 2; 2010D: 8 |
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
 Posted - 07/01/2010 : 12:55:59
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the liquidity crisis may in part explain today's action, but it wouldn't surprize me to find out that naked shorting helped it along. The bullion banks like to exacerbate the downtrends, compounding them with massive shorting when it can't be easily identified.  |
Hoard now and hold on!
http://coppermillions.blogspot.com/
http://wherewillyoubein2012.blogspot.com/ |
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Country
1000+ Penny Miser Member
USA
3121 Posts |
Posted - 07/01/2010 : 13:34:39
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The GOLD selloff is a massive GOLD Long/Euro Short position being liquidated today. Why today? Liquidation of a trade is usually because someone needs/wants to take profits. I would guess some sort of new trade will be set up after the July 4 holiday.
BUY some GOLD today - it's on sale!! And, unlike the stock market, GOLD is in a BULL market. Buy the dips....  |
---> Come to the new and improved realcent: http://realcent.org
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
– Theodore Roosevelt
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
Posted - 07/01/2010 : 14:20:46
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i'm a little puzzled by this takedown.
options and futures expire around the end of the month. at the end of may, gold was around 1250 and taken suddenly below 1200 just before options expiration. this is a recurring pattern.
if the ptb were going to take it down, one would have expected them to do it last week. maybe the waited for everyone to reload and go long at 1250+ and have now taken it down to flush the leveraged longs and make a quick buck. |
Buying:
Peace/Morgan G+ at $15.00
copper cents at 1.3X
wheat pennies at 3X
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
Posted - 07/01/2010 : 14:25:20
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If they can hammer sentiment to the point of negativity regarding precious metals prospects, the pricing action of today will rebound, but much more slowly due to caution of those burned. JPMorgan knows where the hedge fund stops are, and if they can trigger stop-loss selling than it shakes those groups out of their positions, and will make them think twice about re-entering.  |
Hoard now and hold on!
http://coppermillions.blogspot.com/
http://wherewillyoubein2012.blogspot.com/ |
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brian0918
Penny Collector Member
USA
315 Posts |
Posted - 07/01/2010 : 14:26:46
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quote:
Originally posted by Lemon Thrower
i'm a little puzzled by this takedown.
It should be expected. Gold short positions hit an You must be logged in to see this link. recently. The drop may be a combination of liquidation and short covering, with the former escalating the latter. |
"The man who speaks to you of sacrifice, speaks of slaves and masters. And intends to be the master." -- Ayn Rand
Searched: $2230 Nickels; Liberty: 1; Buffalo: 4; War: 20; 2009: 2; 2010D: 8 |
Edited by - brian0918 on 07/01/2010 14:28:13 |
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
Posted - 07/01/2010 : 14:29:00
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plus... alot of traders rely on charts to base their decisions upon. Today's action was a downside penetration of alleged support, so rather than expecting a breakout, now those sidelined will just wait patiently for further bottoming. If TPTB can ruin the technicals, no one can rely upon them to make tactical decisions.  |
Hoard now and hold on!
http://coppermillions.blogspot.com/
http://wherewillyoubein2012.blogspot.com/ |
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
Posted - 07/01/2010 : 14:54:48
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| brian and beauandros, i agree but i guess i'm puzzled by the timing. the can kill 2 birds with 1 stone if they have brought the price down a week ago. |
Buying:
Peace/Morgan G+ at $15.00
copper cents at 1.3X
wheat pennies at 3X
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
Posted - 07/01/2010 : 18:17:05
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quote:
Originally posted by Lemon Thrower
brian and beauandros, i agree but i guess i'm puzzled by the timing. the can kill 2 birds with 1 stone if they have brought the price down a week ago.
Don't kid yourself, they tried... but there was too much strength for them to overcome. Once in a great while, the little guys win  |
Hoard now and hold on!
http://coppermillions.blogspot.com/
http://wherewillyoubein2012.blogspot.com/ |
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Gold/silver on sale!
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