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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: THE ANT who wrote (80228)	9/24/2011 11:42:52 PM
From: Hawkmoon	1 Recommendation Read Replies (1) \| Respond to of 218300

Klaser.. Don't get me wrong, TJ has been right in many of his moves on PMs. And, one day, he may be right again.. Might even be tomorrow, if the Fed announces QE3 on top of Operation Twist. But this market, and the manipulation involved by use of derivatives and HFT, has turned me into a trader (day and swing). We all watched Silver go to $50, and then back down the $35 range within a few days.. And then SLV went up to $42.65 (price I sold at) and probably by sheer luck, I was calling the top, almost to the hour and now it's $30. bigcharts.marketwatch.com I think the same thing is about to happen to Gold, on the basis that the USD was like a ball being held underwater in order to save the Euro from crashing. But the Fed doesn't want to see the same thing happen to the USD, so now it's time to release that pressure and let the USD rise again (or maybe it has no choice anymore but to let it happen). Does that mean that the USD won't crash to new lows later on? No.. And that could mean Gold reaches new highs. But if I were like TJ, I would be sitting on a HUGE loss in my SLV position, had I held on in "faith" in the PM religion. I prefer to just trade them, and be content to remain a small fish foraging for a meal in the wake of the huge shark feeding frenzies. I used to have religious convictions about stocks, companies, and other assets. But no longer.. I just trade them and attempt to be nimble enough to increase my wealth by switching from asset class to another. One day, somewhere in the future, it may be PMs once again.. That SLV trade was truly awesome for me, I will admit. Hawk

To: THE ANT who wrote (80228)	9/25/2011 3:50:45 AM
From: elmatador	1 Recommendation Respond to of 218300

over 80% of the gold in the history of the world mined since 1900, over 2/3 of this volume in just the last 50 years, double in world production just since 1980. Easy pickings gone. New gold more expensive to dig out. Miners need bigger incentive for dig out, i.e., higher price.

To: THE ANT who wrote (80228)	9/25/2011 4:04:59 AM
From: elmatador	1 Recommendation Respond to of 218300

Factor in Sales under CB Gold Agreement (CBGA) in gold price. As CBGA drops, gold skyrockets. Before skyrocketing, the more the central banks sold , the more restrained the price increases were. This made the business of gold mining only a marginally profitable business at best because it is energy intensive and most energy commodities and other raw materials have been rising much faster than the gold price." If gold price skyrockets miners have a bigger incentive to mine gold than to increase production of most energy commodities and other raw materials. Which means most energy commodities and other raw materials price increases (which is good for Brazil) and in its turn increases the incentive to invest in energy commodities and other raw materials. We know when food prices and energy go higher there is inflation and other outcomes such as Days of Rage we've seen in North Africa and Middle East.