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Just get it over with......
There are certain things that are just a fact, there is no black or grey areas. For example, if you are a member of the KKK, you are a racist. If you weigh 500lbs, you are overweight. If you never trade a stock from the long side, you are a dedicated short. There is no pretense here, it is, what it is.
Now lets look at the gold market. Over the last few weeks, gold has had every opportunity in the world to break higher, yet it keeps getting capped at whatever level is convient for the CB's and the shorts. What is especially galling is the power situation in South Africa is going to leave the gold market at with a minimum of a 400,000 ounce deficit for 2008. Silly me, but I kinda remember in my college economic classes something about supply demand price type of thingy. Something like a lower supply with equeal or higer demand means higher prices. I guess the gold market never went to college.
But, I guess Platinum and palladium did go to college as those prices are on a constant tear higher. Plat today went over $2100. Now, obviously, plat has gone parabolic and this move will not last. However, where it ends, I have no idea. I have sold some of my palladium rounds into this rip higher. I had been long palladium since $300. Thanks Dave. (With the exception of stealing my neighbors catalytic converters, I have no platinium. My wife won't let me sell her platinum jewellery as she hopes to one day be a sugar momma to Ricardo, our pool boy.)
My point in all this is to get rid of any notion that the gold market is fair, balanced or natural. Take any 100 daily charts of the gold market from 12am to 12pm and you will notice several things. First, the market sells off around 2am. Second, the market sells off around 6am. Third, the market sells off around 8:30am. Fourth, the markets sells off around 1:20pm. Fifth, the market rallies around 2pm. And sixth, the market rallies around 7:30pm. (All times EST).
When a person can accurately time a market to almost the minute, is that an open or controlled market? When all the fundamentals in the world point for a security to go higher ON A
CONSTANT BASIS, and that security fails at several key levels ON A CONSTAINT BASIS, is that a fair market?
I know what a lot of you are thinking: "Neal the gold market is over $900 and you have been spouting the same crap since $600, give it up already!!!!!" I will come back and say, yes it's at $900, but it should be at least at the inflation adjusted price of $2100, and the fact that it's not, given the worldwide economic condition, shows the problems in the market.
Should we know talk about the constant crap that is thrown against the market. First, the announcement last week that the IMF is once again going to sell their gold. No matter that this prolly won't happen as Congress needs to give its approval, the main idea was to put the thought of a 100 tons of gold hitting the market and how that would suppress the market. Mission accomplished.
Second, the constant top callers in the gold market. Jeez, the way I just want to pummel these morons who have absolutely no clue as to why gold is this high in first place and now call for gold's demise. These are the same idiots who have been saying the same things since $400.
Finally, the way gold is portrayed in the media as an investment for morons as it pays nothing and actually costs a few bucks for storage. I dunno, but like I have said, I have been involved with gold since around $375. I am very happy with my bullion and numismatic purchases. In fact my gold, coin, and palladium positions have prolly been my best long term investments ever.
My entire point in this rambling mess, is unlike the KKK guy, who we know is a bona-fide asshole racist, we don't know, officially how controlled the gold market is on a daily basis. And why does this bother me so much? As I have often said, the action in the gold market on a daily basis is akin to someone coming into my house and robbing me. I don't like when either happen.
The market should just get it over with and either sell off back to $400 or just an adopt the bear as their official logo.
Now lets look at the gold market. Over the last few weeks, gold has had every opportunity in the world to break higher, yet it keeps getting capped at whatever level is convient for the CB's and the shorts. What is especially galling is the power situation in South Africa is going to leave the gold market at with a minimum of a 400,000 ounce deficit for 2008. Silly me, but I kinda remember in my college economic classes something about supply demand price type of thingy. Something like a lower supply with equeal or higer demand means higher prices. I guess the gold market never went to college.
But, I guess Platinum and palladium did go to college as those prices are on a constant tear higher. Plat today went over $2100. Now, obviously, plat has gone parabolic and this move will not last. However, where it ends, I have no idea. I have sold some of my palladium rounds into this rip higher. I had been long palladium since $300. Thanks Dave. (With the exception of stealing my neighbors catalytic converters, I have no platinium. My wife won't let me sell her platinum jewellery as she hopes to one day be a sugar momma to Ricardo, our pool boy.)
My point in all this is to get rid of any notion that the gold market is fair, balanced or natural. Take any 100 daily charts of the gold market from 12am to 12pm and you will notice several things. First, the market sells off around 2am. Second, the market sells off around 6am. Third, the market sells off around 8:30am. Fourth, the markets sells off around 1:20pm. Fifth, the market rallies around 2pm. And sixth, the market rallies around 7:30pm. (All times EST).
When a person can accurately time a market to almost the minute, is that an open or controlled market? When all the fundamentals in the world point for a security to go higher ON A
CONSTANT BASIS, and that security fails at several key levels ON A CONSTAINT BASIS, is that a fair market?
I know what a lot of you are thinking: "Neal the gold market is over $900 and you have been spouting the same crap since $600, give it up already!!!!!" I will come back and say, yes it's at $900, but it should be at least at the inflation adjusted price of $2100, and the fact that it's not, given the worldwide economic condition, shows the problems in the market.
Should we know talk about the constant crap that is thrown against the market. First, the announcement last week that the IMF is once again going to sell their gold. No matter that this prolly won't happen as Congress needs to give its approval, the main idea was to put the thought of a 100 tons of gold hitting the market and how that would suppress the market. Mission accomplished.
Second, the constant top callers in the gold market. Jeez, the way I just want to pummel these morons who have absolutely no clue as to why gold is this high in first place and now call for gold's demise. These are the same idiots who have been saying the same things since $400.
Finally, the way gold is portrayed in the media as an investment for morons as it pays nothing and actually costs a few bucks for storage. I dunno, but like I have said, I have been involved with gold since around $375. I am very happy with my bullion and numismatic purchases. In fact my gold, coin, and palladium positions have prolly been my best long term investments ever.
My entire point in this rambling mess, is unlike the KKK guy, who we know is a bona-fide asshole racist, we don't know, officially how controlled the gold market is on a daily basis. And why does this bother me so much? As I have often said, the action in the gold market on a daily basis is akin to someone coming into my house and robbing me. I don't like when either happen.
The market should just get it over with and either sell off back to $400 or just an adopt the bear as their official logo.
posted by Neal | 11:30 AM
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