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Nothing matters anymore.....
First, the back is much better. Motrin and time heals all. My wife had me back to doing chores today, as the bad back excuse wasn't working after two days. It didn't help my cause that I was walking without a limp.
Anyhoo, time to focus my anger on the gold market as once again as the true nature of the market has emerged over the last two days.
I honestly have lost track of everything the Fed has done to try and right the credit crunch. From bailing out Bear Stearns to the many ABC programs they have enacted to pump money into the economy. Whatever they are doing so far it's not working as banks are not lending money. Also, everything they are doing was supposed to lower mortgage rates; buzzzzzzzzzzzz....oh thanks for playing; that hasn't worked well either as rates are higher now then they have been in some time.
In a regular free market this would be a boon for gold and gold would be well over $1500 an ounce. But, we all know how free this market truly is. After the take down of gold from over $1,000, we are once again back to the bad old days where all rallies are sold, all good news for gold is met with selling, and finally, gold attaches itself to any market that is down. So be sure to watch the mackerel futures in Iceland as those things can be a bitch.
And because we were such good kiddies, the IMF gold sales reared their ugly head today as they announced they were going to sell some 14 million ounces. But they promised that it would be done in an orderly fashion over time as to not disrupt the market. The act like they haven't had every Asian and Middle Eastern Central Bank hasn't inquired about buying the hole slug at once. The idea here is not so much the sales as the idea that the sales are constantly hanging over the market. The sales are something to remind the market of when the times, or the price get to high.
Now, the fact that the IMF can't sell an ounce until the US gives its Congressional blessing was lost on the market today. Oh, and that the IMF also said they won't do anything until the new administration is in place, so in my opinion they are prolly a year away from doing anything. Again, it's the threat and not the action they want the market to be worried about. And to prove that the threat scares the market, look at the action today. Gold was trading around $925 in Asia and, as usual, once Europe opened, boom, it was a quick $7 down and then once again when the CRIMEX opened, it was another $7 down for a tidy total of $14 in the hole with flat oil and a flat dollar. To it's credit gold cut those losses in half.
But here we are once again, gold as the whipping boy. It doesn't matter if crude is up, gold will be flat, but if crude is down, gold gets crushed, same with the dollar. It almost seems like gold is the only security in the world that doesn't trade on fundamentals.
Sigh...........I once again grow weary of this game.
Anyhoo, time to focus my anger on the gold market as once again as the true nature of the market has emerged over the last two days.
I honestly have lost track of everything the Fed has done to try and right the credit crunch. From bailing out Bear Stearns to the many ABC programs they have enacted to pump money into the economy. Whatever they are doing so far it's not working as banks are not lending money. Also, everything they are doing was supposed to lower mortgage rates; buzzzzzzzzzzzz....oh thanks for playing; that hasn't worked well either as rates are higher now then they have been in some time.
In a regular free market this would be a boon for gold and gold would be well over $1500 an ounce. But, we all know how free this market truly is. After the take down of gold from over $1,000, we are once again back to the bad old days where all rallies are sold, all good news for gold is met with selling, and finally, gold attaches itself to any market that is down. So be sure to watch the mackerel futures in Iceland as those things can be a bitch.
And because we were such good kiddies, the IMF gold sales reared their ugly head today as they announced they were going to sell some 14 million ounces. But they promised that it would be done in an orderly fashion over time as to not disrupt the market. The act like they haven't had every Asian and Middle Eastern Central Bank hasn't inquired about buying the hole slug at once. The idea here is not so much the sales as the idea that the sales are constantly hanging over the market. The sales are something to remind the market of when the times, or the price get to high.
Now, the fact that the IMF can't sell an ounce until the US gives its Congressional blessing was lost on the market today. Oh, and that the IMF also said they won't do anything until the new administration is in place, so in my opinion they are prolly a year away from doing anything. Again, it's the threat and not the action they want the market to be worried about. And to prove that the threat scares the market, look at the action today. Gold was trading around $925 in Asia and, as usual, once Europe opened, boom, it was a quick $7 down and then once again when the CRIMEX opened, it was another $7 down for a tidy total of $14 in the hole with flat oil and a flat dollar. To it's credit gold cut those losses in half.
But here we are once again, gold as the whipping boy. It doesn't matter if crude is up, gold will be flat, but if crude is down, gold gets crushed, same with the dollar. It almost seems like gold is the only security in the world that doesn't trade on fundamentals.
Sigh...........I once again grow weary of this game.
posted by Neal | 9:56 PM
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