Check out the gold and silver charts, below. You will see a very common occurrence – note the $30+ waterfall drop as the bums arrived at work in London. If I had a buck for every time this happened I could go out for an exquisite dinner with Susan and the kids. But it means nothing. Silver over $40 and gold over $1800 is STRONG! $2000 gold and $50 silver really are not far off. This is a GOOD time to buy.
In the words of one of my favorite analysts, Ed Steer:
Both gold and silver prices rose during the thinly-traded Far East markets earlier today…but both rolled over as late afternoon wore on in Hong Kong…and gold was up about twelve bucks at the London open, with silver up a hair over 50 cents. Then the bid disappeared in gold just minutes after 9:00 a.m. in London…and the price was down under $1,800 the ounce in just a few seconds…but has recovered a bit since. Silver got hit as well, but the price action wasn’t nearly as violent. As you might suspect, volume in gold is already monstrous…north of 50,000 contracts, with silver volume sneaking up on 10,000 contracts traded. Here’s the Kitco gold chart that I was looking at around 5:00 a.m. Eastern time this morning.
And here’s the 1-minute tick chart hot off the press from Nick Laird…
We closed on our condo in FIorida on Monday and Susan and I fly down this morning and start moving in. There is a lot to take care of. I have to get my office set up and my iMac working. We have to register to vote, apply for Florida residency, apply for Florida drivers licenses and homestead the condo. There are a few dozen large boxes to unpack, and Susan will turn into a cleaning-demon, even though the condo doesn’t need the cleaning. After a couple days of mayhem, we will start to get to know the area. I will not be writing for the next couple of days, but I will get back into the fold as quickly as possible. Therefore, this daily is a bit longer than usual. I will only be gone for a few days – this is just the preliminary to making the “real” move around November 1st.
The following comments and three charts are from Future Money Trends. The charts require no explanation.
With a day like this, when gold, silver, and mining stocks are down across the board, it’s best to step back and look at the fundamentals.
Let’s look at what is happening in the world right now on a day gold is down nearly $100 from its all time high (down 43 for the day).
- ECB continues to provide quantitative easing adding €13.96 billion in PIIGS debt purchases last week.
- Greece is unable to repay its debts.
- NOT 1 European or American bank has marked sovereign debt to market.
- In the U.S., QE3 is now imminent.
All of these things should put gold over $2,000 and silver north of $50 in our opinion. Yet, the trend continues to bump against strong headwinds from margin hikes, bubble talk, and of course an abundant supply of paper contracts that have ZERO metal backing. FutureMoneyTrends.combelieves that soon this trend could explode to the upside. Just last week when billionaire Eric Sprott was interviewed, he stated that “the sky is the limit for precious metals now.” The reason we point this out is because we believe that the fundamentals for precious metals are better than ever, yet the games played by the powers that be are at full throttle trying to shake people out of their safe haven assets.
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Now is the time to ignore all of the “noise” from the media and from the ups and downs of gold and silver. Jim Sinclair has some excellent advice and it is so basic to your ability to understand what is happening that I am inserting it here, in my section:
My Dear Extended Family:
Gold is never easy is and only going to get harder. The algorithms are fighting the cash market as margins rise. It is only natural that the cash market takes on more strength when margin is headed to cash anyway.
There is simply no fix to the mess that Western finance is in. No games of twist will influence banks to lend on rationale terms, if at all. QE3 is unavoidable in both the USA and Euroland. The managers of Western finance have lost control and kicking the can down the road takes a force ten times as strong as the one it took only one year ago.
The strength of the dollar from the recent low is but a mirror image of the weakness in the euro from the recent high. The safest of safe havens is in gold.
Recent emails to me have asked for help even in a cash position because the volatility in the gold market is ruining some CIGA’s sleep.
Survival has never been easy. Our founding Father when they signed the Declaration of Independence put not only their wealth but also their lives on the line. Freedom of any kind, even financial, requires courage.
If you are losing your grip due to the madness of the market you have two choices. You can trust Monty, Trader Dan, Eric, and Kenny who firmly believe that there is no top in gold or you can sell down to your courage level.
Once you have decided stop thinking about it and stop watching every tick. That is sure to drive you crazy. Whatever course of action you select finishes that mental debate.