The dumbest thing I have ever heard is that gold is falling because “the risk trade is off.” Off? The risk has suddenly disappeared? This is Ludacris! Either the Main Stream Media (aka – MSM) is lying to us or the hedge funds are smoking Angles Dust. Name me one, just one area of concern that is suddenly no longer an area of concern. Tell me why it is “safe” to park money in bonds paying LESS interest than the current “official” inflation rate of 2%. Hey, my readers all know that the real rate is around 6%! (John Williams, Shadowstats)
The only “risk” in staying in the euro or dollar: two currencies that are inflating their way to oblivion. So what gives? Are we being lied to or are the hedge funds run by incompetent idiots? Or is all this craziness just the result of greedy hedge fund traders trying to make a buck by the minute, with no concern for the long-term or the real fundamentals?
This day-by-day volatility can drive you up the wall, if you let it. Or – take Jim Sinclair’s advice and stop checking the prices of gold and silver every hour. Dig a hole in the back yard, climb in and cover it with a rock and don’t come out for a month or two. Dear readers, this will end WELL. All you need do is ignore this short-term fund-driven madness. Let them slice each other up. Don’t let them get to you. The closer we get to $1,500 the more you should step up your buying. Many of you are – our business, and the business at some of our competitors that I keep in touch with – has been strong for the last two weeks.
Although I personally don’t pay much attention to technical analysis (how can you in a manipulated market), I realize many of you do. The next key number for gold, according to TA is $1,523. All I can say is if gold slips below $1,500, sell the farm, back up the truck…it will be the buy of a lifetime.
Here are a few comments from Ranting Andy – he sees things much the same way that I do…
In today’s world of 24/5 market rigging, even the MSM has become jaded, to the point even they don’t know how to explain such enigmatic movements – PARTICULARLY in PMs, a sector they know little of to start with care of four decades of PROPAGANDA. The little that’s out there will undoubtedly say gold fell due to the “strong dollar,” despite the fact the dollar index has barely budged for months.
Moreover, even a complete dolt should understand that people FLEEING the Euro is not “gold bearish,” no matter how hard Cartel algorithms paint the tape. Not only does it not make intuitive sense, but historically has not been the case. The “dollar index” – essentially measuring the dollar/Euro exchange rate – has traded in a tight range around 80 for the past seven years, during which gold has risen from $400 to $1,900!