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Just from purely a technical perspective, the action today of Gold breaking support at $1250 is not good. The next lower support / target is $1030

Bring it on. Weak hands capitulate, strong hands benefit.

That gold:silver ratio has some possibilities in the works.

It's still a bit higher than the lower-lows in the middle of the year though, right?

Well, that set of Washington quarters I've been thinking of buying is looking cheaper every day .

I thought it would happen last year.. I still think we will get there.
That would make 16.80 silver...

barrytrot wrote:It's still a bit higher than the lower-lows in the middle of the year though, right?

Yeah, but the recent highs are not higher and the recent lows are lower... momentum very easily could push the next low below this summer's low. That would make for a new lower low, and then we start finding out what that number is. $1030 is that number if we continue to make new lower lows that eventually go lower than summer's low.

Ok, now my head hurts. No more braining for the day.

Anyone wanting to sell some buffs or maples at spot before the market crashes, just let me know!

GOLD going down should mean 10-year treasury rates going UP (causing a stronger dollar against other currencies). How high will the rates have to go before the FED says: "We will not be tapering at this time" to push rates down again? IMO, it will be soon!

Interesting. Au and Ag are both threatening to challenge recent lows and I haven't seen any recent articles regarding manipulation. Although some direct manipulation is certainly in play I have a difficult time believing that it is solely to blame for this bear market.

I tend to think that the deflationary forces are more powerful than most PM advocates are willing to admit; at least in the short run. The "economic recovery" seems to have taken a turn for the worse as the health care law has finally sent the economy over the regulatory tipping point. I have the feeling that this holiday season will be a huge disappointment to desperate retailers and I continue to hear stories about corporations hoarding billions in cash. QE might hurt the dollar in the long run, but in the short run it is doing little more than propping up an already bloated stock market.

Finally the U.S. dollar's status as reserve currency appears secure for now as Saudi Arabia and the other Gulf states need our protection against a potentially nuclear Iran. This could be the reason that the Iranian nuclear program has been allowed to progress to this point.

Of course the flip side of my argument is that a liquidity bomb of epic proportions is being created with the potential of wiping out our current financial system with in a few short days.

theo wrote:I tend to think that the deflationary forces are more powerful than most PM advocates are willing to admit;

I think this is correct. The recovery only exists on paper. I believe we are in basically in a depression while the propaganda tries to convince everyone otherwise.

I read manipulation articles multiple times a day, so often that I worry I'm not getting diverse enough input. There are plenty of people screaming manipulation.

The Saudis are pissed beyond belief at us and ready to side with Israel and France to kill the Iranian reactors. They are already discretely walking away from the dollar.

Yes, we are in a depression and there are deflationary aspects, but a price drop in gold in the face of more demand than supply makes no sense. I think the paper sellers are in the end game and don't think they can keep it up more than another 6 to 12 months.

The big gold buying countries will keep prices up, they know, in the longer term .. they will win. World economies will continue to equilibrium, the cold war never really ended, we just forgot about it like we do. The comment on health care, what a joke, blame the president now, U.S. health care is a profit based monopoly, under performing against every other health care system in the world. And, for a developed nation, we do pretty good for having some of the worst health because their is no money to be made in prevention.
From a bearish perspective, yeah, what if countries and central banks stopped buying all that gold, but what are they using to buy all that gold with?, printing press?

My comments on the new health law were not met to be political. Sorry if I upset you by appearing to criticize the President; afterall he is doing his best . I was merely pointing out that the failed roll out and increased regulation will add another layer of uncertainty for consumers/businesses and, therefore, will contribute to the deflationary drag we've been seeing.

everything wrote:<snip> U.S. health care is a profit based monopoly, under performing against every other health care system in the world. And, for a developed nation, we do pretty good for having some of the worst health because their is no money to be made in prevention.
From a bearish perspective, yeah, what if countries and central banks stopped buying all that gold, but what are they using to buy all that gold with?, printing press?

The answer is: Health care vacations. You can now take a vacation and get the surgery you need overseas in a hospital with Joint Comission International accreditation. Drs from American colleges. And you have money left over after the vacation included in the vacation package compared to the cost in the U.S.

As for central banks most have US reserves and/or T-bill, T-bonds etc. they can/will gladly dump for something with real value. At least, I would were I making those decisions. Then again, in a race for the bottom, I'd crank up the printing press and buy gold with the proceeds too. Just keep the transactions off record or again at least out of the press. Or do a North Korea number and buy with counterfit U$ 100 bills.

Thailand is the best hospital destination. Surgery with a Happy Ending!

Deflation is definitely the elephant in the room, but I still think gold and silver are ultimately going to tell the trend to take a hike because the baseline we are using is based on a non-metal backed dollar, so garbage in garbage out. As long as things are status quo they will probably drop with the rest, but once people truly feel the pain of leveraged markets and forsake IOU assets the trend should be overruled by markets seeking equilibrium. Long term play.

johnbrickner wrote: buy with counterfit U$ 100 bills.

We already do.

What an incredible Christmas present

I just wish I had more money to stack with. I'm having a lot of trouble buying junk silver, which is my favorite PM by far. It's already in strong hands it seems. Certainly not many seem willing to sell junk at this price.