Gold/Silver get hit at exactly 10:00 am

[theo]

You can set your watch by these people.

http://www.kitco.com/

[68Camaro]

yep. But there's no market manipulation... Nosiree. Just concidence.

[reddirtcoins]

................Aaaaaaaahhhhhhhhhhhhhhhhh

lol

[SoFa]

Bernanke was speaking at 10.
SLV is filling the gap.

[shinnosuke]

Descartes said: "I think, therefore I am." My normal rationale is: The market is manipulated, therefore, I buy.

Admittedly fantasy, but if everybody buying for that reason were to stop purchasing coins, bars, etc., for a month, how much would the price drop due to decreased demand? Can all the peons like me make a difference in the price? Would the force be with us?

[68Camaro]

Descartes said: "I think, therefore I am." My normal rationale is: The market is manipulated, therefore, I buy.

Admittedly fantasy, but if everybody buying for that reason were to stop purchasing coins, bars, etc., for a month, how much would the price drop due to decreased demand? Can all the peons like me make a difference in the price? Would the force be with us?

Suggest focus on ounces and preps. We do not know when the other shoe will drop, but as another major newletter writer has said, the end is not near. The end is here. We cannot time this precisely. It could be days, weeks, months, years before the real SHTF, but we're on the top of the tipping point.

[Z00]

The final warning has been issued. If you do not believe it by now, you never will. No more effort will be expended to try and convince you of the facts. Act accordingly or suffer the consequences of your failure to act.
Thus sayeth The Oracle.

[shinnosuke]

The final warning has been issued. If you do not believe it by now, you never will. No more effort will be expended to try and convince you of the facts. Act accordingly or suffer the consequences of your failure to act.
Thus sayeth The Oracle.

http://www.zerohedge.com/news/guest-post-china-will-blink-and-gold-will-soar

The big point is that China will act and in a meaningful way. What I suggest people do is go back and look at different asset classes from the prior two lows in China’s M2 year-over-year growth rate. The first one occurred in late 2004. The M2 growth rate then accelerated until around mid 2006. In that time period gold prices went up around 65% and the S&P 500 went up 20%. In the second period of acceleration from late 2008 to late 2009 gold was up 65% and the S&P500 was up 15%. We are at one of these inflection points and considering the DOW/Gold ratio is still holding gains from its countertrend rally from last August of almost 40%, this is probably one of the best entry points to buy gold and short the Dow of any time in the last decade. Oh and if you want more juice, when China blinks silver does much, much better than gold...

[beauanderos]

The final warning has been issued. If you do not believe it by now, you never will. No more effort will be expended to try and convince you of the facts. Act accordingly or suffer the consequences of your failure to act.
Thus sayeth The Oracle.

http://www.zerohedge.com/news/guest-post-china-will-blink-and-gold-will-soar

The big point is that China will act and in a meaningful way. What I suggest people do is go back and look at different asset classes from the prior two lows in China’s M2 year-over-year growth rate. The first one occurred in late 2004. The M2 growth rate then accelerated until around mid 2006. In that time period gold prices went up around 65% and the S&P 500 went up 20%. In the second period of acceleration from late 2008 to late 2009 gold was up 65% and the S&P500 was up 15%. We are at one of these inflection points and considering the DOW/Gold ratio is still holding gains from its countertrend rally from last August of almost 40%, this is probably one of the best entry points to buy gold and short the Dow of any time in the last decade. Oh and if you want more juice, when China blinks silver does much, much better than gold...

[68Camaro]

So... interesting, but I'm lazy. Just how does China control its M2? Does it print to expand?

[shinnosuke]

So... interesting, but I'm lazy. Just how does China control its M2? Does it print to expand?

Aren't they relying on the magic of fractional reserve banking just like the West? You deposit 1000 renminbi in an account and they loan 980 to Chang. Chang deposits 980 in his account and they loan 960 to Wu. Rinse and repeat. Communist Party Central just fiddles with the reserve requirements.

[Copper Catcher]

http://www.youtube.com/watch?v=vj-E6AADjXE

Bernanke talks around and around and says nothing..... He says at around 2:00: We do have methods; we do have tools that would allow us to get further accommodation in the economy...blab, blab blab

So, further accommodation and tools? I wonder is he talking about the Plunge Protection Team or perhaps he was referring too JP Morgan Chase and others using high frequency trading?

Bernanke also states that monetary policy is not a panacea and it would be much better to have a broad based policy effort addressing a whole variety of issues; that he leaves Congress to figure out.

Like that is going to happen! Face it folks, we are screwed.

[theo]

I know China has made significant progress toward modernizing their economy in the past two decades, but is there enough economic activity to support that level of expansive debt? Certainly not on the consumer side as their middle class is still relatively small. Also their culture isn't nearly as consumption-oriented as ours is. I suppose they can funnel a lot of yaun through the large corporations either owned by or in close partnership with the Government, but is it enough to expand the money supply? The rest is probably done the old-fashioned way; massive government spending on various projects and the military.

[shinnosuke]

I know China has made significant progress toward modernizing their economy in the past two decades, but is there enough economic activity to support that level of expansive debt? Certainly not on the consumer side as their middle class is still relatively small. Also their culture isn't nearly as consumption-oriented as ours is. I suppose they can funnel a lot of yaun through the large corporations either owned by or in close partnership with the Government, but is it enough to expand the money supply? The rest is probably done the old-fashioned way; massive government spending on various projects and the military.

Oh but there is a lot of economic activity. 1 Billion plus people have to eat. They have to wear something. They don't all have 10 pairs of shoes each, but a billion is still a big number. However, you're certainly right that alot of any growth will be via central planning and spending.

[68Camaro]

Back to the topic - TPTB definitely re-established their will to keep paper prices pushed down over the last 2 days. I always wonder how much effort is expended to do this, each time. Was this time more "difficult", or not? There were three distinct "waterfall" plunges. But (so far) they failed to get the price down to the level that this latest push started at. Will they go again today? It's an interesting battle. I believe the outcome of the war is inevitable, but the battles are eye-openers...

[Engineer]

I always wonder how much effort is expended to do this, each time.

I'd imagine it's correlated pretty closely with JPM's recent multibillion dollar loss.