"Carlos Gonçalves" wrote:
> Well, as a prop trader in an portuguese investment bank, i have
> a 264 long position (just roll over for aug contracts on friday)and waiting
> for the 360 mark. It seems like a good panic buying.
> it feels good!
> Like a stock trader that finds unconfortable to be short in the stock market
> (to short human capacity of invention is not natural), being short
> a quasi fixed commodity against a pure printed concept is totally crazy!!
Falling interest rates make it less attractive for gold mining companies and
speculators to borrow gold, sell it, and invest the proceeds in securities that
pay higher returns. Even before the string of rate cuts, mining companies had
begun to restrict their borrowing of gold. Mining companies last year did not
take any new hedging positions, the first time they held off in at least 10
years
Low hedging means the supply of available bullion falls, which can help send
prices higher. It is the speculators who sold gold short that are buying now to
cut their losses.
There are at least 5000 tons of gold borrowed and sold short, .The federal funds
rate equals the ConsumerPriceIndex, that's a set up for a rise in gold price.
There are arguments about why the idea of gold price manipulation in the gold
market is a lunch meat, baloney.
Gold left to its own devices should have gone past $300 because of a rise in oil
and more evil in the Balkans and Palestine.
But because it, like has'nt.......um, there are these people, who, like, are
trying to stop gold from giving an inflation thing. so, ah, maybe, like not a
conspiracy, but like a totally awsome thing, or pretty dang well orchestrated.
Like Carlos stated every major player in the gold market, central banks to
producers is short the metal. This has been predicted by us gold bugs and
contraians all along.
What is the alternative to gold?? the U.S dollar, yen and euro, they are not
strong currencies. This is the perfect storm for gold.
The only alternative is E-GOLD
I woik at some banking companies in Manhattan Many here are dismissive of the
inflationary winds from rising oil prices, $1.85 a gallon downstate, they
mention gold's weakness as proof. The top TV talking analysts i've spoken to say
"gold doesn't matter," and "never buy gold".
But that is a contradiction. It is a big contradiction, it will have to come to
a head like higher gold prices.
I have to tell you that, the more of a Market Technician you are, than the more
of a market historian you have to be.
Historically there is currently a more than 80% correlation between the past 150
days and the market tops of 1929, 1987 and 1973. There could be a large equities
sell off, as players short of gold sell their stocks to cover those positions.
Crazy? nautically nuts maybe, but as JPM always points out its all in
The Charts
Many folks are basically trapped in bearish positions, but they don't know it
yet. The fact people
are totally oblivious has been orchestrated and a part of the normal business
day.
Ciao,
MSO
He held his wealth in paper. Then came the dollars Doom. His caskets lined with
greenbacks and T-Bills mark his tomb.
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