Legs?

So, have we turned the corner? Does this rally have legs? There's A LOT going on tonight so I thought I'd better type up this post.

First, though, lets revel in the beautiful bout of short-covering and buying we saw today. Officially, August gold was UP $43.10. That's a one day gain of 3.33359%. Astonishing! Do you know how rare that is?? Perhaps some insomniac or otherwise bored Turdite can research the last time gold saw such a dynamic one day gain.

So, is it over? Has our long, international nightmare finally ended? WAY, WAY TOO EARLY TO SAY. However, this is extremely encouraging.

Let's wait to see what today's OI numbers come in at tomorrow. If this was all short-covering, then you can expect to see the total OI in Comex gold drop significantly. A much more encouraging outcome would be an OI that continues to rise. Note the word "continue". Did you know that total OI for Comex gold bottomed on June 17 at 372,950 and that it has been steadily rising ever since? In fact, as of last Friday, the total OI has grown by nearly 20% to 444,732. This will likely drop off again over the next week as we head into contract expiration but we'll keep an eye on it.

And it's the August expiration that was likely the key today. The total Large and Small Spec gross short position as of last Tuesday was nearly 170,000 contracts and remember, there is no way and no how for Specs to deliver against these positions. Thus, they have to be covered and rolled. Have to. The rally today was almost certainly inspired by a rush to the exits for these shorts. Then you've got the poor suckers that are short the Aug13 calls into Thursday expiration. Anyone who sold short at a strike of $1330 or less got a true religious experience today. Remember, the kneejerk reaction when your short call gets squeezed is to go long a futures contract to hedge yourself. Undoubtedly this happened today, too. The end result is a perfect storm of buying that leads to the nearly unprecedented 3.33% move.

So now comes a "moment of truth". Can this rally sustain itself? Can it do enough technical damage to the bears' case that it becomes sustainable to the upside, thereby discouraging The Specs from executing the "roll" part of the "cover and roll" plan? We shall see.

The price of both metals sits tonight at a crossroads. There are resistance levels and moving averages that are immediately overhead. Can this move continue? Can it break those MAs and further frighten the shorts? Can it bust the trendlines from mid-April and begin a new, positive and UP trend?

The most likely scenario is that the shorts will reassert themselves soon and double down. A forced failure at the resistance and MA points listed above would embolden the shorts to push price back down. IF this happens, it will be important for gold to hold near $1300 and silver to hold near $20.

But my intent is not to convince you that this has to happen. GOFO remains sharply negative and the COMEX vaults are at extreme lows heading into August delivery. Some very sharp minds think that we are at The Beginning of The End of the Comex/LBMA fractional reserve system and their latest columns are reprinted below. Read them and give them your full consideration. You know that I feel very strongly about this, too, but I want to remain a bit more subdued on the causes of today's rally. For now, I'll stick with the analysis laid out above.

First, here's our pal Alasdair at GoldMoney. The entire article is posted at their wonderful site and you can find it here: http://www.goldmoney.com/gold-research/alasdair-macleod/gold-derivative-distortions.html However, you simply must read this so here is a full c&p:

The purpose of this article is to explain how derivatives have distorted gold prices with particular reference to the US futures markets. This will enable us to anticipate the price effect when the distortion is eventually unwound.
When a derivative is created it diverts supply and demand from the underlying commodity. If it is then hedged into the underlying commodity the price effect is the same as if it was a simple commodity transaction. Enter the “honest speculator”, who is neither producer nor consumer, but seeks to profit by trading derivatives for profit, without an intention of taking delivery. The speculator who does not roll his positions into subsequent future contracts brings forward demand or supply only to reverse the price effect later in the life of the contract. In this case speculators provide liquidity with no lasting price distortions.
So far we have considered markets which are essentially free. In the US futures markets, this changed when banks were permitted to act as “commercials”, despite the fact they are in fact speculators in the original market definition. The nature of the futures market changed from this moment to one where speculative positions have become more or less permanent.
In the case of gold and silver the banks have absorbed physical demand by continually running net short positions. We cannot say that all of this demand would have existed without the banks’ intervention; however there is no doubt that the expansion of the overall market by the addition of permanent short positions has led to lower prices overall than would otherwise be the case.
If futures markets are not to distort prices on a prolonged basis three conditions must apply: every player must be motivated only by profit, the banks must commit only their own resources and no one else’s, and there must be periodic liquidation of speculative positions. Instead, there is little doubt that there is political intervention, the banks are too big to fail which allows them to commit funds they would not otherwise commit, and there has been no overall liquidation of speculative positions. The result is that banks have been able to manipulate prices, and pricing has become distorted, confirmed by emigration of gold away from derivative markets.
The third condition cited above needs further explanation. Since March speculative longs have been liquidated through stop-loss orders, leaving a core of longs inaccurately regarded as speculators. The banks have closed their short positions by encouraging new speculators to open short positions, so the speculators are all now on the short side. They don’t realise it yet, but the speculator shorts are the now only true speculators in the market. Therefore when they come to close their positions, there is no one to provide them the necessary market liquidity except on a completely different and higher price basis.
The net effect on the gold price so far has been to suppress it. Demand for physical has increased at lower prices as one would expect, leading to a physical liquidity crisis on US futures markets. At the same time a parallel liquidity crisis has developed on the London Bullion Market, evidenced by negative gold forward rates.
 Alasdair Macleod
Head of Research, GoldMoney

And now this evening, Santa has joined the fray. He, too, has been all over the GOFO situation and you well know that he has been expecting an end to fractional reserve bullion banking for quite some time. From his site, here's a full c&p of his latest remarks:

My Dear Extended Family,
The cause of today’s spectacular rise in the gold price is the reality that with Friday continues large drops in the Comex warehouse gold inventory. No cogent argument can be formed against the reality that because of the continued fall in gold inventory that within in 90 days or sooner the Comex must change its delivery mechanism.
The highest probability is that Comex will have to move to cash settlement rather than gold. Part of that settlement could be lots of 100,000 GLD that represents the ability to exchange for gold.
Their problem is that if GLD is part of the settlement mechanism for the spot Comex contract that GLD will be destroyed by the convertibility. It is a truism in gold that which is convertible into gold will in fact be converted over time.
Gold rose today because those knowledgeable know the inevitability of the changing of the Comex contract, as it is today which calls for settlement in gold between contracting parties. There is no question this is the emancipation of physical gold from the fraud of no gold, paper gold. The emancipation will cause physical gold exchanges to take birth and to be the discovery mechanism for the price of gold. This is the end of the ability to use paper gold future contracts as a mechanism to make the gold price sing and dance at the will of the manipulators.
With manipulation coming to an end the true value of gold will be discovered by the cash exchanges that are now taking birth. The advent of the cash spot exchanges around the world is the natural demise of the Comex set up as convertible and now being converted.
As long as one can buy spot, pay insurance, transportation and re-casted by Rand Refinery to Asian products sold profitably, the demands for real gold are ending the hay days or even existence of the futures exchanges.
Gold is headed back to be traded as it was before 1973. Gold will trade well above $3500 and those who have lived in the gold market like me for now 53 years know it.
A price of $50,000 for gold is not out of the question as a result of its emancipation from “fraudulent paper, no gold, paper gold.”
GOFO is screaming this truth. The warehouse inventory of every futures gold exchanger is screaming this. The fact that there is no meaningful above ground supply of gold is screaming this. The fact that most of the central banks supply of gold is leased is screaming this. There is no reason why gold cannot move up hundreds of dollars a day when the Comex changes their spot contract settlement, as they must, as they will, very soon.
Respectfully,
Santa

So here we are. A powerful rally today that has extended into this evening with gold up another $2 as I type at 11:30 pm EDT. Chances are very high that The London Monkeys will go to work on price in a few hours and slam price down $10 or so by sunrise in New York. That's OK and is to be expected. The real key is tomorrow and later this week. Does this rally have legs? Can gold move convincingly through $1340 and silver through $21? We'll see. However, if not now then I'm convinced they will very soon. This has been a powerful rally from a capitulative low on rising open interest. That's a very good start.

I'm going to be out most of Tuesday as I have some personal business to attend to. I'll try to check in from time to time but please try to be nice to one another in my absence. We've come a long way and have built a powerful and well-informed community. Keep the faith. Your patience will soon be rewarded.

TF

368 Comments

Turd Ferguson's picture

And here's the latest from

MODERATOR

And here's the latest from Jim Quinn, too: http://www.theburningplatform.com/?p=57636

kingboo's picture

Kate Upton

she's got legs.......

what? you were waiting for a picture? She's mine......get your own leggy chick...

ReachWest's picture

Thanks Turd - And I am Third!

Just popped back to Turdville after reading Santa's latest missive over on his site. (Glad to see that Turd has already included that piece here). Santa is ringing the bell that things may have turned a corner and that the separation of paper and physical price/markets is at hand. I do hope so.

I am certainly tired and immensely frustrated from all the daily machinations of MOPE, spin and (mostly negative) price volatility that we have witnessed over the past several months. It is especially frustrating when fiat metal price is so counter-intuitive to what the macro-economy seems to be saying it should be. Emancipation (as Santa calls it) of the paper Gold from the real thing would go along way to negating the effects of the crooks. 

And this needs to be said - Thank-you Mr Ferguson for the time and effort that you put into this online village we call Turdville. I'm here daily, although I post pretty infrequently these days - but - regardless this site is an anchor that has helped me weather this storm in a strong state. Turdville is a bastion of logic in a sea of crazyness. 

ACM's picture

Hanging On For Dear Life

  Just gets crazier all the time.  They've been trying for years but this leaf hasn't been shaken loose and the stacking will continue until morale improves!  May as well enjoy the ride.  It's part of history.

Threefoottwo's picture

I have to sat first. Thank

I have to sat first. Thank you Turd for your effort.

Mudsharkbytes's picture

I plead the

fifth.

Left Field's picture

Long way to hold

I hope a quote from Winston Churchill Fits well here "this is not the beginning of the end, but the end of the beginning."

Tarzan's picture

Silver

In the opinion of an ultra very long pm person, I think JPM's recent purchase of physical silver will allow it to stuff the Ag price for a while longer. It's a smaller market than Au and will be easier to short. However, nothing lasts for ever. 

I love silver.  It clinks very nicely when I'm counting it.  And the art on the old silver dollars is so beautiful.

SilverSurfers's picture

Niner

Yeah, 9th, for another top tenner!!

OK, the Russians are buying gold. I TOLD RAZPUTIN TO DO IT!

but shhhhhhh

I think it was about 2007, Russian market TV started carrying the gold price, twice a day.

Far Eastern State University, DVGU, Intellectual Property and Marketing.

and vodka shots in -20C degrees, a Russian tradition on New Years Day.

Just making fun. The university kids were hip, with pints in back pockets. :o

And the Russkaya have hot legs and love golden bobbles!

The latest

USA Federal Government Hierarchies

I want to remain a bit more subdued, ... oh meh, ok, Ive hear everything now.

Try a couple of vodka shots, and get over it already.

Roger Rocker's picture

Legs!

Those two fine legs were your mama's pride.

Why didn't you run from the cannonball?

I'll feel the legs are on when my stack price is lower than the advertised price. I've been averaging down for over 2 years and I still haven't caught up:(

I like starting high!

Stack-on!

Silverivalist's picture

Zero Hedge to provide webcast for Senate Hearings tomorrow am

Examining Financial Holding Companies: Should Banks Control Power Plants, Warehouses, and Oil Refineries? 

538 Dirksen Senate Office Building 

10:00 AM - 11:30 AM

Ahead Of Tomorrow's Hearing On Goldman And JPM's Commodity Cartel

 
Tyler Durden's picture

[snippet] While we don't expect anything new to develop here, nor anywhere else, until the entire system comes crashing down and forces a fundamental overhaul of modern finance at the grassroots level, tomorrow's hearing will be webcast live on Zero Hedge and will have the following witnesses.

Ms. Saule Omarova
Associate Professor of Law
University of North Carolina at Chapel Hill School of Law

Mr. Joshua Rosner
Managing Director
Graham Fisher & Company

Mr. Timothy Weiner
Global Risk Manager
Commodities/Metals, MillerCoors LLC

Mr. Randall D. Guynn
Head of Financial Institutions Group

We look forward to seeing how the Chairman, or his successor, will deflect this one.

judejin's picture

shanghai silver futures premium collapsed

when silver moved from 20.20 to 20.50+ last night, shanghai silver futures barely budged.

now, in asia session, when silver dipped to 20.20ish, shanghai silver futures moved lower compressing premium to only about 1%.

last year, before gold/silver made the aug-sept rebound, premium in shanghai collapsed too.

so premium in shanghai is a contrarian signal.  whoever is shorting the market is getting out of it by compressing the premium thus minimizing their losses and baffling the longs,especially the weak and impatient longs.

i, personally, welcome low premium in shanghai, because i want to get in when premium is low.

judejin's picture

shanghai silver futures COT shows some perma shorts/hedgers

covered in June.  shanghai silver futures COT show long/short holdings at each brokerage level after market close everyday.   there are quite a few perma shorts/hedgers covered in june.

the shanghai futures market is much more transparent than crimex.

Motley Fool's picture

@jy896 - reposted from old thread

I have previously tried informing and presenting different points of view. Suffice to say that not go to well.

Recently I have tried simply posting some pertinent facts and allowing others to do their own due diligence. This makes me a jackass too it seems.

Honestly I don't see that I can win against such sentiments.

"If it is that LBMA is by far the decisive factor in PM price discovery, then logically it would follow that no major changes in pricing would occur when LBMA is not active -- or that if such a rare occurrence should happen, it would be immediately be undone by the 'true' price discovery on LBMA the following day. Do you REALLY think that is what's happening? If not, what IS it that you think is happening?"

The LBMA 'market' consists of a network of individuals, working on the bullion side and representing bank trades, that are in constant communication through telephone, email and internet. It is not a electronic venue as such, but rather a group of interconnected individuals. Hence this market is only not active when no two banks are open at the same time. Given the timezone differentials, this isn't a lot of the time.

My own investigations into this subject was such a long time ago that it is hard for me to recall exacting sources of easy introductory material.

Furthermore I am far from an expert on these things, just a curious layman with a penchant for facts.

For me to suggest actual industry experts whose views to research here, such as Bron or Jeff Christian, is also a losing proposition here, given the ludicrous conspiracy theories that are held here as a matter of commonality, based on flawed understanding of the markets, and rationalization in the face of lack of facts.

The LBMA + OTC is the market. The other tiny things such as COMEX are sideshows.

The banks do work in those markets, because of arbitrage.

The one overriding motive for banks are profits, and as such where there are profits to be made, that is where you will find them.

The costs for the banks of trading on the COMEX are much higher than in the LBMA or OTC markets, and as such they avoid them like the plague(profit motive) unless there is some money to be made in arbitrage.

Anyhow, I am tired of trying to explain things, when all I am met with is vitriol, so I don't bother as much anymore, and I think my reasons are sufficient.

Strongsidejedi's picture

Settlement of gold futures with shares in GLD?

@motley fool -

I read your posting above regarding the role of LBMA.

Isn't the issue the LBMA vault and how much gold in the vault has already been hypothecated?

I was under the impression that the GOFO deals with the LBMA vault as part of the leasing/loan collateralization.

YaMasuta's picture

YaMasuta - The art of Automated Trader Signal Detection

YaMasuta

I have been developing a web-based highly advanced Analytic software robot called “YaMasuta”.  I decided to start sharing my software robot analytics of the metal even though YaMasuta will not be live on the Web until September this year on www.YaMasuta.com as beta version.

YaMasuta is a cutting edge intelligent signal detection robot. YaMasuta is designed and developed to automatically analyze and detect trading signals for the global stock markets and the currency and metal markets.

The secret analytic engine of YaMasuta is the ability to measure Bull and Bear power and detect the hidden signals of when to buy and when to sell. YaMasuta can analyze the entire world markets of stocks and currencies in matter of a few hours while it would take an army of analysts many months to do the same.

I will now share the Gold and Silver Analysis according to YaMasuta for the past year. The Silver and Gold markets are analyzed using their ETF representation, namely GLD, UGL, and SLV and AGQ. I will start sharing YaMasuta Signals for these markets as YaMasuta produce them.

Let us first look at what a watch list looks like on YaMasuta, see image below.

Now let us look the AGQ which YaMasuta made $3M out of $1M starting account for the past year from today date; see figure below.

The last signal YaMasuta made over 60% profit on AGQ and over 30% on SLV on the short side and still short until yesterday close. As you can see YaMasuta still short since the last signal on Feb 11, 2013; see figure below.

However; YaMasuta just switched to a Long position yesterday on Gold as can be seen from the chart below since the Bull Power crossed the Bear Power as you see from the image. YaMasuta has not yet switched from Short to Long on Silver since usually YaMasuta goes long after confirmation of the signal so we will wait and see what YaMasuta will produce over the next few days. However, since YaMasuta gave a buy signal on Gold I would say that this signal could probably apply to Silver as well but may be Silver is lagging according to YaMasuta.

The Gold Bull power is now standing at 96% vs. 4% of Bear power; see below.

The Silver Bull power is now standing at 97% vs. 3% of Bear power; see below.

If The Bear Power crossed to the upside and stay there for confirmation, it is usually a strong short signal and if the Bull power crossed the bear to the upside as we are witnessing now and gets confirmation then it is a strong long signal.

Please note that YaMasuta analyzes the market after the close every day for all stocks, currencies and metals. YaMasuta has a dynamic version where it can analyze on a minute by minute basis but this version is only available for commercial companies who have access to live market data.

I am just sharing my robot signals; please do your own technical and fundamental analysis to discern your own signals as you like since YaMasuta also makes mistakes and give the wrong signals in some cases as you might know the market is totally unpredictable. YaMasuta is being developed to be a highly advanced engine to help in confirmation of trading strategy and may be help us defend against the evil powers who are trying to rid the markets of any normalcy by knowing the true power of the bears and the true power of the bulls and then choose which one to ride. There many functionality in YaMasuta which will be revealed when the beta version released. YaMasuta is for all levels of traders and I hope to go live in three month time frame.

May be we should unleash the Dynamic YaMasuta at JPM and companysmiley.

YaMasuta

philipat's picture

My 2 Cents

I am not as wildly optimistic as Santa et al because we have seen naked short selling result in hundreds to the downside, whereas massive short covering results in only tens to the upside. The market remains rigged towards the shorts. But, as expressed in earlier posts, I was of the opinion that the bottom was in and that, arguably, the 1180 and 1220 dips represented a double bottom technically.

Given strong ongoing physical demand, the GOFO data and Comex Inventory situation, I can't see that the gamble to double down by specs would be worth taking. The tide is moving against them and doubling down to the extent needed to create any impact would be enormously risky at this stage and would potentially dig a deeper, very,very deep, hole. Sometimes you have to know when to fold 'em and take losses before they get out of control? But I'm sure we can expect a few minor "See what happens" attacks, like from the London monkeys today. Nothing moves up in a straight line.

philipat's picture

@Turd

For some reason, that link to The BurningPlatform triggered a Trojan alert in Avast and crashed my Browser. Probably a falso positive but unusual as Avast Professional version is normally very reliable.

Sad-descent's picture

@philipat

I use Avast! professional as well and it loaded for me without an alert. (although the site did load slooooowly)

Peoples Front of Judea's picture

MINERS ?

Thinking of getting a few hundred pounds of miners stock. I don't know a thing about them any suggestions would be appreciated...And i won't hold anybody responsible if they tank..it's my choice . I just think there are some big gains to be made now ,and a few hundred pounds is worth the risk.

Phil_UK's picture

Worth Considering - Are U sure U understand the COMEX Turd ?

Hi,

Thought this was worth posting. Questions the understanding of many bloggers (including yourself Turd) of how the Gold market works.

Not intended to troll, but think it's only fair to provide the info for members here to assess and draw their own conclusions. Perhaps spark some debate.

http://kiddynamitesworld.com/precious-metals-charlatans-freaks-of-the-industry/

Regards

Phil

Sad-descent's picture

Re: Miners

Many of the juniors are running out of cash, and will have difficulty getting additional funding, so be careful there.

GoldMania3000's picture

Miners

The best way to assess miners is to go to the experts. Brent Cook of explorationinsights .com is one way to find the best of the best from the perspective of a economic geologist. Brent's success has been very good over the years and has been in the business for 30 years.  He's expensive but if you get his newsletter every week there's more value then any other newsletter that covers mines as he breaks down the technicals of the coverage.   If you are going to invest in mines then you need to find the experts. Many things can go right or wrong even with the best evaluating a mine.  There are a lot of promoters out there and you really need to find people who know what they are talking about and have lived the business.  

The majority of the mines that i've been in haven't been hit that hard in this environment.  Some yes some no.  If you look at Brent's mines you see some down but some up..as much as 50% in some cases.  Take a look at Virginia mines for example..notice how that thing hasn't budged....why...there's a big story on that one that could leave you with a multi bagger or another 10%. But that's not for discussion now.

There are many other ways to find out about miners and conduct your due dillegence.  It's not just about price, it's about market cap, it's about strip ratios, it's about grade, it's about upside potential, it's about management, it's about political environment, etc.    Hype can work in this market but if they don't have the goods one day hype may come your worse nightmare.  

Most of the juniors looking for cash don't deserve it.  They should go out of business.  Did you see Kaminak gold raised money at .95 cents a share when their share price was at .71 cents.  Why is that? There aren't many, but there are some good solid assets out there.  

bernard's picture

30 day and Yearly Premium Charts for Physical Products

I hope this rally has legs, what do you think these premium charts are telling us?

@ www.CompareSilverPrices.com & www.CompareGoldPrices.com I just added 30 day and 1 year rolling charts of physical price vs. premiums for all the popular silver/gold products

 

 

 

SilverSurfers's picture

wow

Ahead Of Tomorrow's Hearing On Goldman And JPM's Commodity Cartel

The Government has been reading my stuff.

http://totalcontrol.blogtownhall.com/

Its all there, and in your face.

Mr Mike Capro Senator ID
Senate Committee on Banking
Hearing on JPM and the Gold Cartel

I have written a 160 page document that lays out the case against JPM and the Gold Cartel. It is confidential, as it describes how to sue JPM and take them down for manipulating commodities gold and silver market, racketeering  RICO, breach of stock holding fiduciary, fraud, interference, treason, and sedition against the USA. It lays JPM nefarious activity taking over from Goldman Sacks in 2009.

I am willing to send you a copy for the ammo at the JPM hearing, if you wish and if you contact by email requesting the same.

Derrick Michael Reid, BS JD

http://totalcontrol.blogtownhall.com/2013/07/06/usa_attack_plan_b_on_tbtf_tbtj_greedster.thtml

http://totalcontrol.blogtownhall.com/2013/07/05/usa_fed_rnc_dnc_cia_nsa_jpm_conspiracy.thtml

http://totalcontrol.blogtownhall.com/2013/06/21/usa_mobster_greedsters_banks.thtml

http://totalcontrol.blogtownhall.com/2013/06/12/usa_freedom_v_tbtf_tbtj_greedsters.thtml

http://totalcontrol.blogtownhall.com/2013/06/12/usa_criminals_and_traitors.thtml

http://totalcontrol.blogtownhall.com/2013/06/10/usa_treason_by_bullion_banks.thtml

http://totalcontrol.blogtownhall.com/2013/06/06/usa_strike_on_the_evil_empire.thtml

http://totalcontrol.blogtownhall.com/2013/05/29/freedom_v_tbtf_tbtj_greedsters.thtml

http://totalcontrol.blogtownhall.com/2013/07/08/usa_rampant_evil_mala_en_se.thtml

If Capro office contacts me, I will prepare a declaration, and have the 160 page attack plan admitted into the record at the senate hearing.

Gonna rock their worlds. LOL!!

And they are smart enough, to get it, completely. LOL!!!

====

Mr Mike Capro, Senator  ID

If Capro office contacts me, I will prepare a declaration, and have the 160 page attack plan attached along with tfmetalsreport.com profile, showing expertise in the bullion markets, all 3 documents to admitted into the public record at the senate hearing. Senate Members are smart enough, to get it, completely.

http://totalcontrol.blogtownhall.com/

http://www.tfmetalsreport.com/users/silversurfers

Please print out my profile at tfmetalsreport.com for Derrick Michael Reid, aka Mad5Hatter, as part of the record to be admitted as part of the public record, showing I, Derrick Michael Reid would qualify as an expert in the bullion markets. It is 100% accurate.

Yours, Derrick Michael Reid

Willy's picture

Silver

Down 40 cents this morning. A little much no??? Just speaking out loud.

Bobbejaan's picture

A Picture (or Two) speaks a Thousand Words .....

Motley Fool's picture

strongsidejedi

I am in no way trying to say that the current gold market models are sustainable or reasonable, and yes there has been some collateralization, but given the opacity of the relevant markets the most we can do is try and make guesses as to the amount.

"PS. It is tempting to think about the various indicators that we observe as the cause of what we expect to happen, but I don't think about them in that way. Instead, I think about them as being similar to the gravitational effects we can see that let us know that a black hole exists even though we can never see or fully understand the black hole itself. These things we watch are simply a few of the visible symptoms of a vastly more complex yet invisible black hole." - FOFOA from a post put up today

Willy's picture

GDX

Only down .58 percent in early trading. Good sign.

emotionallyrational's picture

Financial shifts similar to tectonic ones?

Does anyone here feel like we are on the cusp of a landscape altering event?  One which will define how we live for the rest of our days? Everything that we build and rebuild on in the future will be affected by this if it does come to pass.

I feel that what we will be living through a time that will not only be historical, but undoubtedly very trying for most of us.

It seems like there are so many signs that point to how the very foundations we are standing on have lost their integrity. Slight tremors get felt from time to time (2008 Bank failures, Downgrades of debt, MFGlobal..), news from neighbours of rumblings from afar (Greece, Cyprus, Iceland, Dubai, Spain, Italy, Middle East, Parts of Africa). We know we live in an earthquake zone (45 years into a pure fiat system), and history tells us what happens when we live along plate boundaries (Weimar/French Revolution) or beneath volcanoes.

Yet most stand idly by.

Are we going to do something about it? We going to move from where we stand? Are we going to alter our circumstances? Or shall we keep tilling the land while the smoke bellows out from that Mt on the horizon? Everyone else doesnt care so why should we? It was smoking yesterday as well wasnt it? Hasn't it been this was since we were little? I am sure the people in the halls of power will warn us when the time is right. WHY WORRY TODAY?

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