Gold? Silver? The Miners?....All Three?

While kicking around YouTube last night, I found this interesting video.

This video is an interview of Jay Taylor, who is an analyst and a radio host. He discusses the metals, the miners, the economy and even the gold standard and he does so from the point of view of a "Turdite" so I thought you'd find it informative and compelling. It might even be a good one to send along to family and friends who are "on the fence".

TF

12:40 p.m. EST UPDATE:

I'm extraordinarily busy today so there is no time for a full, new post. However, as you've noticed, The Bernank has thrown us a few bones today in an attempt to talk up the stock market and increase his beloved "wealth effect".

I've noticed several requests for updated charts so I've posted them below. As we discussed yesterday, there are stages and hurdles in every recovery and the action today has boosted us through several. This is good as it greatly increases the pressure on the existing shorts, particularly those that were late to the game and were only sucked in last week. And that is where we will find our "critical levels".

First of all, we need to put today in the books without giving too much back. As I type, I've got gold near $1613 and it simply need to close above $1600 for our recovery purposes. IF we get something above $1615...even better! In silver, I really want to see us close above $29.20 and I've got a last of $29.34. Keep your fingers crossed.

As mentioned above, each metal now has a "critical level" and those can be found by looking at the price action since the beginning of the year. Recall that back on Jan 3 and 4, the metals were shoved lower and gold found a bottom near $1626. As price swooned two weeks ago, it became clear to nearly everyone that the $1626 level was going to be important support and, below there, the shorts would find plenty of sell-stops to harvest. Taking advantage of thin, overnight trading, The Bad Guys were able to swamp $1625 in U.S. wee hours of Friday, the 15th. Once below there, all sorts of tech-trading HFTs and momos were drawn into the short trade and the result was last week's cascade down to a low of $1555.

Almost all of those trades are now under water. If I were a fresh short, I'd be almost panicky here with a very itchy trigger finger. My only hope is that we stay below $1625 and then move back lower. In desperation, I may even double-down in the hopes of rescuing myself.

So there you have it. The "critical level" in this recovery is $1625. In silver, the commensurate point on the chart is near $30.20 so that is the other critical level. Watch them closely the rest of this week. WHEN price finally recovers through those levels, I expect a rapid return toward the levels sustained before the Chinese New Year, when The Forces of  Darkness felt compelled to begin this current event...roughly $1670 in gold and $31.50 in silver.

379 Comments

Puck T. Smith's picture

@groaner: Ron Paul is not in

@groaner: Ron Paul is not in congress any more.

Groaner's picture

Puck

I know... who else is there with any integrity?

The Watchman's picture

Nice Spike

Live New York Silver Chart [ Kitco Inc. ]
ABQBear's picture

Yeeee haawww!

FUBM!

Pining 4 the Fjords's picture

I notice that JohnnyDow isn't wieghing in today

Shocker.  Also amazing that LickSpittal and other "member for 1 day" sages of the interwebz are not weighing in on this action.  And where are the people hashing on Turd for misleading his flock and raking in cash from the gullible?  Where are the folks who harshly criticize him for the "fools errand" of calling a bottom in gold ad silver based on COT numbers and his TA?  I, for one, am greatly saddened that these wise and helpful people are not here today to help this community of ignorant dupes to make sense of these markets.  So sad.

(P.S.   Cha-Ching!)

lostinspace's picture

wait for it...

koan's picture

Turd/other TA guys and gals,

Turd/other TA guys and gals, what levels are we looking at breaking/holding etc for some confirmation this is the real deal?

Must be jaded (and certainly not complaining) as big a move as this looks - still not even reclaimed where we were a week ago so can't stop thinking another false dawn, dagnammit!

Silver looks like it's still within the range started last week. Gold looks up and out of it.

Nick Elway's picture

@RLhundred Rickards permalink

Thanks RL for the Rickards suggestion, I agree it is one of his best interviews.

I think this link will last:

http://www.kitco.com/KitcoNewsVideo/index.html?v=13-02-25_James_Rickards_1

SilverTree's picture

(No subject)

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Silver_investor's picture

@lostinspace

Stop that! It's too distracting.

Robespierre's picture

Andrew Maguire was right !!!! All aboard the GOLD TRAIN...

clip_image004

ivars's picture

Strange, could it be a bull

Strange, could it be a bull trap? Mighty rapid rise on expiry day.

Puck T. Smith's picture

Wouldn't it be nice to see

Wouldn't it be nice to see these charts hold for a couple of days?

In other news:  I don't think I've mentioned it here, but I have been struggling with a medical condition recently.  It appears to be Achalasia. The net effect is I cannot eat solid food and even things like broth and yogurt--what I've been living on for a couple of months--only stay down if I eat them very slowly.  The net result is I've lost almost 40 lbs since around Thanksgiving.  I was never very heavy to start with, but I am hovering around 100 lbs right now.  I've had some preliminary tests that seem to indicate it is Achalasia and I've talked to a specialist who is going to be doing endoscopy on me later today to make a real diagnosis.  If it is Achalasia there is a short term procedure where he will insert a balloon into my lower esophagus to expand it.  If that is successful it means I will be a good candidate for a surgical procedure which is the most effective treatment for what is essentially an incurable condition.  All I care about right now is finally being able to eat a good solid meal again.  If all goes well that may happen soon.  In the meantime, I am literally wasting away.

Sorry if this is more information than anyone wants and that it is off topic.  I just wanted my friends here--and I count you all among my friends in as much as that's possible online--to know what is going on.

I'll have more information later this evening when I get back home.

Keep stacking.

AlienEyes's picture

Au + $23

THAT's what I'm talkin' 'bout !  smiley

Sad-descent's picture

@RationalMind

I continue to hold miners because I am a sucker for punishment and abuse...My miners have bent me over, and done unspeakable things to me...It is a sick relationship, but I just can't let go. 

thatguy007's picture

@koan

I'm watching $1650Au and $29.60Ag

Airgead's picture

Funny

I could swear that the lady doing the interview is a computer voice lady...

Marblesonac's picture

Puck

Best of luck, and I hope you get well soon.

Groaner's picture

GS sell call.. duhh

Grublux's picture

We reached our 1%

allowed for the day

Groaner's picture

You would think the miners would be rocking too

They never want both going up at the same time..

If the miners get down a lot more today, then bullion may be hit tomorrow.

SPQR's picture

Strange, could it be a bull

Yes, I agree.  Let's not crow too loudly from the top of the fence post....yet

¤'s picture

Puck

Sending some positive thoughts your way.  Hang in there yes

ClinkinKY's picture

We Just Want To Pump You Up

Federal Reserve Chairman Ben S. Bernanke defended the central bank’s unprecedented asset purchases, saying they are supporting the expansion with little risk of inflation or asset-price bubbles.

We do not see the potential costs of the increased risk- taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery,” Bernanke said today in testimony to the Senate Banking Committee in Washington. “Inflation is currently subdued, and inflation expectations appear well anchored.”

Read more:http://www.bloomberg.com/news/2013-02-26/bernanke-defends-asset-purchases-as-benefits-outweigh-risks.html

hammerman's picture

great call

turd...  you called the bottom near perfectly....   andys trade service is smoking hot...  real m0ney maker.... soooo easy

indosil's picture

Loving It

I am simply loving today's action....but Sequester hitting two days from now....i guess first notice day is on Thursday.....

I believe we will see Gold & Silver rise at Asian open tomorrow & continue at the Euro open..keeping my fingers crossed

ClinkinKY's picture

Good luck Puck

I hope you get some good news today. Kinda' puts everything else in perspective, doesn't it?

UraniumSprings's picture

good luck Puck

It used to be that when friends went to the doctor I would think "I hope they fix it."

Lately "I hope there's a diagnosis" seems more common.

Not sure if this is a function of getting older (my friends and I have more "interesting" conditions), or if doctors have never really been that good and I'm just figuring it out.  Either way, that kind of weight loss is alarming; hope they have some good options for you.

Bill of Rights's picture

Austerity USA begins March 1st

Austerity USA begins March 1st: 600,000 food stamp recipients will be cut from the program, Millions on unemployment will see their checks cut by 11%, 700,000 jobs are expected to be lost, and 70,000 children kicked out of head start… | InvestmentWa
 

 In the first week of March, a laid-off person living on $300 a week in unemployment benefits is liable to find a surprise in the mailbox: notification from Uncle Sam that come April the check will be $33 lighter.
“Sequestration,” that arcane budget term consuming Washington in recent weeks, is about to move from political abstraction to objective reality for tens of millions of Americans. Barring an extremely unlikely last-minute deal, about $85 billion is set to be cut from military, domestic and certain health care programs beginning Friday.

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