Re: Tonight. I Have No Idea.

492
122
Sun, Aug 7, 2011 - 1:26pm

It's Sunday in the U.S., a little after 1:00 EDT. The Globex opens in about five hours. There seem to be quite a few people who are interested in my opinion regarding how the metals will trade tonight and tomorrow. Frankly, I have no idea.

First of all, I've been on the record saying that I didn't think a ratings downgrade was coming. Oops. Shows you what I know. I am still stunned that it happened. Of course it needed to happen and AA+ is still too generous. A or A- would seem to be more fitting. However, since there is no principal risk in U.S. government debt (the Fed can print all the money they need to pay off bondholders), AA+ is OK, I guess. Now on the other hand, if S&P started taking inflation risk into consideration and began to factor in that you're really only getting 50c on the dollar back in principal purchasing power...well, lets just say that U.S. debt would be relegated to junk status. Regardless, U.S. debt is now rated AA+ and the effects of this will be far-reaching. We'll go into this in greater detail later this week when I have more time and can think more clearly. (For now, I'm a little hung over and I need a nap.)

As it pertains to the PMs...There is NO WAY that this news is not bullish. Extremely bullish. In the intermediate and long term. What you don't know about is tonight and tomorrow. As we saw last week, when everything else is being sold, the PM "baby" often gets thrown out with the bathwater. Gold should open UP at least $50. It should trade UP $100 tomorrow. Will it? Again, who knows? Gold may open higher and then get instantly battered lower in a global rush for liquidity.

Just watch. U.S. debt gets downgraded but the POSX and the long bond will both probably trade higher in a flight to safety. Oh well, it doesn't really matter. Like I said, gold may be down tomorrow. Who knows? But what I do know is this: Gold will be higher a month from now. It will be higher six months from now and it will be higher still a year from now. In that context, what happens tonight is of no consequence.

I'll try to have an update this evening, after things have been trading for a while. Until then sit back, relax and enjoy the fireworks. TF

11:55 pm EDT UPDATE:

Too tired to type but I wanted to give you this update with these levels to watch overnight and into Monday.

Turd nite nite now.

About the Author

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turd [at] tfmetalsreport [dot] com ()

  492 Comments

  Refresh
¤
Aug 8, 2011 - 12:34am

Love this Asian action...

Video unavailable
exiledbear
Aug 8, 2011 - 12:33am

Feel a young vigorous bull market hitting its stride

Feel the '80s.

The Cure-HOT! HOT! HOT!
jlee2027
Aug 8, 2011 - 12:31am

Sydney

As soon as Sydney closes at 12:30 EST, PM prices take off. I've seen this too many times now.

Strongsidejedi
Aug 8, 2011 - 12:31am

AU 1702 and accelerating

God be with you shorts.

If you are short, do not fear. We are here even for you too.

RuNuts
Aug 8, 2011 - 12:30am

No Ag Slingshot?

Really? WTF?

Strongsidejedi
Aug 8, 2011 - 12:30am

Try again... Apollo Saturn lift-off

This is a once in 3 lifetimes event.
I want to thank you Mr. Ferg.

High Quality - Apollo 8 Saturn V rocket launch

Thank you for creating this community where we can all share in this historic moment.
For those of us who heeded advice and prepped, we are ready to help our neighbors and help this nation through this difficult time.

After the Crash - Part 2 - Wall Street Week Oct. 23, 1987

God bless you and your family. Peace be with us all.

stingbee30beardeus
Aug 8, 2011 - 12:30am

Love the 80s

Great years for Music....

The Police/Sting

U2

Depeche mode

The Cure

New Order

INXS

Peter Gabriel

Dire Straits

and many more...

exiledbear
Aug 8, 2011 - 12:26am

Feel the '80s

Echo The Bunnymen Lips Like Sugar (Lyrics)
ewc58
Aug 8, 2011 - 12:25am

  www.kitco.com The World

www.kitco.com

The World Spot Price - Asia/Europe/NY markets

SPOT MARKET IS OPEN ( closes in 16 hrs. 53 mins.)
Metals Date Time (EST) Bid Ask Change from NY Close
GOLD 08/08/2011 00:22 1701.00 1702.00

+37.60

+2.26%

SILVER 08/08/2011 00:22 40.08 40.18

+1.76

+4.59%

PLATINUM

08/08/2011 00:22 1719.00 1726.00

+3.00

+0.17%

PALLADIUM 08/08/2011 00:21 728.00 734.00

-14.00

-1.89%

beardeus
Aug 8, 2011 - 12:21am

Capitalism is what made

Capitalism is what made America great along with our Constitution and Christian upbringing. Our so called "capitalism" is not capitalism at all! More like corporatism. Capitalism is the system of free men competing with one another for better and greater output of whatever good or service they are selling. It is men competing to utilize capital best. I was at an antique store this weekend, looking for underpriced sterling and was so sad to see the past things that made America great. We were the biggest badasses when it came to ingenuity and discovery. We have lost that besides a few select companies.

We had the best items at the best possible prices. I wasn't around to see the younger years of America in fact I am an 80's baby. Sure I have my youth but would rather have years of saving, gold and silver.

I bought January 72 calls on SLV yesterday and impatiently waiting for the morning.

- Beardeus

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