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

379
Tue, Feb 26, 2013 - 9:06am

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".

Video unavailable

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.

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  379 Comments

Grublux
Feb 26, 2013 - 9:08am

First?

Ah well second it is! Thought I snuck by there

paulindoon
Feb 26, 2013 - 9:10am

Oh come on now guys - no way

Oh come on now guys - no way did you view the vid before you posted.

Okay I'll confess!! I also have not viewed the vid BUT I did read TF's message.

Groaner
Feb 26, 2013 - 9:12am

JPM is laying off 4000 crooks!

I guess they see the forest through the trees.. time to cover their illegal naked shorts too.

murphy
Feb 26, 2013 - 9:12am

1st?

1st? Must have something to do with cycles.

Dan Fogelberg & Tim Weisberg - The Power Of Gold (w/ lyrics)

Dan Fogelberg (1951-2007) From the 1978 album, "Twin Sons Of Different Mothers." Lyrics:

The story is told of the power of gold and its lure on the unsuspecting
It glitters and shines, it badgers and blinds
And constantly needs protecting
Balance the cost of the soul you lost with the dreams you lightly sold
Are you under...the power of gold
The letters and calls got you climbing the walls
And everyone wants a favor
They beg to remind you of times left behind you
But you know the past is a loser
The face you're wearing is different now
And the days run hot and cold
Are you under...the power of gold
You're a creature of habit, run like a rabbit
Scared of a fear you can't name
Your own paranoia is looming before you
And nobody thinks that it's a game
Balance the cost of the soul you lost
With the dreams you lightly sold
Then tell me that you're free of the power of gold
The power of gold
The women are lovely, the wine is superb
But there's something about the song that disturbs you
The women are lovely, the wine is superb
But there's something about the song that disturbs you
The women are lovely, the wine is superb
But there's something about the song that disturbs you

Cobalt Silver
Feb 26, 2013 - 9:13am

Prepare to dive...

The Bernank is testifying at 10 am in Warshington. If past performance is any indication put off your trip to the LCS until this afternoon.

Joe Dokes
Feb 26, 2013 - 9:15am

Yay - Top Ten

A first for me.

Joe

treefrog
Feb 26, 2013 - 9:15am

suxth

6th!

marakai
Feb 26, 2013 - 9:17am

Me too. Thanks turd for all

Me too.

Thanks turd for all you do.

Urban Roman
Feb 26, 2013 - 9:21am

I'd definitely avoid the miners

... remember what SRSRocco keeps posting ...

The miners are being systematically driven out of business. Unless there is a drastic increase in the metals, it won't be worth trying to mine them in a couple years.

ivars
Feb 26, 2013 - 9:22am

I wonder if what Japan is

I wonder if what Japan is trying to do now is some kind of a blueprint for USG/Fed action in near future? Kind of a lab test of heavy artillery inflation targeting from below. Nominal GDP targeting.

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Key Economic Events Week of 10/21

10/22 10:00 ET Existing home sales
10/24 8:30 ET Durable Goods
10/24 9:45 ET Markit flash PMIs
10/24 10:00 ET New home sales
10/25 10:00 ET Consumer Sentiment

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
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10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
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10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
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10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
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10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
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Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
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9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
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9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

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