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Zynox · 09-18-2008, 06:58 PM

Some perspective on recent gold movements, detailing 'historic' proportions, as the economic house of cards falls:

http://www.kitco.com/ind/nadler/sep172008B.html

"Forty-eight hours ago we wrote that "gold, it must prove that it is made of the hard stuff and it is under direct gold bug pressure to quickly recapture $800 and then at least $845.

If in fact this is the TEOTWAWKI scenario for which they were loading up of late, then the time has come -and then some -to reap such benefits."

A near 12% ($90.00) meteoric rise in the metal today should more than validate any such expectations, as it represents the single largest one-day move in dollar and percentage terms as well.

The day began on a positive enough note, but things quickly spiraled into a storm larger than any in recent memory. As well, as any in not-so-recent memory. Like that of January of 1980. As then, we have a combination of outside, and outsized events coming into the picture at once. As then, we will have renewed calls for $1600 or $2200 gold. Unlike then, there is no inflation spiral but more like the opposite process.

We cannot address or base findings on trading room rumors and would rather wait for confirmation on particular stories, but the trigger for today's move may well have been the talk on the street that UBS was looking for 'help' from the Swiss National Bank. SNB has denied the story. Market psychology now has people starting to mention names that they have ever had grudges against and that is quite dangerous. Take that kind of potential headline, couple it with a money-market fund halting redemptions, add the Russian markets crashing, and top it off with the Dow losing 451 points at one point during the day, just after AIG's demise was averted yesterday. Proposed stiffer rules on 'naked' short-selling may have had quite a bit to do with equity position unwinds as well.

Tiny market such as gold's only needed a relatively small injection of buyers' money to make the type of move which we have been witnessing today. As we wrote the other day, the surprise was that it took so long to see a move of this magnitude."

Got Spirituality and Gold for Flexibility?

Namaste!

09-18-2008, 06:58 PM	#30
Zynox Avalon Senior Member Join Date: Sep 2008 Location: Ann Arbor, Michigan Posts: 243	Re: Gold & Silver Q & A Some perspective on recent gold movements, detailing 'historic' proportions, as the economic house of cards falls: http://www.kitco.com/ind/nadler/sep172008B.html "Forty-eight hours ago we wrote that "gold, it must prove that it is made of the hard stuff and it is under direct gold bug pressure to quickly recapture $800 and then at least $845. If in fact this is the TEOTWAWKI scenario for which they were loading up of late, then the time has come -and then some -to reap such benefits." A near 12% ($90.00) meteoric rise in the metal today should more than validate any such expectations, as it represents the single largest one-day move in dollar and percentage terms as well. The day began on a positive enough note, but things quickly spiraled into a storm larger than any in recent memory. As well, as any in not-so-recent memory. Like that of January of 1980. As then, we have a combination of outside, and outsized events coming into the picture at once. As then, we will have renewed calls for $1600 or $2200 gold. Unlike then, there is no inflation spiral but more like the opposite process. We cannot address or base findings on trading room rumors and would rather wait for confirmation on particular stories, but the trigger for today's move may well have been the talk on the street that UBS was looking for 'help' from the Swiss National Bank. SNB has denied the story. Market psychology now has people starting to mention names that they have ever had grudges against and that is quite dangerous. Take that kind of potential headline, couple it with a money-market fund halting redemptions, add the Russian markets crashing, and top it off with the Dow losing 451 points at one point during the day, just after AIG's demise was averted yesterday. Proposed stiffer rules on 'naked' short-selling may have had quite a bit to do with equity position unwinds as well. Tiny market such as gold's only needed a relatively small injection of buyers' money to make the type of move which we have been witnessing today. As we wrote the other day, the surprise was that it took so long to see a move of this magnitude." Got Spirituality and Gold for Flexibility? Namaste!