(Reuters) - Japan sold the yen for the second time in less than three months after it hit another record high against the dollar Monday, saying it intervened to counter excessive speculation that was hurting the world's No. 3 economy. (Sounds like Nixon in 1971)
The intervention vaulted the dollar more than 4 percent higher (Yen 4% lower) , which would mark its biggest one-day gain (Yen loss) in three years, and Finance Minister Jun Azumi said Tokyo would continue to step into the market until it was satisfied with the results.
"We started currency intervention this morning in order to take every measure against speculative and disorderly moves and to prevent risks to the Japanese economy from materializing," Prime Minister Yoshihiko Noda told parliament.
Ok, so what does this look like on the chart, when finance ministers intervene in the markets ?
Here it is :
Looks awfully similar to this gold chart no ? But this is all conspiracy right.....
So there you have it. The G20 is smashing down the gold market to support government bond prices. As physical gold holders, we have no idea what the real price of gold is. But the propaganda machine can paint whatever price they want to make us look wrong. All we can do is keep soldiering on until they lose control. When that happens, nobody knows. Its a tough time.
Fast forward to 5:41 of this clip. And when they start talking about silver, FF to 9:48. Nobody can lay out as clearly as Chris Powell.
Hi, M.
ReplyDeleteIt's amazing how the acolytes can't conceive that a falling POG might be due to shorting and not just long withdrawl.
Has anyone caught the major flaw in FOFOA'a comparison of gold to fine art? I pointed this out in my last comment over there but it was conveniently deleted. Didn't want the contributors getting wise, I guess.
Hang on to your miners, boy. As we walk into this valley of the shadow of death with the HUI possibly going to 100 as per Rambus, the only longs left will be the mathematicians and K-wavers. All the goldbugs will have capitulated and not be around for the reversal.
Take care, paesan.
Hey buddy...
ReplyDeleteI cant speak for FOFOA on fine art and I missed your comment there. I think he was just trying to explain a concept in that piece.
But I don't agree with you on your take on interest rates vs the price of gold. Don't you think that there is a high probability that the Fed to be so far gone that they won't have the ability to ever make rates positive ?
I will never sell anything that is in a bear market. So I am holding even if some of my miners go bankrupt. I'd rather have the money go to money heaven. And I don't necessarily agree with FOFOA on mining stocks.
The miners are pretty much making $150/oz after all-in costs @1300 gold. Nobody is talking about this, but if gold moves up to 1450 then net cash flow for these boys roughly doubles. A 10% move for bullion is a 100% move in cash flow for the miners in this state of affairs. This is leverage. Imagine gold @ 2650 then cash flow is up 10-fold,yet the bullion holder will only have a double and no dividend. If anything this two year cyclical bear has forced these miners to get really lean and efficient.
ReplyDeleteAs I type now, I would like to see the HUI close back above the June low of 206 and do so throughout next week when the market is at full volume. Newcrest had a monster night at 8% so that might be a preview of today. We'll see. After the last 2 years, I'm shell-shocked and always wary of Treasury intervention, but eventually Mother Nature will win.
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