This is a data packed article that challenges the notion that the US is actually picking up steam on the economic front and that QE won't be needed and the rest of the blather. BLS can come up with whatever BS they want but there is plenty of other data to suggest that employment and the economy are not nearly so rosy as the spin masters want you to believe and in fact, short of shock and awe levels of QE by the FED and UK in relatively short order, the global economy, is definitely in for a collapse and it may happen despite it, especially if the Fed and the ECB and other central banks are a day late and a dollar shy.
When I talked to the head of deliveries at COMEX NYMEX, I was like, 'What if 4% of the people want deliveries?' He said, 'Oh Kyle, that never happens. We rarely ever get a 1% delivery.' And I asked, 'Well what if it does happen?' And he said,'Price will solve everything' And I said, 'Thanks, give me the gold
Good follow up on Jesse's article about lease rates. I tend to believe that the central banks set these raids up, especially in a situation like we see in Europe, where large banks still have gold reserves and are having a major liquidity crunch. The central banks want all the gold but they want it at the lowest possible prices. Central banks know that the only real "money" is not a fiat currency and they are now trying to get thousands of tons they sold over the years back and at the same time they want to keep the price down. Manipulating gold lease rates and working with their associates at the exchanges to play with margins, they are in a battle to both obtain gold while keeping the price supressed. Now for the article:
Whenever Jim comments at times like these, people trying to preserve their wealth would be wise to listen in my opinion.
On a longer term basis we expect even higher levels and target a move towards $3,400 over the next 2 years or so. We are not yet on board with the idea of a move with the same magnitude as seen in 1970-1980 when the last spike in Dec 1979-Jan 1980 saw Gold almost double in price as Russia invaded Afghanistan. Such a dynamic would suggest a move above $6,000 but we prefer to take a more conservative stance and look for a move similar to that seen without that final event driven push at the high which was a “blowout top” in Jan. 1980
For long term wealth preservation, the patient deep pocketed people and entities know this is a great long term buying opportunity in my opinion because when the stuff hits the fan on just how deep the fiat rabbit hole goes, Zimbabwe II is in store for all fiat backed only by debt, which can never be repaid at current currency valuations, and gold is still the only real universally trusted money, just not yet a currency.
Jim Sinclair is one of the world's foremost experts on gold, currencies, trading and commodities and has been accurate on virtually every prediction on the price of gold he has made as to price goals even if the timing was slightly off. And who's isn't. This formula, is playing out even though in a bit of a convoluted way with the rising interest rates being capped by infinite monetization at the beginning rather than the end but the results are the same, infinite debt and credit leading to infinite internal monetization, leading to currency debasement and economic stagnation. While Bernanke is hedging his time, possibly waiting for a massive market sell off for political cover, the longer he waits, the less effective his printing press will be. I am seeing each phase of this formula playing out. It is vital for long term investors who are seeking to preserve their wealth to understand this formula in my opinion. The Fed has painted itself into a corner, QE to Infinity or Default in the death of existing financial order in my and I believe Jim's opinion.
Hi and thanks for being a member here. For the time being I will be doing most of my writing at the advertising free WEB site called the Duffminster Times
There is a community of excellent minds at that community and it cover a vast range of subjects. For serious commentators it allows for lots of opportunity to expression opinions.
Over the Weekend Governments decided they did not like the direction of the stock market, especially the increasingly in trouble and insolvent banks.
Governments are intent in either kicking the can down the road or papering over the problem by monetizing toxic sovereign debt where possible.