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goldminingXpert (29.37)

Gold: The Joke(Rally) Is Over

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September 18, 2008 – Comments (7) | RELATED TICKERS: GLD , SLV , UUP

The ridiculous gold rally died when it became clear the world isn't ending. Since my post last night, the Swiss pound (my inflation recommendation) dropped 1%, gold dropped 7%. Gold bugs root for economic armegeddon but once again, their dark visions remained unfulfilled. As is always the case, gold gets you beheaded when it turns downwards. As there was no basis other than fearmongering for the gold rally, it plunged, of course, hard and fast. Gold, along with bonds, should continue to fall for the next week as stocks come off oversold. I own GLD puts and intend to sell at $780-$790 gold. We are in a deflationary depression... otherwise known as a disasterous time to own shiny metals. Even gold stocks were mixed to down in spite of naked short selling ban... garbage like Emcore and Sulphco were jumping 25% cause shorts had to cover, but the supposedly naked shorted miners dropped. Bwahaha. GMX will suggest when to go long metals... today isn't the day.

7 Comments – Post Your Own

#1) On September 18, 2008 at 9:48 PM, Harold71 (22.70) wrote:

For a gold miner you sure don't seem to like it.

The Dow is up another 200 points after hours, must be that deflationary depression.

Your argument has no logic; you do realize this.

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#2) On September 18, 2008 at 10:28 PM, jester112358 (28.69) wrote:

This so-called naked shorting problem is a huge myth.   Where is the data to back justify this hypothesis?  Companies with no earnings now and into the foreseeable future go bankrupt (or are bailed out).  Examples are WB, C, etc.  All of these have less than 10% of float held short and this fraction has remained constant as their short prices have fallen 80% in the last year.  Shorts just take profits, wait for "value investors" to rush in and then short again.  Just like people do on thumbs down picks in CAPS.  

You recommend the Swiss pound (for inflation protection) in the current "deflationary depression"? How many Swiss francs are there in the Swiss pound, or is the Swiss pound some crazy amalgam of the Swiss franc and British pound?  As Harold71 puts it:  your arguments makes no more sense than your moniker.

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#3) On September 18, 2008 at 10:28 PM, goldminingXpert (29.37) wrote:

bwahahaha! You amuse me--not in a good way.

"Point" #1 "For a gold miner you sure don't seem to like it."

Um, I don't like things that are crashing. Gold miners are down 50% since July and will drop more before the bottom. You like losing money? I don't.

Actually, I can't call this drivel points, I'll refer to this as Brainfart #2 "The Dow is up another 200 points after hours, must be that deflationary depression." 

You did catch the 500 point drop, and then the 450 point one this week? We are 3,000! 3,000 points off last year's highs. I don't consider losing 25% in a year to be inflationary! One day doesn't make a trend!

 #3 "Your argument has no logic; you do realize this."

Well, I don't know about my argument, maybe if someone with a brain attempted to refute it, I'd see whether my argument stands up or not. 

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#4) On September 18, 2008 at 10:30 PM, goldminingXpert (29.37) wrote:

bwahahaha! You amuse me--not in a good way.

"Point" #1 "For a gold miner you sure don't seem to like it."

Um, I don't like things that are crashing. Gold miners are down 50% since July and will drop more before the bottom. You like losing money? I don't.

Actually, I can't call this drivel points, I'll refer to this as Brainfart #2 "The Dow is up another 200 points after hours, must be that deflationary depression." 

You did catch the 500 point drop, and then the 450 point one this week? We are 3,000! 3,000 points off last year's highs. I don't consider losing 25% in a year to be inflationary! One day doesn't make a trend!

 #3 "Your argument has no logic; you do realize this."

Well, I don't know about my argument, maybe if someone with a brain attempted to refute it, I'd see whether my argument stands up or not. 

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#5) On September 18, 2008 at 10:31 PM, goldminingXpert (29.37) wrote:

bwahahaha! You amuse me--not in a good way.

"Point" #1 "For a gold miner you sure don't seem to like it."

Um, I don't like things that are crashing. Gold miners are down 50% since July and will drop more before the bottom. You like losing money? I don't.

Actually, I can't call this drivel points, I'll refer to this as Brainfart #2 "The Dow is up another 200 points after hours, must be that deflationary depression." 

You did catch the 500 point drop, and then the 450 point one this week? We are 3,000! 3,000 points off last year's highs. I don't consider losing 25% in a year to be inflationary! One day doesn't make a trend!

 #3 "Your argument has no logic; you do realize this."

Well, I don't know about my argument, maybe if someone with a brain attempted to refute it, I'd see whether my argument stands up or not. 

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#6) On September 18, 2008 at 11:03 PM, Harold71 (22.70) wrote:

I couldn't care less about mining stocks, they can go down... the gold PRICE is the key.

And so is this:

"The rapid-fire rescues of financial firms may end up tarnishing America's free-market reputation as the moves expose defects in the U.S. economy, undermining its standing with foreign buyers of the dollar and U.S. Treasury securities. "

Wake up dude.  Gold is going to go higher.  Oil is going higher.  The dollar, aka federal reserve note, of which they just printed up another 85 billion, is DEAD.  Deflation in stocks is not deflation in the economy.

I'm tired of your nonsensical drivel about King dollar!  Foreigners are itching to dump them! 

The joke is on you, are you're supposedly a gold bug!  It's annoying!  I like exclamation points!!!

"The world urgently needs to create a diversified currency and financial system and fair and just financial order that is not dependent on the United States."

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&date=20080916&id=9153042

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#7) On September 22, 2008 at 10:48 AM, RVAspeculator (28.79) wrote:

As gold rolls through $900 do you still think it is a "joke" rally?

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