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XMFSinchiruna (26.54)

Nothing Strange Here!



December 19, 2012 – Comments (13) | RELATED TICKERS: GLD

Nothing to see here, Fools! Nothing at all is out of the ordinary nor defying logic.

Or: "Pay no attention to that man behind the curtain!"

Here is a 1-week chart of the U.S. Dollar Index:

Here is a 1-week chart of gold:

13 Comments – Post Your Own

#1) On December 19, 2012 at 11:29 AM, EnigmaDude (62.21) wrote:

you're right.  Nothing to see in a 1-week chart!

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#2) On December 19, 2012 at 1:11 PM, XMFSinchiruna (26.54) wrote:


I've been watching the gold and currency markets on an uninterrupted daily basis for nearly a decade, and I regularly converse with far more experienced folks who have been doing the same for 30 years or more. Periods of weak correlation between the USDX and the gold price have certainly been known to occur, but I'm not sure I've ever witnessed simultaneous, counter-intuitive movements of this magnitude before. Feel free to dismiss the charts as insignificant if you wish, but this is a highly unusual pairing of monetary dynamics.

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#3) On December 19, 2012 at 2:19 PM, XMFSinchiruna (26.54) wrote:

I am SO glad that Matt Taibbi chose to do exactly what he does! He is really phenomenal at it, IMO:

Great Read!

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#4) On December 19, 2012 at 2:39 PM, Starfirenv (< 20) wrote:

@ #3-  This guy too!! 


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#5) On December 19, 2012 at 6:35 PM, somrh (81.82) wrote:


I'm with Enigmadude here. Given any two data sets, it shouldn't be too hard to find small periods of high correlation between the two. It seems to me that such correlations are likely to occur just due to chance.

For another period of high correlation, here are prices in the first month or so of 1991 (using daily from FRED):


Is there any significane to that period?

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#6) On December 20, 2012 at 2:57 PM, XMFSinchiruna (26.54) wrote:

Touche, somrh! Well done!!!  :)

But there is no coincidence here... this gold market is blatantly manipulated and the key inflection point of $1,700 was a line in the sand for those seeking to limit gold's ascent to a controlled retreat. It's no accident that these efforts grew in intensity just as (and immediately prior to) the FED announces a new round of easing.

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#7) On December 20, 2012 at 8:40 PM, truleuneek (< 20) wrote:


if gold is manipulated, then are gold investors playing a fixed game?  Is it worthwhile to invest in these areas when bucking a stacked deck?

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#8) On December 21, 2012 at 9:42 AM, XMFSinchiruna (26.54) wrote:


No time to respond in full just now, but the answer to the second question is a resounding yes! :)

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#9) On December 21, 2012 at 10:07 AM, catoismymotor (< 20) wrote:

Re: #3

Thank you for the Rolling Stone story. Now I'm so sick to my stomach I know I'll be able to skip lunch.

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#10) On December 22, 2012 at 8:55 PM, eeibbay (< 20) wrote:


Slightly off topic question. Have you had a chance to see the Copper Fox BFS? or are you still following this company? I would be interested to hear your take on it and what you see Teck doing about it. 

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#11) On December 26, 2012 at 8:45 AM, XMFSinchiruna (26.54) wrote:


Thanks for the heads up! I had been keeping a close eye out for that FS, but somehow missed the release.

At first glance, I would say there is a slim chance the project could move forward in its present state. That's an extremely hefty price tag for such a modest IRR, and the majors are under intense scrutiny to produce far better returns for major capital projects of the sort. Therefore, converting that inferred resource will be of utmost importance.

That's not to say Teck won't exercise its option. It may well look past the present numbers at its own internal estimates, and play a lead role in the related work required. But because the numbers are not as solid as I anticipated, I'm not holding my breath.

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#12) On December 26, 2012 at 10:56 PM, skypilot2005 (< 20) wrote:

Why are (Smart) Investors Buying Fifty Times More Physical Silver than Gold?

By: Eric Sprott





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#13) On December 27, 2012 at 2:35 PM, eeibbay (< 20) wrote:

Thanks Sinchi

I agree the numbers are not as good as expected and I am hoping that they decided to be ultra conservative in order to get Teck to sign off on the project. I think the 171 million tons of waste rock are the joker in the pack here. This was classed as an inferred resource in the RE and as such can bring the IRR much higher. Time will tell....

thanks again for your thoughts


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