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cbwang888 (25.67)

Oh! No! Gold is crashing ...

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10

March 14, 2012 – Comments (2) | RELATED TICKERS: GLD , SLV , UUP


If someone think 2% or 5% is crashing ... then what is up with the flesh crashing of 1000 DJIX points in May 2010? Gold miner stocks are hammered today like gold is really crashing.  

 

GDX is trading near 52W low while gold was still up 15% in 52W time frame after 15% correction from $1910.  

 

Call QE3 or not, ECB has already done 2 round of easing. LTRO is a creative name. 

 http://www.cnbc.com/id/46567837/What_Is_an_LTRO_Anyway  

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Essentially, they involve the central bank lending money at a very low interest rate to euro zone banks, which has led to the term “free money.” 

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Maybe the trading computers search the Fed statement with matching "no QE3" which trigger the selling?Has headline trading gone wild?   Or do I miss any fundamental shift in monetary policy?  

 

 

2 Comments – Post Your Own

#1) On March 15, 2012 at 8:17 AM, XMFSinchiruna (27.20) wrote:

Cbwang,

You did not miss any shift in monetary policy. You are feeling follow-on effects of the February 29 smack-down combined with a crafty game of Management-of-Perspective-Economics (MOPE).

3 U.S. banks just failed the latest stress test, and I believe those stress tests are themselves designed to offer the market less stressful scenarios to ponder than the truly worst-case scenarios of a systemic event in this raised-stakes game of leberaged finance. If Citi still can't pass a minimum capitalization threshold after all the official-sector support the bank has received, what does that tell you about the underlying state of the U.S. financial sector? 

Nothing has been solved. Time has merely been bought, at the cost of continually rising stakes. Debt continues to balloon. The European bailout has not taken credit events in Portugal, Spain, or Italy off the table.

The valuations available in quality pm miners today are of the sort one can wait a lifetime to see. Truly remarkable times. 

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#2) On March 15, 2012 at 12:43 PM, cbwang888 (25.67) wrote:

Sinch,

Have you wonder the true reason the valuation of PM miners are so low? They mostly don't rise as fast as the underlying metals but tumble faster. 

The money are created easily but they are in the hands of banks and governments. These guys are against the idea of gold and silver being money. They hate PM in general. Just when Ron Paul pull out his silver coin, just look at Benny's face.

Foreign central banks are forced  to print their own fiat money to buy bullions because of US  continue to debasing its currency.

Cheap money are flowing again, but they are controlled by only a few.

 

 

 

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