Ok what is up the huge PM spike

[platinumdude]

Gold is up $38 and silver up $1.59, and the dollar is up as well. Is there some war coming soon that we don't know about? Europe economy about to go bust?

[Ponce]

No Plat........we printed more dollars and PM went up........simple.

[sirgonzo420]

Raised debt ceiling.

[platinumdude]

But the dollar going up slightly seems like a farce. I would of expected it to go down.

[solid]

Raised debt ceiling.

Maybe everyone's finally realizing there's no point to having a debt ceiling, if they just keep raising it.

[ximmy]

perhaps investors are starting to wake up to the fact that the Gooberment has no intention of rebuilding the economy...

watch metals rise and fall all the way up...

[Dogman]

Could it be that the Dow is down -265.87 ?

[oldmansmith]

Righty-right. Dow plunges, so where are you going to put your money? T-bills?

[Spectrism]

People are waking up to this clusterflug of political wrangling at the expense of the economy. They did nothing to help the country grow anything but more debt. In the process they are destroying the dollar.

[gunDriller]

Korea announced that they were increasing their central bank's gold holdings.

http://finance.yahoo.com/news/Gold-Prices-Spike-as-South-tsmf-2665445406.html;_ylt=AgS8xRK7Wnjd39B6aznCgFS7YWsA; _ylu=X3oDMTE1b2Mwb2s3BHBvcwM1BHNlYwN0b3BTdG9yaWVzB HNsawNnb2xkcHJpY2Vzc3A-?x=0&sec=topStories&pos=2&asset=&ccode=

"Beyond the safe-haven appeal of the yellow metal on a down day for stocks, Bank of Korea announced it has bought 25 tons of gold over the past two months. The stake is valued at $1.24 billion, or roughly $1,550 an ounce, and it marks the country's first gold purchase since 1998. Central banks tend to buy gold when they need to diversify or increase their holdings as mandated by the government and are not necessarily market timers, but they do buy as a long-term investment."


That's a little over 1% of this year's production - gobbled up in one day (1/365th of a year.)


what i am noticing is that the gold-* ratios are all UP -

Gold Oil -

Was $1500/ $100 = 15 a few months ago, now it's $1650/ $94 = 17.5

The Gold Oil ratio increased from 15 to 17.5 in the space of about 2 months - an increase of about 17%. it will be interesting to see how that holds up.


side-note - glad to see Putin is telling the truth about Parasites in the US gov. too bad he didn't mention the J-word. guess he's being semi-diplomatic.

[osoab]

Bond yields moved lower too.


U.S. Treasury Yields (http://money.cnn.com/data/bonds/)



http://markets.money.cnn.com/bondsandrates/modules/chart.asp?type=yield



Maturity Last Yield Previous Yield
3 Month 0.05% 0.08%
2 Year 0.28% 0.26%
5 Year 1.23% 1.31%
10 Year 2.62% 2.74%
30 Year 3.92% 4.07%
data as of 3:00pm ET

[Spectrism]

But the dollar going up slightly seems like a farce. I would of expected it to go down.

Good observation... but rising against what? Other currencies that are worse! Look at what is happening to the dollar compared with commodities and precious metals. Foods are spiking too. If the dollar rises slightly compared to a fake currency, it is only a small consolation as both are screaming in free-fall toward the earth from 20,000 feet up.

[madfranks]

I'm wondering if today's move in PMs is due to all the implications of the past few days finally being factored in, or if something else is about to happen?

[oldmansmith]

side-note - glad to see Putin is telling the truth about Parasites in the US gov. too bad he didn't mention the J-word. guess he's being semi-diplomatic.


Semi-diplomatic? Or doesn't want an unfortunate "accident?"

[Spectrism]

Yes there is a war coming that you apparently don't know about, but I do. The global ecomomy is collapsing, countries are collapsing, fiat is collapsing...war is imminent!

Yes- but not yet. Just wait until we see the AMAZING earth-shattering events. If you like volcanoes, earthquakes and fire from the sky, then you will be happy.

(I hope to be going meteorite hunting over the next 18 months.... presuming I am still here and walking.)

I just had a little thought. Maybe we could hold off war with China by selling them land around Yellowstone and requiring them to occupy the land.
We can call the deal Caldera Heaven In North America.

[Serpo]

With gold holding above $1,600, today King World News interviewed James Turk. When asked about the action in the metals Turk stated, “Anyway you look at it, Eric, today was a big day for the precious metals. Both gold and silver came screaming back from the low made just before the London PM fix. Here's what I think happened.



After a weak start in Asia, both gold and silver then began to climb steadily despite the announcement of a deal on the US debt limit. I think that this strength in the metals may have worried the shorts. So before the London PM fix, gold was taken down in what looked to me like a blatant attempt to 'paint the tape' with a low price on the fix. However, it didn't work out that way.”



</frame>


James Turk continues:



“There was strong physical demand under the market waiting to buy on setbacks like that one. So the PM fix actually came in at $1623, some $10 higher than the morning fix. Gold and silver then kept climbing higher when the lousy manufacturing report was released. The economic data continues to worsen, meaning there will be more money printing from the Federal Reserve, which of course is bullish for the precious metals. So gold jumped to $1630 and silver to $40.



It would have been icing on the cake if the metals finally blew through these levels and kept climbing. Even though it didn't happen today, both metals made a good effort. Gold was probing resistance at $1630 for more than an hour, but the shorts won this battle. So the metals were weak on the close as a result of this minor disappointment that caused some short-term traders to dump what they bought earlier in the day.



Nevertheless, gold and silver look ready to resume their upward climb. I am still expecting some upside fireworks this summer. Gold climbed $125 last month, which is 8%. Silver jumped 15%. The big summer rally we have been expecting and talking about is underway. Another 8% will put gold at $1750, which is getting close to my longstanding target of $1800....






http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/2_James_Turk_-_Wave_of_Asian_Buying_to_Crush_Gold_Shorts_files/shapeimage_22.jpg












http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/2_James_Turk_-_Wave_of_Asian_Buying_to_Crush_Gold_Shorts_files/shapeimage_23.jpg






“It is very important that demand in Asia for physical metal has reappeared. I continue to be amazed how the Asian buying adjust so quickly to the rising gold price. Clearly people are worried about the train leaving the station without them, so demand for physical metal adjusts quickly to the reality of higher prices. After all, what would you rather own - gold or the dollar?”



When asked about the dollar Turk responded, “Every dog has its day, and that was the case for the dollar today. The Fed probably made phone calls to some friends and asked for help. The dollar was clearly on the ropes last week, and was lucky to make it to the bell when the markets closed Friday. Anyway, the dollar today again pulled back from the precipice, which has become part of the recurring pattern in recent months. The other part is the dollar bounces for a day or two, and then moves sideways until the next bout of selling.



You have to remember Eric that the commercials have a massive short position in gold that is severely underwater. What the commercials try to do is trade for short-term gains while the longer-term positions go against them as gold climbs relentlessly higher. They have this done for over 10 years, so this is nothing new to them. What they (the commercials) fear is the strong physical buying coming out of Asia because they are powerless to fight that tidal wave.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/2_James_Turk_-_Wave_of_Asian_Buying_to_Crush_Gold_Shorts.html

[1970 silver art]

The PM spike-up appears to be short-lived:

http://www.kitconet.com/images/sp_en_6.gif

Down again we go. :)

[JohnQPublic]

The PM spike-up appears to be short-lived:

http://www.kitconet.com/images/sp_en_6.gif

Down again we go. :)

Access market trades don't mean much. See what happens when Aisia opens and COMEX opens tomorrow.

[1970 silver art]

Access market trades don't mean much. See what happens when Aisia opens and COMEX opens tomorrow.

We will see. I do not trust this current run-up in gold and silver. I sense that a smackdown in the metals will happen very soon.

[1970 silver art]

I'm wondering if today's move in PMs is due to all the implications of the past few days finally being factored in, or if something else is about to happen?

Yeah something else is about to happen.................Gold and Silver getting smack down very soon. :)

[mick silver]

we may see a smackdown but we will never see the lows we all once saw .

[gunDriller]

we may see a smackdown but we will never see the lows we all once saw .

i wonder if they can smack it down to $1480.

[Eyebone]

I just noticed the London afternoon fix has Gold at 1008 BPs.

Thats a record too.

[mick silver]

i wonder if they can smack it down to $1480.

i have bad feeling ... i just cant seam to see gold going below 1550 .00 . to many people are getting scare of what there seeing from our gov

[1970 silver art]

i wonder if they can smack it down to $1480.

Do not rule out a smackdown. I still think that another smackdown will occur and I think that it is possible for gold to get smacked down to that $1480 level (and go lower from there) and for silver to get smacked down to $33 and go lower from there to bottom out at $26.00. If I remember correctly, after silver went from $48 to a low of $32, silver rallied back to $40 but silver has failed at least twice to close above $41 and I do not think that silver will close above $41 today. $41 appears to be a resistance level for silver.

[1970 silver art]

i have bad feeling ... i just cant seam to see gold going below 1550 .00 . to many people are getting scare of what there seeing from our gov

Mick, I agree with you about people getting scared about what our gov't is doing, however, I cannot shake that feeling that gold and silver will get smacked down very soon. I do not trust this current gold and silver up-move and the metals will get smacked down fairly hard but not as hard like we saw in early May. I also think that, in the end, 2011 will end up being another good year for gold and even though silver will probably bottom out at around $26 later this month (or Sept.) and will NOT hit $50 this year, the year 2011 will still end up being an "ok" year for silver (i.e. slightly up from the Dec. 31, 2010 close) once it recovers from the $26 bottom. Just my opinion.

[Spectrism]

Smack down? Hmmm... now how would they do that? If it was just a paper trade, like stocks or bonds, I could see that possible. And if we were in stable times with stable currencies, yes- that also would be possible. Effectively, they would have to increase the value of the dollar for metals to drop. We are just talking about a comparison between metals & paper.

I can think of one way they might pull that off.

Make trading of precious metals illegal without a license and hefty fees. Taxes on metals trade & ownership. Exemptions provided to friends of government and "legitimate" enterprises.

But the state of the dollar- and most currencies, is trash and getting worse. As our system implodes, I expect to see more cheap dollars dumped onto the market. We saw how the republicrats waffled and Boneher was on the verge of tears(isn't he always?) in this last go-around. This was the one chance congress had to reign in the tyrant's power and they failed. When things get real bad, they will let the treasury do anything.

The other possibility is the conversion to new world special drawing rights (SDR) as the currency. Digital and biometrically matched to track ALL buying and selling. I won't be participating in that.

[chad]

europe is in free fall. everyone keeps concentrating on the debt deal here in the u.s., but the real action is overseas. a whole continent is about to blow up.

[Dogman]

Italy and Spain are the latest, more sure to follow catching up to Greece into the slide into total meltdown.

[gunDriller]

i wonder if they can smack it down to $1480.

i wonder if some day we'll be asking that question about Silver.

[madfranks]

Yeah something else is about to happen.................Gold and Silver getting smack down very soon. :)


Do not rule out a smackdown. I still think that another smackdown will occur and I think that it is possible for gold to get smacked down to that $1480 level (and go lower from there) and for silver to get smacked down to $33 and go lower from there to bottom out at $26.00. If I remember correctly, after silver went from $48 to a low of $32, silver rallied back to $40 but silver has failed at least twice to close above $41 and I do not think that silver will close above $41 today. $41 appears to be a resistance level for silver.

Even after the incredible rally in PMs yesterday they're still opening in the green. Gold up $12 and silver up another $1. $41 resistance level? It's already about to break $42! Another few days like this and gold will blast through $1700!

[mick silver]

Mick, I agree with you about people getting scared about what our gov't is doing, however, I cannot shake that feeling that gold and silver will get smacked down very soon. I do not trust this current gold and silver up-move and the metals will get smacked down fairly hard but not as hard like we saw in early May. I also think that, in the end, 2011 will end up being another good year for gold and even though silver will probably bottom out at around $26 later this month (or Sept.) and will NOT hit $50 this year, the year 2011 will still end up being an "ok" year for silver (i.e. slightly up from the Dec. 31, 2010 close) once it recovers from the $26 bottom. Just my opinion.

if silver hits 26 then it will be a buy of a life time . cheap silver is over . way to may people buying now . my dealer called me and offer a buck over spot

[madfranks]

if silver hits 26 then it will be a buy of a life time . cheap silver is over . way to may people buying now . my dealer called me and offer a buck over spot

Just the other day at my favorite coin shop he had more silver than I ever remember him having before! Generic silver was plentiful at $2.50 over spot/oz. I think the high prices are encouraging people to sell too. Lots of joes who a couple years ago bought physical at $18 are probably selling, doubling their money in a couple years and laughing their way home.

[1970 silver art]

Just the other day at my favorite coin shop he had more silver than I ever remember him having before! Generic silver was plentiful at $2.50 over spot/oz. I think the high prices are encouraging people to sell too. Lots of joes who a couple years ago bought physical at $18 are probably selling, doubling their money in a couple years and laughing their way home.

Madfranks, that was a similar situation with me. When silver was around $34-$35, there were no silver art bars or any other type of silver for that matter to be found (except for SAE's at $5 over spot) at the main dealer that I go to but when silver stayed moved past $40, then there was a lot of silver art bars and other types of silver available for purchase at that same local dealer. When silver falls back below $40, then it will probably get bought up by some other local PM buyers. Make no mistake about it. There are more people buying silver now than a couple of years ago and they are watching for more pullbacks in silver.

[Joe King]

If there are more people than ever buying, how can it pull back if they don't first stop buying?

The only reason it's the price it is, is because it's being bought in sufficient quantity to keep it there.

[1970 silver art]

Even after the incredible rally in PMs yesterday they're still opening in the green. Gold up $12 and silver up another $1. $41 resistance level? It's already about to break $42! Another few days like this and gold will blast through $1700!

If silver is trying to make another attempt at hitting $50, then it will just end up being another failure (triple top?) and the JPM shorts will just smack it back down like they did in May. I do not trust this Summer gold and silver rally. I mean really...........Gold and Silver making a run in the Summertime? Something stinks here and it smells like another smackdown coming very soon that will take silver for a wild ride downward.

[Joe King]

What stinks is the govs monetary policy.

[1970 silver art]

If there are more people than ever buying, how can it pull back if they don't first stop buying?

The only reason it's the price it is, is because it's being bought in sufficient quantity to keep it there.

Somehow, I do not think that enough "small fry" people (i.e. people like us buying a few oz's at a time from a local dealer) are buying to cause the price to jump that much. I could be wrong here but I do not think that we "small fry" people do not have that large of an effect on the spot silver price.

[1970 silver art]

What stinks is the govs monetary policy.

Yeah that too. I am used to that nasty smell. That smell has been lingering for a while now. :)

[Joe King]

I meant over-all purchases.

ie little guys, big guys, whoever is buying.

[1970 silver art]

I meant over-all purchases.

ie little guys, big guys, whoever is buying.

It is still a manipulated market and we (as "small fry" people) do not have an effect on it IMO. Big buyers such as hedge funds and JPM and other big players can buy enough to make the paper silver market price go whatever way they want it go. That's my take on it.

[Joe King]

Right....and when you add all the buyers together, you get $41.64 as the current level of support.

[1970 silver art]

Right....and when you add all the buyers together, you get $41.64 as the current level of support.

I agree with you to some extent but people (like JPMorgan) are going to short it and bring the spot price back down. Like I said, it will get smacked down again. Just watch. If someone (JPM for example) wants to short it, then they will and that will overcome our buying "influence" and bring the spot price back down. The JPM shorts still have too much influence over the silver market.

[Joe King]

I suppose that only time will tell, right?

[1970 silver art]

I suppose that only time will tell, right?

Yep time will tell. We will just have to see what happens. I do agree with you in that buyers ("small fry" + large institutional buyers) will affect the spot price but the JPM shorts will still manipulate the paper spot silver price downward. Silver is not strong enough (yet) to overcome the JPM artificial manipulation. However, I think the long-term negative fundamentals (falling dollar, deteriorating U.S. gov't finances, QE, etc) will eventually overcome the artificial manipulation by JPM. 2011 will NOT be the year that silver will overcome the JPM manipulation and hit $50.

[Ponce]

Yeah that too. I am used to that nasty smell. That smell has been lingering for a while now. :)

Don't worry amigo, I'll give you half a roll of the three that you are going to give me so that you can wipe off that "nasty" smell.

[1970 silver art]

Don't worry amigo, I'll give you half a roll of the three that you are going to give me so that you can wipe off that "nasty" smell.

Actually, Since I am winning the bet, I was thinking that you can just go ahead and give me the 3 rolls of tp right now and that way I will have more than enough tp to wipe off that "nasty smell". :)