Friday, November 2, 2012

Gold's October Slump Is NO SURPRISE - Buy The Dip!

A number of "things" have kept me away from my blog posts.  Not the least of which were fears that I would turn this site into a biased political rant during the height of this election cycle.

 For what it is worth, I would like to go on the record here and predict the outcome of next week's Presidential election...Despite what our clueless mainstream media would like you to believe...the outcome will not even be close.  I promise that more than once you will here references to the 1980 Reagan vs Carter throw down as the election results come in next Tuesday evening.  The White House will get cleaned out soon...

But I'm here to talk about Gold!

This headline today caught my attention and drew me back to my beloved blog.

Gold Falls 2% After Strong U.S. Nonfarm Payrolls Reuters
Gold slid 2% in heavy trade on Friday, breaking below $1,690 an ounce for the first time in about two months on lowered expectations for economic stimulus provided by global central banks.

This is absolute BULLSHIT!!!  Lowered expectations for economic stimulus provided by global central banks?  Yeah right...if central banks lowered their present "economic stimulus expectations" the global economy would implode immediately!  Who writes this garbage?

Gold is down today for ONE SIMPLE REASON...the US Dollar was up strongly today as the US Equity markets collapsed on the back of what was genuinely a VERY POOR jobs report...despite what the mainstream liberal loving media would have you believe. [I'm sorry.  See what I mean about politicizing my blog.]

In fact, much of Gold's "recent" weakness could be directly related to the "strong dollar" we have seen since October 16, 2012.

Observe the chart below.  The price of the US Dollar is overlayed on the price of Gold.  It's pretty clear from this snapshot of Gold that the value of the US Dollar is a major factor in the "ups and downs" of the Gold price.  [click to enlarge]


Much of Gold's recent weakness has been attributed to "manipulation" in the futures markets.  And though I will ALWAYS believe that Gold, and Silver, are not allowed to trade freely...I can not lay a lot of blame on this "excuse" here and now.

There are many legitimate "technical" reasons for Gold's recent fall from $1725 to today's lows.  As well as Gold's failure at $1800 in early October.

Do you know that "seasonally" October is one of the weakest months of the entire year for the price of Gold?  [click to enlarge]


The fall in today's price of Gold therefore has NOTHING to do with today's jobs report signalling ANY lowered expectations for economic stimulus provided by global central banks.  The notion that the central banks are going to stop printing money is LUDICROUS!  No matter the outcome of any election anywhere, the banks will continue to print money.  And because ALL MONEY IS DEBT, the only way to pay for today's debt is to print more money...It's called a circle jerk people!

I'd be buying Gold and Silver here with every extra filthy US Dollar I had in my possession.  As soon as this election is over, and the looming US Debt limit returns to the headlines, Gold and Silver are going to lift-off all over again.

I hope to return to regular blog posts soon.

Thanks!

-greg

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