Gold Up To 334.10 - Even Hit 336 Overnight
3 replies to this topic
Posted 13 December 2002 - 08:59 AM
Seriously, there probably isn't any single factor that explains it. Falling stock markets, favorable seasonals, falling dollar, unstable political situation, etc. None of them is sufficient, but many of them working in conjuction for long enough can change the psychology of the trading masses and swing them to a particular kind of action, which then starts feeding on itself.
Posted 13 December 2002 - 09:24 AM
As Vesselin says, there are many reasons for gold's strength. But let me highlight one, which is clearly visible in the Feed Index chart in Doc's Anals. It's basically the asset side of the Fed's balance sheet.
Just 15 months ago, in the wake of the 9/11 emergency, the Fed pumped $100 billion into its balance sheet temporarily. And that was big - close to a 20% increase. it was like injecting a rural trauma victim with a life-threatening dose of heroin, for lack of other anesthetics. Fifteen months later, that dosage is now the patient's daily regimen. In fact, as of this week, IT AIN'T ENOUGH.
To paraphrase the great Jim Morrison,
When I was back there in seminary school
There was a person there
Who put forth the proposition
That you can paper the world with dollars
"Paper the world with dollars"
"PAPER THE WORLD WITH DOLLAHS"
YOU CANNOT PAPER THE WORLD ... WITH DOLLAHS!!!
"GOLD -- it's not just for misers anymore."
"Dollahs -- fire-starters for the K-wave winter." - Drano
"Three humps and a dump." - anotherone, 21 SEP 2004
"No gold was harmed in the making of this movie." - Bizarro Greenspan
[i]"Da Track. Da place where Morons bet on Animals Controlled by Criminals." - our jickiss
Posted 13 December 2002 - 09:41 AM
assume a lot of things as necessary, but mainly that gold goes 400+ next week
what stocks (like jpm) will be shortable to zero as their hedges blow up and bankrupt them?
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