Calling the bottom with a Sharpie

[Chris Scoreboard Johnston]

My extensive research into the relationship between gold prices and financial crises shows no relationship but a very strong one between gold prices and inflation. I devoted a whole issue of my newsletter two years ago to this topic.

For those of you that read in here and do not do your own research, please be careful with these types of comments, they are inaccurate. It may happen by coincidence that they relate going forward, but there is no consistent historical basis for this assertion.

The gold and metals trade is very crowded right now, nary a person out there except me and a few much more accomplished traders than I am have been looking at the short side of gold. Markets top when everyone has already bought, and in my view, everyone has already bought metals. Even Joyce Brothers is on the radio hawking gold! Gold was free falling until the PPT showed up yesterday to reverse it and a few other things.

[Arraya]

I agree with Mish on this one:

Bretton Woods II is on its last legs and cannot possibly survive. The only thing we do not know is the timeframe. The global monetary system could collapse next month, next year, or central bankers might manage to keep it together for another five years.

Meanwhile the Grand Experiment Continues. And as central bankers worldwide continue their coordinated competitive currency debasement silliness, one beneficiary is likely to be gold.

I don’t think there is any historical precedence for a currency ceasing to be the reserve currency.

Dollar dumping has begun just as predicted. The world is gearing up to release new commodity backed currencies

We are in uncharted waters.

[Arraya]

I agree with Mish on this one:

Bretton Woods II is on its last legs and cannot possibly survive. The only thing we do not know is the timeframe. The global monetary system could collapse next month, next year, or central bankers might manage to keep it together for another five years.

Meanwhile the Grand Experiment Continues. And as central bankers worldwide continue their coordinated competitive currency debasement silliness, one beneficiary is likely to be gold.

I don’t think there is any historical precedence for a currency ceasing to be the reserve currency.

Dollar dumping has begun just as predicted. The world is gearing up to release new commodity backed currencies

We are in uncharted waters.

[Arraya]

I agree with Mish on this one:

Bretton Woods II is on its last legs and cannot possibly survive. The only thing we do not know is the timeframe. The global monetary system could collapse next month, next year, or central bankers might manage to keep it together for another five years.

Meanwhile the Grand Experiment Continues. And as central bankers worldwide continue their coordinated competitive currency debasement silliness, one beneficiary is likely to be gold.

I don’t think there is any historical precedence for a currency ceasing to be the reserve currency.

Dollar dumping has begun just as predicted. The world is gearing up to release new commodity backed currencies

We are in uncharted waters.

[Arraya]

I agree with Mish on this one:

Bretton Woods II is on its last legs and cannot possibly survive. The only thing we do not know is the timeframe. The global monetary system could collapse next month, next year, or central bankers might manage to keep it together for another five years.

Meanwhile the Grand Experiment Continues. And as central bankers worldwide continue their coordinated competitive currency debasement silliness, one beneficiary is likely to be gold.

I don’t think there is any historical precedence for a currency ceasing to be the reserve currency.

Dollar dumping has begun just as predicted. The world is gearing up to release new commodity backed currencies

We are in uncharted waters.

[Arraya]

I agree with Mish on this one:

Bretton Woods II is on its last legs and cannot possibly survive. The only thing we do not know is the timeframe. The global monetary system could collapse next month, next year, or central bankers might manage to keep it together for another five years.

Meanwhile the Grand Experiment Continues. And as central bankers worldwide continue their coordinated competitive currency debasement silliness, one beneficiary is likely to be gold.

I don’t think there is any historical precedence for a currency ceasing to be the reserve currency.

Dollar dumping has begun just as predicted. The world is gearing up to release new commodity backed currencies

We are in uncharted waters.

[peterb]

I think fear is the order of the day and will remain so for a while. Hence the desire for gold. Uncle Ben’s monetization is not helping the US$. But credit destruction seems far greater than money creation.
Here’s an analysis by someone with a strong track record:
http://www.321gold.com/editorials/hoye/hoye031609.pdf

Give it a careful read. The logic is good. Relative strength is what matters. Sure gold can correct and probably will, but profitability will remain strong for miners. A high demand product with a very good profit margin. Sounds like a solid business concept in a highly confused world.

[peterb]

I think fear is the order of the day and will remain so for a while. Hence the desire for gold. Uncle Ben’s monetization is not helping the US$. But credit destruction seems far greater than money creation.
Here’s an analysis by someone with a strong track record:
http://www.321gold.com/editorials/hoye/hoye031609.pdf

Give it a careful read. The logic is good. Relative strength is what matters. Sure gold can correct and probably will, but profitability will remain strong for miners. A high demand product with a very good profit margin. Sounds like a solid business concept in a highly confused world.

[peterb]

I think fear is the order of the day and will remain so for a while. Hence the desire for gold. Uncle Ben’s monetization is not helping the US$. But credit destruction seems far greater than money creation.
Here’s an analysis by someone with a strong track record:
http://www.321gold.com/editorials/hoye/hoye031609.pdf

Give it a careful read. The logic is good. Relative strength is what matters. Sure gold can correct and probably will, but profitability will remain strong for miners. A high demand product with a very good profit margin. Sounds like a solid business concept in a highly confused world.

[peterb]

I think fear is the order of the day and will remain so for a while. Hence the desire for gold. Uncle Ben’s monetization is not helping the US$. But credit destruction seems far greater than money creation.
Here’s an analysis by someone with a strong track record:
http://www.321gold.com/editorials/hoye/hoye031609.pdf

Give it a careful read. The logic is good. Relative strength is what matters. Sure gold can correct and probably will, but profitability will remain strong for miners. A high demand product with a very good profit margin. Sounds like a solid business concept in a highly confused world.

[peterb]

I think fear is the order of the day and will remain so for a while. Hence the desire for gold. Uncle Ben’s monetization is not helping the US$. But credit destruction seems far greater than money creation.
Here’s an analysis by someone with a strong track record:
http://www.321gold.com/editorials/hoye/hoye031609.pdf

Give it a careful read. The logic is good. Relative strength is what matters. Sure gold can correct and probably will, but profitability will remain strong for miners. A high demand product with a very good profit margin. Sounds like a solid business concept in a highly confused world.

[Eugene]

You’re not doing this right. Let me help.

[img_assist|nid=10636|title=|desc=|link=node|align=left|width=100|height=73]

[Eugene]

You’re not doing this right. Let me help.

[img_assist|nid=10636|title=|desc=|link=node|align=left|width=100|height=73]

[Eugene]

You’re not doing this right. Let me help.

[img_assist|nid=10636|title=|desc=|link=node|align=left|width=100|height=73]

[Eugene]

You’re not doing this right. Let me help.

[img_assist|nid=10636|title=|desc=|link=node|align=left|width=100|height=73]

[Author]

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