Would you buy gold now?

Pirocco said:
Ronnie 666 said:
Massive smack-down with gold breaking $1280 - usually this implies something to be announced. Any bets Draghi will announce QE-Europe on Friday ?
Click to expand...
Why would he? Remember, some months ago they said that the euro was too strong, so they brought it down. A QE would bring it down further, and they like to keep their currency snakes within their targeted tunnels.
Click to expand...

Why would he ?? Targeted Tunnel ??? what are you smoking Pirocco ?

Europe is broke, flat broke, kaput, finished, over the edge..... The most productive economy Germany is going backwards and Russian sanctions have just squashed any glimmer of hope. Banks are failing only to to be bailed out by JP Morgan to avoid a derivative event - your comment should be "what else can they do". Talking of targeted tunnels that light you see at the end is the express train racing towards you. This is going down sooner rather than later. Let us see what transpires on Friday !
 
Ronnie 666 said:
Why would he ?? Targeted Tunnel ??? what are you smoking Pirocco ?

Europe is broke, flat broke, kaput, finished, over the edge..... The most productive economy Germany is going backwards and Russian sanctions have just squashed any glimmer of hope. Banks are failing only to to be bailed out by JP Morgan to avoid a derivative event - your comment should be "what else can they do". Talking of targeted tunnels that light you see at the end is the express train racing towards you. This is going down sooner rather than later. Let us see what transpires on Friday !
Click to expand...
This explains the method:
https://en.wikipedia.org/wiki/Snake_in_the_tunnel
It's just terminology used in central bankers environments.
What matters is not what Europe is, or any specific is, what matters is the relative, what one is, relative to another.
 
Pirocco said:
Ronnie 666 said:
Why would he ?? Targeted Tunnel ??? what are you smoking Pirocco ?

Europe is broke, flat broke, kaput, finished, over the edge..... The most productive economy Germany is going backwards and Russian sanctions have just squashed any glimmer of hope. Banks are failing only to to be bailed out by JP Morgan to avoid a derivative event - your comment should be "what else can they do". Talking of targeted tunnels that light you see at the end is the express train racing towards you. This is going down sooner rather than later. Let us see what transpires on Friday !
Click to expand...
This explains the method:
https://en.wikipedia.org/wiki/Snake_in_the_tunnel
It's just terminology used in central bankers environments.
What matters is not what Europe is, or any specific is, what matters is the relative, what one is, relative to another.
Click to expand...

Yes compared to the US Europe's banks are grossly undercapitalized. They are starved of liquidity and Super Mario will provide. The job of the Central bank is to look after its members - the banks. It is a cartel not there for your benefit.
 
tolly_67 said:
There is no fixed correlation between QE and gold price.
Click to expand...

The gold price is completely and utterly manipulated so obviously it will not correlate with anything short term. Step back and gold under central banking has gone from $20 to $1280. I would call that a correlation. Look at 2008 ($700 gold - Fed balance sheet $850 B) to now at $1280 (Fed balance sheet approaching $5T) that is a correlation. Short term manipulation masks the correlation - longer term it is obvious.
 
The fed balance sheet tripled from 1980 to the year 2000 and what did gold do? It dropped by about 2/3rds.
As for manipulation....short term yes, long term no way.......it is all about the short term gain...never control.
 
Ronnie 666 said:
Yes compared to the US Europe's banks are grossly undercapitalized. They are starved of liquidity and Super Mario will provide. The job of the Central bank is to look after its members - the banks. It is a cartel not there for your benefit.
Click to expand...
Are they?
http://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=123.ILM.W.U2.C.L022.U2.EUR
http://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=117.BSI.M.U2.N.R.LRE.X.1.A1.3000.Z01.E
It's rather the opposite.
The ECB created alot excess in 2012, and in meantime destroyed alot of it again, since not needed anymore.
Nevertheless, excess still sits way above it was until the first part of 2012.
Just like in the US.
US and EU situations are not much different.
And the simple reason is again that exchange rate control method, that keeps all involved currencies within the limits they draw, as to prevent any single becoming too weak or too strong relative to the others, as to punish speculators. That control method starts somewhere, and this is it.
The only thing that can make them fail is more speculators that also get smarter.
 
tolly_67 said:
The fed balance sheet tripled from 1980 to the year 2000 and what did gold do? It dropped by about 2/3rds.
As for manipulation....short term yes, long term no way.......it is all about the short term gain...never control.
Click to expand...
Comparing a peak year with a bottom year is a haunted result.
Let's hunt too.

1976 $124.84
2000 $279.11

1970 $35.94
1987 $446.46

1982 $375.67
2012 $1668.98

2001 $271.04
2014 $1291.76

1980 $612.56
2012 $1668.98

Etce t e r a
 
Pirocco said:
Ronnie 666 said:
Yes compared to the US Europe's banks are grossly undercapitalized. They are starved of liquidity and Super Mario will provide. The job of the Central bank is to look after its members - the banks. It is a cartel not there for your benefit.
Click to expand...
Are they?
http://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=123.ILM.W.U2.C.L022.U2.EUR
http://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=117.BSI.M.U2.N.R.LRE.X.1.A1.3000.Z01.E
It's rather the opposite.
The ECB created alot excess in 2012, and in meantime destroyed alot of it again, since not needed anymore.
Nevertheless, excess still sits way above it was until the first part of 2012.
Just like in the US.
US and EU situations are not much different.
And the simple reason is again that exchange rate control method, that keeps all involved currencies within the limits they draw, as to prevent any single becoming too weak or too strong relative to the others, as to punish speculators. That control method starts somewhere, and this is it.
The only thing that can make them fail is more speculators that also get smarter.
Click to expand...

Take a look :
http://www.ft.com/intl/cms/s/0/42705b28-2488-11e4-be8e-00144feabdc0.html#axzz3B1doBg16

1302_european_bank_lending.png
 
Pirocco said:
tolly_67 said:
The fed balance sheet tripled from 1980 to the year 2000 and what did gold do? It dropped by about 2/3rds.
As for manipulation....short term yes, long term no way.......it is all about the short term gain...never control.
Click to expand...
Comparing a peak year with a bottom year is a haunted result.
Let's hunt too.

1976 $124.84
2000 $279.11

1970 $35.94
1987 $446.46

1982 $375.67
2012 $1668.98

2001 $271.04
2014 $1291.76

1980 $612.56
2012 $1668.98

Etce t e r a
Click to expand...
My point was that the correlation between fed balance sheet and gold does not exist. To be considered significant, the correlation must be outside 2 standard deviations of the mean. We are talking about 96%
occurence.....This is not the case at all.
 
Ronnie 666 said:
Take a look :
http://www.ft.com/intl/cms/s/0/42705b28-2488-11e4-be8e-00144feabdc0.html#axzz3B1doBg16

http://forums.silverstackers.com/uploads/1302_european_bank_lending.png
Click to expand...
I dig any charts from thirdparties because they have a tendency to select and adjust axes as to predraw the picture they wanna make you see.
This is their source:
http://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=BSI.M.U2.N.A.A20.A.1.U2.2240.Z01.E
1798_bsi20140821.png

The ECB target is indicated by the angle of the main / starting trend.
What do we see: that todays situation sits close to their target.
Just continue in the controlling mind the 1998-2006 trend part further.
The same is visible in quite some other data sets, and all the key ones.
 
tolly_67 said:
My point was that the correlation between fed balance sheet and gold does not exist. To be considered significant, the correlation must be outside 2 standard deviations of the mean. We are talking about 96%
occurence.....This is not the case at all.
Click to expand...
And why do you want to make this point at all?
You're the first one here talking about such a correlation, yet it's like you react?
 
Pirocco said:
Ronnie 666 said:
Yes compared to the US Europe's banks are grossly undercapitalized. They are starved of liquidity and Super Mario will provide. The job of the Central bank is to look after its members - the banks. It is a cartel not there for your benefit.
Click to expand...
Are they?
http://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=123.ILM.W.U2.C.L022.U2.EUR
http://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=117.BSI.M.U2.N.R.LRE.X.1.A1.3000.Z01.E
It's rather the opposite.
The ECB created alot excess in 2012, and in meantime destroyed alot of it again, since not needed anymore.
Nevertheless, excess still sits way above it was until the first part of 2012.
Just like in the US.
US and EU situations are not much different.
And the simple reason is again that exchange rate control method, that keeps all involved currencies within the limits they draw, as to prevent any single becoming too weak or too strong relative to the others, as to punish speculators. That control method starts somewhere, and this is it.
The only thing that can make them fail is more speculators that also get smarter.
Click to expand...

You sound like Nixon - its the greedy speculators that cause the problems not us politicians and certainly not the central banks hahaha

Well if the ECB is looking after the people of Europe it has failed and failed badly. The economy is going backwards and unemployment is at a record high. Cost of living is astronomical - just got back from there, so I don't think its their aim. They look after the banks.. period. Same is true of the Fed, BOJ and BOE.

The ECB created no money (unlike the FED) as they could not go down the route of QE. The did and continue to do secret swaps with the Fed (16T in 2008). The German court just gave the ECB permission to do QE you think they will turn that down ? pull the other one

If there is so much liquidity in Europe why are banks going broke and defaulting ??? Why does Goldman and JP Morgan bail them out ?

I am not sure which world you live in but the one I live in is broke and broken and Europe is at the top of the pile just behind Japan.
 
Pirocco said:
tolly_67 said:
My point was that the correlation between fed balance sheet and gold does not exist. To be considered significant, the correlation must be outside 2 standard deviations of the mean. We are talking about 96%
occurence.....This is not the case at all.
Click to expand...
And why do you want to make this point at all?
You're the first one here talking about such a correlation, yet it's like you react?
Click to expand...
It was not to do with your postst, it was a previous post which hinted that the smackdown may have something to do with the possibility of an announcement of more european QE. I simply showed that QE and gold are mutually exclusive
 
Ronnie 666 said:
You sound like Nixon - its the greedy speculators that cause the problems not us politicians and certainly not the central banks hahaha
Click to expand...
The reason for this sentence is unclear to me.
Did you read a Johny then Pirocco then assumed you were still reading Johny?
Ronnie 666 said:
Well if the ECB is looking after the people of Europe it has failed and failed badly. The economy is going backwards and unemployment is at a record high. Cost of living is astronomical - just got back from there, so I don't think its their aim. They look after the banks.. period. Same is true of the Fed, BOJ and BOE.

The ECB created no money (unlike the FED) as they could not go down the route of QE. The did and continue to do secret swaps with the Fed (16T in 2008). The German court just gave the ECB permission to do QE you think they will turn that down ? pull the other one

If there is so much liquidity in Europe why are banks going broke and defaulting ??? Why does Goldman and JP Morgan bail them out ?

I am not sure which world you live in but the one I live in is broke and broken and Europe is at the top of the pile just behind Japan.
Click to expand...
What I said is that things may not be like some suggest they are.
And those some, are not even speculators at all, because they eliminate the risk along privileges and misleading.
Don't underestimate the central planners and their sponsored, no matter directly or indirectly, buddies.
About the ECB not having created money:
http://sdw.ecb.europa.eu/quickview.do?SERIES_KEY=123.ILM.M.U2.C.LT01.Z5.EUR
1798_eu_base20140821.png

They DID create money, only that they already destroyed most of them again.
And the EU is still up. Big wonder? No. Because just like in the US, that QE was a scam.
Purpose? Make deposit holders waste their deposits on bloated prices.
I know, I'm one of those they succeeded this.
I learnt from it.
Some seem to refuse. I wonder what's real of that 'seem'.

By the way, Ronnie 666, take a look at this chart.
Take a pencil and lay it on the straight part from the first half.
Look at what you get today. Or just visually interpolate it lol. You will arrive at around 1400000. What is it today: 1200000. That means that the ECB is now able to insert 200000 liquidity, to just rearrive on their target.
 
It came in summer 2012 too.
And then got destroyed again.
Excess Reserves is not a spent total. Only an intrest rate on it is spent. Make a big difference.
 
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