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[–] cabalstone [S] 0 points 2 points (+2|-0) ago  (edited ago)

So do I. I trade options and put profits into metal which I rarely sell. I don't really care about the price as long as it's moving. For example, SLV March 20 15 puts (essentially a bet that SLV will sell below $15 before March 20) closed Friday at around a nickel bid, ran up to nearly a quarter this morning and is now bidding 14 cents. Ya gotta be alert and ya gotta be quick to play this game. Here's a taste on outlook...from Sunshine Profits:

Isn't this excellent time to buy gold?

No. Everything that we wrote in the previous paragraph has already happened, which means that gold has already reacted to it. And in what way did it react? It just moved to its previous high. This week started with an attempt to move above it, and this move failed as gold reversed its course and at the moment of writing these words, it's only 0.18% higher. On the other hand, silver is over 2% lower and it's once again trading below $17.

Given all that happened in the last 2 weeks, and especially given what happened overnight gold "should be" trading MUCH ($100+) higher. Gold just failed to react to a series of very positive events, which tells us that it's about to move in the other direction. The technical confirmations - weakness in silver and mining stocks - are already present. Silver is already attempting to break lower, while miners have not yet started trading today. Still, they refused to rally close to their previous highs on Friday, even though gold was moving temporarily above its previous high. That's a clear underperformance sign and one that tells us that lower precious metals values are to be expected in the following months and weeks.

Plus, what can the Fed do on its next meeting? It already panicked and stimulated the economy based on something that might have been just a temporary fear-driven correction. People got scared even more and they now expect the Fed to deliver at least (!) a 0.75% cut. Some expect more, which means that - on average - if the Fed cuts the rates by 0.75%, it will likely still be viewed as hawkish. To some people that will be normal, and to some, it will be a hawkish surprise as they expect an even bigger cut.

The decline in crude oil is not a factor that supports interest rate slashing.

Regardless of the above rate discussion, based on how gold is reacting to the increased fear of coronavirus, it seems that people are starting to realize that gold will not save them from a virus. It might be very useful in case of an economic collapse, or a new World War. But in case of a virus? Not really. People's initial reaction to every shock might be to buy gold, but after the initial reaction, the logic comes into play, and it doesn't necessarily imply the need to protect oneself with gold against the virus. In fact, if the virus becomes even more widespread, then people would likely prefer to stay and home as much as possible, avoiding contact with others. This means that they will also prefer doing business and shopping online, without cash, or gold. There are many crises in which gold gleams strongly, but it doesn't seem that it's one of them.

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[–] Trudeaus_Socks ago 

The thing is, none of these finance guys are reading Q. And as the last few years have shown, if you're not reading Q, you're not fully understanding what is happening around you.

I'm not saying bet your life savings on Q posts, but, "Gold shall end the Fed" is becoming an investment imperative, don't you think? Especially after last night's "nothing can stop what's coming" confirmation?

In other words, we have reason to believe there is more happening with gold than is commonly known in the finance world.

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[–] cabalstone [S] ago  (edited ago)

Nonsense. There are certainly many deep in the 'finance world' who know exactly what is happening. You won't find them on CNN, FOX or even the WSJ. As for the end of the Fed, the issue isn't if, but rather when. Timing is everything.

Does it not make sense that those who do know may manipulate the price of gold lower before it inevitably gets revalued much higher?