Big Al and Trader Rog discuss listener questions
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Hello timetoflyaway,
Call me a crazed individual, but I do agree with you.
Big Al
What do you guys know about the London Gold Exchange closing?
http://www.tfmetalsreport.com/blog/2508/interesting-development
Hi Eric,
Taken directly off the internet:
We are only putting this up because we have been flooded with emails about an event which for some reason readers believe is relevant. The event in question is that according to its website, the London Gold Exchange (“LGE” or the “Joke”) has closed. The one thing we would like to say about this is that the LGE is nether an exchange, nor does it trade gold. And, judging by its Wikipedia page, is probably not based in London but in Hong Kong. But yes, if one is concerned about such “currencies” as bitcoin and other digital “currencies”, this may be news…And now, carry on.
Hope this settles your mind.
Big Al
Big Al –
The “power” traders are trying to scare the investor confidence out of the PM’s..too bad they can’t change the fundamentals of a raging bull market…if they could it would be a whole different story. But, the true story is that this has years to go. Looking back WILL show that this is just a small blip on the LONG TERM upward
trend line.
The ONLY question will be – Why in the h___ didnt i buy more?!
Marc
Yep Marc,
And why didn’t I buy more.
Interesting, going back to Sept. 5 the price trend for gold has been downward. Let’s see if that didn’t reverse today.
Best,
Big Al
Thanks to all for the asian explanation
On another note: does anyone know if there is specific news that cut tanzanian royalty in half, besides the normal thrashing????
Thanks guys
edward murphy,
you might have to ask James Sinclair on this one..
might be something besides the market…meaning other people might
be trying to make him (james sinclair) suffer….and discredit tanzanian
why , you ask…do a little history on Sinclair and you might discover an
answer…this might go back to the last run up in silver 1970 when he
was working with the Hunt Brothers. Anyone trying to discredit silver or
gold or drive it down would surely try to make Sinclair’s voice less important,directly or indirectly.
I do not have any position in tanzanian royalty…but, if I was looking for a
gold play…this is one I would consider just because of the involvement
of Sinclair..
Hope this might give you some info…only speculation on my behalf.
Jerry
thanks jerry
I agree. Thanks Jerry.
Big Al
AL,
your welcome,,,got to stick together, waiting for better times
respectfully
Jerry
edward, TXN…really did get hammered…..volumn was 500 k….
really high..someone must have needed the money
Did you see the note on kitco dated today from sinclair?
Hope this helps…Jerry
Thanks Guys: I appreciate the answers. It is confusing to most people I believe, and I don’t understand it all, but working on it.
Frankly and this is just my opinion, but I believe that a very large part of these stupid problems in the Worlds economic situation is related to Keynesian and most specifically the fiat currency system of nations. The biggest leverage play in world history is the US government, but instead of their margins being raised the fox that guards the hen house just keeps lowering margins by raising their debt limit. This is why James Grant has been saying that the US will go forward to a Gold Standard, which is not a promise nor a threat, it will happen.
Something has got to limit the quarter by quarter margin limit decrease on the US Federal Government, they just can not keep pushing their increasing debt into the future. This is precisely what many American get and understand, but when the Fox guards the hen house, there is no limit to leverage.
http://www.nysun.com/national/plan-to-return-america-to-the-gold-standard-set/87495/
Hi Clay,
Interesting commentary. (I just read it.)
Don’t know if the gentleman will have much luck at this moment in time in his attempt to convince Congress of the wisdom of eventually returning to a gold standard.
Will certainly be interesting to see.
Best,
Big Al
Gentlemen,
I think we need to be careful about some of the comments made regarding the buying of gold and silver in China. Roger made a comment in this recording about gold being sold in Japan and China in vending machines and in 7/11 stores.
I live in China and can tell you that where I live, which is Guangzhou, a city of about fifteen million people, you CANNOT purchase gold in a 7/11 store, nor are there any gold vending machines.
That may be true in Japan, I don’t know, but I think you’ll agree with me that we need to provide accurate information for everyone about what’s goind on here in China regards the purchasing of physical gold and silver by the public.
As far as I know, there is only ONE gold vending machine in all of China, and it’s in Beijing. That was a news item from about one day ago.
Thanks Mike,
I will bring this to Roger’s attention.
You are absolutely correct in saying that we need to be very accurate in our comments.
That is why input from people like yourself is so valuable.
Best and thanks again,
Big Al
Also, what about goldmoney closing dutch accounts?
HI Eric,
Don’t know anything about that. I will ask James and be back to you.
Big Al
Hi Eric
From what I have read, the Netherlands financial regulator told GoldMoney they needed a license to offer investments to the Netherlands. GoldMoney is still trying to work through the problem but for now is closing accounts and has offered the option to take physical delivery. I hope this is not an indication of what is in store from other countries.
It appears the Dutch government is to blame, not GoldMoney. What a surprise.
http://www.tfmetalsreport.com/forum/2517/goldmoneycom-closing-dutch-accounts
Hi Karen and Matthew,
The fact that goldmoney is offering delivery of physical is proof to me that it is an up and up outfit.
Am I missing anything?
Big Al
I have complete confidence in GoldMoney.
It’s strange. The EU is supposed to be a single trade area. I know that governments of each nation have different powers (some share the euro, some want to regulate banks in their own country, some want to run deficits, etc, etc). It’s just interesting to me that the Netherlands has a different law in this way, or GoldMoney might otherwise need a broker’s license in all EU nations. Maybe we have a listener in the Netherlands who can explain it?
Hi Al,
The integrity of GoldMoney is not in question. The problem is a government with overreaching regulations. The fear is that other countries could follow.
Rudyard Kipling wrote a poem regarding the markets and social experiments during the 19th Century. It was true then and is true today. I read this poem to remind myself of what happens when people ignore truths by trusting only lies.
Gods of the Copybook Headings
AL, I CAN’T UNDERSTAND WHY GOLD AND SILVER STOCKS COME FLYING OUT OF THE STARTING BLOCKS FIRST THING IN THE MORNING AND THEN JUST FIZZAL OUT.
IT HAPPEN AGAIN TODAY. THIS HAPPENS MORE OFTEN THEN NOT.
WHAT WAS THE REASON FOR THE PULL BACK TODAY?
Seeing a bargain, some participants were buying aggressively, pushing prices higher. The higher prices, in turn, coaxed scared players to get out at a higher price than they could have got yesterday. On top of that, you have the bears using any strength to get short or get “shorter”. The smarter shorts (in my opinion), were covering, adding to the early rise.
Bullion buyers are different than the risk tolerant mining speculators. With so much uncertainty at the moment, is easy to see why bullion was more resilient. I believe the miners will soon dramatically outperform. In fact they have been outperforming since the first week of August.
HI Matthew,
Good comments. I agree with you.
Big Al
Just to elaborate a bit more.
I was talking with Larry Reaugh, President of American Manganese, last week. Asked him his comment regarding the pull back in AMY stock. He started laughing so hard it hurt! His comment, “a whole bunch of people believed in our company when it was trading at the $0.30 level. When all their other stuff went down and we were trading at $0.70 what do you expect?”
So, I agree with your comments Matthew.
Big Al
AL,
JUST FOR AN EXAMPLE GG WAS UP OVER 2.00 TODAY THEN IT ENDED UP DOWN FOR THE DAY. GOLD AND SILVER WAS STILL UP AT THE END OF THE DAY.
I CAN’T FIGURE IT OUT.
Hi Denis,
I believe it is a who blinks first kind of game. People will hold out for there price until the last miniute of closing day. Impact Silver shot up about 15 cents just beofre closing,As for Goldcorp sellers probably chicken out not wanting to wait over night until the marlets open the next day. You know that you are at the mercy of the overnight markets at the open and do not know which way it is going to go.
Follow the close and you will often see spikes just before closing Just like the morning where the spikes are frequent.
Joe
And Joe,
That is exactly why Big Al is not a short-term trader!
Best,
Big Al
Hi Clay,
Enjoyed Gods of the Coypbook Headings. Thanks.
The greatest book of Wisdom says in Ecclesiastes, “There’s nothing new under the sun,” and an astute student of history, such as yourself and others here, certainly find that to be true.
Best to you
No, Mr. C it’s all a variation on the same theme!
Big Al
Hi Big Al.
Trader rog is so correct that we were due for a correction in the PM’s and of all the tensions globally concerning Euroland. The PM’s will recover faster than before. There is no problem between supply and demand, meaning every ounce of silver is used up. There are no large stockpiles around and the equities and junior’s will respond. I consider the crash a Gift to add to core and equities and junior’s.
HI Paul S,
Trader Rog can definitely be uncannily accurate. It is almost scary sometimes.
Best,
Big Al
If you noticed in 2006-7 when gold was at a peak miners were suffering because of high inflation and energy prices. Their margins were really slim.
Can you imagine what their margins are now! And going down. I think th highest extraction rate I have seen is 850 bucks and ounce-really poor. But some are 400-600!
Maybe Al and Rog can discuss miners and some of the real costs going down and what they are. And how some companies make money with silver, copper but primarily gold outfits.
Hi Cocoa,
Happy to do that. Look for a segment on the Weekend Show.
Best,
Big Al
When the miners head south suddenly I get defensive on my gold and silver positions viz a viz buy puts. Just seems like miners going south is a heads up that gold and silver are about to be sold off.
On miners not holding gains we can attribute that to hedge fund trades and hft. Basically some of this is a nothing more than day trading on a high level-open a position and sell it with a scalped gain.
This is no longer “investing” -its short term trading and if the Govt eliminates cap gains tax preferance, look out–if you think volatility is high now, just think if there is no tax reason to hold a stock.
HI Hal,
I agree with you completely regarding your comment relating to short term trading. This is something I do not do for myself. I have found that there is too much money to be made in sensible mid to long term investing.
Best,
Big Al
Hi Al,
I have read a lot over the past year about the divergence between gold and the miners; and it seems that everyone was indicating that the miners were due for a jump to come more in line with the rise in gold. Do you have any thoughts as to whether or not this is still on the books? or is that there is too much uncertainty about where gold will be 3 years from now?
I know the sell off in junior miners is probably risk aversion sales and on low volume but it seems that the markets are particularly fickle in that miners have not risen with gold but it they seem to be taking quite a beating in the gold sell-off.
I believe that Trader Rog’s explanation of margin hikes is technically (and factually) correct, but believe that there are larger geopolitical factors that are driving what we are seeing here. These factors provide the backdrop to what is going on.