Its friday, Short covering

As you mentioned in another comment.

THEY JUST TOOK FIGHTING OUT OF HOCKEY.

Isn’t that what I have been saying all along about the “taper”

Wednesday’s “Taper”, for lack of a better term as Al would say; was a game changer.

This was very gold negative – the simple reason being the less money printing, or QE, the less dollars created, hence gold negative. Right on queue gold reacted, tumbling back down to June lows.

Many people got the “taper” wrong, including myself. I was in the camp (or ended up in this camp to be more precise) that there could be no taper.
However I said many months ago that they would one day be forced to taper.
Not that they want to taper, but in order to save face and not lose credibility they would have to taper.
I believe that was the reasoning behind this taper.

I believe Bernanke wanted to take his last victory lap, take his final bow, and pass the baton onto Janet Yellen, being able to claim his plan worked and now he can ride off into the sunset having saved us from disaster. It is now up to Janet Yellen to not drop the ball.

Bernanke’s hands are now clean. He left with a taper in place and a vote of confidence.
It is now up to Yellen to move the ball forward.

Bernanke has now put us on a tapering path; that under ideal circumstances will end sometime in mid 2014. If all goes according to Hoyle.

Make no mistake – if they are able to consistently reduce QE month after month without any hiccups I believe this will be very negative for gold. It only makes sense.

However this is, or could be, a very big IF.

WE NEEDED THE TAPER.

Even though gold got smacked we needed this taper.

We needed to change course, finally get it out there and now see what becomes of it. Why?

BECAUSE THEY JUST TOOK FIGHTING OUT OF HOCKEY!

And what have I been saying?

ONCE YOU TAKE FIGHTING OUT OF HOCKEY YOU CAN’T PUT IT BACK!

Once you start the “taper” you can now never go back

If Janet Yellen blinks, even once, the FED loses all credibility, confidence is blown out of the water and we are back to QE to infinity for good.

She cannot drop the ball, she cannot postpone even a month’s tapering.

Don’t misconstrue what I am saying, for those of you who hang on every word I say.

Can she pull it off? I have no idea.

Do I know what is going to happen? I have no clue.

But I do know the risk reward ratio for gold is starting to be in gold’s favor.

And speaking of fighting, the vitriol right now against gold is off the charts.

Read the comments on any article about gold, don’t bother with the biased article; just the comments.

The DOWNRIGHT HATRED for gold is beyond the pale.

People are starting to get stupid to, with calls for $700 gold, or going to zero.

This too is setting up for a favorable risk reward ratio IMHO

Stay nimble, be careful.

We are in for interesting times.

I ALWAYS LIKED A GOOD HOCKEY FIGHT – THERE I SAID IT!

Better than two guys swinging sticks at each other and knocking someone’s eyes out

Let two athletes slug it out, blow off some steam and get on with the game!

THEY MIGHT JUST HAVE TO PUT FIGTHING BACK IN HOCKEY!

Then the fireworks are really going to start!

I think it might be a little early to be calling what gold is doing “a strong finish” or a “vertical” move. $1187 to $1206 is only $19. Im crazy I guess but somthing to get excited about for me would be maybe $100 straight up. I agree with Gary, seeing gold above $1268 would make me see it more positively.
I think James has it right, this is just a bit of a bounce after a bit of a drop.
We shall see of course.

Please skip all of the pre talk and just let Gary speak please. Most people on here are active traders and don’t need up to date prices.

[…] Click here Written by Gold Scents […]

I am not an active trader. I am a buy and hold accumulator who contributes commentary on horse racing and hockey…

Speaking of Horse Racing – This Sunday Hollywood Park Racetrack will close its doors after hosting great racing since 1938.

Is this a sign of the times?

The 260 acre property will be renovated to make way for housing units and entertainment centers.

Gone are the heydays when celebrities like Cary Grant, Lucille Ball and Al Jolson strolled the grounds, and wagered on horses like Seabiscuit and Citation.

Great horses, great races, great times.

All to be raised to the ground to make way for housing units.

Of course most people could care less.

But when things like this happen I always think it is just one more link that is removed from the chain that connects the present with the past. An entire generation will grow up having no knowledge of the great memories made on this racetrack. Instead they will see crammed cardboard boxes and Dunkin Donuts.

There are worse things to do than spending a leisurely afternoon at the track, meeting and greeting friends and acquaintances, reliving old times, retelling tall tales, while occasionally kibitzing.

If someone had the mental fortitude to read this entire article maybe you would get something out of it.

I know everyone is in a rush these days to get to the next race or the next trade, so pardon me if I take up too much of your time with sentimental dribble.

It always amazes me how inward looking Americans feel the need to understand markets in terms of American events as if the the rest of the financial world is merely tagging along for the “Made in America” ride. Nothing could be further from the truth and the Fed tapering and it’s effect on gold is a good example. Yes, there was an initial sell off in gold but there will be no long term lasting effect since American demand for physical gold comprises less than %5 of the world’s total. I know that is hard for an American goldbug to swallow but that is a fact. While Americans are sleeping, gold trading is going on at a ferocious pace in Asia. The Comex is becoming more irrelevant with each passing day given it has become nothing more than an exchange of paper gold with a nearly 100 to one leverage versus the 100% gold backed exchange in China. If you were a large gold holder, which would you rather deal with?

Well, I read earlier that the news is that the economy grew at 4.1% in the third quarter. How do you gentlemen figure that with all the other bad numbers pointed out above? Is the 4.1% number real or conjured?

Gold will have its day, but that day will be when ignoramuses like Gary won’t see it coming. He can’t. because his reasoning is faulty, and he thinks like everybody else who has an attachment to gold and silver. He will screw himself, and has already screwed people like me until it becomes clear that everything he assumed made an ass out of you and me.

Looks like Gary is not only good at picking bottom, he is also good at picking top. Here comes options again. Many thousands of percent! Just what I have been looking for. What a great article. It keeps me away from the dangerous stock market, and keeps me hanging in PM. I don’t care how much I have lost in PM, I will continue picking the bottom, and I will short the damn stock market, for many thousands of percent. Call me stubborn, but really it’s time for revenge!

Regarding the little war between Kong and Gary, what’s the point to argue like girls? Show us the results! Let the numbers speak! Kong says his 2013 return is 130% so far, 2012 return is 112%. Gary: what are yours?
Oh BTW, Kong and Gary: please be ready to provide proof.