gecko_x2's blog
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Submitted by gecko_x2 on Tue, 11/17/2009 - 07:18
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Hai Gais! I got all your monies! can we be friends now?
Then:
 
Now: (click "Read More" for rest of the article below)
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Submitted by gecko_x2 on Mon, 11/16/2009 - 20:17
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Beginning Wednesday, and especially the 2 preceding work days before option expiry for December contracts should be watched carefully. Who knows where we'll be after next monday, people are basically just sitting around waiting for Armstrong waterfall theory to play itself out anyways..
"For an option contract, expiration is the date on which the contract expires. The option holder must elect to exercise the option or allow it to expire worthless."
en.wikipedia.org/wiki/Expiration_(options)
CAPTAINHOOK writes:
Gold Going Parabolic
"Gold is in the headlines right now because of India’s announcement to buy half the announced IMF sale, and possibly more. But this is not why gold advanced so strongly yesterday. It blew past previous highs because we are in a significant cycle down time for equities right now, and the perception is if stocks are not to follow the natural path in this regard, authorities will need to hyperinflate. Conveniently then, the dollar has reversed lower because of this, which is supporting equities and altering the crash signatures in the trade. So you see India’s announcement is not the reason precious metals exploded higher yesterday in some degree of a parabolic move (this will be discussed further below), but the trigger for the move, with speculation and money printing, our bureaucracy’s two favorite things these days, the real culprits. All to save their precious stock market – that’s why Warren Buffett was out yesterday to jigger the Transports.
"Unfortunately for him, this will not work, and the Dow / Gold Ratio will work lower anyway, which was forecast for you several weeks back now, at the turn. In this respect, it’s my belief the Dow / Gold Ratio is presently on it’s way to the next large round number at 5, characterized by an intermediate-term advance in gold, along with falling stocks. And again, this is why gold advanced so violently yesterday, because price managers are attempting to prevent stocks from falling because of the deflation risk, so within the formula, gold necessarily rose abruptly to counter act the risk of hyperinflation, which is what would be needed to prevent stocks from following their natural path lower. As suggested above, it won’t work, at least not for long, with a more severe crash resulting later. This means assuming price managers are successful in keeping stocks afloat through the jobs report Friday, next week could be ugly once they spend this energy, along with moving closer to options expiry."
"So again, as options expiry approaches in a few weeks, the force of gravity will increase, and as suggested above, stocks could snap lower anyway. If the crash signatures are dismantled however, such an outcome could mean stocks remain at higher trajectories due to reaccelerating inflation, possibly leading to hyperinflation. Such an outcome would keep the Gold / Silver Ratio falling to historical norms, and then extremes, down in the mid to lower teens."
"...That is to say, if this move higher in precious metals has entered its impulsive stage, the one alluded to above where the Gold / Silver Ratio takes a nosedive, then riskier stocks, represented by the TSX Venture Index (CDNX), should outperform the less risky represented by the Amex Gold Bugs Index (HUI), suggestive the apparent reversal in precious metal shares yesterday is suspect. Again, this is because of the stock market crash risk that could still become a reality as options expiry approaches. This is why I recommend you own bullion as opposed to stocks in core positions at the moment, because of this risk, which is still apparent in the ratios. If stocks can make it past options expiry without crashing, which is looking more probable each passing day they avoid such an outcome, then we will change our tune, as stocks should explode higher in discounting the hyperinflation risk."
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Submitted by gecko_x2 on Mon, 11/16/2009 - 15:34
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Submitted by gecko_x2 on Sat, 11/14/2009 - 07:12
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Here are Jim Sinclair's comments on the 'Swiss Staircase' that has developed in the gold markets, I'll quote directly from the recent interview Jim had with Eric King.
Jim Sinclair: "Whenever you see a thing called a 'swiss stair', which is one of the.. I would say rarest of formations, and when the measure is so nice, i mean it looks like a stair. That's markup, accumulation.. Markup, accumulation. And it used to back in the days when i said well, when we wore skins to Wall Street, and, you know, had clubs over our shoulders, be that it meant that the swiss had some news, and of course if you want something kept secret, or if you want to get something around the world quick you tell it to the swiss, even back then. No offence to my swiss friends..
 But it took being very mechanical in what they did, it would be that they marked something up, and that's the way you get supply. In other words if you want to shake a tree and have the apples fall, you take a stock let's say you were making the market in it, you might take it from 8 to 10. Then all the sellers will come running out. That's if you really want to get supply. Now, if it falls back, you know, it may not be that strong, but if it moves sideways, and you know the markets has taken supply, and then it get's marked up again, and then it moves sideways..
I mean we have a swiss stair in gold which is.. now it's not what it used to be, now that's a government intervention of some kind of accumulation, or government related sources that have come out in the market.
...
COT loses when it takes on governments. This market has turned into a governments market. Not to a investors. COT can squish the investors, and squish the speculators any time it wants, with regularity. But they can't squish governments. Not only that, The FED doesn't want to get in a gold war with the government. They know that loss would be a terminal event. So they're not gonna do that. So the amount of lending or leasing, giving.., helping or promoting that they do to keep the speculators from moving the price, isn't going to have any effect on governments, who are just going to sit there having made a decision, and create this absolutely perfect looking stairladder, that historically when it takes place at new highs, means this thing is going ballistic.
Source: www.kingworldnews.com/kingworldnews/Broadcast/Entries/2009/11/13_Jim_Sinclair.html
Earlier Dan Norchini commented on the 'golden stairs' at jsmineset.com:
Back in the old days when charts were kept in caves and we wore animal skins going to Wall Street, aka my time, the type of a formation in gold is exactly like a step ladder known then to us as a Swiss Stair.
It was rare and had to have a perfect measure.
What it meant then was that the secret Swiss had inside information on something and were accumulating, as only they could, like a finely oiled machine. It only occurred is situations that were going to amazing heights.
It was a certain situation when it was a Swiss Stair at new highs. It was a certain situation when it was a Swiss Stair over a few months at the least.
I have seen stocks go from under $10 to over $200 as a result of properly constructed Swiss Stairs.
Source: jsmineset.com/2009/11/09/comments-on-todays-chart-from-trader-dan/
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Submitted by gecko_x2 on Sat, 11/14/2009 - 05:51
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I suspect we are going to hear the word 'Tungsten' ALOT in 2010
On Doing God’s Work
 “Gold Finger - A New Take On Operation Grand Slam With A Tungsten Twist”
I’ve already reported on irregular physical gold settlements which occurred in London, England back in the first week of October, 2009. Specifically, these settlements involved the intermediation of at least one Central Bank [The Bank of England] to resolve allocated settlements on behalf of J.P. Morgan and Deutsche Bank – who DID NOT have the gold bullion that they had sold short and were contracted to deliver. At the same time I reported on two other unusual occurrences:
1] - irregularities in the publication of the gold ETF - GLD’s bar list from Sept. 25 – Oct.14 where the length of the bar list went from 1,381 pages to under 200 pages and then back up to 800 or so pages.
2] - reports of 400 oz. “good delivery” bricks of gold found gutted and filled with tungsten within the confines of LBMA approved vaults in Hong Kong.
Why Tungsten?
If anyone were contemplating creating “fake” gold bars, tungsten [at roughly $10 per pound] would be the metal of choice since it has the exact same density as gold making a fake bar salted with tungsten indistinguishable from a solid gold bar by simply weighing it.
Roughly 15 years ago – during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] – between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day. I know folks who have copies of the original shipping docs with dates and exact weights of “tungsten” bars shipped to Ft. Knox.
Update: Mike Hewitt from DollarDaze.org has some interesting info about using tungsten to make fake gold:
In early 2008 it was reported that at least some of the gold bars in the vaults at the National Bank of Ethiopia were fake. The discovery was made when bars shipped from Ethiopia to South Africa were returned after they were identified as being gilded steel.
 Gilded steel is a very unconvincing form of fake gold because the density of the iron alloy is significantly less. A steel bar identical in volume to the standard 400 troy ounce gold bars commonly used in bank-to-bank trades would weigh only 162.5 troy ounces (about sixty percent lighter). Anyone familiar with handling gold bars would easily identify them as counterfeit.
There are two metals that are suitable, from both a density and economic perspective, for manufacturing fake gold - uranium and tungsten.
These metals aren't without their give-aways either. Different chemical and electro-magnetic properties exist. Uranium is of course radioactive. Tungsten is extremely brittle - the exact opposite of gold. Additionally, tungsten has the highest known melting point of any non-alloyed metal at 3422 degrees Celsius, making it difficult to work with. However, it appears that at least one high-temperature furnace is producing gilded tungsten products.
A Chinese company called Chinatungsten is advertising imitation gold merchandise on its website. The following quote is taken directly from their Tungsten Alloy for Gold Substitution page:
"a coin with a tungsten center and gold all around it could not be detected as counterfeit by density measurement alone ... We are well accustomed to exploit more innovative applications of tungsten products. Gold-plated tungsten is one of our main products."
 I found the webpage the author is referring to. This is pretty incredible stuff. Note that it seems they have changed the text alittle from the quote Mike Hewitt has in his article:
"These advantages make tungsten enjoys the superiority to be the best substitute for the costly metal of gold or platinum. It is necessary to tell that alloying gold with tungsten would not work for several reasons but a coin with a tungsten center and gold all around it could not be detected as counterfeit by density measurement alone."
Chinatungsten offer tungsten alloy as gold substitution
We are well accustomed to exploit more innovative applications of tungsten products. Gold-plated tungsten is one of our main products.
In details, pure tungsten, in the forms of round disc, plate, sheet, ring, and etc., can be perfectly coated with gold layer with clinquant shine, to replace gold or platinum merchandise except its currency function.
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Submitted by gecko_x2 on Sat, 11/14/2009 - 04:08
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  Protesters Plan Huge Anti-Goldman Rally In Washington, DC
Hundreds of Taxpayers to Converge on Goldman Sachs DC Headquarters Monday
National Mobilization Continues to Demand End to Multi-Billion Dollar Bonuses at Bailed Out Banks and the Too Big To Fail Doctrine, Calls for Congressional Action Now
Washington, DC—On Monday, SEIU President Andy Stern and hundreds of taxpayers will converge on the Washington headquarters of Goldman Sachs to demand an end to multi-billion dollar bonuses and the Too Big To Fail Doctrine and call for immediate Congressional action on real financial reform. This is the latest in a national mobilization launched last month as 5,000 taxpayers from 20 states converged on the American Bankers Association convention in Chicago to demand Wall Street and big banks stop fighting reforms that will protect our families from the next crisis.
WHEN: Monday, November 16, 12:00 PM ET
WHERE: 101 Constitution Avenue NW; Washington, DC (off 1st Street NW)
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Submitted by gecko_x2 on Fri, 11/13/2009 - 10:03
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 Iran to supply 5m new coins to gold market
Iran's central bank plans to inject 5 million newly-minted gold coins into the domestic market in order to control rising gold coin prices, according to the official IRNA news agency.
At Thursday's price of 2.8 million rials (about $280) for a standard gold coin in Iran, the total value of the planned intervention would amount to $1.4 billion, Irna reported on Thursday.
The price of gold coins in Iran has risen sharply in line with developments on international markets where gold bullion has risen 28 per cent this year to a record high $1,122.85 an ounce.
Many Iranians buy gold coins as wedding gifts and also as a long-term investment. A standard gold coin weighs around 8.13 grams. It is also sold in smaller denominations of half a coin and a quarter of a coin.
Source: http://www.tradearabia.com/news/newsdetails.asp?Sn=ECO&artid=170337
Ed Steer from Casey Research comments:
"It seems that Iran is now trying to control the internal gold price in its country by issuing 5 million gold coins... each weighing 8.13 grams. That translates into 1.3 million ounces of gold... a bit over 40 metric tonnes. That's a lot."
Source: http://www.caseyresearch.com/displayGsd.php
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