Liquid Gold

     While on vacation in the middle of the eastern Oregon checking in now and then to see spot prices.  I was not too shocked to return to the same thing that took place last week.  Gold is moving quickly, oil is the main initiator here, as I wrote last week, that TPTB would not let it get lower than $75.  Thursday it was $74.42 if the prices remained low it could cause a major problem for the Keystone pipeline and make it financially undo-able, the break even price for the new Canadian oil production is around $85, already up and running producers can do it for much less but this affects all the new projects.
     Is it really a surprise when it came down to the release of this passing, that we see oil rising.  The Democrats are now standing behind the approval for the Keystone XL pipeline.  All we have to do is sit back and wait for the president to sign it, since he is in Asia he will get to it sometime in the next week.  Even though Congress might try to take the responsibility away from Obama, he is the only one who can approve it because it crosses international borders.  The question every broker and oil executive is wondering, will he pass it?  Legislation's like this in the past have been vetoed and frowned upon by the White house administration.  The pipeline is a major concern for the environmentalists that the Canadian extraction could worsen global climate changes and threaten the U.S. waterways.  On the other side, this is huge for the U.S. to become energy independent, creating mass amounts of job growth that can lead to a strong U.S. economy and we are in extremely different circumstances than when this bill was pushed in 2008.
      We know that gold tends to follow oil in the market and the indicators to make calls happen fast.  With the rise of the Euro and the dollar longer than it should have been we have to add in all the factors that sway PMs for instance we have the Swiss Gold Initiative coming and traders on high alert waiting the vote, but many already assume it will be a no.  The physical gold moves the market way less than the digital kind.  Let us add GOFO Gold Forward Offered Rate, kind of a way to swap gold in return for USD a lease to own dollar rate.  However, there is not an interest like on a lease with a borrower and lender where the lender gains it is more of a swap because the lender is the one paying a rate of interest.  It is not the spot price of gold; it is a subtraction of LIBOR corresponding values.  These swaps are made from one up to 12-month periods.  Shorting mass amounts of gold drives up the lease demand and that GOFO then is lower.  There are no supply problems for contract and the idea of leasing metals appeals to many especially when they see the contracts lower than spot price like we have.  A negative GOFO shows that demand for the swap is high; this could be for lack of inventory by COMEX or the futures offered by the SGE.  These indicators with the GOFO could be that big changes in the PMs could be on the horizon, even if the demand is just so traders can short gold the GOFO has shown the bottom price before could it again?

Bought Nov. 14
SLV April 17, 2015 calls strike $15.50
paid $1.23

The Lesser of Two Evils

As Americans today is a very important day, as midterm elections come to an end, so do many politicians dreams for change.  The social issues that most Americans vote on, or are concerned about are the least important to the masses.  I am not saying that gay rights and abortion are not worth campaigning and voting for.  This year you may want to hold back your own personal donkey vs. elephant emotions, because how the FED is run, is on our table for a vote, this could be the most important issue we face historically.  Could the FED and its interest rates be run by congress for the first time in history?

 This is what people should be worried about, if you have money in a bank, these issues should be what your main focus is on.  That the interest rate polices would no longer be controlled by the FED.  These issues are huge; in fact, this election is the first time we have seen members of the GOP issue bills like this.  Even when a bill to audit the FED was introduced 2012.  We saw what challenging the FED did to Ron Paul.  The FED is running our economy, so lets put aside our emotions about these social issues and understand what is really on the ballot here, the less active the FED is the much stronger the USD is.  We are seeing this now, the USD is on a four year high, this is because of many factors. A few of those factors are the announcements about what is happening with the FED and its decisions to end QE.  The negative interest in Europe and now this legislation challenging the FED, we see the USD rising with people’s new sense of security in the market and economy.

            The outcome of this election, which if the GOP takes the office, the FED will have to answer to someone, means its days of control will be limited.  The GOP has yet to control the senate since the 2008 crash.  That does not say too much, since the democrats have been in control we are also massively in debt, even though we also have not seen a crash like that since.  For any group to change the position of the fed, it could be a potentially suicidal situation.  If the FED raises the Federal funds rate this would destabilize the economy all the leverage and carry trades unwind, the stock marked sells off, because of leverage the prices would crash.  On the other hand, spending money is the power congress has.  Lowering interest expanse, congress is empowered to spend more created and taxed dollars by the trillions.  It is kind of a lose-lose situation.

Elections should be a way to win and make changes without a fight or war, yet who can win when our leaders are lawless and we can only choose between the lesser evil. If you look at past elections and the puppets that America has, all of our presidents since Kennedy have been CIA run.  Regan just read the teleprompter, Bush… need I even comment, even Obama who I was all for until I looked at the facts.  Throw an election where we have someone like Putin up on the stage, no writers or hands in his pockets, just someone fighting and believing in us, in our country, not for all the corrupt aspects of money.

As an American, I do pride myself on freedoms that we have, everything from choice to ability.  However, there is a major price in this delusion, because we are brainwashed daily, media forces our belief system and desensitizes our souls.  Hear no evil, see no evil is how we view the world.  Even though we think we are free and that our votes are worth something, it is all a dream in a very corrupt world. Once we all wake up and see what is really happening, I do not mean your status on face book, we may really make a change for ourselves and nation.  

Next show on the Silver Screen

Is m2 the ultimate denomination of wealth?

A decade ago in 2004 silver was only $6 an ounce then in 2008 $9 now in 2014 you are looking at almost double what it was six years ago.  Even the epic loss in 2011 did not seem to tarnish SLV as an investment.  I would look at these numbers and agree that investing in silver is a sure bet.  Floating rate notes (FRNs) cannot compare to silver trading, when buying silver it’s more of a stack and hold type of investment.  The metals market cannot keep up the lows we see, the production in mining is well above the low numbers that we are trading at currently.  Are industrial buyers just locking in a supply?  We are seeing mass rollover of long contracts, unusual for industrial buyer’s positions.  These seem to be a “deeper pocket” strategy, possibly metal manipulation.  Silver is oversold when looking at a technical picture, last year looking at the RSI you see silver bottoming with lows right before it hit the lows June of last year.  Has the spike in SLV just begun?  We saw record sales last month, with the most volume ever seen in SLV COMEX futures, even shortages in the physical metal.

Could silver go lower?  Some traders predict $15 others see the lows just a way for the SGE to buy discounted metals and horde them until they can control the new fix price.  Who can really predict the drop or rise with all the global entities corrupting the market.  We never thought we would see interest rates at zero, how do we know what is to come?  Well look at history, look at human and market predictability, in no way will they just let metals go lower than we see now.  This is why trading metals is really the way to go; yes holding the physical PMs is a great insurance for your own personal assets.  Trading metal options is a true and complete strategy.  While the cost of silver is so low I personally would stack and hold, however as it gets higher lets say over $49 I would switch to lead.

Follow the yellow brick road

Experiences in Asian culture concerning paper money has not been so good, historically they have more tangible assets than we Americans do.  With the economy in such disarray, it looks like our own negative fiat experience is just beginning with the monetary challenges that we face in the East and West.  China and India combined make about one third of the global population, this is not including Russia and Iran who both seem to be on the same page as China and India.  Historically having and buying bullion has been a strong cultural way to secure their disposable income for centuries. Gold has not just been a social standard for these countries but a necessity, an insurance.

 The SGE is pushing to provide gold options; this could change the London fix price, something that they have been working on for some time now.  So will we see a mass selling spree of bullion?  I think not, not when it comes to physical gold.  We are not seeing just a trend in the buying of gold; we are experiencing a major shift in structure as a whole.  Russia and Asia are acting like their own CB by veering from the flood of QE and securing their own currency truly diversifying their own wealth backed by gold not oil.

For instance, Russia bought 37.3 tonnes of metal during a time when political tensions are at a high and Putin’s own currency is falling hard, they buy gold.  Putin does not seem concerned with much but the buying of metal, since this was the largest amount by the CB in the last fifteen years.  Putin’s battle with the bankers seems to be reminiscent of the Battle of Stalingrad or Napoleons invasion, he is finding a way to defeat the fall of his currency by investing in gold.  We are seeing this with China and India showing high numbers from the SGE surpassing last years.  The festivities this week in India caused gold to reach a high, during this week 20% of gold purchased annually happens during this festival.  In India, half of the jewelry bought in a year is for the some 10 million lavish weddings that take place, some lasting days.  Where the gold that is bought and passed down to the new families is considered more important than the bride and groom.  Since they are the second largest buyers of physical gold India makes up about 32% of the worlds gold buyers, we see a lot of volatility with the price as the puppetries try to keep it below a reverse level.

Fear of the FED and higher rates cause traders to get cold feet when it comes to gold, and you see more and more of the fluctuation in price and stocks as the market swings. All this year we have been seeing an anti gold campaign in the two largest buyers of the precious bullion with luxury bans.  We have to remember that India’s Reserve Bank is a branch of England’s (Rothschild’s).  These countries seem resistant to the ban and gold and metals are still in high demand, so why is it still low?  That way they can buy it up at a low cost.

Reassurance is our only FEAR

Okay, with all the news being about Ebola, I did not want to engross my readers with more information that we already know. Let me be the one to put a twist on it.

            Anytime that the government is telling us that we have nothing to fear, we should be very afraid. I am quite sure Hitler told all the countries he took over and the people he killed “not to be afraid” as well. As history repeats itself time and again, a common theme is the reassurance to the people, to reduce panic and fear by the emperors and kings just as they turn their back on their own people and leave them to die. In 2014 I am stunned by the lack of important measures taken to prevent this disease from spreading.

            The incompetence is unreal, we are seeing it with the CDC, the hospitals, even our own president, who is making this seem like we have control over something that is already too big to regain any hope for the soon to be 100,000,000s of people infected. Let’s just estimate 8,000 people out of the say 20 million combined countries in Africa where infected bodies are laying in the streets and handled by family members, with no adequate systems for sewage and water. If it is transmitted by fluids, is it in the water ways and how long till it mutates in some of the highest populated countries and becomes airborne?

 According to Obama there is nothing to fear, and information given by the CDC members is overly reassuring, all is fine, despite the  attempts to track down all passengers and anyone who has come in contact with the infected, or that it costs over $150,000 to clean an apartment after, but its fine to travel. With Americas extreme caution and use of experimental drugs on patients any infected would be idiots not to come here or send a sick family member here or Europe for treatments. We now have an infected nurse flying on not one, but two flights. A nurse spoke out saying some members broke “optional” quarantine and went for soup. We have optional tests at airports and are flying in people from Africa.

Many may think this to be population control. I feel it’s way deeper than that NIH keeps pushing to vaccinate entire countries with a new Ebola vaccine, it may be that the true threat will lie in the vaccine itself. Pharmaceutical companies are just like many of the  bankers and the FED, corrupt and out for themselves. With the healthcare system totally turned around by Obama care and costing 300 billion more than expected. It seems to be nice timing for a major disease to break out that has no cure, the FEDs bubble is bursting and market collapsing, lets blame it all on the outbreak and ISIS while we gain more oil and buy up gold and PMs, sit back and burn the fiat to keep warm.

Market indicators of gold manipulators

Let us gain a different perspective on things, let me start by correlating some of the major players in the market and how they tie in to one another. One of the largest futures and options exchanges in the world is the Chicago Mercantile Exchange & Chicago Board of Trade) the CME group is described by The Economist as "The biggest financial exchange you have never heard of" created designated contract markets (DCM) of the CME group. The DCM are the outcome of four very large exchange groups merged into one, The Chicago Board of Trade (CBOT), NYMEX, and Commodity Exchange, Inc (COMEX) and CME. In 2010 they owned 90% of the DOWs index and 24% of the S&P Dow Jones Indices. The CME recently bought the Kansas City Board of Trade for $126 million.  Matter of fact they have a hand in everything it seems, they even provide “Clearing services” settlements that specialize in the “clearing of exchange trades”. Now they operate derivatives exchanges in London and are the new administrators for the LMBA. The CME even ended a 117 year run of the silver fix earlier this year with the LMBA. They even changed the trademarked name from “fix” to “price” just to ensure recognition because they could not keep the “fix” name.

 The question is when and who will gain control of the gold price? We know China has been trying now for a while and are close, China stated at the Gold Congress a month ago it wants control of the physical gold price. With how big the China HSBC has become, despite the controversies and money laundering. They seem to have a hand in all parties decision making and are working close with the LMBA and CME. The LMBA seems at odds with the Gold World Counsel (GWC) their former spokesperson, so what is really happening here.

            How much control does the Financial Conduct Authority (FCA) and International Swaps and Derivatives Association (ISDA) really have with the likes of JP Morgan, HSBC, Barclays, Deutsche Bank,  Scotia Mocatta and UBS the heavy holders of bullion and members of London Precious Metals Clearing Limited.  Since September 22 the LMBA has not been supplying the LME with forward curve data that has been supplied to us by the market makers since 2009, instead it is replaced with the Gold Forward Offered rates (GOFO).  

The demand for gold is still very high we see this when we look at charts showing tons being sold and mined. How do we find the true price and value of gold?  We do know gold is massively undervalued, and heavily manipulated by the market.  Do not just invest in PMs in case of the market crashing; invest because the fiat money will inevitably fall.  Time and time again the people that are holding PMs get rich not poor.  You own PMs not just to get rich, but to hold your own economic value.  Gold insures that you pass wealth down for generations to come, it is not just insurance for you, and it is true insurance for your children’s children and so on.  Don’t be mad at yourself that you missed the one chance you may have to buy gold in the next decade as low is they are, or that you can still even buy these physical metals at all.  In 2008 after the crash the estimated waiting list for PMs was 2-6 months out, if at all.  Estimates on price vary because of the physical gold supply, and that is really more limited than we could ever imagine.

Right past the point of Wrong

"The few, who understand the system, will either be so interested from its profits or so dependant on its favors, that there will be no opposition from that class.”  — Rothschild Brothers of London, 1863

With Rothschild and Sons Limited being one of De La Rue's advisors, its no surprise they won the bid and are signing on to a 10 year bank note printing contract with the bank of England that would begin in April 2015.  Mark Carney seemed confident as he tried to explain, "We have to accept that as this process moves forward, as some economies emerge from a period of exceptional unconventional stimulus, there will be greater volatility,” Carney said in an interview on CNBC today,  “That in and of itself should not influence the path of normalization of monetary policy."

            Not surprising they are “saving” the economy, none knowing how much the monetary inflation required for this will be?  In April 2015, should we see U.S. rates peak?  Maybe they will just keep printing enough fiat to totally collapse our currency altogether.  How do we fight the FED? We have to be very careful in this “gang war” of power. People really think its all about stocks, bonds and fiat, its not. It’s really about the empire and who is running it. It’s about Carney, Dimon, Rothschild and many more. It’s about mass global and social networks of feudalism. Spreading a virus that we all know is mutating and becoming airborne. It’s the building of artificial borders to use and control labor, people and commodities.

  It may be that they are redefining the problem to suit themselves. We the “common” people are always the last to know, unprepared and doomed to repeat the past over and over again. Is this an indicator of what is to come?  Print, print and print for the next decade, is that the new normal way to hedge?  Could it be much more?  I know it is.

           

"Give me control of a nation's money and I care not who makes its laws" — Mayer Amschel Bauer Rothschild

Keeping up with the Keynesians

Positions:Long GLD June 19th, 2015 114.00 calls. Paid $6.80, currently $7.20, with a gain of +5.9%
Buy Gold $1191.50, Currently at $1207.60 for a gain of 1.3%

October is said to be the most frightening of all months, not just for costumes and Halloween, fear fest, etc. October is frightening most of all for traders, this is the month when the market has crashed in the past, including in 1927, 1987 and 2008. It’s no secret that this time of year is a tricky one (no pun intended), many past reports show even with the decline of S&P and large-cap index companies, it also shows October to be one of the best performing with returns at 10.9%. Personally, I don’t see the month having as much to do with the fear in the market as what is taking place in the geopolitical and global economic realm.

            I feel redundant saying it again, but now that the economic data is out, I can finally stop preaching about how the dollar is weak. The previous reports were wrong, the USD along with our economy is on the brink of collapse. Many people have lost so much faith and respect in the USD, that eventually they will turn to a greater currency. Could Harry Dent be accurate when he invested in Australia the way he has, will that be the better economy to live and invest in? Keynesian economics is dead and gone, now if they could print out deeds, we would at least have some collateral instead of just a mountain of debt. Even then, we would be entrapped in mortgages. There really is no room for growth at this point, we as a nation are tapped out due to the depletion of cheap energy, and an array of greedy puppet masters fueling the people and the market with blatant lies.

QE isn’t going to end just yet, not with the negative interest rates in the Euro and its uncertainty with investors, not to mention the bail-outs. The USD is only the lesser in all the evils, not truly a safe haven for foreign investors, it is just has the illusion it is. The capital we had from the colonial era is gone and we have piggybacked on societies’ that had our “new” technologies and ideas. With the huge entitlement outlays to fund, the U.S. will have to keep borrowing and printing, creating more and more debt.

Maybe I could have been spot on with my prediction that the manipulated rise of the dollar was to bring down the price in gold. It would be interesting to see how much bullion JP Morgan is hoarding along with the other owners of the economy. With the “revised” corrected data out on the housing and economics of the U.S, I am shocked to see just a small change in PM’s I would have thought that gold would be skyrocketing with the information released. 

Did I mention the COMEX manipulation? Let’s touch a little on that, traders are to believe that technical analysis and PMs is totally out. It’s not, just learn from the manipulators, they know what traders will do. It’s like getting into the mind of the puppet masters, Central Banks, the FED, etc. Volatility in the market is high in October with record fluctuations happening even higher. Singapore’s holiday and the Chinese market being closed for a week have affected the slow rise in PMs, however when it opens Wednesday and the new SGE reports come in, my prediction in gold skyrocketing has just begun.  

"All the perplexities, confusion and distresses in America arise not from defects in the constitution…, as much from downright ignorance of the nature of coin, credit, and circulation" — John Adams, August 25, 1787.

Lets get Phyiscal, Phyiscal

Strange days are now upon us… In January, physical bullion sales were astronomical and it was affordable for the most part the buyers were excited for the rise of the numbers. Now with the USD strong why are we seeing the same pattern, gold is dropping in value, yet buyers are fanatically buying the physical bullion up. In fact, more physical gold was sold in September than in October of 2013. Despite the current luxury tax, China and India are back buying the physical bullion. Reports show high demand of a 30% increase, possibly due to the current holiday in China and festival in India that is about to take place. Manipulation of the markets may be taking place by common interests and this is said to be a general rule to move the market in a direction that is beneficial to the parties involved. I say this because the buying power of gold shows strength, yet the price is decreasing daily. This is really only with the USD, if you look at other currencies you do not see the price of gold as low, worldwide the price and demand for physical gold is still very strong. If you look at the weekly reports from SGE vaults, they withdrew 50.3 tonnes in week 38, the demand is that high. Silver in London is declining while Shanhi (WPSE) leveled out without decline at SHFE, SGE vs. COMEX. What reports you compare determines the information you receive, reports like OTC tend to lag and COMEX can only give us so much. Seems that the world Gold Counsel would like us to think that the gold demand is low. Just like the U.S. government would like us to believe the USD is strong and that we’re not in a recession let alone a depression. Gold and metal trading has kept many traders afloat in times of uncertainty. If you are not yet trading metals, now is the time to start. Finally coming to an end of a good run, the position from 1309.88, now closed at 1191.50 with a gain of 9%. Cheers Friends.

USD a R rated feature

In 1985, the dollar was strong and the economy and equity markets were how they say, “booming” They did this with all the higher interest rates enforced by the FED, then again in 2000. These were the times the dollar compared to right now, yet the USD is still 30% weaker than in “85’ and 20% weaker than in 2000. So how is the USD soaring above all these other currencies? We as investors want to look at the Purchasing Power Parity value or (PPP) that is just what Scott Gannis did when he wrote the article “The Return of King Dollar” he decided to compare five different currencies to the USD, in this form he states… “PPP theory holds that, over time, currencies move vis a vis others in a way that reflects changes in relative prices between countries. Currencies that depreciate against others typically have higher inflation rates, and currencies that appreciate have lower inflation. For each currency, I have picked a base year in which I thought that prices were in rough equilibrium, and then adjusted that value over time for changes in relative inflation rates. The current PPP value of each currency is therefore approximately equal to the exchange rate that would produce roughly equal prices for a given basket of goods and services in each country.” He goes on to show graphs that use a basket of goods (commodities) with each currency and used inflation information for charts from the U.S., the PCE deflator; for Australia, the CPI All Groups Goods Component; for Canada, the CPI; for the Eurozone, the German CPI; for Japan, the CPI Nationwide General; for the UK, the RPI less Mortgage Interest Payments. No shock the USD lost major value against all. So what is really moving the market? CNN put out a “Fear and Greed index” I mean truly they did! I find it amusing that how this can be measured, short fear, long fear? Sure why not. Investors should be terrified right now. Fear, as I have said before plays into why the reality of why the USD is weak, the traders ever looming fear of the market collapse. The true reality that the USD is a reserve currency and will have to handle the EUR’s deflation. The present investment demand from china is low, as well as need for oil. We see that commodities are decreasing all over the market. Leverage is at a all time high. In fact right now the market looks like a horror movie “Soul of Dudley” and just wait the sequel is coming soon, Blockbuster hit “were F@$#ED” Ethics in the U.S. are separated by law apparently. Holding short at 1309.88 current price 1214 with a gain of 7.3% Fxmade2trade

E = mc2

The U.S, Britain, China, Germany, and Russian UN Security Council members are now making deals with Iran for nuclear weapons. Oh! I’m sorry, not weapons, for “environmental purposes” (said sarcastically). This deal is to take place by November 24 Britain’s Prime Minister David Cameron seems to be leading the support Rouhani campaign. Cameron said, “That Iran should also be given the chance to show it can be part of the solution, not part of the problem.” This said from a country who wanted nothing to do with him since 1979. Rouhani after publicly blaming the U.S. for the way the Middle East has been overcome with violence and terrorism. Or… he is still hurt about us taking his nuclear power away in 2005, when his over confidence and ego got him demoted (said he resigned) from his position as the top nuclear negotiator. International Atomic Energy Agency (IAEA) saw his need for nuclear “power” to be a sensitive topic with the political issues at the time. Now he wants to team up. Please do not forget in the first press conference after he won the election, Rouhani said, "the ultimate responsibility to resolve the Syrian civil war should be in the hands of the Syrian people.” Now such a change of heart in Rouhani, such a humanitarian. He who has in the past been accused of being “power hungry” with an extreme vendetta against the U.S. We now have a common goal in defeating ISIS. Even the Brit’s are reopening embassies and we are making nuclear deals. Perhaps instead, we should team up with the Shia, the Sunni, and the Kurds. We MUST have other reasons or is it other resources? Is the U.S. worried about Iraq’s new government or military operations that no one seems to be talking about? Iran saw what happened in Afghanistan and the Karzai government we created and what came out of that. So yes, the faith Iran has in the U.S. is understandably limited, if any at all. It seems Rouhani knows that we are all in need of Iran’s help to defeat the threats taking place right now; he seems to know he is holding all the aces and the nuclear power is on the table. Right now The movie War of the Roses is somewhat how our relationship with Russia is now and Rouhani publicly slandering the U.S. resembles an initiation for the Russians to trade “good and services” for oil. Over 500,000 barrels a day from Iran are an estimated offer. What does this mean? Well, we are looking at a complete shift in the oil market for starters. With the contracts for oil that India and China hold with Russia being met, Russia can cut America’s distribution by offering a reduced rate. Rouhani is an extremely smart individual not only an expert in economic trading since ‘89’; he has also been a member of the Supreme National Security Council. Iran's Assembly of Experts member as well as the country's top negotiator with the EU three on the topic of nuclear technology in Iran and his resume is truly extensive. If and when Rouhani teams up with Russia officially, they can provide enough oil to supply all of northeast Asia and more. Rouhani also knows Russia can help them go nuclear; they have been helping them for years. Watch those oil prices fall. Its no wonder Obama was on such a massive campaign to remove oil restrictions. Will gold keep falling as well? Holding short at 1309.88, current price at 1218, with a gain of 7% Fxmade2trade.

Don't trim the HEDGE too close America

Could it be real yields, interest rates, and crude oil, have less to do with the gold than is believed. Gold as a hedge with inflation? The gold price chart varies year to year compared to all sorts of inflation data and seems completely random in the patterns. What moves Gold? Gold is much more appealing when the price is high and seems to be a major “time trend” so along with all the coloration's and charts people put above their own personal strategy, are they looking at the bigger picture. Most think gold is the most unproductive asset one could hold. Could it be that gold is just valuable because people “think” it to be? That people just want to value something, anything, might as well be gold. Could it be that it truly is a natural limited resource, that will again up, way past $2000 oz. in late 2015? When paper money and bonds and futures all fall gold is a physical asset that has been used for thousands of years worldwide. Well I will buy into the idea that the dollar will fall, and possibly the U.S. collapses completely, so I guess I am buying into American human nature and the workforce failing, with no faith in the U.S. government at all, call me a cynic if you want. We only own 5% of all the global gold reserves and it baffles me that our monetary policies are the fuel to the worldwide price. When the over saturation of paper gold get's torn to pieces you better hold on to your physical metals and keep bulling on my friends, looking ahead of course. Holding short at 1309.88, Current price 1221 a gain of 6.7%

Lquid GOLD PLATED currency

Forget the presidents gut wrenching speech taking away from the reality of a plaguing virus with no cure, or the fear that we are even considering aligning ourselves with the brutal Iranian president Hassan Rouhani and his visit to the UN in New York. Lets talk about what counts MONEY. Zhou Xiao chuan the man whose priority was to tackle corruption is now looking at being “demoted” or blatantly fired from his infamously corrupt government position as China’s Central Banker. This seems to be along with the anti corruption policies in place by Chinese leader Xi Jinping, who seems to be adamant about winning over the love and trust of the Chinese people. Reports came out on the “Wealthy Chinese” leaving do to an array of contributors, such as air and food quality and a lack of quality education. Stated in the Hurun survey of the wealthy people with assets of seven million on average, invest around 16% overseas. Good for us financially, bad for them. Our wealthy flee to run from taxes, they are running to us for things that will not be able to change for decades. We have to remember they are a dictatorship. All the hype of the Alibaba stock the man behind the vision, from poor to rich, a heartwarming story that so many investors bought into are now watching the horror movie that they really “paid” for. Nothing is done without the government’s approval (or hand in jar). As soon as the news of the central banker Zhou Xiao Chuan came out today the USDX spiked 1/2% higher and the USD even stronger. What a joke I live in the U.S. our economy is “crap”, I guess in a paper and digital world the dollar is soaring. While people discus in forums and chat rooms, the close relationship Obama and Zhou have “tennis buddies” and such, jokes regarding how the new banker of China will have Goldman Sachs on his resume and Obama as a reference. This is all too real for most traders. As we dump U.S. equities = money leaving U.S. investors will be looking to Asia for a better yield = money in Asia. The central bank is supposed to create price stability all this is causing, is liquidity. As the dollar climbs I hold gold short at 1309.88 current price 1217.00 with a gain of 7% Fxmade2trade

YOU"RE as COLD as ISIS

Traders seemed undaunted as the U.S. crusades a “bomb ISIS” movement and when September 11 came and went and the S&P only fell 1% all seemed unchanged on the market even with the loom of a terrorist attack. As the U.S. government tries to dumb-down the reality of what it would mean for investors if, and when they do attack the U.S. so for now we are looking at dipping our hands into yet another war that we for now have nothing to do with… well, at least not on out home turf. The reasons could vary from protecting our country, or a much deeper level of ways that the government would be able to access areas and acquire resources otherwise unobtainable to the U.S. The pentagon estimates we will spend close to seven million a day for operations in Iraq and Syria. Is this a coincidence that all our involvement in wars and “aid” are places of major oil lines or mines? Even the Malaysian crash let us into inaccessible areas and see what kind of technologies our “competitors” hold. Do we really have the money to spend seven million a day? The impact on our already extensive debt, bodes the market will have a monumental crash. When this event takes place and this is only a matter of time before traders fear takes over. They will start bailing on the USD, searching for more physical investments. If you do have metal in the physical form hold on its coming soon my friends just do not rush it and be pulled in to soon. Holding short at 1309.88 current price 1222.00 a gain of 6.7% Fxmade2trade

A "DENT" IN GOLD PERDICTIONS

The founder of Dent research and Harvard grad Harry Dent is a fascinating and amazing individual, many traders have relied on his predictions to aid and sway their own strategies. However, can his predictions of gold being at $700 in 2015 and in 2020 to $250 be real? Maybe, it could all be propaganda to sell his "The Demographic Cliff," book and idealism. He predicts a crash in our economy like no other, and that I can believe more than gold being that low even after the crash in 2008 trying to buy physical gold was close to impossible. If and when the market does collapse again people do turn to physical metal as a great investment as well as by then the anti luxury ban in China and India will be over, and just because gold follows the trend of crude oil, it doesn’t have to. “If a man will begin with certainties, he shall end in doubts; but if he will be content to begin with doubts, he shall end in certainties”-Francis Bacon Holding short at 1309.88 current price 1216.00 a gain of 7.2% Fxmade2trade

Ali, Ali, Ali debt we're free...

38% to $93.89 a share, Alibaba’s worth $231.44 billion, Chinese e-commerce giant is now worth much more than many of the large companies in the USA While Ma said… Alibaba will be bigger than the USA's Wal-Mart, but the massive retailer is still worth $248 billion, he is close. While Google at $403 billion still ahead. Still leading Johnson & Johnson has a cap at $305 billion. Warren Buffett’s conglomerate at $339 billion. Wells Fargo is still up and worth more than Alibaba, with a market cap of $279 billion However… Ali is bigger Than proctor and gamble, P&G’s $229 billion. AT&T with a low of $184 billion. Coca cola even is only worth $184 billion. JPMorgan Chase as we know is lower than Ali at $230 billion. Even face book at $203 billion. Ali and the growing strong economy of consumers is Asia has just begun if we can switch positions with them as the biggest exporter to the ever-changing economy and make china our major consumer than the US may have hope.

Willy WONG-KA and their Golden ticket

With China being the largest consumer of gold and India close behind should we be worried that china will start gaining complete control of this major market and not just in the buying but the mining and economic gains as well. The World Gold Counsel and the China Gold Association signed a ‘Comprehensive Strategic Cooperation Agreement’ this last week Song Xin, President of the China Gold Association said at today’s signing ceremony: “This partnership aims to release our shared ambitions to encourage international enterprise in China and shape the ongoing growth of this important and rapidly changing market. The World Gold Council is a strong advocate for the development of the gold market. The collaboration at this year’s China Gold Congress marks the first step in a long-term relationship which we intend to foster over the coming years.” Commenting on the partnership, Aram Shishmanian, CEO of the World Gold Council, said: “China has made many significant contributions to the global gold market and will play an increasingly important role in the future. The partnership supports the China Gold Association’s ‘Stepping Out and Inviting In’ policy and although the World Gold Council has been active in China since 1993, this partnership will allow us to build even stronger ties with our Chinese counterparts, setting the foundations for the next decade of growth both domestically and on the global stage.” The data demonstrated was remarkable and how can you argue with such a positive outlook on gold benefiting so many poverty stricken countries though tax revenue and job placement, etc. Many people believe that the Chinese central bank are not reporting their gold reserves to the IMF just like Russia and others did recently, but of course it is all speculation thus far. Holding short at 1309.88 current price 1234.00 gain of 5.8% Fxmade2trade

In the INTEREST of GOLD

So my last post was about the correlation of crude oil and gold, war and location. Within all trades many correlations exist, its good to know and understand them, so you then can position yourself correctly. One of these correlations is the rise and fall of interest rates and the rise and fall of gold, since gold has no interest, it dips when interest rates rise and peaks as the interest rates fall, so that would indicate that you buy gold when rates are low and sell when rates are high. Because this is an accepted correlation, the central banks are watching the market for indication showing prolonged inflation, and have policies that could reverse this correlation. In fact the we saw this opposite reaction when rates rose the price of gold peaked in Europe and in India in 2011, this was an exception in decades of historical data. Many other factors can influence the bullion market, fear seems to move it the most, and that no one can predict. Holding short at 1309.88 current price 1240.00 gain of 4.6%

OBAMA AND THE GOLDEN FLEECE

The correlation between gold and crude oil is no secret this has been a connection that many traders have accepted and used to hedge their trades for years. In the last year we see oil at the lowest it has been since April of 2013, with gold following close behind it. Obama’s campaign and determination to lift the oil ban that has been set for decades couldn’t have come at a more convenient time, the major countries that are producing crude oil are in a crisis and need U.S. aid. With Asia and the U.S. having the worlds largest oil consumption what better way to dip our hands and gain Intel on these resources’ indirectly. Obama has already cracked the door to exportation of oil and has yet to fling it open completely but when he does and it seems he will expect the price of gold to follow. Holding short at 1309.88 current price 1255.72 gain of 4.1%

Put'in all your eggs in one basket

With the tension still building between Russia and Ukraine, we are finally starting to feel the backlash of the war that we had not seen thus far. People have been bailing on the euro and buying up the USD, not because the USD is strong with a solid economy, it is the fear of Vladimir Putin’s unpredicted moves and the issues with the ECB. Since the beginning of the year the euro has lost over 6% against the dollar and now the USD has been gaining in ways that no one could have predicted surpassing the GBP and the JPY. Many different things can influence the strength or weakness of the USD but one thing is proven as the USD gets stronger the price of gold is declining. Holding short at 1309.88 current price 1255.50 gain of 4.1%