So banks in Germany have officially stopped gold price setting in response to questions over Germany's missing gold, while last week Friday and this morning gold is turning bullish. This might turn out to be one of the greatest scams in history and send gold prices flying to the true inflation adjusted value.

In this video by Alan Watts there is a very nice idea about the true role of gold in society, that really all along it has played a primitive role of Bitcoin - a unit of account.

http://www.youtube.com/watch?v=ssDY74nLuLg&feature=youtu.be
see 13.40 onwards.

"In order to avoid the risks and expenses of shipping gold overseas in trade great banks around the world sent their gold to deep vaults on an island in the Pacific, where it could be moved from one banks vault to another easily and securely when it needed to be traded. for years it functioned efficiently. One day when an official asked to see the gold it was discovered that there had been a earthquake years before and the gold had been berried in their deep vaults. but none the less, it functioned all the same for all those years, because the book keeping was sound. "

This is the same situation that the FED and Germany are in now. The intrinsic value of gold has been irrelevant for many decades, and has functioned just like a primitive form of bitcoin, a unit of account, good for book keeping.

I think this is going to become an ongoing idea in the coming months and years, that although gold may be worth more than it is now, it is losing its shine. Bitcoin is the most sophisticated unit of account in history, and it may replace gold in this sense.

This movement has carved a 5 wave elliot wave over the last 24 hours on BTCE. the retracement was healthy and supported. Im thinking third wave up past 950, fifth wave to 1000.

agreed 100%. if you are angry at the market, youre doing it wrong. "emotions will ruin your profits" - also, profits will ruin your emotions.
its a sport, an art, it will take years of practise and failure before you get it.

despite appealing short opportunities in bitcoin, I have always been scared to death shorting anything that has a such limited supply. bears are sooo easy to trap in bitcoin, when price is projected to 10,000, 100,000 etc.

yeah it could be a bull trap but the bears might get more than they bargain for.

I scalp a bit on the forex, especially in gold, and I notice before any large move, the price creeps up with little volume. There is probably a big stand off between 780 and 1120 ish. you will see big volume when one side gives in, it looks like the bears will give in and cover shorts.

No I think that is the point. people have been talking short for several days. I took a poll that shows most people are short. but the larger C wave correction in question has not come. time to cover your shorts? i think so!

There are two possibilities, this could be a break of the wedge up, or it could be the third of 3 waves up (C) following the sharper three waves own. I guess its a good opportunity because they are both likely to continue for a profitable distance upwards. I think come February many shorts will be reversed. by elliot wave analysis, we could be in a III wave now, I think so because the sentiment is so bearish, in articles and even here. people are short, but the price hasn't dropped. up it goes.

Are you saying TA only works when the majority follow the chart? that cant be true. If the masses all followed TA they would all win, and that cant happen. The masses craft the graph through social mood/news, and because price is highly subjective, it turns out totally irrational. we read the graph, and the sentiment, we see the panic, we see the greed, we see the insiders, and we stay ahead.
The ongoing theme is still up, and the masses are still small.

So three waves have come and gone, we are in a 3rd wave or a B wave. Reading over this forum many people (other than proudhon haha) seem to think there will be squeeze and panick (B wave) and furthermore, there is a lot of talk going shotr. Would I be wrong if I said all us believers would be quick to close our shotrs if the next surge goes up to $1100 again? I really dont think its unlikely.
I think that maybe early february shotr positions will be closed if no fall comes. The trend is still up, weekly and daily, and on an hourly chart all I see is small 3 wave correction.

'Lines' are made also when stops and limits are hit and when a lot of people default. these lines are most common and necessary because of the distribution of wealth and information.
It was hilarious to watch the gold manipulation in 2012-2013 when some of the NFPs came out very negative yet gold fell sharply after a tiny spike up. There were a lot of stops hit back then. sentiment used to be 80% bullish on gold. now its 59%.
its all science in the end. TA is not a joke, however ambiguous it may be.

That the USA would ban bitcoin does not gel with the sale of DPRs 30k bitcoins by the FBI. The USA is run by and for investors, I simply dont see them banning a commodity they have just sold millions of dollars worth of. besides, the FBI holds a further 144k bitcoin. With the potential price of bitcoin in the future, they will be shooting themselves in the foot to ban it. If the regulators can come to any conclusion what so ever it is likely to be only a good thing, because it gives all the legit investors something they can finally act upon, and besides, you cant regulate bitcoin.

Hey folks Im wondering, when do I become able to comment on other sections than the noobie section? Im new to the forum but not new to Bitcoin, and I have some ideas that I would like to share on the forums.
Thanks,
Matt.