Gold collapsing. Bitcoin UP.

[miscreanity]

Two must-reads:

The Case for a 100 Percent Gold Dollar

and

The Sunday Night Massacre, One Year Later

The first is a classic, explaining that only a perspective shift is necessary for a gold standard to function.

The TF Metals article explains exactly what has been going on for the past decade and is coming to a transition point - the banks are balancing themselves and will soon be in a position to actually profit from a move up in the precious metals.

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[cypherdoc]

perhaps you don't know.  the demand for credit is non-existent, hence the low rates.

The demand for credit is stratospheric. However, the demand for safety is greater. End result: stagnation.

Does this sound familiar? Which gold price are new trade transactions using?

Any guess as to why gold is refusing to break down? I'm impressed that even the paper side is staying aloft.

Recall our discussion a while back about the difference in transparency between Bitcoin and gold, and why I'm only investing - not trading outside of Bitcoin.

I think you'll like the asteroid mining article, though.

is this the credit demand you were talking about?  http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100016668/europe-faces-japan-syndrome-as-credit-demand-implodes/

[miscreanity]

is this the credit demand you were talking about?  http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100016668/europe-faces-japan-syndrome-as-credit-demand-implodes/

Credit demand is immense, just not from traditional banking sources. These statistics cannot capture the growing undercurrent of private contract (esp. hard money) lending. The banks may be hurting, but that leaves plenty of room for more nimble outfits with low overhead.

Credit demand destruction is exaggerated - it isn't collapsing, it simply is migrating to where it is treated best. The main losers are major banks, although everyone loses when the money supply is inflated. Again - the statistics are blind to this.

[cypherdoc]

http://www.zerohedge.com/news/funds-cut-positions-gold-4-and-silver-20-gold-positions-3-year-low

[cypherdoc]

We're going to fill the Apple gap real fast and then $500 here we come!

[cypherdoc]

y'all been double topped.

[silverbox]

and the correlation continues!!

AAPL down,  BTC down!!

[cypherdoc]

and the correlation continues!!

AAPL down,  BTC down!!

the divergence begins today!

[cypherdoc]

[cypherdoc]

iz it tim yet?:

[silverbox]

It sure is, time to buy them miners, super cheap atm!!

Are those our dates for when we FTJ after BTC becomes the global reserve currency?

[cypherdoc]

It sure is, time to buy them miners, super cheap atm!!

Are those our dates for when we FTJ after BTC becomes the global reserve currency?

[cypherdoc]

Charge!!!!!!!!!!!!!!!!!!!!!!!!!!!

[miscreanity]

http://www.zerohedge.com/news/funds-cut-positions-gold-4-and-silver-20-gold-positions-3-year-low

Funds can't make a return when there's so little movement, so of course they'll drop anything that's holding steady. When they dump, the real players scoop up shares on the cheap. These market conditions are slaughtering momentum-chasers.

If you're going to use funds as part of your argument, you should remain consistent - they've piled into Apple. You advocate selling Apple and selling gold miners, yet major funds are doing the opposite in each. So which is it - are funds to be followed or not?

[cypherdoc]

http://www.zerohedge.com/news/funds-cut-positions-gold-4-and-silver-20-gold-positions-3-year-low

Funds can't make a return when there's so little movement, so of course they'll drop anything that's holding steady. When they dump, the real players scoop up shares on the cheap. These market conditions are slaughtering momentum-chasers.

If you're going to use funds as part of your argument, you should remain consistent - they've piled into Apple. You advocate selling Apple and selling gold miners, yet major funds are doing the opposite in each. So which is it - are funds to be followed or not?

it really doesn't matter to me who is selling Apple and miners.  all that matters to me is that the prices of both are dropping and my shorts are benefitting. 

[silverbox]

Till the bearded one announces QE3 and your short gains will be erased in like 2 milli seconds.. 

[Hunterbunter]

Till the bearded one announces QE3 and your short gains will be erased in like 2 milli seconds.. 

He will do it when he knows everyone is short I bet.

[cypherdoc]

perhaps he lets the stock market collapse 54% and 57% like he did back in 2000 and 2008-9?  or perhaps as much as the housing market has collapsed?  aren't we back to prices in 1998?

i guess that would just be a flesh wound 

[miscreanity]

perhaps he lets the stock market collapse 54% and 57% like he did back in 2000 and 2008-9?  or perhaps as much as the housing market has collapsed?  aren't we back to prices in 1998?

The banks are more levered up now than they were three years ago, so that magnitude of collapse wouldn't just threaten to wipe them out - they'd be craters. If such a drop does occur, bank holidays will be guaranteed along with major distracting events - war, for instance.

[cypherdoc]

perhaps he lets the stock market collapse 54% and 57% like he did back in 2000 and 2008-9?  or perhaps as much as the housing market has collapsed?  aren't we back to prices in 1998?

The banks are more levered up now than they were three years ago, so that magnitude of collapse wouldn't just threaten to wipe them out - they'd be craters. If such a drop does occur, bank holidays will be guaranteed along with major distracting events - war, for instance.

precisely.