Marc Faber: "Gold Is Quite Oversold. I Will Consider Buying Gold Over The Next Two Days"
Anyone
trading gold and silver most likely had a heartattack this morning. Of
that subset, anyone who survived and traded with conviction made a
killing, following an impressive surge in both metals, which saw silver
soar from $26 all the way back to $30, after it was made clear that
there was no behind the scenes liquidation of the metal but
merely more piggybacked margin hikes this time out of China as was
first reported by Zero Hedge. Another factor that helped was Marc
Faber's appearance on CNBC earlier, who said that gold is now "quite
oversold" and that he would be adding to the yellow metal in the "next
two days." In retrospect, he should have been adding today to his
existing holdings. However, since he already has 25% in gold, he is
forgiven. Mutual funds which, however, have about 1% in gold, are not.Shanghai Gold Exchange Hikes Silver Margin By 20%
Wondering what caused the dramatic plunge in gold and silver earlier? Wonder no more: the CME's counterpart in China, the Shanghai Gold Exchange, decided to follow through with an identical, if more substantial, action to that undertaken by the CME on Friday, and announced an increase in the Silver T+D contract margin from 15% to 18%, a 20% bump; the SGE also noted an increase in the price range limit from 12% to 15%, which will be promptly fulfilled, as margin hikes traditionally tend to lead to a sudden spike in vol, contrary to well-meaning expectations. There was a second announcement, slightly more cryptic one, noting that if volatility were to persist, the SGE would outright halt silver trading (although the Google Translation of this previously unseen form announcement is a little sketchy). Expect to see more exchange intervention in precious metals today. Regardless, those who bought silver 15% lower a whopping, oh, two hours ago, courtesy of the out and out sheer panic, are quite grateful to the Chinese.
Waiting For The "Cashin Crash"? Here Is The "Fermentation Committee Chairman" Himself With An Update
Last week Zero Hedge as well as many others, noted the observation by UBS' Art Cashin that the market was setting up for a "Thursday/Monday" Crash, which was lining up perfectly going into the European open, until someone, somewhere decided to start buying up everything. Does that change the expecation for a wipe out today? Here is Art himself with his updated take on what (and what not) to expect today.The Spirit Is Willing, But The Flesh Is Weak
Look at what they are talking about doing. Look at how unsuccessful any of the previous, poorly thought out plans have worked. Contagion has spread. European bank shares are down 50% from a year ago. European stock indices are down 20% from a year ago. Portugal and Ireland are in deep trouble, and Italy and Spain are on the cusp of trouble. Will more bogus plans that don’t really ever get implemented, that fix nothing, but make the system more convoluted really do anything? Wouldn’t we be better off letting some defaults occur and picking up the pieces. Maybe more time and energy should be spent on how to pick up the pieces while some are still independent, rather than further linking everyone to the anchor? Maybe more time should be spent determining if Lehman was “solely” responsible for the problems in late 2008 and early 2009? Maybe the problem wasn’t Lehman defaulting and it was just another piece of a bigger uglier puzzle and we are so busy trying to avoid another “Lehman Moment” that we have lost sight of whether it is that important to avoid a default?CNBC Video Interview: Market Update
Latest market update from Dr. Marc Faber on CNBC.
*Marc Faber is an international investor known for his uncanny predictions
of the stock market and futures markets around the world.*
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Ephrem, 2011-2012 and 2008-2009 represent two points in time within the
evolution of the sovereign debt crisis. It all depends on which equity
markets. Weaker markets that did not make new highs in 2007, such as many
countries within the Euro zone, most likely have not seen their reaction
lows. These lows should be established by 2012. The stronger market markets
will continue chopping as...
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If Silver Continues To Go Down, I Will Buy More Too
if silver continues to go down as we have discussed before, I will buy more
silver too. Do not sell your silver, do not sell your gold unless you are a
short-term trader, but anybody who is in this for a long term, silver and
gold will both go much higher over the next few years. - in ETimes
Tickers, IShares Silver ETF (SLV), Hecla Mining (HL)
*Jim Rogers is an author, financial commentator and successful international
investor. He has been frequently featured in Time, The New York Times,
Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times and
is a regular guest ... more »
Equity Markets & Gold Are Very Oversold
Both equity markets and gold markets have become very oversold, and I think
a rebound is occurring. Following this rebound, which I expect to get
underway this week, there will be a longer slowdown. - in CNBC
*Marc Faber is an international investor known for his uncanny predictions
of the stock market and futures markets around the world.*
Timing The Turn In Gold and Silver
Gold's already bullish setup will become even more concentrated (bullish) as
price declines. Forced liquidation through panic and margin hikes have a
setup known as 'blood in the streets' in precious metals. The key to timing
the 'mini panic of 2011' will be silver. Watch for a shift in money flow
concentration from bearish to bullish as the headlines spin panic for the
stooges (see chart...
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China 'launches gold vending machine'
China with its size and growing wealth will consolidate a good portion of
the world's gold supply. Headline: China 'launches gold vending machine'
BEIJING — China, already the world's second largest bullion consumer, has
installed the country's first gold vending machine in a busy shopping
district in Beijing, state media said on Sunday. Shoppers in the popular
Wangfujing Street can insert...
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43% in 2.5 days
Anyone still thinking that this is a 'large hedge fund' selling their
position at a 30-40% loss is in LA LA land. If there was ANY other commodity
even REMOTELY close to this "LIQUIDATION" I would be okay with this and
accept it as "I'm wrong." I've never seen anything like this.
The worst that can happen is it goes to zero. I Guess everyone and their
family members could pick some up really cheap at zero.
So, I guess the $5 trillion dollars that was printed, the world on the verge
of collapse, and everyone ready to ramp up the printing presses means
nothing. While China gets rich s... more »
The Risks Of A Trade War
Brazil is sort of ignited a trade war by putting a 30 percent import tariff
on China and Korea. And right now China is trying to get the Europeans to
let them open up the trade with China more. The Europeans are saying no, so
China is saying, 'No, we won’t bail you out.'
I hope the trade war doesn’t break out because throughout history when it
does it has caused depressions. You saw what happened in the 1930s. It led
to depression and it also led to war. So I hope it can be contained.
*Related ETFs: iShares MSCI Brazil Index ETF (NYSE:EWZ), iShares MSCI South
Korea Index Fund (ETF) ... more »
Gold Has Been Up 10 Years In A Row, Which Is Very Unusual In Any Asset Class
We have discussed before that gold has been up 10 years in a row, which is
very unusual in any asset class. So if it is up this year or 11 years in a
row, gold is overdue for a correction and it could have a nice substantial
correction given that it has been so strong.
I have no idea what is going to happen this year. I doubt if it will go to
$2000 an ounce in 2011, it is more likely to have a correction which will
last for several weeks, several months. It has been very strong. If it goes
down some more, I would buy more gold as I have told you many times. - *in
Economic Times *
... more »
Gold: If 1,500 Does Not Hold, We Can Bottom At 1,100 - 1,200
We overshot on the upside when we went over 1,900 dollars/ ounce. We're now close to bottoming at $1,500, and if that doesn't hold it could bottom to between $1,100-$1,200. - *in CNBC* Related: SPDR GOld Trust ETF (GLd), Newmont Mining (NEM), Barrick Gold (ABX) *Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.*
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