Citi Predicts Gold At $3400 In "The Next Two Years", Potential For Move As High As $6000
Following
today's margin call anticipating, liquidation-driven rout in gold, the
weak hands are, as the saying goes, puking up blood. Which may not be a
bad thing - after all, sometimes a catharsis is needed to get people
away from potentially toxic paper exposure which very likely has been
hypothecated repeatedly via the same channels we discussed last week
when exposing the MF Global-HSBC "commingled gold" lawsuit.
But what about the future? Well, nobody can ever predict it, but at
least we can sometimes look at charts in an attempt to glean a pattern.
Which is why we present the just released slide deck from Citi's FX
Technicals group titled "The 12 Chart of Christmas" which has some
blockbuster predictions about the coming year, chief among them is
without doubt the firm's outlook on gold which they see at $2400 in the
second half of 2012, and moving "toward $3400 over the next 2 years or
so." So for those looking at today's price action, consider it an
opportunity to roll out of paper exposure and into gold, because the
more deflationary the environment gets, the more eager the central
planning cabal will be to add a zero (which in our day and age of
primarily electronic money can be done with the flip of a switch) to the
end of every worthless piece of monetary equivalent paper in
circulation. And that's a 100% certainty.Fitch Downgrades Credit Agricole To A+, Outlook Stable
Turns out it is not France. Instead, it is its most insolvent bank (although with SocGen and BNO around, who really knows)- CREDIT AGRICOLE CUT 1 LEVEL TO A+ FROM AA- BY FITCH :ACA FP
Germany Preparing Plans For Commerzbank Bail Out
Following today's end of day rumor being a dud (and non-existent due to the habituation nature of the market), the closing news is more unpleasant than Europe would have liked to set the overnight mood, and comes to us via the FT (yes, that FT), which states that, as long speculated both here and elsewhere, "the German government has begun preparations for a possible state bail-out of Commerzbank." The plan would be activated if CBK is unable to figure out a way to fill a €5.3 billion shortfall in the next 30 days, which in reality will likely turn out to be far greater when all of the bank's dirty laundry is exposed for all too see. And with German banks by far the most sensitive to any perceived "tipping points", since it is the German state whose job it is to bail out the world's biggest economic block, it becomes obvious why letting doubts appear about the stability of German megabanks would likely not be a "good thing."Gold Chart and thoughts
Gold continued falling lower today plummeting over 4% as it failed to hold
support near $1650. Once that gave way, it did not take long before it ran
the downside stops gathered there which fueled further selling. That
selling gathered additional momentum once $1620 could not hold and really
ramped up aftter $1600 collapsed.
There has been severe technical damage done to the charts with today's
breach of 3 chart support levels. The last line of defense for the bulls to
prevent a drop all the way to $1500 is in a band near $1560 - $1535.
One point of slight comfort for the bulls is ... more »
Another Step In A Ladder For Commodities
Commodities are forming another step in ladder of increasing acceleration.
The first casuality of panic and fear is critical logic. Spot Commodity
Prices: CRB Spot Index (1947 - Present); 16-Raw Industrial Spot Price
(1935-1947); Great Britain Wholesale Price of All Commodities (1885-1935)
and Trend Z Scores
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content, and more! ]]
In Case You Missed It
Someone gets it. For Europe, Only Way Out Is to Break Up: Kyle Bass Source:
cnbc.com The Pretcher message (interviews) foreshadows an upside turn gold
and commodities in 2012. Bear Market Rally? Source: video.cnbc.com
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content, and more! ]]
Crude Oil breaking down alongside of the metals
Crude oil has been somewhat immune from selling pressure tied to risk
aversion trades mainly due to geopolitical tensions involving Iran and
fears of a potential closure of the key Hormuz Straits. While many
commodity markets have been moving lower the last month or more, crude had
staged a big rally off of the $75 level running all the way to $100+ before
faltering. It then retreated towards $95 where buyers promptly bid it back
higher again. However, they were unable to beat back selling pressure that
emerged above the $100 level. That sent longs liquidating trying to snatch
profi... more »
Video: Dissolve The EU
Marc Faber, editor of The Gloom Boom & Doom Report, is calling for the EU
to dissolve:
“It’s going to be painful, very painful, but rather this than to again
intervene into something that is not going to work in the long run.”
*Marc Faber is an international investor known for his uncanny predictions
of the stock market and futures markets around the world.*
Stocks Like In The 1970`s: Big Sideways Trading Range For Many Years
Stocks, in my view, in most countries are like they were in the 1970s. In the 1970s stock markets, and economies around the world did not do very much and were in a big sideways trading range for many years. We are in that kind of period now. - *in China Money Podcast* *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 on Bloomberg and CNBC.*
RANsquawk Market Wrap Up – 14/12/11
Submitted by RANSquawk Video on 12/14/2011 - 15:44 RANSquawk
This may be how you are feeling today, I certainly am.
UPDATED: First, allow me to make one thing clear for those who aren’t getting it: I am not “bemoaning a paper loss” or “lower prices”. I am sounding the alarm about a systematically corrupt system that can do ANYTHING it wants with your assets through the criminal hypothecation and rehypothecation of what you THINK are YOUR assets. This is a brand new revelation, it is NEW news to most of us. If you do not uderstand what this means, you need to. It’s a deal breaker. Read THIS: “E*Trade, Scottrade, Fidelity Fine Print: “All of My Securities May Be Repledged & Hypothecated & Rehypothecated”
Read More…
by David Schectman, MilesFranklin.com:
Sit
back and relax – 2011 was a strange year. Gold and silver were stellar
performers in the spring and summer, which is very unusual and they have
under-performed in the fall, which is also unusual. All of this is
leading up to a monster year in 2012, which I fully expect to be the
best year ever at Miles Franklin. Just be careful about your investments
in the mining shares. I’m pretty much out, for now. There will be a
time to jump back in, but not now.
Leverage (margin) in gold and silver is very low, currently sitting just off historically low levels and supportive for a lot of fresh funding to enter.
GOLD: there have been three instances since 1988 that leverage has been this low.
November 1999, gold increased 6% in 2 years.
December 2005, gold jumped 66% in two years and September 2008, gold jumped 85% in two years.
Read More @ MilesFranklin.com
Sit
back and relax – 2011 was a strange year. Gold and silver were stellar
performers in the spring and summer, which is very unusual and they have
under-performed in the fall, which is also unusual. All of this is
leading up to a monster year in 2012, which I fully expect to be the
best year ever at Miles Franklin. Just be careful about your investments
in the mining shares. I’m pretty much out, for now. There will be a
time to jump back in, but not now.Leverage (margin) in gold and silver is very low, currently sitting just off historically low levels and supportive for a lot of fresh funding to enter.
GOLD: there have been three instances since 1988 that leverage has been this low.
November 1999, gold increased 6% in 2 years.
December 2005, gold jumped 66% in two years and September 2008, gold jumped 85% in two years.
Read More @ MilesFranklin.com
from King World News:
With
the gold price tumbling, along with silver, today King World News
interviewed the man who told clients in 2002, when gold was $300, to put
up to 50% of their assets into physical gold held outside of the
banking system. Egon von Greyerz is founder and managing partner at
Matterhorn Asset Management out of Switzerland. When asked about the
2002 call, Greyerz responded, “It was very clear to me, Eric, for quite a
long time, well before 2002, that this was going to end badly. There
was no chance the world would survive with the banking system intact or
even the financial system intact.”
Egon von Greyerz continues: Read More @ KingWorldNews.com
With
the gold price tumbling, along with silver, today King World News
interviewed the man who told clients in 2002, when gold was $300, to put
up to 50% of their assets into physical gold held outside of the
banking system. Egon von Greyerz is founder and managing partner at
Matterhorn Asset Management out of Switzerland. When asked about the
2002 call, Greyerz responded, “It was very clear to me, Eric, for quite a
long time, well before 2002, that this was going to end badly. There
was no chance the world would survive with the banking system intact or
even the financial system intact.”Egon von Greyerz continues: Read More @ KingWorldNews.com
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