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Spot gold blows through $1,200

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  • Tue, Dec 01, 2009 - 04:36pm

    #1

    machinehead

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    Spot gold blows through $1,200

It happened on Tuesday morning, around 11:20 EST according to the Kitco ticker, which now shows a daily high of $1,201.80 and a current price of $1,199.90.

This is a classic ‘dance of the round number.’ It wouldn’t be unusual for the price to fluctuate around $1,200 for a few days. On the other hand, if it just blows through $1,200 and never looks back, then we may be on a rocket ride.

The reclusive Martin Armstrong has written a new article about gold, which includes some fascinating glimpses of 19th and 20th century monetary history. Armstrong is a bit too rigid for my taste in his cyclical turn dates. BUT — some of his turn dates have nailed market reversals to the day.

His basic conclusion is that if gold advances to a new monthly record close in December — as it seems to be on the way to doing — then it likely will continue rising into a turn date in April 2010. In such an event, Armstrong’s ‘upper channel’ target is as high as $1,500. Cheers!

http://www.scribd.com/doc/22417671/GOLD-5000-11-11-09

p.s. You’ll need the ‘Magnifier’ function of your browser or OS to read the small print.

 

 

 

  • Tue, Dec 01, 2009 - 04:59pm

    #2
    Peak Prosperity Admin

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    Spot Dollar falls through 1/1200th Oz.

 

 Question:  Does gold revolve around the dollar, or does the dollar revolve around gold.. ?

 I think we need a “copernican revolution” in perspective…

…  if you use the emerald glasses ($), things make no sense..

 viewed through gold, equities are silently crashing, so is housing, wages.. classic deflation.

 

 

  • Tue, Dec 01, 2009 - 05:08pm

    #3
    Peak Prosperity Admin

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    Re: Spot gold blows through $1,200

A more convenient place to get Armstrong’s “Gold $5,000+” PDF directly:

http://www.martinarmstrong.org/economic_projections.htm

http://www.martinarmstrong.org/files/GOLD-5000-11-11-09.pdf

  • Tue, Dec 01, 2009 - 05:17pm

    #4
    Peak Prosperity Admin

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    Re: Spot gold blows through $1,200

Of course, this overlooks the fact that Armstrong projected Gold to be sub $600 a few months back. Not to mention the his predictions for the DOW at 3,800 by years end.

BTW, due to the calls of many supporters of his work, the prison system is not going to transfer him to the high-security unit. Thats great news.

  • Tue, Dec 01, 2009 - 05:31pm

    #5
    Peak Prosperity Admin

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    Re: Spot Dollar falls through 1/1200th Oz.

[quote=plato1965]

 

 Question:  Does gold revolve around the dollar, or does the dollar revolve around gold.. ?

 I think we need a “copernican revolution” in perspective…

…  if you use the emerald glasses ($), things make no sense..

 viewed through gold, equities are silently crashing, so is housing, wages.. classic deflation.

[/quote]

Well, given that the aboveground supply of gold rarely changes more than 1 or 2% per year … while worldwide dollar reserves are climbing at a percentage in the high teens … I’d nominate gold as the more stable yardstick.

Armstrong makes a distinction in his paper between periods when gold is an official monetary asset, versus periods when it trades as a commodity. During monetary gold periods, gold acts as a hedge against deflation, as it did in the 1930s. When gold is demonetized, it can act as a hedge against inflation, as it did in the 1970s, and arguably is doing again now.

Agreed, many asset classes are falling, when priced in terms of grams of gold. Partly this is an artifact of timing — gold is anticipating an inflation; meanwhile, we’ve had a post-Bubble demand shock. But a few years out, some asset prices may ‘catch up.’ Probably not equities or wages, though. Equity valuations fall under high inflation. And wages don’t advance in a sick real economy. Inflation is monetary Oxycontin — it masks debtors’ pain without fixing the structural rot, which may be terminal.

Steve R., thanks for the better link to the paper.

  • Tue, Dec 01, 2009 - 09:13pm

    #6
    Peak Prosperity Admin

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    Re: Spot gold blows through $1,200

G IV

  • Tue, Dec 01, 2009 - 10:38pm

    #7
    Peak Prosperity Admin

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    Re: Spot gold blows through $1,200

And the silver! Don’t forget the silver!!!

Busted past 19 scraps of paper per oz today. 

Me so happy! Happy to be in the gold. Happy to be in the silver. 

  • Tue, Dec 01, 2009 - 10:41pm

    #8
    Peak Prosperity Admin

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    Re: Spot gold blows through $1,200

[quote=JAG]

Of course, this overlooks the fact that Armstrong projected Gold to be sub $600 a few months back. Not to mention the his predictions for the DOW at 3,800 by years end.

BTW, due to the calls of many supporters of his work, the prison system is not going to transfer him to the high-security unit. Thats great news.

[/quote]

+1

You’re on a roll lately. I feel like I’m on my way to being a JAG groupie here. 

No. I don’t accept cheeseburgers and beer for payment. Pre-64′ dime will work though. Tongue out

  • Tue, Dec 01, 2009 - 11:33pm

    #9
    Peak Prosperity Admin

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    Re: Spot gold blows through $1,200

[quote=Morpheus]

And the silver! Don’t forget the silver!!!

Busted past 19 scraps of paper per oz today. 

Me so happy! Happy to be in the gold. Happy to be in the silver. 

[/quote]

When it pops up past 20 scraps, my buy of 8 days ago will be in the money (after paying the vig).

After years of not making many smart money moves, it feels strange to be on the + side of the equation.  Ehrm…for now.  Heh.

Viva — Sager

  • Wed, Dec 02, 2009 - 02:52am

    #10
    Peak Prosperity Admin

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    Re: Spot gold blows through $1,200

I have been watching the Tulving website for months now.. having made my first gold purchase at $1053.  What I have been noticing is this……. HE is running out of everything.  Same at Coloradogold.com.  

This is a leading edge indicator in my opinion… the most liquid forms of gold that regular folks can get their hands on … US and Canadian coinage… are soon to be sold out.  This may presage a more parabolic move in my opinion… a more disorderly move, to use a word that I believe Chris has used before.  Just reading the tea leaves……..

 

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