Jan 23, 2014
1. The latest obsession by some gold gurus with central bank mobster action has gone off the rails. When you cheer for a mobster, it usually doesn’t work out very well for the cheerleader.
2. The Chinese central banksters just announced that they actually bought no gold at all over the past 2 years. Various gurus in the gold community, who failed to understand QE and failed to understand the taper, thought that their Chinese central bank mobster hero had hired James Bond to buy “mountains of gold”, and bought it “on the dip”.
3. I countered that maybe they bought a bit, but if they did it was likely a swap buy, designed to supress price and rip off Chinese citizens, to increase price, not help them.
4. You can’t have gold tanking in the market, while James Bond is out there buying mountains of it.
5. The Chinese central mobsters probably did buy a tiny bit of gold with taxpayer money, and shoved it in their pockets.
6. You don’t need mobsters, to make you richer. Speaking of mobsters, on the Indian gold front, the Don of Indian Dons, Sonia “Queen of the vote buyers” Gandhi is head of India’s current government. She knows the election is just months away, and she urged the current government today, to talk about easing gold import extortion payments, of which she arguably takes the biggest cut.
7. Sonia arguably makes John Gotti look like a choirboy. She runs the world’s largest protection racket.
8. As she sees the walls closing in on the gold mobster era, she’s trying to buy votes and create a coalition government, so the corruption and mob action can continue for many more years.
9. Chidambaram, as scummy as he is, appears resigned to the fact that the banksters lost the gold war, and is holding to “no restrictions ease” until the end of the year, at a minimum.
10. When the mob era in Vegas ended, the smart mobsters knew it was time to walk away. Chidambaram is one of the smart ones in this case, and Sonia is too greedy. She can’t quit robbing if her life depends on it.
11. If anyone looks at her face closely, they’ll notice, in all seriousness, a major resemblance to the psychotic cartoon character, The Joker, in the Batman show.
12. These are the type of people that Queen Gold has to face on a regular basis; complete lunatics who get into positions of immense power.
13. What you likely need, ironically, is Chidambaram to hold strong to his restrictions policy, in which he alone has final say. You need Indian elections to occur under full gold restrictions, not under some token easing from Mobster Sonia.
14. Why? Because Modi needs to win a majority, so we can look towards 150 tons a month of steady imports into India, then 175, then 200, then 225, and so on, rather than a short term easing of Sonia’s protection racket game, and then right back into the current 20 tons a month garbage.
15. Some gold gurus have suggested that smuggling could go “astro”, if the restrictions aren’t chopped. That’s true, but there’s more to boosting gold demand above mine supply than just getting 500 million starving Indians who make two dollars a day to buy a little gold.
16. The Indian economy needs to develop, and if the mobsters get elected again, or there’s a coalition, economic growth is not going to ramp up at anywhere near the pace it would if the criminals are gone. If growth is ramped up, then more gold is bought.
17. Please click here now. That’s the GDXJ daily chart. What’s the “count”? Today is day number three of the count, with the count being the price area that GDXJ has halted at.
18. We’re stalled at GDXJ $38. Does price consolidate here, continue higher in the overbought zone, or begin to decline?
19. Please click here now. That’s the same GDXJ chart, with stokeillator and 8,16,9 MACD series highlighted.
20. I’m a microscopic seller here. Some technical gurus are very good chartists, but stupid money managers. They think a technical sell signal on a chart at low prices should be approached the same way as a sell signal at high prices. Wrong.
21. On that critical note, please click here now. Price doesn’t usually blow over key trend lines, like the breakout on this key weekly chart, unless daily chart oscillators are in nosebleed land.
22. It takes a lot of momentum to push price over these lines, so there’s nothing wrong with being overbought on the daily chart.
23. Today was a bigger victory than many realize. The Dow melted 200 points, while GDXJ had another up day, and GoldLion not got his answer to his question about what gold stocks would do if the Dow tanked.
24. Some money managers keep talking about how the taper will make gold fall, but others are already talking about an accelerated taper to zero, and even a panic taper to zero, based on a surge in inflation.
Gridtime! The taper is the breakfast of gold stock champions. See you at 4am tomorrow. Don’t forget to bring your spoon and a very big bowl!