PRECIOUS-Gold falls as Fed move raises concern on stimulus scope

Comments (3)

That provided a good chance for people to liquidate their positions,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

That is not right. A seller would not damage the chart to sell position. This guy whoever did the dump was trying to trigger stop loss sale to cover his position.

Asian market needs some firm hands to protect your longs. Take less position, more fund in your account, do not stop loss.

It has happened in Asian market three times already.

Dec 12, 2012 10:56pm EST  --  Report as abuse

take less position. Do not use stop loss. This guy has done it three times.

Dec 12, 2012 10:58pm EST  --  Report as abuse
Derak wrote:

What was everyone hoping for anyway? a Third, simultaneous program by the fed to be announced in addition to the 40 Billion and 45 Billion a month programs they are extending? Shoot, why even wait for the Fed to announce they were going to continue trying to cause inflation if that is not reason to buy; people could have just sold earlier.

Seeing as we have the same people in charge who brought us the last three years of stagflation and nearly tripled the price of silver, I see this as a second chance to buy the dip.

What is the biggest worry, that 0bama will stop printing and borrowing? Well that won’t happen. So let’s see, Europe will go broke before the US? Well 0bama will just promise another trillion in printed bailouts for them, transfering value of the dollar to the Euro. What about the fiscal cliff? If we increase taxes and cut spending, then this will contract the money supply, which the fed will make more moves to stop, but who in their right mind thinks that 0bama will cut spending, especially entitlements? He uses taxpayer money to buy phones and then gives them to non-workers to buy votes for crying out loud. As I type this, 0bama claims to want deficit reduction and simultaneously wants unemployment 99 weeks of benefits to be further into 2013 for those whose 99 weeks are expiring.

He has already increased the food stamps per month per person and dramatically increased the number of people on them and no longer requires able-bodied welfare/stamp recipients to apply for jobs; so don’t expect any decrease in this spending on handouts any time soon. Not to mention, the fiscal cliff would dramatically reduce stocks, encouraging flight to safe-haven investments, and the fed will try to “hide the decline” in the economy by further printing in an attempt to buoy stocks. 0bama will then point to the Dow and say the economy is still going in the right direction…even though it is just companies taking nearly free government loans and buying their own stock back to make themselves appear solvent while others use the newly created cash to buy into the stock market.

Or… republicans can give 0bama the higher taxes he wants, which are payroll, not cap gains (yet) and 0bama will pretend to cut spending, but has predictably not put any cuts on the table yet (and never will), and we will be in for a replay of the last several years of stagflation with runaway deficit spending, printing, entitlements, and slightly higher payroll taxes that won’t make a dent in anything.

The biggest danger seems to be the cap gains tax increase in 0bamacare, which will drive money out of stocks to other places, wink, but does cap gains apply to profit off of bullion sales? If it does, their are at least silver investments that are still legal tender, and therefore not reportable as profit because selling them is just trading tender for tender. Also, one could shift investments to currencies, and picking the dollar under 0bama would be asinine…and movements in the dollar are reflected in the price of metals pretty immediately.

So, what else is there besides a big turnaround in the employment picture to key in the fed to stop printing as much money? Does anyone believe that is happening when the reason unemployment went down was because of people dropping out of the workforce (i.e. running out of unemployment benefits) and this is in spite of the temporary hiring for Christmas, without which we would have had about 100K jobs created?

What am I missing here? What are you all so afraid of? Will 0bama confiscate gold under executive order? He may think he has the power, but do you think he will bother confiscating other metals? I think I’ll add some gold to my port, but for full disclosure, I will hang onto my silver as well.

Dec 12, 2012 11:30pm EST  --  Report as abuse
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