Next Level: GOLD $1,350.00

Is there a point there regarding gold / this thread?

 

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A rather interesting end of week...

GOLD @ $1,137.80/oz. Low $1,129.30 - High $1,158.50
Silver @ $17.74/oz. Low $17.59 - High $18.44
Platinum @ $1,694/oz. Low $1,645 - High $1,725
Palladium @ $533/oz. Low $521 - High $547

Obviously timing was big on the Goldman news breaking today, coming at the end of the week, just as the UK/EU markets were closing for the weekend. The President wanting to look firm handling Wall St., signing another new job aid bill, cobra extension, medicare and flood ins. all in one big punch... Quite a day!

 

It seems so coincedental (and I'm sure it is I'm not trying to create a conspiracy) but just as gold was creeping up, bam, you get the goldman sachs news and everything begins to drop back down....

 

It was clearly something that took a lot of planning and forethought, especially in regards to how the federal government would be perceived by the media, by US citizens, global perceptions and done at a market time looking to limit the immediate economic impact. Far too much to be coincidental, accidental and anything but conspiratorial.

 

news like this is why I'm glad I own PM's.

There's a commercial that I laugh at now, I forget who it's for, maybe Fidelity? But the guy basically plays up to your fears of wallstreet saying, "yes, you don't know who to trust. These economic times you don't know where to put your money...but we at <insert here> are professionals with whatever years of experience....call us today to setup your portfolio...."

I know the guys face, I think he was in Law and Order, I can't remember the company he represents but there's no way I'm calling anyone to manage my money....

How much more fraud do people have to see around them?

 

Sounds like Sam Waterston who is the celebrity spokesperson for TD Bank or TD Waterhouse.

 

Yes that's the one!!

 

Krispy, A little quiet lately...did Friday's action take the wind outta your sails?

 

I think the simple answer is that Goldman was engaged in criminal activity and the SEC gathered enough evidence to prosecute. If they cared about market timing, the announcement would have come when the market was closed.

 

Certainly, the SEC would seem to have enough evidence upon making the allegations to convince a judge they can pursue prosecution. But why wouldn't the announcement be deliberately timed? Do they tend to make announcements of this magnitude when the markets are closed in other instances? I simply felt the choice of timing was done chosen for a time when the impact would be less upsetting as the news sinks in publicly and that it came on a day of other moving announcements. Nothing fishy nor accidental about it.

 

It might or might not be deliberately timed. The fact that the announcement was not withheld until after the markets closed seems to indicate that not a lot of thought was given to the timing. Or it could mean that it was timed to drive money out of stocks and into bonds. I doubt that gold and silver was considered at all. It becomes easy to read too much into the timing. It might have been important to the SEC to announce the news before it leaked out.

 

I concur with what you are saying and cautioning. I want to note that despite making mention of these things in this thread I saw nothing suspicious about the timing or lack of timing with regards to the case. It is worth noting that there was a significant effect on PMs on the day the news broke and that Goldman are big players in gold, amongst other things, so they were a momentary factor in the volatility of the metals prices on Friday.

 

I've never seen anything to indicate that GS was a big player in the gold market, but it sounds plausible.

 

Thanks Krispy for the link to the article about Goldman and commodities that you posted above. Very interesting. Whatever the reason for the timing, or the correction, it gives us all a chance to speculate over the weekend .

The news certainly knocked gold down yesterday (along with stocks). But many have been arguing that we were due for a correction here in any case. Both gold and stock futures were weakening the night before as the dollar index rose, so some traders would have been planning to short gold in the morning, even before the news broke out.

We will see on Monday...

 

GS certainly give pricing forecasts on gold and there exists the GSCI that they originally developed.

 

I wasn't doubting that Goldman is probably a big commodities trader. But then, I've always assumed this, but without really knowing much about it. Anyway, this 2008 Bloomberg article says that Goldman and J.P. Morgan dominate the commodities derivatives trades.

http://www.bloomberg.com/apps/news?pid=20601109&refer=home&sid=aboqiSz1AZm4

 

krispy. what you think gold will be tomorrow?. either another big drop or recover some. i think it will depend on the news plus the stock market movement.

 

rising again

 

why?. any good news.

 

I wish I knew. But this is just an instinctual feel to date. You are right, the media can drive investor concern depending on how the topic is addressed in the immediate future. I would guess some opening bell jitters then a slow rise over the course of the day. Early tomorrow in US trading might be the best opportunity to buy if the price starts climbing. Just my guess.