What the Hell is Going on here, there, there too, everywhere???

So it would seem that in September, if you were an investor of any kind, you were a loser.

I don’t know much about stocks other than you are buying and selling bull shit on a piece of paper, I have a vast knowledge of gold, both of which are as valuable as Lehman Bros. Stocks.

Just prior to gold’s recent fall, a few odd things happened. One being UBS 2.5 Billion Dollar Rogue Trader Loss, the other being the Feds New Strategy “the Twist”, and another being the Euro Crisis that has been ongoing for the past several years. Why now would all of this tie in together and enlist havoc to all markets, is left purely to the imagination.

I think for one, “The Twist” is not a new policy, but the same boring and incapable policy that Bernanke has been pushing since taking the helm from Greenspan. As for the Euro Debt Crisis, I think it was just conveniently given emphasis as a distraction.

The one White Elephant in the room that is left is the UBS 2.5 Billion Single Investment Loss. Hmmm. That is a bit of just plain weird. There is not much info about it. Kind of like the Solyndra Scandal. I think all of these are results of corruption and an attempt of a cover up. I hate to be a conspiract theorist, but Gold was rising still in AUD and CAD. Hedge Funds are not Selling Off. Central Banks are not selling Off. ETF’s have remained consistent.

So why such a big correction? Well, I think that maybe their is a bit of market manipulation. UBS needs to make up the 2.5B loss. I would also assume that other big companies took a similar hit. My guess is that it was an intended market manipualation attempt gone wrong. Maybe a computer had the wrong sell stops in place or an option was erred. Whatever the exact case we can only speculate that it was a tell that massive large bank market manipulations are an ongoing scheme that even our own government is involved in.

The other factor keeping prices down would be Dawalhi, which is an Indian wedding festival that runs serveral months, and where marriages take place. A lot of miners depend on this festival to sell gold. The price nearly always falls to prior to this event to attract more buyers to the market place. It ends in November but prices usually firm prior to this.

My assessment is that the market, due to manipulative actions, remains very unstable now. It can still go as low as $1200. People have been tremored now by even the most safe haven for investors.

I am also pretty sure that the dollar rally will become bearish and help stabalize prices, unless the Euro crisis looms on for months.

We are also beginning an election cycle, so all of the card tricks the fed has left will go into play over the next 6-8 months.

It is going to be a messy ride, so diversify your investments and don’t count out that being CAD or AUD, whose banks are far more stable than the USA or Europe.

On another note, on October 1st, new laws go into effect for Precious Metals Dealers and most Chiefs of Police will be adopting their own new policies which will include hold periods of 5 to 10 days. What this means to sellers is that for one, payouts will be lower. You have to consider that if I am buying your gold or silver, I will have to assume that the market will drop in a period of 10 days, and buy accordingly.

The laws also require each item be photographed and tagged and made available for inspection. This adds more cost to the buyer and will be passed on to the seller.

For those selling Bullion, you will go from getting 95-100% of spot, to probably getting about 80%. Trust me, there is nothing worse than buying something volatile and paying for it, and not being able to liquidate it for 10 days after you make payment. I could go to the casino and have the same results most of the time.

In response to this, I have to assume I will buy much less bullion and coin, and I plan to open 2-3 more stores to take in more scrap gold. If I don’t accomplish this and make this work, I may as well call it quits now. It is ridiculous that I have to be exposed to this. I do not feel we need government intervention just because a small percent of people who sell things are thieves. I always think that people should not leave their valuables unattened. The burden should not be the honest folks trying to get the most return, or the buyer who tries to give the best value.

Once the government gets in the middle of any deal, it just goes in the wrong direction.

To my customers and potential customers, I will be doing my best in keeping our pricing as high as possible but you also need to understand that I am a business and need to make profit to pay the bills so, October will be a month of trials in hopes we can adapt a system that is good for both sides.

TTYL,

Joe

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Dip Sticks

So it is nearing the end of September, traditionally a horrible month for investors, and it is looking like signs of most everyones worst fears, another recession, are proving just what I and alot of others have been saying all along; that federal policies are forcing us into a non functional economy with inversely proportionate unstable markets that are causing what should be smart decisions by investors to blow up in their faces and force them to sell off what they have left.

By allowing the stock market to be merely a trip to the Pallazo in Vegas, it is safer to contact a local bookie and wager on spreads of Baseball and Football, than it is to invest in Bonds, Commodoties, or Equities.

By bailing out over extended companies several years back, we let the people who created the mess carry on business as usual and put is in a much deeper whole. Along the way, we spent every last dollar we needed to pull us out of the new coming recession, forcing us to have to monetize future debts or sell of bonds and other promissary notes to fund our worthless government and it’s excessive costs.

The fed announces in the midst of all this, on top of a global economic disaster, that it will lower interest rates in what they call the “spin”, and the stock market rebounds, only to crash hours later on news of recession #2. Does anyone stop and think that it is just time to give Bernanke and crew their walking papers?

Why do we even have a “Fed” anyway? They just destroy our security of our monies? I just don’t get it. You take your hard earned money and invest it for security, and they get involved and start taking your money that is locked into an investment that should be earning, and bail out some loser bank that gets it’s credit downgraded, and it spoils the whole damn market.

I can’t even tell you how much money I have lost because of these assholes. I put my money where it should be safe based on the rules and market momentum at the given moment, and then in a few weeks they change the course of the entire world by creating some new losing policy that makes no sense, unless it is to bail out their friends and their own investments. It is nothing less than pure corruption and they should all be charged with treason and hung at the gallows.

So Gold comes crashing down as the dollar goes soaring on news of Euro disaster and Bernankes new “spin” policy….First of all, when you have to give a gimmick name to a fed policy, it is going to go down in history as one of the dumbest ever moves. Second of all, when you have been lowering rates for the past 4 years in an attempt to spur economic growth, and it has not worked at all, you do not continue to do it.

I remember when I was a kid, I had poison ivy, and I kept scratching it, and everyone told me to stop. I could not resist the urge to scratch the itch. Eventually, I ended up with a bad infection that had spread inside of my body and I was hospitalized. I learned after that that continuing to do something that creates the opposite effect of what you intend to do is a stupid move.

Someone needs to stop these fed assholes and far beyond that, we need to stop the political machine that  is set on destruct mode. I am watching the news, and they execute some guy that most people involved think is innocent, and they have no proof he committed the crime he is charged with. The sensible thing to do is stop the execution and review the evidence. Nope, kill him instead.

C’mon, WTF???

I get so frustrated by ignorance and a blatant disregard of common intelligence and even sensible humanity. There has to be a point where we cannot turn this thing around and we are all going to suffer. We have to be getting close to that point.

Listen, I can see all of what is happening clearly. We are simply too big to survive. We are too many people fighting for the scarce resources we need to survive. There are not enough jobs, not enough money, and not enough opportunity to have the quality of life we expect. Sooner or later, we have to stop growing and start managing our population so we can all have a good quality of life.

This probably means we will have to stop letting people into the country. This probably means that we will have to stop spending billions in Pakistan and other countries to provide them aid, and provide it to ourselves. It means that we will have to be like all other countries, selfish.

As for gold, silver, platinum……It will recover as people reevaluate the position of the dollar. That should take all of 2 days.

As for the long term, Gold is good till about 2560 per ounce, after that, it will rise, but you and I will not have any left. Once it breaks 2500, lets just all admit we are selling. The real rise in gold will come when there is none left except what is to be unearthed. Once the miners have control, they can slow down a bit less than demand requires and boost the prices. That is how it will play out and it could be a few years in the making.

As for Diamonds, the market was picking up with great steam as India was buying diamonds in place of gold, and because they now have all the disposable income the world has to offer.

The market has just dropped signifigantly as Debeers Corp. flooded the India Market with too many diamonds. I think it was a good business move on their part, it helps them to keep their top place in the diamond supply business, and it helps eliminate many diamond dealers from the already crowded market. Not to mention that it gives them some much needed capital to make it past the big dip we are heading into. You have to consider that Debeers has been around thru most of the big economic disasters in history and they have alot of experience to draw from when it comes to making decisions that are this big.

It is unlike them to flood a market, they normally under supply a market, so it tells me that they are preparing for the worst case scenario and that is not a good sign.

I have also come to learn in the past few years, that Gold is an a cycle that is purely emotional. People are buying on fear, and selling on boredom. I have learned that when I am not paying attention due to lack of interest, that gold drops drastically. However, when I am most interested, it is rising and setting new records daily.

That is how I have been successful in buying and selling, purely based on my own gut feeling, or lack of.

Silver is a bit tricky and I just have lost trust in it, which could very well mean it is going to reach a new peak soon enough. I often sell off short on silver as it seems to drop 3 or 4 dollars per ounce when I feel good about it. I sell, then it corrects and gains quickly.

The way the economy is poised now, it is like a poker tournament and you have to trust your senses more than logic. It helps when you can pick out tells along the way, or signals from key players. That comes from experience and years of market evaluation and observation.

Anyway, Bernanke, Buffet, Barack, and Biden all need to be dismissed and pushed off the far edge of the planet. We need to start being sensible and accountable for not only our actions, but the actions of the most wealthy and influential people of our society. We have surpasses the point of being dull and just sitting back while it all comes down, it is time to stop providing income to the people who support and pledge campaign funds to those that are making us weak and poor.

While I am on that note, the poverty level is increasing at an alarming rate. Your wonder boy president you all believed in has not fulfilled one single promise he made during his many long speeches that had you all in tears and hugging each other through most of 2008. If you give him another chance, once again you will find yourselves in tears, hugging each other again, as you lose your homes and jobs, and end up living on the streets.

2012 will probably be the most important election in the history of America, and there is not a really single good candidate to choose from.

Good Luck and don’t forget to fill your oil tank, it will be a long cold unforgiving winter.