Gold hovers at a turning point

in #optionslast year (edited)

They say, "If gold ever surpasses the 14?? dollar mark, then it will run up to..."

Not sure what the exact figure was, but I do remember it being in the high-mid fourteen hundred area.

GoldNudgesNear1480.jpeg

Today is the second day in a row that we have not seen 'them' hammering gold down using futures contracts. Normally we see thousands of ounces sold off in just a few minutes. Gold falls. Then it climbs back up - rinse and repeat.

By 'them', I mean central banks. The contracts I speak of can be bought only by the banks and it only costs them about a hundred dollars to control several hundred ounces of (non-real) paper gold. By 'non-real', I mean that they could never take delivery of their contract because nobody is selling that much, ie; the quantities they dump.

I used to trade "put" contracts and "call" contracts on the US stock market. The intent is to make money on the value of the contract when the underlying stock moves in the direction that you anticipated. This is called trading "options" and it can be lucrative.

The ones who dump gold at the open of the commodities exchange are not acting in their own self interest. They are selling with the sole intention of moving the price down, and they lose money when they do it. Who does that? I mean, nobody sells huge loads of XYZ and keeps selling as it drops to new lows, well below their purchase price.

The Sane Trader

Normally one would buy up small blocks of a stock or call option when it is low. You buy enough to increase your holdings but not enough to move the price up. When you have a significant amount, then you buy larger blocks to nudge the price up.

When the price increases, you can start selling, again, small amounts. nobody wants the price to drop out below their purchase price (except the central banks when dealing with gold futures).


I started buying Gold about ten years ago when it ran up near $1400 and I have been purchasing since then. Selling the gold I bought at 1400 would not have been wise since gold has stayed between 1100-1330 for as many years as I have had it. Selling would have produced a loss.

Am I selling now? Yes.

Is it wise to sell it all? No. The risk of travelling to the dealer with large quantities of gold would not be wise. Selling all holdings could be stifling profits if gold does run to 2,000 or even 5,000 in the short term.

I sold small amounts of gold over the last few weeks, but holding paper currency is not prudent either. Yesterday I put some back into silver. Today I am putting more money into crypto (the alt coins that are bleeding badly).

The plan is to sell some gold that was purchased at 1100 and pocket a $268.00 profit on every ounce. If the short sellers knock it back down to 1300 tomorrow, I can purchase the same dollar value in gold and end up holding more physical ounces of gold.

The end result is holding those same profits in real physical metals.metals.

This is financial advice. I am telling you to buy precious metals. You cannot lose holding them. The only possible loss you may experience is by holding paper currency. Paper has a certain, eventual, return to zero-value, which has been experienced by all paper currencies in the history of the world.

... and you can take that to the blockchain

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This is one of the clearest descriptions of how the gold and silver markets are manipulated that I have read lately. My eyes usually go crossed when I start to read some of these explanations. Thanks @goldbuyer.

I agree! Great explanation.

To listen to the audio version of this article click on the play image.

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For the U.S. Monetary System to Reset to U.S. Bullion Backed Coinage in whichever form we issue it, the Melt Value of Gold will need to remain at $35.00 per Ounce and Silver will have to stay at $3.50 per Ounce... That doesn't seem like much at First Glance, but $35.00 is about to "Replace" 3,500 Fed Dollars and $3.50 is about to "Replace" 350 Fed Dollars... Yes... All U.S. Coinage is about to experience a 100 Fold increase in "Spending Power"...
August 6, 2019... 10.5 Hollywood Time...

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