Monday

Dow Jones
-634.76
-5.55%

Gold Reaches $1719.58
+55.79 (+3.35%)
Aug 8, 2011 04:35 PM EST
4PM CLOSE:1663.79 +16.14

Tuesday?

2012?

Thank GOD nobody was dumb enough to listen to your gold tip tommy.

Unfortunately, no gold tip can help those who couldn't afford to buy gold in the first place.

Oddly enough, though, the downgraded treasury bonds are up while all the stocks are down.

True.

However, I do wish I'd done more gold panning when I lived in Idaho.

Uncle Sam likes his beer:

http://howestreet.com/2011/08/debt-cut-deal-smoke-mirrors/

I think Ben might get up in the morning and print more money and we might see a rally perhaps. Pulling that rabbit out of the hat again is just going to make things worse in the long run. Still there might be a short term buying chance here today maybe.

Not much detail on the axes, but here's the Dow Jones over the past 5 years

Monday marked the largest ever single-day increase for gold and its still going up quickly as I speak. It seems to me very unusual to see gold move like this in the night time. I wonder what it means? Is cash collapsing perhaps?

$1760.17
+40.62 (+2.36%)
Aug 9, 2011 12:13 AM EST

I can't keep up its just hit $1770

Hang on its eased off a bit

Folks the "cash" is still out there. It's just being held onto as is always the case in uncertain times. Gold is experiencing a bubble at this time. Whenever you have stocks going down when it is NO FAULT of the Company itself you are looking at a wonderful time to get a stock at a low price. This downturn in the Market will make a lot of people in the know very rich. The opposite of course is true for those who are JUST NOW starting to get into gold. But my friends this is the nature of the Stock Market. When you sell your stocks at a loss you lock in that loss. I can honestly say I wish I had some spare money around I'd love to get into the Market at this time. But I chose to pay down debt (which is always wise) and there went my extra money. But look at history when stocks are down people move to safer havens such as gold and silver. What is interesting is the money that went into US Treasury Bonds. There is a term called "Shaking out" that you will here money experts talk about. This is compared to a heart beat. You have blood pumped in to the heart (people buying stocks) and you have blood pumped out of the heart (People selling stocks) it takes BOTH of these events to happen for a healthy heart (and healthy Market).


Good magic to all,


Eric

Folks the "cash" is still out there don't worry.

The problem is not that the cash is not out there. The problem is there is too much of it out there. You will be walking about with barrow loads of it soon if Ben don't stop printing it. The problem is the price of things will have gone up.

Yes and people will decide if they will pay the high price or continue to shop at lets say Walmart. History again as an indicator will show they will shop at Walmart. People WILL spend high for electronics and the such as a new product comes out. The smart stores will run sales and the ones that will go out of business will keep high prices and not move their products. That is Capitalism at work. Those who do not learn from the past are destined to repeat it.


Good magic to all,


Eric