Monday, August 8, 2011

JP Morgan = $2500 Gold by Years end

No this is not a sick fuckin joke.

From ZH:

We though we had seen it all... Then JPM's Colin Fenton came out with a prediction of gold hitting $2500 by year end. That's right: JP Morgan... $2500...."Gold and sugar have potential to run a lot higher. It has been clear for weeks that the prompt CMX gold price has been building in a rising probability of a reflaring of financial crisis, gaining by 9.7% since June 30 as the MSCI World Equity index dropped by 10.1%. The correlation in daily price changes between these two assets has dropped to –0.09 from +0.29 over the prior year. Gold’s correlation against TIPS has doubled to 0.35 from 0.18. Against Italian and Spanish 5-year sovereign CDS prices, the gold correlation has moved to 0.27 and 0.32, from 0.07 and 0.04, respectively. Before the downgrade, our view was that cash gold could average $1800 per oz by year end. This view will likely now prove to be too conservative: spot gold could drive to $2500 per oz or higher, albeit on very high volatility." It is unclear if Blythe precleared this client note. But at this point it probably does not matter.

Click here ...

49 comments:

  1. is this the QE3 signal for tomorow? Is JPM the messenger?

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  2. look at the divergence now silver / gold in opposite directions!

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  3. No, Gold is pulling Silver up with it. The ratio of 43.5% is already taking the piss!

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  4. should i close my precious metals ira...take delivery of the metals?

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  5. @mark That is exactly what I have been doing for the last 3 years! Little bit each year so it didn't hurt all at once. Got the last of mine out the first week of Jan. My cpa thought I was crazy! Wonder what his portfolio looks like today!

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  7. yea..thats what i thought. i should have already been doing this... Thanks for the feedback

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  8. Randgold up 10%. Barrick, Goldcorp, Yamana....even that bitch-ass Kinross are all up 5% or more. On a TSX down 300 day, that says something. The big money is starting to flow in from the sidelines. It doesn't take a genius to realize that these stocks are on sale.

    Also, S&P cuts rating from neutral to negative on Berkshire Hathaway. I almost pissed my pants when I heard that. Buffett just soiled his Depends. That old kodger must be throwing a hissy fit.

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  9. I don't trust this trumpet sounding by JP. Is this a ploy to get sheeple into the metal only to have it confiscated later?

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  10. gold might hit 2500 today haha

    i cant believe it wont take a MAJOR HIT within the week

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  11. It might really be a "bubble" when JPM is getting on board :)

    If the gold/silver ratio doesn't start compressing again if/when Ben acts, I'm out of silver and into gold.

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  12. FOR ONCE AND FOR ALL! There will be no PM confiscations!!!!!!!!

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  13. Could be an attempt to steer sheeple away from silver to cover shorts before it goes up.

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  14. Hmmm...... a possible margin hike coming up ?

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  15. Anyone buying paper silver shorts here?

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  16. AND YET COMMERCIALS CONTINUE TO ADD TO THEIR SHORTS BOTH GOLD AND SILVER..DOUBLE SPEAK..GET YOU IN And dump the price..could that be the game plan..again

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  17. @felix... I bought silver short last friday, thinking there would be a margin hike. My ass is flaming right now.

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  18. @colin - "i cant believe it wont take a MAJOR HIT within the week"

    Gold up $100 since Aug. 1st. I expected the market to relax a little after the debt limit dog-and-pony show. Too soon for a world wide exodus to Gold?

    A correction imminent????

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  19. Folks please understand I'm a novice to this metals market. I'm trying to educate myself as fast as I can. I've been 'awake' for just 2yrs, so if my questions seem ignorant or just plain dumb, then this explains where it's coming from.

    If no phyz confiscation can happen, then would this super 6 of communism pass a tax on such resale of metals, raping the average person of profit through taxation? I wouldn't believe three years ago, we would be living under a dictatorship either.

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  20. The only ratio I see really collapsing is the DOW/Gold is approx. 6 to 1. Has this ever been seen before?

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  21. taxes are taxes. even back in the 30's only 25% of ppl turned in their gold. today less than .08% of ppl own physical, it would be a waste of time, plus those .08% of people own guns :).

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  22. Somewhere a while back I read that eventually they will eliminate capital gains on gold and silver as an incentive to get people to trade it in.

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  23. What just happened to silver? SGS, when the hell will it rise? The S/G ratio is getting ludicrous.

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  24. @ felix and Colin, gold is heating up too fast for me to buy, that's for sure. i do think it's too soon for any major exodus. this ain't "the event" in my opinion. correction hopeful. and welcome!!!

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  25. Fear, Greed, and Herd Instinct (the three great motivators of the markets/business world). I can understand how these are working in just about every area that I watch right now except for Silver. Can someone explain what's going on there? Is it manipulation or something else?

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  26. I thought Utah and some states has passed the law to allow Silver eagle as a legal tender. I doubt they will have a tax on silver or gold.

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  27. in a secular bull market you shouldn't short PM, but in this case I'm putting shorts on GLD! Up way too fucking fast!

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  28. Malcom, thanks for the break down. I guess I'm part of the .08% of the later. Added to the collection as well.

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  29. PSLV loosing 5% of it premium today, wow!

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  30. Zerohedge offline....again.

    Their servers get smoked when the market gets smoked. Too many people, not enough bandwidth.

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  31. @malcolm - np! ??

    If Gold so much as dips Silver will tank (they're holding the prive down, make no mistake).

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  32. felix

    Im 70/30 gold silver

    gold is up 240 in last 28 days ...

    cant believe it wont dive soon, watched this shit too long ... wish it would go up 2 bucks a day for eternity

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  33. I bought some SDS sept put options when dow was -380. Now down is at -500 but my put options doesn't change much. In fact, one of my puts is +ve now... Something weird...

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  34. Silver/Gold, XAU/Gold ratios and XAU starting to get silly, Barrick and Newmont getting hammered!

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  35. JPM is just trying to get everyone turn away from buying silver and hop on to the gold ship instead. Ignore them and keep buying physical silver. Or better yet, buy both!

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  36. coconutrumplus..you are correct. Utah passed into law making gold and silver eagles as legal tender in the state. As of now, they are going by their face value. This will change of course.

    Furthermore, they also dropped all capital gains taxes on gold and silver in the state. This is the wave of the future.

    I am watching CNBC as I write this post. All I can say...HERB GREENBERG is a HORSE'S ASS. If the carnage continues I imagine at some point in time CNBC is going to have to hire plastic surgeons to permanently place smiles on all the commentators and clowns in front of the cameras.

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  37. SRS - As usual, GREAT information and insight! Two questions for you;

    1) What if(your favorite kind of question) the State or Fed start confiscating Walking Liberties and Eagles stating they are Gubment prop and they want them back?

    2) How does one become a metals dealer? I.E. selling metals on ebay etc. Do you go straight to the miner or a larger distributor?

    As always, thanks for your illuminating insight...

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  38. SRSrocco... correct me if I am wrong, doesn't CNBC has a disclaimer saying those financial news are for entertainment only ? Or is it only for the Kramer's show ?

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  39. Hmm... scary... Earlier this morning, when dow was -460, my profolio was down big time because I hold slv puts and SDS puts. Now at dow -420, my porfolio has broken even. Someone really short the daylight out of the silver.

    I wonder if a margin call is coming up.

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  40. I feel like I'm on an acid trip (don't even ask)... Gold /\ Silver \/ ...

    So... which is the more credible? Gold @ $1715US or Silver @ $38.9US?

    Or is it all a crock of shit?

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  41. Holy shit guys...I actually thought we were going to lose 1000 on the DOW and 100 on the S&P 500!

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  42. dasPro, you ain't trippin.... it's all being manipulated... let's see what the douche Bernank says tomorrow...

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  43. another real nice byproduct of all this(and of course msm isn't covering it) is lower oil prices. Oil tanked to $80.81 per barrel....

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  44. Considering to buy some JPM calls for shits & giggles.

    WHO'S WITH ME!?!

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  45. @PaidInGold: although JPM has seen much lower prices not that long ago, keep in mind that JPM is the whore of the Fed. But even a paid whore can expect some pleasure from the encounter, so they will be the first ones to get a cash infusion. After the dust settles, we are going to see one helluva snap back. I wouldn't be surprised to see 300+ days on the Dow. They will only allow so much blood to be in the streets before they do something, whether publically or privately. If you're just buying some puts for the heck of it, and you can afford it, I say go for it. It has more to fall, no doubt. Just haven't figured out how much yet. Good luck.

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  46. ...oil down to $77.58 @ 645PST..... down bitch, down...

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