Gold, Stocks and Euro All Down after China Manufacturing News

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Renewed Investor

Fly on the Wall
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"Gold, Stocks and Euro All Down after China Manufacturing News, Bullion Refiners "Stocking Up" for Europe but Concerns Over Liquidity "Cap Upside" for Gold

PRICES TO buy gold bullion on the wholesale market dropped to $1630 an ounce during Monday morning's London session – a 2.3% drop from where they started the month – while stock markets and industrial commodities also traded lower following the release of preliminary Chinese manufacturing data.

"Gold remains in a short-term bear channel," say technical analysts at bullion bank Scotia Mocatta.

"We would expect a test of support from the long-term uptrend...[which] comes in around $1600.""

When Europe folds in two, which is not a likelihood, it is a certainty, gold and silver will very suddenly become more relevant than ever. Millions and millions will realize all at once, that they are really and truly the only "good" money, and that all things paper are just that, a fucking fire hazard. When the balloon goes up, you had better hope you have been stocking up on gold and silver, because it won't be for sale at any price. It has only been about eighty years or so since Wiemar, yet so many have forgotten about it, or simply think "this time it's different" or that "it can't happen here". Well, they would be wrong, because not only can it happen, it will happen.
One has to wonder something, however. Look at this run on some of the euro banks. That's happening in fiat, of course, as fiat is about the only thing most people know how to get moved fast with no more than a phone call. If a really large number of people want to flee euro banks, say, and perhaps move their money here, then most would be selling gold to change it to fiat to make the move - who knows what they do with it at the other end.

I see things like this and margin calls as possible things to push PM's down in price, but only temporarily - could be a wild ride indeed - but I think the destination is still the same as it ever was...
Gold went down pretty nasty in the last crash, remember, though a lot of gold bug types would have predicted it going up - but it sure did NOT, it merely went down less than almost everything else did, but it still went down, and of course, has since more than recovered. It only really shows its mettle in the longer terms, not any specific emergency, where it gets hit like everything not directly putting food on the table.
I can't wait until election season is over both here and in Europe. At that point, there isn't really any political gain in suppression. When the paper mountain they have built catches fire, and rest assured it will, all bets are off.
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