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AXSTONE'S FINAL WAVE (5)

axstone

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  • I have a bullish view on Gold
  • I view a trading channel developing and I am assuming the channel doesnt break
  • I see gold is at at a resistance right now at a long term down trend channel see the orange section thats "resistance"\
  • I assume the recent trend is not broken
  • the 1480 area is a Fibonacci retracement level http://www.investopedia.com/terms/r/retracement.asp
  • and of course gold's valuation is fighting the paper and physical market which we are slowly moving to physical; the bias in my opinion is an upward revision in price

range.png
 

Ebie

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"...gold's valuation is fighting the paper and physical market which we are slowly moving to physical..."
Is the actual physical market growing?
Where do you get that information?
Is it growing faster than the paper market?
This is the #1 key piece of information that ordinary citizens do not have.
It puts a limit on the ratio of paper to physical.
Otherwise the ratio can grow to 1M to one.
 

axstone

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Internet mostly. Lot of reading Some from Eric Sprott & friends

Your last point..the answer is no
 

axstone

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Ebie, are you aware of OHMS law??
images.png


Take the above circuit and put a silver wire between the first bulb
now calculate the current.. hint the resistance is .00003 ohms
for the silver wire (silver is a great conductor)


images2.png
 

axstone

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My point is that ohms law is suppose to be a linear equation

however a 9 volt battery with a resistance across the terminals of .00003 ohms
will not give you 300,000 amps
 

axstone

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as the money supply approaches infinity, something will break down

the current with a 9 volt battery will not reach infinity as a variable resistor approaches zero
 

andial

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Yes gold has been a bad hedge verses an exploding monetary base so far so has silver not doing what they were hired to do long ago.
 

savvydon

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Yes gold has been a bad hedge verses an exploding monetary base so far so has silver not doing what they were hired to do long ago.
The line it is drawn, the curse it is cast
the slow one now will later be fast
as the present now will later be past
there order is rapidly fading
and the first one now will later be last
for the times they are a changing

 

Ebie

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as the money supply approaches infinity, something will break down

the current with a 9 volt battery will not reach infinity as a variable resistor approaches zero
Yes. but with a battery, you can calculate when it will happen...
 

southfork

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as the money supply approaches infinity, something will break down

the current with a 9 volt battery will not reach infinity as a variable resistor approaches zero
Deep, I am therefore I must be.

E
I R
 

Unca Walt

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As the local EE around here, I gotta lookit this:


My point is that ohms law is suppose to be a linear equation however a 9 volt battery with a resistance across the terminals of .00003 ohms
will not give you 300,000 amps
The above is true. And, yes, the analogy works for me when applied to PM's... as far as it goes.

There is sumpin' called "internal resistance" in the battery itself, and that will be the limiting factor as to how much current will go through that silver wire.

But the good point is... the analogy to PM's even holds when one considers the whole circuit -- and it goes thisaway:

When you close the switch, you get a jillion amps (well, mebbe 20 amps) for a jillionth of time (limited only by internal resistance I=E/R or I = 9/0.5 on an AA battery at 21C).

Then all kindsa heat and crap screw/blow the circuit to a standstill while the battery turns to hot mud. <-- Translating that fact to the PM analogy, we see that there will be an EXTREMELY SHORT PERIOD OF TIME when the circuit goes ballistic.

Then everything in the circuit will take an absolutely total shit and shut down in rags and smoke.

Pretty good analogy.
 
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axstone

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there is only a finite of energy in the 9 volt battery
(battery will die within the hour)

there is only a finite amount of physical gold
(derivative gold markets will die within the next decade)
 

southfork

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there is only a finite of energy in the 9 volt battery
(battery will die within the hour)

there is only a finite amount of physical gold
(derivative gold markets will die within the next decade)
Dang was hoping the paper gold farce would end within a year.
 

Nomis Elpmis

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Nah, when Axestone shows up it's always a bullish sign..:-)
 

Nomis Elpmis

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I've been reading Axestones posts since about 2005. Part of my GIM 1 & 2 economic education.
 

axstone

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As in down to $900?
No no.. I just think there are too many juicy stops below this trendline that probably helps the shorts rake in a profit
if that happens the momentum of the technicals get more bearish (short term), before a reversal

The big money is still to 1400 - 1600 and 1850 in my view

AX
PS thanks for the nice comments!!
 

axstone

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This may be the most significant Trend line gold will have broken in U.S History. keep that in mind!! So expect a fight

and what it means is a confirmation the bull market is alive and well (wave 5 has begun) and massive inflation is on its way.

I believe the physical market is really a leading indicator of this, the paper market is a game that will be broken after this trend line is broken on the uspide
 

louky

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This may be the most significant Trend line gold will have broken in U.S History. keep that in mind!!
Exactly. Non rate hike isn't enough to push us over the top in my estimation. We push up against the line, post fomc. Then, I see something brewing on the horizon, 2-3 weeks out, maybe a month that finally uncorks the bottle.
 
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louky

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I agree with you that we "need" to hit 1260-80. It's a big gap of stops they want to eat up. I just don't see time left unless we get a kick in the nuts via fomc wednesday.

That said....

....Expect the unexpected as I posted elsewhere.
 

louky

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BOJ and ECB meetings the next two days as well. Maybe it was never rate hike and they throw the curve ball
 

pitw

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No no.. I just think there are too many juicy stops below this trendline that probably helps the shorts rake in a profit
if that happens the momentum of the technicals get more bearish (short term), before a reversal

The big money is still to 1400 - 1600 and 1850 in my view

AX
PS thanks for the nice comments!!

Thanks for the reply. If it were ot for you guys being willing to teach imbeciles like moi, I'd know nothing and as it is I know nothing + a wee bit.
 

pitw

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No no.. I just think there are too many juicy stops below this trendline that probably helps the shorts rake in a profit
if that happens the momentum of the technicals get more bearish (short term), before a reversal

The big money is still to 1400 - 1600 and 1850 in my view

AX
PS thanks for the nice comments!!

Thanks for the reply. If it were ot for you guys being willing to teach imbeciles like moi, I'd know nothing and as it is I know nothing + a wee bit.