The coming Gold crash

[dicker]

I appreciate this thread is controversial, but I have a genuine question for Wonger.  What has happened in the last two days?  Big short squeeze?

Best

Dicker

[silenceissilver]

10 hours ago, Wonger said:

What if the Fed announces US Treasury yield curve targeting revaluing the USD via US Treasury purchases made through the US Treasury on the Feds behalf?

This doesn't make any sense to me. Are you trying to avoid agreeing to the bet by running through an endless number of sligthly different scenarios from A to Z? You wouldn't do this, would you?

So, what do you actually mean with this, please explain!

[Martlet]

Seems to me this wager is really simple, no conditions except $price recorded by LMBA on $date.   If some re-valuation or other far out scenario occurs, roll with it. 

[mr-dead]

Wonger checking the gold price:

Edited July 22, 2020 by mr-dead

[silenceissilver]

1 hour ago, Martlet said:

Seems to me this wager is really simple, no conditions except $price recorded by LMBA on $date.   If some re-valuation or other far out scenario occurs, roll with it. 

It is simple. The restriction is also simple. The revaluation of the Dollar/effectively he introduction of a new US currency, also called Dollar, where the new average annual salary is e.g. $1000 means the bet is void.

No one knows if this will happen but it's not a far fetched scenario and it's not in line with Wonger's claims. He clearly implies a massive loss of purchasing power.

Edited July 22, 2020 by silenceissilver

[KRO]

very interesting day coming up on July 29

we will start to see how many on the other side of those shorts
stand for delivery

Maybe Wonger will take a different view from his favourite chart after then😀
but I doubt it

[Prophecy]

Connected to the recent announcement by the EU to pump 1.5 trillion euros into the economies? 

[sovereignsteve]

22 hours ago, Martlet said:

Seems to me this wager is really simple, no conditions except $price recorded by LMBA on $date.   If some re-valuation or other far out scenario occurs, roll with it. 

@silenceissilver

This is the only way you will possibly get your wager out of Wonger. I would say any revaluation of the usd in the timescale you suggest is pretty much negligible.

[silenceissilver]

8 minutes ago, sovereignsteve said:

@silenceissilver

This is the only way you will possibly get your wager out of Wonger. I would say any revaluation of the usd in the timescale you suggest is pretty much negligible.

I agree it's not particularily high but I don't think it's negligible either and certainly too high for me to risk 3 ounces of gold, losing my bet on technicalities (whereas Wonger clearly means a massive loss of purchasing power).That would be like Usain Bolt being beaten in a 100m race by an 80 year old guy on a cane because of 2 jump starts.

Edited July 23, 2020 by silenceissilver

[TheApe]

Golds still crashing today.

[Darr3nG]

6 minutes ago, TheApe said:

Golds still crashing today.

Flat-lined for me, but then I am holding the screen at a funny angle

[Goldmansacks]

This thread up there with the best (or worst for some) on any forum anywhere about any subject.

[silenceissilver]

10 minutes ago, Darr3nG said:

Flat-lined for me, but then I am holding the screen at a funny angle

[Booky586]

15 minutes ago, Goldmansacks said:

This thread up there with the best (or worst for some) on any forum anywhere about any subject.

Totally agree. I find it compulsive reading and completely addictive, but really irritating at times!

[Chorlton]

Are we still supposed to be buying golden shorts at $400 a pair ?

My drawer is full and may need to move the socks somewhere else 🤔

[r1lee]

New to this forum, don't consider myself a true stacker, as i bought most of all my  holdings in 2016 @$1235 and $15 as a hedge against inflation (so far its paid very well especially with the increase in the USD/CAD ratio during the same period (I'm canadian).  I've been trading and investing for 24yrs now, mostly trading over the last 5.  Going through some of this thread, i do have a question for Wonger.   He does have a good point that once a trade is lopsided, then it usually goes the other way. But some of the figures are downright crazy and i can only see that if we have a reset/replace of the USD, ok back to the question.  Honest and true question and if anyone else feels the need to respond, please feel free. I'm always trying to learn this market, as its always done something totally wacky. 

Wonger, you state that deflation will happen and therefore the price of metals would plummet.  That would mean FED would need to say the least, destroy the amount of FIAT flowing through the system.  But yet, you are long the index's to hedge against your metals short. If the money supply is reduced, the assumption is that everything in/that has value drops since it costs less to buy stuff.  If the cost of goods drop, then quarterly earnings for most of these companies will be reduced.  You can't have a  deflation with the markets also not deflating with it.  Obviously the markets are not representing the real economy at this point, well since the FED pumping began.  In most cases, deflationary periods do not actually take the markets down with it, as long as the deflationary percentage is beyond the +/- 2% the FED always seems to look for.  

[sovereignsteve]

We'll not see Wonger back here until gold has a correction

[sovereignsteve]

5 hours ago, silenceissilver said:

I agree it's not particularily high but I don't think it's negligible either and certainly too high for me to risk 3 ounces of gold, losing my bet on technicalities (whereas Wonger clearly means a massive loss of purchasing power).That would be like Usain Bolt being beaten in a 100m race by an 80 year old guy on a cane because of 2 jump starts.

The question is exactly what is the stake?

If its 3 oz. of physical gold, technically you're only risking 3 oz at $400 if by some miracle it does go to 400.

Chances are you'll win one oz at $2000 or whatever😄

[TheApe]

4 minutes ago, sovereignsteve said:

The question is exactly what is the stake?

If its 3 oz. of physical gold, technically you're only risking 3 oz at $400 if by some miracle it does go to 400.

Chances are you'll win one oz at $2000 or whatever😄

Yep, I had copped that and how stupid the bet was but didnt want to say it as Wonger is obviously not too good at maths 🤣

[Prophecy]

I'm setting up a gofundme page for poor old Wonger. The dude must be so in the red.

[dicker]

I think we are man down, which is a shame.  I was keen to understand what was going on in the gold market, the world of high finance and what Wongers trading desk made of the market movements.  

Perhaps he is out at a meeting with the government as per one of his previous posts.

Best

Dicker

[silenceissilver]

34 minutes ago, sovereignsteve said:

The question is exactly what is the stake?

If its 3 oz. of physical gold, technically you're only risking 3 oz at $400 if by some miracle it does go to 400.

Chances are you'll win one oz at $2000 or whatever😄

Well, if there is a revaluation o the Dollar it changes the value of 400 Dollar. It might be the same as now 4000. That's the whole point of this restriction. Such revaluations do always happen after hyperinflations and if there is one with the US Dollar before the end of 2021 and one zero cancelled out compared to its current purchasing power (and a few more, altogether), Gold could be have double the purchasing power compared to now, yet I would have lost the bet. As said, Wonger implies a massive loss of purchasing power and I want to make sure, it is about that.

[silenceissilver]

12 minutes ago, dicker said:

I think we are man down, which is a shame.  I was keen to understand what was going on in the gold market, the world of high finance and what Wongers trading desk made of the market movements.  

Perhaps he is out at a meeting with the government as per one of his previous posts.

Best

Dicker

Sorry for having driven out Wonger with my bet offer. I too wish he'd come back. I want my free ounce of gold!

[jultorsk]

On 22/07/2020 at 02:57, Wonger said:

Im on the Asian desk, were going to open the flood gates on the offer in 3 mins!

Looks like a flood alright...

 

Edited July 23, 2020 by jultorsk
added quote

[r1lee]

some people are just early on a trade.