china gold buying stuns precious metal traders, page-49

AJ, not a blow-off top just his non-core trading position. As gold moves to $1400-1700 it will be more volatile so adjust your buy points:

"As Gold goes higher, you will have to demand ever-larger price weakness to operate your buy programs"

He thinks Bernanke will eventually reach for the gold revaluation tool when it's evident QE isn't working. Richard Russell has suggested similar in the past - a $7 trillion market doesn't help much, but $30 trillion might just repair many a balance sheet (gold = $5000).

Thompson thinks revaluation will be driven by JPM et al as compensation for off-balance sheet derivative losses by defaulting sovereigns, e.g. maybe Italy which needs to roll over a pile of debt this year, as I posted about on another thread (from a London bond trader).

Rowingboat