As Spiny said...hard to tell. If I were to guess I would think the buyers aren't out in volume, just some who want in now. I know one who wanted in for a million but kept waiting for a pullback first at 2, then 3, then 4 and now at 5 he has a choice to make. But that is only one. Its a mindset that will change quickly in my opinion. I keep saying it's only a nickle...unbelieveably low...crazy actually. However, I know when I talk to my broker that so many buyers are always playing with the pennies since this is what they have done for years. Its a mindset. Many traders are playing for a few cents or more and buy to flip. Why play with the bid when the upside is so high? But, we have really not seen REAL volume here yet and that will come.

I think the game is now changing bigtime and those who hesitate will be lost. Let's face if we get a "hot tip" from someone to buy stock "X" at 45 cents, we probably think that's cheap. A lot of folks will probably bid .43 and wait. Could be those days are almost over. If SFMI happens to go to 15 cents after the listing on OTC and someone new comes along and sees the DD, they may think it's a good price and very low at that. Even at 45 cents it will still be a very cheap buy. The mindset for most traders will have to change in a hurry or they will get left at the gate. We are now in a state of rapid change and volatility.

Fo those of you who don't have a subscription to Le Metropole Cafe I heartily recommend it. After the events of the last few days we should know a page has turned. Here are excerpts from tonight's edition. It's author, Bill Murphy deserves a medal.

"Now that we have achieved an all-time high in gold, get ready for anything on the upside on a daily basis. The price swings are going into a different zone and will be much more dramatic. That said, The Gold Cartel is not going away yet, regardless of how much trouble they are in. Once again, today’s advance was in James Mc’s 2% rule parameter. The bums retreated to above $1040 where they made another stand. The good news for us is they are going to get their butts handed to them. This is only Jacks for Openers.

It was a good day for us silver bulls, yet it still closed 20 cents off its highs due to the activities of the silver price managers. When they are having trouble with a surging gold price, they often lean on silver as much as possible. The bums are in trouble with this precious metal too. One day in the months ahead, silver will shoot up $3 in a given Comex trading session.

" The gold open interest ROSE 7385 contracts yesterday, which means the late surge was new buying and not Gold Cartel shortcovering. It tells me we are in the midst of a Commercial Signal Failure in which the shorts trading with the cabal are going to be forced to cover in the weeks ahead, which will add fuel to the gold fire.

At JSMineset, Dan Norcini has posted a remarkable chart of the Dow/gold ratio. See

http://jsmineset.com/wp-content/uploads/2009/10/Dow-Jones-Gold-Ratio-Oct-2009.pdf

Not easy to comprehend that the pendulum has swung back so far.

Interestingly, the first wave of buying coincided with the publication of The Gartman Letter, which added a $US gold "unit" to its existing FX gold units. It did so in part because of the attitudes implicit in a story in the UK Independent newspaper, reporting multinational discussions to replace the $US in oil transactions. The story is here:

http://www.independent.co.uk/news/business/news/t
he-demise-of-the-dollar-1798175.html

However, TGL also discusses at some length various aspects of the Iranian situation, which it sees heating up. Overall, it may well be that this well-connected party has been told something.

The effect of yesterday’s action was to turn up The Privateer’s $US 5x3 point and figure chart, now looking quite handsome and threatening a major breakout. See:

http://www.the-privateer.com/chart/gold-pf.html

With the world’s largest gold buyer still keeping pace, this move could become really serious. …

Rob Kirby…

a bird on a wire told me so

Bill;
I’ve been told by someone who "knows" that major players demanded a lot of physical gold on Sept. 30 and "clowns" tried every trick to keep them in paper and even offered premium in cash over the Sept.30.Spot price.

Allegedly, the BOYZ were told that they have 5 days of grace to come up with the real goods.

The results are obvious.

There is less then 600 metric tons of Au available [globally] at this point in time [for possible sale] and 1/2 is locked / frozen and cannot be moved.

The delivery commitments are a multiple of this.

The battle is on and the first guys are being taken out of the room with bullet holes in their forehead.

There might be one last great concerted effort by the BOYS to knock back the price. But even they know by now that they have lost control and that their construct of lies, fraud and deceit is coming down.

It will get - no, it is - very, very, very ugly.

On top of it we shall see the collapse of some Gulf states, as well as some major US and European banks hitting the skids.
Rob...

It would seem – if my sources are correct – that we have finally reached "the point" that Frank Veneroso speculated about so many years ago – when price managers would "RUN OUT" of physical gold to continue their paper games. My ‘bird on a wire’ source continues;

The jerks are being hung by their thumbs and there is nothing they can do.

The very little Au that is available globally and it has been blocked from being sold to the BOYZ.

JPM/Chase is scrambling at every refinery to get their hands onto product. They even go to mines, no, - as we call it 'going to the pit to get it to the cage', but they don't have the required access and are being strung out big time.

They did not see this coming.

They will fight but they are being pushed onto their own swords. Arrogance comes before the fall.

I say, couldn’t happen to a nicer group of criminal thugs.
Best,
Rob Kirby

So many analysts were calling for a retracement and at least short term declines in the metals and the stocks that I think a lot of people did some selling late last month. We may be in for the whipsaw of a lifetime now as gold and silver have both surpassed previous highs for this move, and the way ahead is probably further to the upside considering the strong fundamentals and seasonal strength. So those who were sellers are either going to have to climb on board now and add more fuel to the rally, or stay painfully on the sidelines of what could be a big move that we have waited for 2 years to catch. And for those that were adding to paper shorts last month, this could be the come-to-Jesus wakeup call that may finally trigger the short squeeze to really put rocket fuel on this rally.

I do not count the Cartel out at any point and there is always another dirty trick up their sleeves but given all of the efforts they have thrown at us lately, to see gold breakout in strength today tells me they are going to have to retreat this time and let the rally run. It should be a fun fall for the gold bugs.
Cheers!
MexicoMike

It seems like I have been reporting on the horrendous gold sentiment picture since about a $900 price and back as far as July. Never seen anything like it. Of course, during all this time I have been pounding the table that bull markets don’t put in major corrections with so little bullishness out there … all-time high commercial short position or no. And, voila!

While the bullish sentiment has picked up considerably the past two days, it has a LONG way to go….

What I think is most important to stress at the moment is how little understanding there is out there in the investment world about the real gold story. You know it, but almost no one else does … and the worst of all are the clueless gold pundits and most of the industry executives. Their lack of knowledge, because they won’t deal what GATA has learned over this past decade, leaves them without a clue of what is transpiring and why.

Then, you have The Muppets on CNBC regurgitating one concocted idea after another about why gold is doing what it is. PRICE ACTION MAKES MARKET COMMENTARY. If gold and silver dip (or rally for that matter) tomorrow, they will be sporting forth anything which comes to their mind. It is quite amusing.

The gold story is all about the PHYSICAL MARKET … demand for physical gold by various countries, citizens in those countries, and powerful big money interests … versus the ability of The Gold Cartel to supply enough gold to overpower this demand. A weak dollar is very gold friendly. Yet, because of this demand which manifests itself for numerous reasons, the gold price can rally $400 or more from these levels and the dollar do very little. We have seen this before (after Gold Rush 21) and we will see it again in the months and years ahead.

Gold is on its way now to $3,000 to $5,000 per ounce. Pick a number for silver as JP Morgan and short friends get blown out of the water.

Arabs, Asia, Russia said planning to drop dollar in oil trade

The Demise of the Dollar

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia, and France to stop using the U.S. currency for oil trading.

By Robert Fisk
The Independent, London
Tuesday, October 6, 2009

In the most profound financial change in recent Middle East history, Gulf Arabs are planning -- along with China, Russia, Japan, and France -- to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold, and a new, unified currency planned for nations in the Gulf Co-Operation Council, including Saudi Arabia, Abu Dhabi, Kuwait, and Qatar…

http://www.independent.co.uk/news/business/news
/the-demise-of-the-dollar-1798175.html

Another reason the market rallied in New York today was a bullish call on the banking sector by a Goldman Sachs analyst.

Here is a somewhat different analysis of the situation by Chris Whalen of Institutional Risk Analytics. Chis believes that he sees strong evidence that "the fourth quarter in the banking industry is going to be a bloodbath."

Even if Goldman is wrong, and lots of investors take their advice and get hurt buying into banking stocks before an approaching "bloodbath," they seem to have it covered, at least for themselves, with plenty of derivatives delivering hefty profits into their own pockets should those banks fail.

http://jessescrossroadscafe.blogspot.com/2009/10/
bloodbath-coming-in-us-banking-sector.html