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^^ Thanks for those links, Warpig.

 

No notifications here in Europe so far. I would guess most leveraged speculation in Gold would be

coming from countries who have a history of the allure of gold such as Asian countries.

 

But there are wider things going on at the moment in for example China and India which have high

inflation and where in China although they have very high reserve requirements, such reserve

requirements with an interest rate target are regarded as totally ineffective in influencing bank

lending. So unless it is different in China then China needs to tighten up monetary policy.

 

The feds are apparently not going to be doing more QE. The USA situation is such that they will be

obliged to implement some kind of austerity sooner rather than later.

 

Fundamentally you need people with money who are buyers of commodities. In so many countries now

you have gloom or are going to get gloom like in China when they do tighten up. QE has apparently

been exported to other places who have not yet tightened sufficiently given the exstraordinary impact

of QE. Evidently the fed thinks this is these other countries problems and not the feds.

 

The feds could be totally in control. Whatever you believe, the feds are doing everything they said they would do.

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^^ You guys are speaking as if the central banks surrender physical control of the gold. I don't think that's ever been confirmed.

 

Central bank gold has provided liquidity for many gold market operations, whether gold loans or forward and option books by mining companies, masking gold sales by central banks until the moment of delivery, underwriting speculators' short positions, underpinning bullion dealers' consignment stocks, or simply providing jewellery manufacturers with working metal

 

I think a lot has gone!

 

Regards

 

ML

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The feds are apparently not going to be doing more QE. The USA situation is such that they will be obliged to implement some kind of austerity sooner rather than later.

:lol: :lol: :lol: Dream on! As if Bernanke wanted to see interest rates at over 10% right now. :rolleyes:

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If you ever wondered why the Chinese State is encouraging its people to buy gold, FOFOA has the simple answer here...

 

And since the US is not in the business of selling off the farm, we sell government debt paper. This has the effect of funding the US government through the trade deficit and exporting the currency inflation to those trading partners that must print their own currency to stay pegged. If they were to buy US-made products with those dollars rather than Treasury paper, then there would be no trade deficit. But then the American economy would have less goods, more cash (inflation) and the government would have to find another stream of funding.

 

But there is another thing they can do (and are starting to do) with those dollars we are sending them for their goods. They can buy gold on the open market. It really doesn’t matter if the exporter that receives the dollars buys the gold himself, even inside the country, or if the CB buys it from London. If it is purchased in country by citizens, that will raise the internal price of gold and create an arbitrage opportunity that will cause gold to flow into the country until the price differential (inside and out) is equalized.

 

 

and

 

Buy gold (instead of Treasuries) with your excess dollars received from selling to products or oil to the US. As long as you buy on the open market (as opposed to dark pools as the Saudis used to do or from mines inside your own country) this drives up the price of gold and causes a physical inflow into your country. You no longer have to print equal amounts of your own currency so you have stopped your internal monetary inflation and, instead, channeled it into the price of gold (inflation only against gold, not life’s necessities). The Fed, in turn, is forced into “QE” which is essentially printing those dollars you would have given to Treasury since Congress can’t cut the budget. Also, those dollars you used to buy gold in London or Zurich will eventually find their way back into the US through private channels and add inflation on top of the printing the Fed is doing.

 

http://fofoa.blogspot.com/2011/06/from-treasure-chest.html

 

Recommended reading - especially for aliveandkicking, who I worry about..

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More like he knows darn well it's gone, but he isn't going to say that is he.

I'm amazed he is still alive.

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Hey GF,

 

Do you have an inflation adjusted chart for gold in JPY on approximity? Thanks!

Jake.

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Hey GF,

 

Do you have an inflation adjusted chart for gold in JPY on approximity? Thanks!

Jake.

 

Just found this snippet :)

 

Yen gold is likely to rise above its nominal high of 200,000 yen seen over 31 years ago on January 18th, 1980. In the longer term, the inflation adjusted high of over ¥500,000/oz is quite possible given Japan’s dreadful fiscal and monetary position.

 

From here,

http://www.resourceinvestor.com/news/2011/5/pages/japan-economy-contracts--gold-in-yen-consolidates-.aspx

 

more tidbits here,

 

Most Wall Street and City of London analysts have completely underestimated the risk posed by the Japanese natural disasters and deepening nuclear crisis. Thus, the risk of a return to recession and even depression in Japan is completely underestimated.

 

Japan, like most of the western world, is massively indebted with Japan's government debt-to-GDP ratio projected to top 200% this year, the heaviest in the industrialized world. Greek’s debt load is set to rise to 160% of GDP growth next year which is close to the levels seen in Zimbabwe which recently experienced hyperinflation.

 

Complacent analysts reassure that unlike Greece and Zimbabwe, much of Japan’s debt is held by domestic savers and the belief is that they are unlikely to sell their yen paper assets.

 

This assumption is highly questionable as in the event of inflation deepening and the yen continuing to fall on international markets, Japanese savers are likely to diversify out of yen denominated bonds and cash.

 

 

 

Massive public debt in Japan, in conjunction with very poor demographics and a shrinking population mean that Japan is increasingly vulnerable to a sovereign debt and or currency crisis.

 

The “past performance” of Japan’s deflation of recent years may not be indicative of future performance.

The current and continuing response of the Japanese authorities is the printing of trillions and trillions of more yen and further fiscal and monetary profligacy.

 

Thus, Japan looks likely to be entering a period of much higher inflation. This creates the real risk of virulent stagflation and even of hyperinflation in the coming years.

 

 

Say a prayer for me!

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Gold predictably continuing to consolidate around 1500 on the long term trend line. Should bounce on the blue line soon. This chart from a couple of months back.

 

 

longgold-3.gif

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Screen%252520shot%2525202011-06-28%252520at%25252018.02.33.png

 

Screen%252520shot%2525202011-06-28%252520at%25252018.01.40.png

 

Hi Errol, thanks for the last post, I was only thinking today the world is awash with "cash"!

 

Could you have a cash bubble?

 

If so what would be the antipathy of fiat cash?

 

Precious metals and farmland?

 

Swop any false paper cash for those two items soon!

 

Regards

 

ML.

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Screen%252520shot%2525202011-06-28%252520at%25252018.02.33.png

 

Screen%252520shot%2525202011-06-28%252520at%25252018.01.40.png

 

If the cube is 20x20x20m then I calc there is 25grams per person on the planet (6 billion people).

 

if the cube is only 20m3 then a lot less....

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First gold dispensing ATM opens in the United Kingdom

 

http://www.bbc.co.uk/news/business-13998238

 

 

A gold bar vending machine has opened in the Westfield shopping centre in west London.

 

The machine, which follows others around the world including in Dubai and Germany, dispenses gold bars. Prices are updated every ten minutes as the gold market changes.

 

The company behind the venture, Gold to Go, put a mark-up on the price of gold but CEO Thomas Geissler insists it is a good investment for members of the public.

 

Gold prices are currently close to record highs of more than $1,500 (£940) an ounce.

 

However, economically challenged people failed at an intellectual level when asked their opinion on whether the gold bars would make a good gift or investment.

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First gold dispensing ATM opens in the United Kingdom

 

http://www.bbc.co.uk/news/business-13998238

 

 

A gold bar vending machine has opened in the Westfield shopping centre in west London.

 

The machine, which follows others around the world including in Dubai and Germany, dispenses gold bars. Prices are updated every ten minutes as the gold market changes.

 

The company behind the venture, Gold to Go, put a mark-up on the price of gold but CEO Thomas Geissler insists it is a good investment for members of the public.

 

Gold prices are currently close to record highs of more than $1,500 (£940) an ounce.

 

However, economically challenged people failed at an intellectual level when asked their opinion on whether the gold bars would make a good gift or investment.

 

I suppose they couldn't work out what to do with them as they cannot wear them, eat them or live in them etc.

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http://www.bbc.co.uk/news/business-13998238

 

 

 

 

However, economically challenged people failed at an intellectual level when asked their opinion on whether the gold bars would make a good gift or investment.

 

How were they indentified?

Do they all have to wear badges now like the star of David??

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First gold dispensing ATM opens in the United Kingdom

 

http://www.bbc.co.uk/news/business-13998238

 

 

A gold bar vending machine has opened in the Westfield shopping centre in west London.

 

The machine, which follows others around the world including in Dubai and Germany, dispenses gold bars. Prices are updated every ten minutes as the gold market changes.

 

The company behind the venture, Gold to Go, put a mark-up on the price of gold but CEO Thomas Geissler insists it is a good investment for members of the public.

 

Gold prices are currently close to record highs of more than $1,500 (£940) an ounce.

 

However, economically challenged people failed at an intellectual level when asked their opinion on whether the gold bars would make a good gift or investment.

 

I thought this was a great video, showing a majority if clueless joe publc.

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I thought this was a great video, showing a majority if clueless joe publc.

 

Yes it shows the general public as clueless about gold as real money or gold as a hedge against the depreciation of fiat money. But still significant in my view as an indication of a changing tide that will see more and more people work out what governments and the central banks are trying to do. But by the time the majority work it out it will probably be too late for them and they will wish they bought that little gold bar instead of the perfume they chose at the time.

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Gold rising all morning but the Yanks are back this afternoon with their fistfuls of paper shorts, foaming at the mouth.

 

which way will it go?

It's the shorts that are doing the covering IMO.

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