GOLD

[BlackPepper]

Well, with CBs net buyers of gold, it should make gold more expensive in the market... more demand from the big boys and less available for investors. I think investors should copy what the CBs are doing. imo the CBs are buying gold in order to recapitalize economies/ currencies in the future. The problem with CBs having supported the weight of private and corporate debt that should deflate, is they have transferred systemic risk to currencies themselves. I think the manouvre towards gold reflects this super systemic risk. Gold is being remonetized.

To support your theory, if gold does become a measure for a new standard reserve currency, the price of gold would be stablized and may indeed may come down in value depending on currency and same vice-versa.

[Fortune]

Have to say I'm on the China bears side, such as Rickards and Chanos, on this one. The whole issue of decoupling is an interesting one. I think we'll eventually see decoupling, but in the short/ medium term China's fate looks tied to the project of globalism. What we are seeing now is an asset inflation/ bubble... yet it might take a while for it to pop. Still, the future of gold looks tied to depreciating currencies, and the demise of "market fundamentalism" where it was assumed currencies could themselves trade freely on the market. China is now showing this model to be defunct. The future with gold is one of remonetization imo, not one where it is just another investment vehicle. A completely revamped monetary system may be required to see economies emerge from K winter to spring.

 

South Korean CB today stated they are starting to buy gold. Previously, they had dissed it.

Link?

[electroweak]

To support your theory, if gold does become a measure for a new standard reserve currency, the price of gold would be stablized and may indeed may come down in value depending on currency and same vice-versa.

If gold is remonetized, you might expect something like this.. value of external USD debt valued to all gold held at the treasury. This means gold must rise in terms of fiat, otherwise there isn't enough gold to go around. Gold is LUDICROUSLY cheap relative to all the paper sloshing around.

From: http://www.youtube.com/watch?v=ckFfzoplC-I

 

EDIT here is BASE money:

 

[romans holiday]

Link?

http://www.bloomberg.com/apps/news?pid=206...id=ag2cRG2_O1Jk

The Bank of Korea, diversifying foreign-exchange reserves away from a falling dollar, said additional gold holdings aren’t attractive as most other central banks aren’t buying and the metal offers no cash returns.

 

“There’s an illusion in gold,” Lee Eung Baek, head of the bank’s reserve-management department, said in an interview. “We follow the big trend. Gold isn’t the trend. Out of more than 200 nations, how many countries have bought bullion?”

 

 

http://www.gata.org/node/8385

SEOUL, South Korea -- The U.S. dollar will likely remain the world's leading reserve currency for the next five to 10 years but may lose its edge over a longer period, a South Korean central bank report published on Sunday said.

 

The world could see multiple reserve currencies sharing the leading status 20 to 30 years from now, due to weakening confidence towards the dollar and the rising influence of other currencies such as the euro and yuan, it said.

 

"The global monetary order is expected to enter into a multi-currency system with currencies such as the dollar, euro, and yuan competing to become the leading reserve currency," the Bank of Korea report said.

 

It said the weight of dollar assets in global foreign reserves had already fallen to 61.6 percent by the end of September 2009 from more than 80 percent in 1977, whereas the euro has risen to 27.7 percent from 17.9 percent in 1999.

 

It is rare for the Bank of Korea, which manages the world's sixth-biggest foreign reserves, to publish a report commenting on such a sensitive topic, although the authors said the paper did not necessarily represent the central bank's stance.

 

 

http://commoditytradealert.com/blog/?p=4092

The Bank of Korea, the central bank of South Korea, has not purchased gold for 11 years, but is expected to go on a gold buying spree, as the world’s central banks have bought the commodity since the global economic erupted in September last year.

A Bank of Korea official said yesterday, “The bank has begun to set up a plan to manage foreign exchange reserves for next year. It has also closely watched central banks in other nations and trends in the global gold market. Given the changing global financial environment, the bank`s management plan is critical.”

 

According to experts, the comment implies that the bank plans to buy gold soon. Korea has the world’s sixth most foreign exchange reserves but ranks just 56th in gold holdings.

[BlackPepper]

If gold is remonetized, you might expect something like this.. value of external USD debt valued to all gold held at the treasury. This means gold must rise in terms of fiat, otherwise there isn't enough gold to go around. Gold is LUDICROUSLY cheap relative to all the paper sloshing around.

From: http://www.youtube.com/watch?v=ckFfzoplC-I

 

EDIT here is BASE money:

Sir if that be the case, you are truly delusional. Goldbug fever is becoming rampant

 

I think clean drinking water will have higher demand/value.

[romans holiday]

To support your theory, if gold does become a measure for a new standard reserve currency, the price of gold would be stablized and may indeed may come down in value depending on currency and same vice-versa.

You could say gold would have to be stabilized... as institutional money is swallowed up by it... but then you could also say that currencies themselves would have to be stabilized at this point. By standardizing the price of gold, international monetary authorities would also be stabilzing/ fixing the currency. It depends on which way you look at it. Existing currencies would be stabilized as they once again revert to their original function as a representation of gold. This would also entail the end of a free-floating market system for currencies.

 

When you think of gold as a competing currency, the fact that it is well above $1000 here compared to where it was just a few years ago has to be alarming for central banks. Keeping in mind it is a currency here, this reflects the equal and opposite deterioration of existing currencies. Small wonder CBs are buying. Asset prices are doubly deflating against gold, as the well-know charts of the ratios [posted often by gf] show.

 

My guess is gold will go to 1500 and then 2000 over the course of the next few years. These kinds of moves would no doubt co-incide with havoc in currency markets, and further deterioration of asset prices relative to gold. Though we are accustomed to thinking of inflationary nominal figures, this lower figure, within the context of crashing asset prices, is very much as real in terms of purchasing power.

[romans holiday]

If gold is remonetized, you might expect something like this.. value of external USD debt valued to all gold held at the treasury. This means gold must rise in terms of fiat, otherwise there isn't enough gold to go around. Gold is LUDICROUSLY cheap relative to all the paper sloshing around.

But consider, for the sake of argument, that deflation does get the upper hand and plays out. A lot of fictional money will be wiped out. Modern fiat day currencies are highly leveraged, and a collapse in asset prices will mean that existing money... not the anti-money of credit... will become more valuable/ valued against assets. Exeter's inverse liquidity pyramid encapsulates this phenomena well. Capital moves from assets to cash... cash becomes more valued/ valuable. Cash also moves to gold... gold becomes more valuable. Against cash, assets deflate,...against gold, they doubly deflate.

 

 

[electroweak]

Sir if that be the case, you are truly delusional. Goldbug fever is becoming rampant

 

I think clean drinking water will have higher demand/value.

did you watch the video? What part of the argument do you disagree with?

 

 

But consider, for the sake of argument, that deflation does get the upper hand and plays out. A lot of fictional money will be wiped out. Modern fiat day currencies are highly leveraged, and a collapse in asset prices will mean that existing money... not the anti-money of credit... will become more valuable/ valued against assets. Exeter\'s inverse liquidity pyramid encapsulates this phenomena well. Capital moves from assets to cash... cash becomes more valued/ valuable. Cash also moves to gold... gold becomes more valuable. Against cash, assets deflate,...against gold, they doubly deflate.

 

EDIT: Existing money? - MZM?

[BlackPepper]

You could say gold would have to be stabilized... as institutional money is swallowed up by it... but then you could also say that currencies would have to be stabilized at this point. By capping the price of gold, international monetary authorities would also be stabilzing/ fixing the currency. It depends on which way you look at it. Existing currencies would be stabilized as they once again revert to their original function as a representation of gold. This would also entail the end of a free-floating market system for currencies.

 

When you think of gold as a competing currency, the fact that it is well above $1000 here compared to where it was just a few years ago has to be alarming for central banks. Keeping in mind it is a currency here, this reflects the equal and opposite deterioration of existing currencies. Small wonder CBs are buying. Asset prices are doubly deflating against gold, as the well-know charts of the ratios, posted often by gf show.

 

My guess is gold will go to 1500 and then 2000 over the course of the next few years. These kinds of moves would no doubt co-incide with havoc in currency markets, and further deterioration of asset prices relative to gold. Though we are accustomed to thinking of inflationary nominal figures, this lower figure, within the context of crashing asset prices, is very much as real in terms of purchasing power.

 

So you then may say gold will be capped if this scenario were to play out? Sounds like this scenario has been played before. Hence the public hoarding gold may become once again a no no.

[romans holiday]

So you then may say gold will be capped if this scenario were to play out? Sounds like this scenario has been played before. Hence the public hoarding gold may become once again a no no.

I changed the word to standardized. I think the governments will have no choice and it will be a perfectly natural thing for them to do. They aren't simply going to sit back and watch economies blow up. The old western "market fundamentalist" ideology has had its day, and we'll see a more proactive government from here. I'm a pragmatist and don't see a problem with it per se. Neither does most of the rest of the world.

 

I doubt there will be much ado about "hoarders". Gold and dollars would be interchangeable once currencies are standardized.

[BlackPepper]

I changed the word to standardized. I think the governments will have no choice and it will be a perfectly natural thing for them to do. They aren't simply going to sit back and watch economies blow up. The old western "market fundamentalist" ideology has had its day, and we'll see a more proactive government from here. I'm a pragmatist and don't see a problem with it per se. Neither does most of the rest of the world.

 

I doubt there will be much ado about "hoarders". Gold and dollars would be interchangeable once currencies are standardized.

So then for debate sake for example the US could just say oh we have done away with the old regime, remove the Fed, all debts are forgiven and here's your new currency and we will 100:1 swap value for the old ones.

 

 

[electroweak]

RBCI © again??

Posted Today, 10:25 AM

http://www.housepricecrash.co.uk/forum/ind...howtopic=139377

 

[romans holiday]

So then for debate sake for example the US could just say oh we have done away with the old regime, remove the Fed, all debts are forgiven and here's your new currency and we will 100:1 swap value for the old ones.

I don't think there would be such a rupture with the past such as that. Governments will be looking to salvage what they can. imo there would be more of an "organic transition" from the present to the "new monetary regime". And then it wouldn't necessarily be absolutely new but a stabilization of the present one. I posted a bit on this here:

 

http://www.greenenergyinvestors.com/index....st&p=149175

[Jake]

Down 12 to 1090. Timber...to 1040?

Silver at 16.60.

[electroweak]

Down 12 to 1090. Timber...to 1040?

Silver at 16.60.

Sadly, the GBP is also falling; this is about the USD. So, RH's thesis is somewhat correct; wait in USD to buy PMs?

[romans holiday]

Sadly, the GBP is also falling; this is about the USD. So, RH's thesis is somewhat correct; wait in USD to buy PMs?

I'd only recommend this to those already with a decent position. Though I have a fair chunk of my worth in dollars besides gold, I'll also be "averaging in" some of that over this year [just bought a few ounces a couple of days ago]. I'd hate to become overly dogmatic about my own views.

 

I'm also looking to hedge shortly for a possible Prechterite collapse [in the market] by buying the dollar denominated VXX.

[InternationalRockSuperstar]

bought some more today.

[lowrentyieldmakessense(honest!)]

bought some more today.

did it make you feel better after listening to the central planners budget

[nicejim]

bought some more today.

I loaded up on cider :-(

[giantbat]

I loaded up on cider :-(

 

I came back from work to find my short with 10 gold cfds was in the money 18000 dollars . Shame its a demo account! Possibly a good buyin point for a long term hold with my BV account.

 

giantbat

[Gatesy]

A key crossroads for gold.

 

[safebetter]

Caveat Emptor:

 

http://www.kitco.com/ind/Conner/mar242010.html

 

 

Checkout the section on gold, could be in for a rough ride - tin hat time again LOL :lol:

 

"I’m expecting the correction in stocks will also correspond to the final leg down in what now looks to be a D-wave decline in gold that will most likely test the $1000-$1025 level. The left translated character of the current daily cycle is also confirming this."

 

Long and strong people, long and strong

 

SafeBetter

[safebetter]

Perhaps the plan is for the markets to spook the gold price down, China buys the IMF gold, then off we go!

 

Anyway, take heart:

 

Time is running out for the US Dollar

 

As Armstrong says, it's only time

 

SafeBetter

[safebetter]

Short term bearishness for the Gold price

 

 

BTW Good to see Dale Winton cashing in on the mania - you aint seen nothing yet Dale!!

 

SafeBetter

[G0ldfinger]

Oh-ohohohoh. That's one for the hyper-thread.

 

EDIT here is BASE money: