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One possibility is that debt troubles will begin to escalate in Europe, if we see that, then the Euro may come under big selling pressure, and in that scenario, Gold may strengthen dramatically against the Euro, and stay firm against the Dollar.

 

This is the scenario I'm seeing, which would send the Euro/ pound prices rocketing to new highs.

 

That the Euro/ pound price is not breaking all time highs presently is insignificant imo. It was the fact that those currencies practically crashed which sent the gold price so high [in those currencies]. Now that they have recovered somewhat, the gold price is lower than the high... but still higher relative to gold as priced in dollars. As for dollar weakness, that might lead to a 5 or 6% correction [on the chart below] in the dollar price of gold on renewed dollar strength... but I wouldn't make too much of this as O'Brien has:

 

 

eurogold.gif

 

 

goldpound.gif

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1 oz Gold Britannia's on CID are Purity: 917 / 1000 compared to other coins.

 

Does this bother anyone ? Will these sell in other countries for less ?

I actually think they are more valuable as they last longer before showing any sign of wear. As DA says it is still an ounce of pure gold and it would never be melted down and purified.

 

The main advantage of Britannia's is they are CGT free in the UK, so would fetch a greater premium if sold there than anywhere else.

 

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Russian Gold Banks

 

Interesting post on Ed Steer's gold & silver daily today.

 

Before I get into my gold stories for the day, I received an e-mail from someone by the name of Dimitry the other day... and this is what he had to report... "I just came from a trip to Russia and I was surprised how one can buy and sell any type [!] of world gold or silver coins at the major quasi-government Sber Bank. Prices of precious metals are clearly posted and regularly updated. Bullion and commemorative gold and silver coins readily available on display along with gold and silver bars up to 1 kg of Au. "Metallic" bank accounts are available and heavy promoted on window posters. Price check: 7.7 gram Russian gold coin was selling at the bank for 10,400 rubles [uS$335]." Dimitry sent along four photos... and here they are.

 

20100930-j2i521865ywykjw1n1wf81un9d.jpg

 

20100930-bnsw76u451shqte98jt4gxnt7h.jpg

 

20100930-pg66x8j5aqbwg62utts7i49e3i.jpg

 

20100930-kyh7auujrj9nakfyjcxtugi6f4.jpg

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Goldfinger, remind me of the true value of silver, how many ounces for a house? Ive been buying shedloads recently, I will let you all know the details once the transactions are complete. Ive been buying well below spot and a great story to tell..........

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That's an enthusiastic post. Do you have a link for the Irish bank comment, I can only see reports of 18-21% of GDP for a single bank? ...and yes they are taking the piss! :D

 

LOL they have to be taking the piss!!! Irish banks need a bail out of over 100% gdp for just one bank!! One bank!! And yet the euros rallies!!! I'll have gold thanks!!!~(and silver on a more serious note) hahaha!!! lol!!!
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Goldfinger, remind me of the true value of silver, how many ounces for a house? Ive been buying shedloads recently, I will let you all know the details once the transactions are complete. Ive been buying well below spot and a great story to tell..........

The extreme low was 1,000 oz silver for an average house in 1980.

http://gold.approximity.com/since1930/UK_H...Silver_LOG.html

UK_House_Prices_in_Silver_LOG.png

UK_House_Prices_in_Silver.png

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SluggerOtoole synopsis and pointers

 

 

 

Brian Lenihan: “It is an urgent and immediate priority to reinforce international market confidence…”

Pete Baker,Thu 30 September 2010, 4:57pm2

 

With, as Robert Peston put it, the Irish economy ”hideously and perilously balanced between recovery and Armageddon” the Irish Finance Minister, Brian Lenihan, has confirmed that the Anglo Irish Bank bailout will cost between €29.3 billion and €34.3 billion.

 

Additionally

 

AIB and Irish Nationwide will also require more money from the State.

 

The development will push Ireland’s deficit to 32% for this year, according to the Minister for Finance.

 

AIB will need a further €3bn on top of existing State funds being converted into shares.

 

That is likely to push the Government’s shareholding to a majority stake potentially over 90%, but the bank will retain a stock market listing.

 

As the BBC report notes

 

AIB needs to raise 7.9bn euros by the end of year to comply with the rules on how much money it holds in reserve, in case of more trouble in the banking sector.

 

Ireland’s finance minister Brian Lenihan said on Thursday he had been advised that AIB would find it difficult to raise all this money through the open market and that the state would have to step in.

 

RTÉ has live coverage from the Dáil and Seanad.

 

And Robert Peston adds, “It is make or break for Ireland’s public finances.”

 

The cost of the rescue to Irish taxpayers, including earlier measures, lifts the deficit in Ireland’s pubic finances from a painful 12% of GDP to a staggering 32%.

 

Elsewhere it’s reported

 

In an interview with BBC Radio 4′s Today programme, Mr Lenihan said the support was vital as Anglo Irish was too big to fail.

 

“The bank had grown to half the size of our annual national wealth, so clearly the failure of a bank on that scale would do huge damage to the local economy here in Ireland,” he said.

 

As the Irish Times reports

 

Minister for Finance Brian Lenihan today warned that further austerity measures will have to be imposed after the Central Bank revealed the total cost of the bailout for Irish banks will be almost €50 billion.

 

The measures, which will be published as part of a four year budgetary plan in early November, are part of the Government’s commitment to reducing the deficit below 3 per cent of gross domestic product by 2014.

 

As the Irish Times’ Financial Correspondent, Simon Carswell, says

 

The repeated increases in the banking bailout costs since the Government blanket bank guarantee in September 2008 has shaken the financial credibility of the State and the mounting cost of State-owned Anglo in particular has driven up Government borrowing costs.

 

The purpose of today’s early morning pre-market announcements was to show, once and for all, how much the Irish banks are going to cost the State. Now the Government must prove to the international markets that it can cover the cost with the public finances in a dire state.

 

But most of the opposition are hardly in a position to complain, as noted in this BBC report from 2008, when the Dáil first passed the bank guarantee legislation

 

The Dáil sat until after 0200 BST, the latest sitting in three decades, to debate the legislation, finally backing it by 124 votes to 18, with only Labour opposed.

 

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Well, house prices are the cheapest they've been for 20 odd year!

Yes, holding silver or gold has been pretty good so far. I just think it's going to get even better from here. This crisis is so much worse than what led up to 1980, I just can't see how it couldn't. However, all levers are pulled, and repeatedly. This seems to slow down the whole process, which is good for the investors.

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