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It becomes patently clear to me that I don't understand any of this.

 

I thought I was starting to see patterns emerging, but none of it makes any sense.

 

And as for silver... It has the reputation of being volatile, but this isn't volatility... It'd have to go up sometimes for it to be volatility.

 

The various NS&I savings vehicles are looking more appealing all the time... :(

This is what the banksters want you to think. Just consider the fundamentals and don't worry about short- and even medium-term noise (if you are in long term, of course).

 

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I taught myself a lesson. Maybe others can benefit from my lesson too.

 

I sold 2.018kgs of gold in BV for £17,084 a kg, total £34,476. I woke up at about 4am all worried and came to see that Asia shares were plummeting and there was panic on sky news etc. Gold had been up too £550 ounce. I read on Jim Sinclair site

 

"Gold is about to VAULT UP.

 

I am reliably informed that the paper versus bullion gold war is lost by paper gold at a $930 close.

 

Gold will vault to slightly under $1000 then get pushed back, but not much at all. Directly after that we are off to $1200.

 

A Bank Holiday is moving from possible to PROBABLE."

 

I was convinced that this was it, total collapse of the system, and bought back in at a loss. I bought 1.942kg, 76 grams less than I sold.

 

When I get home golds absolutely plummeted. had I of waited I would have been £2000 up. Or would I? No one is selling 2kg on BV at the moment and what small amount is there is almost the same price I bought back on.

 

So, I didn't have much chance of making a profit! Still I'm trying to be philosophical about it, its only two bloody weeks work I lost!

 

Looking at the price now, they are just taking the piss aren't they!!

 

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It becomes patently clear to me that I don't understand any of this.

 

I thought I was starting to see patterns emerging, but none of it makes any sense.

 

And as for silver... It has the reputation of being volatile, but this isn't volatility... It'd have to go up sometimes for it to be volatility.

 

The various NS&I savings vehicles are looking more appealing all the time... :(

 

 

Loss covering & flight to cash.

 

Back to the fundamentals....

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I was just looking at the BV market board. For a couple of seconds in Zurich in euros it was €511 vs. €534 (rounded to the nearest euro).

 

It lasted just a couple of seconds then when to normal prices (640 - 651).

 

Maybe their system (which was probably upgraded a few days ago) is suffering some glitches?

 

How are the trading volumes compared to normal? Anybody know? System overload?

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I was just looking at the BV market board. For a couple of seconds in Zurich in euros it was €511 vs. €534 (rounded to the nearest euro).

 

It lasted just a couple of seconds then when to normal prices (640 - 651).

 

Maybe their system (which was probably upgraded a few days ago) is suffering some glitches?

 

How are the trading volumes compared to normal? Anybody know? System overload?

 

Was BV designed with this sort of volitility in mind?

 

 

 

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You think he made a typo?

 

"Gold will vault to slightly under $900 then get pushed back, but not much at all".

 

Gold will vault to slightly under $1000 then get pushed back, but not much at all.

 

Seems he did make a typo but the first post proved more accurate with a vault to $900

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Posted this on the wrong form oops. Anyway -

 

Stick to the gold/dow ratio.

 

 

Ignore gold price noise - if you had 100%, cash, remember there is nothing tangible backing it just a PROMISE. Promises are being broken all the time over the last 2 weeks. Physical gold and silver are still the best places to be IMO.

 

 

I heard a story on R4 earlier about a Jewish festival next week.

 

It goes along the lines of Jews making a shed or a tabernacle and living in it for a bit to remember the hard times their ancestors went through. It is a simple building made from wood and covered in leaves for a roof. Forgive me if I do not recite this correctly as I am not Jewish. The rabbi recalls how he once celebrated this festival. He was poor, so did not have a car to transport the materials to build a tabernacle, so he called his friend. He was delighted to take the rabbi in his car, where they went to thee store together to get the materials.

 

At the store, the rabbi's friend produced a list of everything he needed, nails, wood all sized up. The rabbi, did not have a list and bought what he could.

 

That evening the tabernacles were built. The rabbi built something lopsided, and resembled a discarded cardboard box .

 

The rabbi's friend had built an amazing tabernacle, a fine piece of home engineering.

 

The next day, they met at the synagogue, and the rabbis friend, was a bit miffed. Upset in fact. The rabbi asked what happened, to which he replied that a storm last night blew his tabernacle down and it lay in ruins. The rabbi, shocked, said, mine is okay. The rabbi's friend was amazed - he must go round to the rabbi's house to see this tabernacle that withstood the storm. Indeed when they reached to the rabbi's house, the tabernacle was still standing after the storm. The rabbi had actually fixed one point of the tabernacle to his brick house, one fixed strong point, that prevented it from falling down. The morale of the story is that, FAITH which is our strong fixed point, is what that keeps us still standing.

 

In some way Physical GOLD will be the only strong, fixed point that will withstand this financial storm.

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I feel like I've followed the white rabbit down the hole. Can anyone give me back some semblance of a grasp on 'reality' and tell me why we're having such a massive spike downwards in PMs? The only explanation I can summon up is massive manipulation.

 

(hot) money drove it up there in the first place.

 

Removing that (hot) money will bring it down.

 

 

Why all the surprise on the way down, and not a comment on the way up?

 

 

 

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I'm scrambling for some reason to this as well, it doesn't look like manipulation, it is most likely an effect of the Lehman CDS auction that concluded late today, so I would assume it's an asset sale that's pushed the price down, but at this point who knows. The thread about gold being made illegal makes me feel pretty uncomfortable, but I assume this is nonesense. Anyone know where this rumour started?

 

I feel like I've followed the white rabbit down the hole. Can anyone give me back some semblance of a grasp on 'reality' and tell me why we're having such a massive spike downwards in PMs? The only explanation I can summon up is massive manipulation.

 

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I feel like I've followed the white rabbit down the hole. Can anyone give me back some semblance of a grasp on 'reality' and tell me why we're having such a massive spike downwards in PMs? The only explanation I can summon up is massive manipulation.

 

There's only one explanation, a lot of gold has just been sold, paper or physical.

It's either been traded down on technical or fundamental reasons or a single or group of sellers sold a lot of gold quickly, or a combination of the two.

I've been trying to work out who's selling gold for a while, because by all reports, it's very difficult to buy physical gold at the moment.

It's hard to find any information other than speculation, though.

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I think the word is purchasing power parity. If gold was traded on a purely physcial basis only, then gold would instantly become the benchmark of benchmarks.

 

The problem with the gold market is levergage upon leverage and derivative products. Right now its a flakey market and these massive swings make it impossible to gauge value.

 

 

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I feel like I've followed the white rabbit down the hole. Can anyone give me back some semblance of a grasp on 'reality' and tell me why we're having such a massive spike downwards in PMs? The only explanation I can summon up is massive manipulation.

I think it's a classic midday smackdown. They are fighting for survival.

(Of course, there might be some sizable forced sales also.)

 

This one is a bit more photogenic.

smackdown37.jpg

 

 

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Why isn’t the price falling on BV? I have been waiting to pick up a some cheap gold for over an hour.

 

Current Spot: £496.09

BV Price: £528.60 + BVs fees (Zurich)

 

Is this a normal spread?

 

You can buy cheap paper gold for much less.

 

I promise you won't notice the difference.

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http://www.bloomberg.com/apps/news?pid=ema...id=aQFP3_y4srbU

 

Gold Futures Drop on Bets Global Slump to Cut Commodity Demand

 

By Pham-Duy Nguyen

 

Oct. 9 (Bloomberg) -- Gold fell for the first time this week on speculation that a global economic slump will reduce demand for commodities. Silver gained.

 

Morgan Stanley cut its forecast for gold prices by 5 percent, estimating that the metal will average $900 an ounce this year and $950 in 2009. Before today, gold gained 8.8 percent this week as investors sought a haven from plummeting equities.

 

``A lot of the speculative money is off to the sidelines,'' said Marty McNeill, a trader at R.F. Lafferty Inc. in New York. ``Gold is a victim of deleveraging. Eventually, it will do better than other commodities because it will hold its value.''

 

Gold futures for December delivery fell $20, or 2.2 percent, to $886.50 an ounce on the Comex division of the New York Mercantile Exchange. The price rose to a record $1,033.90 on March 17.

 

The Reuters/Jefferies CRB Index of 19 raw materials has dropped 34 percent from a record in July as energy, agricultural and industrial-metal prices slid. The gauge was little changed today.

 

Gold's decline may be a sign of some stability in financial markets after the Federal Reserve, the European Central Bank and four other central banks yesterday reduced borrowing costs in a coordinated effort to ease the credit crunch.

 

`Vote of Confidence'

 

``We think this is a vote of confidence in the global banking, trading, economic system,'' said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter.

 

Gold-lease rates fell for the second straight day, after gaining every day since Sept. 18 as credit conditions tightened. The one-month Libor gold forward offered rate fell to 2.4 percent today, after touching 2.7 percent on Oct. 10, the highest since 2001.

 

Still, gold may rebound on demand for a haven should more banks fail and the credit market remain frozen. Stocks in Europe and the U.S. fell today, and the cost of borrowing in dollars for three months in London rose to the highest level this year.

 

Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, reached a record 763.9 metric tons yesterday.

 

Silver, which has wider industrial applications than gold, gained as copper and other base metals rallied. Silver fell 16 percent last week when gold declined 6.2 percent.

 

``Silver got significantly oversold so you have some value hunters who think silver is comparatively cheap to gold now,'' said Frank McGhee, the head dealer at Integrated Brokerage Services in Chicago.

 

Silver futures for December delivery gained 10.3 cents, or 0.9 percent, to $11.875 an ounce. The price has dropped 20 percent this year.

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