G0ldfinger

I am reading up on the posts of "Another" - thanks to Steve Netwriter's recent postings. It takes hours, but they seem to be hours well spent, even if I do not agree 100% at all times. When I read this, I had to think of our dear DrB.: http://www.usagold.com/goldtrail/archives/another2.html

100 oz coming - easily. We're 'half' way there already.

(This post has been heavily edited!) Those who like the writings of Another might appreciate this. Oil priced in gold: http://gold.approximity.com/WTI_gold.PNG Max 0.1506 Min 0.0296 Avg 0.0746 This means that someone (big) is not willing to sell barrels of oil for less than 0.03 oz, but he/she also makes sure it won't sell for much more than 0.15 oz in extremes. Another's writings: http://www.usagold.com/goldtrail/archives/another1.html

U.S. Home Foreclosures Climb 44% to Record in May http://www.businessweek.com/news/2010-06-1...y-update1-.html

Has not (yet) materialized. I am not too surprised, since I don't hold any EUR myself. But I think USD and especially GBP are overrated at the moment.

http://gold.approximity.com/gold-silver_watch.html

It won't be necessary, because he can just buy it (print & buy).

That's the difference between the short-term maniacs (traders) and the easy-going long-term investors.

Just to put it into perspective (steamrollers & nickels come to mind...)

Houses can now be had at 195 oz. It's a pleasure to see prices falling. http://gold.approximity.com/gold-silver_watch.html

The London AM Fixing this morning was an LBMA all time high in all three major currencies: 08-Jun-10 USD 1,248.00 GBP 867.45 EUR 1,048.03

DJIA:gold has now broken 8.00 on the downside. http://gold.approximity.com/gold-silver_watch.html http://gold.approximity.com/gold-silver_watch.html

The market would not be able to handle such volumes. My guess is that these funds will all get stuffed with nake gold shorts, or similar. Or it's just gonna explode.

(1) There is a 6,000 year fashion of using gold as money (maybe more). (2) There is a 6,000 year fashion of using houses as spaces to live in (maybe more). I don't see any danger of one of these fashions going out of fashion anytime soon. Although, the second one has undergone major changes recently. Tthink of all the highrises that have popped up.

Can't take this guy seriously anymore. He doesn't even bother to look at inflation-adjusted asset prices and price ratios. EDIT: Also, gold is the world shadow currency (momentarily in the shadow, I should add). Restricting it to a metals subforum just shows that he is as moronic as the guys over at HPC.

What it means is that the $42.22/oz of the Fed is indeed the correct price according to their balance sheet IF all their assets are worth what they are stating and IF they don't support any other debt like trasuries or MZM/M3. The markets quite clearly think that this is not the case! Interesting is that even if they don't underwrite any other money (which they clearly do), only a 24% discount on the MBS sends the theoretical gold price to almost $2,500 already. That is the new $42.22, so to speak. In that sense, we can expect MUCH higher prices than just $2,500/oz.

http://gold.approximity.com/gold-silver_watch.html

I have allowed myself to play around with the Fed's balance sheet. Currently, the Fed values $166,715M in Federal agency debt securities and $1,113,614M mortgage-backed securities on their balance sheet at face value. This is in line with their gold reserve of 261.4M oz valued at $42.22/oz. If one accounts for the Fed's gold at current market prices ($1,219/oz) and allows a discount on the agency debt and the MBS, then this discount is currently 24%, i.e. one could argue the market expects the Fed to only recover 76% of this debt. If one assumes a discount of 50% on the named agency and MBS debt, then the implied (by the Fed's balance sheet) gold price would be $2,491/oz. Complete worthlessness would imply $4,940/oz. These numbers have been calculated assuming all other securities at stated book value (often face value), and the Fed not taking on any other assets/liabilities*. *Which is a very strong assumption!

You would hope there is going to be one soon. http://gold.approximity.com/since1968/Gold_EUR.html

Keep in mind that neither the Sinclair External Debt Model, nor the Approximity MZM Model take into account the UNFUNDED liabilities of the U.S. If those are taken into the calculation, one can arrive at the truly phantastic numbers mentioned by FOFOA. The question always is: at what price level of gold will the market "think" that the gold base has grown large enough? The numbers from the theoretical models should only be seen as theoretical upper boundaries. HOWEVER, they are prices as of TODAY, which means that further future inflation might push these up considerably.

MZM (or M3) is slightly dipping at the moment. That's why. (Note that the other chart was non-log, so the dip looks more dramatic than it is.) http://gold.approximity.com/since1959/US_MZM_LOG.html And thanks Steve!

Essentially, I agree with it. And here a couple of related charts: http://gold.approximity.com/since1970/Exte...Gold_Price.html http://gold.approximity.com/since1970/MZM_...Gold_Price.html

Cheers!