Errol

Interesting ... The Gold "Rehypothecation" Unwind Begins: HSBC Sues MF Global Over Disputed Ownership Of Physical Gold Essentially, this is at the heart of the whole commingling situation: was MF Global using rehypothecated client gold to satisfy liabilities? http://www.zerohedge.com/news/gold-rehypotecation-unwind-begins-hsbc-sues-mf-global-over-disputed-ownership-physical-gold

Worthwhile reposting this since people seem to have missed it. The central banks are active in the gold market. We have known this for decades.

LOL! Central Bank manipulation! MARKET SOURCES REPORT BIS, BOE & FEDERAL RESERVE WERE SELLING GOLD AFTER IT POPPED TO SESSION HIGH AT GMT 1335 -MNI NEWS via BLOOMBERG http://www.zerohedge.com/news/mni-reports-coordinated-central-bank-intervention-sends-gold-lower-intraday

$14-15? I would kill for those sort of prices. Physical demand would go through the roof.

Currency Wars - Russia Officially Adds 19.5 Tonnes of Gold Reserves in October Alone Russia bought 19.5 metric tons of gold in October bringing their total gold reserves to 871.1 tons according to IMF data released today. http://www.zerohedge.com/news/currency-wars-russia-officially-adds-195-tonnes-gold-reserves-october-alone

$430 an ounce?? Bring it on. Would be buying 6-7 times more at that price.

Some interesting gold/economy charts. Provided as is - not trying to start an argument. Make of them what you will (I like the last 3 in particular). Taken from http://www.zerohedge.com/news/guest-post-gold-still-answer-investors

Rising silver & gold demand in China-On the Edge with Max Keiser-11-18-2011 http://www.youtube.com/watch?v=i_P00geLNsk&feature=player_embedded

Yes, $1764 merely signifies the level where above that number we get HUGE volatility and a possible launch to higher levels. Sinclair made this quite clear. He also made it quite clear that the price would go below the 'angels' and that battles would take place around those important levels.

Eric Sprott talks to James Turk in Munich - James Turk: gold price will go above $11,000 http://www.youtube.com/watch?v=EzsER-T-QPU&feature=player_embedded

GDX and GDXJ are a good place to start re. mining stocks (for those who don't have time/inclination to stock-pick). Just make sure you have a core position of physical bullion first - I wouldn't want to put too much money/faith in GDX/GDXJ if/when the crunch comes. It's a calculated gamble, as ever.

http://www.youtube.com/watch?v=hSyJjC_jBWQ&feature=player_embedded#!

I'm buying regularly until we hit $5000 - allocating capital in small amounts, bigger on the large dips. We are preparing for the collapse of paper money. Nothing less. See - http://papermoneycollapse.com/tsf/ Detlev Schlichter's new book:

Euroland makes a fool of themselves almost daily. The Fed is hiding, hoping it will all go away, but it will not. That is what the gold trend is telling you. Jim Sinclair - www.jsmineset.com

G-20 Demands German Gold To Keep Eurozone Intact; German Central Bank Tells G-20 Where To Stick It Going back to the annals of brokeback Europe, we learn that gold after all is money, after the G-20 demanded that EFSF (of €1 trillion "stability fund" yet can't raise €3 billion fame) be backstopped by none other than German gold http://www.zerohedge.com/news/g-20-demands-german-gold-keep-eurozone-intact-german-central-bank-tells-g-20-where-stick-it

Good post from a blog I read - http://expectedreturnsblog.com/the-inevitable-contagion/ I cannot stress enough how gold needs to be bought on all pullbacks. There are no true safe havens besides gold. People thought the Euro was a viable alternative to the dollar just a couple of years ago- now those views are laughable. People thought the Swiss Franc was a safe haven until the government devalued. Now people think Treasuries are a safe haven and I am telling you this is the spike top in Treasuries. Gold and treasury yields should rise in explosive fashion and I am sure most of you will regret not buying more gold shares when you had the chance.

http://expectedreturnsblog.com/will-gold-rally-into-2012/ Will Gold Rally Into 2012? - It is at tops and bottoms that you figure out who the consistent winners in market are. I am patiently waiting for sentiment reading on gold to reach bearish levels. Then I will be getting very aggressive against the crowd and go take a walk in the park. A monster rally unlike anything we’ve seen so far should be coming in 2012 or 2013.

Brodsky on Gold - http://www.ritholtz.com/blog/2010/11/brodsky-on-gold/ We think we know what to expect: ultimately the Fed will formally devalue the dollar to gold and then it will conduct monetary policy on the much higher dollar/gold exchange rate, just as it has conducted credit policy with interest rates over the last generation.

LCH.Clearnet to accept gold as collateral Now, thanks to LCH.Clearnet’s move to accept gold as collateral by the end of October investors will be able to take any leveraged stock position (or range of other OTC market positions) for gold. The gold collateral evolution is seemingly unstoppable. One day, as they point out, it might even lead to “Tier 1 capital for gold”. http://ftalphaville.ft.com/blog/2011/10/06/694891/lch-clearnet-to-accept-gold-as-collateral/

Detlev Schlichter: Gold “bubble” bursting? – I don’t think so - http://papermoneycollapse.com/2011/10/gold-%E2%80%9Cbubble%E2%80%9D-bursting-%E2%80%93-i-don%E2%80%99t-think-so/

40 year veteran Robin Griffiths of Cazenove. Cazenove is one of the oldest financial firms on the planet and is widely believed to be the appointed stockbroker to Her Majesty The Queen. When asked about the action in gold, Griffiths responded, “The main point is it wasn’t a bubble and it hasn’t burst. Earlier, when the price was $1,900 an ounce, it was, in technical terms, overbought. It was too high too soon, actually trading 28% above the sustainable trend. The only slightly surprising thing is that it fell back to the trend really very rapidly.” http://maxkeiser.com/2011/09/29/%E2%80%9Cthe-main-point-is-it-wasn%E2%80%99t-a-bubble-and-it-hasn%E2%80%99t-burst/

The Chinese Mean To Control The Global Gold Market Get ready for the Pan Asian Gold Exchange, scheduled to open in June, 2012 in Kunming City, Yunman Province– the gateway to all of Southeast Asia. This is serious, as the Pan Asian Gold Exchange is a part of China’s five year plan– which means it is part of China’s strategy for dominance in global financial markets and the global economy. Pan Asian will allow Chinese to speculate in gold futures contracts or buy physical gold through an account with a bank or broker. All 320 million customers of the giant Agricultural Bank of China will. simply be able to use their Renminbi, the Chinese currency, from their bank accounts to trade gold. Sounds bloody dangerous doesn’t it. It means the spot market in gold could be headed for China– and away from London’s Metals Exchange or the Comex in New York. I’d like to know who is going to oversee and regulate all this action. For example, when the Comex raises margin requirements to dampen speculative fervor– will China bew governed by that? I doubt it very much. In June you’ll be able to buy spot gold or futures contracts in China. It also means that the Chinese currency- not dollars– will for the first time become the ruling currency used in one of the major speculative commodities of our age. All eyes will be on the influence of the gold trade in China rather than New York, London, Switzerland or South Africa. Another reason for registering the reality of gold as a trading vehicle, an investment for households, central banks, hedge funds, endowments. Another bullish force behind the powering of gold prices higher. No wonder George Soros has bought back some or all of the gold position he sold around $1600 an ounce. http://www.forbes.com/sites/robertlenzner/2011/09/27/the-chinese-mean-to-control-the-global-gold-market/?partner=yahootix

Jim Rogers' view on gold: We have discussed before that gold has been up 10 years in a row, which is very unusual in any asset class. So if it is up this year or 11 years in a row, gold is overdue for a correction and it could have a nice substantial correction given that it has been so strong. I doubt if it will go to $2000 an ounce in 2011, it is more likely to have a correction which will last for several weeks, several months. It has been very strong. If it goes down some more, I would buy more gold as I have told you many times. http://articles.economictimes.indiatimes.com/2011-09-26/news/30204713_1_base-metals-precious-metals-silver-and-gold

Excellent. I wonder how low we get the price?