alexreeve

European signatories sell 2.7 tonnes of gold last week Is this substantial enough to have triggered last weeks drop?

If you remember on the old gold thread there, people were always asking for a summary because they wanted to invest their life savings but couldn't be arsed to read through it.

I was actually offering "How can the deflation happen when the banks aren't allowed to suffer the consequences?" as a genuine question. It seems a lot of people who certainly sound like they know more about finance than me, feel it is inevitable, and I just don't see how without a change in policy? Could it not be that treasury bonds are considered (right or wrong) the lowest counterparty risk that still generates an income and that is why they are so in demand? That it is not expectation of it being a profitable investment but rather a damage limitation exercise? I am aware of the apparent conflict between the two paragraphs above, which is partly why they are both phrased as questions.

How are financial institutions going to keel over when CBs [take them over][give someone else the money to take them over][change their capital adequacy requirements][take worthless bonds and swap them for cash at face value]* to prevent it? *Delete as appropriate I do agree that deflation should occur if the natural free market was allowed to play out, but the super-interventionist approach in US/UK seems to preclude that.

I like having a counter argument, in many ways I wish there were some contrarians on this thread. Most of the posts on that thread really are just drivel though, proclaiming a sea-change in investments with no rationale... Re: Silver and gold moving in tandem, looks like silver is still dying while gold is ticking up a bit now?

http://www.housepricecrash.co.uk/forum/ind...15&start=15

Article by Peter Shiff commenting on the Feds decision to take mortgage based collateral: Vive La France – the Road to Hyperinflation "...backing paper money with mortgages is nothing new. The French tried it in the late 18th Century, and it lead to hyperinflation. Assignats, which were first issued in 1790 to help finance the French revolution, were backed by mortgages on confiscated church properties. Although the stolen underlying collateral did have some value, the revolutionaries saw no reason to limit how many Assignats were printed, which resulted in massive depreciation. Within three years, price controls were introduced and failure to accept Assignats, initially an offence subject to six years in prison, was made a capital crime. By 1799 the currency was completely worthless. If even the threat of death could not prop up the Assignat, does anyone believe that the currency could have been saved if Robespierre had forcefully mouthed a “strong Assignat policy” as President Bush is now doing with the dollar? Rather than repeating the mistakes of history we should learn from them. Our own failed experiment with the Continental currency as well as the Great Depression should prove conclusively that it is Austrian, and not French, economics we should be following."

Hardly surprising those you've been talking to are a little more aware!

That is shocking. I just don't get why journos keep accepting these soft-landing platitudes from politicians, it just can't end well.

The consensus seems to be that mining shares are lagging on the way up, but presumably they won't lag on the way down. I'd like to invest some more money this Summer and am thinking about the mining shares rather than Bullion this year. Do you think the shares in the mining companies will take an immediate hit if Gold does retrace sharply to 850 or so?

Goldseek has it at 999.20 didn't realise there was so much variance between sites.

Silver shooting up too, $20.63 now.

Agreed, this is a much better site. Just thought a lot of HPC refugees would find their apparent U-turn amusing.

No wonder they have reopened it, wonder if they'll be moving it back to the main page or whether a new one will be "tolerated": http://www.housepricecrash.co.uk/forum/ind...showtopic=70455

Much appreciated.

Could it be Bloomberg evaluation of firmness in the dollar is misplaced:

Apologies for continuing this completely off-topic discussion for anyone not interested. Could you post a link to this uber filtration system, please? Also do you know if simply boiling water removes/destroys oestrogen and synthetic hormones from drinking water?

"Gold falls on firmer dlr, platinum at 1-mth low" http://www.reuters.com/article/hotStocksNe...684266120080310 Does firmer have an alternative definition from the colloquial usage?

Not really a dollar gold standard as they devalued it substantially to try and re-inflate. So in that situation they did try monetary inflation (around 30% I think) to head off debt deflation with only limited success. Clearly the UK will throw taxpayers money at the most undeserving of financial institutions. The real question is will the US? I rather think if they were, they would have found a way of covertly funding the monolines via some complex multi-party bailout. Like I said, I'm not really disagreeing with the inflationary outcome opinion on the thread, just with the level of assumed certainty. All my money is already in PMs for protection from inflation, the safety aspect is nice too (supposing the banks are allowed to fail).

CBs didn't avoid it in US 1929, nor in 1990 Japan. While I think you're probably right about a hyperinflationary ending to dollar hegemony, it's not a done deal. Bernanke admits now that he expects banks are going to fail. If they just let them go down en-masse there would be massive deflationary pressure, don't you think?