alexreeve

European signatories sell 2.7 tonnes of gold last week

Is this substantial enough to have triggered last weeks drop?

The amount of ignorance & half-knowledge on HPC is sometimes amazing. When I started to store gold with BV, I read through basically ALL documentation. I came to the conclusion that for a private investor it is one of the best ways to store larger amounts bullion.

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 am just telling you how I read the bond market right now at 50Y lows for short term treasuries. The bond market is not expecting the Fed to do this, otherwise they would be pricing in more inflation, but they aren't. Now, the bond market could reverse. I agree that according to the Fed deflation is not an option, however, they may come a point when the Fed loses control and it doesn't matter what they want anymore.

 

Remember, Bernanke wrote his thesis on the Great Depression, and you have to wonder why he was picked for the job, and that he may be guiding us into a depression softly.

 

Either way, Gold will not default, so it is really your only method of storing wealth (apart from cash under the mattress of course) which could be futile if they do decide to switch to the amero or euro. It is no coincidence that the dollar and pound are both performing the worst out of all currencies in the industrialized world, and both are heavily rumored to switch to other monetary bases.

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.

As I said yesterday keep an eye on US short term treasuries, they are at a 50Y low. The bond market doesn't believe any more inflation is possible and Ben is fighting a losing battle. Look for the dow to go down below 12K today as confirmation. Look for short term treasury yields to start increasing before buying any more gold or silver. As usual do your own due diligence.

 

Job claims rose again today. For more inflation and ultimately hyperinflation we are going to have to start seeing wage inflation. Without wage inflation we are ultimately going to see deflation, recession, and if the banks start to keel over a depression.

 

Remember Gold and Silver do very well in a depression - as it is the ultimate store of wealth that can't default.

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.

That thread is unbeleivable, folks if you want to gage what the dumb people of today think of gold, just read that thread, everyone licking each others arses shouting defaltion, gold metdown, crash, yipee, we are right HAAAAA, blah blah blah. If they're not in why such excitement?

 

These people actually believe a 2 day correction is the sign of an end to an 8 year boom, even thoguh the fundamentals are still in tact and no catalysts has been stated.

 

I think I will bookmark that thread and refer to it several times on their site when gold continues to shine and eventually wins as the ultimtae store of value and the only true currency. In fact as I am buying at the moment i might post that I am buying and refer to that specific post also - then agaion maybe not, i don;t actually think I can be bottherd to even type the url into my browser or click on any links to it.

 

The site has degenrated into a crazed frenzy of single minded neanderthals, the worst mistake they could possibly have made was to lose their gold posters at HPC as we were making a counter argument and discussion ro rheir deluded deflation/gold meltdown/slight recession/ sheeple thoughts, now they just pat each other on the back and tell each other how great they are for realising deflation is an axiom and gold was/is in a bubble. Crazy. I'm so glad the gold thread is dead there, that site doesn't deserve one, I say let them fail in their ignorance.

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?

GBP will shortly bounce and the yellow shiny stuff I can't mention is just about to be hammered.

 

Accept the gift and get your place on the lifeboat.

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."

By the way, this morning, one work colleague told me that my view on gold might be right. And he was impressed by how much it had been moving up. Another one asked me how one generally buys gold.

 

This does not happen every day (this kind of response by colleagues). The public is getting more and more aware of what's going on.

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

http://www.telegraph.co.uk/money/main.jhtm.../cnirish111.xml

 

Wait a second! The Irish take out around $10,000 new debt per person per quarter? Oh dear.

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?

I have the high for spot today so far at: $998.50

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

Silver shooting up too, $20.63 now.

Even if they did, does anyone here care any more?

 

The Doc's hospitality as been exemplary and as a bonus, he even contributes in a knowledgeable manner, so why go back to a place where we're not especially welcome and are continuously flamed by the mods in various guises?

 

Furthermore, why go back to a site that has changed beyond all recognition and has very little to say for itself apart from the usual "I hate the world 'cos I can't be bothered to better myself, so I shall just blame everyone else for my woes."

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

And look what happens, hpc.co.uk's Alexa ranking has fallen to 52,356 from around 30,000 since the gold thread's removal. That's nearly 20k places off the 3 month moving average!

 

With mods like that who needs trolls?

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:

I have researched this subject to death about a year ago and came to conclusion that a six stage filtration system with reverse osmosis filter was the way to go. When I bought my system the rep from the shop said this unnecessary and over the top, he also said that he would have to special order it for me, which he did. He now stocks the system as standard as the demand has increased. Reverse osmosis removes all minerals so you should take a daily vitamin/mineral table, which I do when I can remember to. I don't know how the ceramic/carbon filers are able to remove more that the RO filter, I've never heard that before, so I will have to check on it.

 

As for protecting the environment - please excuse me while I fall of my chair laughing. Are they going to ban the masses from their annual pilgrimage to Malaga in search of booze and sun in order to save the planet? It is all spin and lies, and a few quid to protect your family from forced medication is money well spent.

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?

I think they won't let the big boys go down. I agree, any real bank failure with lost deposits is real monetary deflation. But I think they will only allow a few small ones to go against the wall. Imagine Citi going bust with no bailout whatsoever. I don't think it will happen, but if so, gold would go to the moon since the only safe place for your money (if even Citi can go bust, and Treasuries only ever pay negative interest).

 

The US 1929 and Japan in 1990 are very different cases. Both where creditor nations at the time. And in 1929 you had the gold standard as well.

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).

He fails to understand that central banks are there to avoid a deflationary slump, and that is exactly what they're doing now. They are cautious, because they know it will cause (hyper-)inflation, but political pressure will be too much to withstand.

 

RK will be wiped out. But then, someone has to. And he is shorting the greatest bull market of this century (gold & PMs) against better knowledge. If anyone, he deserves it.

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?