Perishabull

Giant bullflag?

It was certainly an excellent entry point. And where do you reckon the Dollar Index / Gold would be trading at with Silver at $100?

GOING

Report from the "Chatham House Gold Taskforce" on gold and the international monetary system - http://www.chathamho...s/r0212gold.pdf Excerpts; "Gold's use to back the value of the dollar would be impractical and there is little scope for the metal to play a more formal role in the international monetary system, the U.K.'s influential research institute Chatham House or the Royal Institute of International Affairs has said. While a higher gold price may reflect a lack of confidence in key currencies and low returns on other assets, there's no consistent correlation between bullion and economic variables that could be used to inform policy decision making, according to a task force that discussed possible roles for gold. The metal can be used to hedge against currency devaluation and other risks as part of a portfolio, but not on its own, it said. "Reintroducing gold as an anchor would undoubtedly be impractical or even damaging, given bullion's deflationary bias," the task force, which held discussions over eight months, said in a report today. "Gold can serve as a hedge against declining values of key fiat currencies, and can also be useful for central banks looking to diversify their foreign reserves." While the gold standard may no longer exist, nations and international organizations still have 30,877 metric tons of bullion reserves, valued at about $1.77 trillion. The dollar has been the world's reserve currency since the U.S. and allies agreed at the 1944 Bretton Woods conference to peg it to a rate of $35 per ounce of gold. It remained the most- traded legal tender after global currencies began freely floating in the early 1970s. The greenback dropped 12 percent against a basket of six major currencies since March 2009. The U.K. suspended the gold standard in 1931, Chatham House said. "Greater discipline on financial markets might have been helpful in inhibiting the reckless banking and excessive debt accumulation of the past decade," the task force said. "However, with the onset of the global crisis, had gold had a more formal role to play, the rigidity it imposes might also have been a handicap when a more flexible policy response was required." Including gold in the International Monetary Fund's Special Drawing Rights system probably wouldn't bring substantial benefits, and adding developing economies' currencies to the basket would be more desirable, according to the task force. SDRs were created in 1969 and are an artificial currency that IMF members use to settle accounts with each other and can be converted into hard currencies. Chatham House was founded in 1920 and is based in London. Members of the gold task force include Gerard Lyons, chief economist at Standard Chartered Plc, Meghnad Desai, professor emeritus of the London School of Economics and a member of Britain's House of Lords, and Catherine Schenk, a professor of international economic history at the University of Glasgow. "For gold to play a more formal role in the international monetary system, it would be imperative for it neither to hamper the system's performance nor to create unacceptable constraints on national economic policies," the task force said. "

I dont understand why Goldfinger decided to leave the site just because Bubb decided it was time for a change in moderators. Seems a bit curious... Did I miss something?

Hmmm, it's about time for another CME hike methinks

How can you frame it as being so when the conclusion hasn't yet been reached? Perhaps the angels are a freudian slip as opposed to a calculated manipulation. The suit argument has always been pure nonsense since there are many orders of magnitude between a cheap "good" suit and an expensive one, since one's value judgement is likely to be referenced by his financial disposition and the perception of what constitutes a "good" suit is likely to be highly variable.

It won't. Never is a long time. A more up to date chart from ycharts.com;

Kudos to you Roman, your timing there was very good. That'll look very impressive if silver gets back up to (and perhaps beyond) it's high.

Does anyone see that if Ron Paul starts to motor in the US electoral process that Gold could start an altogether new upleg as a result? We already know how quickly ideas spread on the Internet.

~ PositiveDeviant's tip for the day ~ Looking for a new broker? DO NOT CHOOSE ETRADE I bought a chunk of GDXJ today, I actually only intended to buy calls (however no options other than for 2014 (!) were available to trade on their platform).

The emotions of silver bulls and North Koreans are correlating 1 to 1 right now. [/YouTube] Surely this must be the low.

I edited my previous post (and deleted the chart) replacing it with something that explains it better. AGQ in black against SLV in blue from August 2010 onwards;

Could be some astute timing there, I think with those levered ETFs it really needs to be. Are there not issues with holding 2X levered ETFs like this over time? (in terms of rebalancing required, lag, futures rollover etc) Found this, you may want to check it out (if you are not already aware of these issues) The Case Against Leveraged ETFs

Well I'm not a fan of the Euro. The Euro and Silver are quite closely correlated; Euro in green It could be some time... This next chart is from www.sentimentrader.com According to this chart (updated yesterday) sentiment hasn't been lower in the last 5 years however as the reading is a % it's worth noting the scale is only currently showing 30% - 90%.

Silver futures - February 2011 to present; Bix Weir's $6000 silver call looks even more ridiculous today, never mind at the top, if we take another excursion to the downside how long are the "Silver Liberation Army" going to wait for $50 again? Have we seen a 31 year double top in Silver?

GDXJ GDXJ getting completely smoked. It hasn't been this low since mid-May 2010. Has anyone considered the "Ron Paul bid" on gold? If he gets Iowa and continues to increase in the polls it could encourage many to flock to gold en masse.

Here here I'm no expert on reading people but my intuition struggles to see Wilcock, Fulford and Icke as credible figures.

During a hyperinflation, the "Dassafe" security guard may struggle somewhat to fend off the people armed with guns with his baton. Needless to say, those who locked away some of their wealth in an "anonymous" safe with a large sign outside the building saying DASSAFE may prove to regret it later on. If I were looking to pay someone else to look after it I would be looking for an anonymous safe along with an anonymous safe company. It never ceases to amaze me that people will do something sensible to protect their wealth but broadcast the location of it on a public forum. If you don't hold it, you don't own it.