romans holiday

The PPT are my new best invisible friends. Without them I could not afford to buy gold. I expect once the speculative money moves from oil to gold and the monetary function of gold is rediscovered by Joe Public, the PPT will be powerless to suppress it any further. Yet, this all may take some time to work out. The more the better in my book.

Last week at powerswitch.org.uk somebody (an STR) asked about GoldMoney. Most of the answers concerned gold (not GoldMoney specifically).

 

Here's the thread:

http://www.powerswitch.org.uk/forum/viewto...&highlight=

 

Most were against gold, some vehemently so. One is moderately positive and knows something of the subject. (I haven't posted in that thread, by the way.)

 

That is a peak oil site. So, not exactly Joe Public and I know that plenty of American peak oilers favour gold and silver at least to some extent. Joe Public is still pretty well oblivious to gold IMO.

Reading that thread, I suspect those critical of gold are naive about fiat money. I think gold only really begins to grab a person's imagination once they have "seen through" paper money.

Gold May Benefit as Oil Falls

http://online.wsj.com/article/SB1216585054...=googlenews_wsj

I wonder if we are at the stage where we will see a lot of speculative money move from oil to gold.

The thing that hath been, it is that which shall be; and that which is done is that which shall be done; and there is no new thing under the sun.

 

http://www.gold-eagle.com/editorials_01/judge052101.html.

At today's prices, a similar move of just 2300% would price gold at a staggering $6,400 per oz.

Obviously this has been written at an earlier time. Of interest is that this price of $6,400 no longer seems staggering. Considering the continued debasement of the dollar, I am not in the least impressed.

This is interesting:

 

US Government to Intervene to Prevent US Dollar Collapse

http://www.marketoracle.co.uk/Article5500.html

They can't just stand idly by and watch all this happen without a fight," O'Neill added.

Like the subtle understatement of interesting there Steve. Great article.

Yes, I thought it would not all be so easy. I have always thought the dollar would not give up without a fight.

Thankfully, it will help me top up my position.

Somewhere between $910 and $920 would be the next major support. Personally I think if it dips below $950 (or $947) it's more likely to be a bear trap than an extended correction. But don't bet your life on it.

I'd bet the ranch if it went to $910.

Peter Schiff is good on the "blank cheque" tonight.

http://www.europac.net/radioshow_archives.asp

They sure did call it well, but I hope you don't if I remind you that they weren't the only ones. I, for example, predicted the knowckdown would take us to a 950-960 floor 2 days ago, as well as stating a 975+ finish for Tuesday

So you did! Sorry not to acknowledge. Actually to be honest, I think I may be suffering from gold fever these days. I do not pay much attention to the daily fluctuations [though I do like to follow the commentary on them here]. I must be a hopeless case because I just want to buy as soon as I can... whatever the digits say.

What am I doing for my two month holiday you may ask. Panning for gold in New Zealand.

I reckon they can be thanked for providing investors with a basketcase list of financials.

This is all playing out like an episode of keystone cops. Now we have treasury officials flippantly talking about providing a blank cheque to bolster confidence in the banking institutions.

I am starting to think these guys are living in Disneyland. They have no idea of what money means.

[Thinking of Disneyland, the reason it is there is so Americans can say THAT is fantasy land, and then be able to deny they are themselves living in a fantasy.]

[Apologies to Americans for the generalization.]

Hypocrites.

Remember:

 

http://www.businessweek.com/bwdaily/dnflas...060523_2210.htm

Intelligence Czar Can Waive SEC Rules

MAY 23, 2006

 

Now, the White House's top spymaster can cite national security to exempt businesses from reporting requirements

 

President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye.

And now they are calling for transparency for all the short sellers.

$955, I'm starting to buy again. I'll add more longs on further weakness. Hoping to see a sell-off to under $950.

Yep, then more for me.

Sheeesh... Jim called that one well... just over 950 now.

Happy days.... big pay day on Monday..... and never have the patience to wait.

Marceau, you called that well also a few days ago! I like your rational approach but I am just a hopeless out and out gold bug these days.

I was thinking.... since the 80's, there's been a huge shift into stockmarket based investing, which was adopted heavily in America.

 

Everyone has been brought up over the last 30 years or so, that the stockmarket is the best (only?) place to be if you want to stand a chance of making money and keeping ahead of inflation.

 

Here in the UK, financial advisors recommend pension funds to invest in a mix of stocks, bonds and property.

 

People tend to go along with what they're recommended.

 

I wonder what percentage of this whole generation, used to one-way of thinking about investments, would suddenly think of switching into Gold, something that hasn't even been considered as part of a balanced portfolio before?

 

Could take quite a radical shift in Joe Public's way of thinking...

Was thinking the same thing earlier today. Started a thread on it here:

http://www.greenenergyinvestors.com/index.php?showtopic=3719

Why would you restrain yourself?

 

 

 

If this is the case, aren't you at great risk of missing the boat when it does leave port? If you are expecting an imminent, sudden & large price rise but are uncertain of when that will happen, why would you try to time your entry to capture another 1% gain, when you could lose out on multiples of that?

Exactly!

I only buy and hold physical, so what is the point of worrying about pennies. As they say on FSN, the bull market will rescue you every time.

Hope so! I get more powder next week. Will buy at 970 and will TRY to restrain myself if it is higher.

Frankly, I am amazed it is still so low. Think about it.... it was $300- $400 years ago [80's].... when dollars were worth quite a bit more than they are now [not sure of the exact inflation adjusted maths] and we still have gold at a mere 970 in debased 2008 dollars.... amid a rapidly developing banking crisis!

Think of all that pent up energy in gold. All it may take is one more bank run to send investors on mass into gold. The price could explode any day... I am hoping not as like others here, would like to further add to my stash.

Talk about a golden opportunity.

Edit, Gold now back to 980.

Also, reckon that quote is the understatement of this bull market.

Particularly good article by Adrian Ash today.

http://news.goldseek.com/GoldSeek/1216054800.php

"Is that where investors today should hide their wealth, securely and safely? Inflation in prices and deflation in assets is an ugly combination. It also turns the "Long Boom" of the last 25 years on its head. So a growing number of advisors would point you to that long-forgotten asset class – physical gold or perhaps silver – as a rare store of wealth.

It might also help that you can chain down this wealth behind a thick vault door, deep underground.

"There really is no other place to hide," believes Stephen Platt, an analyst at Archer Financial Services. "Gold's about the only real currency out there that might hold value."

Even after trebling in price from the low of eight years ago, there may be plenty of room for gold to rise from here. "In 1959, the amount invested in gold was about one-fifth of the market value of all US common stocks," writes Peter Bernstein in his classic, The Power of Gold. "In 1980, the $1.6 trillion invested in gold exceeded the market value of $1.4 trillion in US stocks."

The sum total of gold investment lags far behind the value of stock and bond markets today. Indeed, a 2005 study from Tocqueville Asset Management noted that, if taken altogether, "the market cap of all above-ground gold – including central bank reserves – [now] equals about 1.4% of global financial assets.

"In 1934 and 1982," on the other hand, "when investor stress reached extreme readings, that percentage was between 20% to 25%." If you wanted to steal a march on the market, you might want to consider moving that portion of your wealth into physical gold today.

No, the metal isn't guaranteed to keep gaining as "investor stress" rises to match the Great Depression or early '80s recession. But nor will its value fly away into the air.

For as long as the cost of living is rising but asset-prices are falling, that should prove a major advantage over holding bonds, stocks or cash."

In August 07 I was 100% invested in Gold and Silver but gradually reduced my positions. I am now thinking of doing the same I will put around half of my money in tomorrow and if there is a decent pullback invest the other half.

I went 100% in a few weeks ago when it first went up to 940ish.... dipped down a little afterwards but did not regret it for a second.

Is anyone going to buy an I-phone?

Loving that graph Steve.

Jim Rogers tells it like it is on Bloomberg.

http://www.bloomberg.com/avp/avp.htm?clipS...IQvD7yNni2I.asf

Yes. And that's what some people don't get.

 

 

 

 

I didn't get any.

 

[cheap money]

Good to see you back again M.

I stocked up on bullion a few weeks ago when it was at $935. It dipped a little but did not bother me as POG threatened to take off anytime. This week served to justify my feeling. I am still wanting to get in for the next few paydays and must say it is nice to see it dipping down into the 950's. Like yourself, I can not see POG at these levels for long.

Next to the POG, I like to keep an eye on the DOW. It will be very interesting to observe how the price of it will pan out. As assets continue to deflate we would expect it to go into a death spiral, yet as monetary inflation kicks in maybe the nominal dollar price may stagnate or even go up [as your post suggests in comparing the 70's DOW].

To me it does not really matter as the dollar will become an irrelevancy. Of more import will be the ratio of the DOW to gold.

Excellent article from Turk

 

http://goldmoney.com/en/commentary.php

Always appreciate anything Turk writes. I thought his interview was especially good on financialsense a couple of weeks ago.

I wonder if the bankers are suffering from vertigo yet?

It is funny you mention a dream. Mine was about silver [i only have gold]... it was taking off and I had that dreaded feeling of being left behind.

Dreams a.

After a bank run, where customers withdrew 1.3 billion dollars in the past 11 days, Californian mortgage bank Indymac has collapsed. The second largest institution to fail in US history.

http://news.bbc.co.uk/2/hi/business/7503109.stm

"Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission

Treasury Secretary Henry Paulson

Q&A: Freddie Mac and Fannie Mae

It is the fifth US financial institution this year to succumb amid a credit crunch, falling house prices and rising foreclosures.

The move came after rollercoaster trading on Friday for Freddie Mac and Fannie Mae - which are behind half of all US mortgages.

They play an important role in the financial markets in providing funding for home loans by buying up mortgages and packaging them as investments.

As mortgage backers, the companies have had to pay out when homeowners have defaulted on their loans.

Both firms defended their finances, saying they had enough capital to weather the housing slump. "

Of deflationary significance, Indymac was unable to borrow further funds itself.

The commentators on CNBC seem to be getting more jittery, almost panicky, with each passing week. The latest news on the giant US mortgage providers Fannie and Freddie are playing havoc with the markets. The video mentions they are practically insolvent with less than 2 cents in the dollar to cover their commitments, with the further point that if the Fed rids to the rescue, it could destroy any credibility they may have left.

I can see a lot of investors piling into gold soon.

http://www.cnbc.com/id/15840232?video=791559797&play=1

http://www.cnbc.com/id/15840232?video=791551896&play=1

http://www.cnbc.com/id/15840232?video=791558399&play=1

http://www.cnbc.com/id/15840232?video=791513375&play=1

The last one; Freddie and Fannie are 80% of the market.