romans holiday

That may be because not all gold bulls buy into the hyper-inflation paradigm Steve. There really is more than just one or two paradigms/ interpretations about.

On the US housing market, but a good read nevertheless. http://news.goldseek.com/RickAckerman/1284704553.php

A call to arms and revolution?

The Wall Street Journal The 10 Biggest Myths About Gold http://online.wsj.com/article/SB1000142405...0661947896.html ....... Check out the cool graphic on the "bubble meter" [you can click on each asset class at the top]. Not that I think gold can get in a bubble....

I think all agree that silver is more speculative than gold. I think near all first have a core position in gold, and then a position in silver [not sure about gf though ]. The particular weighting you chose, would then just come down to individual preferences.... I'm more overweight gold because I lean more to the "deflationary" risk averse side of things.

And maybe you could give it a little more thought? What I'm saying is some might question this rise in gold against the US dollar, because it is not being "confirmed" in new highs against currencies such as Pound and Euro. But when you consider the previous gold highs in Pound are Euro were a result of the "Euro crisis", then those highs were reflecting a relative weakening of those currencies at that time against such currencies as dollar, Yen and gold. Subsequently those currencies recovered [and didn't collapse as many were worried about]. This is why that even though the gold price in Pound and Euro is high, it is not at its all time highs.... yet. It shouldn't take long for gold to take out new highs in both Pound and Euro also.... and Kiwi and Aussie, perhaps at a later date on a renewal of the crisis. This is why the price for investors to watch is the US dollar one. Other prices are much less relevant. Chill.

"Gold hasn't broken out to new highs in Euro and Pound." But consider that the highs we saw in Euro and Pound a while back were the result of those currencies weakening drastically against the dollar [and gold] at the time during the "Euro crisis". The highs were really just registering temporary currency weakness. Gold still hasn't reached previous highs in Aussie and Kiwi, which were once again just currency weakness.... as capital moved from the periphery to the centre. Accordingly, the US dollar price is the one to watch, which looks to be a steady rise here and not overdone.

Forget about gold being a bubble, or just the preserve of gold bugs. Gold is being rehabilitated and going mainstream. Gold may seem expensive to buy now, but what one is effectively doing is swapping a weakening currency for a strengthening one. Gold gains as central banks stock up http://www.ft.com/cms/s/0/f99f518a-c025-11...html?ftcamp=rss

Make or break time.

Surely, it has to come down to what your percentages are. If you are sitting on mostly silver, then it makes sense to swap some of that for gold. I think even the most fervent silver bulls have something like near half their bullion in gold.... not sure about goldfinger though.

Not sure. We're now into the season which is generally a one good for gold... and not so great for equity markets. Maybe some big players positioning themselves..... maybe O'Brien just got back in.

Might still see that yet.... early days. Not that I have ever traded out of my core position in bullion of course.

Who knows. Gold will probably do the most unpredictable thing in the near term. It could revisit 3 digits, but it becomes more unlikely with the passage of time. In the long term it should continue to steadily strengthen. Personally, I don't see a parabolic break to the upside, just a continuation of a steady strengthening against the world's reserve currency...... unless we get deleveraging round 2 for some temporary excitement.

Beat ya! $20 odd rise.....biggest one day rise in 4 months.

1265.... All time record I believe. No rockets necessary.

Pixel8r is a perma-bull. This isn't really a criticism as if you'd bought gold anywhere along the way in the past few years you'd have done well. But this perma-bullishness can give rise to a mixed bag when it comes to calling the market [the below chart from April]. Hey gf, I notice neither of these charts are logarithmic..... http://www.greenenergyinvestors.com/index....st&p=161369

Exter's pyramid is a useful place to start, but I don't consider myself restricted to it. I've often mentioned the need to "internationalize" the pyramid to include minor and major currencies, where major ones are likely to stengthen at the expense of minor ones. When the drive towards liquidity renews itself, capital will move from the overheating economies on the periphery to the funding/ reserve currencies at the centre... dollar and Yen spike. I see "ender" also comments on a strong dollar, but I'm not sure if I understand his reasons: In what way can the strongest currency not buy you what you want? My take on this is the US economy, will be crucified on a strong dollar [perhaps a form of natural justice here] in much the way Japan is, but possibly worse. Most will be paying off debt [the burden of which will increase] while those few that have dollars will hoard them. So it will not be the case that people will not buy what they want... they just will not want to buy, and will prefer instead the "liquidity preference". This is all bad news for the surplus exporting countires because demand destruction in developed economies will erode/ destroy their markets. Yes, I think the dollar will stay relatively strong against gold... as has been the case over the past few years. Gold hasn't exploded to the upside, nor crashed. Instead just an incremental and steady rise aginst the dollar. Putting gold at the centre, which has become central to these kinds of discussions lately, entails that the prices of assets and rates of currencies deflate against the dollar, which in turn deflates against gold. This is a hyper-deflation against gold, as currencies themselves are caught in the vortex of an erosion in monetary value. The pyramid frames this nicely. When capital runs from risk and into the perceived safety of dollar, Yen and gold, all of this will lead to economic carnage and depression. From an economic perspective, dollar and gold will be like black holes sucking up all the capital that should be fuelling productive investments and employment. After being neglected so long, the "store of value" function of money will take its revenge and wreak havoc. What worked so well, in a period of expansion, for the economy in a free-market credit-based fiat monetary system will only work detrimentally in a period of contraction. This is why CBs rightly fear delation so much. And here I agree with you that something will be done about the dollar in the not too distant future. Assuming that deflation will run its course, the only way out of economic implosion is for the CBs to throw free-market fundamentalism overboard. They will have to acknowledge that the US-centric fiat/ credit money system has failed, and institute a new system at the international level. Instituting a new system will enable them to devalue the existing dollar relative to surplus currencies/ creditor countries [this is what is most important] by going back to a gold standard. This might just involve the market price of gold capped at some point,at a time when capital is increasingly pouring into it. The price could be 2000/ 3000 but the nominal price is quite irrelevant here [a fixation on numbers is only money illusion]. What is more relevant is the level at which other currencies are fixed/ priced to gold and rebalanced against each-other. By doing so, this new truly international system will involve a haircut on creditor country reserves, but this will be wearable as the bulk of those reserves will be guaranteed, and global trade will be restored on an even keel. As for FreeGold, which, if I understand correctly it involves gold being free of both supposed manipulation and institutionalization, my money is on the re-institutionalization of gold... gold and government. I doubt economists will willingly/ rationally go back on gold. Governments may instead be forced to at which point economists may be out of a job. Gold will be all about providing stability and a solid basis for trade. A combination of going back on gold, revaluing currencies, a stabilization of asset prices at lower levels, defaulting on some debt, haircuts all round, the rebuilding of exports, and a lowered standard of living might see developed countries muddle through.

I just read a mainstream report by the Bank of New Zealand on the NZ property market. Very sensible stuff calling for a "long slog to property sensibility". The advice given was to offer your own valuation based on fundamentals; offer the pre-bubble price, which in NZ's case is something like the 2003 price [perhaps a "cap" you wouldn't go above while going for lower]. Of course, markets always over-correct, but I thought it was interesting to see this coming from such a mainstream source.

Gold Recovers From Biggest Drop Since July After Bangladesh IMF Purchase http://www.bloomberg.com/news/2010-09-10/g...f-purchase.html

There are all sorts of risks in life. Why not spread the risk by spreading your bullion holding about; a bit at home, a bit in the vault, a bit with an allocated internet bank or two... even perhaps a little bit with [shock/ horror] an unallocated account [for convenience, or to suit your purposes]. Society is built on [at least a modicum] of trust. Gold is tested by a touchstone, and men by gold. Some ancient philosopher.

Sure, there's always goldmoney besides bullionvault. There's a lot of information on silver on the silver thread, where I'm sure the silver specialists can answer any questions you have.

Possible but unlikely. More likely is 1300 in the next month or so, before consolidating to 1250 or so, before going back to 1300 odd....

The way I see it nothing has been resolved between surplus/ deficit economies... creditor/ debtor countries. All we see at present is a stimulus backed restoration of the old status quo. The imbalances will only build until we get an even worse crisis. There needs to be a structural solution to the problem.... a rebalancing of trade by rebalancing currencies imo. Thanks to the current currency system, the global economy can remain irrational longer than countries can remain solvent. Definition of hyper-inflation: pg 42, when money dies.

I think it has to do with both. Germany's exports are helped by a depreciated Euro. Chinese exports are helped by a credit boom. Do you think these exporting booms are sustainable given that they are only furthering the current imbalances in the global economy?

Well, I did provide an explanatory link. The theory we buy into determines what we see and how we interpret the world. I don't much like using the word "paradigm" as it's meaning has been blurred [hence the "interrogation" quotes]. I notice it's Jim Puplava's favorite word, yet he misuses it; a "paradigm shift" can not happen in the world, or in the economy... it's an intellectual event that happens in minds. Incommensurability... is an essential concept, and a favorite one of mine. imo it is due to the incommensurability of concepts and definitions that the conventional inflation/ deflation debate goes nowhere.