Fortune

There is a lot going for gold at the moment and we're still in the steeper uptrent (just)- also there are big buyers out there at around 1050-

 

Does this chart mean anything at all?? Do any charts mean anything at all-

Looks reasonable to me. For me, the major supports are 1080, 1033, 1000 and 950. The key weekly Fibonacci 38% retracement come in at 1019 (near the previous March 2008 high). That the number to watch. Anything above that and there's nothing really to sweat about. Of course, take everything I say with a pinch of salt.

EDIT: spelling

According to Jim Willie a a gold bullion bank run is currently in progress -

 

FW: contact with strong ties to info sources

 

huge demands for physical gold are coming from entities holding allocated gold accounts

they have deposits at gold bullion banks

they are showing up unannounced, with full paperwork, demanding gold to be handed over paperwork consists of lists, bars, dates, serial numbers, weights, and smelter hallmark brands

this is a full blown run on the bullion banks

it is unclear whether they only doubt their gold remains in possession, or if fake gold is held

they are being shown the stacks of shiny pretty gold bars, and urged not to take possession but the entities are not convinced their particular own gold bars are there

big clearing houses are owed gold bullion, and the bullion banks do not have it

at the same time, the delivery process has been corrupted big

cash bribes are being offered in bids to settle in cash without delivery in futures contracts in fact, the cash bribes are patterned in a reduction over consecutive days

this gives the impression of the extraordinary period being only a brief segment of time

this is a full blown run on the bullion banks

we are fast entering the FRAMEWORK of divergence between paper gold and physical gold

my source confirmed that the divergence is an end game symptom

geez! we might see a $970 gold price before the system just shuts down

this is a run on the gold banks

did I mention this is a run on the gold banks ??

soon we might not have any prices listed on the gold exchanges

soon we might hear of an important default, from a party using courts and legal staffs

soon the physical gold price will be some average of five known private party large volume traders

this is a run on the gold banks

/ jim

 

 

UPDATE

 

Another interesting bit from Jim Willie:

"Before leaving the gold and silver front, I have been told by a reliable source, and this has yet to be confirmed that. the Indian gold purchase has turned out to tungsten filled

This is now just a rumour. I have emailed Rob Kirby and asked if he can confirm the story.

 

However, Jim Willie has reported to us that all allocated gold everywhere is being audited and proof of quality and weight of the bars are being analyzed as we speak.The bullion banks are resisting owners from taking possession of their bars. We will follow up on this story and on the Indian story as to whether its gold is tungsten or not.

 

Here is his alert to us:"

Things are really coing to a head now. No wonder the Chinese didn't go for the IMF gold. Those smart folks are already one step ahead. I wonder how GM and BV will discover price with no COMEX? Ebay perhaps?

Could this be the reason? Some geo-political jiggery-pokery?

Are U.S. and China Together on Gold?

 

While many precious metals bulls have been insisting for months that China is gold and silver's greatest ally, we saw first-hand last week exactly how capable the Chinese are of pulling a rabbit out of a hat when need be. Much of the finger wagging for the recent decline in the price of gold - as usual - has been directed towards those dastardly Americans. This time around, the gold bull's disdain had to do with the recent US jobs report on December 4. Yes, the numbers - which are unquestionably fabricated - had an impact on the precious metal markets; nevertheless, those gold bulls who insist upon using the adage of "see no evil, hear no evil, speak no evil," where China is concerned are fooling themselves and living in a sugar-coated dream world.

 

A full two days ahead of the jobs report, Chinese officials called gold's recent surge a "speculative frenzy." Yet, it is the jobs data that bears the brunt of the blame for gold's pullback. China had nothing whatsoever to do with this? Since when did they become our friend? Furthermore, how do we know the U.S. and China didn't act in unison here? A little of the "I'll-scratch-your back, you-scratch-mine," thing between old friends...

 

http://news.goldseek.com/RickAckerman/1261033260.php

How many banks? 2 CB's so far. Oviously he has no credibilty when he is idol worshipping his pay masters the US. They will try thier hardest to stop anyone thinking of amending the current economical powers in place.

 

For this exact reason I made my own rebellion against anything is given, issued or otherwise contracted from any bank, etc. They are the number 1 reason for all the problems caused in the world. They helped and facilitated this mania in housing, wars, enviroment etc.

 

Take every single penny that you might own and invest it in honest money just like I did and many others in 2005. STR'd in late 2005 and all 100% of proceeds went into phyical gold and never looked back since.

 

These banks out of thin air produce the same amount of money you, your wife, family, grandfathers back to adam have ever earned in 1 second. In a stroke of a keyboard the deal is done. How evil is that?

 

Hell with banks and the money they produce. This is the least I can do to prove to them that I never cared when I converted everything into honest money.

 

I was probably the main reason of causing the credit crunch when I took all my money out of the system so that this same bank did not lend it to someone or the company that I just got the sack from Muhahahahahaaha and caused this domino effect. Hmmmm it took 2 years to materalise

 

 

Get used to my spelling mistakes. I do not care.

Here here! Welcome to GEI club. Did the same thing myself (except for the STR). Great call there. I bought my first ounce in Sep 2007.

On behalf of Sir fitkid, the linky is

 

http://www.bloomberg.com/apps/news?pid=206...id=ag2cRG2_O1Jk

Cheers.

Bank of Korea sees 'illusion' in gold, no cash return

 

The Bank of Korea, diversifying foreign-exchange reserves away from a falling dollar, said that additional gold holdings aren't attractive as most other central banks aren't buying and the metal offers no cash returns.

"There's an illusion in gold," Lee Eung-baek, head of the bank's reserve-management department, said in an interview. "We follow the big trend. Gold isn't the trend. Out of more than 200 nations, how many countries have bought bullion?"

 

Gold surged to a record this month after central banks including India added more of the metal to reserves, while funds and individuals boosted purchases to protect their wealth against the weaker dollar and potential increase in inflation.

 

"Holding gold as part of reserves makes sense in terms of diversification, but I don't think many central banks want to balloon their holdings with it," said Jerry Yoshikoshi, a senior economist with Sumitomo Mitsui Banking Corp.

 

Gold for immediate delivery, on course for a ninth annual gain, touched an all-time high of $1,226.56 an ounce on Dec. 3, and has gained 32 percent this year as the dollar has dropped 6.9 percent against a basket of six currencies.

 

 

Korea's reserves -- the world's sixth-largest after China, Japan, Russia, Taiwan and India -- rose to a record $270.9 billion in November as the central bank intervened in the foreign-exchange market. Central banks intervene by arranging purchases or sales of foreign exchange.

 

"Like other central banks, we have been increasing the types of currencies consisting of the reserves outside the dollar," Lee said by phone, without identifying the currencies. Gold "offers little value, with ?o cash returns," he said.

 

The Asian nation holds 14.4 metric tons of gold, equivalent to 0.03 percent of total reserves, according to figures from the Bank of Korea. That compares with the average of 10.2 percent held by central banks worldwide, according to data from INTL Commodities DMCC in October.

 

The dollar has weakened this year as the Federal Reserve kept benchmark interest rates near zero percent since December 2008 to revive lending after the worst financial crisis since World War II. Record U.S. government borrowing has also driven investor concern that the currency may be debased.

 

"Since India and Russia with large reserves bought gold, there's speculation that Korea might buy it too," Lee said. "But we are not classified in the same category. There's a slim chance that we will buy gold" from the IMF, he said.

 

Since the end of September, India, Mauritius and Sri Lanka bought more than half of the 403.3 tons of gold that the International Monetary Fund plans to sell to bolster its balance sheet. Bank Rossii, Russia's central bank, also increased its gold holdings by 2.6 percent in October.

 

"The volatility on gold is too big," Lee said. "And once gold is purchased, it's just kept in a safe and is not put up for sale even if prices rise."

 

Many central banks "remember bullion's ultra-bearish trend in the nineties," Sumitomo Mitsui's Yoshikoshi said. Gold tumbled as low as $251.95 an ounce during the decade, in August 1999. "The recent rally is, for me, too much in an environment where aggravated inflation is hardly expected in the coming years," he said.

 

Korea has reduced its holdings of Treasuries to $38.8 billion at the end of September from as high as $72.8 billion in February 2006, according to U.S. Department of Treasury data. This year, its holdings climbed $7.5 billion as the nation's reserves increased.(Bloomberg)

Interesting. Fitkid have you got a link to that? I want to sent it to someone....

Capital Gains question about gold held with GM or BV.

 

Dont know if this has been discussed before, but can CGT be avoided when selling GM or BV holdings by selling and leaving the proceeds there in the pot and only withdrawing it to the nominated bank account at maximum CGT allowance each year? Thanks.

Why not just sell it in bits? Unless you need to sell it in one go, in which case I'm afraid you are going to have to take the hit. I think perhaps the only way is to cash out your proceeds outside the UK, with the intention of bringing it back in small amounts every year. That doesn't take into account where you should acutally leave your money. These days governments around the world are getting seriously nazi with tax avoiders. If you fancy taking your chances - like trying to get 'cute' with the tax man in the UK - then good luck to you. I'm in the fortunate position of have permanent residency in an Asian country so I can move my proceeds here relatively hassle-free - which they would welcome with open arms (dunno about getting it out though!). And I also have no intention of transferring my wealth back to the UK, so the UK tax man can get stuffed. Hope this helps.

For anyone that is interested the piece on Gold was on the One Show last night between 04.18 - 07.14 mins

 

http://www.bbc.co.uk/iplayer/episode/b00p3...how_25_11_2009/

 

Adrian Ash from BullionVault interviewed

 

Lou

Could some youtube this or upload to rapidshare? I'm not in the UK and I can't be bothered to muck around with proxy servers. Much obliged to the techies out there.

It was JP Morgan and Deutsche Bank who were counterparties on the gold trade were they weren't able to produce the metals to settle a short trade. The Bank of England had to rush to aid of the banksters. Of course the bullion the Bank of England produced was shoddy and not to the standards of the LBMA (what a surprise), so a 25% premium was offered over spot to settle in paper money. You see, they can keep playing the fools gold game as long as you stay in the paper system. As soon you demand settlement in metals the rats go scurrying for cover.

 

Sooner or later there is going to be a "failed to deliver" and then we shall see who is really swimming with no trunks on.

Yes they can also short enlessly with inpunity - what does it matter to them, its only fiat they can print up at their choosing. Thompson said something along the lines of the banksters win either way: accumulate metals on the way down and short on the way up. Pure evil, if you ask me.

Pixel8r,

You mentioned earlier about the shorts having to push down PMs before the options expiry date (early next week). What is their target price (as in what price must they defend at all costs)? Is it $1150 or something? If the price closes above that before the weekend, are they then toast?

Thrust is Go, all engines. It's looking good.

Here we go...

Not exactly on topic but this one cracks me up!

White House Aims to Cut Deficit With TARP Cash

 

WASHINGTON -- The Obama administration, under pressure to show it is serious about tackling the budget deficit, is seizing on an unusual target to showcase fiscal responsibility: the $700 billion financial rescue.

 

The administration wants to keep some of the unspent funds available for emergencies, but is considering setting aside a chunk for debt reduction, according to people familiar with the matter. It is also expected to lower the projected long-term cost of the program -- the amount it expects to lose -- to as little as $200 billion from $341 billion estimated in August.

 

A $210 billion surplus in TARP funding could be used to reduced the U.S.'s towering national deficit. WSJ's Deborah Solomon says the move follows criticism of the Obama administration's approach to debt. The idea is still a matter of debate within the administration and it is unclear how much impact it would have on the nation's mounting deficit levels. Still, the potential move illustrates how the Obama administration is trying to find any way it can to bring down the deficit, which is turning into a political as well as an economic liability.

WSJ

I am starting to notice a spooky correlation between 'tension' on GEI and subsequent POG increase - I may have to start using it as a guide.

Me too. Gold in GBP looks a bit sheepish in comparison. Cup and handle anyone?

I doubt it they went bust a while back.

 

http://www.mfi.co.uk/

News to me. Well that shows how long it's been since I bought furniture.

If demand for gold and silver exceeds supply, then the price would explode to the upside. Modern currencies can always print more to meet demand.

 

Im supprised that the Indian central bank buys 200 tons off MFI when they could have bought it from the comex.

So MFI is in the gold business now? So can I get a sovereign with my dining table?

Some TA by Pixel8r that deserves a DOUBLE POST.

How do you get that parabola curve? Illustrator or MS Paint?

Left hands says no, but the right hand says yes. Russians trying to accumulate on the cheap or a favour for another central bank?

GOLD-RUSSIA/ (UPDATE 3):UPDATE 3-Russia to sell 20-50 T gold in 2009 - source

 

MOSCOW, Oct 23 (Reuters) - Russia plans to sell as much as 50 tonnes of gold this year to help plug a budget deficit in the first major bullion sale by its precious metals repository since the fall of the Soviet Union, a high level source told Reuters.

 

The sales from Russia's State Precious Metals and Gems Repository (Gokhran) could account for 0.5 to 1.25 percent of global consumption of the metal, which soared in price to a record of $1,070.40 per ounce on Oct.14.

 

"More than 20 tonnes, but less than 50 tonnes of gold will be supplied this year," the source familiar with the matter said on Friday, adding that the sale was intended to increase state budget revenues.

 

The source said the sale would be the first major gold sale by Gokhran since the 1991 fall of the Soviet Union, which kept a veil of secrecy over its sometimes significant foreign sales of gems and precious metals.

 

Two other sources in the Russian government confirmed the planned gold sale but declined to comment on the volumes involved. The sales will be carried out by state owned Almazjuvelirexport.

 

Government spokesman Dmitry Peskov said a government resolution allowing the sale had not yet been signed.

 

Gokhran, which traces its history to a decree by Tsar Peter the Great in 1719, holds the Russian state's stocks of precious metals such as gold and palladium and gems such as diamonds.

 

Spot gold rose to a high of $1,067.30 per ounce on Friday, up from $1,060 late in New York on Thursday.

 

At current prices, Russia could raise as much as $1.7 billion if Gokhran sells 50 tonnes of bullion.

 

That would help it cover its first budget deficit in a decade that is forecast to total nearly $100 billion this year, or about 7.5-7.7 percent of gross domestic product. Gokhran is subordinated to the finance ministry.

 

"There's a budget deficit they need to fund, so a sale of gold does seem the most sensible thing to do, but I would have thought the impact on the market would be relatively limited," said Robin Bhar, an analyst at Calyon.

 

GOLD SALES

 

But some traders said they were sceptical of the bullion sale plans as the Russian central bank had increased stocks of gold as part of its international reserves by 14 percent in the last nine months to 19 million ounces.

 

"Why would they accommodate the international market when their own central bank is trying to buy gold?" said Afshin Nabavi, head of trading at MKS Finance in Geneva.

 

"I don't think the central bank would allow it to go into the international market," said Nabavi.

 

Gold, viewed as safe haven in uncertain times, has soared in recent weeks as investors have sought protection against declines in the value of the U.S. dollar.

 

Russia was the world's fifth-largest gold producer last year, accounting for about 7 percent of global output.

 

Under a government order signed at the start of the year, Gokhran is allowed to sell precious metals worth 44.4 billion roubles ($1.53 billion) in 2009.

 

But the size of Gokhran's stocks is a state secret and disclosure is punishable by imprisonment, though traders say Gokhran's stocks are thought to be sizeable.

 

"They haven't passed a decree yet. It's got to be signed off, so its not a done and dusted deal," said Calyon's Bhar.

 

He said any price move would be a limited knee-jerk reaction on the downside "because we don't know what state stocks are, and if it's the first, or only tranche, of state sales." (Additional reporting by Veronica Brown in London and Gleb Bryansky and Aleksandras Budrys in Moscow; writing by Guy Faulconbridge; editing by Christopher Johnson)

Reuters

stupid question - what is the new york globex market and why does it open at this ridiculous time?

Correct me if I'm wrong folks but my understanding is that the globex is the 'out-of-hours trading' platform for the Comex - so they can manipulate away, 24 hours a day:)

The link has more info: http://www.cmegroup.com/globex/introduction/

With all this exitement I guess my question is kind of irrelevant

So the shorts are about to be toast....I'll drink to that. Happy all-time high everyone!

You are correct they will have to cover at some stage, which will propel the price a lot higher. They are going up against the chinese this time, who won't be tricked by their paper games.

The thing is, when is that? There must be some kind of time limit.

I have a question for those more knowledgable than myself.

With the last COT report showing near record short positions on Gold and Silver, when will the traders with these short positions have to cover them - especially if the price refuses to budge low enough for it to be profitable. Can they just hold onto losing positions forever, thus never covering? How can they continue to short something and never cover it?

UK Indie seems be confirming what Jim Willie and others are saying about the pricing of Oil in a different currency. The game is up. Better hope the Americans don't kick over the table and start WWIII:

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

 

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

 

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.

 

The Americans, who are aware the meetings have taken place – although they have not discovered the details – are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs. Against the background to these currency meetings, Sun Bigan, China's former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."

 

This sounds like a dangerous prediction of a future economic war between the US and China over Middle East oil – yet again turning the region's conflicts into a battle for great power supremacy. China uses more oil incrementally than the US because its growth is less energy efficient. The transitional currency in the move away from dollars, according to Chinese banking sources, may well be gold. An indication of the huge amounts involved can be gained from the wealth of Abu Dhabi, Saudi Arabia, Kuwait and Qatar who together hold an estimated $2.1 trillion in dollar reserves...

Read the rest HERE

I sincerely hope on an opening of a reliable "remote controllable" storage facility in Hong Kong. Like GM/BV only based in Hong Kong - truly outside the US's and Europe's jurisdiction.

I actually sent an email to Goldmoney on this very question about 6 months ago. I asked for them to diversify their location of metal vaults - with a vault in Asia a top priority (I recommended Hong Kong). They said they were looking into it. So if enough folks politely ask maybe we can get this thing off the ground. James Turk is well aware of juristiction risk and I sure he will listen to us.

EDIT: Spelling.

Pixel, tbh, I would not waste too much time with charts, look at them at a macro level, at this point in time, I just threw 3 in to keep the morons here on this thread happy, if you are not 100 per cent in metals, you will rue the day. 

What's with the insults? Come on now - do you really think it is OK to insult people? Is that really normal behaviour? Be honest with yourself. Seriously.

Back on topic:

For the record, even though I'm essentially "100%" in metals (all my savings) I don't think that will be truly enough to fully protect yourself. Getting completely out of debt and living in a relative safe environment is higher on the list of priorities than metals. What good is a few krugs when your life is in danger? Saying that, PMs sure does make getting out of dodge a lot easier for some rather than others. I would agree with you on trading - too many potential black swans to make the "profits" worth it. I'm not greedy. In fact, I'm not even buying PMs these days because I'd rather spend some fiat on aquiring more land (recently been checking-out some forestry). But to each their own.

What is this, the cdswamp thread? Enough of the thread spamming, please. Let's not make this place go down the toilet, like 'over there'.