Pixel8r Posted August 18, 2009 Report Share Posted August 18, 2009 Sure. It will be interesting to hear Jim Turk's comments on those points I have forwarded your questions onto James, but he is busy on a business trip in South Africa at the moment. He has asked me to pass on that he will answer as time permits. I the meantime I have just been reading this which seems to explain how the cartel works in shorting gold. It all seems quiet easy to understand as to how they have been controlling the canary in the coal mine to me. Here is how the scheme works: Central banks, like the FED, takes gold bars from their vaults and leases them to cartel entities like Goldman Sachs at a low rate typically around 1%. Unless the sale is announced like Gordon Brown's infamous sale of 60% of England's gold reserves from 1999-2002 at $275/oz., the central bank continues to carry gold on lease and gold in the vault as one line item on their balance sheet. The cartel then sells the physical gold into the futures market at spot price. The spot and future prices were suppressed by this extra supply. Large dumps can be orchestrated to cause "waterfalls" in the price due to algorithm or stop-loss trading. Now the cartel has plenty of capital which could be leveraged by an investment bank at 30:1 or higher and used for ANY transaction. (Similar plays on interest rate mismatches were also executed on fiat currencies, most infamously the Japanese Yen-US Treasury carry trade, but these plays were made far easier with the golden 'canary' silenced.) The physical gold bars leave the exchanges. Most of the central bank gold is melted down to meet the supply deficit, and now adorns the necks of Indian women or rests in the vaults of investors. from :- http://news.goldseek.com/GoldSeek/1247554800.php Link to comment Share on other sites More sharing options...
LauraB Posted August 18, 2009 Report Share Posted August 18, 2009 Perhaps not quite enough information. Sorry guys - its all physical, in a bank vault in Switzerland ...all in MrsBigT's name. Same place and ownership for all our BTLs, and our spare cash. And same place as my wife has been for the last month, while I stay here working. Hmmm... (sound of penny dropping) ...I wonder if its a fall in PoG, or my wife leaving me, that I should be worried about ??? (shiny yellow) Eggs AND Hen in the same basket oh dear BigT Link to comment Share on other sites More sharing options...
G0ldfinger Posted August 19, 2009 Author Report Share Posted August 19, 2009 DOUBLE POST. There seems to be a "line of defense" between 300/0.6 and 1000/1.6. Only once too close to 1000, the magic number takes over and dominates as defense line. The upper left line is something like gold's floor (XAUUSD vs. EURUSD). Link to comment Share on other sites More sharing options...
dietcolaaddict Posted August 19, 2009 Report Share Posted August 19, 2009 Gold up $10 in 10 minutes. Was that the last buying opportunity? Boat about to set sail ? Link to comment Share on other sites More sharing options...
romans holiday Posted August 19, 2009 Report Share Posted August 19, 2009 Gold up $10 in 10 minutes. Was that the last uying opportunity? Boat about to set sail ? There will be many investors lining up to buy gold on these dips which will serve to support the price. I wonder if the same will happen with the Dow etc. Link to comment Share on other sites More sharing options...
No6 Posted August 19, 2009 Report Share Posted August 19, 2009 I'm sure this has been posted?? Gold Demand Shrinks to Six-Year Low on Recession, Council Says Aug. 19 (Bloomberg) -- Gold demand fell to a six-year low in the second quarter as recession curbed buying by jewelers and electronics producers, the World Gold Council said. Central banks were net buyers for the first time since at least 2000. Global consumption fell 8.6 percent to 719.5 metric tons from a year earlier, the London-based industry group said in a report today. That’s the lowest level since the first quarter of 2003. Jewelry demand declined 22 percent and electronics, the biggest industrial use for gold, slid 26 percent. The World Bank said in June the global recession will be deeper than it expected three months earlier. Investors bought 222.4 tons of gold in the quarter, 46 percent more than a year earlier, as an alternative to stocks and bonds, said Rozanna Wozniak, investment research manager at the council. “Tough economic conditions have impacted jewelry and industrial demand,” Wozniak said. “Investment demand provided a cushion and we do expect that to continue.” http://www.bloomberg.com/apps/news?pid=206...id=ayr30bHgFXQE Link to comment Share on other sites More sharing options...
marmite Posted August 19, 2009 Report Share Posted August 19, 2009 Gold up $10 in 10 minutes. Was that the last buying opportunity? Boat about to set sail ? What just happenned ( well an hour ago ) ???? Sorry, just answered my own question http://www.reuters.com/article/marketsNews...19?rpc=401& Link to comment Share on other sites More sharing options...
bitbigt Posted August 19, 2009 Report Share Posted August 19, 2009 What just happenned ( well an hour ago ) ???? Was gonna ask the same question - but you beat me to it Must be something to with the Yanks getting out of bed. Not sure that "US gold rises on technical buying" is the explanation, as gold is up in all currencies. So could be some general news. Or just the Americans reacting to BoE's doubts about UK recovery and amount of QE needed? Link to comment Share on other sites More sharing options...
TrueNorth Posted August 19, 2009 Report Share Posted August 19, 2009 I'm sure this has been posted?? Gold Demand Shrinks to Six-Year Low on Recession, Council Says Aug. 19 (Bloomberg) -- Gold demand fell to a six-year low in the second quarter as recession curbed buying by jewelers and electronics producers, the World Gold Council said. Central banks were net buyers for the first time since at least 2000. Is it just me, or does anyone else here think these fellas are just a bit . . . dopey? Link to comment Share on other sites More sharing options...
bitbigt Posted August 19, 2009 Report Share Posted August 19, 2009 Was gonna ask the same question - but you beat me to it Must be something to with the Yanks getting out of bed. Not sure that "US gold rises on technical buying" is the explanation, as gold is up in all currencies. So could be some general news. Or just the Americans reacting to BoE's doubts about UK recovery and amount of QE needed? It coincided with a MASSIVE jump in the price of oil. That may have raised fear of inflation, and hence prompted gold buying. But I don't know what caused the jump in the oil price. Link to comment Share on other sites More sharing options...
tl8177 Posted August 19, 2009 Report Share Posted August 19, 2009 It coincided with a MASSIVE jump in the price of oil. That may have raised fear of inflation, and hence prompted gold buying. But I don't know what caused the jump in the oil price. Baghdad bombs? http://www.telegraph.co.uk/news/worldnews/...in-Baghdad.html sounds horrific Link to comment Share on other sites More sharing options...
alexreeve Posted August 19, 2009 Report Share Posted August 19, 2009 Is it just me, or does anyone else here think these fellas are just a bit . . . dopey? According to wikipedia: The World Gold Council is an industry association of the world's leading gold mining companies, established in 1987. It aims to stimulate demand for gold from industry, consumers, and investors. The Council's Chief Executive Officer is Aram Shishmanian, former head of global financial markets practice at Accenture. They don't seem to be trying that hard to attract investors whenever I see them quoted. Link to comment Share on other sites More sharing options...
romans holiday Posted August 19, 2009 Report Share Posted August 19, 2009 Was gonna ask the same question - but you beat me to it Must be something to with the Yanks getting out of bed. Not sure that "US gold rises on technical buying" is the explanation, as gold is up in all currencies. So could be some general news. Or just the Americans reacting to BoE's doubts about UK recovery and amount of QE needed? Buffet's crying out loud over the Fed's balance sheet. All for public consumption of course and great timing. Get out there and buy buy buy before the world is polluted with dollars! Link to comment Share on other sites More sharing options...
No6 Posted August 19, 2009 Report Share Posted August 19, 2009 Is it just me, or does anyone else here think these fellas are just a bit . . . dopey? Not sure why they would be seen as dopey? Is it because they said something that might be seen as a negative? They seemed fairly bullish on the investment side of things. Surely they are just reporting the facts that demand at the moment is down for certain things that gold is used for? The members list has a lot of mining companies that members here may well hold. http://www.members.gold.org/members_list/ Mind you, I did like the first question in their FAQ list. Frequently Asked Questions Alchemy: Can base metals be turned into gold? All metal atoms are made of the same building blocks of protons, neutrons and electrons, but in different quantities, so in theory it could be possible to change base metals into gold or any other metal of value to mankind. In practice, it is achieved only in nuclear reactions, where heavy radioactive metals decay into other lighter elements, including some isotopes of gold. However, man's ancient dream of turning base metals into gold is not a practical proposition. So it remains a dream! http://www.gold.org/faq/ Link to comment Share on other sites More sharing options...
TrueNorth Posted August 19, 2009 Report Share Posted August 19, 2009 According to wikipedia: They don't seem to be trying that hard to attract investors whenever I see them quoted. Exactly. They are all "jewellery demand. . . blah blah blah. . . jewellery demand. . . " and don't seem to have the foggiest when it comes to macro economics. Link to comment Share on other sites More sharing options...
romans holiday Posted August 19, 2009 Report Share Posted August 19, 2009 I'm sure this has been posted?? It is actually quite a bullish article. http://www.bloomberg.com/apps/news?pid=206...id=ayr30bHgFXQE “Tough economic conditions have impacted jewelry and industrial demand,” Wozniak said. “Investment demand provided a cushion and we do expect that to continue.” Central banks bought 14 tons of gold more than they sold, the first quarterly net purchases since at least 2000, according to the council, based on figures from London-based research company GFMS Ltd. The so-called official sector had net sales of 69 tons in the second quarter last year, the report said. Wozniak said GFMS wouldn’t identify any of the buyers. Central bank purchases aren’t counted in the 719.5 tons of total demand because they are considered a traditional source of supply, she said Link to comment Share on other sites More sharing options...
No6 Posted August 19, 2009 Report Share Posted August 19, 2009 It is actually quite a bullish article. http://www.bloomberg.com/apps/news?pid=206...id=ayr30bHgFXQE I did say they were quite bullish on the investment side, but they are mining companies, they must have some idea of falling demand elsewhere. Link to comment Share on other sites More sharing options...
TrueNorth Posted August 19, 2009 Report Share Posted August 19, 2009 It is actually quite a bullish article. http://www.bloomberg.com/apps/news?pid=206...id=ayr30bHgFXQE Bullish yes, but this illustrates my point about them being dopey. Look how they bury the lead: Gold Demand Shrinks to Six-Year Low on Recession, Council Says Aug. 19 (Bloomberg) -- Gold demand fell to a six-year low in the second quarter as recession curbed buying by jewelers and electronics producers, the World Gold Council said. Central banks were net buyers for the first time since at least 2000. Global consumption fell 8.6 percent to 719.5 metric tons from a year earlier, the London-based industry group said in a report today. That’s the lowest level since the first quarter of 2003. Jewelry demand declined 22 percent and electronics, the biggest industrial use for gold, slid 26 percent. The World Bank said in June the global recession will be deeper than it expected three months earlier. Investors bought 222.4 tons of gold in the quarter, 46 percent more than a year earlier, as an alternative to stocks and bonds, said Rozanna Wozniak, investment research manager at the council. “Tough economic conditions have impacted jewelry and industrial demand,” Wozniak said. “Investment demand provided a cushion and we do expect that to continue.” That's the lead. And that's why they are bozos. It should read: Investment demand jumps on Recession, Council Says Aug. 19 (Bloomberg) -- Demand for investment gold nearly doubled year-on year, the World Gold Council said. Investors flocked to the yellow metal as a safe haven in the financial upheaval of the past year. Investors bought 222.4 tons of gold in the quarter, 46 percent more than a year earlier, as an alternative to stocks and bonds, said Rozanna Wozniak, investment research manager at the council. Jewellery and industrial demand were down, not unexpectedly: “Tough economic conditions have impacted jewelry and industrial demand,” Wozniak said. “Investment demand provided a cushion and we do expect that to continue.” Link to comment Share on other sites More sharing options...
TrueNorth Posted August 19, 2009 Report Share Posted August 19, 2009 Next thing you know, we'll find out Gartman is their official spokesman. Link to comment Share on other sites More sharing options...
No6 Posted August 19, 2009 Report Share Posted August 19, 2009 Bullish yes, but this illustrates my point about them being dopey. Look how they bury the lead: That's the lead. And that's why they are bozos. It should read: They are not responsible for the way the media present the story, unless Bloomsberg have reported their press release word for word without any change. Your re-writing of it shows that bias works both ways, or can be made to work. Outside of pravda, I think it is a well balanced account of the facts, although the presentation could have been made in one of a number of ways. Link to comment Share on other sites More sharing options...
DoctorSolar Posted August 19, 2009 Report Share Posted August 19, 2009 Mind you, I did like the first question in their FAQ list. Frequently Asked Questions Alchemy: Can base metals be turned into gold? I recall a post on HPC ages ago where some chap was arguing that investing in gold was a mugs game as eventually scientists will be able to make gold out of other elements. Wish I could find the post now it was hilarious. I remember the chap getting quite indignant saying "and yes the technology does exist" then going on to say gold atoms are produced as a by-product of reactions in large hadron colliders! Not exactly a very cost efficient approach Link to comment Share on other sites More sharing options...
electroweak Posted August 19, 2009 Report Share Posted August 19, 2009 I recall a post on HPC ages ago where some chap was arguing that investing in gold was a mugs game as eventually scientists will be able to make gold out of other elements. Wish I could find the post now it was hilarious. I remember the chap getting quite indignant saying "and yes the technology does exist" then going on to say gold atoms are produced as a by-product of reactions in large hadron colliders! Not exactly a very cost efficient approach i think that was 'RealistBear' Link to comment Share on other sites More sharing options...
TrueNorth Posted August 19, 2009 Report Share Posted August 19, 2009 They are not responsible for the way the media present the story, unless Bloomsberg have reported their press release word for word without any change. Your re-writing of it shows that bias works both ways, or can be made to work. Outside of pravda, I think it is a well balanced account of the facts, although the presentation could have been made in one of a number of ways. Well, let's put it this way: the World Gold Council, as a membership organisation, works for the benefit of its members. Its communications should support that. Every one of those mining companies pays the WGC employees' salaries. What is good for the gold miners should be top of the comms agenda. So. I agree, they are not responsible for how the media interpret the story. But I betcha the WGC press release uses nearly an identical lead to the Bloomberg story! I am going to go look for it and will post it if I track it down. Link to comment Share on other sites More sharing options...
Mr Pipples Posted August 19, 2009 Report Share Posted August 19, 2009 But I don't know what caused the jump in the oil price. Big inventory drop - http://finance.yahoo.com/news/Stock-future...set=&ccode= Link to comment Share on other sites More sharing options...
TrueNorth Posted August 19, 2009 Report Share Posted August 19, 2009 I am going to go look for it and will post it if I track it down. Nope, it's not on their website. Latest release is Aug 7 re central bank sales. They did, however, use my format in May 20 May, 2009: Gold demand surges as investors turn to wealth preservation Link to comment Share on other sites More sharing options...
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