azazel Posted November 3, 2009 Report Share Posted November 3, 2009 I never thought they would sell, they must be desperate.... Seems to be extremely bullish for gold, gold up $20/£15 today and currently @ $1,065.95/£650.19, it looks like we might be breaking new barriers tonight in USD! I guess the IMF are hoping to buy it back after the correction... IMF Sells Gold to Central Bank of India, Netting $6.7 Billion Well thats half the 400 tons of MFI gold sold already and they are talking about selling it over the next few years. Hardly a threat to the gold price! Link to comment Share on other sites More sharing options...
romans holiday Posted November 3, 2009 Report Share Posted November 3, 2009 Well thats half the 400 tons of MFI gold sold already and they are talking about selling it over the next few years. Hardly a threat to the gold price! Yes, it should be increasingly obvious that gold is now no longer considered a commodity, or inflation hedge, but considered a currency and has been in the process of "monetization" by investors and CBs. CBs [mostly Asia] without a decent core holding will continue to build. As a currency, I doubt the price will explode to the up-side, by some sudden flood of liquidity, but incrementally climb as modern currencies slowly decline. That said for the long term, if there is another credit crunch episode, gold may slump a little on forced liquidation, but would recover quickly. Link to comment Share on other sites More sharing options...
azazel Posted November 3, 2009 Report Share Posted November 3, 2009 Yes, it should be increasingly obvious that gold is now no longer considered a commodity, or inflation hedge, but considered a currency and has been in the process of "monetization" by investors and CBs. CBs [mostly Asia] without a decent core holding will continue to build. As a currency, I doubt the price will explode to the up-side, by some sudden flood of liquidity, but incrementally climb as modern currencies slowly decline. That said for the long term, if there is another credit crunch episode, gold may slump a little on forced liquidation, but would recover quickly. 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. Link to comment Share on other sites More sharing options...
TrueNorth Posted November 3, 2009 Report Share Posted November 3, 2009 Im supprised that the Indian central bank buys 200 tons off MFI when they could have bought it from the comex. Perhaps they weren't certain COMEX could meet delivery obligations in bullion. Link to comment Share on other sites More sharing options...
Fortune Posted November 3, 2009 Report Share Posted November 3, 2009 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? Link to comment Share on other sites More sharing options...
Pixel8r Posted November 3, 2009 Report Share Posted November 3, 2009 So MFI is in the gold business now? So can I get a sovereign with my dining table? I doubt it they went bust a while back. http://www.mfi.co.uk/ Link to comment Share on other sites More sharing options...
Fortune Posted November 3, 2009 Report Share Posted November 3, 2009 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. Link to comment Share on other sites More sharing options...
romans holiday Posted November 3, 2009 Report Share Posted November 3, 2009 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. Not if currencies are tied/stabilized to gold first. This would involve something of a "Copernican revolution" in the way in which we think about prices, where gold is no longer priced by currencies, but currencies by gold. Link to comment Share on other sites More sharing options...
jinbal Posted November 3, 2009 Report Share Posted November 3, 2009 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. I'm not. Buying this way allows them to purchase big with out de-stabilising the price - I imagine it would be very difficult to buy that large on COMEX without causing a dislocation? Of course if it comes out in MSM after the event it's not unfavourable for them Also there is the issue of delivery from COMEX - I would imagine that the IMF would always be a better bet than COMEX in that respect Link to comment Share on other sites More sharing options...
Pixel8r Posted November 3, 2009 Report Share Posted November 3, 2009 I have realised that something that happened yesterday wasn't discussed. Gold actually made an all time high London PM gold fix yesterday. I think this is big news as it shows how the cartel are starting to lose their grip. Link to comment Share on other sites More sharing options...
hotairmail Posted November 3, 2009 Report Share Posted November 3, 2009 http://ftalphaville.ft.com/blog/2009/11/03...swap-confirmed/ Gold for sdr swap confirmed. Link to comment Share on other sites More sharing options...
warpig Posted November 3, 2009 Report Share Posted November 3, 2009 Yes but no.... You're right in what you're saying, however I think prices will explode to the upside before we get anywhere near what you're describing. They will play the fiat game until the bitter end IMO. Not if currencies are tied/stabilized to gold first. This would involve something of a "Copernican revolution" in the way in which we think about prices, where gold is no longer priced by currencies, but currencies by gold. Link to comment Share on other sites More sharing options...
romans holiday Posted November 3, 2009 Report Share Posted November 3, 2009 http://ftalphaville.ft.com/blog/2009/11/03...swap-confirmed/ Gold for sdr swap confirmed. Interesting development. Contrary to popular belief SDR does not refer to the Standardised Death Rate of currencies but to Special Drawing Rights: "SDRs are defined in terms of a basket of major currencies used in international trade and finance. At present, one SDR is the sum of 0.6320 US Dollars, 0.4100 euro, 18.4 Japanese yen and 0.0903 pound sterling". With another 3000 odd tonnes of gold, and deposited funds from a multitude of countries, at the disposal of the IMF, could SDRs emerge in the future as some kind of new gold backed currency? I think such a "new Bretton Woods" currency may be eventually required in order to restore stability to currencies and balance to trade. I doubt the Yuan will "de-peg" from the dollar until some such currency is instituted.... and only then will they "write down" the value of their dollar reserves... once the bulk of those reserves are guaranteed by currencies pegged to/ stabilized by gold. Link to comment Share on other sites More sharing options...
alexreeve Posted November 3, 2009 Report Share Posted November 3, 2009 http://ftalphaville.ft.com/blog/2009/11/03...swap-confirmed/ Gold for sdr swap confirmed. Was Marc Faber aware of this? Is this why he's been claiming India's Central bank is the only one that knows what it's doing? It seemed an odd thing to say without giving any supporting logic. Link to comment Share on other sites More sharing options...
bitbigt Posted November 3, 2009 Report Share Posted November 3, 2009 Gold actually made an all time high London PM gold fix yesterday. I think this is big news as it shows how the cartel are starting to lose their grip. Not really. Since this gold price (like the oil price) is simply reflecting a weakenning USD and GBP (gold has not risen dramatically in most other currencies), I would say this 'big news' merely shows that these two countries are being very effective in executing a controlled devaluation of their currencies. The full implications of this are horrific for the people of these two nations, who just don't realise what is being done to them. Link to comment Share on other sites More sharing options...
DoctorSolar Posted November 3, 2009 Report Share Posted November 3, 2009 Not really. Since this gold price (like the oil price) is simply reflecting a weakenning USD and GBP (gold has not risen dramatically in most other currencies), I would say this 'big news' merely shows that these two countries are being very effective in executing a controlled devaluation of their currencies. The full implications of this are horrific for the people of these two nations, who just don't realise what is being done to them. Hi bigtbigt, what should the people of those two nations do to protect themselves? From what you have said it would appear buying gold would at least maintain their purchasing power? Diversifying in to other currencies may increase their purchasing power? But what if the governments of those other nations also try to devalue? This is a significant risk as they all try to race to the bottom. From a longer term perspective gold looks the best bet here? Link to comment Share on other sites More sharing options...
creditcrunch Posted November 3, 2009 Report Share Posted November 3, 2009 Look at gold go for it today. Wish I had a bit more fiat to exchange in the past weeks. Link to comment Share on other sites More sharing options...
routemaster Posted November 3, 2009 Report Share Posted November 3, 2009 Some light relief: I found this very funny From: Thanks, tl8177 for the comedy relief. Much appreciated. Link to comment Share on other sites More sharing options...
bitbigt Posted November 3, 2009 Report Share Posted November 3, 2009 Hi bigtbigt, what should the people of those two nations do to protect themselves? From what you have said it would appear buying gold would at least maintain their purchasing power? Diversifying in to other currencies may increase their purchasing power? But what if the governments of those other nations also try to devalue? This is a significant risk as they all try to race to the bottom. From a longer term perspective gold looks the best bet here? 2-4 years ago, I'd have said the smartest protection for US and UK citizens would be gold. Indeed, that is why I put 30% of my Sterling cash into gold. This doubled in nominal terms as GBP collapsed by 30% and gold rose steadily in other currencies. But I'm now down to only 6% in gold, because I am not sure it will anything like double again from here, and fear it may even have a serious pull back if/when deflation persists, the Tories get in, and some fiscal responsibility returns (once GBs scorched earth policy is no longer the key consideration) So today, and for next 2-4 years, I feel you need to get your GBP and USD cash into a spread of property, commodities, and energy stocks. A 'portion' remaining in PMs is obviously a good idea as well. After 4 years, I'll probably have upped my gold holdings (if there is a pull back), paid off my mortgage (high end UK, or certain places oversees), and hold a load of commodity and foreign stock market ETFs. ...as I think that the next 5+ years we'll experience an Asian-led bull market run which is accompanied by painful inflation in the West. Inflation linked bonds might also be a good bet - so long as you wait for the price to bottom first! At the end of that, we'll have a new global currency forced upon us all (so hold no cash then), perhaps some form of extension of the IMF SDRs ...but that might be too conspiratorialist for some readers Link to comment Share on other sites More sharing options...
Pixel8r Posted November 3, 2009 Report Share Posted November 3, 2009 The two charts below show how the Silver:Gold ratio and the Miners:Gold ratio are closely tied together at the moment. Been trying to work out what it means really. I guess it is showing that during this credit crunch there has been a flight to safety, that physical gold holds more perceived safety than a mining share or silver holds. I wonder how long it will take to correct itself, makes me want to buy more silver and miners. Link to comment Share on other sites More sharing options...
TrueNorth Posted November 3, 2009 Report Share Posted November 3, 2009 Very interesting Pixel8r. I reckon you are right, that the miners and silver are cheap these days, relatively speaking. I plan to buy more of both after the next crash. Link to comment Share on other sites More sharing options...
TrueNorth Posted November 3, 2009 Report Share Posted November 3, 2009 1070 against a rising dollar. This is interesting. Link to comment Share on other sites More sharing options...
wee Jinky Posted November 3, 2009 Report Share Posted November 3, 2009 1070 against a rising dollar. This is interesting. just hit $1075 like you say interesting Link to comment Share on other sites More sharing options...
TrueNorth Posted November 3, 2009 Report Share Posted November 3, 2009 jeepers, it's gone vertical! and so has silver! Link to comment Share on other sites More sharing options...
electroweak Posted November 3, 2009 Report Share Posted November 3, 2009 Something just lit a fire under g+s... $1078.90 Gold/Oz $17.08 Silver/Oz Link to comment Share on other sites More sharing options...
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