GOLD

[wren]

Interesting list from the CIA World factbook.

 

Rank Order - Reserves of foreign exchange and gold (data is from December 2007 in most cases).

 

https://www.cia.gov/library/publications/th...r/2188rank.html

 

The USA is 20th, behind places like Libya and Algeria.

 

[ologhai]

Looking at the BV charts, there seems quite a remarkable difference between USD and GBP over this week.

 

The Growth on the USD chart seems a bit touch and go (as the saying goes), whereas the growth on the GBP charts seems pretty solid and steady.

 

I guess the £'s had a poor week...

[G0ldfinger]

Interesting list from the CIA World factbook.

 

Rank Order - Reserves of foreign exchange and gold (data is from December 2007 in most cases).

 

https://www.cia.gov/library/publications/th...r/2188rank.html

 

The USA is 20th, behind places like Libya and Algeria.

It will implode on itself. The Dollar is backed by ... Dollars! Great idea. Not.

[headmelter]

I haven't been about for a few weeks due to a visit to hospital and have taken ages to read back.

Although spot price has dived $120 since my last purchase I was cheered up to find I'm not suffering a paper loss at the minute despite all my purchases being above current spot.

 

Just wanted to know if people thought the current correction has run its course as I have some digital digits to swap for some nice shiny stuff.

 

All opinions greatly appreciated.

[tinecu]

It will implode on itself. The Dollar is backed by ... Dollars! Great idea. Not.

Don't forget the backing of the US Military....As I recall Saddam was going to sell his country's oil in Euros.

 

Don't forget the dollar pegs....US sitting very heavily on them even after the recent rally...like the British before they will squeeze their empire dry before they have to feel the real pain of their economic bungling at home.

 

Hence the demise of the US dollar will be a long painful one not a sudden implosion.

[romans holiday]

I haven't been about for a few weeks due to a visit to hospital and have taken ages to read back.

Although spot price has dived $120 since my last purchase I was cheered up to find I'm not suffering a paper loss at the minute despite all my purchases being above current spot.

 

Just wanted to know if people thought the current correction has run its course as I have some digital digits to swap for some nice shiny stuff.

 

All opinions greatly appreciated.

 

I imagine POG to track sideways and slightly up for a while until we have another deflationary scare when it may drop again to what we saw. Perhaps this process will be repeated a few times until we see the monetary metals recognised as alternative currencies in the face of a furthering financial crisis. Inflation in living costs would also no doubt play a big part in POG taking off. Whereas before I could not purchase metal fast enough, I am now much more relaxed and feel I have plenty of time to accumulate and buy on the dips.

[headmelter]

I imagine POG to track sideways and slightly up for a while until we have another deflationary scare when it may drop again to what we saw. Perhaps this process will be repeated a few times until we see the monetary metals recognised as alternative currencies in the face of a furthering financial crisis. Inflation in living costs would also no doubt play a big part in POG taking off. Whereas before I could not purchase metal fast enough, I am now much more relaxed and feel I have plenty of time to accumulate and buy on the dips.

 

 

I feel the same, I have enough 'insurance' now but the £ is going under I'm just not sure if it'll go under quicker than $.

[Compounded]

I am a big fan of Occam's Razor which states "All other things being equal, the simplest solution is the best." In other words, when multiple competing theories are equal in other respects, the principle recommends selecting the theory that introduces the fewest assumptions and postulates the fewest entities.

 

Competing Theories

 

Theory 1: The US government, foreign governments, central banks, various broker-dealers, and a consortium of 10 large US banks are all acting together in some massive conspiracy to suppress the price of precious metals, for 15 years running, and during that period not a single person has stepped up to expose the fraud even though CIA and other intelligence leaks have been running rampant.

 

Theory 2: There was massive selling by over-leveraged hedge funds in response to fundamental changes in regards to the US dollar vs. the Euro.

 

We could have both at the same time.

 

I suspect most here think we have.

[confounded]

We could have both at the same time.

 

I suspect most here think we have.

 

I agree, if people really must simplify things just look at the big picture rather than trying to understand the detail.

 

The economy is 90% propaganda (yesterdays US GDP!), governments are in place to steer the economy and manage the propaganda. This is what they do, if it is in the "greater" interest of country I have no doubt they intervene in the key markets, that is why we have governments, it is just their role is a little more sophisticated these days from what most people perceive it to be.

 

People have written scripts for what is happening now several years ago, I recommend reading "The Final Crash" by Hugo Bouleau (http://www.finalcrash.com/). It is hardly surprising they have been so successful given the time they have had to prepare for the events.

 

If manipulation is not being used in all the key markets/indicators we are mighty lucky how things have paned out so far in what is undoubtedly the worst financial crisis of anyone likely to be posting on this board!

 

[Compounded]

I agree, if people really must simplify things just look at the big picture rather than trying to understand the detail.

 

The economy is 90% propaganda (yesterdays US GDP!), governments are in place to steer the economy and manage the propaganda. This is what they do, if it is in the "greater" interest of country I have no doubt they intervene in the key markets, that is why we have governments, it is just their role is a little more sophisticated these days from what most people perceive it to be.

 

People have written scripts for what is happening now several years ago, I recommend reading "The Final Crash" by Hugo Bouleau (http://www.finalcrash.com/). It is hardly surprising they have been so successful given the time they have had to prepare for the events.

 

If manipulation is not being used in all the key markets/indicators we are mighty lucky how things have paned out so far in what is undoubtedly the worst financial crisis of anyone likely to be posting on this board!

 

The more I learn the more I am convinced the money men including the government at the centre are bleeding the working man white.

 

I detest and distrust them, I have debt free property and precious metal and nothing in the crazy soon to be bankrupt financial system.

 

I will not pay for cheaters porsches.

[Steve Netwriter]

This is long and has loads of charts. It's too much for me right now !!!

 

 

The Worst Is Yet to Come

BY CHRIS PUPLAVA

http://www.financialsense.com/Market/daily/wednesday.htm

 

Last week I took a look at why consumers were so depressed. In short, my conclusion was that consumers were finally coming to terms with their balance sheets and this wakeup call: that you can’t borrow your way indefinitely to maintain ones standard of living. Consumers will be forced to save and consume less as the liquidity trough of cheap credit has been removed. As Warren Buffet said, “Only when the tide goes out do you discover who’s been swimming naked.” The U.S. consumer has been swimming naked for several decades and is now scrambling for cover; so too our financial institutions that also leveraged up as risk management became a word lost in their vocabulary. The markets are down between 15% and 20% and I believe there is more to come, with reasons highlighted below.

[notanewmember]

Robert Kiosaki of rich dad poor dad is a guest on goldseek radio this week

[G0ldfinger]

you can’t borrow your way indefinitely to maintain ones standard of living

The funny thing is, and as Peter Schiff has pointed out recently, China tries to keep the game going by giving us a seemingly eternal unlimited credit facility.

 

I really, really wonder at what stage they will let us go bust. Because I can't believe they want to work like our slaves forever. Something has to give.

[notanewmember]

Just finished listening - Robert recommends

 

the five Gs

 

Gold

 

Gas [oil]

 

Ground [income producing real estate / farming?]

 

Grubb [food]

 

Guns

[Steve Netwriter]

Robert Kiosaki of rich dad poor dad is a guest on goldseek radio this week

 

Thanks

 

GSR - Aug 30

Featured Guest: Robert Kiyosaki: Rich Dad, Poor Dad!

http://radio.goldseek.com/

 

dial-up smallest download: http://radio.goldseek.com/shows/2008/08.30...R-08.30.08-b.rm

 

Robert Kiyosaki, author of Rich Dad Poor Dad - the international runaway bestseller that has held a top spot on the New York Times bestsellers list for over six years - is an investor, entrepreneur and educator whose perspectives on money and investing fly in the face of conventional wisdom. He has, virtually single-handedly, challenged and changed the way tens of millions, around the world, think about money.

 

[lardoon]

The funny thing is, and as Peter Schiff has pointed out recently, China tries to keep the game going by giving us a seemingly eternal unlimited credit facility.

 

I really, really wonder at what stage they will let us go bust. Because I can't believe they want to work like our slaves forever. Something has to give.

 

I have just read the Foreword to the second edition of Tomorrow's Gold by Marc Faber (this foreword was written before the US elections of 2004). I found the foreword very interesting, it basically tells how the hypothetical future economy history of our times could be.

 

His vision includes:

- Great monetary collapse and the introduction of a Precious Metal backed monetary system (in 2015)

- End of fossil-fuel power generation (replaced by solar and wind)

- The complete deflation of the derivatives bubble

- The return of Austrian School of Economics as mainstream current of thoughts (hardly surprising prediction coming from Mr Faber!)

- Thirld World War

 

But more to the point, it includes a description of the relationship between the US (aka Leisure Island) and China (dubbed as Diligence Island) and how one of China's main strategies is to keep subsidising the US consumption by providing Credit. This in turn would keep export demand and industrialisation (for Chinese) with transfer of technologies and know-how.

Another strategy that would be used by the Chinese is propping up the dollar - at least temporarily - to avoid US exports become competitive again and keep weakening their industrial base. The added benefit for the Chinese would be the possibility of buying "cheap" Gold and Silver.

Finally using to their insider position on commodity markets they could manipulate the markets (increase/decrease local industrial demand for example) and profit from the price shocks that this would generate (accumulate commodities when prices are low or push prices up and weaken the Financial industry of the West).

 

 

So to answer your point GoldFinger (finally) I guess it depends when the Chinese decide that the US are weak enough to be able to "bring them down as a house of cards" and switch from a position of "relative weakness" to a position of "relative strength".

 

 

It might not all happen as he predicts but it still makes for an entertaining read..

 

 

PS: For those interested, This foreword is included in the 3rd Edition of the book as an appendix

[Errol]

Just put in an order for more Krugerrands.

[romans holiday]

Just finished listening - Robert recommends

 

the five Gs

 

Gold

 

Gas [oil]

 

Ground [income producing real estate / farming?]

 

Grubb [food]

 

Guns

 

Do guns always go with gold in America?

[plan9]

Is that garage your home ?

I wish! TEN GRAND!

 

Incidentally, my mum (or us mam, as we say around here) sold a garage a little worse than that for SEVEN grand a few years ago... Naturally she blew that cool 7 big ones on shit... The value of "Money" seems to have lost all meaning to most (if you ask me).

[plan9]

850 to 900 within 3 months is hardly sticking one's neck out. They're not even near new highs. I shouldn't let this worry you.

Thanks wren. I won't be selling up the yellow stuff just yet!

 

In fact I bought some more silver two weeks ago after the drop, but haven't received it yet.

[Steve Netwriter]

I have just read the Foreword to the second edition of Tomorrow's Gold by Marc Faber (this foreword was written before the US elections of 2004). I found the foreword very interesting, it basically tells how the hypothetical future economy history of our times could be.

 

His vision includes:

- Great monetary collapse and the introduction of a Precious Metal backed monetary system (in 2015)

- End of fossil-fuel power generation (replaced by solar and wind)

- The complete deflation of the derivatives bubble

- The return of Austrian School of Economics as mainstream current of thoughts (hardly surprising prediction coming from Mr Faber!)

- Thirld World War

 

Very interesting.

IMO the only question is whether we get the last one.

 

[nicejim]

Just finished listening - Robert recommends

 

the five Gs

 

Gold

 

Gas [oil]

 

Ground [income producing real estate / farming?]

 

Grubb [food]

 

Guns

The 6th G: Grin

 

"You can go a long way with a smile. You can go a lot farther with a smile and a gun." ~ Al Capone

[wren]

In fact I bought some more silver two weeks ago after the drop, but haven't received it yet.

I'm doing the same. At less than €10.00 per ounce it's a gift at the moment.

[Steve Netwriter]

I like the Zeal articles.

 

Gold Bull Market Set to Resume on Strong Fundamentals

Commodities / Gold & Silver Aug 29, 2008 - 01:24 PM

 

By: Zeal_LLC

http://www.marketoracle.net/Article6031.html

 

As the precious metals summer doldrums come to a close, we need to assess the damage from another season of gold hatred and disdain. Like déjà vu for veteran gold investors, the mainstream financial media took advantage of gold's seasonal weakness to proclaim the death of the Ancient Metal of Kings.

 

From a technical perspective gold's summer activity indeed gave the naysayers fodder to jump on the “End of the Gold Bull!” and “Gold's Bubble has Burst!” bandwagons. Gold's $190 plunge from mid-July to mid-August saw it knife through a number of key support levels. This caused blood to flow in the streets even for the gold faithful.

 

Doldrums is an understatement for the rotten sentiment witnessed in the latter half of this summer. And honestly it is quite shocking to see the fear that $800 gold instills in folks. Investors are quick to forget that gold broke through $800 for the very first time in this bull less than a year ago. And it wasn't until the first day of 2008 that gold reached the $850 level for the first time in 28 years.

 

From a strategic perspective gold is in fine technical shape. It was just about a year ago that it launched from $650 into one of its most powerful uplegs bull to date that saw it briefly eclipse $1000 in March. And while gold seems to be exhibiting gut-wrenching volatility, it has been consolidating on the high side of this most recent upleg and is likely positioning itself to launch into a glorious new upleg that I suspect will surpass the early-2008 highs.

 

 

[G0ldfinger]

In case someone missed it.