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http://www.zerohedge.com/article/egypt-pro...ound-gold-shipm

 

Egypt Proactively Preparing For Tunisian-Style Rioting: Airport Intercepts 59 Outbound Gold Shipments Worth Tens Of Millions

 

After a week ago we learned that the central bank of Tunisia had parted with 23% of its gold stash courtesy of now deposed president who fled the country with a 1.5 ton shipment of gold, it appears that Egypt is preparing for a comparable spike in revolutionary activity. Only unlike the now former Tunisian president whose gold sequestering actions were retroactive and thus, quite lucky to succeed, Egypt has taken proactive measures. According to Egypt News, the country's airport has intercepted 59 shipments of gold directed for the Netherlands "worth tens of millions." The gold, as well as an indeterminate amount of foreign currencies, was hidden in pillow cases: uh, cotton may not show up on X-Rays, but gold sure does. We eagerly await to learn how big the decline in the country's official holdings 75.6 tonnes of gold will be after this most recent episode confirming that gold is precisely money. And all this happening despite gold's complete and thorough inedibility.

 

Authority announced today the state of emergency to re-examine the expulsion of 59 gold and foreign currencies was on its way out of Egypt on the path of smuggling after the discovery of tearing some pillow cases before they are shipped to the Netherlands.

 

The workers were shipping on the plane heading to Amsterdam, the Netherlands were surprised to tear bags under the 59 parcels containing large quantities of gold and foreign currencies worth tens of millions were reported to officials.

 

Committee was formed headed by one official of the Egyptian banks have been re-examine the packages and parcels to make sure that shortages and supervise the shipment on the plane.

 

 

Latest king world news featuring Jim Rickards.

 

http://kingworldnews.com/kingworldnews/Bro...ickards%3A.html

 

 

THERE ALL AT IT NOW.AND YOU ALL THOUGHT GOLDFINGER WAS JUST A FILM. ;) (and a TOP poster at GEI.)

 

From:

 

 

Auric Goldfinger is the chief villain from the movie of the same name. His first name, Auric, comes from the Latin word for gold, aurum (this is also the source of the chemical symbol for gold, Au). Goldfinger is obsessed with the metal gold, enthalled with its color and its "divine heaviness." He owns enormous quantities of gold, and it is this that brings him to the attention of MI-6. At the time of the film, Britain (and other nations) were still on a gold standard (defined by a series of post World War II agreements), and as a result the Department of the Exchequer (approximately equivalent the United States Treasury Department) kept a close eye on gold. They were perplexed and concerned that Goldfinger was somehow getting the metal out of the United Kingdom, to other places where it was less regulated, or where he could sell it for more money (a practice called arbitrage). Enter James Bond, assigned to discover just how Goldfinger was managing this trick.

 

Bond eventually discovers that Goldfinger's smuggling operation consists of replacing certain parts of his Rolls Royce automobile with parts made of gold, and painted. Goldfinger routinely took the car with him when he traveled, making it easy to smuggle the gold. At the destination, these parts were removed and replaced with conventional parts, and the gold melted and cast. Bond discovers this, and overhears Goldfinger discuss "operation Grand Slam" with an oriental man. But Goldfinger discoveres and captures Bond, securing him to a metal table and threatening to bisect him with a powerful laser. By uttering "Grand Slam" Bond worries the Oriental, and earns a reprieve. Goldfinger drugs him and takes him to America - the site of operation Grand Slam.

 

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What is the difference in ETFS swiss physical gold (SGBS) and ETFS physical gold (PHAU/PHGP)? Apart from the purity and where it is held? Both have a management charge of 0.39% p.a. More volume is traded on PHAU/PHGP than SGBS. Both have an identical share price performance.

 

Difference is just the name. Otherwise it is just paper. No redemption likely unless you are a zillionaire or you are a sovereign.

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I've given the miners a pass for a couple of reasons:

 

1) The miner stock price is 'up', measured in dollars or pounds, but what does that really mean? Isn't the currency its measured in depreciating as well, since the underlying asset is becoming more valuable?

2) The volatility will become insane - who has the metaphorical cajones to buy and hold through those wild correction? Only those with nerves of steel.

 

I think the only way you can win this game is to trade the miners (long and short), take the 'profits' and buy physical gold and silver. Steward Thompson says something to that effect. When the whole system blows up, you will still be holding a 'claim' to metal in the ground rather than the actual thing. Stocks are still derivatives (albeit derivatives which are closer to the real uderlying thing than say CDS). Will the companies and the exchanges follow the rule of law in a crisis? Who know? If what many are predicting actually comes true then any form of paper will ultimately become worthless.

 

Personally, I would have farmland over the GDX anyday. But that's just me.

GDX is cheap in relation to farmland in the UK, but yes you must have an exit strategy.

 

Stocks always maintain some value they have never dissapeared in Argentina, Zimbabwe or the Weimar these stocks never became worthless inspite of the fact that they never mined pure money out the ground (like my goldstocks!) and in many cases did things that were far less profitable.

 

One should enjoy the volatility of these miners as its this thats going to make them a stellar investment going forwards.

 

Average in and don't chase the price it will invaribly come back to you at some point.

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http://www.bbc.co.uk/news/business-12267742

 

Dr Doom's gloomy predictions

 

Marc Faber's nickname is Dr Doom, and his investment letter is called the Gloom Boom Doom report. He sells advice about where to invest to wealthy people, companies and institutions. He is, in the lingo of the financial zoo, a bear. He's bearish about Europe and bearish about China, and he thinks that gold is one of the safest places to put your money. His latest report is titled "The End Game has Begun."

 

Business Daily's Lesley Curwen spoke to him at his base in Chiang Mai in northern Thailand and asked him why he feels the way he does.

 

The full transcript is below.

 

Marc Faber: I am very negative about the world, because I think that what caused the crisis in 2008 was excessive credit growth, excessive leverage in the system, and now the private sector is deleveraging, but governments are printing money, and through huge fiscal deficits are creating even more debt growth. So in other words, what killed the economy is now being applied to revive the economy, and I think this will lead to a disaster. But if you think it through and you believe in the disaster scenario I'm envisioning, then you will be better off in equities and in commodities than in government bonds and cash.

 

Lesley Curwen: So, what do you think is going to happen in 2011?

 

Marc Faber: Well, I feel that if the stock market in the US declines 10% or 20%, we would have QE3, in other words more money printing.

 

Lesley Curwen: You are talking about quantitative easing, QE?

 

Marc Faber: Yes, correct. We would have quantitative easing three and that will again boost stock prices, but not necessarily the economy of the man on the street.

 

Lesley Curwen: Now, you have talked a lot about gold and are suggesting that actually it's a good bet to invest in at the moment, why do you feel that?

 

Marc Faber: Well, I wrote first about gold in 1998 when it was below $300 and then the low was at $252 an ounce in '99, and since then, I have been advising people to accumulate some gold. So, right now, obviously the price has gone up and we had the 10 year bull market, so I am a bit more cautious. But in general, because of the money printing I was referring to earlier, I don't think that there are any sound currencies anymore, paper currencies, and that the only sound currencies are hard currencies like gold, silver, platinum and palladium.

 

Lesley Curwen: But, gold doesn't do anything, is it? It doesn't add to the economy. It doesn't employ people. It doesn't accumulate wealth except on paper.

 

Marc Faber: Cash at 0% doesn't accumulate wealth either. The moment central banks implement monetary policies where they keep interest rates negative in real terms, in other words interest rates are lower than the rate of cost of living increases, then it is very difficult to value anything. The only thing I can say is, Mr Ben Bernanke, Chairman of the Federal Reserve, and other central banks, they can print an unlimited quantity of money, but you cannot print gold. Gold is limited by its annual supply of around 2,500 tonnes annually. So it is not that gold is going up, it is that the paper value of money, the purchasing power of money is going down vis-à-vis a unit of account, which is gold.

 

Lesley Curwen: What is your view about China? In the past, you have said you think it might be about to crash.

 

Marc Faber: Well, I think in the case of China, we have clearly a bubble, if we define a bubble as an economy where credit growth is very strong and where interest rates are artificially low. But, will it burst tomorrow, in three months or in three years, who knows?

 

Lesley Curwen: But isn't the argument that if you hold investments in China long-term, at some point this huge potential of this country with its massive workforce and its government will to succeed, is going to win out in the end?

 

Marc Faber: Yes, that maybe the case, but I think for the average investor, rather than to invest in Chinese companies and stocks where the accounting is frequently very untransparent and questionable, if you really believe in China, then you buy oil or you buy industrial commodities or you buy the Australian or the Canadian dollar, or the Australian stock market. I mean there are better ways to play China than necessarily to invest in China.

 

Lesley Curwen: Why? How are those connected?

 

Marc Faber: Well, if there is very strong growth in China, then obviously the demand for commodities goes up and because we have some supply constraints, then the prices of commodities go up and the resource produces benefit.

 

Lesley Curwen: Let me ask you about the eurozone. What do you expect to happen to the eurozone in 2011?

 

Marc Faber: Well, I think the euro will survive, but as is the case in the US, the ECB is expanding its balance sheet, and that hates to see the balance sheet because the quality of the bonds they own must be of very poor quality and so, we will have to muddle through. But, in general, I believe some weaker countries or weaker members of the EU like Spain, Portugal, Greece eventually will default

 

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Lesley Curwen: Now, you have talked a lot about gold and are suggesting that actually it's a good bet to invest in at the moment, why do you feel that?

 

Marc Faber: Well, I wrote first about gold in 1998 when it was below $300 and then the low was at $252 an ounce in '99, and since then, I have been advising people to accumulate some gold. So, right now, obviously the price has gone up and we had the 10 year bull market, so I am a bit more cautious. But in general, because of the money printing I was referring to earlier, I don't think that there are any sound currencies anymore, paper currencies, and that the only sound currencies are hard currencies like gold, silver, platinum and palladium.

 

Lesley Curwen: But, gold doesn't do anything, is it? It doesn't add to the economy. It doesn't employ people. It doesn't accumulate wealth except on paper.

 

Marc Faber: Cash at 0% doesn't accumulate wealth either. The moment central banks implement monetary policies where they keep interest rates negative in real terms, in other words interest rates are lower than the rate of cost of living increases, then it is very difficult to value anything. The only thing I can say is, Mr Ben Bernanke, Chairman of the Federal Reserve, and other central banks, they can print an unlimited quantity of money, but you cannot print gold. Gold is limited by its annual supply of around 2,500 tonnes annually. So it is not that gold is going up, it is that the paper value of money, the purchasing power of money is going down vis-à-vis a unit of account, which is gold.

 

With gold back at £834 I think it could be time to start buying again. I'm thinking a pyramid of buys of increasing size every £10 down from here. Anything below £800 seems a gift.

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With gold back at £834 I think it could be time to start buying again. I'm thinking a pyramid of buys of increasing size every £10 down from here. Anything below £800 seems a gift.

I am watching carefully too. I still have over 50% of my SIPP to invest. :)

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A few observations.

 

1. Goldseek radio (GSR) have introduced a new x-list Exploder stock list, which comprises of mostly penny stocks to which Chris Waltzek admitted. This very similar to what picks I have (UK picks http://illuminatedcapital.blogspot.com/ ). I have no subscription to the x-list Exploder list ; http://radio.goldseek.com/

 

It has been so successful in the last 6 months "no back testing is needed", it seems next weeks GSR podcast "may be the last". After "letters" and call ins - 21st Jan 2011

 

2. Small caps are in a new bull trend - how long this will last I do not know.

 

AIM All share small cap index (UK) http://bigcharts.marketwatch.com/charts/bi...&mocktick=1

 

3. Why is gold correcting in the first quarter, a time when gold should be strong? Don't know. It is possible, there's profit taking and puting funds into gold stocks which have been largely lagging.

HUIG.jpg

 

4. Why are small caps in general going up? GSR states IT, Biotech, mining are going up. Perhaps as people move away or been hit hard by capital investments in real estate, and small investment in smallcaps are much more an affordable option.

 

Originally posted here: http://www.greenenergyinvestors.com/index.php?showtopic=9343

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Gold in GBP has bolted upwards since the poor UK GDP figures were released at 9:30 this morning. Who knows, but we may have had the bottom in GBP terms.

 

My pyramid buy orders grabbed some at £834 as mentioned earlier.

Could be that was the low and the rest of those buy orders never get filled now :(

Ah well at least I have a big core position and I'm prepared for any further weakness if we get it

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Maybe that was the bottom today and yesterday.

 

Off to new highs? Like the rest of the commodities sector?

 

I dont want to "count my golden chickens before they hatch" but gold in GBP bounced of the 200 day moving average (834) both yesterday and today. Glad I bought a little at those lows but positioned to take advantage if I am wrong. I also bought GDXJ which had a decent 5% odd bounce today too.

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Au forming a 'doomed house'?

 

$1250 possibly on the cards?

 

Gold has formed very ugly technical patterns both in the long-term and the short-term. In the short-term we have what looks like a dome top forming.

 

http://www.kitco.com/ind/Summers/jan262011.html

 

Important to note that the author of the above article then goes on to say:

 

Let me be blunt here. If Gold falls to $1,250 per ounce and Silver falls $25 per ounce it’s time to BUY WITH BOTH HANDS.
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Gold prices, silver prices continue to suffer on ETF flight

 

Wednesday, 26 January 2011 21:36

 

Gold prices fell for a fourth straight session on Tuesday, shedding $2.03, or 0.15%, to settle at $1332.32.

 

Prices continue to fall steadily after decisively breaking below the $1360 support level last week, confirming the triple top near $1425.

 

Silver ETF holdings have not been falling off as dramatically as those for gold, but they have been falling as well.

 

"Silver ETP holdings also suffered net outflows of 30 tonnes, keeping January on track to be the weakest month for silver flows on record. Separately, the latest weekly ECB statement showed no gold had been settled during the week-ended 21 January." says Cooper.

 

http://www.economy-news.co.uk/gold-prices-...s-26201101.html

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