GOLD

[fitkid]

It is very debatable wether the US actually still holds 8000 tonnes of unencumbered gold, many believe that what they actually hold these days is worthless paper promises from the bankrupt (mark2market) bullion banks after their years of leasing gold out in the suppression scheme.

 

NO Country (artificial political construct) owns any Au.

The central banks of issue own and hold the gold and they are ALL privately owned entities by shareholders.

The names of which should be all but too familiar to GEI posters.

 

http://video.google.com/videoplay?docid=-3...62173505156201#

 

Eustace Mullins - Secrets of the Federal Reserve

1:31:25 - 2 years ago

Eustace Mullins "The Secrets of the Federal Reserve" Recorded during a visit to Hawaii around the year 1989, this lecture presents a unique opportunity for you to see and hear this remarkable man lay out the shocking truth about the privately-owned corporation known as the Federal Reserve System. There is also a fascinating Q & A session after the talk.

[fitkid]

http://www.chinadaily.com.cn/cndy/2011-02/...nt_12085402.htm

 

Malls witnessing gold rush as shoppers fear inflation

 

By Xu Fan (China Daily)

 

Malls witnessing gold rushas shoppers fear inflation

 

Jewelers at shopping malls across the capital are witnessing a gold rush as residents spooked by inflation fears look to protect their money.

 

Statistics from Beijing Caibai, the city's largest jewelry store, show sales of gold and other jewelry have totaled about 4 billion yuan so far this year, a 70-percent increase year-on-year.

 

Wang Chunli, general manager, told METRO that hundreds of customers are lining up outside every day to buy gold accessories, such as necklaces and rings. To cope with demand, the store has even introduced a string-weave service, she said, adding: "We've also arranged experienced staff to be on duty and increased the number of security guards."

 

After seeing the enthusiasm for gold investment, insiders predict prices will continue to rise this year.

 

Zhou Xiangrui, deputy general manager of Guo Hua, an established gold and jewelry store, even suggested that the surging demand could set a new record, saying: "The price is estimated to increase by 10 percent this year."

 

The price has already reached 338 yuan a gram at Caibai and 375 yuan a gram at Beijing branches of Chow Tai Fook and Chow Tai Seng, according to data from cngold.org, a popular gold investment website.

 

Concern over the volatile conditions in the Middle East and the debt crises in Europe could also impact gold prices, said Ji Zhiguo, an analyst the Beijing Gold Trade Center. "This year we might see some investors purchasing more than 10 kilograms of gold bars again," he said. "A booming gold market coupled with a stable price increase could prompt more individuals to rush in and invest."

 

Gold sales in large shopping malls citywide increased by at least 40 percent year-on-year during the first two months of 2011, Legal Mirror reported.

 

According to China Central Television, about 40 investors are rushing to purchase gold bars every day at the Wang Feng shopping mall in the Xinjiekou area, with most snapping up several kilograms at a time.

 

Wang Qiming, 34, who lives in Haidian district, said he has purchased both gold bars in malls and paper gold online. "The capital has limits on house and car purchases, and it might be hard to preserve the value of my assets if I save cash in a bank account. So, I've started to focus on gold investment," he said, explaining that he plans to spend 300,000 yuan on 100 grams of gold bars.

 

"Stock markets change very fast and are not stable," said Wang. "Gold investment seems much safer."

 

A report released by the World Gold Council at the end of 2010 said China is the strongest market for gold investment and gold accessory purchase.

 

China Daily

[PricedOutNative]

 

I take it ChinaDaily are state controlled? Why are they publishing an article like this?? Why are they undermining their own currency?

 

 

http://www.chinadaily.com.cn/cndy/2011-02/...nt_12085402.htm

 

Malls witnessing gold rush as shoppers fear inflation

 

By Xu Fan (China Daily)

 

Malls witnessing gold rushas shoppers fear inflation

 

Jewelers at shopping malls across the capital are witnessing a gold rush as residents spooked by inflation fears look to protect their money.

 

Statistics from Beijing Caibai, the city's largest jewelry store, show sales of gold and other jewelry have totaled about 4 billion yuan so far this year, a 70-percent increase year-on-year.

 

Wang Chunli, general manager, told METRO that hundreds of customers are lining up outside every day to buy gold accessories, such as necklaces and rings. To cope with demand, the store has even introduced a string-weave service, she said, adding: "We've also arranged experienced staff to be on duty and increased the number of security guards."

 

After seeing the enthusiasm for gold investment, insiders predict prices will continue to rise this year.

 

Zhou Xiangrui, deputy general manager of Guo Hua, an established gold and jewelry store, even suggested that the surging demand could set a new record, saying: "The price is estimated to increase by 10 percent this year."

 

The price has already reached 338 yuan a gram at Caibai and 375 yuan a gram at Beijing branches of Chow Tai Fook and Chow Tai Seng, according to data from cngold.org, a popular gold investment website.

 

Concern over the volatile conditions in the Middle East and the debt crises in Europe could also impact gold prices, said Ji Zhiguo, an analyst the Beijing Gold Trade Center. "This year we might see some investors purchasing more than 10 kilograms of gold bars again," he said. "A booming gold market coupled with a stable price increase could prompt more individuals to rush in and invest."

 

Gold sales in large shopping malls citywide increased by at least 40 percent year-on-year during the first two months of 2011, Legal Mirror reported.

 

According to China Central Television, about 40 investors are rushing to purchase gold bars every day at the Wang Feng shopping mall in the Xinjiekou area, with most snapping up several kilograms at a time.

 

Wang Qiming, 34, who lives in Haidian district, said he has purchased both gold bars in malls and paper gold online. "The capital has limits on house and car purchases, and it might be hard to preserve the value of my assets if I save cash in a bank account. So, I've started to focus on gold investment," he said, explaining that he plans to spend 300,000 yuan on 100 grams of gold bars.

 

"Stock markets change very fast and are not stable," said Wang. "Gold investment seems much safer."

 

A report released by the World Gold Council at the end of 2010 said China is the strongest market for gold investment and gold accessory purchase.

 

China Daily

 

[G0ldfinger]

I take it ChinaDaily are state controlled? Why are they publishing an article like this?? Why are they undermining their own currency?

The Chinese have encouraged people to buy gold before. The rationale is simple: they need an inflation outlet. Better gold at $100,000/oz than 1-bed flats in Shanghai at $1,000,000 a piece.

 

Now think of the Yellow Sea of Chinese savings trying to go through the tiny hose of the international gold market. The resulting prices will be spectacular.

[jsr]

The Chinese have encouraged people to buy gold before. The rationale is simple: they need an inflation outlet. Better gold at $100,000/oz than 1-bed flats in Shanghai at $1,000,000 a piece.

 

Now think of the Yellow Sea of Chinese savings trying to go through the tiny hose of the international gold market. The resulting prices will be spectacular.

 

GF, any time I begin to question if gold is overheated, I can always rely on your comments to put me back on the right track.

[marceau]

In these euphoric times a voice of doom, placed here as a counterpoint to current bullishness. It's always worth taking a look at arguments against your current position.

 

This particular argument does strike me as complete crap, but I thought I'd stick it out there nonetheless.

 

http://www.kitco.com/ind/Schmidt/mar072011.html

 

Fed's gonna raise rates lol. What, REAL ones? Whoops, didn't think so.

[Errol]

They would have to raise rates to 8-9%+ to have any impact.

[Nigel Watson]

They would have to raise rates to 8-9%+ to have any impact.

 

 

And that would cause massive defaults, leading to the banks crashing yet again

 

so, it won't happen!

 

There's a greater chnace of a UFO landing on the Whitehouse lawn

 

Nanu nanu - Shazbert!

[G0ldfinger]

If the Fed raises by 0.25%, something will sell off by means of stupid hedge fund trading. A Pavlov thing. A few days later it will be back up.

[fitkid]

They would have to raise rates to 8-9%+ to have any impact.

More than that to offer any real advance to savers on current REAL inflationary pressures let alone the future levels.

 

 

Federal Reserve chairman Paul Volcker very sharply increased interest rates from 1979-1983 in what was called a "disinflationary scenario." After U.S. prime interest rates had soared into the double-digits, inflation did come down; these interest rates were the highest long-term prime interest rates that had ever existed in modern capital markets

 

The Fed began raising interest rates in 1977, and the American economy tipped into recession in 1980, at which point the central bank took its foot off the brakes. But inflation rates continued to rise, and so shortly after the economy recovered (briefly) in July of 1980, Mr Volcker orchestrated a series of interest rate increases that took the federal funds target from around 10% to near 20%.

 

Year Inflation Unemployment

1970 5.7 5.0

1971 4.4 6.0

1972 3.2 5.6

1973 6.2 4.9

1974 11.0 5.6 < First oil crisis

1975 9.1 8.5

1976 5.8 7.7

1977 6.5 7.1

1978 7.6 6.1

1979 11.3 5.9 < Second oil crisis

1980 13.5 7.2

1981 10.3 7.6

1982 6.2 9.7

1983 3.2 9.6

1984 4.3 7.5

 

ADD the CHINDIA dynamics and this is going to be UNBELIEVABLE.

[d2thdr]

They would have to raise rates to 8-9%+ to have any impact.

 

 

Are you sure?

 

 

 

 

 

Here is what Richard Maybury has to say;

And by that measure,I think virtually the whole

economy is malinvestment. During its 94 years of

existence, the Fed has injected so many dollars that

hardly anything is where it should be, doing what it

ought to, at the correct prices.

 

If these estimates are anywhere at all in the ballpark,

they mean we may be close to the end point of

the channel. If the Fed does not do additional massive

injections, we will fall into a depression, but if

they do make these injections, we'll go into a runaway

inflation.

 

Any injection big enough to avert a depression

triggers runaway inflation.

 

Please read that last sentence again, I

think it describes our present situation.

 

[Pluto]

Meanwhile back in the states......

 

http://www.usmint.gov/pressroom/?action=pr...ase&id=1219

 

WASHINGTON - The United States Mint today announced that it is requesting public comment from all interested persons on factors to be considered in conducting research for alternative metallic coinage materials for the production of all circulating coins.

[G0ldfinger]

... conducting research for alternative metallic coinage materials for the production of all circulating coins.

Mwuahahah. Apparently, they can't see the trees for the forrest.

[Schaublin]

Standard article in the Telegraph for the sheeple to frighten them into not buying gold while there is still time to do so.

 

http://www.telegraph.co.uk/finance/persona...overheated.html

 

The article is actually an insult to the intelligence (but I suppose most of them are). Firstly claiming that gold is overbought and heading for a crash and then a few sentences later saying If you bought gold in the Eighties, for example, it hasn't proved to be the most effective hedge against inflation since then. If it had kept pace with prices, it would now be worth about $2,600 an ounce.

 

So, it is both overbought but lagging inflation

[Nigel Watson]

Standard article in the Telegraph for the sheeple to frighten them into not buying gold while there is still time to do so.

 

http://www.telegraph.co.uk/finance/persona...overheated.html

 

The article is actually an insult to the intelligence (but I suppose most of them are). Firstly claiming that gold is overbought and heading for a crash and then a few sentences later saying If you bought gold in the Eighties, for example, it hasn't proved to be the most effective hedge against inflation since then. If it had kept pace with prices, it would now be worth about $2,600 an ounce.

 

So, it is both overbought but lagging inflation

 

Yes, I thought that too. It just goes to show how stupid most people really are. What I notice down in the South East is that there's a lot of 'Tim, nice but dims' running around the place. The City recruits from a very limited pool of individuals (white and independently educated). They're also trained up to be obiedient followers of the consensus - if it's on Radio 4, it must be true. Quite interesting really - the last part of British culture that buys into deference.

 

So, yes, the Telegraph readers won't be buying gold anythime soon - they're more likely to do whatever Steff Flanders tells them to do. Gold's in a bubble, yes, must be true, cos the Telegraph tells me it is. They can't think things through for themselves. They're blind consensus followers.

 

Of course, they'll get their backsides kicked and will have to learn critical thinking the hardway

[Concrete Jungle]

Make your mind up Torygraph!

 

Gold and silver beat all other assets in 2011, Lloyds TSB's Assetwatch survey finds

 

Precious metals were the top performing investment for the second consecutive year last year, with their value soaring by 42pc as people sought a safe haven from inflation, research has indicated.

It was the fourth time in the past five years that precious metals have topped the tables for the best asset class, as continuing uncertainty over the prospects for the global economy caused investors to flock to gold, silver and platinum, according to Lloyds TSB's Assetwatch survey.

 

The report coincided with a new record high in the gold price. The metal reached $1,445.70 an ounce on Monday – a rise attributed by traders to the unrest in the Middle East.

 

The value of precious metals has surged by 365pc during the past 10 years, Lloyds TSB's survey found, nearly double the increase for the next best performing asset during the same period – residential property, which made a gain of 198pc.

 

The steep increase in precious metal prices seen during 2010 was driven by silver, with its value jumping by 80pc, significantly outstripping the 29pc rise in the price of gold and the 20pc increase for platinum.

 

Lloyds said the price of silver had been boosted by pressure on the supply of the metal, as demand remained high from both investors and the industries which use it.

 

and

 

Ten ways to invest in precious metals

 

Precious metals such as gold and silver beat all other assets last year. Gold is the easiest for private investors to buy; here are 10 ways to go about it.

 

1. Gold Bars

Bars come in metric sizes, and are based directly on that day's gold price, plus a premium for manufacture and marketing. The smaller the bar, the bigger the premium.

 

 

2. Sovereigns

One popular way to own gold is by buying gold coins, with 22-carat gold sovereigns the favourite with British investors. Sovereigns dating from about 1887 and up to 1982 are currently the best bet. Bullion coins recognised as UK legal tender are exempt from capital gains tax.

 

 

3. Krugerrands

Another popular option is to buy South African Krugerrands. The smallest is a 0.1oz coin, which costs about £105 at the time of writing.

 

 

4. Exchange-traded funds

ETFs (which are not technically funds, because they follow a single security) are available for gold, silver, platinum and palladium. They are traded on the London Stock Exchange and essentially track the price of the metal. ETFs can be traded daily – all you pay is the dealing charge of around 0.4pc.

 

 

5. Unit trusts and investment trusts

These are few and far between, the most popular being BlackRock Gold & General, which invests in the shares of gold mining companies as well as other commodity businesses. Advisers reckon general commodity funds such as JPM Natural Resources could also do the job for private investors as they dabble in gold-related stocks. Gold mining equities tend to be more volatile than the gold price.

 

 

Related Articles

• Gold and silver beat all other assets in 2011

   

  08 Mar 2011

• 'There is a danger that people are buying gold now when prices are overheated'

   

  08 Mar 2011

6. Gold accounts

Gold bullion banks offer two types of gold account – allocated and unallocated. An allocated account is effectively like keeping gold in a safety deposit box and is the most secure form of investment in physical gold. The gold is stored in a vault owned and managed by a recognised bullion dealer or depository.

 

With an unallocated account, on the other hand, investors do not have specific bars allotted to them. Traditionally, one advantage of unallocated accounts has been the absence of storage or insurance charges, because the bank reserves the right to lease the gold out.

 

 

7. Gold shares

You can of course buy individual shares of companies that either trade or mine gold.

 

 

8. Jewellery

While thousands of items of gold jewellery change hands every year, they are not considered serious investments.

 

India devours 800 tonnes of bullion, more than 30pc of annual global gold mine production, mostly as jewellery. But although over the long term these jewels should hold their value and rise in line with inflation, manufacturing costs and the jewellers' markup mean they would sell for a fraction of the purchase price for the first few years of ownership.

 

 

9. Gold certificates

Historically, gold certificates were issued by the US Treasury from the Civil War until 1933. Denominated in dollars, the certificates were used as part of the gold standard and could be exchanged for an equal value of gold.

 

Nowadays, gold certificates offer investors a method of holding gold without taking physical delivery. Issued by individual banks, particularly in countries such as Germany and Switzerland, they confirm an individual's ownership while the bank holds the metal on the client's behalf.

 

The investor avoids storage and personal security problems, and gains liquidity by being able to sell portions of the holding by simply telephoning the custodian.

 

The Perth Mint also runs a certificate programme that is guaranteed by the government of Western Australia and is distributed in a number of countries (www.perthmint.com.au/investment_certificate.aspx).

 

 

10. Structured products

A number of structured products linked to commodities have been launched. They are either baskets of commodities or individual commodities such as sugar, oil, platinum or gold.

 

Structured products are typically five-year plans that aim to pay you a set return and limit your downside risk. Structured products can be complicated so ensure you read the small print, or preferably get expert advice.

 

Both from todays online issue.

[Perishabull]

from Zerohedge

 

The Driver For Gold You’re Not Watching

 

 

 

According to estimates by Shayne McGuire in his new book, Hard Money; Taking Gold to a Higher Investment Level, the typical pension fund holds about 0.15% of its assets in gold. He estimates another 0.15% is devoted to gold mining stocks, giving us a total of 0.30% – that is, less than one third of one percent of assets committed to the gold sector.

[fitkid]

from Zerohedge

 

The Driver For Gold You’re Not Watching

 

 

 

DAMN.

 

That 'group think' has even infiltrated the pension funds. :lol:

[G0ldfinger]

from Zerohedge

Great chart.

[G0ldfinger]

http://af.reuters.com/article/metalsNews/idAFTOE72802F20110309

China adviser says Beijing should buy more gold

Wed Mar 9, 2011 5:02am GMT

 

BEIJING, March 9 (Reuters) - China should use some of its $2.85 trillion foreign exchange reserves to buy more gold XAU=, a government adviser was quoted as saying by local media reports on Wednesday.

 

Li Yining, a senior economist at Peking University and member of the Chinese People's Political Consultative Committee, an advisory body to the national parliament, said that China should use the precious metal to hedge against risks of foreign currency devaluations.

 

"China should increase its gold reserves appropriately, and China must take every chance to buy, especially when gold prices fall," Li was quoted by the official Xinhua news agency as saying.

 

His view that Beijing should diversify its foreign exchange reserves, the world's largest, into commodities is nothing new. Many other academics have publicly called on Beijing to do so.

 

But Li's views may carry more weight than most. Many of his former students are now high-ranking officials, including Chinese Vice Premier Li Keqiang, who is seen as Premier Wen Jiabao's likely successor in 2013.

[harvipark]

Is a fair value for gold nearly $4,000?

 

Gold is hitting record dollar highs once more but should an ounce really be worth $4,000 - almost three times the $1,400 range it has been trading around?

 

The bold claim has been made by Paul Tustain, the founder of gold investment service BullionVault.com, who reckons the market still ‘significantly undervalues’ the shiny stuff. His view, which is obviously heavily weighted in favour of gold, is that inflation and potential financial risks mean gold has a ‘fair value’of $3,844 an ounce.

 

That’s a mighty big number, considering gold is trading at $1,430 at the time of writing, having hit a record spot closing high of $1434.5 on 2 March.

 

http://blogs.thisismoney.co.uk/2011/03/is-a-fair-value-for-gold-nearly-4000.html

[carbon junkie]

Miners getting a good spanking today!

 

Looks like if you want to halt gold and silvers rise these days you've got to take down the whole market.

 

I expect to hear the sound of QE3 begging soon.

[kernull]

Hi again folks,

 

good setup to short gold right now:

http://seekingalpha....h-setup-is-here

 

p.s.

I see you have got new design of the website, cool!

[Schaublin]

Hi again folks,

 

good setup to short gold right now:

http://seekingalpha....h-setup-is-here

 

p.s.

I see you have got new design of the website, cool!

 

 

Haven't you been shorting gold and silver for the past 4 years? How has that worked out for you?

[Errol]

Hi again folks,

 

good setup to short gold right now:

http://seekingalpha....h-setup-is-here

 

p.s.

I see you have got new design of the website, cool!

 

Oddly, he seems to think gold is in a bubble, which is just complete nonsense.