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An article in The Guardian about gold:

 

The Bank of England, the US Federal Reserve and the Bank of Japan have pumped hundreds of billions of dollars into the world economy in a bid to prevent a global slump – and that has helped pump up the gold price.

 

...

 

But predicting the price of gold is essentially a mug's game

 

...

 

32.9

Tonnes of gold bullion owned by BullionVault's 45,500 users, worth over $1.68bn – more than the gold reserves of most countries. UK households make up half those users.

£562m

Value of physical gold owned by UK households via BullionVault - 10 times as much as they held in March 2008.

819%

Increase of number of gold bullion traders in the last five years.

 

Apparently we are all mugs :rolleyes:

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An article in The Guardian about gold:

Apparently we are all mugs :rolleyes:

Er... umm.

Who is the real mug here?:

 

predicting the price of gold is essentially a mug's game –

Gordon Brown famously lost out by selling large chunks of the UK's gold reserve between 1999 and 2002, getting a lowly price of between just $250 and $300 an ounce.

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I don't understand your meaning here, but to be clear on mine:

 

According to the article predicting the price of gold is not a good idea, therefore the article is implying that one should not invest in gold. My personal opinion is that those who invested in gold have done reasonably or very well and therefore the article is wrong, but it is good to see it getting more mention in the MSM non-the-less.

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Poor sentiment and at the bottom of it trading range will hopefully mean maybe one more minor drop to go before what is hopefully the next major move upwards. I got trapped in at a higher price and so I am waiting and twiddling my fingers until it recovers - why oh why didn't I choose the blue pill?

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For anyone who hasn't seen it this is an interesting development in gold.

 

Largest Dutch bank defaults on physical gold deliveries to customers

April 3, 2013

By: Kenneth Schortgen Jr

 

Last week, a rubicon was crossed in the precious metals market as one of the largest banks in Europe defaulted on their gold contracts, and informed their customers there was no physical gold available for delivery.

 

ABN AMRO, the largest Dutch bank in the Eurozone, issued a letter to their gold contract customers of failure of delivery, and instead will pay account holders in a paper currency equivalent to the current spot value of the metal.

 

ABN AMRO, the biggest Dutch bank, has sent a letter to its clients stating that they will no longer be able to take physical deliveries of the gold they have bought through ABN. Instead they are offered money at the current market rate for gold. Basically, instead of owning a risk free, physical asset (a gold bar or a gold coin), the bank’s clients now own a monetary claim on ABN AMRO, being exposed to the bank’s credit risk. – Voice of Russia

 

Over the past two months, there has been a concerted effort by the major Western banks to bring down the price of gold and silver, even as countries like Russia, Iran, and China continue to accumulate the physical metal in large quantities. Like the folly of betting against the stock markets when the Fed is pumping up equities with $85 billion per month, going against the J.P. Morgan silver short machine in the futures market has been a losing proposition for silver bulls.

 

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Saw that.

 

Shock that ABN AMRO could not find physical gold in this slow market.

What of the market was hot ?!

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The metal is in “bubble territory” and will fall to $1,375 by the end of the year as a U.S. recovery leads to rising interest rates, Societe Generale SA said in an April 2 report. Credit Suisse cut its 2013 forecast by 9.2 percent to $1,580 two days ago and Goldman Sachs predicts prices will be at $1,600 in six months. Gold averaged a record $1,669 last year.

......

Gold will climb to an average of $1,800 in the fourth quarter on demand for an alternative currency and protection from Europe’s debt crisis, Commerzbank said in a March 21 report. Low real interest rates and global liquidity will remain dominant drivers, Standard Bank said in a report last month, forecasting prices as high as $1,780 in the third quarter.

.......

The plunge has pushed gold’s 14-day relative strength index to 28.4, below the level of 30 that indicates to some analysts who study technical charts that a rebound may be imminent. It fell into a bear market in June 2006 and August 2008, before as much as doubling to a record $1,921.15 in September 2011.

 

http://www.bloomberg...ommodities.html

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Screenshot2013-04-08at120232PM_zpsd284b079.png

 

 

 

 

Trust in Gold Not Bernanke as U.S. States Promote Bullion

 

By Amanda J. Crawford - Apr 8, 2013 6:01 AM GMT+0200

 

 

Distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender.

 

Lawmakers in Arizona are poised to follow Utah, which authorized bullion for currency in 2011. Similar bills are advancing in Kansas, South Carolina and other states.

 

The Tea Party-backed measures are mostly symbolic -- you still can’t pay for groceries with gold in Utah. They reflect lingering dollar concerns, amplified by the Fed’s unconventional moves in recent years to stabilize the economy, said Loren Gatch, who teaches politics at the University of Central Oklahoma.

 

“The legislation is about signaling discontent with monetary policy and about what Ben Bernanke is doing,” said Gatch, who studies alternative currencies at the Edmond, Oklahoma-based school. “There is a fear that the government, or Bernanke in particular and the Federal Reserve, is pursuing a policy that will lead to the collapse of the dollar. That’s what is behind it.”

 

Bernanke has pushed interest rates to near zero since the 18-month recession that began in December 2007. The Fed said in March it would continue buying $85 billion in securities each month in a program known as quantitative easing that has ballooned its assets beyond $3 trillion and is aimed at keeping long-term borrowing costs low to support economic growth.

 

. . .

 

 

Texas Depository

 

In Texas, lawmakers are considering a measure supported by Republican Governor Rick Perryto establish the Texas Bullion Depository to store gold bars valued at about $1 billion and held in a New York bank warehouse. The gold is owned by the University of Texas Investment Management Co., or Utimco, which took delivery of 6,643 bars of the precious metal in 2011 amid concern that demand for it would overwhelm supply.

 

The proposed facility would also accept deposits from the public, and would provide a basis for a payments system in the state in the event of a “systemic dislocation in a national and international financial system,” according to the measure.

 

Should Texas take such a step, it would offer sovereign backing for deposits and make buying and storing gold easier, said Jim Rickards, senior managing director at Tangent Capital Partners LLC in New York and author of “Currency Wars: The Making of the Next Global Crisis.” He said the coin measures, while impractical, have symbolic value.

 

“We are seeing a distinct movement back to a world where gold is considered money,” Rickards said.

 

. . .

 

 

Tax Breaks

 

In Utah and some other states, the measures also eliminate state capital gains or other taxes on the coins.

Critics say the state measures are unwieldy. In Arizona, Senator Steve Farley, a Democrat, unsuccessfully offered an amendment that would have recognized as legal tender other state commodities, such as citrus fruit, as well as sunbeams. The amendment was intended to reflect the absurdity of the bill, said the 50-year-old lawmaker from Tucson.

“It is simply grandstanding to get people afraid that somehow President Obama’s agenda is going to drive us into hyperinflation and economic collapse,” Farley said. “We have enough real problems to deal with. I don’t see undercutting our entire financial structure as a priority.”

 

In Utah, officials haven’t yet figured out how to accept gold and silver for tax payments -- though some residents have asked to pay that way -- or integrate the precious metals into commerce, state Treasurer Richard Ellis said. Lawmakers have established a task-force to study implementing the law and to examine how the state can accept gold and silver, with their fluctuating values, for payment, Ellis said. He’s not optimistic that it will work, he said.

 

 

Regulatory Barriers

 

“People point to Utah and say we are leading the way, but nothing much has happened because regulatory hurdles have gotten in the way,” said Ellis, a Republican. If gold and silver is being used in the state as legal tender, it is probably only in transactions between individuals, he said.

 

The Utah Precious Metals Association, established after passage of the 2011 law to advocate for the use of gold and silver coins, has about two dozen members enrolled in a two month-old bill-pay service in which their accounts are held in gold, said Lawrence Hilton, the group’s chairman. Hilton envisions a future with an alternative monetary system based on precious metals in which merchants accept silver coin while gold mostly backs electronic transfers.

 

. . .

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I came up to a bearish sell signal on gold a few days ago in the private blogs section of this forum, goldman must be looking at the same price levels as I am. I can't believe it so I m waiting for a few more days of data.

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BE CAREFUL how you move gold

 

 

This is why you don’t want to move gold yourself…

 

by SIMON BLACK on APRIL 10, 2013

screen-capture-2.jpg

 

April 10, 2013

Santiago, Chile

A few days ago, Italian authorities stopped a man who was making his way across the border into Switzerland with his wife and three children.

They searched his car and found, literally, a ton of gold bars hidden in a floorboard storage compartment.

Needless to say, the gold was confiscated, the car was impounded, and the man was arrested, despite the fact that it’s perfectly legal to own and transport gold.

Now, the European Union does require that ‘cash’ in excess of 10,000 euros be declared when crossing borders.

Yet article II of EC regulation 1889/2005 states that “cash” for the purposes of declaration includes legal tender currency plus monetary instruments in bearer form– travelers cheques, promissory notes, bearer bonds, and stock certificates. Not gold. And certainly not gold bars.

So the man was actually well within his legal rights. But it didn’t matter. They nabbed him on ‘suspicion of money laundering.

===

/more: http://www.sovereign...yourself-11629/

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Gold, Silver ‘Bounces Likely To Be Sold’ – TD Securities

Kitco News - Apr 12 2013 7:53AM

 

WHY?

Gold is already massively oversold

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Now this is beginning to make sense:

 

(Mario Draghi, ex-Goldman: http://en.wikipedia.org/wiki/Mario_Draghi )

Draghi was then vice chairman and managing director of Goldman Sachs International and a member of the firm-wide management committee (2002–2005).[6]

 

and pieced together with this:

 

http://www.zerohedge.com/news/2013-04-12/mario-draghi-orders-cyprus-sell-gold-cover-bailout-shortfall

Mario Draghi Orders Cyprus To Sell Gold To Cover Bailout "Shortfall"

 

...13.9 tons, of its central bank gold. Today, we learn that this demand came from none other than the head of the ECB Mario Draghi. Bloomberg reports: "European Central Bank President Mario Draghi said the profits of any gold sales by the Cypriot central bank must be used to cover losses it may sustain from emergency loans to Cypriot commercial banks."

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