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Woh, still coming down from yesterday :-) Sadly London closed before the real liveliness kicked in late on in the session...

 

Plotting the last 5 years, and seeing what happened yesterday, it looks like we're going exponential...

 

 

 

 

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Chris & Woody, thanks for the info :D

I'm going to look into this more.

 

----------------

 

Mentioned by Jim S, and a potential big one:

 

 

Dollar crisis looms, says Nobel laureate Mundell

June 3, 2008

http://www.reportonbusiness.com/servlet/st...y/Business/home

 

VALENCIA, Spain — A major dollar crisis could come within five years and China is discussing reforms to the global monetary system to protect its $1.6-trillion (U.S.) reserves pile, says Nobel Prize-winning economist Robert Mundell.

 

Mr. Mundell, who has regular contacts with Beijing officials, said they are considering proposing ways to fix major currencies including the dollar and the euro, in a system similar to the one which operated under the Bretton Woods agreement from the end of World War Two until the 1970s.

 

“There's no doubt about it that inside the Chinese government there's a lot of discussion going on. I'm not sure how they're doing it but I know they're going to get an input from me,” Mr. Mundell told Reuters in an interview.

 

Without reform, the global monetary system is headed for a dollar crisis within years, Mr. Mundell believes.

 

http://en.wikipedia.org/wiki/Bretton_Woods_system

 

The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value—plus or minus one percent—in terms of gold and the ability of the IMF to bridge temporary imbalances of payments. In the face of increasing strain, the system collapsed in 1971, following the United States' suspension of convertibility from dollars to gold.

 

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Best news in a very long time!

 

ARLA: Average rent down 9%

Monday, 09 Jun 2008 00:01

 

The price of rented accommodation in the UK property market has experienced a sharp downward correction, despite ongoing turmoil caused by the liquidity crisis.

...

The main cause of these is the developments of new blocks of two-bedroomed flats coming on-stream.

http://www.aboutproperty.co.uk/news/proper...036;1226103.htm

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ARLA: Average rent down 9%

 

This HPC is going to be massive.

Yes, this one will be epic, will go down in history.

 

I am just reading this thread here. Scary stuff!

Nothing Is Selling In My Home Town For Between 100k And 200k, Spoken to my local EA.

http://www.housepricecrash.co.uk/forum/ind...=78942&st=0

 

Edited to add: An average UK house will be NO MATCH for 100 oz gold in a few years.

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Yes, this one will be epic, will go down in history.

 

I am just reading this thread here. Scary stuff!

Nothing Is Selling In My Home Town For Between 100k And 200k, Spoken to my local EA.

http://www.housepricecrash.co.uk/forum/ind...=78942&st=0

 

Edited to add: An average UK house will be NO MATCH for 100 oz gold in a few years.

 

I have read it already, I get the feeling the HPC will after the job losses and the bankrupsies be terrible for nearly everybody.

 

The boom has been so big the bust will be of similar proportion IMO

 

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Posted a few days ago...... A new article.... OMG !!!!!!!!!!!!!!!!! :o:o

 

http://www.dailymail.co.uk/news/article-10...lice-raids.html

Going on that article it seems that there was very good reason (after 2 years of investigation) to get a court warrant and raid that company.

 

This is nothing like GoldMoney and BullionVault who check their customers' identities and store simply bullion.

 

And it seems they're trying not inconvenience innocent customers too much:

'The next stage is to try to establish who owns the boxes. We also realise that this operation has had a significant impact on innocent members of the public who have used these facilities for perfectly legitimate purposes.'

 

He said that so far, 850 people have come forward to claim ownership of boxes at the centres and officers have already given back property in a number of urgent cases.

 

These have included a woman who wanted to recover some jewellery from a box because she was getting married, a man who needed his passport to travel abroad and a jeweller who wanted items from his box for a special exhibition.

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Why do you think it's "Perth Mint" ?

I can't see anything about that.

 

Sorry I wasn't clear. Perth Mint has nothing todo with this story.

 

I was just thinking about all the negative stories regarding the Perth Mint and the paper markets in general not being backed by enough physical and the powers tobe targetting ( in this story ) a storage facility of privately owned physical. :unsure:

 

I cant see why such a high profile and agressive attack was taken on these Safe Deposit boxes. Yes if criminal activity was suspected by a few custoners, why couldnt a few agents just turn up at the offices and freeze said boxes ?? Why close the roads and have such heavy handed tactics and impound all boxes ??? Worrying times :blink:

 

 

 

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Sorry I wasn't clear. Perth Mint has nothing todo with this story.

 

I was just thinking about all the negative stories regarding the Perth Mint and the paper markets in general not being backed by enough physical and the powers tobe targetting ( in this story ) a storage facility of privately owned physical. :unsure:

 

I cant see why such a high profile and agressive attack was taken on these Safe Deposit boxes. Yes if criminal activity was suspected by a few custoners, why couldnt a few agents just turn up at the offices and freeze said boxes ?? Why close the roads and have such heavy handed tactics and impound all boxes ??? Worrying times :blink:

 

OK. I thought for a minute we'd found the reason for Jim Sinclair's warning.

 

I agree with your points. In the last silver market article I'm trying to finish reading (!), it talks about "fractional reserve silver" :lol: :lol: :lol:

 

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1973 and 1979 oil crisis written all over this.

Heads of states only waking up to this NOW.

 

http://www.bloomberg.com/apps/news?pid=206...&refer=home

The world's biggest energy consumers, including South Korea and the U.S., issued a statement yesterday from a Japan summit expressing ``serious concern'' over record oil prices and urged a shift to alternative sources of fuel. :o

 

``We're facing great difficulty as the world's fifth- largest oil consuming nation while we don't produce a drop of oil,'' :o Prime Minister Han Seung Soo said at a briefing in Seoul today. ``The government will do its best to help reduce the burden from rising oil prices on consumers.''

 

It's amazing.

http://www.youtube.com/watch?v=xX4br4w9g5E

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1973 and 1979 oil crisis written all over this.

Yes, I think I heard Saudi Arabia are introducing a $2.50 surcharge on a barrel of oil in July. I hadn't heard about this, though my GF had!

smacks of the unilateral price increases of the 70's. Who can blame them? last time their fallback was to price oil in gold.

 

from Wikipedia, 1973 oil crisis:

http://en.wikipedia.org/wiki/1973_oil_crisis

The OPEC cartel issued a joint communique stating that forthwith they would price a barrel of oil against gold
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1973 and 1979 oil crisis written all over this.

 

Just dug up this old (2000) article:

Is Gold Dead?

 

Note the gold/oil ratio in those years, it overshot the historic mean by a significant margin - 35 in 1973, 20 in 1979!!!

 

Lovely quote at the end too:

“Gold has worked down from Alexander’s time … When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory.” - Bernard M. Baruch (1870 - 1965), famous speculator, financier, statesman, and advisor to several United States Presidents

 

Woody

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...

Lovely quote at the end too:

 

“Gold has worked down from Alexander’s time … When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory.” - Bernard M. Baruch (1870 - 1965), famous speculator, financier, statesman, and advisor to several United States Presidents

 

Woody

This is one for Magpie. But then, she might know better... :)

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This is one for Magpie. But then, she might know better... :)

 

He, not she...

 

A few thoughts on that article.

 

1) "The average price of gold over the last thirty years, in today’s dollars, has been $506 per ounce"

 

Interesting - now that we're a good way above that (even in 2000 dollars), goldbugs are having to find new justifications to suggest that we are still below the natural level.

 

2) Oil-gold ratio - I've said before I think there are pretty compelling reasons why this should shift in oil's direction as fears of oil's decline grow. Having said that I don't think the $2000-3000 for gold indicated by current gold prices and the long term average is impossible over the next few years if global conditions become chaotic enough.

 

3) The Bernard M. Baruch quote sounds impressive, but actually it's a classic weak argument. Gold has been currency for that time, but that doesn't mean it always functioned prefectly or that it was the perfect solution. Gold as currency solved some problems and created others, just like any currency system would.

 

An equivalent argument would be to say "Monarchy has worked down from ancient times … When something holds good for thousands of years I do not believe it can be so because of prejudice or mistaken theory" and then use that to argue for a return to absolute monarchy as a solution to the problems of democracy. I don't think anyone would accept that as a decent argument.

 

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Gold will go to the moon.

Maybe oil will reach Mars just as gold reaches the Moon.

 

On the historical graph maybe we are similar to around '76 to '77. I have a feeling there could be quite a delay before gold catches up to the average ratio. Of course, this would mean that now is an excellent buying opportunity.

 

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