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I'll do my bit to add the 3 pages a day

 

Pinch Punch First day of the month :lol:

 

 

And on a more serious note http://www.ft.com/cms/s/0/bf8246aa-8f13-11...?nclick_check=1

 

Wealthy investors hoard bullion

By Javier Blas in Kyoto

 

Published: September 30 2008 19:00 | Last updated: September 30 2008 19:00

 

Investors in gold are demanding “unprecedented” amounts of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen.

 

Industry executives and bankers at the London Bullion Market Association annual meeting said the extent of the move into physical gold was unseen and driven by the very rich.

 

EDITOR’S CHOICE

Full coverage: Global financial crisis - Sep-30Banking’s crisis of confidence deepens - Sep-30Martin Wolf: Risking another depression - Sep-30Editorial Comment: Failure and blame game - Sep-30Full coverage: US elections 2008 - Sep-30Comment: Banking rules - tread carefully - Sep-30“There is an enormous pick-up in investment demand. I have never seen a market like this in my 33-year career,” said Jeremy Charles, chairman of the LBMA. “The gold refineries cannot produce enough bars.”

 

The move comes as fears grow among investors over the losses at investment vehicles previously considered almost risk-free, such as money funds.

 

Philip Clewes-Garner, associate director of precious metals at HSBC, added that investors were not flying into gold simply because they saw it as a haven amid Wall Street’s woes. “It is a flight into gold because it is a physical asset,” he said.

 

“Vault staff are also doing overtime,” another banker at the LBMA meeting said, adding that investors in some countries were paying premiums of up to $25 an ounce above the London spot price to secure scarce gold bars.

 

Spot gold prices in London on Tuesday traded at about $900 an ounce, more than 25 per cent above the level before Lehman Brothers’ collapse. Although some traders said the rush into physical gold could boost prices, others cautioned that prices were depressing jewellery demand, capping any price gain. Industry executives said gold refineries and government mints were working at full throttle to keep up with investor demand, but acknowledged they were suffering from shortages, particularly on coins.

 

Johan Botha, a spokesman for the Rand Refinery in South Africa, which manufactures the Krugerrand, the world’s most popular gold coin, said the plant was now running at full capacity seven days a week. “Even so, now and then we have shortages,” he said.

 

The Austrian mint, which manufactures the Vienna Philharmonic, a popular gold coin in Europe, said it had extended work to the weekends to accommodate soaring demand.

 

Last week, the US mint suspended the sale of its American Buffalo coin after it ran out of stocks.

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Ok I'll start with this just for laughs. Gold is a bubble, buy banks!!

 

http://www.cnbc.com/id/15840232?video=873003261

 

 

The Daily Mash, taking a xenophobic angle on recent events:

 

======================================================================

 

http://www.thedailymash.co.uk/news/busines...e-200809301290/

 

BASTARD AMERICANS RUIN YOUR LIFE

 

ALL your hopes and dreams were shattered by bastard Americans last night, just as you suspected they always would be.

 

Along with six billion other humans you were forced to rethink your life plan as one set of bastards rejected a bail-out for another set of bastards because they were worried about losing their seats when a third set of bastards goes to the polls in November.

 

Emma Bradford, an office manager from Luton said: "Whenever things were going well there was always this voice in the back of my mind saying, 'make the most of it because sooner or later it's all going to be completely fucked by some bastard Americans'.

 

"I just assumed I'd be horribly maimed as a knock-on from one of their insane, catastrophic wars, but instead they have, in the most beautifully co-ordinated fashion, demolished the system that provides me with a job, a home and the vague hope that life may not an elaborate waste of time.

 

"I'd applaud them, if only I wasn't so weak from all the nauseating terror."

 

Tom Logan, an engineer from Leeds, said: "I suppose I always knew America would eventually break the planet, like some ghastly, hyperactive toddler that gets hold of a mobile phone and then smashes it repeatedly against the edge of a table, but I never really thought it would affect me.

 

"But now, thanks to a combination of psychotic greed, political expediency and the sort of jaw dropping stupidity that makes you wonder if they actually know how to breathe in and out, I can look forward to a future of dysentry, burnt-out vans and an exciting range of low-fat meals, all of which - in some way or another - involve rodents."

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It's good to start the month with a smile:

 

"ALL your hopes and dreams were shattered by bastard Americans last night" :lol: :lol: :lol:

 

It's nice to see others contributing the monthly overview :D

 

I've just spent a 'little' while doing these, which follows on from the idea that TA is next to useless when the market's rigged (if you believe that).

I think it's nice to look at the big picture.

 

First the view from 1995:

GoldUS_1995to2008_081001.gif

 

I guess you could say "the long-term bull market is in tact".

 

 

Then just from 2003:

GoldUS_2003to2008_081001.gif

 

 

And an update to the chart I did a while ago which got some very positive replies.

The previous charts give it some context. I've chosen the Aug 2007 jumping off point as the starting point. Given that was the result of a very long consolidation period, I think that makes some sense.

 

GoldUS_Sep07toSep08_081001.gif

 

 

And just to put this whole market into context:

 

OfficialWolrdHoldHoardsVsUSDollar_1.gif

 

 

 

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Just received my 5 new 1/10 Maples (and, of course, some Sovs). Very cute. Also arranged for more funds for silver purchase through GoldMoney.

 

Global financial meltdown -- gold & silver on sale. Yeah, right! :lol: :lol:

 

These idiots. Sometimes I feel almost guilty. :lol:

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You may find this chart interesting. It's essentially an up-to-date version of Steve's 'Ten-thousand Bucks or Bust' chart that appeared towards the end of last month's Gold thread... except that it happens to be GBP-based.

 

goldgbplogtn4.th.png

 

It looks just as plausible I guess, but it clearly shows that gold will reach £10k by 2019...

 

So, $1 = £1 within (at most) a decade? :D

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Just received my 5 new 1/10 Maples (and, of course, some Sovs). Very cute. Also arranged for more funds for silver purchase through GoldMoney.

 

Global financial meltdown -- gold & silver on sale. Yeah, right! :lol: :lol:

 

These idiots. Sometimes I feel almost guilty. :lol:

Still waiting for my five 1/10 Oz maples ... :)

 

 

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I really hope you hold the real thing, not electronic or paper promises to deliver it.

 

http://www.ft.com/cms/s/0/692c787e-8f50-11...00779fd18c.html

Wealthy investors drain supplies of gold by hoarding bullion bars

 

Published: October 1 2008 03:00 | Last updated: October 1 2008 03:00

 

Investors in gold are demanding "unprecedented" physical levels of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen.

 

Industry executives and bankers at the London Bullion Market Association annual meeting said the extent of the move into physical gold was unseen and driven by the very rich.

 

"There is an enormous pick-up in investment demand. I have never seen a market like this in my 33-year career," said Jeremy Charles, chairman of the LBMA. "The gold refineries cannot produce enough bars."

 

The move comes as fears grow among investors over the losses at investment vehicles previously considered almost risk-free, such as money funds.

 

Philip Clewes-Garner, associate director of precious metals at HSBC, added that investors were not flying into gold simply because they saw it as a haven amid Wall Street's woes. "It is a flight into gold because it is a physical asset," he said.

 

"Vault staff are also doing overtime," another banker at the LBMA meeting said, adding that investors in some countries were paying premiums of up to $25 an ounce above the London spot price to secure scarce gold bars.

 

Spot gold prices in London yesterday traded at about $900 an ounce, more than 25 per cent above the level before Lehman Brothers' collapse. Although some traders said the rush into physical gold could boost prices, others cautioned that prices were depressing jewellery demand, capping any price gain. Industry executives said gold refineries and government mints were working at full throttle to keep up with investor demand, but acknowledged they were suffering from shortages, particularly on coins.

 

Johan Botha, a spokesman for the Rand Refinery in South Africa, which manufactures the Krugerrand, the world's most popular gold coin, said the plant was now running at full capacity seven days a week. "Even so, now and then we have shortages," he said.

 

The Austrian mint, which manufactures the Vienna Philharmonic, a popular gold coin in Europe, said it had extended work to the weekends to accommodate soaring demand.

 

Last week, the US mint suspended the sale of its American Buffalo coin after it ran out of stocks.

 

 

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You may find this chart interesting. It's essentially an up-to-date version of Steve's 'Ten-thousand Bucks or Bust' chart that appeared towards the end of last month's Gold thread... except that it happens to be GBP-based.

 

goldgbplogtn4.th.png

 

It looks just as plausible I guess, but it clearly shows that gold will reach £10k by 2019...

 

So, $1 = £1 within (at most) a decade? :D

 

It's interesting to see the same thing in GBP :D

 

I think there must be quite some uncertainty over the GBPUS$ future.

Suppose they both fall more or less together, and stays around 2, then you' be looking at ONLY £5,000 :P:lol:

 

 

I'd better repeat the US$ version:

 

GoldUS_080220_10000_prediction_log2.gif

 

 

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Just received my 5 new 1/10 Maples (and, of course, some Sovs). Very cute. Also arranged for more funds for silver purchase through GoldMoney.

 

Hi Goldfinger,

 

Why buy the Maples when Sovereigns are CGT free?

Please bear in mind i'm relatively new to all this (well physical, anyway) and may be missing the obvious.

 

 

 

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Are most people trickling their purchases to ride the ups and downs or do we tend to go big occasionally?

Interested in people's purchasing strategies and mix between types of gold and silver.

 

I for one just bought 15 Krugers. Gives me a bit of wiggle room before hitting the £10k barrier but still provides a good slug of security in case things deteriorate rapidly.

 

Interested in what others are doing and why.

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Hi Goldfinger,

 

Why buy the Maples when Sovereigns are CGT free?

Please bear in mind i'm relatively new to all this (well physical, anyway) and may be missing the obvious.

dunno if it's any use to you but i like 9999 fine. I like to hold pure gold - it has a differnt colour and density!

The CGT is a small advantage, but not so important in practice if you're going to sell for cash in small quantities at any one time.

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From CNBC

 

Analyst: Dollar May Sink, So Look to $1,500 Gold

Topics:Commodities | Gold & Precious MetalsBy CNBC.com | 01 Oct 2008 | 08:28 AM ET Text Size Aaron Smith, managing director at Superfund Financial, sees gold as a good bet as he believes it will rise to $1000 an ounce by year-end, and $1500 in two to three years' time.

 

"We think the prognosis is quite bearish for stocks and actually if you are buying stocks long-only at this point it's in my view sort of a sophisticated form of gambling," Smith told CNBC. "But there's no reason to be too too nervous. Investors could take advantage of cheap prices in commodity markets and benefit substantially from that in the next two to three years."

 

 

"If you have to buy stocks it's better to have commodity stocks than financial stocks. But we believe we're shifting to an era of real assets where real assets will be valued more than paper assets like stocks and bonds. So we want to have exposure to the real underlying commodity. The best one that investors can buy in this kind of market environment today is gold."

 

Part of gold's appeal is because "there is tremendous downside potential in the U.S. dollar." Investors could take advantage of the dollar's recent rally to take a position in gold, he suggested.

 

 

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dunno if it's any use to you but i like 9999 fine. I like to hold pure gold - it has a differnt colour and density!

The CGT is a small advantage, but not so important in practice if you're going to sell for cash in small quantities at any one time.

 

...however the downside to this is that they are far more softer than the 22Ct copper mix Krugers and Sovereigns. Future resale value can be affected by dimples / nicks.

 

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http://news.goldseek.com/GoldSeek/1222864344.php

 

Greenspan: Gold is "the Ultimate Form of Payment in the World"

 

The Financial Times' Javier Blas has written two excellent articles examining the surging demand for gold amid a growing lack of supply ('Investors start fresh Gold Rush' and 'Wealthy investors hoard bullion') [see News section of homepage].

 

In them he outlines how "investors in gold are demanding"unprecedented" amounts of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen."

 

He astutely notes Alan Greenspan's observations regarding fiat paper money and the value of gold as being the "ultimate form of payment in the world"

 

""Fiat money, in extremis, is accepted by nobody," Alan Greenspan, the former chairman of the US Federal Reserve, told lawmakers in Washington almost a decade ago."Gold is always accepted," he added.

 

The"in extremis" scenario was for years only a possibility in the mind of die-hard gold bugs, but the financial crisis is leading regular investors – from the ultra-rich to middle-class savers – to believe that the environment in which Mr Greenspan said fiat money would be worthless is now around the corner. ...

 

The investors’ response is a rush into physical gold not seen since the second oil crisis in 1979, bankers say. The shift into gold coins and bars is so extreme that it is causing shortages at refineries and mints around the world. "

 

With the Federal Reserve and global central banks injecting thousands of billions of dollars, euro, pounds, yen and Swiss francs (primarily dollars though) into the global financial system in order to prevent a systemic meltdown and contagion, a degree of monetary debasement is taking place that has not been seen in wealthy industrialised economies since Germany's Weimar Republic's money printing in order to pay off World War I debt reparations. This led to hyperinflation and destruction of the German mark and economy and the rise of the Nazis.

 

The scale of the money printing today is more akin to that seen in badly mismanaged less developed countries such as Argentina and other South American and African countries in the late 20th century. The fiscal ramifications of the money printing are massive and yet to be realised.

 

A more recent example of massive money printing is Zimbabwe, one of Africa’s most prosperous nations until recently, which is now suffering from a crushing hyperinflation, last reported to be at 11.2 million percent. The Zimbabwean central bank has unveiled a series of ever-larger notes since August, when it struck 10 zeros off the local currency that had become so weak that billions of dollars were required just to buy a loaf of bread.

 

Few are suggesting that America will go the way of Zimbabwe, but the present bout of "fiat money in extremis" risks a severe bout of stagflation that would make the stagflation of the 1970s look positively benign.

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