Jump to content

Recommended Posts

  • Replies 30.9k
  • Created
  • Last Reply

Top Posters In This Topic

  • G0ldfinger

    2616

  • romans holiday

    2235

  • drbubb

    1478

  • Steve Netwriter

    1449

Nice action today ;)

 

Anyone picked up on this:

 

Sarkozy & Bretton Woods Revival?

 

"Mr Sarkozy said its task would be to revive the current finance system set up at the Bretton Woods Conference 60 years ago, which created the International Monetary Fund and the World Bank."

 

Doesn't seem to have had much air time?

 

Time for a modernised Gold Standard? Gold certificate ratio? :P

 

SafeBetter

Link to comment
Share on other sites

Good article:

 

Treasuries and Gold Rise as Global Credit Freeze Prompts More Bailouts

 

More Sarkozy/Bretton Woods:

 

Sarkozy says free-market economy at an end

 

Crisis flags end of free market: Sarkozy

 

Am I barking up the wrong tree here folks?

 

SafeBetter

Link to comment
Share on other sites

Coin invest now out of all gold bars except 1g, 5g, 10g & 20g. I think the mania stage may have just started.

 

Gold made an all time high in UK£ (turdling for goldfingers info) today at £510= an ounce.

 

I don't think we are anywhere near the mania phase yet. The bullion will be bought up by the smart money and the institutional investors over the next few years. James Turk has always said that by the time gold approaches the mania stage, the man in the street just won't be able to get hold of any. In the mania stage the general public will not be able to get hold of bullion coins and bars they will have to make do with 9ct chains and rings from Argos.

Link to comment
Share on other sites

Paper or pixel gold is not gold. Please review:

 

http://www.cnbc.com//id/15840232?video=880574352&play=1

 

 

But what price is he talking about? (as in "the price would double in a very short amount of time")

I am assuming this is the paper price also? If so investing in paper also makes sense???

The 1980 price of 850 was in the paper market also wasnt it?

Link to comment
Share on other sites

The paper price must reflect whats going on.

 

Otherwise how would dealers around the world know what to buy and sell at?

 

Unless the mints and miners club together and set up an alternative daily spot price on the web?

 

 

That might be an idea for an entrepreneur to do, set up a mini comex for precious metals.

Link to comment
Share on other sites

US Mint halts some American Eagle coin production

Tue 7 Oct 2008, 12:02 GMT

http://africa.reuters.com/metals/news/usnN07435260.html

 

 

NEW YORK, Oct 7 (Reuters) - Unprecedented demand for precious metals and volatile markets forced the U.S. Mint to cease production for the half-ounce and quarter-ounce popular American Eagle gold coins for the rest of this year and to supply other bullion coins on an allocation basis.

 

"Due to the extreme fluctuating market conditions for 2008, as well as current market conditions, gold and silver demand is unprecedented and the demand for platinum is unusually high," the U.S. Mint said in a Monday memorandum to its authorized coin dealers.

 

"The U.S. Mint has worked diligently to attempt to meet demand, however, blank supplies are very limited and it is necessary for the U.S. Mint to focus remaining bullion production primarily on American Eagle Gold One Ounce and Silver One Ounce Coins," the Mint said.

 

The Mint said it would continue to supply one-ounce American Eagle gold coins and one-ounce American Eagle silver coins on an allocation basis to coin dealers.

 

For half-ounce and quarter-ounce American Eagles, the Mint said that inventory was depleted last week and no more coins would be produced for 2008.

 

Produced from gold mined in the United States, the American Eagles have been novel items among collectors and investors since their introduction in 1986. Each coin has a face value of $50 but it is sold by authorized dealers at a premium to the price of gold.

 

Coin dealers from the United States to Canada have recently reported a surge in buying of bullion coins and other gold products as a worsening crisis in the financial markets prompted people to seek a safe haven in precious metals. (Reporting by Frank Tang; Editing by John Picinich)

 

 

Dubai September gold jewellery sales up 32%

By: Reuters

Published on 7th October 2008

Updated 4 hours ago

http://www.miningweekly.com/article.php?a_id=144685

 

Gold jewellery sales in Dubai rose 32 percent in September from a year earlier after gold prices fell, the emirate's industry group said on Tuesday.

 

But September sales fell 3 percent from August after a buying spree that started in July ahead of a Muslim holiday, Dubai Gold and Jewellery Group managing director Tawhid Abdullah told Reuters.

 

"Prices have come off their peak for the year and that helped contribute to the overbuying in July and August, he said.

 

Gold prices dipped to $748.34 an ounce in September - a 12-month low, while the monthly gold average price dropped more than 15 percent from its all-time high of $1030.80 an ounce, hit in March.

 

Buying ahead of the fasting month of Ramadan and the Eid feast, during which many couples marry, had contributed to the overbuying from July through August, Tawhid said.

 

Tax-free jewellery shopping in the United Arab Emirates -- a seven-member federation that includes Abu Dhabi and Dubai, known as the "City of Gold" - lures many Gulf and Western tourists.

 

Spot gold traded around $883 an ounce on Tuesday.

 

 

Link to comment
Share on other sites

The paper price must reflect whats going on.

 

Why can you buy 1,000,000 and above in Gold (EFT:GLD) but you can't buy 10Ks worth of coins without hunting them down and paying a premium over spot.

 

A similar situation happened in the late 60s which lead to Nixon closing the gold window in '71. Just like then, we have "unlimited" amounts of gold as long you don't want it in your possession.

Link to comment
Share on other sites

What might happen is if the distortion becomes too big, say physical is double the spot price, - theres nothing a major mint like the Perth Mint selling physical gold and using the profits to buy out a Physical ETF/BV/Goldmoney physical vault and get gold at 1/2 price to produce more coins.

 

The ETF/BV/Goldmoney must decide whether to use spot prices and sell cheaply to them OR raise its prices to physical prices.

 

Faith in the Comex would be destroyed

 

That could happen.

Link to comment
Share on other sites

Why can you buy 1,000,000 and above in Gold (EFT:GLD) but you can't buy 10Ks worth of coins without hunting them down and paying a premium over spot.

 

A similar situation happened in the late 60s which lead to Nixon closing the gold window in '71. Just like then, we have "unlimited" amounts of gold as long you don't want it in your possession.

 

 

Why can you buy 1,000,000 and above tons of wheat on the futures market (and take delivery) but you cant buy 10ks worth of flour packets without hunting them down?

I dont necessarily see the issue as being too different..

 

Have you tried taking delivery of 1,000,000 on the LME or COMEX?

 

James Turk has (I am assuming he deals with these numbers in GM) and he did not have to hunt them down...

Link to comment
Share on other sites

Why can you buy 1,000,000 and above tons of wheat on the futures market (and take delivery) but you cant buy 10ks worth of flour packets without hunting them down?

I dont necessarily see the issue as being too different..

 

Have you tried taking delivery of 1,000,000 on the LME or COMEX?

 

James Turk has (I am assuming he deals with these numbers in GM) and he did not have to hunt them down...

 

You cannot compare wheat and Gold futures. Gold is a commodity/currency, as such is a political tool used by the state to control the perceived value of their script. Therefore, as in the late 60s, the paper contract price is manipulated for political purposes. This is fine until confidence in government script is questioned. At that point the priceof physical gold will start to exceed the price of paper gold and (as history tells us) the owners of the paper may default leaving you lolly-less.

 

The state knows this, that is why physical gold is held in Central banks and not wheat or any other commodity.

Link to comment
Share on other sites

Gold Crisis and Inflation Hedge Expected to Outperform Crude Oil

Commodities / Gold & Silver Oct 07, 2008 - 02:58 PM

 

By: Dr_Krassimir_Petrov

 

http://www.marketoracle.co.uk/Article6674.html

 

 

IMO always listen to Krassimir.

 

6. Conclusion

To summarize the first stage of the current commodity bull market, the fundamentals for gold on all accounts are weaker than the fundamentals for oil. Therefore it was natural that during the first stage oil significantly outperformed gold.

 

However, during the second, and especially during the final stage of the commodity bull market, the above fundamentals will decisively turn in favor of gold. As such, in coming years we should expect gold to outperform oil. Moreover, the closer we get to the “mania” stage of the cycle, the better will gold perform relative to oil. Gold bulls have little to worry about.

Link to comment
Share on other sites

You cannot compare wheat and Gold futures. Gold is a commodity/currency, as such is a political tool used by the state to control the perceived value of their script. Therefore, as in the late 60s, the paper contract price is manipulated for political purposes. This is fine until confidence in government script is questioned. At that point the priceof physical gold will start to exceed the price of paper gold and (as history tells us) the owners of the paper may default leaving you lolly-less.

 

The state knows this, that is why physical gold is held in Central banks and not wheat or any other commodity.

 

 

I agree with you - I was just trying to "cheekily" point out that there might be other factors to the retail shortage. ;)

But I am only playing devil's advocate here as I am bullish on gold - just wary of the downside

Link to comment
Share on other sites

I have posted this on HPC - it seems I am somewhat indebted to GF, pluto et al (could have been much better if I had found cagnaos MSE posts in 2004)

 

http://www.housepricecrash.co.uk/forum/ind...15&start=15 (Title - Just checked my pension - all gains of the last 5 years wiped out)

 

I moved mine to gold in April - it's 9% up since then.

 

It is 60% up over what it would have been if I had left it on the stock market - incidentally this is due to applying knowledge I have learned on this site.

Link to comment
Share on other sites

Posted On: Tuesday, October 07, 2008, 9:54:00 AM EST

Fed Enters Off Balance Sheet Credit Default Market

Author: Jim Sinclair

 

Dear CIGAs,

 

Today the Fed entered the off balance sheet credit default market and plans to buy unsecured debt instruments in order to cure the problems caused by off balance sheet credit default derivative buying in the form of non-performing failed counterparty credit default derivatives. This appropriately named toxic paper will be purchased to an infinite degree.

The Fed does the same to cure the same.

The Fed actions today declare the bailout bill a non-functioning pile of pork. This infinite production of paper dollars will kill the dollar

Gold will trade at or above $1650.

The Dow is thumbing its nose at the infinite amount of money being dropped by rising 150 points and coming back to even.

Modern day Weimar here we come!

 

Jim

 

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

 

Posted On: Tuesday, October 07, 2008, 2:02:00 PM EST

The Federal OTC Derivative Dealers

Author: Jim Sinclair

 

Dear Friends,

Please understand that the Fed reacts to circumstances rather than acting before potential problems happen.

If the Fed hadn't taken the rather strange action they took today by becoming OTC derivative dealers themselves this would have been the day the USA banking system imploded.

Watch Libor rates to signal the point of detonation.

Circumstances appear as if there were many problem Angels dancing on top of a pin that is being balanced on the nose of just those people who created the problem in the first place.

An implosion of the banking system is coming, which means a bank holiday will occur.

You now must have enough cash in hand to last a month or two.

If you have not distanced yourself from financial agents then you have a financial death wish.

If you have NOT made absolutely sure that your custodian account is a real custodial- ship you are probably in for a surprise.

I took a call yesterday from a mature lady who told me she feels her money market fund that is only in Treasuries will not pay her out. They did tell her they intend to in seven days. I asked her to call me back in eight days. How does she know that this money market fund is not in OTC derivatives based on the movement of Treasuries?

I do not want you to make that call to me.

If you can retire from your retirement program at some reasonable discount do it NOW.

This is it and it is NOW. Gold is going to $1200 and $1650. The US dollar rally has NO fundamental legs.

Why are so many of you sitting there like a deer caught in the headlights? Protect yourself and do it TODAY!

Respectfully,

Jim

 

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

 

Personally, I think Jim is being far too optimistic.

I'm not sure even Jim has really grasped how bad this is going to get.

 

$1650 ?!

 

I think that's going to look mighty silly as a low estimate.

But, OK as a first stage I guess.

Link to comment
Share on other sites

I have posted this on HPC - it seems I am somewhat indebted to GF, pluto et al (could have been much better if I had found cagnaos MSE posts in 2004)

 

http://www.housepricecrash.co.uk/forum/ind...15&start=15 (Title - Just checked my pension - all gains of the last 5 years wiped out)

 

I moved mine to gold in April - it's 9% up since then.

 

It is 60% up over what it would have been if I had left it on the stock market - incidentally this is due to applying knowledge I have learned on this site.

When you say you pension is invested in gold - how exactly? Not ETFs?

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...