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Agreed. Buying in the dips means buying in the currency fluctuation dips as much as the spot price dips. When there was 2.1 USD to the GDP, gold was a steal in the UK.

 

But not quite as good as for those in Iceland :P:D

 

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At least gold is heading in the right direction tonight, I think everyone could do with a confidence boost.

 

BTW Ker, good work on the charts!

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Maybe. :rolleyes:

 

I'm not sure what I think about the 'gold is good in deflations' theory. It seems intuitively wrong, but on the other hand people do look to gold in times of crisis. Maybe in the event of deflation the price will fall, but not by as much other assets, so gold will prove its worth. But I would suggest that in a deflation the difference between holding gold and other assets is less likely to be a big difference, so for those who expect deflation I don't think gold is such a no-brainer.

 

Anyway, I tend to think deflation is going to slip into inflation sooner or later as governments' only realistic option is to try to reflate the financial system, whatever the cost.

 

And do not forget a possible currency crisis or currency devaluation at some stage. This is my main reason for holding gold.

 

Edit: I consider gold an alternative currency.

 

I bought gold with NZ dollars and Korean won. To date have not "lost" any money. :)

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James Turk, founder of Gold Money, the Jersey-based company that stores precious metals for investors, said he had seen his customer base triple in September.

Wow. Amazing if true.

 

On Google Trends "goldmoney" and "gold price" have seen big increases in the last couple of months ("silver price" less so, though).

"goldmoney":

http://www.google.com/trends?q=goldmoney&a...=all&sort=0

"goldmoney.com" has just appeared on the radar:

http://www.google.com/trends?q=goldmoney.c...=all&sort=0

"gold price":

http://www.google.com/trends?q=gold+price&...=all&sort=0

"silver price":

http://www.google.com/trends?q=silver+pric...=all&sort=0

 

And "bullionvault" is well up too:

http://www.google.com/trends?q=bullionvaul...=all&sort=0

 

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I found this, not relevant just hilarious. I think I am going to cancel my business trip to Pakistan next year.

:lol:

 

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Article in yesterday's Independent:

Spending on gold nears $3bn as investors flee shares

 

Investors spent $2.8bn (£1.6bn) on gold on world stock exchanges in the third quarter this year, as individuals and companies fled volatile share markets.

 

According to the World Gold Council (WGC), 145 tons of gold were bought on stock exchanges in the three months to September. This meant that gold held by investors on the exchanges hit 1,000 tons for the first time since the metal was introduced on the US bourse in 2004.

 

Natalie Dempster, the WGC's head of investment, said: "The question we get from high net worth individuals and funds is no longer 'why should we invest in gold?', but 'where can we go to buy it?' "

 

Gold offers a product with a more stable price in the current market than company shares.

 

James Turk, founder of Gold Money, the Jersey-based company that stores precious metals for investors, said he had seen his customer base triple in September. He added that at the end of the third quarter, the company was looking after gold and silver deposits worth $400m, more than double the value a year earlier.

 

Mr Turk said: "Gold is seen as a natural safe haven given the uncertainty in the banking system and the volatility in the stock market."

 

 

To put this into context, global mine production is around 2,500 tons, or $60B, per year.

 

 

 

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I clicked on that link, then went off to make some garlic bread, and then got distracted by a problem I'm having with my other PC. Now I just glanced over at this screen, saw the 'donkey sex' page and wondered WTF my subconscious had been up to while I was distracted!

 

What a relief it was when I alt-tabbed my brain back to this bit of my multitasked morning.

 

Andrew McP

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... T-Bills, T-Bills, everywhere T-Bills :blink:

This is the biggest of all bubbles yet to pop. It will be in the form of a currency crisis. We have been seeing pre-cursors of it already with the USD being so low for so long. Gold will be the ultimate crisis currency.

 

I don't know how long they will be able to keep this game going. I don't think much more than a few years. I will become too obvious. In fact, there must be a Minsky moment for the US treasury at some stage, when new debt will just pay interest of the old one.

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I found this, not relevant just hilarious. I think I am going to cancel my business trip to Pakistan next year.

 

What I find more worrying is why were you looking for it in the first place :o

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Looks to me that the down channel resistance was broken soon after opening of the gold market in asia.

yeah, retest failed, currently consolidating in a small triangle to go for 680, may be at today's close, may be tomorrow

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Donkey porn was something my director accused me of once in jest, it was so surreal it stuck in my head. I'm not quite sure why that was the first thing that sprung to mind, I wasn't expecting a result at all let alone a clear winner. :D

 

What I find more worrying is why were you looking for it in the first place :o

 

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This was posted elsewhere by Gwizzie (thanks!) but deserves to be seen by everyone reading this thread:

 

http://news.goldseek.com/GoldSeek/1224424800.php

Precious Metal Stock Review

Posted Sunday, 19 October 2008

 

This week will be a slightly different format than usual. I am going to present a plethora of charts and indicators I like to follow. The pain we have been feeling is real and not likely to end right away. The good news is that precious metals and related shares will be the foundation of the gains to be made over the next few years once this panic selling and liquidation abates.

Plenty of long-term charts. Well worth a look.

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Julius Baer starts physical gold fund

 

Physical backed ETF that you can take gold out of

 

Linky

 

Hmmmm.....So are they going to be servicing a need or trying to fleece the sheep

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Not sure if this has been posted already.

Article detailing the Gold Leasing rates and how they apply to LIBOR, and the gold carry trade

 

http://seekingalpha.com/article/100677-mis...cle_lb_articles

 

Many have mistakenly suggested that these high lease rates are the first signs of a coming short squeeze in gold. The flaw in this line of thinking is that the lease rates reported in the press are a derived rate and actually represent the amount that can be earned from the gold carry trade.

 

In “normal” times gold would likely remain under pressure until GOFO breaks below 1% or breaks below the Fed Feds rate which currently stands at 1.5% The Fed funds rate and the OIS swap rate are both important to watch since they represent alternative financing sources. If the GOFO rate drops below either of these rates, banks have incentive to borrow gold and sell in the spot market in exchange for dollars. While this action will initially put pressure on gold it also increases demand for leased gold. This increase in demand for leased gold should result in a higher GOFO rate. As the GOFO rate increases the carry trade becomes less profitable and money can be borrowed more inexpensively elsewhere.

 

However, these are not “normal” times. The most likely explanation for the low GOFO rate is central bank’s desire to stimulate lending. While typically the profitability of the gold carry trade would be enough to cause the two rates to converge, the lack of confidence in the inter-bank lending market has most likely resulted in such a wide spread. As banks begin to lend to each other, they will look for sources of funding. The wide spread on the gold carry trade will be very enticing and should result in bullion bank shorts in gold. It is this action that has the potential to cause a short squeeze. Coupled with increasing investment demand, the move up could be significant.

 

 

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gold1020-4hrs.png

 

It seems to be stating the obvious really, but...

 

If you judge a big drop to be highly probably, then on average it's a good idea to sell, perhaps with a view to buying back in at a lower price.

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gold1020-4hrs.png

gold201008.jpg

 

If you look where the prices are consolidating, it may suggest the right cheek of a nice big juicy double bottom

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It seems to be stating the obvious really, but...

 

If you judge a big drop to be highly probably, then on average it's a good idea to sell, perhaps with a view to buying back in at a lower price.

 

Looks like the resistance from all three down channels has been broken for a second time today.

I'm thinking that the gold price in euros is playing a role here as it tests the 600 region.

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