G0ldfinger Posted November 20, 2008 Author Report Share Posted November 20, 2008 EDIT: Sorry, couldn't resist. I don't really want to be mean! Link to comment Share on other sites More sharing options...
lowrentyieldmakessense(honest!) Posted November 20, 2008 Report Share Posted November 20, 2008 EDIT: Sorry, couldn't resist. I don't really want to be mean! Link to comment Share on other sites More sharing options...
enrieb Posted November 20, 2008 Report Share Posted November 20, 2008 US treasury bonds 'still the best option' By Xin Zhiming (China Daily) Updated: 2008-11-20 07:03 http://www.chinadaily.com.cn/china/2008-11...ent_7221498.htm China is likely to continue increasing holdings of US treasury bonds even after becoming the No 1 holder because it is the best way to deploy its $1.9 trillion foreign exchange reserves, economists say. On Monday, US Treasury data showed that China had replaced Japan to become the top holder of US treasury debt in September. With a $43.6 billion increase in holdings of US treasury securities in September, China's overall holdings amounted to $585 billion. Japan cut its holdings to $573 billion from $586 billion in August. Net foreign purchases of long-term US securities totaled $66.2 billion in September, up from $21 billion in August and $18.4 billion in July. Treasury data suggests that foreign investors still regard the US as a relatively better place to invest when markets worldwide are crumbling, analysts said. "That's why China has increased its holdings," said Dong Yuping, senior economist at the Institute of Finance and Banking affiliated to the Chinese Academy of Social Sciences. As the US financial crisis worsens, Washington is in dire need of capital to fund its massive market rescue plan; but some domestic economists argue that China should not use its foreign exchange reserves to purchase US bonds for fear that it may incur huge losses. "But China may not have many options," Dong said. The US economy, though hemorrhaging from the crisis, remains the largest and strongest; and the EU and Japan are not yet a serious challenge to US pre-eminence. Investment in dollar assets, therefore, carries the least risk, he said. If China reduces its holdings of US debt, others may follow suit, which will lead to a weakening of the dollar and depreciation of dollar-denominated assets, thus severely hurting China's interests. "China and the US are in the same boat," he said. "You may not like it, but China has to move along this path," said Yan Qifa, senior economist with the Export-Import Bank of China. And now that many countries are increasing holdings of US treasury bonds, China's potential returns from the bonds will increase, said Chen Gong, chief economist and chairman of Anbound Group, a Beijing-based consulting firm. "So China may continue to increase its holdings," he said. However, some experts argue that Beijing use its considerable financial leverage to set conditions such as the US opening its financial markets more to Chinese funds, and allowing exports of high-tech products to China. Link to comment Share on other sites More sharing options...
G0ldfinger Posted November 20, 2008 Author Report Share Posted November 20, 2008 ... China is likely to continue increasing holdings of US treasury bonds even after becoming the No 1 holder because it is the best way to deploy its $1.9 trillion foreign exchange reserves, economists say. ... "So China may continue to increase its holdings," he said. ... I think China has it coming. Big time. EDIT: They're now sitting in the deepest USTreasuries hole in the world. Link to comment Share on other sites More sharing options...
narco Posted November 21, 2008 Report Share Posted November 21, 2008 oil to gold ratio almost 15 Link to comment Share on other sites More sharing options...
Justin Thyme Posted November 21, 2008 Report Share Posted November 21, 2008 How long, I wonder, will it be before they're forced to choose between continuing to prop up their biggest customer and heading off an uprising among the swelling ranks of its unemployed ? $585bn is still but a quarter of their total foreign exchange reserves, and although a mere $1bn less than the economic stimulus package they revealed last week, methinks they'll not be dumping just yet. Link to comment Share on other sites More sharing options...
whoops_apocalypse Posted November 21, 2008 Report Share Posted November 21, 2008 Oh my, it's all getting rather out of hand, isn't it? Wachovia Securities won't broker precious metals anymore Dear Friend of GATA and Gold: Wachovia Securities this month alerted its brokers and clients that it no longer would purchase precious metals for brokerage accounts, only shares in precious metals exchange-traded funds. In an explanation given to its brokers, Wachovia said the precious metals markets "are illiquid with wide bid/ask spreads and minimal transparency." Wachovia's letter informing clients of this change is appended, along with an elaboration given to the firm's brokers. This implies that real metal is awfully hard to get these days, and maybe that some brokerages would prefer that their clients not get it. CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. CONTINUE >>> Or could it be that their brokers wouldn't recognise a gold bar if it hit them smack in the face these days, as it's been such a long time since they last saw any real precious metals... Link to comment Share on other sites More sharing options...
kernull Posted November 21, 2008 Report Share Posted November 21, 2008 lol, GF, good chart EDIT: Sorry, couldn't resist. I don't really want to be mean! Link to comment Share on other sites More sharing options...
Steve Netwriter Posted November 21, 2008 Report Share Posted November 21, 2008 all points to 550 target Ker, you've gotta do that with the Kitco Gold Index How about this ? Link to comment Share on other sites More sharing options...
Steve Netwriter Posted November 21, 2008 Report Share Posted November 21, 2008 £507.30/oz :D Looks like a consolidation spring, which has just been broken to the upside. Link to comment Share on other sites More sharing options...
jerpy Posted November 21, 2008 Report Share Posted November 21, 2008 Just thought i'd post this up as a message from our sponsors World Gold Demand Increases 18%, Hits Record High in Dollar Terms By Gold World Staff Thursday, November 20th, 2008 Smart gold investors aren't ready to throw in the towel yet. Because despite a 25% drop in prices over the past five months, the gold bull market is still healthy and on track. And a recent sharp increase in world gold demand is our proof. World Gold Demand in a Bull Market Two weeks ago, Mining Speculator investment director Greg McCoach wrote to you and outlined the basics of how a gold bull market works. If you recall, Greg mentioned that gold bull markets generally consist of three succeeding events: Currency devaluation Increased investment demand; and Speculative mania buying We began to see a sharp correction in the value of the U.S. dollar beginning in 2001, which quickly lead to a jump in investment demand. A subsequent 7-year U.S. dollar bear market helped lift gold prices from $250 to over $1,000 an ounce. Over the same period of time, world gold demand grew in terms of both tonnage and dollars, aided by the introduction of the now widely popular gold ETFs and similar gold investment vehicles. In July, the U.S. dollar reversed its downward trend, and continues to enjoy a bull market as central banks and foreign governments buy the greenback as a hedge against their own deflating currencies. This U.S. dollar bull market has significantly pulled down on gold prices. Gold has lost roughly 25% since mid-summer, leading some to believe that the gold bull market might be over. But it's not! The current U.S. dollar bull market is short-term and fleeting. We expect the U.S. dollar to top out sometime within the next several weeks, then continue on it's long-term downward trend. And judging by a significant increase world gold demand, we're certainly not alone. Despite a five-month drop in prices, world gold demand increased 18%, and made a new all-time record high in term of dollars as lower prices encouraged investors to seek haven from the global credit crisis. World Gold Demand Increases 18%, Hits Record High in Dollar Terms World gold demand totaled 1,133.4 tonnes during the third-quarter. This was up 170.1 tonnes, or 18%, from levels of a year earlier. In dollar terms, this represented a 51% rise to $31.8 billion, an all-time record high! This is a 45% leap from the previous record set during the second-quarter, and a major indicator that the gold bull market is still on track. And there's even more convincing evidence . . . The biggest contributor to the increase in total world gold demand in third-quarter was identifiable investment, which was up 137.5 tonnes, or 56%, relative to year-earlier levels. Driving the improvement in identifiable investment was net retail investment, which increased 121% from 105.1 tonnes to 232.1 tonnes. Switzerland, Germany, India and the United States enjoyed the biggest surge in demand, although shortages of bars and coins were reported among bullion dealers in many parts of the world. Gold ETFs set a record net quarterly inflow of 150.0 tonnes, boosted by extreme levels of economic and financial uncertainty. The peak in inflows occurred at the end of the September, triggered by the collapse of Lehman Brothers and a fear of banking sector collapses. Net inflows surged by an unprecedented 111.0 tonnes during 5 consecutive trading days, equivalent to $7 billion! Increasing investment demand is key to any bull market. In fact, it's surging investment demand that will ultimately lead to the coveted speculative mania buying stage and the peak of this gold bull market. Investment demand continues to grow, which provides strong support for the ongoing progression of the gold bull market, despite a few bumps in the road. We continue to urge you to buy gold. Bullion dealers around the country are limited in what they can sell right now. But if you have money that you're looking to keep safe, and can find a dealer who can get it for you, buy some gold now before the price spikes. Good Investing, Gold World Staff Link to comment Share on other sites More sharing options...
ziknik Posted November 21, 2008 Report Share Posted November 21, 2008 Gold at €602 EDIT: it was at €602, it dropped in between me typing and getting the chart. Still above €600 Link to comment Share on other sites More sharing options...
Gatesy Posted November 21, 2008 Report Share Posted November 21, 2008 oil to gold ratio almost 15 Meaning: 1) Oil now to rise, gold to be flat 2) Gold falls, oil flat 3) Both rise in tandem? Link to comment Share on other sites More sharing options...
Steve Netwriter Posted November 21, 2008 Report Share Posted November 21, 2008 £511.20/oz There is something nice about the 500s Link to comment Share on other sites More sharing options...
wren Posted November 21, 2008 Report Share Posted November 21, 2008 Link to comment Share on other sites More sharing options...
Steve Netwriter Posted November 21, 2008 Report Share Posted November 21, 2008 What is 2009 going to be ? 400 ? Link to comment Share on other sites More sharing options...
Steve Netwriter Posted November 21, 2008 Report Share Posted November 21, 2008 These $20 rises in 20 minutes are quite interesting aren't they. Link to comment Share on other sites More sharing options...
Johan van der Smut Posted November 21, 2008 Report Share Posted November 21, 2008 Gold suddenly up to $771. Time for a rocket pic, maybe? Link to comment Share on other sites More sharing options...
Bobsta Posted November 21, 2008 Report Share Posted November 21, 2008 These $20 rises in 20 minutes are quite interesting aren't they. If they maintain their regularity they're fun to trade (small stakes only). I've been repeatedly buying £1/pt of gold at $730 and selling it at $750 .... the £20 buys me lunch for a few days. Link to comment Share on other sites More sharing options...
Johan van der Smut Posted November 21, 2008 Report Share Posted November 21, 2008 Up to £513/oz now. Link to comment Share on other sites More sharing options...
nicejim Posted November 21, 2008 Report Share Posted November 21, 2008 Is bullionvault.com down? I can't get on to see how rich I am :-( Link to comment Share on other sites More sharing options...
electroweak Posted November 21, 2008 Report Share Posted November 21, 2008 Is bullionvault.com down? I can't get on to see how rich I am :-( Sure is down. That is THE reason to hold physical in your hands, IMO! Link to comment Share on other sites More sharing options...
simonc Posted November 21, 2008 Report Share Posted November 21, 2008 Just thought i'd post this up as a message from our sponsors World Gold Demand Increases 18%, Hits Record High in Dollar Terms By Gold World Staff Thursday, November 20th, 2008 Smart gold investors aren't ready to throw in the towel yet. Because despite a 25% drop in prices over the past five months, the gold bull market is still healthy and on track. And a recent sharp increase in world gold demand is our proof. World Gold Demand in a Bull Market And more of the same here......... FEARS of the unknown long-term effects from the global financial crisis have sparked a new gold rush. With retail and wholesale clients around the world stocking up on the precious metal, the Perth Mint has been forced to suspend orders. As the World Gold Council reported that the dollar demand for gold reached a quarterly record of $US32 billion ($50.73 billion) in the third quarter, industry insiders said the race to secure physical gold had reached an intensity that had never been witnessed before. From: http://www.theaustralian.news.com.au/busin...337-643,00.html Oh what to do? ......buy now or wait?? Link to comment Share on other sites More sharing options...
Pixel8r Posted November 21, 2008 Report Share Posted November 21, 2008 Oh what to do? ......buy now or wait?? I believe if you wait much longer you will not be able. See the talk on gold entering backwardation. http://www.greenenergyinvestors.com/index.php?showtopic=4530 Backwardation in gold has a perverse effect. In the case of agricultural commodities backwardation provides a most powerful incentive for traders to sell the cash commodity and buy the futures. Not so in the case of gold. Rather than bringing out deliverable supplies of gold, backwardation tends to remove them. The more the gold basis falls the less likely it becomes that owners will exchange their cash gold for futures. Please remember that you have seen it here first. This perversion of the gold basis constitutes the self-destroying mechanism of the regime of irredeemable currency. The longs tend to take delivery on their gold futures contracts in ever greater numbers, and refuse to recycle cash gold into futures, regardless how low the gold basis may go. As it is not set up to satisfy demand for delivery on 100 percent of the open interest, the gold futures market will default. Exchange officials will declare a “liquidation only” policy to offset long positions in gold. At that point all offers to sell cash gold will be withdrawn. Gold is not for sale at any price. The shorts are absolved of their failure to deliver on their gold futures contracts. Link to comment Share on other sites More sharing options...
nicejim Posted November 21, 2008 Report Share Posted November 21, 2008 Sure is down. That is THE reason to hold physical in your hands, IMO! We're back up now. They do have a phone number. Is the current action to do with Citi being the next Woolworths? Link to comment Share on other sites More sharing options...
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