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What was that warning?

 

I can't find the post at the minute!

 

It was about Gold Bulls falling into GroupThink trap and how we should all be aware of it...

 

At the time I remember thinking how wrong Bubb was - but reflected on what he said and positioned myself a bit more balanced. Better a little prepared and all that.

 

Anyway thanks Bubb - we should not let our emotions or lofty ideals get in the way of the market.

 

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I can't find the post at the minute!

 

It was about Gold Bulls falling into GroupThink trap and how we should all be aware of it...

 

At the time I remember thinking how wrong Bubb was - but reflected on what he said and positioned myself a bit more balanced. Better a little prepared and all that.

 

Anyway thanks Bubb - we should not let our emotions or lofty ideals get in the way of the market.

 

ah yea, I remember that post.

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Ok, now its serious!

 

CID out of:

1oz Gold Eagles (had some this morning!)

1oz Maples (ditto)

Seem to have got a few older Krugs in today (they were out last night, still 2009 sold out)

1oz Libertad ( had some a few days ago)

1oz nuggets (had some this morning!)

 

they have got Phillies at £756 - only a £120 markup!)

There is some SERIOUS BUYING going on here in the coin market.

 

 

oh, and no silver kilobars.

 

 

 

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http://www.commodityonline.com/news/Global...-16099-3-1.html

 

MUMBAI: Is the gold craze ending? Has the world got enough of it and doest it want to come back to the equity markets? These are questions being thrown up at debates of market analysts now.

 

It seems, the world has taken some right cues from the US market and it is expected that the Obama pill for the economy has started working. And, this was evident in last week’s surge in stock markets across the globe.

 

In fact, America’s realty market also started picking up momentum now. This is because of the $11.6 trillion total bailout packages announced by the US government during the past few months.

 

Economies across the globe pledged huge funds to revive their markets so that the world can tide over the recession. And, slowly it has started showing results. And, at a time when the equity market started moving up, gold slowly began its southward journey.

 

If you track the futures prices across the globe, you will get a clearer picture of the impact of the bailout packages on the economies and the behaviour of the yellow metals.

 

Once it became clear that the equity markets have started its northward journey, gold prices in the futures market, especially the April delivery, dropped.

 

 

This is because investors have realized that by April, things will improve further in the equity and realty market and they can put their money back in those areas and make more profit.

 

To cut short the story, gold is slowly losing its charm as a safe haven investment. Because, the world is slowly getting out of the slump, that means investors don’t need any safe havens now.

 

According to analysts, government spending could eventually decrease the need for gold as a hedge against financial uncertainty.

 

four-bears-large.gif

 

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Ok, now its serious!

 

CID out of:

1oz Gold Eagles (had some this morning!)

1oz Maples (ditto)

Seem to have got a few older Krugs in today (they were out last night, still 2009 sold out)

1oz Libertad ( had some a few days ago)

1oz nuggets (had some this morning!)

 

they have got Phillies at £756 - only a £120 markup!)

There is some SERIOUS BUYING going on here in the coin market.

 

 

oh, and no silver kilobars.

They were out of 250g gold bars the other day. Is it me or are the premiums getting larger?

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They were out of 250g gold bars the other day. Is it me or are the premiums getting larger?

The kilobar spread hit about £900 last time just before they ran out. I remember being amazed when it hit £600, now it's at ~£550.

The coin spreads are much bigger than a few days ago, I think (for what they have left).

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Ok, now its serious!

 

CID out of:

1oz Gold Eagles (had some this morning!)

1oz Maples (ditto)

1oz Krugs Seem to have got a few older Krugs in today (they were out last night, still 2009 sold out) sold out.

1oz Libertad ( had some a few days ago)

1oz nuggets (had some this morning!)

 

they have got Phillies at £756757 - only a £120 markup!)

There is some SERIOUS BUYING going on here in the coin market.

 

 

oh, and no silver kilobars.

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Ok, now its serious!

 

CID out of:

...

they have got Phillies at £756757 - only a £120 markup!)

There is some SERIOUS BUYING going on here in the coin market.

Meanwhile, some see a sell opportunity

 

http://www.numismaster.com/ta/numis/Articl...;ArticleId=6323

 

With some such collector coins now trading at all-time high prices, however, some dealers are advising their customers to consider selling or swapping for gold bullion. As a consequence, I think most of the surge in prices has already occurred. It might be a good time to take a profit.
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Exactly my question. I wake up to......chaos !!!!

I logged onto goldmoney, read an email, came back to goldmoney and the prices had gone up about £20 for gold, 20p for silver. Never seen anything like it! USD is getting a kicking and the FED reports on its meeting in 20 minutes from now I think. I'll save my evening jog for later...

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Karl Denninger is not going to be a happy bunny!

 

Caution On Quantitative Easing (QE)

 

Be warned Ben....

 

The BOE executed their first "QE" operation today.

 

The "bid to cover" was an astonishing 7.35.

 

This means that for every bond purchased 7.35 were tendered, or made available by willing sellers.

 

Back in January I posted a Ticker in which I made clear what was likely to happen if Bernanke actually attempted to do (as opposed to threatening) QE:

 

Bernanke bluffed and the bond market called it. He cannot monetize several trillion in new issue plus the entirety of the 10 and 30 year bonds out there to stop a bond market sell-off. In addition, the market no longer believes him, as evidenced by today's price action. A serious bond-market sell-off will ramp the cost of all credit, including mortgages and commercial loans. If he tries to monetize the result will be current bondholders tendering into his buying, forcing him to essentially "consume" the entire float. That stunt will cause the dollar to implode and we wind up exactly like Iceland. Overnight. Ben knows this; ergo, he is screaming like a petulant child while the market laughs at him just like the market forced Paulson to do what he said he wouldn't with Fannie and Freddie. Bernanke had better shut the hell up before he precipitates a bond market dislocation; traders can and will try to force him to make good on the threat.

 

Ding. The BOE now has seen exactly what happens when you promise as a government to overpay for something - everyone hits your bid immediately!

 

This is a form of crack that the government cannot afford to loose into the market - as soon as the buying pressure is removed rates will start to rise again, forcing yet another purchase.

 

Ultimately The Fed winds up owning all of its own government's bonds, having destroyed the private capital market for sovereign debt (just as it has done for other securitized debt by threatening to overpay for those issues!)

 

The difference is that if this happens for sovereign debt then deficit spending becomes impossible on an instant basis; this would in turn force a nearly 75% contraction of government spending.

 

The outcome of this event would be the immediate destruction of Social Security, Medicare, half the military budget and half of all other government programs.

 

PS: Bernanke knows this, which is why it hasn't happened yet. Let's hope he continues to remember it, because the destruction of our government is very, very un-funny, and this would likely precipiate exactly that in a "vast and fast" form.

 

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