FWIW Posted June 25, 2009 Report Share Posted June 25, 2009 No don't say that, I was more thinking of the buzz lightyear saying "To infinity and beyond" Wasn't that also a quote from Ben 'Helicopter' Bernanke? Link to comment Share on other sites More sharing options...
Compounded Posted June 25, 2009 Report Share Posted June 25, 2009 I didn't know that mish liked gold... http://globaleconomicanalysis.blogspot.com...at-does-it.html Jetstram Gold over time holds value but gains purchasing power in deflationary periods and loses purchasing power in inflationary periods this has happened over and over again throughout centuries , the only exception is the 1970's inflation when gold rebounded after being manipulated lower by the great western powers in the London gold pool price supression scheme. Mish is a deflationist I think he knows history shows deflation is good for gold - he says gold may lose dollar value in his predicted deflation but will gain purchasing power. Hyperinflation - anyting of value is better than money - in that situation gold is best but it may be so good the government requisitions it. Link to comment Share on other sites More sharing options...
Steve Netwriter Posted June 26, 2009 Report Share Posted June 26, 2009 Will let my pictures do my talking I love it, but of course strictly speaking, it should be "to zero, and and beyond"....for fiat currencies Link to comment Share on other sites More sharing options...
FWIW Posted June 26, 2009 Report Share Posted June 26, 2009 Got to 944 pretty quick...945 needs to be hurdled... Link to comment Share on other sites More sharing options...
FWIW Posted June 26, 2009 Report Share Posted June 26, 2009 I love it, but of course strictly speaking, it should be "to zero, and and beyond"....for fiat currencies Actually I think the correct term would be 1 over infinity...as close to zero as you can ever get, but not zero! Paper and ink must cost something! Link to comment Share on other sites More sharing options...
Steve Netwriter Posted June 26, 2009 Report Share Posted June 26, 2009 Actually I think the correct term would be 1 over infinity...as close to zero as you can ever get, but not zero! Paper and ink must cost something! Well, not taking this too seriously, I was going to write "to zero", and then thought, but when you loose everything, you can still have debts! So cannot a country end up in debt with a currency worth zero (or very close to it)? Link to comment Share on other sites More sharing options...
Steve Netwriter Posted June 26, 2009 Report Share Posted June 26, 2009 I could have written this myself. This is exactly the way I have been thinking. Gold doesn’t care if it’s inflation or deflation. . . . Consider the following: Global gold demand jumped 38% in the 1Q09. Three years ago, demand for gold as an investment only comprised 10% of global gold demand. Today it’s over 30%. That’s an unbelievable increase in investment demand. From an anecdotal standpoint, I’ve begun hearing numerous “we’ll pay cash for gold” radio advertisements. And just yesterday at the gym I saw G. Gordon Liddy on TV touting gold as king and the dollar as garbage (he actually crumpled a dollar bill up on camera). When a guy like Liddy (central architect of the Watergate break-in) becomes a spokesperson for distrusting the government, then you know the general public is growing anxious about the currency. But my main point is this: Gold will perform well in ANY investment environment going forward, whether it’s inflation OR deflation. If the dollar rolls over and tanks, gold will benefit greatly from a flight to safety or a desire to seek a non-fiat currency. And as Jastram’s book shows, if deflation takes hold (as credit and household wealth contracts further) gold will ALSO perform well just as it did during numerous deflationary periods between 1560 and 1976. How’s that for a win-win? Good Investing! http://seekingalpha.com/article/145086-gol...ion?source=feed Link to comment Share on other sites More sharing options...
LauraB Posted June 26, 2009 Report Share Posted June 26, 2009 Jetstram he says gold may lose dollar value in his predicted deflation but will gain purchasing power. :blink: Tell me it's me, I've got the revolver ready. I can't make any sense of that. Link to comment Share on other sites More sharing options...
marmite Posted June 26, 2009 Report Share Posted June 26, 2009 What do you guys think will happen coming up to and going over the Bank Holiday weekend ( 4th July ) ??? Thin markets seem to always move the market one way or the other. Will the cartel use it to bash gold ??? Link to comment Share on other sites More sharing options...
Errol Posted June 26, 2009 Report Share Posted June 26, 2009 China Decision to Buy $80 Billion of Gold, the Dragon's Hoard http://www.marketoracle.co.uk/Article11580.html China puts a floor under gold's price Link to comment Share on other sites More sharing options...
fexx Posted June 27, 2009 Report Share Posted June 27, 2009 Will let my pictures do my talking .... Link to comment Share on other sites More sharing options...
Pixel8r Posted June 27, 2009 Report Share Posted June 27, 2009 .... 4 months vs 14 months, also the large one is around a tactical number $1000. I think it has been a line in the sand that was drawn by the cartel, which when it breaks it will break with force. That is why I have the target of $1250-$1300. The news above abut China buying 2600 tons is the sort of thing that will help to stop the cartel throwing more money at trying to keep the price down below $1000. Also of interest is the reaction in your GBP gold chart when it hits the 50 day moving average, which it looks like we are about to. All of this doesn't really make much difference to me as I don't trade my core physical position, I do use my TA to try and time trades of gold and silver miners though. Link to comment Share on other sites More sharing options...
Steve Netwriter Posted June 27, 2009 Report Share Posted June 27, 2009 :blink: Tell me it's me, I've got the revolver ready. I can't make any sense of that. Please switch on your webcam. Then just for fun I'll say..... It's you. :lol: OK, no it's not you. Link to comment Share on other sites More sharing options...
Steve Netwriter Posted June 27, 2009 Report Share Posted June 27, 2009 China Decision to Buy $80 Billion of Gold, the Dragon's Hoard http://www.marketoracle.co.uk/Article11580.html China puts a floor under gold's price Someone is, I was expecting it to fall more on Friday! Link to comment Share on other sites More sharing options...
electroweak Posted June 27, 2009 Report Share Posted June 27, 2009 http://www.huffingtonpost.com/nathan-lewis...d_b_216896.html where's the gold? In April, delivery notices were sent on a whopping 1.5 million ounces of gold, against 2.5 million ounces of dealer inventory. That month, Deutsche Bank alone delivered 850,000 ounces. This coincided, rather suspiciously, with a sale of 1.14 million ounces of gold by the European Central Bank that month, suggesting that Deutsche Bank was being bailed out in a big way. Nothing of this size turned up in the warehouse reports. Nothing followed similarly large deliveries in December 2008. By Comex rules, all physical deliveries must go through the warehouse. What happened? Until investors receive an explanation from the exchange, which has thus far been silent, we must regard it as being very suspicious. Very, very suspicious. What does it all mean? First, there are indications that the seller side of futures contracts (such as Deutsche Bank in April) are having a difficult time making good on their commitments. Second, the information reported by the Comex regarding physical inflows and outflows is looking more and more like a convenient fiction. Third, there is some doubt as to whether there is gold in inventory -- as there absolutely should be -- to match existing warehouse receipts. Fourth, the Comex warehouse is one of the most secure forms of gold investment in the world. If they can't be trusted, what does that say about ETFs, pooled accounts, futures, forwards, options, and all the other forms of "paper gold" out there? Fifth, if it becomes clearer that there is no physical supply to meet physical demand, the dollar price of gold could go much higher. Link to comment Share on other sites More sharing options...
azazel Posted June 27, 2009 Report Share Posted June 27, 2009 http://arabianmoney.net/2009/06/27/chinese...-a-price-spike/ Chinese gold moves setting the market up for a price spike Price spike imminent? However, by monetizing gold in this fashion international investors will surely appreciate that a floor is being put under the gold price, with the prospect of upwards only price revision. It is exactly this kind of impossible-to-loose investment scenario that produces price spikes, and if you look at the longer-term technical chart for gold it does look remarkably similar to the Nasdaq in the late 90s before it really took off. Link to comment Share on other sites More sharing options...
romans holiday Posted June 28, 2009 Report Share Posted June 28, 2009 :blink: Tell me it's me, I've got the revolver ready. I can't make any sense of that. Gold may retain it purchasing power in a deflation. Gold may also be valued less in dollars terms at times. This could involve massive volatility between gold and the dollar and chaos in the market [a dynamic process of deleveraging and massive "short covering" to the dollar] . I think we will continue to see the inverse relationship between gold and the dollar. Even though the dollar could spike at times [with gold valued less in dollar terms], a further deflationary spectre will remain hanging over the dollar.... that at a later date it may itself deflate and devalue against stronger currencies on the fx market. I see a lot of sense in holding US dollars short term though long term is quite another matter. imo we should be looking at currencies as primarily caught up a historical process where a currency is first weak then strong while at the same time keeping a perspective as to which currencies are likely to perform long term. Link to comment Share on other sites More sharing options...
LauraB Posted June 28, 2009 Report Share Posted June 28, 2009 Gold may retain it purchasing power in a deflation. Gold may also be valued less in dollars terms at times. Even though the dollar could spike at times [with gold valued less in dollar terms], a further deflationary spectre will remain hanging over the dollar.... that at a later date it may itself deflate and devalue against stronger currencies on the fx market. I see a lot of sense in holding US dollars short term Phrased that way I can cope, thxs RH So with piles of USD & Gold, I'm right in the middle. Welcome to a care-free retirement Laura! At some point certain banks we know so well will want nothing but physical gold I would have thought? - They will want to rattle everyone minion 'contestants' soul to get it for naff all. - If you were them (ie forget morality), what would your strategy be? - Or should this be another thread? _________________________________________ Please switch on your webcam. I wouldn't do it to you Steve. That pic is 40 yrs old! (no suitable emoticon found) Link to comment Share on other sites More sharing options...
fexx Posted June 28, 2009 Report Share Posted June 28, 2009 Also of interest is the reaction in your GBP gold chart when it hits the 50 day moving average, which it looks like we are about to. Yes, given the TA in USD and the other fundamentals mentioned, I think we could soon see a bottom in GBP at around the 50DMA and AU won't drop much below 550/oz. All of this doesn't really make much difference to me as I don't trade my core physical position, I do use my TA to try and time trades of gold and silver miners though. I suspect a great many on this thread, myself included, hold a core position and are long gold. But, if you are of this mindset, then what do you have to lose by accumulating a bit more when it looks like a bottom? Link to comment Share on other sites More sharing options...
fexx Posted June 28, 2009 Report Share Posted June 28, 2009 Speaking of interesting looking PM charts in GBP... Link to comment Share on other sites More sharing options...
marmite Posted June 28, 2009 Report Share Posted June 28, 2009 What do you guys think will happen coming up to and going over the Bank Holiday weekend ( 4th July ) ??? Thin markets seem to always move the market one way or the other. Will the cartel use it to bash gold ??? No comments on the up and coming bank holiday ??? Historically the summer months are down months, this week / weekend could be of interest to the downside ??? Link to comment Share on other sites More sharing options...
romans holiday Posted June 28, 2009 Report Share Posted June 28, 2009 At some point certain banks we know so well will want nothing but physical gold I would have thought? - They will want to rattle everyone minion 'contestants' soul to get it for naff all. - If you were them (ie forget morality), what would your strategy be? - Or should this be another thread? Once the inflation trade has become over-heated, and at an oppotune moment, spark a deflation scare. In a suitably chastened mood, announce that treasuries will not be bought. Then watch investors run out of stocks and commodities on the back of continued poor economic news [being good and gullible believers in the Friedmanite fallacy, they were only there in the first place due to Bernanke's bluff to continually buy treasuries]. Rub your hands together as everything sells off and the dollar spikes and capital goes into treasuries. Sure, a few will fall through the cracks and buy cheap gold with temporarily strong dollars... but hey nobody is perfect right. Link to comment Share on other sites More sharing options...
Pixel8r Posted June 28, 2009 Report Share Posted June 28, 2009 Speaking of interesting looking PM charts in GBP... Everything seems to be lining up for some major action over the next few weeks Link to comment Share on other sites More sharing options...
huntergatherer Posted June 29, 2009 Report Share Posted June 29, 2009 El Nino weather phenomenon could affect the price of crude oil over the winter in US due to warming effect and Indian demand for gold over the summer through poor monsoon. http://www.ft.com/cms/s/0/3c09dfa6-64cc-11...?nclick_check=1 Link to comment Share on other sites More sharing options...
u4d18 Posted June 29, 2009 Report Share Posted June 29, 2009 Interesting you should mention oil. I spoke to a colleague today who used to work in the shipping industry as an engineer but still keeps up-to-date with the field. He told me that the number of tankers full of both crude oil and refined products waiting for the price to increase is phenominal. He told me of one ship parked for the last 6 months with 2+ million barrels of oil. Apparently, bought by Morgan Stanley for $40 a barrel, sold recently for $65 or so. He said the standing costs are about 30K per day for the ships but the maths work out nicely. Link to comment Share on other sites More sharing options...
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