enrieb Posted September 8, 2009 Report Share Posted September 8, 2009 Gold back up into the four digits tonight at $1002. Probably go back to triple digits tomorrow when the US markets open. I wonder if this pattern will continue all week. In other news, to be filed under 'No shit Sherlock' Market crisis 'will happen again' http://news.bbc.co.uk/1/hi/business/8244600.stm The world will suffer another financial crisis, former Federal Reserve chief Alan Greenspan has told the BBC. "The crisis will happen again but it will be different," he told BBC Two's The Love of Money series. He added that he had predicted the crash would come as a reaction to a long period of prosperity. Link to comment Share on other sites More sharing options...
sideshow Posted September 9, 2009 Report Share Posted September 9, 2009 For what it's worth, I sold my miners - ABX and PAAS - on Friday and today. Sitting with lots of dollar exposure now. I've started gradually buying gold in Bullion Vault with GBP to replace these positions. The thinking is that even if gold goes down it will go down less than the miners. I'm also not sure how much further GBP can rally against USD and feel like I need a bit more protection against sterling. Link to comment Share on other sites More sharing options...
Pluto Posted September 9, 2009 Report Share Posted September 9, 2009 Barrick sees gold going much higher... Sept. 8 (Bloomberg) -- Barrick Gold Corp., the world’s largest gold producer, plans to record $5.6 billion in third- quarter costs to eliminate fixed-price contracts as the company bets that prices for the precious metal will climb. http://www.bloomberg.com/apps/news?pid=206...id=a_Rt2xgQeWvY Link to comment Share on other sites More sharing options...
ziknik Posted September 9, 2009 Report Share Posted September 9, 2009 ... From: http://www.youtube.com/watch?v=DvQwXOCKNLY Aahhh. Now I get where this came from From: Link to comment Share on other sites More sharing options...
grumpy-old-man Posted September 9, 2009 Report Share Posted September 9, 2009 marmite & chris_ct discussing backwardation an interesting post from gata on that link, discusses the possibility of permanent backwardation. Link to comment Share on other sites More sharing options...
Pixel8r Posted September 9, 2009 Report Share Posted September 9, 2009 For what it's worth, I sold my miners - ABX and PAAS - on Friday and today. Sitting with lots of dollar exposure now. I've started gradually buying gold in Bullion Vault with GBP to replace these positions. The thinking is that even if gold goes down it will go down less than the miners. I'm also not sure how much further GBP can rally against USD and feel like I need a bit more protection against sterling. I get your thinking on this and your reasons for wanting to play the safety trade. I do think though we are just at the start of september, that means we have a few months of gold not being so indecisive as it has been recently. As miners are a leveraged play on the metals, I will be not adjusting anything for at least a couple of months, as they should gain more while gold and silver gain lots over the months to come. Link to comment Share on other sites More sharing options...
Pixel8r Posted September 9, 2009 Report Share Posted September 9, 2009 Yes, this is correct. See my correction above and explanation below. Thanks for your very detailed explanation GF. So I think it means when lease rates are negative the bullion banks are desperate to get banks shorting gold and will actually pay them for the privilege. Hence yesterday we went up and down when NYC opened. Link to comment Share on other sites More sharing options...
grumpy-old-man Posted September 9, 2009 Report Share Posted September 9, 2009 Thanks for your very detailed explanation GF. + 1 Link to comment Share on other sites More sharing options...
grumpy-old-man Posted September 9, 2009 Report Share Posted September 9, 2009 a bit of humour this morning: we are all obviously missing a trick or two it would seem: "How to buy gold for only $329 an ounce while others are paying more than $900 an ounce." the only problem is that he only has 11 free copies of his book left. The strike through's haven't copied across from the website. Was a 100 copies, then 75......you get the picture. "Hurry! Only 100 75 50 25 11 free copies remain!" I fear we may miss the boat though because: "Hurry! This offer expires: TODAY -- Wednesday, September 9th -- at midnight" clicky linky this $329 an ounce is current for today btw. :lol: you have to ask yourself, if you are switched on enough to be buying gold, why on earth would you buy his book ? Link to comment Share on other sites More sharing options...
Pixel8r Posted September 9, 2009 Report Share Posted September 9, 2009 a bit of humour this morning: we are all obviously missing a trick or two it would seem: "How to buy gold for only $329 an ounce while others are paying more than $900 an ounce." the only problem is that he only has 11 free copies of his book left. The strike through's haven't copied across from the website. Was a 100 copies, then 75......you get the picture. "Hurry! Only 100 75 50 25 11 free copies remain!" I fear we may miss the boat though because: "Hurry! This offer expires: TODAY -- Wednesday, September 9th -- at midnight" clicky linky this $329 an ounce is current for today btw. :lol: you have to ask yourself, if you are switched on enough to be buying gold, why on earth would you buy his book ? I bet the book will tell you to setup a cash4gold company, no that you really need to buy a book to know that Link to comment Share on other sites More sharing options...
FWIW Posted September 9, 2009 Report Share Posted September 9, 2009 a bit of humour this morning: we are all obviously missing a trick or two it would seem: "How to buy gold for only $329 an ounce while others are paying more than $900 an ounce." the only problem is that he only has 11 free copies of his book left. The strike through's haven't copied across from the website. Was a 100 copies, then 75......you get the picture. "Hurry! Only 100 75 50 25 11 free copies remain!" I fear we may miss the boat though because: "Hurry! This offer expires: TODAY -- Wednesday, September 9th -- at midnight" clicky linky this $329 an ounce is current for today btw. :lol: you have to ask yourself, if you are switched on enough to be buying gold, why on earth would you buy his book ? You seen the author's name? Nathan Slaughter! More like lambs to the Slaughter! EDIT TO ADD: If this is true can someone do this and then sell me the physical for $660 per oz? Link to comment Share on other sites More sharing options...
bitbigt Posted September 9, 2009 Report Share Posted September 9, 2009 Thanks for your very detailed explanation GF. +2 Link to comment Share on other sites More sharing options...
warpig Posted September 9, 2009 Report Share Posted September 9, 2009 Barrick Capitulates Barrick Gold and their bullion bank partner J.P. Morgan were the target of lawsuits by the gold bulls, most recently Blanchard and Company, for price manipulation through the use of forward sales in their hedge book. The contention was that the selling was being used to manipulate the price of gold. Barrick's initial defense was that if they were acting in conjunction with the central banks, they were therefore immune from prosecution since the central banks are immune from prosecution. Details of that story are here. The public document that Blanchard had put forward was shocking in its implications indeed, and can be seen here. Almost as shocking as the complete lack of interest and follow up in such a potential scandal by the financial community, market regulators, and the media. One has to wonder what Barrick's management now sees in the precious metal markets, in order to accept this significant shareholder dilution to take down those fixed price contracts now. On a related note, one of the current largest holders of the gold ETF (GLD) is now reported to be J.P Morgan, which is also a holder of one of the largest short gold positions on the COMEX. There was a bit of a row last year when it was revealed that the rules of the exchange would allow holders of short gold positions to make delivery good in, wait for it, the GLD ETF rather than in physical bullion. In an ideal, efficient market there would have been transparency and symmetric disclosure of information under the auspices of the CFTC and the SEC, rather than cross accusations and lawsuits. The exact details of what had transpired are not known as the Blanchard lawsuit was settled. The CFTC seems to be finally willing to act to place position limits on some of the commodity markets, such as oil, that have been the subject of speculative manipulation in recent years. Perhaps some day this will also include other reforms, and will include all the commodity markets. How sweet it must be for the 'gold bugs' who had repeatedly cautioned Barrick's management on their use of hedges and fixed priced arrangement with the bullion banks. Although for a large shareholder or group of shareholders in Barrick, one would think that a much more complete disclosure of the nature of this loss and the counter parties would be expected. How involved was J. P. Morgan? Was the Federal Reserve or any other central bank an actual counterparty or collaborator as Barrick apparently claimed in court in 2003? Does this have anything to do with China's recent position on derivatives obligations held by its State Owned Enterprises? It does sound like there is now a Barrick put under the price of gold, in addition to the China put, that is, a floor under the price of the metal in the front month or spot markets. In these opaque markets one can still only wonder what is really going on behind the scenes, in a number of financial arrangements. Yes we can. Barrick sees gold going much higher... Sept. 8 (Bloomberg) -- Barrick Gold Corp., the world's largest gold producer, plans to record $5.6 billion in third- quarter costs to eliminate fixed-price contracts as the company bets that prices for the precious metal will climb. http://www.bloomberg.com/apps/news?pid=206...id=a_Rt2xgQeWvY Link to comment Share on other sites More sharing options...
electroweak Posted September 9, 2009 Report Share Posted September 9, 2009 Thanks for your very detailed explanation GF. Sorry for bringing this up again, and I agree - thanks GF but... I was more interested in the fact that the 1M and 3M rates had 'crossed over' -> the 3M rate had become slightly more negative than the 1M rate; this has never happened to my knowledge, and granted it is only a SLIGHT crossover... Link to comment Share on other sites More sharing options...
Pixel8r Posted September 9, 2009 Report Share Posted September 9, 2009 Sorry for bringing this up again, and I agree - thanks GF but... I was more interested in the fact that the 1M and 3M rates had 'crossed over' -> the 3M rate had become slightly more negative than the 1M rate; this has never happened to my knowledge, and granted it is only a SLIGHT crossover... It is because the bullion banks are getting ever more desperate to control the price. They are now paying banks to borrow gold and short it, over 1M and 3M. This from Ed Steer's Gold & Silver Daily, about last Fridays action in the comex. The COT reports come out a few days afterwards, the report later in the week should be even more interesting. And now for the open interest numbers from Friday. As you can imagine, they were awful. But, as bad as they are, they will pale in comparison to the o.i. numbers for Tuesday when they come out later today. Gold open interest rose another monstrous 13,212 contracts to 438,504... on big volume [for a Friday before a long weekend] of 124,410 contracts. Silver o.i. was only up a modest 1,024 contracts to 113,418... on volume of 33,052 contracts... which is pretty big for silver. As you can see, the bullion banks are throwing everything at this rally that they have... no matter how big their net short position gets... and right now, based on yesterday's volume, it's knocking on the door of 28 million ounces... a new record high! That's about 35% of this year's gold mine production. The silver net short position is big too, but still has a long way to go to get to any sort of record. Yesterday's open interest numbers should hopefully be in this Friday's Commitment of Traders report... if everything gets reported in a 'timely manner' that is. If it does, we should see that record high I mentioned in the last paragraph. Could this record short position get larger? Sure... why not. "In for a penny, in for a pound" is an old English expression going back centuries. And there's also a chance that the bullion banks could get overrun. We are definitely in uncharted waters here. But if we do get a big sell-off to the down-side, there should be no doubt in anyone's mind as to how, why... or by whom it was perpetrated. Link to comment Share on other sites More sharing options...
dst Posted September 9, 2009 Report Share Posted September 9, 2009 I know it is silly but I just like the image: Back at $1000 - sprinting away or false start? Link to comment Share on other sites More sharing options...
G0ldfinger Posted September 9, 2009 Author Report Share Posted September 9, 2009 Barrick Capitulates http://jsmineset.com/2009/09/08/barrick-mo...te-gold-hedges/ Dear CIGAs, I stood in Barrick’s head office with the then President Oliphant and another top executive. I had gone to Barrick to make them a cash offer for Kabanga Nickel. Oliphant asked me what I thought about their hedge program. I told him at $305 Barrick was in trouble and at $354.90 he was in trouble. Since then Mr. Oilphant has resigned as president of Barrick. The other executive, still with the company, knows I am telling the absolute truth. I could have saved Barrick all these billions, but that is life. Link to comment Share on other sites More sharing options...
romans holiday Posted September 9, 2009 Report Share Posted September 9, 2009 I know it is silly but I just like the image: Back at $1000 - sprinting away or false start? I think gold is only flirting with this level at the mo. Link to comment Share on other sites More sharing options...
G0ldfinger Posted September 9, 2009 Author Report Share Posted September 9, 2009 I think gold is only flirting with this level at the mo. I think so too. The actual focus is on $1,400. Link to comment Share on other sites More sharing options...
romans holiday Posted September 9, 2009 Report Share Posted September 9, 2009 I think so too. The actual focus is on $1,400. Yes, would be well on the way to coming of age then. Link to comment Share on other sites More sharing options...
Pixel8r Posted September 9, 2009 Report Share Posted September 9, 2009 I think gold is only flirting with this level at the mo. It can keep it up the flirting, it is doing wonders to my portfolio of gold and silver miners Link to comment Share on other sites More sharing options...
bakachu Posted September 9, 2009 Report Share Posted September 9, 2009 Exciting stuff all this $1000 line treading! Its like a semi-final game of football at 1-1 with 15 minutes to go... Which team's going to score the next goal, will it go to penaltys, or will there be a REFEREE!! moment as some foul play occurs.. Link to comment Share on other sites More sharing options...
TrueNorth Posted September 9, 2009 Report Share Posted September 9, 2009 It can keep it up the flirting, it is doing wonders to my portfolio of gold and silver miners I am gonna have to start flirting with some of them miners. Do you do your trading online Pixel8r? If so do you recommend your brokerage provider? Link to comment Share on other sites More sharing options...
G0ldfinger Posted September 9, 2009 Author Report Share Posted September 9, 2009 Exciting stuff all this $1000 line treading! ... I'd say it is nice to see that people start realizing that $1,000 is just a price like any other (e.g. $834). It's NOT either off to the moon or "all bets are off". IMO, people should get a grip. Link to comment Share on other sites More sharing options...
Mr Pipples Posted September 9, 2009 Report Share Posted September 9, 2009 China can no longer afford to let gold or silver price slump - http://www.mineweb.com/mineweb/view/minewe...7&sn=Detail Chinese state endorsement of gold and silver as good investments means the country can no longer afford to let precious metals prices drop by any significant amount. Link to comment Share on other sites More sharing options...
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