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I know it is silly but I just like the image:

post-1625-1252499772_thumb.jpg

 

Back at $1000 - sprinting away or false start?

On its way to 969 judging by that picture. I can't remember what I was doing when I first saw gold over $1000 but I'll never forget seeing him break that record. The whole pub went silent. $1000 isn't really very special, but it's fun.

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China can no longer afford to let gold or silver price slump - http://www.mineweb.com/mineweb/view/minewe...7&sn=Detail

One could also say

 

"British state endorsement of 2-bed apartments as good investments means the country can no longer afford to let property prices drop by any significant amount."

 

The Chinese are probably better placed to put a bottom on gold of course.

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China can no longer afford to let gold or silver price slump - http://www.mineweb.com/mineweb/view/minewe...7&sn=Detail

I doubt China will have to resort to "price-fixing" or supporting the price of gold in the future. All efforts to artificially support assets prices are doomed to failure. Property will be a case in point.

 

The price of gold will rise "naturally" as it comes to be valued more. Being valued more, it becomes more valuable.... as priced in other currencies. The pace in the rise of price could double if currencies themselves start to devalue.

 

Edit: I see I have made the same point as nicejim... though with more verbiage. :)

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I doubt China will have to resort to "price-fixing" or supporting the price of gold in the future. All efforts to artificially support assets prices are doomed to failure. Property will be a case in point.

 

The price of gold will rise "naturally" as it comes to be valued more. Being valued more, it becomes more valuable.... as priced in other currencies. The pace in the rise of price could double if currencies themselves start to devalue.

 

Edit: I see I have made the same point as nicejim... though with more verbiage. :)

 

 

I heard that as a different word...gar.... ;)

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I doubt China will have to resort to "price-fixing" or supporting the price of gold in the future. All efforts to artificially support assets prices are doomed to failure. Property will be a case in point.

...

I would disagree. It could actually be very clever by China to let the price of gold increase by a lot and then keep prices very stable at a very high level (just like Jim Sinclair thinks it will happen). It could be a way to mop up excess currency (an inflation outlet) and at the same time it would be a valuable (and very safe since government backed) savings instrument for the population.

 

So, how would it work?

 

OK, let's assume the Chinese government wants to get rid of some circulating Chinese(!) currency. They can do the following: take their USD reserves and buy gold. Then they sell the gold on to their people. Then they destroy the incoming Yuans. That's it. Simple and effective, they get rid of two very bad things: too much USD and too much CNY. The USD will be toast-a-licious afterwards.

 

The good thing is that the procedure is not really manipulative since it is in the direction of the natural equilibrium price - i.e. the markets want to move into this direction anyway. So, this can not be compared to the current or former gold suppression schemes a la London Gold Pool.

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I would disagree. It could actually be very clever by China to let the price of gold increase by a lot and then keep prices very stable at a very high level (just like Jim Sinclair thinks it wil lhappen). It could be a way to mop up excess currency (an inflation outlet) and at the same time it would be a valuable (and very safe since government backed) savings instrument for the population.

Yes, but this is quite a different situation to the previous one envisaged. We were talking about government trying to keep a perceived "bubble" [whether property or gold] from deflating, or trying to reflate and "fix" the prices. Your scenario here is more like government encouraging a forming bubble and whipping it along. Quite a difference in mass investor psychology is involved between the two.

 

I have suggested before that at some point the US government might encourage/ manipulate a high price in gold [believe it or not] in order to create inflation expectation at some critical moment. Anything is possible.

 

What's up with Yen? Nearing the 90 handle now. :o

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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?

I use 2 online brokers, one for my ISA and one for juniors on the venture exchange which can't be held in an ISA. For my ISA I use selftrade and for the others I use TD Waterhouse.

 

There are plenty of threads on here that detail the benefits and drawbacks of each service. The main problem is that the spreads are quite high on Selftrade and TD Waterhouse is tighter but the currency conversion is expensive.

 

 

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I use 2 online brokers, one for my ISA and one for juniors on the venture exchange which can't be held in an ISA. For my ISA I use selftrade and for the others I use TD Waterhouse.

 

There are plenty of threads on here that detail the benefits and drawbacks of each service. The main problem is that the spreads are quite high on Selftrade and TD Waterhouse is tighter but the currency conversion is expensive.

 

thanks Pixel8r.

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OK, here are the kitco charts for the two past attempts on $1000:

 

5vt98m.jpg

 

Note that this year's attempt is at the start, rather than the end, of the annual gold season.

 

I see this as a more progressive move on $1000 - in March 2008 the London fix was >$1020 shortly after crossing the $1000 barrier, for example. We are now trading in a far narrower range around the magic barrier.

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OK, here are the kitco charts for the two past attempts on $1000:

 

5vt98m.jpg

 

Note that this year's attempt is at the start, rather than the end, of the annual gold season.

 

I see this as a more progressive move on $1000 - in March 2008 the London fix was >$1020 shortly after crossing the $1000 barrier, for example. We are now trading in a far narrower range around the magic barrier.

 

That is something that i also noticed. The last 2 times the price immmediately fell away sharply after breaching 1000.

 

This time, its almost as if the price is trying to consolidate around 1000 before moving higher

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http://www.bloomberg.com/apps/news?pid=206...id=acrGvxBXPDfk

Gold Rally Signals Move Away From Currencies, Greenspan Says

...

Sept. 9 (Bloomberg) -- Gold prices that jumped above $1,000 an ounce this week are signaling that investors are buying metals to hedge against declines in currencies, former Federal Reserve Chairman Alan Greenspan said.

 

The gains are “strictly a monetary phenomenon,” Greenspan said today at an investment conference in New York. Rising prices of precious metals and other commodities are “an indication of a very early stage of an endeavor to move away from paper currencies,” he said.

...

“What is fascinating is the extent to which gold still holds reign over the financial system as the ultimate source of payment,” Greenspan said.

...

China, the world’s fastest-growing major economy, will continue to be a “large consumer” of commodities, including energy and metals, Greenspan said.

...

There you go. :lol: He's closed the circle and is back where he was at with his 1966 paper.

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I'm glad I sold my miners. Especially ABX.

 

Will look for a decent re-entry point while also gently accumulating physical with GBP.

Yes that was perfect timing on Barrick, it's cool when that happens. :)

 

 

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I think gold is only flirting with this level at the mo.

 

I agree, this $1000 level reminds me of the way gold traded around the $700 barrier for over a year (when we all used to argue with numpties on the HPC gold thread). Small movements back and fourth from $650 to $700. $700 was a bit of a psychological barrier, I remember I used to buy the dips and resented paying when the price hit $700.

 

If anything serious happens like a spike in the price of oil due to a hurricane in the gulf, geo-political tensions in the middle east, major terrorist attack, further financial panics etc.. then it could easily push gold up to goldfingers $1400 target, before possibly falling back to $1000 as a new support level.

 

The important thing is that its positive news that we are seeing gold hold in the four digit range, at a time when there is a media led green-shoots environment with the official figures all signaling low inflation, at a time when central bank monetary inflation is being looked upon as a wise move whilst consumer credit is deflating.

 

 

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“What is fascinating is the extent to which gold still holds reign over the financial system as the ultimate source of payment,” Greenspan said.

 

I would say it is fascinating how the dollar still holds reign over the financial system, given what a pile of sh*t it is.

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Barrick raises share offer to $4-billion

 

Barrick Gold Corp.'s shares fell 6.45 per cent Wednesday, as soon-to-be diluted investors considered the implications of an even larger share offering than announced just a day earlier.

 

In a major bet that gold's rally has a long way to go, Barrick unveiled plans Tuesday to largely eliminate its troublesome gold hedge book with a massive equity issue worth as much as $4.04-billion (U.S.). Originally the deal was set at $3.45-billion, but investor interest allowed the company to up the offering.

 

The Toronto-based company said it is selling shares at $36.95 each. It will use the proceeds to eradicate more than half of its hedge contracts which have locked the company into receiving a fixed price for some of its gold production.

 

Blackmont Capital analyst Richard Gray said the negative effects of the dilution – more shares means fewer profits to be shared among existing investors – are balanced by the gains made by eliminating the hedging program.

 

“While increasing the share count by 10.6 per cent was a steep cost, the elimination of the hedge improves the valuation of two of the company's major growth projects and more importantly, the marketability and optics of the world's largest gold producer,” he wrote in a morning note, as he shaved a dollar off his price target, to $48.50.

 

The world's largest gold miner, Barrick produces about 8 million ounces a year. But its hedge book totals 9.5 million ounces, fixed at prices hundreds of dollars less than the current $1,000-plus range.

 

“For Barrick, it is the elimination of a significant future liability that was becoming more difficult to defend with the increasing gold price,” said the Blackmont analyst. “Just as important is the monumental signal by the world's largest gold company that it believes gold prices are poised to increase further.”

 

More...

 

 

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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". :lol: IMO, people should get a grip.

 

It is, but for right or wrong it does have a huge psychological effect.

 

That's why everything I buy is xx.99 :D

 

For gold that 1 dollar change makes it look much higher.

After a while people will get used to thinking in four digit prices.

 

 

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A Top could be in

xxxy.gif

 

Next stop could be GLD/$88-90

 

Junior stocks still holding, if they start crumbling, a drop in Gold becomes more probable IMHO

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“What is fascinating is the extent to which gold still holds reign over the financial system as the ultimate source of payment,” Greenspan said.

 

Fascinating that nobody wants to play his game anymore? Not particularly.

 

I think it's an important statement and will be seen as such - maybe not yet.

 

Anyway I am saving in gold if gold does go parabolic it will be risky then what is there as a safe saving medium?

 

Has anyone any suggestions?

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