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Most recent USD increase in PoG was really just reflecting USD weakness.

 

But today was all about gold.

 

Today could be the day we stepped into mania phase. ...2 years before I was expecting it!

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Yes but no.... :D You're right in what you're saying, however I think prices will explode to the upside before we get anywhere near what you're describing. They will play the fiat game until the bitter end IMO.

 

 

And to what end?

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My hoped for drop never materialised. Bugger.

 

Still hoping for a drop to at least $9xx (below £600 in sterling). That is the time to buy big.

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But I'm now down to only 6% in gold, because I am not sure it will anything like double again from here, and fear it may even have a serious pull back if/when deflation persists, ...

Gold will do much more than just double. Of course, we will always fear the next pullback. :lol:

 

http://gold.approximity.com/gold_price_models.html

Gold_Price_to_MZM_Equilibrium_Price.png

MZM_Equilibrium_Gold_Price.png

 

Today could be the day we stepped into mania phase. ...2 years before I was expecting it!

Oh no!

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Gold Sweeps to Record High Above $1, 080

By REUTERS

 

Published: November 3, 2009

Filed at 2:49 p.m. ET

 

Skip to next paragraph NEW YORK/LONDON (Reuters) - Gold swept to a record high above $1,080 an ounce on Tuesday, defying dollar strength as the International Monetary Fund's 200 tonne sale of gold to India's central bank boosted sentiment towards the metal.

 

The purchase by the Reserve Bank of India underscored gold's increasing status as an official reserve. Gold's rally in the face of a stronger dollar also signalled the metal could rise further, dealers said.

Spot gold was at $1,087.25 per ounce at 2:20 p.m. EST (7:20 p.m. British time), up 2.6 percent from $1,059.15 quoted late in New York on Monday. Earlier, gold hit an all-time high of $1,087.45.

 

U.S. December gold futures settled up $30.90, or 2.9 percent, at $1,084.90 an ounce on the COMEX division of NYMEX.

 

The IMF said on Monday it had sold 200 tonnes of gold to India for $6.7 billion. The sale lifted some uncertainty from the market by helping soak up potential supply.

 

"It all generates from the fact that the IMF sold 200 tonnes to the Reserve Bank of India. That is very bullish as it takes 200 tonnes away from the direct market," said Bill O'Neill, partner at New Jersey-based LOGIC Advisors.

 

"That shows that future IMF sale will be conducted in a similar manner," O'Neill said.

 

The IMF sale, part of an agreement to sell about an eighth of the Fund's stock, fuelled speculation that other governments -- including Beijing -- may be ready to diversify their reserves even at near record prices.

 

Some traders noted that selling pressure was limited during Tuesday's sudden rally as major dealers were away from the trading desks attending the London Bullion Market Association's annual conference in Edinburgh.

 

NEXT STOP, $1,100?

The dollar hit a one-month high against a basket of currencies on Tuesday as investors retreated from risk assets, before paring those gains. The greenback later pared gains.

 

A strong dollar makes gold and other commodities priced in the U.S. unit less attractive for non-U.S. investors.

 

Gold's sharp rally in spite of a dollar rise showed that strong demand will continue support the metal.

 

"Gold is rallying regardless of currency actions," said Adam Klopfenstein, senior market strategist at futures broker Lind-Waldock.

 

Stephen Briggs, commodity strategist at RBS, said gold has clearly broken away from the relationship with the dollar.

 

"We wouldn't be surprised to see $1,100. It's gone up $25 in the space of half an hour, so how can one say?"

 

U.S. traders also said the gold market was finding support from potential for accelerated producer buybacks in as miners are keen to back gold they had previously sold forward.

 

Miners Anglogold Ashanti <ANGJ.J> and Barrick gold <ABX.TO> both told Reuters on Monday that closure of their hedgebooks might happen ahead of schedule.

 

Looking ahead, the U.S. Federal Reserve begins a two-day policy-setting meeting later this session.

 

While the bank is expected to keep benchmark interest rates unchanged near zero, there is speculation it might alter its pledge to keep rates low for an "extended period."

 

Other precious metals rallied in gold's wake, with silver adding 5.2 percent to $17.28 an ounce, against $16.43 an ounce late on Monday.

 

Less-liquid silver tends to be more volatile and often outperforms gold in a metals rally.

 

Platinum rose to $1,356 an ounce compared with $1,334.00, while palladium was at $324.00 against its previous session late quote of $321.50.

 

(Additional reporting by Michael Taylor and Maytaal Angel in London)

 

 

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Gold will do much more than just double. Of course, we will always fear the next pullback. :lol:

Yep the fear of a "big pullback just around the corner" has gotten me exactly nowhere. Sub £600 was a gift from god for UK investors looking to protect their wealth. Lesson learned listen to what your own analysis of the situation tells you. Best of luck everyone.

 

Love the rocket pic GF. Ah brought a smile to my face even though i have the dreaded swine flu!

 

EDIT: news of this action in the gold market may even start to get the wider public's attention. Well thats assuming they are not all too busy stuck in their over-priced mc mansions masturbating over property porn show re-runs from 2007! :lol:

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Baby, now we're talking!

 

space_shuttle_launch1.jpg

 

See you up there!

 

:P

 

God bless you Goldfinger!

The other day I was telling my mates (all of whom know little about gold) about these rocket posters and the 'see you up there' tag line.

They thought it was hilarious.

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Love the rocket pic GF. Ah brought a smile to my face even though i have the dreaded swine flu!

Oh dear, hope you'll be getting better soon. BTW, how do you know it's the swiny one?

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Yep the fear of a "big pullback just around the corner" has gotten me exactly nowhere. Sub £600 was a gift from god for UK investors looking to protect their wealth. Lesson learned listen to what your own analysis of the situation tells you. Best of luck everyone.

 

Love the rocket pic GF. Ah brought a smile to my face even though i have the dreaded swine flu!

 

Sorry to read that - hope you get well soon.

 

I must admit I am still expecting a pull back (the deflationary reverse with USD strengthening) but at the same time I'm not sure what this means for gold in GBPs. In Oct/Nov last year even when gold fell hard in USD it didn't fall anything like as much in GBP and then soon took off to new highs a few months later.

 

Do you expect to see sub £600 gold in the next few years?

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Baby, now we're talking!

 

space_shuttle_launch1.jpg

 

See you up there!

 

:P

 

You Sir, are a true gent!

 

I thank you, my family thanks you and my local BMW garage thanks you!

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EDIT: news of this action in the gold market may even start to get the wider public's attention. Well thats assuming they are not all too busy stuck in their over-priced mc mansions masturbating over property porn show re-runs from 2007! :lol:

 

Its not even made the MSM news from what I can see.

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Sorry to read that - hope you get well soon.

 

I must admit I am still expecting a pull back (the deflationary reverse with USD strengthening) but at the same time I'm not sure what this means for gold in GBPs. In Oct/Nov last year even when gold fell hard in USD it didn't fall anything like as much in GBP and then soon took off to new highs a few months later.

 

Do you expect to see sub £600 gold in the next few years?

Thanks for your concern folks. GP did a swab test. Not feeling any worse than I have with any other flu to be honest.

 

Anyhoo... sub £600 is certainly a possibility but if you are a UK based investor looking to protect your wealth I wouldn't wait for it before getting in to the market as I reckon the chances are very slim indeed. If it were to happen though it would be time to back up the truck with whatever dry powder you had left IMHO.

 

It will also be party time for Junior gold miners sometime between now and mid/end 2010 as costs go down and gold remains up.

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Default.

 

Good read: http://www.marketoracle.co.uk/Article14712.html

 

The Government Will Default on Its Debts

Quote:

The governments of every major nation are going to default on their debts. There are two relevant questions: (1) How? (2) When?

 

Ultimately, it is either the great depression or the Zimbabwe option. Ludwig von Mises called this the crack-up boom. It means the destruction of money and the collapse of the division of labor. It would mean devastation.

 

I think central banks will at some point refuse to fund governments any longer. They will bail out the largest banks instead. Foreign politicians may force hyperinflation on their central banks, as agents of the government. But as long as the Federal Reserve System maintains its selective independence, it will not adopt hyperinflation as a policy. That would not be in the interest of the largest banks. It would also not be in the interest of central bankers. Their retirement promises would die.

 

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Maybe we are not all tinfoil hat wearing doom-mongerers after all!

In a couple of years, gold will possibly be just like property and internet stocks yesteryear.

 

- Unlimited potential

- Finite supply, ever growing demand

- As solid as gold

- Golden opportunity

- Will never be worthless

- The sheiks will buy it all

- The Chinese will buy it all

- The Indians will buy it all

- Only ever goes up

- Gold loans underwritten by RBS and Lloyd's

- Tax incentives

- You name it

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In a couple of years, gold will possibly be just like property and internet stocks yesteryear.

 

- Unlimited potential

- Finite supply, ever growing demand

- As solid as gold

- Golden opportunity

- Will never be worthless

- The sheiks will buy it all

- The Chinese will buy it all

- The Indians will buy it all

- Only ever goes up

- Gold loans underwritten by RBS and Lloyd's

- Tax incentives

- You name it

You don't think gold is money then?

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You don't think gold is money then?

Sorry, if the irony wasn't clear. I just tried to come up with some arguments property rampers turned gold rampers would use.

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In a couple of years, gold will possibly be just like property and internet stocks yesteryear.

 

- Unlimited potential

- Finite supply, ever growing demand

- As solid as gold

- Golden opportunity

- Will never be worthless

- The sheiks will buy it all

- The Chinese will buy it all

- The Indians will buy it all

- Only ever goes up

- Gold loans underwritten by RBS and Lloyd's

- Tax incentives

- You name it

 

That will be the time to sell every ounce you have.

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FRANKFURT, Nov 3 (Reuters) - Gold and gold receivables held by euro zone central banks rose by 1 million euros to 238.169 billion euros in the week ending October 30, the European Central Bank said on Tuesday.

 

Net foreign exchange reserves in the Eurosystem of central banks fell by 0.5 billion euros to 174.2 billion euros, the ECB said in its regular weekly consolidated financial statement.

 

Gold holdings rose because of purchases of gold coin by one euro zone central bank.

 

The bank's balance sheet totalled 1.779 trillion euros, up from 1.786 trillion the previous week.

 

For details of the report, please see the ECB's Web site: http://www.ecb.int/press/pr/wfs/2009/html/index.en.html Keywords: ECB/RESERVES

 

 

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Gold’s Imminent Price Moon-Shot: A Simple Supply/Demand Story

 

By BILL MURPHY

 

Gold demand has been outpacing gold mine and scrap supply by more than 1,000 tonnes per year for the past decade … probably much more in some cases. The difference has been met by official bank selling and clandestine central bank lending … meaning bullion banks like JP Morgan Chase have been borrowing gold from central banks at extremely low interest rates and selling it into the physical market, using the proceeds for their internal operations, etc. As a result, the central banks have less than half of the 30,000 tonnes of gold they say they have, probably a lot less than half.

 

The unloading of central bank gold was not a fluke, but a coordinated effort, by a United States government-led Gold Cartel, to suppress the price of gold. This “scheme” was set in motion by Robert Rubin, as part of his role as Treasury Secretary, and was the essence of his “Strong Dollar Policy.” In a brilliant maneuver at the time Rubin, as CEO of Goldman Sachs’ London operations, began borrowing gold from central banks in the late 1980’s for next to nothing interest rates (say 1%, compared to the prevailing rates of 8% to 12%) as CEO of Goldman Sachs’ London operations, and eventually carried those dealings forward to new heights as US Treasury Secretary.

 

Presidents Clinton, Bush and Obama all have influenced bullion banks and other central banks to mobilize gold to suit their own agendas. One of them has been to keep US interest rates unnaturally and artificially low. This is not conjecture on GATA’s part. Gibson’s Paradox was the observation that the rate of interest and the general level of prices were observed to be correlated. The term was first used by John Maynard Keynes in his 1930 work A Treatise on Money. In 1988 Lawrence Summers co-authored a paper in the Journal of Political Economy titled “Gibson’s Paradox and the Gold Standard.” In essence he said there was a relationship between gold and interest rates … or, keep the price of gold down and US interest rates would also be kept down. Summers followed Rubin as Treasury Secretary and followed in his footsteps regarding US gold and his “Strong Dollar” policy.

 

The US Strong Dollar Policy did not stop at US shores. On May 7, 1999 Britain’s Gordon Brown, Chancellor of the Exchequer, announced in advance that England would sell 415 tonnes of its gold to the lowest bidders in the coming years in an auction format. This bizarre announcement stopped a rallying gold price in its tracks (for a couple of years) and was the SINGLE event over time which most attracted GATA’s brightest consultants and staunchest supporters. The “conspiracy” to hold down the price of gold could not have been more obvious as long as ten years ago. From my MIDAS commentary on May 6, 1999 the day BEFORE this critical gold sale announcement:

 

Deutsche Bank, Chase, Swiss Bank and Goldman Sachs were all there selling gold during today’s session and, when they had to, even throwing the kitchen sink at the bulls attack. Deutsche Bank has been especially aggressive and noticeable in their selling the past few days. We got word late this afternoon that their bullion desk is calling their clients saying that the gold market is stopping at $290.

 

more...

 

 

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Q+A - Why is India buying IMF gold?

 

MUMBAI (Reuters) - The International Monetary Fund has sold 200 tonnes of gold to the Reserve Bank of India (RBI) for $6.7 billion, quietly executing half of a long-planned bullion sale that has threatened to slow gold's ascent.

 

The deal will increase India's gold holdings to the tenth largest among central banks.

 

WHY IS RBI BUYING IMF GOLD?

 

Analysts say one of the reasons why the RBI was buying gold from the IMF was to shore up its gold holdings.

 

The latest purchase will lift its share of gold holdings from near 4 percent to about 6 percent, much less than most of the developed world but four times China's share.

 

India's foreign exchange reserves held at the central bank totalled $285.5 billion on Oct. 23, of which gold comprised just over $10 billion. India held 357.8 tonnes of gold reserves as of March 31, 2009, according to the latest data.

 

India built up its gold reserves to over 20 percent of its foreign reserves in 1994 after a balance of payments crisis in 1991. But the proportion of gold has since fallen significantly as total reserves swelled.

 

Another reason behind the buying may be India's push for a larger voting share in the IMF. Continued...

 

 

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