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Good point

 

But I'm beginning to wonder whether we will actually see another "event" such as the violent credit freeze and subsequent deleveraging that we saw in 2008.

This got me thinking about that other "event".

 

There has been a lot of talk about a "currency event", especially among the Jim Sinclair community. I gather the idea is that a sudden currency devaluation would lead to a hyper-inflation in prices [making the conventional scenario for inflation via over-heated markets redundant].

 

I wonder if we have already have a "currency event". Namely, gold being monetized and evolving into a currency right here, right now.

 

From: http://www.youtube.com/watch?v=elX3Ol9ommc

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This got me thinking about that other "event".

 

There has been a lot of talk about a "currency event", especially among the Jim Sinclair community. I gather the idea is that a sudden currency devaluation would lead to a hyper-inflation in prices [making the conventional scenario for inflation via over-heated markets redundant].

 

I wonder if we have already see the "currency event". Namely, gold being monetized and becoming a currency right here, right now.

 

Well I certainly think India has piped in with their opinion on that..... ;)

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I'm noticing more and more of these "post us your old mobile phone and we will send you a cheque" based companies on TV and in the newspapers.

 

www.Envirofone.com

 

Is this one of the reasons?

 

http://uk.reuters.com/article/idUKT13528020080427

A tonne of ore from a gold mine produces just 5 grams (0.18 ounce) of gold on average, whereas a tonne of discarded mobile phones can yield 150 grams (5.3 ounce) or more, according to a study by Yokohama Metal Co Ltd, another recycling firm.

 

 

 

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Well-spotted Diet Cola Additct. I looked up the price of an old sony phone i have here and for the two quid they offered, I couldn't be bothered to "recycle" it.

 

Speaking of the price of gold, it's still not up to much in GBP. Only around £660, which we saw in February, and again a few weeks back.

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What it says to me is that the fiat currencies are more volatile than gold recently, even with the latest 'moonshot'.

I find the following charts of interest comparing gold and the dollar with the Aussie dollar. Perhaps this price move is in part correlated to the carry trade.... for now.

 

I suspect that even if the carry trade reversed at some point, gold would not decline too much.

 

 

ausUSgold.gif

 

ausgold.gif

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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 can ETFfffing-well buy it 'off-plan'? :rolleyes:

 

 

 

 

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[All] Alan weighs in on gold:

 

http://allallan.blogspot.com/2009/11/gold.html

 

The above Daily chart of GLD provides some precautionary hints against jumping on the Gold bandwagon right now. The software is counting 5 waves up along with a divergence on the Elliott Oscillator (annotated above). In addition, the False Bar Stochastic is just a few days away from a Sell Signal setup.

 

On the other hand, the only argument left is the only one that really matters, GLD is clearly in an uptrend. Bullish on Gold, but on guard for a change-in-trend.

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Gold Starship: Family Reunion On Pluto?

 

Latest missive from Stewart Thomson

 

I love this guy.

 

1. Ladies and gentlemen, we have liftoff. The gold bullion rocket has taken off. I warned those standing under the gold rocket trying to pick the next $50 move in gold, they would be vaporized. A huge contest in the gold community emerged to see who could totally ignore the Michaelangelic head and shoulders pattern, while making the greatest prediction on how low gold would go. 1000, 980, 950 were all popular predictions of the micro men. Many went short, with a genius play to make money on the way to their imaginary targets.

 

2. Do you really think people so focused on gold's decline really owned gold themselves? No. They blew out their core positions to play 'gold hamburger flipper.' The burger landed on the floor and the banksters just stomped on it. The flippers are dead.

 

3. As I write this at 4am, gold has surged to almost 1100, and the gold top callers are nothing but a pile of charcoal, buried with their systems, micro charts, and golden tiddly wink forecasting kits. They've been calling the top from 905! That's almost $200 of total failure.

 

4. This is the OTC derivatives show (OTCDs). Not the coming mine supply show. Not the gold jewellery show. Not "the govt is too big show," And certainly not "the top is in because some idiot sold a thousand bucks of 10 carat gold plated jewellery in a hotel room to a glorified pawn shop broker."

 

5. The big picture of the gold market is the deflation (to zero for a lot of it) of a thousand trillion dollars of OTCDs and gold's response to the central bank "solution" of devaluing the currency so the toilet paper OTCDs can be marked to something resembling market.

 

6. Soon the emails will start. They will want to get in on gold. Questions like, "what's happening, gold looks pretty good, right, Stewart?" Where were these people at 680? At 905? Others that sold out will ask, "But why is gold rising, I don't understand?"

 

7. This is the gold rapture. No prisoners will be taken. If you are a long term investor, the strategy now is to sit there in the corner and wait. Wait for much higher prices before selling anything. You need to decide who you are, where you sit on the investor-trader scale. Investors want to become traders on severe price weakness, and traders want to become investors into great strength like we have now. If you are a trader, selling now is as hard as buying at 905 and 680 was. It has to be done if you want to act professionally. You are selling into a price strength surge that feels like it will never end.

 

etc continued here on 321gold.

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It seems as if Pixel8r has nailed it:

 

http://gold.approximity.com/gold-silver_watch.html

Gold_USD_Pixel8r.png

 

Yeah, nice 1 Pix. I wonder if the pattern will repeat again. Peak in feb-may 2010, correct over the rest of 2010 and first half of 2011 (pound fall aginst dollar) and then rocket again in second half of 2011 and spring of 2012 just in time for the end of the world in december 2012....Dooh!

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