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Paper gold trading, that is.

 

http://jsmineset.com/2010/01/01/in-the-news-today-417/

Jim Sinclair’s Commentary

 

First China and now Vietnam react to derivatives, Vietnam to paper gold derivative trading, China to energy and credit default derivatives.

 

The headline is extremely misgiving. Paper gold derivative trading has been halted. Cash gold trading survives.

 

It might be a neat idea for the West, but it will not happen.

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http://goldismoney.info/forums/showpost.ph...postcount=32528

From Richard Russell today.

 

Question -- Russell, you've been bending our ears about buying gold ever since the year 2000. Out with it, at what point or at what level do I sell my gold or silver?

 

Answer -- An excellent and important question. The answer (and this may not surprise you) is that you NEVER sell your gold or silver (or platinum, for that matter). These precious metals are an integral part of your estate and net wealth. I don't care what the current price of gold is, gold represents unencumbered wealth.

 

Let me give you an example from the rich man's standpoint (and remember, this guy didn't get rich by being stupid). The rich man accumulates and holds ten thousand ounces of gold. At one point (such as today) his gold holdings are worth $12 million dollars. He's still rich.

 

Then gold declines to a price of $700 an ounce during a crushing world deflation. Bankruptcies rule, and the price of anything and everything with debt against it has collapsed. At this point the rich man is holding $7 million worth of gold. The fellow is still very rich. Next comes a run-away inflation and gold climbs to $2500 an ounce. Here the fellow owns $25 million dollars worth of gold. Now he's almost embarrassingly rich, at least in relation to his neighbors.

 

You see the point. In holding ten thousand ounces of gold, this fellow is always rich, but let's call it shades of rich depending on the economy. So the rich man isn't trying to 'beat" or "out-trade" the gold market. He holds his gold as an eternal store of wealth though good times and bad.

 

There's only one argument against the above thesis. The argument is that gold becomes a "worthless barbaric relic" of a metal. And suddenly, nobody wants gold. How valid is that argument? Five thousand years of history say that argument is wrong. I've said before that the value of gold appears to be etched into the DNA of mankind. There's never been an instance since pre-Biblical times when men didn't lust after gold.

 

Conclusion -- Learn from the rich man. Never mind today's price of gold; mind how many ounces of gold you own.

So much for a 'core' position. :) Disclaimer: I will sell most of my gold when the time will be right.

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http://goldismoney.info/forums/showpost.ph...postcount=32528

 

So much for a 'core' position. :) Disclaimer: I will sell most of my gold when the time will be right.

But isn't that what "core position" means? Something you will hold onto... or what it is which you are trying to accumulate. As for selling your gold... my guess is that you will only swap for property... but it will probably make a lot of sense in the future not to sink ALL your capital into property and remain relatively liquid. then it makes sense to not sell [all] your gold as Russell is suggesting above.

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Here are some longer term charts:

 

http://gold.approximity.com/since1885/ (USD, GBP)

http://gold.approximity.com/since1968/ (USD, GBP, EUR)

 

Hi Goldfinger

 

Nice charts. Looking at your 1968 to present CPI adjusted gold value it shows a much bigger historic high than my data http://retirementinvestingtoday.blogspot.c...-investing.html

Are you using daily close figures thus the very large peak? I'm using monthly averages.

 

Could it be worth adding a trendline to your chart as on my chart it seems to demonstrate nicely the fact that gold is an excellent store of value over a long period?

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Do you mean $1133?

Just catching up on some past posts aftering returning from a holiday in Bali.

 

1033 is the previous high set back in Mach 2008. A close above this for 2009, which gold did, bodes well for gold in 2010 as indicated by Armstrong and others.

 

Happy New Year to all!

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Sticking to the game plan of diverse currencies:

 

Earning currency is Korean Won

Native currency is Kiwi dollars

Reserve currency is the dollar

Speculating currency is silver

Saving/ accumulating currency is gold.

So RH are you living in Korea? I lived in Ulsan in 97/98 and experienced the IMF crisis as the Koreans called it.

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So RH are you living in Korea? I lived in Ulsan in 97/98 and experienced the IMF crisis as the Koreans called it.

Yep, been working at a university in Seoul now for four years. Good pay and working conditions [4 months paid holiday a year]. Have to admit I'm a little nervous about the Won and will most probably bail next year back to NZ. I wouldn't be surprised to see some kind of IMF crisis 2 this year. Am in the process of moving into a great apartment on the top of a building with a wrap-around verandah... gets the sun all day. The landlady was very keen for me to sign a 2 year lease, but I insisted only on the one year.

 

I do not keep much money in Won, and have a small ingot of gold handy for a quick exit if needed. :lol:

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It's all eyes on Friday's US employment stats. If they're positive, this could be the ideal news to justify the momentum that's building behind the dollar. In due course, could this present an ideal opportunity to reload on Gold? I've got some sterling on its way to James Turk at the moment..

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Yep, been working at a university in Seoul now for four years. Good pay and working conditions [4 months paid holiday a year]. Have to admit I'm a little nervous about the Won and will most probably bail next year back to NZ. I wouldn't be surprised to see some kind of IMF crisis 2 this year. Am in the process of moving into a great apartment on the top of a building with a wrap-around verandah... gets the sun all day. The landlady was very keen for me to sign a 2 year lease, but I insisted only on the one year.

 

I do not keep much money in Won, and have a small ingot of gold handy for a quick exit if needed. :lol:

Sounds like you have a nice flat in Seoul. I always enjoyed my visits to Seoul - especially Insadong. I was in Korea for a year then Japan and now Hong Kong - So have definately been enjoying the Far East.

 

I found people in Korea very generous as I am sure you know - I was given a Hyundai Stellar. When the IMF crisis hit loads of people donated their gold jewelry to the government to help out.

 

How do you think IMF crisis 2 will play out?

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Sounds like you have a nice flat in Seoul. I always enjoyed my visits to Seoul - especially Insadong. I was in Korea for a year then Japan and now Hong Kong - So have definately been enjoying the Far East.

 

I found people in Korea very generous as I am sure you know - I was given a Hyundai Stellar. When the IMF crisis hit loads of people donated their gold jewelry to the government to help out.

 

How do you think IMF crisis 2 will play out?

Not a bad spot. As far as a crisis goes, I think the currencies/ stock markets of emerging countries will get hammered.... while the dollar spikes. I think Korea is relatively well placed to export more in the future to China than the US... but until the peg gets sorted out, we might just see another bursting bubble in Chinese assets in a year or so. I feel like I'm living a little on the edge here. :lol:

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After a good run up in 2009, 2010 could see a corrective year [similiar to 2008] for gold where 3 digit prices are seen again before going to new heights. Will the next corrective phase be even more violent?

 

But who is brave enough to sell in the short term RH?

 

& Neil Charnock seems not to agree. (Do you rate him?)

 

Gold is still following the fractal pattern as observed over the past several years as shown above. I have drawn in some resistance / support lines and circled the relevant RSI tops to show that all is in order in the big picture. I see no reason to expect any significant deviation from this trend at this stage – this is an orderly uptrend which is headed for approximately $1,400 by May this year

 

http://www.kitco.com/ind/charnock/jan052010.html

 

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But who is brave enough to sell in the short term RH?

 

& Neil Charnock seems not to agree. (Do you rate him?)

I wouldn't sell in the short term. But would keep some powder dry to buy when gold is cheaper [silver for me] and assuming your purchasing currency is the dollar. I think it will take longer for gold to reach those targets than NC suggests. His chart is very short term bullish. imo there's no need to rush out and buy here... unless of course you don't have a decent position already in gold.

 

Edit: I think we all tend to read our own preconceptions into charts... something to do with "theory laden observations" no doubt. I notice on his chart the earlier RSI top [2006] resembles even better the latest... and gold tracked sideways for a year.

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newgold.gif

 

After a good run up in 2009, 2010 could see a corrective year [similiar to 2008] for gold where 3 digit prices are seen again before going to new heights. Will the next corrective phase be even more violent?

 

NO.

 

Silver manipulation to end in 2010!

 

So maybe the question should be...will we see 3 digit Silver prices? :o

 

 

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Not sure if posted before -

 

CHINA'S PRESSING NEED TO BUY GOLD

(…there will NEVER be a peak gold price)

 

=======Total foreign reserves=======Percent Gold reserves

CHINA-----$2,273,000,000,000----------------1.5%

 

USA, GERMANY, ITALY, FRANCE---------------65.2% (Average)

 

http://www.gold-eagle.com/gold_digest_08/vronsky122909.html

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