GOLD

[electroweak]

Just heard on Bloomberg that this was an OFFICIAL smackdown... CME group upped their margin requirements, apparently..

 

whee!

 

[kkeegan123]

US credit rating downgraded by China......again.

 

 

http://www.chinadaily.com.cn/china/2010-11...nt_11524811.htm

 

BEIJING - The United States has lost its double-A credit rating with Dagong Global Credit Rating Co., Ltd., the first domestic rating agency in China, due to its new round of quantitative easing policy.

 

Dagong Global on Tuesday downgraded the local and foreign currency long-term sovereign credit rating of the US by one level to A+ from previous AA with "negative" outlook.

 

The Chinese rating agency said the downgrade reflected the US's deteriorating debt repayment capability and drastic decline of the US government's intention of debt repayment.

 

"The serious defects in the US economy will lead to long-term recession and fundamentally lower the national solvency," Dagong said in a report.

 

Last downgrade was in June 2010, here is Dagong's full Nov report,

 

http://www.dagongcredit.com/dagongweb/uf/USARatingReport.pdf

 

An interesting extract from the report;

 

V. In essence the depreciation of the U.S. dollar adopted by the U.S. government

indicates that its solvency is on the brink of collapse, therefore it wants to cut its

debt through the act of devaluation with the national will; such a move has severely

harmed the interests of creditors. The whole world, consequently, will have to face

a period of dramatic adjustment of interest pattern.

 

JL

[G0ldfinger]

Just heard on Bloomberg that this was an OFFICIAL smackdown... CME group upped their margin requirements, apparently..

 

whee!

Is that margin for the LONGS only? What about the shorts?

[G0ldfinger]

US credit rating downgraded by China......again.

"The serious defects in the US economy will lead to long-term recession and fundamentally lower the national solvency," Dagong said in a report.

Ben's printing press is actually improving the US' rating since it makes sure everyone owed some paper will get the paper. So, not sure what the Chinese are trying to say here. To me it's nonsense. That the paid USD won't buy much should have nothing to do with the credit rating - that is the beauty of just printing it.

[G0ldfinger]

Just heard on Bloomberg that this was an OFFICIAL smackdown... CME group upped their margin requirements, apparently..

Link?

[G0ldfinger]

Beautiful! 20 more of these, and I'll be buying some really cheap gold!

 

 

[G0ldfinger]

Everything is selling right now versus USD. I don't think this is just a margin raise. Looks more like USD intervention to me.

[electroweak]

Link?

http://www.zerohedge.com/article/pm-sellof...ilver-5000-6500

Plus it was on Bloomberg, so it must be true.

 

"CME confirmed silver margins raised from $5000 to $6500 (30%) effective 11/10 settl - no other metals affected"

 

Presumably, this affects the maintenance margin. And is a lovely way to kill paper longs.... but not shorts, of course.

 

This is also the last remaining self-regulating way for the market to tell the genocidal lunatic in the Eccles building to go fornicate himself, and his excess liquidity.

[G0ldfinger]

...

Posted: Nov 09 2010 By: Jim Sinclair Post Edited: November 9, 2010 at 3:56 pm

...

Thought For The Day

The ultimate proof of a bull market is the increase of margin rates.

 

They are a professional tool to cover shorts and dictated by the board of directors of the exchange, which means floor traders.

[Carlton]

An interesting link I saw on JSmineset:

 

Gold's 7 Parabolic C Waves - Projection $1600

*

I believe that gold has traded in a repetitive ABCD pattern since the inception of its secular bull market in late 2001. The C wave of the pattern has characteristically concluded with a parabolic, near vertical ascent of price. We are currently in a C wave and I expect that our immediate future will witness a truly exciting and hair raising parabolic advance that will likely take gold to $1,600.

 

http://thetsitrader.blogspot.com/2010/11/g...projection.html

 

 

[romans holiday]

(Like everyone else wish i'd bought more before the madness started, still least i got in early with what i have)

I'm not so sure we've seen market madness rather than just the reasonably paced monetization of gold [20% odd a year against the dollar] . Habituated to think in terms of our own currency, the price looks more and more expensive. Yet if gold is just a strengthening currency relative to our local one, then the rational thing to do would be to continue swapping your local currency for gold. Looking at historical examples of currency depreciation, populations were always hesitant to swap their currency for foreign ones.... and like deers in the headlight ended up frozen while foreign exchange carried on up higher and higher. It was the investors and the internationally minded who got out quick.

 

I did my sums the other day, and calculated I have a little more dollars than necessary for my hedging and life-style change purposes [quitting work]. I guess I should swap them for a few more gold ounces.... or maybe some miners.

 

It goes without saying that it makes perfect sense for someone without gold, and with savings, to put some of those savings into gold... even at these "high" prices.

[romans holiday]

Gold Climbs on Increased Investor Demand for an Alternative to Currencies

 

http://www.bloomberg.com/news/2010-11-10/g...currencies.html

 

Gold reached a record $1,424.60 an ounce yesterday on concern debt-stricken nations in Europe will struggle to repay bondholders and spending cuts will stifle growth in the region. Precious metals have rallied as the U.S. Federal Reserve buys more debt to keep the economic recovery from flagging. CME Group Inc.’s Comex unit yesterday raised margin requirements for silver futures.

 

“People are still worried” about Europe and the U.S., said Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva. “Markets are still very concerned about quantitative easing. That’s why the trend for gold is still holding up.”

 

Immediate-delivery bullion added $12.90, or 0.9 percent, to $1,405.80 an ounce at 9:41 a.m. in London. The metal for December delivery was 0.3 percent lower at $1,405.90 on the Comex in New York, after yesterday reaching a record $1,424.30. Futures jumped before closing yesterday.

 

Futures settled at $1,410.10 on the Comex yesterday, a gain of about 1.2 percent from a trade of $1,392.80 four seconds earlier, exchange data on Bloomberg show. Prices opened at $1,392.90 today. Silver, platinum and palladium futures in New York also jumped before closing yesterday.

 

Gold is up 28 percent this year and is heading for a 10th annual gain, the longest winning streak since at least 1920 in London, partly on demand for an alternative asset to protect against the debasement of currencies. Governments have spent trillions of dollars to bolster their economies. Last week, the Fed said it will buy an additional $600 billion of Treasuries through June.

 

‘No Other Alternative’

 

“Paper money is being printed and printed, but there’s no other alternative,” said C.S. Oh, head of overseas futures team at NH Investment & Futures Co. in Seoul. “There’s no change to the fundamentals in the gold market. The dollar looks a bit stronger now, but it’s poised to weaken in the long term.”

...........

[Concrete Jungle]

I am not sure if this has been posted before. I just logged on to Tesco.co.uk and right at the bottom right hand side of the screen something caught my eye.

 

https://www.tescogoldexchange.com/

 

Tesco have started up a cash for gold operation, curiosity aroused I checked the price Tesco will pay for 1kg of 22 carat compared to Hatton Garden Metals for 1kg 22 carat. Tesco quoted online £18,030.00 plus 18030 clubcard points? Compared to HGM £24,605.39 and no clubcard points! Just over six and a half grand difference as I have no idea what clubcard points are or are 'worth'!

[Perishabull]

I am not sure if this has been posted before. I just logged on to Tesco.co.uk and right at the bottom right hand side of the screen something caught my eye.

 

https://www.tescogoldexchange.com/

 

Tesco have started up a cash for gold operation, curiosity aroused I checked the price Tesco will pay for 1kg of 22 carat compared to Hatton Garden Metals for 1kg 22 carat. Tesco quoted online £18,030.00 plus 18030 clubcard points? Compared to HGM £24,605.39 and no clubcard points! Just over six and a half grand difference as I have no idea what clubcard points are or are 'worth'!

 

Wow, I think this could be quite significant. Yesterday I was thinking about how supermarkets could operate a dual pricing system so £ and gold grams but they don't have a mechanism to accept payment in anything other than Sterling. Clearly if Tesco are doing this it could be an initial step into that arena...

[aardvark]

the highest they offer is 22carat so you need to take that into account when sticking the number of grams in - clearly designed for chavs and their chavvy jewelery

 

[Pixel8r]

Looks like I hit that one bang on!!!

 

The question is were now, I say the pattern breaks and we carry on through the resistance.

 

 

[shawth]

Looks like I hit that one bang on!!!

 

The question is were now, I say the pattern breaks and we carry on through the resistance.

 

 

why would the pattern break. surely the price has to hit the diagonally sloping line before the peaks start getting less and less before next upleg? Therefore the upper red line has been drawn in the wrong place.....or am i reading it incorrectly?

[d2thdr]

Today on PM BBC 4 about 5.35pm Eddie Mayer was talking about how well Germany is doing with its exports, but the people are not buying anything. The only thing that is being bought is significant amount of gold. I then thought, when will Britain and US learn. Perhaps after an serious episode of hyperinflation?

[Pixel8r]

why would the pattern break. surely the price has to hit the diagonally sloping line before the peaks start getting less and less before next upleg? Therefore the upper red line has been drawn in the wrong place.....or am i reading it incorrectly?

My point was that the diagonal sloping lines were acting as heavy resistance on the previous two occasions, in that it took a year and half to break through them. I don't think it is going to take that long this time and think we will quickly be through the upper line.

 

 

[Schaublin]

Today on PM BBC 4 about 5.35pm Eddie Mayer was talking about how well Germany is doing with its exports, but the people are not buying anything. The only thing that is being bought is significant amount of gold. I then thought, when will Britain and US learn. Perhaps after an serious episode of hyperinflation?

 

I listened to it. Interesting that the Chinese and other Eastern countries are buying German technology - and some Germans are saving their wealth in gold. Their 'produce and save' (in a proper store of wealth) mentality is being criticised by the feckless spend and borrow and produce nothing nations!

[Pixel8r]

Pixel looks like a bl00dy genius right now.

Thanks GF, I missed you post before I posted mine.

 

 

[LauraB]

Today on PM BBC 4 about 5.35pm Eddie Mayer was talking about how well Germany is doing with its exports, but the people are not buying anything. The only thing that is being bought is significant amount of gold....

 

He really said that?! - It must have sounded so alien to those with a locked-in property mindset; so will have been dismissed immediately.

 

[G0ldfinger]

I listened to it. Interesting that the Chinese and other Eastern countries are buying German technology - and some Germans are saving their wealth in gold. Their 'produce and save' (in a proper store of wealth) mentality is being criticised by the feckless spend and borrow and produce nothing nations!

Schaeuble, the finance minister, recently argued that the EU trade with the US is essentially balanced, so criticizing Germany would be like criticizing one of the 50 states of the US.

[d2thdr]

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[fitkid]

Thanks GF, I missed you post before I posted mine.

 

The THANKS should be to you from all who have followed your posts and benefited SIR PIXEL8R.