GOLD

[frizzers]

Ker, coffee took a big hit this week and broke what I saw as support. Think the selling was related to the ETC panic. The seasonal chart suggests down into October, then up. But I don't think it's a bad bet from these levels. Volatile market though - you have to be quick to take prfits.

[HPCsoYESTERDAY]

monday we will have a pullback

you can try either at 823 with stop at 818 or 793 with stop of 788

p.s.

as always DYODD

 

I disagree Ker - whilst you were well on the money where silver was concerned, I think since the AIG bail-out you can throw ta out of the window*. Personally, I think we will see gold jump out of the traps on Monday.

 

but who knows eh?!

 

* for a while anyway

[HPCsoYESTERDAY]

Gold does not do "climb at a steady pace" it's a frisky animal.

 

 

If gold is a frisky animal, this is silver

[G0ldfinger]

Hardly have any time to read news at the moment.

 

Heard Hank & Ben will bail out everyone in return for used toilet paper?

 

Got to buy more of the yellow stuff soon!

[Steve Netwriter]

Hitler gets a margin call.

http://nz.youtube.com/watch?v=eVB-SSkkLnYVisit My Website

 

(Apologies to Germans on the board.)

 

 

 

That is one of the funniest things I've ever seen.

 

 

 

[Steve Netwriter]

from the silver page:

 

Increase in fee to purchase silver in London

 

Due to supply constraints and higher fees we are experiencing for bonded silver bars in London, we have adjusted our fee for customers making purchases of London silver. This new fee will remain in effect until further notice.

 

Therefore, unless you have a strong preference to own silver in London, we suggest that you consider purchasing silver in Zurich where the fee remains unchanged.

 

I don't think this has been given sufficient prominence !

 

That could be VERY significant !!!!

 

Edited to add:

 

From the GM Statements page:

 

 

18 September 2008 - Increase in Fee to Purchase Silver in London

 

Please note that this message is only applicable to customers buying silver stored at the vault in London.

 

This message does not apply to customers buying silver stored at the Zurich vault or gold stored at either location.

 

Due to supply constraints and higher fees we are experiencing for bonded silver bars in London, we have adjusted our fee for customers making purchases of London silver. This new fee will remain in effect until further notice.

 

The fee to purchase silver in London has been increased to 2.99%-7.86% above the spot price, depending on the size of the transaction. For metal-to-metal exchanges when converting into London silver, the fee has been increased to 2.63%-5.99% above spot. As before, all fees are included in the purchase price provided to you before you make your purchase.

 

Also as before, there is no fee on the sale of silver in London. You will still receive the spot rate.

 

Therefore, unless you have a strong preference to own silver in London, we suggest that you consider purchasing silver in Zurich where the fee remains unchanged.

 

If you have any questions, please feel free to contact us.

 

Kind regards,

GoldMoney Customer Support

[Pixel8r]

That could be VERY significant !!!!

 

He was only saying the other day on CWR with frizzers, that he hadn't noticed any shortages in 1000 oz bars yet, except one possible hiccup.

 

 

[G0ldfinger]

where are CG and GF when all this is kicking off ?

 

selling up?

 

sealing up their bunkers?

 

We should be told !

Just too busy to write recently. Anyway, THIS IS IT! (And it's not deflation! I am so fed-up with the deflation-morons...)

[Steve Netwriter]

I thought another review of the last years lease rates.

 

 

I think that says quite a lot.

 

[Steve Netwriter]

Wow !!!

 

Gold ETF Adds 36.5 Tonnes to Inventory On Rise in Demand

by: Tim Iacono posted on: September 18, 2008

http://seekingalpha.com/article/96079-gold...and?source=feed

 

The SPDR Gold Shares ETF (NYSE:GLD) inventory increased by 36.5 tonnes yesterday, an event that was probably related to the $85 increase in the price of the metal. This was the second biggest one-day addition, behind only the July 11th purchase of this year.

 

[romans holiday]

Just too busy to write recently. Anyway, THIS IS IT! (And it's not deflation! I am so fed-up with the deflation-morons...)

 

The end game is certain. Gold will perform. But the road we take to get there may not be so easy but a lot more crooked then we think. The nice simple theory of classic inflation; "printed money going into the mainstream economy pushing all prices up" has been sorely tested in the very recent past. With deflation in assets and huge deleveraging in commodities we were left scratching our heads as the price of gold plunged. Our theory was not performing... many started to doubt the theory and the end game itself.

 

Though it is all happy days now, I believe this could all happen again. Look what happened to the 180 billion odd that was supplied to foreign CBs. It was simply swallowed up in one big black hole. Look what is happening to money markets.... we effectively saw a run on them. These are massive deflationary forces which have forced the Fed's hand in nationalizing everything. I am wondering if all the "printed" money to come will likewise just feed one big nasty hungry hole without making its way into the main stream of the economy.

 

 

I see it differently from another perspective. The prices of commodities and consumables will rise when the dollar is devalued/deflated. This could easily happen on the international stage as the creditor nations downgrade the credit worthiness of the states; as they stop buying US debt. This in turn would led to a run on treasuries and the dollar. This in turn will see prices go through the roof.

 

[if this process is slow enough [a slow deflation of the dollar] it could lead to an extended period of chaos in prices with no discernable trend up and down as we would have both deflationary and inflationary forces at work in prices. Eventually the game would be up as investors see a currency crisis]

 

Deflation is alive and well [in economic terms maybe I say the opposite] and we should have a theory which recognizes it. We need a coherent theory to predict what will happen to prices and the wider economy and a theory which will guard from any coming alarms and surprises. Once again, I agree on the destination but the way we get there may not be so simple.

 

Regards.

 

Edit: I call my theory "neo-deflation"

[kernull]

Ker, coffee took a big hit this week and broke what I saw as support. Think the selling was related to the ETC panic. The seasonal chart suggests down into October, then up. But I don't think it's a bad bet from these levels. Volatile market though - you have to be quick to take prfits.

 

well, take a look at this chart. i have 3 bulilsh signs there + active trading that appeared yesterday. on the daily you will see V-shaped bottom. which we will challenging next week. if it is going to break out, we are going past 170 on long term imho

[qwerty]

Welcome to the World's Largest Gold Vault

 

 

http://abcnews.go.com/Business/story?id=5835433&page=1

 

 

Just a few blocks away from all the turmoil and panic of the stock market sits the world's largest stockpile of gold. Deep under the streets of Manhattan sits more gold than "James Bond" villain Goldfinger could ever imagine.

 

And I recently got a private tour inside the little-known vault.

 

Nearly $200 billion worth of gold rests on bedrock five stories underground, 30 feet below the city's subway system, inside the Federal Reserve Bank of New York's vault.

 

The Fed stores the gold for free but depositors pay $1.75 for each bar that is moved.

 

 

 

 

 

(because gold is a commodity of course!Wonder where they keep the soyabeans?)

 

Interesting with all this talk about backing toxic crap with gold reserves that this appears?

[romans holiday]

Why does the figure of $200 billion suddenly feel so small?

[warpig]

It's stored behind the copper in aisle 4.

 

(because gold is a commodity of course!Wonder where they keep the soyabeans?)

 

[warpig]

Hopefully soon to become $400BN+. Unfortunately for them they won't benefit from the price rise as they have already spent it.

 

Why does the figure of $200 billion suddenly feel so small?

[hotairmail]

Though it is all happy days now, I believe this could all happen again. Look what happened to the 180 billion odd that was supplied to foreign CBs. It was simply swallowed up in one big black hole. Look what is happening to money markets.... we effectively saw a run on them. These are massive deflationary forces which have forced the Fed's hand in nationalizing everything. I am wondering if all the "printed" money to come will likewise just feed one big nasty hungry hole without making its way into the main stream of the economy.

 

Good point. You can't look at the injections of money without understanding what it is they're trying to replace.

 

And with a number of organisations either out of business, nationalised or merged with others, will those companies be lending as much as before?

[Steve Netwriter]

The SEC have stepped up their game

 

SEC bans frowning

 

by Peter Forth, StockReflex| September 19, 2008

http://www.financialsense.com/fsu/editorials/2008/0919.html

 

In an unexpected move intended to prevent the continued slide of financial stocks, the SEC has banned all forms of frowning, scowling or cursing with regards to stock market activities.

 

“We needed to find a way to keep speculators from forcing valuations of our insolvent financial institutions to zero” said SEC Chairman Christopher Cox. This move follows another earlier move today in which the SEC banned short selling of nearly 800 financial stocks.

 

“Stopping evil shortsellers from making us recognize when companies are bankrupt is at most a stopgap solution. What we really need is to change the attitude of investors in America. Once they recognize that our failed institutions are actually too big to fail they will realize that the only failure was our attitude”.

 

“People need to start treating our venerable financial institutions with a little more respect. Until shortsellers forced them to open their books, our bankers have never let us down”, said Treasury Secretary Hank Paulson, “In fact, some of my best friends are bankers.”

 

One of the foremost experts on the great depression, Fed Chairman Ben Bernanke, added “It is not possible to have a depression in America if everyone just keeps smiling.”

 

What’s the next move in the government’s unconventional bag of tricks? “Which is worse: an evil shortseller or the financial analyst that recommended a stock be sold short?” speculated Mr. Bernanke, “These people are advising and inciting others to commit criminal shortselling activity and should be punished. We really need to be hearing only positive things to help us through this time of crisis.”

 

The Bush administration gave its blessing to the new moves, “We all just need to completely forget about this nasty episode, start smiling and buy lots of stocks”

 

 

 

 

 

 

 

This article is intended for comedic and sarcastic purposes only and none of the quotes contained therein are actually real.

 

[romans holiday]

The latest Bushism:

 

"Short sellers will be caught and persecuted!"

 

I hope it is not strangely prescient.

[mongoose]

I'm wary of what happens next week when the AIG backed ETFs might become tradable. I can see sell-offs in these ETFs which may have a negative affect on the spot pricess.

 

Now what happens with the money redeemed? Some will go back into PMs - but if prices are temporarily falling, some may be tempted to go into the rising short protected financials

 

Anyone have any views on this and the potential short term impact in prices?

 

 

[frizzers]

 

Welcome to the World's Largest Gold Vault

 

 

http://abcnews.go.com/Business/story?id=5835433&page=1

 

 

 

 

 

 

 

 

 

(because gold is a commodity of course!Wonder where they keep the soyabeans?)

 

Interesting with all this talk about backing toxic crap with gold reserves that this appears?

Billions of dollars are risked on exploration, billions more spent on extracting gold from deep in the ground at huge environmental costs only to then store the gold deep in the ground.

 

[notanewmember]

I ve been following Patriot Radio News Hour for a little while. I ve never heard them more furious than Fridays show 19/9/08! Well worth a listen to make sense of whats been going on this week.

 

http://patriotarchives.blogspot.com/

[romans holiday]

Billions of dollars are risked on exploration, billions more spent on extracting gold from deep in the ground at huge environmental costs only to then store the gold deep in the ground.

 

If it is there at all.

 

There are stranger things afoot in the world.

[Magpie]

Just too busy to write recently. Anyway, THIS IS IT! (And it's not deflation! I am so fed-up with the deflation-morons...)

 

Of course it's deflation. It's just that it's deflation being fought with an "inflation cure", and you think that the inflation cure will end up as the dominant force.

 

[UpTheKhyber]

The end game is certain. Gold will perform.

...

Deflation is alive and well [in economic terms maybe I say the opposite] and we should have a theory which recognizes it. We need a coherent theory to predict what will happen to prices and the wider economy and a theory which will guard from any coming alarms and surprises. Once again, I agree on the destination but the way we get there may not be so simple.

 

Regards.

 

Edit: I call my theory "neo-deflation"

Politics will trump economics I think. The US government has pretty much given up all pretence of there being a free market, and like it or not the few key players in the US administration will drive the global economic landscape. They also still hold some powerful bargaining chips:

. Most of the world's dollar assets are held by foreign countries, so who suffers most if it goes south?

. America is still the world's largest market so who will protectionism and trade sanctions hurt most?

. The influence of american multinationals in other countries' domestic political affairs is not to be underestimated.

. The US military-industrial complex still dwarfs that of any other nation.

 

Predicting the decisions these few key players will make over the next over the next few months/years is nigh on impossible. One thing is certain though; priority number one will be to protect the US's privileged position as printer of the world's reserve currency. I wouldn't rule out any option that might be taken to achieve that aim, including ones which would have adverse affects for holders of gold, such as price controls or compulsory purchase. What we'll see over the next few years could well make the actions of Franklin D. Roosevelt's New Deal look positively tame.

 

Not that I'm arguing against holding gold; it's still the least worst option I can see right now. But I wouldn't say the end game is certain by any means...