GOLD

[HPCsoYESTERDAY]

Looks to me like silver started to take off exponentialy, raising some automated alarm bells for the PPT.

 

They probably then just squished all PMs by triggerring some compensatory selling.

 

Hence, silver shot up, and then turned 180 degree and went South. Whereas poor old gold was just bumbling along and got dumped on.

 

You can also justify this interpretation by what happens next - gold (which had merely been pushed down) will now be deemed 'too low' by the market and will hold these levels or even creep back up today, whereas silver (which went up and then down, so is where it started) may fall somewhat further. They'll probably both end up about 1% down from where all this nonsense started.

 

...unless the 700B early Christmass gift for bankers is given out today

 

as good as a done deal now if you ask me, dow up well, McCain reckons it's in the bag and the red herring compensatory payments being squeezed will be the token win for the abstainers

[electroweak]

In GBP terms, we just recovered from today's dip. Hope y'all managed to get some Au.

[bitbigt]

as good as a done deal now if you ask me, dow up well, McCain reckons it's in the bag and the red herring compensatory payments being squeezed will be the token win for the abstainers

I agree, and generally felt the bail out was a very distasteful but necessary step. But now its getting ridiculous... They're apparently now extending the plan to give money not only to Walt St but also to Main St.

 

Think of the US situation as a family budget...

If dad (financial world) gets into excessive debt, perhaps his son (taxpayer) should be expected to bail him out. But that is only reasonable if you assume the son has money, and he's going to use it only to bail out his dad in a real emergency.

 

But what they are now moving towards is more akin to taking out a family loan to pay off family debt bills that they already can't service each month. It's like paying your mortgage with your credit card.

 

I say all this because

- the US tax take can't cover all this bailout money

- the money is going to everyone (Main St and Wall St) and not just to the broken bits of the system

 

So where, really, is all this money coming from? I doubt foreign investors will keep buying US treasuries to fund it all, as they're already selling those bonds and raising yields. An actual run on bonds starts to look like a real possibility. If I'm wrong, and those foreign investors do buy massive new US debt, then the dollar will be weakened and that will cause inflation, so making everyone a lot poorer. But if I'm right, then all that is left is the option of printing new money to pay for this bail out, which will dilute the dollar and weaken it that way, again causing massive inflation.

 

...time to bet against the dollar ?!!

 

In short: Wake up America - there is no such thing as a free lunch!

The US can't buy its way out of it debt mess without being realistic about where that bail out money is coming from, and what major downside there are in getting their hands on that money

[nicejim]

My inbox is being inundated with emails from many who are repeating claims made by some gold web sites that the Comex Gold contracts are now going to be settled as cash-only contracts in effect depriving buyers of the opportunity to take physical delivery of gold bullion.

Clearly there is not enough liquidity in the gold market. Just as taxpayers have had their savings and earnings given to the banks to ease liquidity problems there, the gold hoarders should have their gold handed over too. It stands to reason. When the homeowners have their houses taken from them to ease liquidity in the housing market, everything will start working again. There is no liquidity problem in the market for Ducal palaces and 20,000 acre estates of course.

 

Why is the $700bn bail out not being put out to competetive tender? I reckon I could do it for only $650bn

[nicejim]

Guys, I've got a question about half-sovereigns.

 

I received my first one today, an ebay purchase, and whilst it looks fine I've nothing to compare it to. With Sovereigns I balance the coin on my finger and gently tap the edge with a penny to hear the "ting" they make. When I do this with the half-sov the tone of the ting is lower. When I compare a pre-1992 (copper) 2p and 1p coin the smaller coin has a higher pitched ting, which makes sense to me.

 

Is the ting of my half-sov right?

[warpig]

Sounds like a dud mate. I collect fake coins, do you mind donating this to my collection?

 

Guys, I've got a question about half-sovereigns.

 

I received my first one today, an ebay purchase, and whilst it looks fine I've nothing to compare it to. With Sovereigns I balance the coin on my finger and gently tap the edge with a penny to hear the "ting" they make. When I do this with the half-sov the tone of the ting is lower. When I compare a pre-1992 (copper) 2p and 1p coin the smaller coin has a higher pitched ting, which makes sense to me.

 

Is the ting of my half-sov right?

 

[warpig]

Cheers. At least safe for the moment.

 

I believe BV banks with Lloyds TSB, at least that’s where I fund my BV cash account.

 

[enrieb]

Guys, I've got a question about half-sovereigns.

 

I received my first one today, an ebay purchase, and whilst it looks fine I've nothing to compare it to. With Sovereigns I balance the coin on my finger and gently tap the edge with a penny to hear the "ting" they make. When I do this with the half-sov the tone of the ting is lower. When I compare a pre-1992 (copper) 2p and 1p coin the smaller coin has a higher pitched ting, which makes sense to me.

 

Is the ting of my half-sov right?

 

Its not really the best way to check a coin, but I just carried out your test on some of my coins. The copper had a very high pitched ring and the sovereign was a dull heavy sound.

[Errol]

This is hardly scientific. Gold coins, when knocked together, always produce wonderful high-pitched rings. Quite unique once you've heard it.

[Compounded]

Really strange day today gold crashed at 3 pm BST, I cannot remember it ever doing it's regular daily dip at that time of day before.

 

 

I suppose it was something to do with the bailout.

 

 

Just thought have the USA moved to daylight saving time?

[nicejim]

This is hardly scientific. Gold coins, when knocked together, always produce wonderful high-pitched rings. Quite unique once you've heard it.

I think all coins will, and the tone of the ring should be a function of the metal and the size/shape. A pre-1992 2p has a much nicer ring to it that gold, it just doesn't have the same allure in other ways.

[enrieb]

U.S. Mint suspends Buffalo gold coins after depletion

Thursday, September 25, 2008

Reuters

http://www.canada.com/topics/news/world/st...85-4128914674e1

 

NEW YORK - The U.S Mint said Thursday it was temporarily suspending sales of American Buffalo 24-karat gold one-ounce bullion coins because strong demand depleted its inventory.

 

"Demand has exceeded supply for American Buffalo 24-karat gold one-ounce bullion coins, and our inventories have been depleted. We are, therefore, temporarily suspending sales of these coins," the Mint said in a memorandum to authorized American Buffalo dealers.

 

The Mint also told dealers that it would work to build up its inventory to resume sales shortly.

 

In mid-August, a shortage of American Eagle one-ounce gold coins due to "unprecedented" demand had also forced the U.S. Mint to temporarily suspend sales of the popular coins.

 

The Mint said Thursday it would continue to supply the American Eagle 22-karat gold one-ounce and American Eagle silver bullion coins on an allocation basis to coin dealers.

 

In addition, the half-ounce, quarter-ounce, and 1-10th ounce American Eagle gold coins and American Eagle platinum were also available, the Mint said.

 

Coin dealers from the United States to Canada have recently reported a surge in buying of bullion coins and other gold products as troubles in the financial markets prompted people to seek a safe haven in precious metals.

 

On Thursday, the U.S. gold contract for December delivery ended down $13 or 1.5 percent at $882 an ounce on the COMEX division of the NYMEX, while spot gold traded at $873 an ounce.

 

Bullion hit an all-time high of $1,030.80 an ounce on March 17.

 

[signofthetimes]

Why is the $700bn bail out not being put out to competetive tender? I reckon I could do it for only $650bn

 

Why didn't they save all the hassle and just go to Ocean Finance?

[Compounded]

Why didn't they save all the hassle and just go to Ocean Finance?

 

Do they still exist?

 

[Compounded]

U.S. Mint suspends Buffalo gold coins after depletion

 

[/indent]

 

I have one the ugliest coin I have ever seen but the colour the shine and the beauty of pure gold is good.

[Dispassion]

The policies of politicians have failed not the "free market". This mess has been caused primarily by Greenspans incredibly stupid monetary policy of setting the price of money too low. This in turn over-inflated the housing market. They have been literally living on borrowed time and should have taken the recessionary medicine years ago. If the markets had been left to price money, as Ron Paul suggests, we would never have had such a debacle.

 

The more they interfer and attempt to reflate the housing market, which is essentially price-fixing, the worse the end result.

 

If anyone's still in any doubt that the free markets have failed check out this definition of market failure, I'm sure you'll recognise some familar concepts, of particular interest is the definition of moral hazard:

http://en.wikipedia.org/wiki/Economics#Market_failure

[enrieb]

I have one the ugliest coin I have ever seen but the colour the shine and the beauty of pure gold is good.

 

I quite like the look of them, I only have one though. The only thing I dislike about it, is the way the edge varies in thickness between 2.6 and 3.25 millimetres as you turn it around. I can imagine that they wouldn't stack too well

[romans holiday]

Peter Schiff right on the money again.

 

http://www.europac.net/radioshow_archives.asp

 

His no nonsense tell it as it is podcasts have become my favorite.

 

 

One of the callers; " Ahhhh... I was wondering if you could explain what was going on in the world...."

 

 

 

Recent events have given a new meaning to "Wall Street unpsun"

[confounded]

What for gold in the short term (today).

 

I am forming the view that the bailout will crumble as people discuss moral hazard, I think they will allow the stock markets to crash for the first time in this crisis, over 1000 points in the next 3 trading days. Possibly 600 points plus today so they have the weekend to ram home the importance.

 

This will help people make up their minds about the bail out and will probably panic the bill through.

 

So if this scenario comes off what will happen to gold. Will it fall as people sell good assets to cover bad with also with the bail out not happening people take a less inflationary view increasing a precipitous sell off of PM's. Or will the panic of a proper crash in the SM's cause panic into safety of the yellow stuff?

 

Either way there will be fireworks in PM's today

[headmelter]

What for gold in the short term (today).

 

I am forming the view that the bailout will crumble as people discuss moral hazard, I think they will allow the stock markets to crash for the first time in this crisis, over 1000 points in the next 3 trading days. Possibly 600 points plus today so they have the weekend to ram home the importance.

 

This will help people make up their minds about the bail out and will probably panic the bill through.

 

So if this scenario comes off what will happen to gold. Will it fall as people sell good assets to cover bad with also with the bail out not happening people take a less inflationary view increasing a precipitous sell off of PM's. Or will the panic of a proper crash in the SM's cause panic into safety of the yellow stuff?

 

Either way there will be fireworks in PM's today

 

 

Have to agree, wondering what to do myself I have dry powder and am really in two minds, my recent decisions haven't been great so I feel I could be fcuked if I do and fcuked if I don't.

[ologhai]

Given that the bailout has hit some trouble, I would've expected stockmarkets to dive and gold to rise... So far, I seem to be 50% right...

[azazel]

Given that the bailout has hit some trouble, I would've expected stockmarkets to dive and gold to rise... So far, I seem to be 50% right...

 

It must be time for gold to go ballistic. Banks going bust and printing presses flat out and people still not flocking to gold!

[romans holiday]

What for gold in the short term (today).

 

I am forming the view that the bailout will crumble as people discuss moral hazard, I think they will allow the stock markets to crash for the first time in this crisis, over 1000 points in the next 3 trading days. Possibly 600 points plus today so they have the weekend to ram home the importance.

 

This will help people make up their minds about the bail out and will probably panic the bill through.

 

So if this scenario comes off what will happen to gold. Will it fall as people sell good assets to cover bad with also with the bail out not happening people take a less inflationary view increasing a precipitous sell off of PM's. Or will the panic of a proper crash in the SM's cause panic into safety of the yellow stuff?

 

Either way there will be fireworks in PM's today

 

The logic of inflation would seem to dictate that if the plan does not go through... it would be less inflationary and people may sell gold. However, I do not think the market follows this logic at the moment. If the plan doesn't go through people may panic further and buy gold as a safe haven [forgetting about the niceties of inflationary arguments]. If the plan does go through, people may feel safer and there could be a small sell off in gold. For now.

 

Personally, I see a tweaked up version of the plan going through which may bring a short feel good period.

 

Once people start to see the implications that the Paulson Plan has for the dollar, we will see a flight to gold. Before this flight there could be huge volatility up and down.... good opportunities to add to your pot.

[electroweak]

The logic of inflation would seem to dictate that if the plan does not go through... it would be less inflationary and people may sell gold. However, I do not think the market follows this logic. If the plan doesn't go through people may panic further and buy gold as a safe haven [forgetting about the niceties of inflationary arguments]. If the plan does go through, people may feel safer and there could be a small sell off in gold. For now.

 

Personally, I see a tweaked up version of the plan going through which may bring a short feel good period.

 

Once people start to see the implications that the Paulson Plan has for the dollar, we will see a flight to gold. Before this flight there could be huge volatility up and down.... good opportunities to add to your pot.

What if.....they let the stock market crash today. When it hits 1000pts down, they'll reduce interest rates to zero, go back to congress and ask again.

 

Of course, this is a fantasy scenario!

[grumpy-old-man]

It must be time for gold to go ballistic. Banks going bust and printing presses flat out and people still not flocking to gold!

 

I mean, what exactly do the investors invest in right now..........apart from pm's & things you can eat or hold.