GOLD

[warpig]

How about... Good Old Lager Drinkers

 

Any suggestions for the June title? How about "Summer Dulldrums to prove JS wrong?" or "head and shoulders found at foot of mountain?"

[LauraB]

Wonder where Steve is haven't seen him for over a week.

 

This makes a strong case for admin on forums to be tagged ............ by order

[Jake]

Steve was told to 'lay off' and he has. (about Pesavanto). At least that is my guess.

[dietcolaaddict]

Gold (once again) within touching distance of four figures. It needs to hold this time with the dollar weakening.

I'll be wearing my lucky underpants tomorow!

[nicejim]

Gold (once again) within touching distance of four figures. It needs to hold this time with the dollar weakening.

I'll be wearing my lucky underpants tomorow!

I've had mine on since Thursday!

[Pixel8r]

Steve was told to 'lay off' and he has. (about Pesavanto). At least that is my guess.

I have sent him a message, hopefully he will be back soon.

 

 

[dst]

 

Nice chart of POG measured in a basket of currencies:

 

http://news.goldseek.com/BullionVault/1243954800.php

 

The world's money en masse has shed nearly two-thirds of its value in gold since the start of 2000.

[azazel]

Ill be a wee bit pissed if gold goes to $1200 and the pound is $2.00 and gold GBP is still £600.

 

I found this site to be interesting. http://arabianmoney.net/

 

[HPCsoYESTERDAY]

Ill be a wee bit pissed if gold goes to $1200 and the pound is $2.00 and gold GBP is still £600.

 

I found this site to be interesting. http://arabianmoney.net/

 

the flip side to this is that any subsequent fall in £ vs. $ may be more marked than falling $pog.

 

example: in March 2008 you could buy kruggers at £500 when the £=$2 (and pog $1000 of course) all approximately, so high £>$ and high pog, gives a somewhat protected position.

 

fwiw, i don't see £=$2 with a pog price tag of $1200, $1400 maybe,

 

anyway, I'm not trading gold so it is somewhat irrelevant to me; I have less than 10% of my wealth in gold, so I cannot see me selling any of my insurance policy. I have a bigger position in silver and trade a small % of this for fun!

[lowrentyieldmakessense(honest!)]

Ill be a wee bit pissed if gold goes to $1200 and the pound is $2.00 and gold GBP is still £600.

 

I found this site to be interesting. http://arabianmoney.net/

 

dont be greedy after the 2008 performance in GBP

 

Gold % Annual Change
   USD 	AUD 	CAD 	CNY 	EUR 	INR 	JPY 	CHF 	GBP
2001 	2.5% 	11.3% 	8.8% 	2.5% 	8.1% 	5.8% 	17.4% 	5.0% 	5.4%
2002 	24.7% 	13.5% 	23.7% 	24.8% 	5.9% 	24.0% 	13.0% 	3.9% 	12.7%
2003 	19.6% 	-10.5% 	-2.2% 	19.5% 	-0.5% 	13.5% 	7.9% 	7.0% 	7.9%
2004 	5.2% 	1.4% 	-2.0% 	5.2% 	-2.1% 	0.0% 	0.9% 	-3.0% 	-2.0%
2005 	18.2% 	25.6% 	14.5% 	15.2% 	35.1% 	22.8% 	35.7% 	36.2% 	31.8%
2006 	22.8% 	14.4% 	22.8% 	18.8% 	10.2% 	20.5% 	24.0% 	13.9% 	7.8%
2007 	31.4% 	18.6% 	10.4% 	23.0% 	17.9% 	17.5% 	24.7% 	21.5% 	29.2%
2008 	5.8% 	32.5% 	32.4% 	-1.1% 	11.9% 	30.4% 	-14.9% 	0.2% 	44.3%
Average 	16.3% 	13.3% 	13.6% 	13.5% 	10.8% 	16.8% 	13.6% 	10.6% 	17.1%

[electroweak]

Russia says world needs more reserve currencies

02 Jun 2009 - 20:00

* Medvedev says perception of the U.S. dollar has changed

* Warns of accelerating global inflation

* Kremlin says Bretton Woods system needs reform

 

MOSCOW, June 2 (Reuters) - The world needs a wider range of reserve currencies because the economic crisis in the United States has changed perceptions of the dollar, Russian President Dmitry Medvedev said in an interview published on Tuesday.

 

Russia, which holds the world's third largest foreign exchange reserves, says the crisis has shown the failings of the financial system set up by the 1944 Bretton Woods conference and wants global institutions to be reshaped.

 

"The world needs more reserve currencies," Medvedev told U.S. television station CNBC, according to the text of the interview provided by the Kremlin.

"The perception of the dollar has naturally changed because of the crisis in the American economy."

"The current situation demands a bigger number of currencies which could be used for investing money and by banks, citizens and states," the Kremlin chief said.

 

Moscow in recent years has reduced the dollar's role in its reserves, which totalled $399.9 billion on May 22, and repeatedly called for the use of the Russian rouble as a regional reserve currency.

"In the near future, our task is the creation of more reserve currencies," Medvedev said.

 

He said that China, which has the world's biggest hoard of foreign currency reserves, supported Moscow's idea for making the International Monetary Fund's Special Drawing Rights (SDR) the basis of a new supranational currency.

Medvedev said Russian gross domestic product would contract by "no less than 6 percent or perhaps even more," in 2009 and called on the government to deal with difficult levels of unemployment.

 

When asked about the risk of global inflation soaring, he said: "In this situation there is a threat of an acceleration of inflationary processes in the world and that could result... in problems for the banking system." (Reporting by Guy Faulconbridge, editing by Andy Bruce) ((guy.faulconbridge@reuters.com, +7 495 775 12 42))

 

Keywords: RUSSIA CURRENCY/MEDVEDEV

[ziknik]

EDIT: A coin collector has been robbed at gun point for his coins

 

http://www.bbc.co.uk/crimewatch/appeals/20...oin_theft.shtml

 

...

A third attacker then arrived from the van and pushed the gun from Vaughan's mouth shouting at the first attacker for bringing a gun. While the other two attackers grabbed Vaughan's wallet, rings and watch, the third attacker made it clear they had come for his coins. Vaughan helplessly led them through his house to the spare room where he kept the coins. Without checking the bag the coins were kept in, the attackers immediately left, leaving Vaughan dazed. After coming round from the shock of the attack Vaughan called the police.

...

 

There's a video reconstruction at the above link.

 

I'm going to keep a bag of bricks in my bedroom

[Steve Netwriter]

Last month's thread ends here:

http://www.greenenergyinvestors.com/index....st&p=111260

 

 

[Steve Netwriter]

Happy June

 

New thread here:

http://www.greenenergyinvestors.com/index.php?showtopic=6774

 

 

[azazel]

Happy June

 

New thread here:

http://www.greenenergyinvestors.com/index.php?showtopic=6774

 

He's back! Did you find cgnao whilst you were AWOL?

[warpig]

I've thought about buying a bag of these just in case.

 

http://cgi.ebay.co.uk/Replica-20-LIBERTY-H...p3286.m63.l1177

 

EDIT: A coin collector has been robbed at gun point for his coins

 

http://www.bbc.co.uk/crimewatch/appeals/20...oin_theft.shtml

 

 

 

There's a video reconstruction at the above link.

 

I'm going to keep a bag of bricks in my bedroom

[wren]

Northwestern Mutual Makes First Gold Buy in 152 Years (Update2)

 

By Andrew Frye

 

June 1 (Bloomberg) -- Northwestern Mutual Life Insurance Co., the third-largest U.S. life insurer by 2008 sales, has bought gold for the first time the company’s 152-year history to hedge against further asset declines.

 

“Gold just seems to make sense; it’s a store of value,” Chief Executive Officer Edward Zore said in an interview following his comments at a conference hosted by Standard & Poor’s in Brooklyn. “In the Depression, gold did very, very well.”

 

Northwestern Mutual has accumulated about $400 million in gold, and Zore said the price could double or even rise fivefold if the economy continues to weaken. Gold gained 10 percent last month, the most since November. The commodity has more than tripled since 2000, rising for eight straight years. Gold futures for August delivery slipped $4.80 to $975.50 at 4:03 p.m. in New York.

 

“The downside risk is limited, but the upside is large,” Zore said. “We have stocks in our portfolio that lost 95 percent.” Gold “is not going down to $90.”

http://www.bloomberg.com/apps/news?pid=ema...id=ajf0L9wTPq6Y

Institutional interest.

 

[ziknik]

I've thought about buying a bag of these just in case.

 

http://cgi.ebay.co.uk/Replica-20-LIBERTY-H...p3286.m63.l1177

 

That’s a pretty good idea

 

http://shop.ebay.co.uk/?_from=R40&_trk...mini+krugerrand

 

[warpig]

Krugerrs might look more authentic with that copper hue. How many would you need to look convincing... 20 perhaps?

 

That’s a pretty good idea

 

http://shop.ebay.co.uk/?_from=R40&_trk...mini+krugerrand

[ziknik]

Krugerrs might look more authentic with that copper hue. How many would you need to look convincing... 20 perhaps?

 

I’d be happy if I could get 10 of them mini krugs for £10. They’d make me feel like I had a decent gold collection. Rising Sterling has some benefits

 

I don’t think any armed organised criminals will waste time robbing gold from me. My TV + computer are worth more than my entire gold collection.

 

……. maybe I need to buy a fake TV

 

[warpig]

Ikea do a nice range of fake TV's... I was talking to a friend earlier and I'd like to make a throne out of 5KG silver bars, what an office chair that would make. Perhaps I need a fake one and a real one.

 

I’d be happy if I could get 10 of them mini krugs for £10. They’d make me feel like I had a decent gold collection. Rising Sterling has some benefits

 

I don’t think any armed organised criminals will waste time robbing gold from me. My TV + computer are worth more than my entire gold collection.

 

……. maybe I need to buy a fake TV

[wren]

Only the companies I deal with and tax office know that I own gold and silver.

 

Tell people on a need-to-know basis only.

 

In the depression burglaries will probably get a lot worse. Act poor even if you are not.

 

And thanks to Steve for setting up the new thread and generally helping to keep things in order. Good job!

[ziknik]

Ikea do a nice range of fake TV's... I was talking to a friend earlier and I'd like to make a throne out of 5KG silver bars, what an office chair that would make. Perhaps I need a fake one and a real one.

 

Ikea do a range of covers for silver thrones too

 

http://www.ikea.com/gb/en/catalog/categori...ing_room/10664/

[romans holiday]

Ill be a wee bit pissed if gold goes to $1200 and the pound is $2.00 and gold GBP is still £600.

 

I found this site to be interesting. http://arabianmoney.net/

Buy some dollars with your pounds.

[wren]

Paul Tustain of BullionVault has just sent out an email to customers which I think provides a good brief summary of the monetary situation.

 

I hope BV does not mind if I post his email in its entirety here (bolded by me):

Topic: The first steps to hyper-inflation

 

Dear BullionVault user,

 

Not for the first time the Financial Times says we are "nuts" - a

word which all too often follows on from "gold" in the financial

media.

 

I should rise above this sort of thing. What does it matter if the

FT thinks me nuts? But I find I'm irritated, both for myself and

on the collective behalf of successful gold investors. I don't

think we deserve to be called "nuts" after our gold has for 6

years so consistently outperformed all those other serious

investment classes so diligently analysed on Wall Street and in

the City.

 

Gold continues to strengthen against the Dollar. Faint hopes of a

swift "V-shaped" recession are dwindling, which is hardly

surprising. Global economic activity up to 2007 was driven by rich

world consumers buying things even they couldn't afford. In the US

alone they have since lost about $12 trillion of private wealth -

$120,000 per family. Judging by estimates published in The

Economist this should induce a demand slump of about $500 billion

per year, for 10 more years.

 

That means a typical family will be cutting back spending at the

rate of $5,000 per year for a decade. So our economies will stay

shrunk, threatening deflation.

 

To combat this governments are trying to engineer some inflation.

Deficit spending here, quantitative easing there, and zero

interest rates everywhere; with all of it geared to stimulating

more production in a world already suffering over-capacity. This

is where they step into dangerous territory.

 

Retail prices inflate in an overheating economy when there is a

supply shortage of consumer goods. Because demand outstrips supply

the producer has the whip hand, and he exploits it by asking more

money for his goods. But look around you today and you will see

there is no supply side shortage in the world economy. So if we do

get inflation it's not going to be because of overheating.

 

Hyper-inflation, on the other hand, has little to do with supply

side shortages and overheated economies. It happens when a

currency dies. Once the realization grips savers (not consumers)

that their money is losing its purchasing power then they exit

money and look for better stores of value.

 

So while 'normal' inflation is driven by consumer-pull for goods,

hyper-inflation is driven by saver-push of money, and this

explains a big qualitative difference between inflation and hyper-

inflation.

 

Modest inflation through undersupplied goods has a negative

feedback because new supply pulls prices back, bringing the

economy back to equilibrium. Hyper-inflation does the opposite.

Once it starts it suffers a positive feedback by encouraging more

and more savers to dump cash. What starts as a trickle accelerates

into an unstoppable torrent of savings pouring into circulation.

 

The unusual problem we now have is that after using cash rescues

to protect the overcapacity in our economies we are not going to

be able to create normal, controllable, supply-shortage inflation.

It's increasingly likely that the only style of modest price rises

which the central banks can engineer will be the trickle which

precedes a hyper-inflation.

 

Indeed, what caused the Financial Times to wheel out the old "gold

nuts" phraseology was the strange case of last week's bond

markets. Bond prices - the best proxy for the future value of cash

- were falling when they should have been rising. The markets are

telling us that cash 10 years forward is becoming less valuable.

This is a hint of savers losing faith in their currency.

 

And why wouldn't they? Their deposits will pay them no interest

for the foreseeable future. Inflation and tax will eat into their

savings. The economy looks mired in recession. Governments, which

are now welcoming devaluations as a trade benefit, are deep in

debt and are toying with hyper-inflationary policies like

quantitative easing. It all points to the inflationary transfer of

the government's enormous debt into plummeting values for

depositors' cash and investors' bonds.

 

An insight - courtesy of Bill Bonner - suggests what could soon

happen. There is an $11 trillion bond mountain, which is $96,000

of issued US Dollar bonds per US family. With total federal

obligations now reaching above $63 trillion, this is the polar

icecap of contemporary finance, and it holds the bulk of the

savings of two generations, all denominated in dollars which are

frozen solid until their redemption date. If the Fed gets what it

wants, then a modest dose of inflation now will forestall a

depression. But inflation will heat that icecap and make the bond

market more jittery, and at exactly this point the Fed says it

will reverse its QE policy and sell bonds back into the market,

because this is how it plans to get cash back out of circulation

to control the inflation it has created.

 

Choose your poison: The trickle of excess QE cash or the trickle

of excess bond redemptions, both in a world of over-supply. It

seems all roads lead to inflation. Don't assume it will be the

manageable kind.

 

Kind regards,

Paul Tustain

Director, BullionVault

Anyone know the FT article that says gold bulls are nuts?