GOLD

[azazel]

Fiat currencies. Don't you just love them

 

http://www.telegraph.co.uk/finance/persona...currencies.html

 

Woot no gold?

[LauraB]

Laura, you must be getting on a bit if you remember chatting with Socrates.

 

You too if you have fond (& foggy) memories of Bessarabia. The great Bentine never did reveal the vintage the MC was drinking that night, did he?

 

 

 

The Swiss Central Bank are buying Euros to keep their currency from appreciating too much against the Euro.

 

Other than Swiss pensioners living elsewhere, are there any other benefits in this for the peasantry?

 

The Swiss banks have enough dodgy assets already, so only the casino big players can win .......... or cry for help & win

 

 

[Schaublin]

You too if you have fond (& foggy) memories of Bessarabia. The great Bentine never did reveal the vintage the MC was drinking that night, did he?

 

That's too mysterious for me - (Googled it) maybe something to do with an actor that visited Moldova and tasted some wine?

 

 

Try writing to someone in Rutland and you have to address it to Leicestershire

[rpitwood]

Fiat currencies. Don't you just love them

 

http://www.telegraph.co.uk/finance/persona...currencies.html

 

Don't like any of them. My favourites are still the French franc notes form the 1980's. The head on the front is in reverse on the back, and there is a work of art. And bare breasts.

 

 

 

[azazel]

better than gold and silver?

 

http://cgi.ebay.co.uk/Genuine-Rare-Undated...=item20b1ae22ee

 

I dont think so....

[Schaublin]

better than gold and silver?

 

http://cgi.ebay.co.uk/Genuine-Rare-Undated...=item20b1ae22ee

 

I dont think so....

 

Some mug has bid up to £40

[wolf]

If one applies the basic theory to gold - that it acts as a hedge against inflation - it follows that if we enter a period of deflation, the price should fall. I think this poses a real risk to gold investors (long) with one caveat. If the stock market falls signfiicantly, many investors may turn to gold as the safer of the2 alternatives - or not?

[d2thdr]

Below is an article suggesting that Gold is in bubble territory. I agree

 

Gold price a bubble waiting to pop

June 28, 2010 - 6:25AM

 

 

Are Derivatives in bubble territory YET?

[romans holiday]

If one applies the basic theory to gold - that it acts as a hedge against inflation - it follows that if we enter a period of deflation, the price should fall. I think this poses a real risk to gold investors (long) with one caveat. If the stock market falls signfiicantly, many investors may turn to gold as the safer of the2 alternatives - or not?

Gold may act as a hedge against inflation. It is a non-sequitor that it does not act as a hedge against deflation. The reason being in deflation this time round currencies are themselves under pressure. The same thing happened in the '30s. Currency [reserve] holders were worried governments would depreciate their currency against gold, so they swapped for gold. CBs/ investors are doing the same today, swapping currency for gold, but not necessarily because they think governments will devalue the currency [by inflation] but because they think the market will [by capital flight].

 

Gold is primarily bought on economic uncertainty. As long as investors/ CBs are uncertain, they'll be buying gold.

 

Yen getting strong against the dollar [on the 88 handle]...everything else down.... i wonder if another market sell-off is brewing. Batten down the hatches.

[romans holiday]

A few possible supports:

 

 

[nicejim]

Don't like any of them. My favourites are still the French franc notes form the 1980's. The head on the front is in reverse on the back, and there is a work of art. And bare breasts.

Mexican Libertads have bare breasts...IN 3D!!!

 

better than gold and silver?

 

http://cgi.ebay.co.uk/Genuine-Rare-Undated...=item20b1ae22ee

 

I dont think so....

I sold one a while back for £150, now they go for about £50. That was almost exactly 1 year ago. Gold is up 45% in GBP Y-o-Y.

[electroweak]

For all the commodity manipulation believers:

COLUMN-Even sober brokers can abuse markets out of hours: Kemp

29 Jun 2010 - 19:11

-- John Kemp is a Reuters market analyst. The views expressed are his own --

By John Kemp

 

LONDON, June 29 (Reuters) - With its decision to fine and ban a former oil broker for manipulating the price of Brent crude oil last year as a result of trading while drunk, Britain's Financial Services Authority (FSA) has continued its push to introduce higher standards into trading on the London commodity markets. [me: :lol: ]

 

Former PVM oil broker Stephen Noel Perkins was so drunk he had a limited recollection of events and had been in an alcohol induced blackout, according to the FSA's notice announcing a minimum five-year ban and fining him 72,000 pounds [iD:nLDE65S14T].

 

Drunkenness certainly adds colour to the case. But its real significance is much wider. It applies equally to market participants who are sober as well as those trading under the influence of drink and drugs.

 

For the FSA concluded Perkins manipulated the market through his "clear pattern of trading" in large volumes at a time when the market was normally thin, creating a "false and misleading impression" and "securing the price of the Brent contract at an abnormal level".

 

The ban seems to relate primarily to his fitness and propriety and to be grounded in the fact the trades were unauthorised and he subsequently tried to cover them up (paragraphs 6.1 and 6.3).

 

The FSA concluded the trader "poses an extreme risk to the market when drunk". On the two days in question, the trader had been "drinking so heavily that he was not capable of assessing the consequences of his actions".

 

But the fine was grounded more in market abuse (paragraph 6.2). It appears it could have been imposed even if the trader had not been drunk and the trades had not been unauthorised. The fact they gave a misleading impression of supply and demand in thinly traded conditions and caused prices to rise to an abnormal or artificial level would, it seems, have been enough for the FSA to conclude the trading was abusive.

 

Setting aside the traders' drunkenness, the FSA has for the second time in a month outlined what it considers to be abusive trading.

 

In the first period of trading on 30 June 2009, as reviewed by the FSA, Perkins bought 9,045 lots and sold 1,920, to build a net long position of 7,125 (equivalent to 7,125,000 barrels of crude oil).

 

The volume and position was large by any measure, but especially in relation to normal turnover at that time of the night, which the FSA pegs around 514 lots. As a result, Perkins accounted for 69 percent of the volume traded in that period.

 

It caused prices to rise $1.65 (2.3 percent) between his first and last trade, and as much as $2.09 (2.9 percent) at one point. Big moves at any time, but especially in the London night, when the market is usually inactive other than when there is a geopolitical event. Prices promptly dropped when he stopped bidding.

 

The Perkins case is extreme because the trading was clearly irrational. But it does establish trading volumes do not need to be that high (9,000 lots) or move the market much (2.5 percent) to be considered potentially abusive. Perkins was operating in size, but he was not cornering the global oil market. And a $2 move was enough, it did not need to be $10.

 

Moreover, the FSA placed particular emphasis on the fact his trades gave a misleading impression at a time when the market would usually be quiet. There is a clear implication the regulator will not tolerate trading in size which deliberately or recklessly causes or exploits thin volumes to generate a large movement in the tape.

 

The Perkins case is consistent with the recent case against coffee options broker Andrew Kerr, where the FSA sanctioned the broker for using trades in size to manipulate prices during the option-pricing reference period. [me: hmmm.. coffee and oil are the two most voluminous commodity markets - what could be done to silver or gold?] It is also consistent with the CFTC's recent penalty on a hedge fund for attempting to affect settlement prices in NYMEX platinum and palladium via last minute trades. [iD:nLDE6511XB]. [me: ah, there it is palladium and platinum.. ]

 

Sizeable trades in thinly traded markets are starting to attract heightened scrutiny and less forgiving regulatory review than in the past. [me: really? what happened to the CFTC metals results?] In this sense, commodity markets are catching up with publicly traded equities, where market participants understand that they will be held to higher standards when trading around sensitive times and must exercise special care.

 

Crucially, the FSA makes clear that trades which move the price must be executed for "legitimate reasons" and "in conformity with accepted market practices" [me: WTF!!! - so it's ok if you have a legitimate reason or it's an accepted practice.. bullsh*t! ] (paragraphs 27 and 35). That requirement applies to all market participants -- drunk or sober. Seeking a better "mark" or a good chart print would clearly fall outside that definition.

 

Because the features of the Perkins case were so bizarre, it is dangerous to generalise too much. But equally it would be unwise to ascribe it all to drink and suggest the case was sui generis or unique with no wider applicability. There is a clear trend in all these cases that shows the net is tightening. The expected standard of behaviour in commodity markets is moving more closely into line with equities and bonds.

[warpig]

[cough] bollocks [cough]

 

There is a clear trend in all these cases that shows the net is tightening. The expected standard of behaviour in commodity markets is moving more closely into line with equities and bonds.

[Schaublin]

1.Mexican Libertads have bare breasts...IN 3D!!!

 

 

2. I sold one a while back for £150, now they go for about £50. That was almost exactly 1 year ago. Gold is up 45% in GBP Y-o-Y.

 

 

1. You need to have 1kg Libertad for a proper eye full

 

2.How much did you pay for it - or did you find it in your change?

[Jake]

Nevermind the tits. Does anyone have a Nikkei/Gold chart? Approximity? GF?

[romans holiday]

http://www.bloomberg.com/news/2010-06-29/g...ic-concern.html

 

Gold prices rose for the third time in four sessions amid slumping U.S. consumer confidence and signs of slowing economic growth in China, boosting demand for the precious metal as a store of value.

 

An index of consumer confidence in June fell more than analysts forecast, and a gauge of China’s economy in April showed the smallest gain in five months. Global equities tumbled, and most commodities slumped.

 

“Gold is very finely tuned to investor concerns about the economy,” Jeffrey M. Christian, the managing director of CPM Group, said in an interview in New York. “If the economic situation deteriorates, prices will rise because investors will shift money from Treasuries to gold.”

 

Gold futures for delivery in August rose $3.80, or 0.3 percent, to $1,242.40 on the Comex in New York. Earlier, the metal fell as much as 0.9 percent.

 

“The risk-aversion crowd is dumping everything that’s risky and buying gold,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock, a broker in Chicago. Gold may reach $1,400 by the end of the year, he said.

 

Gold has jumped 13 percent this year, reaching a record $1,266.50 on June 21, partly on demand for a haven amid Europe’s sovereign-debt woes. This month, the precious metal reached all- time highs in euros, U.K. pounds and Swiss francs.

 

“With Chinese growth concerns surfacing and European Union default fears on the rise, we expect investor dip-buying to provide further background support,” said James Moore, an analyst at TheBullionDesk.com in London.

 

Silver futures for September delivery dropped 8.3 cents, or 0.4 percent, to $18.625 an ounce.

 

Platinum futures for October delivery fell $15.30, or 1 percent, to $1,555.10 an ounce on the New York Mercantile Exchange.

 

Palladium futures for September delivery declined $18.05, or 3.8 percent, to $454.40 an ounce, marking the biggest drop since June 4.

 

It should be becoming obvious that higher gold prices are not dependent on continued "money printing" and stimulus. There are other more fundamental reasons/ justifications for investing in gold, such as economic uncertainty and currency instability. Is gold becoming all things to all investors?

 

Those waiting on the sidelines, without a solid core position in gold yet, have to be more nervous than those that have already built such a position.

[LauraB]

Harvey Organ, (his spacing, not mine)

 

I commented to you yesterday that if the gold comex OI closed anywhere near 600,000 , the gold cartel would be in trouble and would have to regroup and go to higher

 

ground. They tried to influence option holders of both silver and gold contracts to surrender their gains. This was to no avail. Today was a huge defeat for the cartel

 

who saw gold rise and the Dow plummet by 268 points. Not only that but the 10 yr bond yield fell below the 3% level to 2.92%

 

There is a flight to quality and the only two recepients are:

 

1. the bond market

2. gold.

 

With the continual printing of money how can one put money into a bond vehicle that will surely default?

Gold is the only safe haven off there.

 

http://harveyorgan.blogspot.com/

 

I'm curious:- Anyone one know why he hits 'enter' halfway (Harveway?) through a sentence?

[G0ldfinger]

Nevermind the tits. Does anyone have a Nikkei/Gold chart? Approximity? GF?

No.

[Steve Netwriter]

Nevermind the tits. Does anyone have a Nikkei/Gold chart? Approximity? GF?

 

Konnichiwa,

 

If the JP225 is acceptable, then go here:

 

http://www.dailyfx.com/charts/netdaniachart/

 

You have JP225 & some odd thing called XAUUSD

 

You can overlay or do them relative.

Use "Instrument" to get the first, then right click on the chart to add the 2nd.

 

Since 2000, JP225 is up, down, up, down, up, down.

XUA is.....up up up up

 

[Jake]

Konnichiwa,

 

If the JP225 is acceptable, then go here:

 

http://www.dailyfx.com/charts/netdaniachart/

 

You have JP225 & some odd thing called XAUUSD

 

You can overlay or do them relative.

Use "Instrument" to get the first, then right click on the chart to add the 2nd.

 

Since 2000, JP225 is up, down, up, down, up, down.

XUA is.....up up up up

Thanks, Steve. Makes me feel a tad genki-er, but that site freezes up my pc.

I was just trying to work out some further logic to why 'the Japanese are cashing in their gold'. And why Japan is exporting all her scrap. Our favorite analyst over at Kitco ran with the story yesterday. I wonder what JN's game is? He's a talented writer and convincingly gives out misleading info. I was chatting to a friend here today who told me most of the gold being resold at a 27 year 'top' probably belonged to the deceased parents of the sellers. He also told me it wasn't anywhere a top, that was over 6000 yen per gramme! Hence the interest in a Nikkei/gold ratio. It might be interesting to see where we are at from a K winter pov and compare that to the Dow/gold. Maybe it would shed some light on Japan's 'spring'.

 

Anyway thanks for your reply. I will try the link again and also go hunting for the info in Japanese. There must be a simple chart out there...

 

(BTW do you have hot springs in S. Island? And are the NZers getting into geothermal house heating for those winters?)

[drbubb]

"Gold Wealth. How's Your Accounting?"

...banksters are working to paint a double top on the gold chart, placing orders that exceed the current bid and ask by tenfold. The banksters don’t want the gold price lower. They want it higher. The reason they tank the price is to take your gold

Stewart Thomson

Hmm.

How do they do that?

The low volume in GLD suggests less buying.

How exactly do banksters stop retail traders/investors from buying the GLD/Gold they want?

And how do they get people to sell their Gold shares, and keep people buying Silver, so it does not confirm the breakout in Gold

 

I take this article as "gold bug nonsense", and have bet against it:

 

+ Last week, I sold 80% of my Gold taels, most of it near the top, and used the money to repay a mortgage,

+ Thursday/Friday I took some very fat profits on GLD positions, from when Gold was below $1,000

+ Today, I "neutralised" my remaining GLD spreads (600 oz.) by selling some $90Calls at $32.70, and:

+ Buying GLD Aug.$125puts at $6.00.

 

GLD ... update

 

If gold trades sideways, I make money (from time decay on Jan.$120.GLD calls I have sold), and if it rises,

I make a little money on my GLD spread, but much less than I would have made if t had not been "neutralised"

 

I remain long some interesting Gold Juniors, like GLW and MLA.t where I have big positions, plus small positions

in many more Juniors.

 

But if Gold falls $100-150, I will take only a very minor loss.

 

I am now sitting on 7-figures cash (in various currencies), and waiting to see if we will see a "normal" summer

correction in Gold, and/or the August crash in stock indices that many folks have predicted.

 

As far back as 2006-7, I wanted to be in a "heavy cashed up" position before the summer of 2010, and so

"here I be!" Let's see if Mineset/Thompson is right, or of my indicators have steered me well.

 

The wait will be measured in weeks, not months.

[drbubb]

Harvey Organ, (his spacing, not mine)

http://harveyorgan.blogspot.com/

I'm curious:- Anyone one know why he hits 'enter' halfway (Harveway?) through a sentence?

He's a nutter.

He doesnt even know :

 

+ the difference between allocated and unallocated gold, ot

+ what a retail brokers holding room is like in contrast to a bank's main Gold vault

 

Can you really take this guy seriously? Why would you do that?

 

Eric King goofed in playing up his story, while Jim Puplava researched it, and carefully laid out the facts

 

[Errol]

Hmm.

How do they do that?

The low volume in GLD suggests less buying.

How exactly do banksters stop retail traders/investors from buying the GLD/Gold they want?

And how do they get people to sell their Gold shares, and keep people buying Silver, so it does not confirm the breakout in Gold

 

I take this article as "gold bug nonsense", and have bet against it:

 

 

I think it's fair to say that Stewart Thompson knows what he is talking about:

 

Stewart Thomson is a retired Merrill Lynch broker

[drbubb]

...from DrB's diary / Why do people think I am not calling Gold well?...

 

How exactly do banksters stop retail traders/investors from buying the GLD/Gold they want?

They sell a lot of future paper options which makes the retail investors get nervous because the price reacts down, so they then sell their physical gold with the bankers being the buyers. Do you remember last year the was a big deal made about the naked short selling of gold shares, that is how they get people to sell their shares by forcing the price down through naked short selling.

Look closely at the GLD chart:

 

If banksters "sell a lot of future paper options" / why do you see the buying on GLD dry up?

 

The people who have been buying GLD are losing interest, that's why GLD/Gold is going to head down, everyone who wants to buy it at these levels has enough already - not because some mythical banksters want to see it lower.

 

Pay attention to what the market itself is telling you, don't listen to those promoting fantasies!

 

If you look at Silver / SLV - chart you will also see more downside sellling volume (red bars) than buying volume.

 

The trouble is with calling stuff like this "gold bug nonsense" is it actually keeps getting proved to be correct. How many times when you think there is a top in gold has the price carried on up with you out of the market? I think cartel induced dips like this are times to be stocking up on more physical, but then I just want to carry on building my position in this major trend until things change.

 

Repaying debt is a good thing to do IMO, at the end of next month I will be completely debt free.

???

Are you imagining things?

Have you forgotten, I have made plenty of money being long gold.

I rode Canadian Dollars up from last year, making more money than if I had been long gold,

and then aggressively bought Gold back in March when it was below $1100.

 

==========

/sidebar - March Dr.B's Diary - plenty comments there about how I was buying Gold- like this one:

QUOTE (DrBubb @ Mar 26 2010, 11:23 PM)

I didn't wait for that test - I have been buying gold rather aggressively in recent days as:

 

+ PHYS / Sprott Gold trust

+ Some calls on GLD

+ A handful of mining equities

+ "Paper Gold" MACE / Taels thru HSBC

+ Gold coins, now safely stored in my bank vault

 

I like the action in Gold, and it may be set for a run

===========

 

What makes you think I have missed out on anything ???

 

Here's Gold-in-Euros

 

The top may have come earlier (as it did in Gold-in-Sterling) than on the Gold-in-Dollars chart.

 

On the recent FBB-Podcast, I spoke about buying Swiss Francs, and you will see an even clearer

potential top in place in Gold-in-FXF (FXF is the etf for Swiss Francs.)

[ologhai]

I'm curious:- Anyone one know why he hits 'enter' halfway (Harveway?) through a sentence?

 

My guess would be that the text of the blog is composed in some separate editing tool (not directly on the blogging website), then copy-and-pasted into a text-editing box on the blogging website in order to publish it... and somewhere between one and the other, 'soft' linebreaks (i.e. word-wrap linebreaks generated by the editing tool because of its window width) are being converted to 'hard' linebreaks. The explanation needn't be exactly this, but it has the feeling of being something along these lines, especially as the erroneous linebreaks occur after roughly the same number of characters: they don't have the appearance of being randomly placed.

 

Or perhaps, as DrBubb suggests, he's a nutter. You choose which explanation you prefer...