Where Is Gold Going In This Market

[glennoz]

whats gfc?

ef

global financial crisis

regards

[edgarfriendly]

i bought in at gfc at $2.37 seen it go up to $12,now about $8,waiting for it to go up again.- glennoz

you can buy into the global financial crisis??

<deleted>??

ef

[churchill]

Swiss Parliament to discuss gold franc

'The Swiss Parliament is expected later this year to discuss the creation of a gold franc — a parallel currency to the official Swiss franc — raising the possibility that the country, one of the last to abandon the gold standard, may soon take a big step toward returning to it.

The initiative is part of “Healthy Currency,” a campaign sponsored by politicians from the right-wing Swiss People’s Party (SVP) — the country’s biggest — that is seeking to capitalize on popular fears about global financial turmoil and inflation to reverse the government’s current policy on gold.

“I can imagine that this will spark some sort of debate about gold and there may be some pressure to accept the parallel currency,” said Dr. Gebhard Kirchgaessner, an economics professor at St. Gallen University. “But it won’t have any real effect on the economy. It seems incredible to imagine that there are people out there willing to buy millions of these things.”

Switzerland, which in 2000 became one of the last countries to decouple its currency from gold, is not the only place to contemplate a change in the precious metal’s role amid controversy over government involvement in the economy. In March, Utah became the first state in the U.S. to legalize gold and silver coins as currency, while similar legislation was considered in Montana, Missouri, Colorado, Idaho and Indiana.

“I want Swiss people to have the freedom to choose a completely different currency,” said Thomas Jacob, the man behind the gold franc concept. ”Today’s monetary system is all backed by debt — all backed by nothing — and I want people to realize this.”

....

'The party is demanding that the central bank stop any further bank sales, repatriate Swiss gold reserves held abroad, and not allow the proportion of its gold to fall below 20% of its total assets. '

......

http://www.marketwatch.com/story/swiss-parliament-to-discuss-gold-franc-2011-07-07?pagenumber=1

Edited July 8, 2011 by churchill

[churchill]

Does the BIS now hold Greece's gold?

Conjecture on from whence the 500 tonnes of gold held by the BIS has been acquired. Is this perhaps a swap involving the Greek and Portuguese gold reserves taken as collateral?

'The Bank for International Settlement (The Central Bankers Bank) holds 500.7 tonnes of gold as at the end of 2010. Why?

In the third quarter of 2009 it held just under 120 tonnes. These were part of currency/gold swaps. There are no details of the names of the counterparties. Coincidentally, they could be nearly the total of the ‘official' gold holdings of Greece and Portugal and, perhaps, Spain.'

... http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=131014&sn=Detail&pid=33

Edited July 8, 2011 by churchill

[cloudhopper]

”Today’s monetary system is all backed by debt — all backed by nothing — and I want people to realize this.”

Being backed by debt is one thing, being backed by unrepayable debt is quite another.

Here is a rather lengthy post reviewing how global debt got out of control after tricky dick reneged on gold settlement of US trade deficits and more discussion of a new global gold standard. Good counterpoints in the comments too.

http://globaleconomicanalysis.blogspot.com/2011/07/hugo-salinas-price-and-michael-pettis.html

[edgarfriendly]

ok, we can all post links.

but how does one go about 'buying into the GFC' ?

am i misunderstanding something here?

ef

[cloudhopper]

1570, anyone scared ?

[flying]

1570, anyone scared ?

Quite comfortable actually

I am wondering if August may be the last month to get gold in coin form

at a decent price......will see....Not that I'm looking to buy & am happy where I sit

Seems like Greece is history & Italy's bond auction will show what happens with the Euro.

Interesting times

[badge]

Ron Paul : Why do central banks hold Gold?

Bernanke : Tradition

Bernanke is correct. Gold is an asset. Banks hold gold as an asset in reserve as they hold bonds, stocks and other paper assets.

If Villa start accepting gold, and giving back change in micro-grams (?) then gold will at least be getting closer to becoming money, but right now, money is the only money

[cloudhopper]

If Villa start accepting gold, and giving back change in micro-grams (?) then gold will at least be getting closer to becoming money, but right now, money is the only money

Really does Villa accept Mexican Pesos?

[Naam]

If Villa start accepting gold, and giving back change in micro-grams (?) then gold will at least be getting closer to becoming money, but right now, money is the only money

Really does Villa accept Mexican Pesos?

Pancho Villa who runs the "Tequila Inn" in Guadalajara accepts them. Gringos can pay in Dollars too

[midas]

Pancho Villa who runs the "Tequila Inn" in Guadalajara accepts them. Gringos can pay in Dollars too

Clearly then Mr Pancho Villa is out of touch with his own government ............

" The Mexican government in September 2010 enacted a very restrictive law which basically restricts the use of US Dollars for almost all purchases inside of Mexico."

http://investmentwat...sts-the-dollar/

Edited July 14, 2011 by midas

[cloudhopper]

Villa will accept Swiss francs then perhaps? Surely that is money that is money...

[flying]

Ron Paul : Why do central banks hold Gold?

Bernanke : Tradition

Bernanke is correct. Gold is an asset. Banks hold gold as an asset in reserve as they hold bonds, stocks and other paper assets.

If Villa start accepting gold, and giving back change in micro-grams (?) then gold will at least be getting closer to becoming money, but right now, money is the only money

There is money & there is currency

One is good as gold & the other is a Federal Reserve Note/IOU

[cloudhopper]

Here's a wide ranging interview that addresses many of the points being debated on this thread -

http://www.chrismartenson.com/blog/james-turk-gold-our-defense-against-fiat-currency-graveyard/60423

[churchill]

Any shorts still on at $1470 ?

I noticed Naam and Lanna very quick to congratulate such a good call !

Some made opposite bets

I think many have been caught out with the talk of new QE - many Funds sold at the end of last year and again at the end of QE 2 ... hoping for lower prices --and over the last 2 years so many who believe in Gold but thought that prices would correct lower are still on the side lines .. could we gearing up for a spike up ? as those funds that sold panic to get in ....

I am waiting to take some profits ..

[cloudhopper]

I am waiting to take some profits ..

Nooooo churchill!

Friends don't let friends "take profits" in gold.

[tracy3eyes]

How do westrn gold shops perceive thai gold? Do they see it as real or fake?

[jazzed]

How do westrn gold shops perceive thai gold? Do they see it as real or fake?

If you are talking about "acceptability" and taste: then western users/shops are more comfortable with gold of less purity. A more subtle colouring is preferred. Asians (Thais, Singaporeans, Hongkongers, Indians etc) prefer a more pure form of gold because it's firstly the "value" that is coveted. The garish yellow colour is not only tolerated, it's a way to show off that the gold is "real".

If we speak of gold as investment, it is a completely different discussion.

(1) International dealers/customers/bullion investors all prefer well-known brands -- of which gold bars often have certificates with exclusive serial numbers -- because the purity is guaranteed & trusted. This makes the bullion pieces more liquid, easier to trade or exchange. Examples of such bullion are Canadian Maples, South African Kruggerand, Perth Mint coins/bars, American Eagle coins, Johnson Matthey bars, Credit Suisse gold bars etc.

(2) Local dealers/customers would be comfortable with what they know. In Switzerland the 'vreneli' (gold coins with Swiss maiden on it) is a traditional form of money. Even though it's not as pure, only 90+% gold, many Swiss know it, give to children as birthday presents, all farmers or shopkeepers would accept it in the event of a banking crisis or hard times. Try to use the vreneli in Thailand!?!

Conversely in Asia, if you waltz around with a bright yellow thick gold chain or pure gold earrings or anklets, these would see you through tough times if you need to barter for goods.

So the question should be "real or fake" TO WHOM?

[lannarebirth]

Any shorts still on at $1470 ?

I noticed Naam and Lanna very quick to congratulate such a good call !

4 hours is a long trade for me churchill. The reason I don't post trades is that I wish to feel no responsibility for whether or not other people make money. It's hard enough for myself.

[PCA]

ok I call the top now: 1747

don't forget to take your money in time, hehehe.

[flying]

Silver is not doing too shabby either.

Can't say I'm surprised but still happy to have swapped out

of it to gold back when I did.

[Naam]

Any shorts still on at $1470 ?

I noticed Naam and Lanna very quick to congratulate such a good call !

Some made opposite bets

please elaborate. when did anybody call for "AU 1470 short" and when were said congratulations made?

[churchill]

jcon, on 2011-05-06 03:56:13, said:

AUD/USD short @ 1.06528 11:01pm

XAU/USD shrort @ 1489.430 10:57pm

jcon, on 2011-05-06 18:38:15, said:

I believe the USD will shine like a rock star in the near future

jcon, on 2011-05-04 18:08:06

Spot silver is going to get a 3-handle

hats off jcon[man]!

My memory said $1470 ... but at $1489....

[Naam]

My memory said $1470 ... but at $1489....

my "hats off" meant respect for having the guts to publish a daring and defined forecast concerning three different assets. that's something you don't dare because most of your postings carry a question mark.

[churchill]

As we are talking trades and to go against the grain I just bought GDX, GDXJ and SIL , timing may be wrong but I still think trend -medium term- is up so better to buy on down days than up days

No question marks - Quite clear !!

Naam wrong again

[Naam]

As we are talking trades and to go against the grain I just bought GDX, GDXJ and SIL , timing may be wrong but I still think trend -medium term- is up so better to buy on down days than up days

No question marks - Quite clear !!

Naam wrong again

how many trades have you posted except that one? Churchill = "big question marker!"

Edited July 15, 2011 by Naam

[ExpatJ]

Just discovered that KBanks Gold fund (kasgold on bloomberg) also pays out twice yearly dividends that average 6% and that hit 10% last year- the fund its self is 80% tied to major US based gold ETFs. I just put my money allocated for gold into it instead of gold bars/coins which dont pay dividends obviously (though i have a few small bars stashed away for emergencies). Tax rate on the dividends is 15%.

Just a heads up for thos ethinking of investing in gold.

Edited July 15, 2011 by ExpatJ

[flying]

Just discovered that KBanks Gold fund (kasgold on bloomberg) also pays out twice yearly dividends that average 6% and that hit 10% last year- the fund its self is 80% tied to major US based gold ETFs. I just put my money allocated for gold into it instead of gold bars/coins which dont pay dividends obviously (though i have a few small bars stashed away for emergencies). Tax rate on the dividends is 15%.

Just a heads up for thos ethinking of investing in gold.

Well not dividends per se' but what I put into physical gold since 2008 has 120% return today

I sleep well knowing what I have & am not trusting of paper that says I have something elsewhere

No tax rate either

But I know it is not for everyone & wish you success with the ETF

Chok Dee

[cloudhopper]

Nifty runup. The bernank explains it -

http://www.zerohedge.com/article/even-ben-bernanke-admits-gold-ultimate-safe-haven