Where Is Gold Going In This Market

[edgarfriendly]

SDR?

[gregb]

SDR?

Special Drawing Rights (http://en.wikipedia.org/wiki/Special_Drawing_Rights)

The most likely candidate for a reserve currency in the new monetary system the G20 is working on when the USD finally collapses.

[flying]

yes but if there is no demand from the world governments that is like opening a gogo bar in jomtien and saying "we aren't interested in customers over the age of 40"

Last time I checked We The People are the government.

Remember the politicians may be the jockeys but WE own the horse.

We may through our own negligence from time to time let the jockey beat the horse or even let the horse seem

to have free reign. But the reality is when it gets far enough out of line it is We that need to bring it back one way or another.

We ultimately could care less if there is a demand from the world governments. It is in fact that which they peddle as

faith backed currency that is driving most to gold. With or without their participation.

Again as I said Free Gold is best. It is what we hold that we know we own. Not some fantasy for them to inflate yet again & again.

As Naam pointed out...I have said many times Fort Knox has not even been independently audited in over 50 years.

How is that different than their faith backed currency?

It is not.

Also do not forget to be careful of what you wish. When a government pegs to gold they can & will enforce a

flat worth of gold if they so choose.That flat rate could be a lot less than you think or the free market thinks gold is worth.

Free Gold Not tethered

Edited August 27, 2011 by flying

[flying]

As usual on these types of days the last hour of the market (US) before the close is looking frantic.

Gold is setting new highs...again & is also honing in on inflation adjusted price of the often touted 1980's highs.

Next week is the monthly options expiration on the Comex metals market so... we can expect a pullback in gold as usual & possibly more margin increases

But...last month was not as bad as usual in spite of their games & it will be interesting to see what next week brings.

I always update spread sheets on Friday's after markets close

Gold moved $106.80 per ounce this last week

A little over 6%

Last week close $1747/oz

This week $1854/oz

Well here we are another Friday & time to update the sheets

So for all the thrashing & gnashing of teeth by the CNBC Anal-ist

Was it such a bad week?

Last Week Close = $1854/oz

This Week Close = $1830/oz

Down $24 usd/oz just over 1%

Poor Anal-ist with all their hype & screaming of how the run was done & they all KNEW it was coming.

As I thought last week it was as always an interesting week with COMEX options expiration & the margin increases did in fact come.

Edited August 27, 2011 by flying

[Naam]

Remember the politicians may be the jockeys but WE own the horse.

it looks more like we are the horses

[Naam]

yes but if there is no demand from the world governments that is like opening a gogo bar in jomtien and saying "we aren't interested in customers over the age of 40"

Agreed. I buy gold today because I believe it is an impartial reference across currencies, but also because I fully expect it will eventually be used to partially back a new SDR reserve currency.

If an SDR reserve currency is introduced without gold backing and proves itself to be stable for an extended period, I would expect the value of gold to fall on the open market. People are buying gold today because everyone believes it is money. Should a "better" money come along, it will be dropped like an unwanted stepchild.

I don't expect that to happen, but it would be unreasonable not to consider that it might. Whether or not gold is used to back currency is hugely important when it comes time to determine its value.

what would be the gain? whether fully or partially backed the possibilties are open for cheating. i refer to Flying's suspicion that the U.S. gold reserves have not been audited since more than half a century. who will be able to check the amount of gold backing held in Fort Knox or some vaults in Zürich, London or Hong Kong?

What is the gain for the CHF doing it? Confidence from the people using it is all. It will be hard to get that kind of trust any other way in the present environment. You are correct that the IMF and the BIS will still be able to cheat, and that is why I expect that an SDR reserve currency will eventually fail just as all the existing currencies. But at the same time I expect a reprieve of a decade or two before this kind of corruption becomes apparent.

In the end, people will believe the SDR lie because it is in everyone's best interest to believe the lie. It could happen without gold, but I think gold is going to be included in the basket because it makes the SDR currency a more compelling story.

CHF/Gold = outdated since more than a decade. presently CHF is not anymore partially (40%) backed by gold as the constitution demanded prior to 1997. but i agree with your opinion that any future SDR will contain a certain percentage of gold. whether "book" fiat SDR will fully replace "tangible" USD fiat remains to be seen.

[flying]

Remember the politicians may be the jockeys but WE own the horse.

it looks more like we are the horses

I have always thought the military was the horse

[Lost in LOS]

I saw that interview with Farber and the part I liked best is, they asked about where he lives and he said mostly on a plane, but when on land, he prefers Northern Thailand. So maybe we need to find it and dig around his yard.

Faber lives in Chiang Mai, off Lamphun Road.

lets go with a couple of shovels and see if we can find his buried stash since he doesn't trust banks. Ill split it 50-50 with you. It should be understood, upfront, that Mrs Naam's cut comes out of your half

[farang000999]

yes but if there is no demand from the world governments that is like opening a gogo bar in jomtien and saying "we aren't interested in customers over the age of 40"

Last time I checked We The People are the government.

Remember the politicians may be the jockeys but WE own the horse.

We may through our own negligence from time to time let the jockey beat the horse or even let the horse seem

to have free reign. But the reality is when it gets far enough out of line it is We that need to bring it back one way or another.

We ultimately could care less if there is a demand from the world governments. It is in fact that which they peddle as

faith backed currency that is driving most to gold. With or without their participation.

Again as I said Free Gold is best. It is what we hold that we know we own. Not some fantasy for them to inflate yet again & again.

As Naam pointed out...I have said many times Fort Knox has not even been independently audited in over 50 years.

How is that different than their faith backed currency?

It is not.

Also do not forget to be careful of what you wish. When a government pegs to gold they can & will enforce a

flat worth of gold if they so choose.That flat rate could be a lot less than you think or the free market thinks gold is worth.

Free Gold Not tethered

i don't know if u are referencing the fofoa blogsite when u say freegold but if u r, his theories are based on governments trading gold not regular people adopting it as their religion.

[midas]

yes but if there is no demand from the world governments that is like opening a gogo bar in jomtien and saying "we aren't interested in customers over the age of 40"

Last time I checked We The People are the government.

Remember the politicians may be the jockeys but WE own the horse.

We may through our own negligence from time to time let the jockey beat the horse or even let the horse seem

to have free reign. But the reality is when it gets far enough out of line it is We that need to bring it back one way or another.

We ultimately could care less if there is a demand from the world governments. It is in fact that which they peddle as

faith backed currency that is driving most to gold. With or without their participation.

Again as I said Free Gold is best. It is what we hold that we know we own. Not some fantasy for them to inflate yet again & again.

As Naam pointed out...I have said many times Fort Knox has not even been independently audited in over 50 years.

How is that different than their faith backed currency?

It is not.

Also do not forget to be careful of what you wish. When a government pegs to gold they can & will enforce a

flat worth of gold if they so choose.That flat rate could be a lot less than you think or the free market thinks gold is worth.

Free Gold Not tethered

i don't know if u are referencing the fofoa blogsite when u say freegold but if u r, his theories are based on governments trading gold not regular people adopting it as their religion.

how about this

UPDATE 1-Russian c.bank to offer gold-backed loans at 7 pct

http://af.reuters.com/article/metalsNews/idAFL5E7JQ0Q020110826

[Lost in LOS]

I screwed up. I was going to buy a lot today, Saturday, since I was looking for it to get lower. I should have brought Fridays morning, per my original plan, would have made a nice, quick, profit

[flying]

Free Gold Not tethered

i don't know if u are referencing the fofoa blogsite when u say freegold but if u r, his theories are based on governments trading gold not regular people adopting it as their religion.

No ....I know of FOFOA but my definition is as I stated above

I dont see folks like myself viewing gold as a religion at all.

In fact it is all the other *faith* backed currencies that are a version of religion

Edited August 27, 2011 by flying

[flying]

lets go with a couple of shovels and see if we can find his buried stash since he doesn't trust banks. Ill split it 50-50 with you. It should be understood, upfront, that Mrs Naam's cut comes out of your half

My guess is Naam does not need Faber's gold

The other thing you should know about most holders of physical is they are usually very well armed

[flying]

I screwed up. I was going to buy a lot today, Saturday, since I was looking for it to get lower. I should have brought Fridays morning, per my original plan, would have made a nice, quick, profit

It is far from too late if your talking physical.

If your talking paper trading....I have no opinion.

[Lost in LOS]

lets go with a couple of shovels and see if we can find his buried stash since he doesn't trust banks. Ill split it 50-50 with you. It should be understood, upfront, that Mrs Naam's cut comes out of your half

My guess is Naam does not need Faber's gold

The other thing you should know about most holders of physical is they are usually very well armed

Farber says he travels alot, so we just watch the news

Naam may have more money than him but what is he can double it

[flying]

Farber says he travels alot, so we just watch the news

Naam may have more money than him but what is he can double it

:lol:

[midas]

I screwed up. I was going to buy a lot today, Saturday, since I was looking for it to get lower. I should have brought Fridays morning, per my original plan, would have made a nice, quick, profit

It is far from too late if your talking physical.

If your talking paper trading....I have no opinion.

but has he really missed the boat in the overall scheme of things?

" JPMorgan encapsulated the bullish sentiment in the gold market, predicting that bullion could hit $2,500 by the end of the year."

http://survivalandprosperity.com/2011/08/09/jpmorgan-chase-predicts-gold-could-reach-2500-an-ounce-by-year-end/

[barryinbangkok]

Anyone had experience selling Gold lower than 24 Karat in Thailand? I came across a company that apparently give a good deal- any thoughts?

[Naam]

I saw that interview with Farber and the part I liked best is, they asked about where he lives and he said mostly on a plane, but when on land, he prefers Northern Thailand. So maybe we need to find it and dig around his yard.

Faber lives in Chiang Mai, off Lamphun Road.

lets go with a couple of shovels and see if we can find his buried stash since he doesn't trust banks. Ill split it 50-50 with you. It should be understood, upfront, that Mrs Naam's cut comes out of your half

perhaps we could dupe Mrs Naam by telling her we are not after Faber's gold but want to check out the services of some whorehouses in Chiang Mai?

[Paulo1]

I saw that interview with Farber and the part I liked best is, they asked about where he lives and he said mostly on a plane, but when on land, he prefers Northern Thailand. So maybe we need to find it and dig around his yard.

Faber lives in Chiang Mai, off Lamphun Road.

lets go with a couple of shovels and see if we can find his buried stash since he doesn't trust banks. Ill split it 50-50 with you. It should be understood, upfront, that Mrs Naam's cut comes out of your half

perhaps we could dupe Mrs Naam by telling her we are not after Faber's gold but want to check out the services of some whorehouses in Chiang Mai?

LOL,

[flying]

\

It is far from too late if your talking physical.

\

but has he really missed the boat in the overall scheme of things?

" JPMorgan encapsulated the bullish sentiment in the gold market, predicting that bullion could hit $2,500 by the end of the year."

No not too late. I said Far From

[Paulo1]

\

It is far from too late if your talking physical.

\

but has he really missed the boat in the overall scheme of things?

" JPMorgan encapsulated the bullish sentiment in the gold market, predicting that bullion could hit $2,500 by the end of the year."

No not too late. I said Far From

2000 by the end of september.

[flying]

2000 by the end of september.

Yes I think we will see another rise into September

Will see eh?

[midas]

\

It is far from too late if your talking physical.

\

but has he really missed the boat in the overall scheme of things?

" JPMorgan encapsulated the bullish sentiment in the gold market, predicting that bullion could hit $2,500 by the end of the year."

No not too late. I said Far From

very sorry flying :jap: my eyesight must be failing me because I didn't spot

the word " from " in your sentence.

Edited August 29, 2011 by midas

[ExpatJ]

Seen the other thread about Thai gold shops now closing on the weekends- no trading allowed at all? A quote from the article:

"What strikes them as unusual is the behavior of people who keep on snapping up gold bars, despite unpredictable prices."

This is BS and not a good sign for those investing in Thai gold (inlcuding me) - its great for them if people keep buying their gold- what they are worried about is a price drop and then panic selling and then having to find the cash to buy back all this gold that's been sold.

What this means is that the risk for holding thai gold just shot up- imagine big price drop off, customers want to sell their gold quickly to take profits, but Thai gold shops suddenly announce they are now only trading on mondays say. This scenario just got a whole lot more possible.

If i was only invested in Thai gold, id be selling a large portion and shifting into external physical gold (maple leafs,kruggers , US/EU gold bars etc) or paper gold. As it is only about 15% of my gold portfolio is in thai gold. kurggers

Edited August 29, 2011 by ExpatJ

[gregb]

Seen the other thread about Thai gold shops now closing on the weekends- no trading allowed at all? A quote from the article:

"What strikes them as unusual is the behavior of people who keep on snapping up gold bars, despite unpredictable prices."

This is BS and not a good sign for those investing in Thai gold (inlcuding me) - its great for them if people keep buying their gold- what they are worried about is a price drop and then panic selling and then having to find the cash to buy back all this gold that's been sold.

What this means is that the risk for holding thai gold just shot up- imagine big price drop off, customers want to sell their gold quickly to take profits, but Thai gold shops suddenly announce they are now only trading on mondays say. This scenario just got a whole lot more possible.

If i was only invested in Thai gold, id be selling a large portion and shifting into external physical gold (maple leafs,kruggers , US/EU gold bars etc) or paper gold. As it is only about 15% of my gold portfolio is in thai gold. kurggers

It is really a non issue. All they are doing is closing trading during off hours. It was previously up to the shop owners, now they are just making it an official policy.

You are overreacting to this. Right now, today, anyone with any serious amount of gold already knows he is limited to trading physical gold during working hours Mon - Fri. I've lived the last 3 years without needing buy or sell gold on the weekends. If people need more flexibility they trade paper on the futures market. For most of us who buy physical to hold long term, it is not even a consideration. The only truly interesting part is that we are now officially called "strange."

[ExpatJ]

Seen the other thread about Thai gold shops now closing on the weekends- no trading allowed at all? A quote from the article:

"What strikes them as unusual is the behavior of people who keep on snapping up gold bars, despite unpredictable prices."

This is BS and not a good sign for those investing in Thai gold (inlcuding me) - its great for them if people keep buying their gold- what they are worried about is a price drop and then panic selling and then having to find the cash to buy back all this gold that's been sold.

What this means is that the risk for holding thai gold just shot up- imagine big price drop off, customers want to sell their gold quickly to take profits, but Thai gold shops suddenly announce they are now only trading on mondays say. This scenario just got a whole lot more possible.

If i was only invested in Thai gold, id be selling a large portion and shifting into external physical gold (maple leafs,kruggers , US/EU gold bars etc) or paper gold. As it is only about 15% of my gold portfolio is in thai gold. kurggers

It is really a non issue. All they are doing is closing trading during off hours. It was previously up to the shop owners, now they are just making it an official policy.

You are overreacting to this. Right now, today, anyone with any serious amount of gold already knows he is limited to trading physical gold during working hours Mon - Fri. I've lived the last 3 years without needing buy or sell gold on the weekends. If people need more flexibility they trade paper on the futures market. For most of us who buy physical to hold long term, it is not even a consideration. The only truly interesting part is that we are now officially called "strange."

If you are holding thai gold long term, then you are right, its not an issue. If i was holding thai gold hoping to sell in the near future before /during a big gold price fall, then i think there is cause for concern and id be thinking of moving out of thai gold into other forms.

[midas]

Seen the other thread about Thai gold shops now closing on the weekends- no trading allowed at all? A quote from the article:

"What strikes them as unusual is the behavior of people who keep on snapping up gold bars, despite unpredictable prices."

This is BS and not a good sign for those investing in Thai gold (inlcuding me) - its great for them if people keep buying their gold- what they are worried about is a price drop and then panic selling and then having to find the cash to buy back all this gold that's been sold.

What this means is that the risk for holding thai gold just shot up- imagine big price drop off, customers want to sell their gold quickly to take profits, but Thai gold shops suddenly announce they are now only trading on mondays say. This scenario just got a whole lot more possible.

If i was only invested in Thai gold, id be selling a large portion and shifting into external physical gold (maple leafs,kruggers , US/EU gold bars etc) or paper gold. As it is only about 15% of my gold portfolio is in thai gold. kurggers

It is really a non issue. All they are doing is closing trading during off hours. It was previously up to the shop owners, now they are just making it an official policy.

You are overreacting to this. Right now, today, anyone with any serious amount of gold already knows he is limited to trading physical gold during working hours Mon - Fri. I've lived the last 3 years without needing buy or sell gold on the weekends. If people need more flexibility they trade paper on the futures market. For most of us who buy physical to hold long term, it is not even a consideration. The only truly interesting part is that we are now officially called "strange."

If you are holding thai gold long term, then you are right, its not an issue. If i was holding thai gold hoping to sell in the near future before /during a big gold price fall, then i think there is cause for concern and id be thinking of moving out of thai gold into other forms.

"they are worried about is a price drop and then panic selling and then having to find the cash to buy back all this gold that's been sold "

under what circumstances would you envisage panic selling only in Thailand while the price for other forms of gold remains stable?

Edited August 29, 2011 by midas

[ExpatJ]

Seen the other thread about Thai gold shops now closing on the weekends- no trading allowed at all? A quote from the article:

"What strikes them as unusual is the behavior of people who keep on snapping up gold bars, despite unpredictable prices."

This is BS and not a good sign for those investing in Thai gold (inlcuding me) - its great for them if people keep buying their gold- what they are worried about is a price drop and then panic selling and then having to find the cash to buy back all this gold that's been sold.

What this means is that the risk for holding thai gold just shot up- imagine big price drop off, customers want to sell their gold quickly to take profits, but Thai gold shops suddenly announce they are now only trading on mondays say. This scenario just got a whole lot more possible.

If i was only invested in Thai gold, id be selling a large portion and shifting into external physical gold (maple leafs,kruggers , US/EU gold bars etc) or paper gold. As it is only about 15% of my gold portfolio is in thai gold. kurggers

It is really a non issue. All they are doing is closing trading during off hours. It was previously up to the shop owners, now they are just making it an official policy.

You are overreacting to this. Right now, today, anyone with any serious amount of gold already knows he is limited to trading physical gold during working hours Mon - Fri. I've lived the last 3 years without needing buy or sell gold on the weekends. If people need more flexibility they trade paper on the futures market. For most of us who buy physical to hold long term, it is not even a consideration. The only truly interesting part is that we are now officially called "strange."

If you are holding thai gold long term, then you are right, its not an issue. If i was holding thai gold hoping to sell in the near future before /during a big gold price fall, then i think there is cause for concern and id be thinking of moving out of thai gold into other forms.

"they are worried about is a price drop and then panic selling and then having to find the cash to buy back all this gold that's been sold "

under what circumstances would you envisage panic selling only in Thailand while the price for other forms of gold remains stable?

Never- my point is that imagine suddenly prices are dropping heavily, some economic news comes out indicating that the drop is likely to continue- Thai gold shops announce that due to high volatility they will not be trading the following day(s). You could be left holding thai gold for a few days longer than you want and meantime the prices have kept dropping... This scenario now becomes much more likely as they have set this new precedent.

[farang000999]

so u r telling me it is no longer possible to buy a gold necklace in a gold shop in MBK on a non-weekday? that is quite hard to imagine. those are the busiest 2 days of the week for shoppers. many will blow their salary by monday morning.