Where Is Gold Going In This Market

[yoshiwara]

Apart from the jobs report the interest rate drop in 10 year Treasuries to an historic sub 1.5% add to the list.

Whether the strong $ can maintain momentum into the second half of the year is a question mark, so some jumping off that escalator.

jumping off into what?

Well yesterday, traders were jumping back into the gold play, but then the Euro went up as well as US markets took a kicking. Me? I am looking at strong dividend bearing equities. Now at over 5% return, that's the equivalent of over 7% purchased within a tax-free ISA. And whether to switch some HKD into SGD if the rate drops below 6:1.

equities? no thank you, no matter what net dividend they provide. but... to each his own.

Are you spooked?

[letitbe]

REply to mighty one Nam bam or whatever he calls himself

TO many quotes it says so heres might ones words to me

"no, it's you who is confused! nobody talked about you and your "measley" pittance of cash. talk was about

financial institutions, corporates and high net worth investors [who] park cash temporarily in safe havens like UST, Bunds, Gilts..

and who hold temporarily or for a long time hundreds of billions of worthless fiat cash which they can't convert into gold and silver every month at the next goldshop in Nakhon Nowhere and then, when required, back to worthless fiat cash."

well im sorry oh mighty one some of us are normal folk with a measly few hundred thousand $ in PM's obviously not fit to sit at your high table [;ease reread your post oh might one and for a change maybe just try to be polite and enter into a proper dialogue instead of pumping your measly pathetic ego up all the time. As you say you get a kick out of trying to put people down here (your previous post). To be honest I used to think you had some useful contribution but recently your descending more and more into just trying to put people down. Pathetic and now in your usual way since you oh might one are so good at put downs im sure you'll have some clever very witty put down to me to amuse yourself Pathetic. Us lesser mortals occasionally like to see some constructive useful comments to help our investments but because we don't measure more than 1 million os so $ its paltry compared with your trillions im sure.

[Naam]

well im sorry oh mighty one some of us are normal folk with a measly few hundred thousand $ in PM's obviously not fit to sit at your high table [;ease reread your post oh might one and for a change maybe just try to be polite and enter into a proper dialogue instead of pumping your measly pathetic ego up all the time. As you say you get a kick out of trying to put people down here (your previous post). To be honest I used to think you had some useful contribution but recently your descending more and more into just trying to put people down. Pathetic and now in your usual way since you oh might one are so good at put downs im sure you'll have some clever very witty put down to me to amuse yourself Pathetic. Us lesser mortals occasionally like to see some constructive useful comments to help our investments but because we don't measure more than 1 million os so $ its paltry compared with your trillions im sure.

-"pathetic" is when people can't admit that they have made a wrong assumption (like you did) and then try with ridiculous bla-bla and unwarranted personal attacks to divert the attention. utterly ridiculous is commenting and comparing a personal situation with that of a financial institution by commenting "we buy gold and sell it when we need money for our modest life style... why would anybody buy UST, Gilts or Bunds?"

-people like you neither ask for nor take any advice. they have their setup, which they believe is the non-plus-ultra in investing, evidence here your own words:

All our cash every month gets converted to gold or silver and we hold as little as we can. Im not bothered about so called guarantees from government and 99.99 % of our assets are in property stocks or gold/silver with increasing % in PM's. Every time we get a measly 2000-3000$ of income it gets changed immediate into physical gold/silver here and discussing in your words with Mrs Letitbe tonight bout how were going to live with no fiat she finally understood we just sell 6-8 baht gold each month if needed but then we do live modestly.

also ridiculous is claiming to spend up to 200,000 Baht in monthly living expenses when living in Nakhon Nowhere in a house, rented for a measly pittance (as posted in another thread). of course there is no doubt that one can spend 200 and more k every month in Nakhon Nowhere but it is highly unlikely.

perhaps you should take up a job as consultant and charge banks, insurance companies, Warren Buffet et al for your advice "whenever you get a few measly billions change them immediately into physical gold/silver to increase your percentage. and when you need cash just sell a few Baht each month."

last not least... i'm sure not only me but other participants would like to know how it is possible to change measly 2-3,000 Dollars (value 60-90,000 Baht) into gold, then sell gold (value 150-200,000 Baht) but at the same time increase the percentage in precious metals? did you discover and apply the secret of the biblical miracle "multiplication of bread loaves and fishes"?

conclusion: present rational arguments but don't try to take on Naam with bullshit. as you can see, you will fail miserably

[churchill]

Week end report on stocks , usd , gold etc from Gary Savage ...

http://www.smartmoneytracker.blogspot.com/2012/06/weekend-report.html

PS ignore subscription request if that annoys you ....

[Naam]

ignore subscription request if that annoys you ...

subscription requests are not annoying. au contraire! in most cases they are valuable and appreciated indications to a potential bias and personal agenda.

[letitbe]

TO many quotes so my post to mighty Nam

well im sorry oh mighty one some of us are normal folk with a measly few hundred thousand $ in PM's obviously not fit to sit at your high table [;ease reread your post oh might one and for a change maybe just try to be polite and enter into a proper dialogue instead of pumping your measly pathetic ego up all the time. As you say you get a kick out of trying to put people down here (your previous post). To be honest I used to think you had some useful contribution but recently your descending more and more into just trying to put people down. Pathetic and now in your usual way since you oh might one are so good at put downs im sure you'll have some clever very witty put down to me to amuse yourself Pathetic. Us lesser mortals occasionally like to see some constructive useful comments to help our investments but because we don't measure more than 1 million os so $ its paltry compared with your trillions im sure.

Someones reply I think it was his highness the might Nam

-"pathetic" is when people can't admit that they have made a wrong assumption (like you did) and then try with ridiculous bla-bla and unwarranted personal attacks to divert the attention. utterly ridiculous is commenting and comparing a personal situation with that of a financial institution by commenting "we buy gold and sell it when we need money for our modest life style... why would anybody buy UST, Gilts or Bunds?"

I think someone else maybe Nam's puddle or is it poodle maybe I was right first time

-people like you neither ask for nor take any advice. they have their setup, which they believe is the non-plus-ultra in investing, evidence here your own words:

All our cash every month gets converted to gold or silver and we hold as little as we can. Im not bothered about so called guarantees from government and 99.99 % of our assets are in property stocks or gold/silver with increasing % in PM's. Every time we get a measly 2000-3000$ of income it gets changed immediate into physical gold/silver here and discussing in your words with Mrs Letitbe tonight bout how were going to live with no fiat she finally understood we just sell 6-8 baht gold each month if needed but then we do live modestly.

also ridiculous is claiming to spend up to 200,000 Baht in monthly living expenses when living in Nakhon Nowhere in a house, rented for a measly pittance (as posted in another thread). of course there is no doubt that one can spend 200 and more k every month in Nakhon Nowhere but it is highly unlikely.

perhaps you should take up a job as consultant and charge banks, insurance companies, Warren Buffet et al for your advice "whenever you get a few measly billions change them immediately into physical gold/silver to increase your percentage. and when you need cash just sell a few Baht each month."

last not least... i'm sure not only me but other participants would like to know how it is possible to change measly 2-3,000 Dollars (value 60-90,000 Baht) into gold, then sell gold (value 150-200,000 Baht) but at the same time increase the percentage in precious metals? did you discover and apply the secret of the biblical miracle "multiplication of bread loaves and fishes"?

-people like you neither ask for nor take any advice. they have their setup, which they believe is the non-plus-ultra in investing, evidence here your own words:

All our cash every month gets converted to gold or silver and we hold as little as we can. Im not bothered about so called guarantees from government and 99.99 % of our assets are in property stocks or gold/silver with increasing % in PM's. Every time we get a measly 2000-3000$ of income it gets changed immediate into physical gold/silver here and discussing in your words with Mrs Letitbe tonight bout how were going to live with no fiat she finally understood we just sell 6-8 baht gold each month if needed but then we do live modestly.

also ridiculous is claiming to spend up to 200,000 Baht in monthly living expenses when living in Nakhon Nowhere in a house, rented for a measly pittance (as posted in another thread). of course there is no doubt that one can spend 200 and more k every month in Nakhon Nowhere but it is highly unlikely.

perhaps you should take up a job as consultant and charge banks, insurance companies, Warren Buffet et al for your advice "whenever you get a few measly billions change them immediately into physical gold/silver to increase your percentage. and when you need cash just sell a few Baht each month."

last not least... i'm sure not only me but other participants would like to know how it is possible to change measly 2-3,000 Dollars (value 60-90,000 Baht) into gold, then sell gold (value 150-200,000 Baht) but at the same time increase the percentage in precious metals? did you discover and apply the secret of the biblical miracle "multiplication of bread loaves and fishes"?

conclusion: present rational arguments but don't try to take on Naam with bullshit. as you can see, you will fail miserably

My reply to this BS

first show me where I posted I live in a house in a place i think i drove through a couple of time then who cares what you or mighty Nam say and since its just words who cares. We do actually spend around 200-250,000 a month. School fees alone for our 2 kids here are around 40,000-60,000 a month depending on extra school activities. The Mighty one suggested our measly 2- 3000 us$ of surplus a month was a pittance which for someone who has only an income of around 200-300,000 a month it is not. Income as most people know has nothing to do with amount of capital. I was mealy informing the mighty one and his sidekick it seems you or are you his lapdog since he always spouts you cant buy goods with gold that in fact you can just convert what you need to fiat stuff and then use that for your anything major over normal monthly expenditure and if as is possible your income dries up you simply change some gold as need be to whatever is needed for what you need.

Your right I hardly ever take advice having over my life been stung many times and lost in all probably 1 million us$ over 60 years or so by listening to so called experts FA's and rest so in last 10-15 years mostly use my own judgement but I do take a great deal of note of comments from those I think have it right which of course matches my own mind often but not ever always. Ive lost a lot and made a lot depending on weather its luck or good judgement and since 2008/09 crash

am like most people treading water if were lucky. Ive lost 90% on some stocks and gained 300% on others but overall made nothing on that. Ive made all my money

in property for last 55 years starting after WW2 and was lucky its only been in last 10 years or so ive even ventured into stocks and last 5-6 years into PM. When did you last buy decent Fillet steak or good cheese or a real nice bottle of wine here. Im not boasting but a nice meal in with 4 friends or so and good wine, good western

food a decent brandy or 2 afterwards comes to around 6000-8000 baht in ingredients alone here as it would in west.

Dont be such a dope I know people who work offshore (mostly for oil companies) and their thai wives spend over 100,000 a month on their guchi handbags makeup clinics plastic boob jobs and rest which IMO is ridiculous. I also have friends not so lucky as me spend only 60-80,000 a month with 2 kids like we have. Its only those who are single or have to who can live a good life style here on less than 80,000 a month. My medical costs at 84 are at least 30,000 a month on average.

Are you really trying to say 200,000 baht a month is a lot to spend with 2 kids in a decent school, 2 cars, maid, gardener and decent good food (not mama noodles

crap). It is a lot but not that much and about 1/4 of what I used to earn as a consultant for industry in boom 80's in UK

You are indeed not able to do simple sums. We have an income of around 200-300,000 baht a month no pension just investments in property and shares which obviously can vary a lot month by month and if large repair bills are needed or we have a spell of empty lettings the income can drop to 150000 or so....................... The measly 2000-3000 us which we usually add to our gold store but usually we dont need to sell any gold for any day to day living only if we decide theirs a new property to buy or a sudden opportunity.

FOr those who want constructive discussion and have no faith in fiat money and consider gold safer I consider it a reasonable strategy to constantly convert any spare fiat into gold or silver as we do and then if its needed later just sell it instead of putting it into some bank that could likely go under.

Is that clear enough for Nam's puddle and your mighty master

Now throw whatever witty bits back for all I care I can assure you it will be like water of a ducks back and although Ido not have english skills to make any sort of witty answer it does amuse me

to visit this site just for some relief and if I can be bothered reply to some of total BS and prats here of which I do consider the mighty Nam and now back to my work and a film before bed

[Naam]

Captain! long range sensors detected more

shots in own foot. what are your orders?

[edgarfriendly]

is it not uncomfortable/awkward to refer to 'our' investments and 'we' do this & that when a pension only comes from a single party?

i hear it all the time;

we're thinking about doing x or y OR

we've decided to spend money on whatever.....

No, she decided.

the rest is just waffle!!!

[Naam]

there... there... Friendly Edgar! if you have a clever wife you involve her, using female intuition, when making important decisions and vice versa. if you have a dumb wife and you let her make unilateral decisions then it serves you right.

[churchill]

Friday’s Jobs Report: Game Changer For Gold

http://www.forexpros.com/analysis/friday’s-jobs-report:-game-changer-for-gold-125336

[Jayman]

http://www.marketwatch.com/story/why-your-portfolio-doesnt-need-gold-2012-06-04?siteid=rss&rss=1

Why your portfolio doesn’t need gold

After sliding 6% in May, the price of gold jumped 3.7% on Friday. Skeptics say it is a temporary rise in a longer downturn. Fans of the metal say it is the start of another glorious run.

[letitbe]

http://www.marketwat...iteid=rss&rss=1

Why your portfolio doesn’t need gold

After sliding 6% in May, the price of gold jumped 3.7% on Friday. Skeptics say it is a temporary rise in a longer downturn. Fans of the metal say it is the start of another glorious run.

good article but last bit about wife is very old fashioned even here in Thailand. The majority of Thais with money now consider wearing large amounts of gold to be vulgar and its only older generations and those who basically are vey low class or have no money (no insult) who want the jewelry. Every Thai we know with any sort of serious money buys like us 10,20 or 50 baht solid Thai gold bars and at best will have a few smaller pieces to wear at

occasions or if they made it because they married a rich forang and come from an Issan village (generalisation) wear ir when they return to their village. 15 years ago or so my wife would have worn a large amount of gold since she came from a very poor background but now she thinks same as most modern younger generation with some money. An Ipad or Iphone has much more status go most thais with money than trying to impress with say 15-20 baht gold around their persons. But then the others who wear the gold never know how much others have in the safe. My wife's hairdresser asked if she knew price of gold and guessed she probably might have 10 baht or so. My wife was embarrassed to tell her that we actually owned around 300 baht of stuff and so just looked down. She does not like to show unlike most thais and sometimes because others look down on her and think shes poor because she does not own a merc BMW Guchi bag and rest. I tell her why not just say she says why show monkey the chicken or some thai like that.

[edgarfriendly]

there... there... Friendly Edgar! if you have a clever wife you involve her, using female intuition, when making important decisions and vice versa. if you have a dumb wife and you let her make unilateral decisions then it serves you right.

obviously, i agree.

i have neither. nor do i say we when i patently mean i...

to assume that a 'clever' wife would be in any way less controlling of a weak-willed hubby is largely unlikely.

'we' bought x,y,z.....with my pension is misleading.

'we' own x,y,z......is the same.

if you turn your measly pension into gold as soon as you get it, you're clearly feathering her nest.... yet prefer to exclaim that 'we' are in it together.

i digress, didnt mean to de-rail the thread....

we need to go and pay rent....with the money that i earned while she sat counting 'guchi' bags and my pension receipts.

bai gol' chua!

hao mutt yew pay meeee....

etc...

15 yrs ago my wife would have strutted around her village , but now WE own 300 baht, she is embarrased........yea mate, u tell yourself and all of us that.

there's one born every minute.

[JSixpack]

Whoops! Article I was gonna cite has already been cited. Move along . . . .

Edited June 5, 2012 by JSixpack

[Jayman]

Seems to be a lot of retail selling of gold in India as gold reaches new records vs the rupee

http://www.bloomberg.com/news/2012-06-05/gold-being-sold-aggressively-in-india-as-prices-near-record-2-.html

[gregb]

http://www.marketwat...iteid=rss&rss=1

Why your portfolio doesn’t need gold

After sliding 6% in May, the price of gold jumped 3.7% on Friday. Skeptics say it is a temporary rise in a longer downturn. Fans of the metal say it is the start of another glorious run.

"Taken to its logical conclusion, this means governments would eventually agree to once again use gold as the basis for their currencies, says James Swanson, chief investment strategist at MFS, a mutual-fund company.

That is a fantasy, he argues, because some powerful nations have relatively little gold and some gold-rich nations have little power."

Ahh yes. The words of someone who believes business as usual will continue as always and that the yellow metal is a barbarous relic. He conveniently fails to consider that those nations who have gold may find their power increasing, and those nations who do not, will find themselves in decline and sidelined. As the global industrial economy we have today continues its collapse due to energy and resource depletion, that "power" he refers to will necessarily be redefined, based as it is today on consumption habits that can not possibly be maintained. Gold is a likely candidate for the rallying point behind which the new upcoming power block will emerge.

Powerful nations are only powerful for a short time. Eventually, all empires collapse. Our period is no different from every other one throughout history.

[cloudhopper]

Seems to be a lot of retail selling of gold in India as gold reaches new records vs the rupee

http://www.bloomberg...-record-2-.html

These types of articles are meaningless as are the "China/Iran/etc. buys record amounts of gold" types.

For every buyer there was a willing seller, at a mutually acceptable price.

Just like the hype about China dumping USTs - even if it were true it just means another party is happy to take it off em at that price.

[churchill]

'For every buyer there was a willing seller, at a mutually acceptable price.'

I noticed that with Limes at Tesco ... 6 Baht each some days !

[Naam]

'For every buyer there was a willing seller, at a mutually acceptable price.'

I noticed that with Limes at Tesco ... 6 Baht each some days !

no news of any central banks buying gold by converting their "worthless fiat reserves"?

[Jayman]

Seems to be a lot of retail selling of gold in India as gold reaches new records vs the rupee

http://www.bloomberg...-record-2-.html

These types of articles are meaningless as are the "China/Iran/etc. buys record amounts of gold" types.

For every buyer there was a willing seller, at a mutually acceptable price.

Just like the hype about China dumping USTs - even if it were true it just means another party is happy to take it off em at that price.

So then supply and demand is information is meaningless since every seller has a buyer and vise versa? You might call it meaningless buy if folks are selling physical or buying physical then it will have a bearing on the price. Now that could easily be negated by paper gold buying/selling.

[Jayman]

'For every buyer there was a willing seller, at a mutually acceptable price.'

I noticed that with Limes at Tesco ... 6 Baht each some days !

no news of any central banks buying gold by converting their "worthless fiat reserves"?

The central banks are very secretive about their gold trades and it is only after the fact that the numbers get published. It has always been that way.

[churchill]

'For every buyer there was a willing seller, at a mutually acceptable price.'

I noticed that with Limes at Tesco ... 6 Baht each some days !

no news of any central banks buying gold by converting their "worthless fiat reserves"?

They would do better buying limes at 2 Baht and selling a 6 ...and then buying gold .

[Naam]

Seems to be a lot of retail selling of gold in India as gold reaches new records vs the rupee

http://www.bloomberg...-record-2-.html

These types of articles are meaningless as are the "China/Iran/etc. buys record amounts of gold" types.

For every buyer there was a willing seller, at a mutually acceptable price.

Just like the hype about China dumping USTs - even if it were true it just means another party is happy to take it off em at that price.

So then supply and demand is information is meaningless since every seller has a buyer and vise versa? You might call it meaningless buy if folks are selling physical or buying physical then it will have a bearing on the price. Now that could easily be negated by paper gold buying/selling.

supply and demand is not meaningless because that ratio determines the price of any asset. meaningless is that x-amount of any asset was sold/bought if it had no impact on the price.

[MrRealDeal]

paper Gold ? Could you be more specific because most gold contracts or ETF's track the price of gold they don't own gold aside from a few and they do not effect the price .

[Naam]

'For every buyer there was a willing seller, at a mutually acceptable price.'

I noticed that with Limes at Tesco ... 6 Baht each some days !

no news of any central banks buying gold by converting their "worthless fiat reserves"?

The central banks are very secretive about their gold trades and it is only after the fact that the numbers get published. It has always been that way.

they can be only secretive when they switch gold between each other or like the case "gold from IMF to Reserve Bank of India". it is impossible to keep major trades a secret.

[Jayman]

'For every buyer there was a willing seller, at a mutually acceptable price.'

I noticed that with Limes at Tesco ... 6 Baht each some days !

no news of any central banks buying gold by converting their "worthless fiat reserves"?

The central banks are very secretive about their gold trades and it is only after the fact that the numbers get published. It has always been that way.

they can be only secretive when they switch gold between each other or like the case "gold from IMF to Reserve Bank of India". it is impossible to keep major trades a secret.

As I said.. those numbers are not published in real time.

[churchill]

Seems to be a lot of retail selling of gold in India as gold reaches new records vs the rupee

http://www.bloomberg...-record-2-.html

These types of articles are meaningless as are the "China/Iran/etc. buys record amounts of gold" types.

For every buyer there was a willing seller, at a mutually acceptable price.

Just like the hype about China dumping USTs - even if it were true it just means another party is happy to take it off em at that price.

So then supply and demand is information is meaningless since every seller has a buyer and vise versa? You might call it meaningless buy if folks are selling physical or buying physical then it will have a bearing on the price. Now that could easily be negated by paper gold buying/selling.

supply and demand is not meaningless because that ratio determines the price of any asset. meaningless is that x-amount of any asset was sold/bought if it had no impact on the price.

If the x-amount is sold or bought but does not really exist ....... then if prices rise or fall too much ..that may cause a problem ie short squeeeeze ..

[Jayman]

paper Gold ? Could you be more specific because most gold contracts or ETF's track the price of gold they don't own gold aside from a few and they do not effect the price .

If you don't have the gold in your hand then you are trading paper gold. That you think it is backed by allocated reserves is just an illusion. This has been spoken about to death and you should do a little checking around if you need more info.

could probably start just by googling allocated gold

Edited June 6, 2012 by Jayman

[MrRealDeal]

I said it was NOT backed by it not that it was. ...... Thats the part that says "they don't own gold" The term paper gold is one that's new to me is all , Had you used a more common term like futures contract or eft I would have understood and still said that your paper gold does not have the power to negate real gold buying and selling.

PS if you are going to try and be condecending at least read the sentence correctly next time .... thank you

Edited June 6, 2012 by MrRealDeal

[Jayman]

All the naked short selling of gold being done by Large banks is paper gold. And it very much effects the price of physical gold.

http://www.nypost.co...bMK7mb1uJeVHb0O

Christian said that the LBMA -- the same market Maguire trades in -- has leverage of about 100-1 on the gold bars settled on the exchange. In layman's terms, that means if 100 clients requested their bullion bars be delivered, the exchange could only give one client the precious metal.

or just check out GATA

Just to be clear.. when I say "paper gold" I am talking about any gold trade that does not involve the physical transfer of physical gold from one party to the other.

Edited June 6, 2012 by Jayman