Where Is Gold Going In This Market

[yoshiwara]

With many global investors still rattled by the recent price action in gold and silver, today King World News interviewed the “London Trader” to get his take on these markets. The source told KWN that not only was a shocking amount of paper gold sold in just 4 hours yesterday, but it was also confirmed that the mainstream media is not reporting the staggering amount of physical gold that has actually been purchased by China "recently". Here is what the source had to say...

it's a big advantage to have "the London Trader" as a "source", who is the only one with the knowledge how many hundred tons of Gold China has bought without revealing it. these secret Chinese purchases must have been the reason why gold prices were stable "recently".

it goes without saying that the main stream media are not reporting the facts because firstly "China is not disclosing what their true reserves are" and secondly the main stream media is controlled by the Bilderbergs and Illuminati who try to use the gold price as means to set up their "New World Order" after their attempt with chicken/swine flu virus has miserably failed.

By George, I think he's got it.

The gold bugs are happy to tell us that when the price of gold goes up it is because central banks are furiously buying mountains of gold. The problem is, that when the price of gold goes down, the explanation is? The other bit of nonsense thrown in is from those who say that they are not bothered by the price of gold (when it goes down) because they are not interested in 'fake' gold, only the price of coins. Hey! we're above this game. Sure you are.

[Naam]

The gold bugs are happy to tell us that when the price of gold goes up it is because central banks are furiously buying mountains of gold. The problem is, that when the price of gold goes down, the explanation is? The other bit of nonsense thrown in is from those who say that they are not bothered by the price of gold (when it goes down) because they are not interested in 'fake' gold, only the price of coins. Hey! we're above this game. Sure you are.

i'm not exactly completely "above this game" and would like to use an old posting and a rather new comment to explain where i stand:

for the benefit of those TV-members who are looking for information i consider it my duty to point out flaws, incorrect facts and/or assumptions as well as wishy-washy or outright ridiculous claims.

disclaimer: i (actually "we") hold a substantial amount of physical, paper and 'mining' gold and after the 2009 mother load of investment opportunities (which are gone now) i see fair value in holding a certain percentage of gold because we are facing an uncertain future. but the afore-mentioned does not prevent that i keep on acting as 'advocatus diaboli' in this thread as a counterweight of goldbugs who float on cloud nine.

recently i added something like "whether the gold price goes up or down a few hundred dollars per ounce doesn't concern me at all. but i would be very concerned if the price suddenly skyrockets to let's say $5k an ounce because that'd mean that all my income producing other investments would not only suffer considerable losses and/or defaults".

addendum: presently neither holding paper gold nor gold mining shares, physical only.

[flying]

addendum: presently neither holding paper gold nor gold mining shares, physical only.

Me thinks that is a wise move at this time.

[churchill]

'recently i added something like "whether the gold price goes up or down a few hundred dollars per ounce doesn't concern me at all. but i would be very concerned if the price suddenly skyrockets to let's say $5k an ounce because that'd mean that all my income producing other investments would not only suffer considerable losses and/or defaults".'

Agree .....I would rather economies stayed stable and our PM insurance is not needed ......but do not have any faith in politicians to get us out of this muddle and feel that more qe ing & can kicking is coming ..

Now spain has been sorted I expect everyone will be buying euros and selling $$

'The Spanish deal also gives European policymakers more time to strengthen the single currency. They are already talking about creating a "banking union" with a centralized regulator, a bailout fund and a European Union-wide deposit insurance backstop.

"Spain's decision to seek a bailout for its banks buys some temporary breathing room for the Eurozone," Cornell's Prasad says.'

http://cnsnews.com/n...uys-time-europe

Edited June 10, 2012 by churchill

[yoshiwara]

Now spain has been sorted I expect everyone will be buying euros and selling $$

A lot of money has been lost shorting the euro.

[yoshiwara]

The gold bugs are happy to tell us that when the price of gold goes up it is because central banks are furiously buying mountains of gold. The problem is, that when the price of gold goes down, the explanation is? The other bit of nonsense thrown in is from those who say that they are not bothered by the price of gold (when it goes down) because they are not interested in 'fake' gold, only the price of coins. Hey! we're above this game. Sure you are.

i'm not exactly completely "above this game" and would like to use an old posting and a rather new comment to explain where i stand:

for the benefit of those TV-members who are looking for information i consider it my duty to point out flaws, incorrect facts and/or assumptions as well as wishy-washy or outright ridiculous claims.

disclaimer: i (actually "we") hold a substantial amount of physical, paper and 'mining' gold and after the 2009 mother load of investment opportunities (which are gone now) i see fair value in holding a certain percentage of gold because we are facing an uncertain future. but the afore-mentioned does not prevent that i keep on acting as 'advocatus diaboli' in this thread as a counterweight of goldbugs who float on cloud nine.

recently i added something like "whether the gold price goes up or down a few hundred dollars per ounce doesn't concern me at all. but i would be very concerned if the price suddenly skyrockets to let's say $5k an ounce because that'd mean that all my income producing other investments would not only suffer considerable losses and/or defaults".

addendum: presently neither holding paper gold nor gold mining shares, physical only.

That assumes that you see gold as a hedge against all your other assets and that is not a slam dunk bet. Secondly it is a coin. A coin in a bag. Or a bar in a bag. Not an asset with definable use value. Nor is a work of art for that matter. But at least a work of art indicates cultural appreciation and sensitivity.

[flying]

Not an asset with definable use value.

Millions of individuals & thousands of years of history would smile at that comment

PS: Somewhat curious of what your interest in this thread is at all?

Edited June 10, 2012 by flying

[Naam]

Now spain has been sorted I expect everyone will be buying euros and selling $$

Spain is not yet sorted out. it is still doubtful whether the systemic banks can be saved with €100bb, but even if this amount should be enough there are still more than one gorillas to be tamed, namely some of the deeply indebted big provinces as well as Spains 'federal' public debt. the latter is rather tame when measured in "egghead" ratio debt/GDP but rather high when using debt/revenue ratio.

having said so, i agree with the Prime Minister that we can expect a €UR strengthening as soon as the markets open and some of us will act

[yoshiwara]

Not an asset with definable use value.

Millions of individuals & thousands of years of history would smile at that comment

PS: Somewhat curious of what your interest in this thread is at all?

You probably misunderstand the difference between use value and exchange value.

[Naam]

The gold bugs are happy to tell us that when the price of gold goes up it is because central banks are furiously buying mountains of gold. The problem is, that when the price of gold goes down, the explanation is? The other bit of nonsense thrown in is from those who say that they are not bothered by the price of gold (when it goes down) because they are not interested in 'fake' gold, only the price of coins. Hey! we're above this game. Sure you are.

i'm not exactly completely "above this game" and would like to use an old posting and a rather new comment to explain where i stand:

for the benefit of those TV-members who are looking for information i consider it my duty to point out flaws, incorrect facts and/or assumptions as well as wishy-washy or outright ridiculous claims.

disclaimer: i (actually "we") hold a substantial amount of physical, paper and 'mining' gold and after the 2009 mother load of investment opportunities (which are gone now) i see fair value in holding a certain percentage of gold because we are facing an uncertain future. but the afore-mentioned does not prevent that i keep on acting as 'advocatus diaboli' in this thread as a counterweight of goldbugs who float on cloud nine.

recently i added something like "whether the gold price goes up or down a few hundred dollars per ounce doesn't concern me at all. but i would be very concerned if the price suddenly skyrockets to let's say $5k an ounce because that'd mean that all my income producing other investments would not only suffer considerable losses and/or defaults".

addendum: presently neither holding paper gold nor gold mining shares, physical only.

That assumes that you see gold as a hedge against all your other assets and that is not a slam dunk bet. Secondly it is a coin. A coin in a bag. Or a bar in a bag. Not an asset with definable use value. Nor is a work of art for that matter. But at least a work of art indicates cultural appreciation and sensitivity.

no, it's not a hedge against all our assets for several reasons because some of our assets are more valuable than gold can ever be (e.g. producing agricultural land, roofs above our heads in different countries) nor a hedge against other assets because the percentage of gold we hold (less than 10%) is much too low to act as a hedge; goldbugs who expect $58,000/ounce will of course disagree

there are two main reasons why we hold gold. Mrs Naam's reason is a moderate goldbug one ("gold is something solid and possesses intrinsic value") whereas my reason is the indepth knowledge of the near global collapse of all financial transactions in october 2008.

[Naam]

Not an asset with definable use value.

Millions of individuals & thousands of years of history would smile at that comment

PS: Somewhat curious of what your interest in this thread is at all?

perhaps he thought i needed a "diabolic" partner?

[lannarebirth]

Now spain has been sorted I expect everyone will be buying euros and selling $$

Spain is not yet sorted out. it is still doubtful whether the systemic banks can be saved with €100bb, but even if this amount should be enough there are still more than one gorillas to be tamed, namely some of the deeply indebted big provinces as well as Spains 'federal' public debt. the latter is rather tame when measured in "egghead" ratio debt/GDP but rather high when using debt/revenue ratio.

having said so, i agree with the Prime Minister that we can expect a €UR strengthening as soon as the markets open and some of us will act

100 Bln won't get the job done. Might be good for a ST trade though. I think the remedy when it comes, if it comes, is going to start with a "T", and maybe ultimately, several of those.

[Naam]

100 Bln won't get the job done. Might be good for a ST trade though. I think the remedy when it comes, if it comes, is going to start with a "T", and maybe ultimately, several of those.

??

[yoshiwara]

100 Bln won't get the job done. Might be good for a ST trade though. I think the remedy when it comes, if it comes, is going to start with a "T", and maybe ultimately, several of those.

??

He thinks the solution requires several Trillion dollars.

[flying]

100 Bln won't get the job done. Might be good for a ST trade though. I think the remedy when it comes, if it comes, is going to start with a "T", and maybe ultimately, several of those.

That will hold true not just for Spain

This is the problem.

[lannarebirth]

100 Bln won't get the job done. Might be good for a ST trade though. I think the remedy when it comes, if it comes, is going to start with a "T", and maybe ultimately, several of those.

That will hold true not just for Spain

This is the problem.

It's the domino effect.

[flying]

It's the domino effect.

Yep

[flying]

perhaps he thought i needed a "diabolic" partner?

Well there is Devils advocate & there is dispeller of BS

Knowing you I know your a dispeller........... mistaken at times as a devils advocate

[Naam]

100 Bln won't get the job done. Might be good for a ST trade though. I think the remedy when it comes, if it comes, is going to start with a "T", and maybe ultimately, several of those.

??

He thinks the solution requires several Trillion dollars.

we y€wropeans are still far from trillions. what the Americans call a trillion we call a billion.

[Naam]

It's the domino effect.

Yep

domino or not. most probably i will sell forward a 'hansum' sum of USD tomorrow. wouldn't call it shorting because i own the bucks.

[Naam]

Now spain has been sorted I expect everyone will be buying euros and selling $$

Spain is not yet sorted out. it is still doubtful whether the systemic banks can be saved with €100bb, but even if this amount should be enough there are still more than one gorillas to be tamed, namely some of the deeply indebted big provinces as well as Spains 'federal' public debt. the latter is rather tame when measured in "egghead" ratio debt/GDP but rather high when using debt/revenue ratio.

having said so, i agree with the Prime Minister that we can expect a €UR strengthening as soon as the markets open and some of us will act

after reading that the EU is a priority creditor and not pari passu with the creditors of Spain's sovereign debt i have now some doubts concerning a big EURUSD strengthening. but whatever, some strengthening we can for sure expect.

[Naam]

Now spain has been sorted I expect everyone will be buying euros and selling $$

Spain is not yet sorted out. it is still doubtful whether the systemic banks can be saved with €100bb, but even if this amount should be enough there are still more than one gorillas to be tamed, namely some of the deeply indebted big provinces as well as Spains 'federal' public debt. the latter is rather tame when measured in "egghead" ratio debt/GDP but rather high when using debt/revenue ratio.

having said so, i agree with the Prime Minister that we can expect a €UR strengthening as soon as the markets open and some of us will act

after reading that the EU is a priority creditor and not pari passu with the creditors of Spain's sovereign debt i have now some doubts concerning a big EURUSD strengthening. but whatever, some strengthening we can for sure expect.

EUR vs USD on Globex up a modest 1% ... for starters?

[Jayman]

EUR vs USD on Globex up a modest 1% ... for starters?

Personally I just can't help but short it when I see a gap up like we saw this morning.

[Naam]

EUR vs USD on Globex up a modest 1% ... for starters?

Personally I just can't help but short it when I see a gap up like we saw this morning.

short what?

[Jayman]

EUR vs USD on Globex up a modest 1% ... for starters?

Personally I just can't help but short it when I see a gap up like we saw this morning.

short what?

Short EURUSD.

[lannarebirth]

EUR vs USD on Globex up a modest 1% ... for starters?

Personally I just can't help but short it when I see a gap up like we saw this morning.

short what?

Short EURUSD.

Well the pattern seems to be the release of some sort of splendiferous news out of Europe, followed by a market surge, followed by a slow awakening and appreciation of the breadth and magnitude and the eventual price tag of the political and financial problem. OTOH it's almost Summer and might be a nice time for a short squeeze before the Autumn doldrums set in.

[yoshiwara]

Well the pattern seems to be the release of some sort of splendiferous news out of Europe, followed by a market surge, followed by a slow awakening and appreciation of the breadth and magnitude and the eventual price tag of the political and financial problem. OTOH it's almost Summer and might be a nice time for a short squeeze before the Autumn doldrums set in.

Oh NO! The OTOH's are here!

[Naam]

EUR vs USD on Globex up a modest 1% ... for starters?

Personally I just can't help but short it when I see a gap up like we saw this morning.

short what?

Short EURUSD.

presently with the result "nothing to rave about".

[Jayman]

Short EURUSD.

presently with the result "nothing to rave about".

It's in profit.. better than a loss...

[churchill]

'Now spain has been sorted I expect everyone will be buying euros and selling $$'

lasted about 5 minutes ....

The €249bn hole

http://ftalphaville.ft.com/blog/2012/06/11/1036571/the-e249bn-hole/?utm_source=dlvr.it&utm_medium=twitter