Where Is Gold Going In This Market

[sokal]

Good commentary on gold price from Mish-

http://globaleconomicanalysis.blogspot.com...es-in-gold.html

Mish is a jackass.

[teletiger]

perhaps yes or no

http://matterhornassetmanagement.com/newsl.../?newsletter=21

Thanks good article

very good article! especially the excellent advice

quote: "The highest level of wealth preservation is gold and silver stored outside the banking system and also outside the country where you reside. Therefore an important percentage of a portfolio should be in this area."

now i'm thinking where i should store all that gold and silver "preservative" i am going to buy. Thailand is out because i reside here. my banks in SG, CH and L are out but not "outside the banking system". would it be a good idea to rent a warehouse in Northern Manchuria or perhaps one located in Fiji?

p.s. does anybody have an idea about warehouse rents in Vladivostok?

At $2000 per ounce.....if you can't fit enough in your money-belt.....we'll string you up along with the other vampire-squids.

Regards.

[teletiger]

Is gold trying to break out to the upside? NOOOOO.....$974.80 now.....Tele sniffs for a bulltrap...HAhaha.

Who the <deleted> knows. ALL markets are now manipulated. All analytics are now officially bullshit. Toss a coin. Try your luck.

I've got small denomination gold, which I'll keep and put any losses down to insurance. If I pick up a few bakeries on the way, at least I'll have decent toast for breakfast.

Regards.

If you think gold is in a long term bull trap rally then you are clueless.

I get f*cked no matter what I do, that is why I am not a day trader. I am really bearsh on the Dollar long term but I figured because so many foolhardy investors will pile into the dollar short term that I would buy 1000 dollars to convert to BHT in 2 weeks for my trip. That was yesterday, now I turn on the TV and it seems like gold is decoupling from the dollar less then 12 hours after my $ purchase. Gold is up $20 and the dollar is down.

I'm clueless? <deleted> A man. We are all numbnuts. Manipulated markets have that tendency.

GS and JPM are both short gold now. Who is manipulating the markets right now? 'And you call me clueless for doubting a little tickle to the upside?

You're right, I'm clueless.

Regards.

Edited September 2, 2009 by teletiger

[flying]

Hasn't the dollar hit its head on the 78.8 ceiling a few times now?

Not saying folks wont run to it again soon as TSHTF but for now??

Dollar could fall to 74 area now?

Edited September 2, 2009 by flying

[teletiger]

The big 3 (Fed, Treas, GS) can't afford the dollar to fall right now. Got to keep up appearances. To whom? The World knows they're fcucked. Right now, the Fed, having no bullets left, is looking around for rocks. The veils are slowly lifting. The Emperor will be exposed. The timeline depends on how much they are willing to print. A reset, or war (wholesale) is in the offing, else they are mortgaging their grandchildrens future.

Regards.

[sokal]

Is gold trying to break out to the upside? NOOOOO.....$974.80 now.....Tele sniffs for a bulltrap...HAhaha.

Who the <deleted> knows. ALL markets are now manipulated. All analytics are now officially bullshit. Toss a coin. Try your luck.

I've got small denomination gold, which I'll keep and put any losses down to insurance. If I pick up a few bakeries on the way, at least I'll have decent toast for breakfast.

Regards.

If you think gold is in a long term bull trap rally then you are clueless.

I get f*cked no matter what I do, that is why I am not a day trader. I am really bearsh on the Dollar long term but I figured because so many foolhardy investors will pile into the dollar short term that I would buy 1000 dollars to convert to BHT in 2 weeks for my trip. That was yesterday, now I turn on the TV and it seems like gold is decoupling from the dollar less then 12 hours after my $ purchase. Gold is up $20 and the dollar is down.

I'm clueless? <deleted> A man. We are all numbnuts. Manipulated markets have that tendency.

GS and JPM are both short gold now. Who is manipulating the markets right now? 'And you call me clueless for doubting a little tickle to the upside?

You're right, I'm clueless.

Regards.

ok, I get your post now, at first I thought you where just an anti gold guy but now I get what your saying. We are all clueless.

GS and JPM are advised by the plunge protection team to be short gold. One thing I do know is that if all the fools in the Gold and Silver ETF's had the brains to take physical delivery then that would crash the USD.

That is the best outcome, destroy the current system and build a new one from the ground up.

[lannarebirth]

Is gold trying to break out to the upside? NOOOOO.....$974.80 now.....Tele sniffs for a bulltrap...HAhaha.

Who the <deleted> knows. ALL markets are now manipulated. All analytics are now officially bullshit. Toss a coin. Try your luck.

I've got small denomination gold, which I'll keep and put any losses down to insurance. If I pick up a few bakeries on the way, at least I'll have decent toast for breakfast.

Regards.

If you think gold is in a long term bull trap rally then you are clueless.

I get f*cked no matter what I do, that is why I am not a day trader. I am really bearsh on the Dollar long term but I figured because so many foolhardy investors will pile into the dollar short term that I would buy 1000 dollars to convert to BHT in 2 weeks for my trip. That was yesterday, now I turn on the TV and it seems like gold is decoupling from the dollar less then 12 hours after my $ purchase. Gold is up $20 and the dollar is down.

I'm clueless? <deleted> A man. We are all numbnuts. Manipulated markets have that tendency.

GS and JPM are both short gold now. Who is manipulating the markets right now? 'And you call me clueless for doubting a little tickle to the upside?

You're right, I'm clueless.

Regards.

ok, I get your post now, at first I thought you where just an anti gold guy but now I get what your saying. We are all clueless.

GS and JPM are advised by the plunge protection team to be short gold. One thing I do know is that if all the fools in the Gold and Silver ETF's had the brains to take physical delivery then that would crash the USD.

That is the best outcome, destroy the current system and build a new one from the ground up.

Not only is that not likely, it isn't even possible.

[flying]

One thing I do know is that if all the fools in the Gold and Silver ETF's had the brains to take physical delivery

Not only is that not likely, it isn't even possible.

Sad but true.....when trading paper they always have the option of defaulting & and paying you in...........you guessed it paper

[sokal]

Not only is that not likely, it isn't even possible.

why ? because we would find out the real price of gold bullion ?

I have not had a lawyer look over the GLD contract but my guess is that the holders of GLD do have the right to bullion in the court of law. The miners would just have to start mining

Edited September 2, 2009 by sokal

[flying]

Martin Hennecke on CNBC discussing gold thins morning.

http://www.cnbc.com/id/32638139

While I have always been in the "you dont own it if you dont hold it camp"

It was a bit of a surprise to hear him say that paper gold is in fact leveraged 80 times the actual amount of physical gold. I find that rather shocking & frankly I'm amazed it is legal.

Martin Hennecke:

They should look at a good exposure to physical precious metals, physical gold, silver, platinum and looking to having the actual metals there instead of some paper gold investment scheme where there isn't full backing, where the metal might be leased out or used for derivatives. That's a very crucial thing because there is 80 times more paper gold in the market, similar number for silver, than actual physical metal that's in existence on our planet.

CNBC news model:

uhm uhm ha yes, it certainly is an interesting situation, but it's good to know there still are opportunities out there Martin, thanks for joining us today...

:D

Edited September 3, 2009 by flying

[sokal]

More good commentary from FOFA

Every day I read new articles about how and why a purely symbolic unit of account, a book entry, a piece of freaking manmade paper is going to RISE in value simply because a couple hundred million sheep can no longer be trusted to pay their bills. Are you kidding me? It is the SYSTEM that is failing. The system IS the dollar. The dollar IS the system! And the trusted administrators of this system are right now FLAUNTING their power to create new digits at will TO BUY THEIR OWN FREAKING DEBT!

Full article here

[flying]

It is the SYSTEM that is failing. The system IS the dollar. The dollar IS the system!

This is why I always say the dollar is backed only by a promise of others.

Others willingness to continue to labor under an increasing tax burden.

This is the weak link as more & more continue to become wards of the State.

CONTRADICTION #2: For more than twenty years, representatives of the United States government did nothing as millions of manufacturing, information technology, software development, customer service and other jobs were exported to foreign countries. In fact, government actions, such as: NAFTA; direct and indirect currency manipulations that artificially supported the U.S. dollar, negatively affecting exports and opening the floodgates to a cascade of imports;

Apparently, no one in government could have cared less that the lives of millions of American families were shattered as their jobs vanished and their finances crashed, or that the country had become crippled as it lost its manufacturing base and morphed into a so-called “service economy,” an economic fantasy that is now failing catastrophically. Perhaps there would have been greater concern in Washington if government jobs were being exported to foreign countries, too.

Contrast that to the following: within mere weeks of the Wall Street financial crisis going Code Blue in late 2008 (thanks to Wall Street’s own Biblically-epic avarice and recklessness), Congress had passed the largest financial industry bailout package in the country’s history, based on nothing more than a few “back of the envelope” proposals made by a seriously-conflicted Goldman Sachs executive turned Treasury Secretary and a cooperative head of the Federal Reserve. This was despite the fact that 90% of the American people were instantly and adamantly opposed to TARP

http://www.321gold.com/editorials/doughert...erty090209.html

This is also why I feel they deserve what lies ahead. We are truly in a state of taxation without representation.

[badge]

Precious Metals run for the boarder.

Not that impressed thus far, lets see how it pans out

[flying]

Precious Metals run for the boarder.

Not that impressed thus far, lets see how it pans out

Somehow I think you will not be impressed

[badge]

Precious Metals run for the boarder.

Not that impressed thus far, lets see how it pans out

Somehow I think you will not be impressed

Your probably right. I can think of far more efficient uses of my capital

Edited September 3, 2009 by badge

[flying]

Thats right. I know far better places to my capital

yup thats what I figured

Ok back on topic then

Edited September 3, 2009 by flying

[Naam]

Martin Hennecke on CNBC discussing gold thins morning.

http://www.cnbc.com/id/32638139

While I have always been in the "you dont own it if you dont hold it camp"

It was a bit of a surprise to hear him say that paper gold is in fact leveraged 80 times the actual amount of physical gold. I find that rather shocking & frankly I'm amazed it is legal.

i don't have access to exact data but since several years everybody knows that paper gold exceeds the existence of physical gold multiple times. the same goes for any commodity whether pork bellies, wheat, rice, oil, orange juice, copper, you name it and last not least... currencies. each and every day more Dollars and Euros change hands than what really exist. legal? my àss!

Edited September 3, 2009 by Naam

[badge]

Martin Hennecke on CNBC discussing gold thins morning.

http://www.cnbc.com/id/32638139

While I have always been in the "you dont own it if you dont hold it camp"

It was a bit of a surprise to hear him say that paper gold is in fact leveraged 80 times the actual amount of physical gold. I find that rather shocking & frankly I'm amazed it is legal.

Try 140 times

[deathraser]

I personally feel that gold price is going to go higher and higher. With the depreciating dollar, I do not see why gold prices would go down. Gold has increased its price from $250 to $1000 already in this year. So, that is what I think will happen.

[Naam]

I personally feel that gold price is going to go higher and higher. With the depreciating dollar, I do not see why gold prices would go down. Gold has increased its price from $250 to $1000 already in this year. So, that is what I think will happen.

the last time you could buy gold for 250 dollars was NINE YEARS AGO!

[churchill]

This may be the turning point - Unfortunately I sold out 10 days or ago , thinking that a market correction would cause $ to rally and Gold to fall - I may still be correct - Who knows ?

This is good news for gold bulls and probably gives an indication that China is buying more gold

see below

http://www.mineweb.com/mineweb/view/minewe...2&sn=Detail

China pushes silver and gold investment to the masses

A report suggests that the Chinese government is pushing the general public into buying gold and silver bullion, which could have a dramatic effect on the markets.

Author: Lawrence Williams

Posted: Thursday , 03 Sep 2009

LONDON -

We are indebted again to Paul Mylchreest's Thunder Road Report for news that will bring big smiles to gold and silver investors everywhere. Apparently China is pushing the idea of buying gold and silver for investment purposes to the general population in the way that Western television sells soap powder. If 1.3 billion Chinese citizens start buying gold and silver, even in tiny quantities, imagine what that will do to the market!

The report notes that China's Central Television, the main state-owned television company, has run a news programme letting the public know how easy it is to buy precious metals as an investment. On silver investment the announcer is quoted as saying " China has introduced its first ever investment opportunity for silver bullion. The bars are available in 500g, 1kg, 2kg and 5kg with a purity of 99.9%. Figures show that gold was fifty times more expensive than silver in 2007, but now that figure has reached over seventy times. Analysts say that silver has been undervalued in recent years. They add that the metal is the right investment for individual investors and could be a good way to cash in."

What appears to have happened in China is a total relaxation of strictures on holding precious metals by the individual with the government pushing gold and silver as an investment option, seemingly at every opportunity. This is a far cry from the situation only a few years ago where the distribution of gold and silver was strictly controlled. Now, the Thunder Road Report notes that every bank will sell gold and silver bullion bars in four different sizes to individuals and gold related investments are said to be soaring in popularity.

Around a year ago, Leyshon Resources managing director, Paul Atherley, in an investor presentation in London - and no doubt delivered elsewhere in the world too - commented that some employees at the company's gold mining project in northern China would, on pay day, go to the local bank and buy a small gold bar as an investment and wealth protector. To an extent we put this down at the time to mining company hype - but this seems to be exactly the same phenomenon noted by Thunder Road. The Chinese are being converted from being the lowest per capita gold consumers in the world to a nation of small precious metals investors. Now, by next year, Chinese consumption of gold is likely to exceed that of India, which has been for years the world's biggest gold market. And one suspects that the potential for gold purchasing by individuals is only in its earliest stages. As more and more Chinese move into the cities and individual wealth grows, this trend is only likely to accelerate.

Paul ends the piece on Chinese gold and silver potential with the following comment: "Simply put, the Chinese government is trying to trigger a national gold craze...and it's working. The Chinese public now has gold trading platforms on steroids.... ...Also, for the first time in history, Chinese investors can even trade gold abroad (in London) with the swipe of a ‘Lucky Gold' card. I can't even get Bank of America to open a foreign currency account."

This may be an overstatement of the case from a precious metals bull - or it may not! Certainly if China is indeed pushing the public to buy gold then there may well be a hidden agenda here. It's unlikely they are doing it and will suddenly pull the rug out from under millions of investors. A cynic (or a raging gold bull) would suggest that this will precede a move to switch a good proportion of the country's reserves into gold which would have a huge effect on the global gold price and could prove disastrous for the dollar. Maybe it's not in China's interests to drive the dollar down too much until it has managed to divest itself of the huge dollar overhang (see the article on Chinese Sovereign Wealth Funds we published yesterday - Chinese sovereign wealth fund dumping dollars for strategic investments like gold ). The country may well already be, of course, surreptitiously building its gold reserves without reporting the build-up.

If the Chinese are indeed beginning to buy gold and silver as the quoted report suggests then this has to be a strong signal that prices are going to rise, and perhaps rise dramatically, in the relatively near future. We await comment from other China watchers for confirmation of the gold and silver buying spree, but with global gold production at best flat and probably in decline, even a small increase in Chinese buying could have a substantial impact on gold and silver prices.

[Naam]

This may be the turning point - Unfortunately I sold out 10 days or ago , thinking that a market correction would cause $ to rally and Gold to fall - I may still be correct - Who knows ?

This is good news for gold bulls and probably gives an indication that China is buying more gold see below

http://www.mineweb.com/mineweb/view/minewe...2&sn=Detail

China pushes silver and gold investment to the masses

i don't remember having ever seen more purified and concentrated bullshit in a "report" that pushes a commodity with mere assumptions presented as facts. anybody with a fair analytic mind could rip this "report" into tiny pieces.

[Naam]

China pushes silver and gold investment to the masses

A report suggests that the Chinese government is pushing the general public into buying gold and silver bullion, which could have a dramatic effect on the markets.

Author: Lawrence Williams

Posted: Thursday , 03 Sep 2009

LONDON -

We are indebted again to Paul Mylchreest's Thunder Road Report for news that will bring big smiles to gold and silver investors everywhere. Apparently China is pushing the idea of buying gold and silver for investment purposes to the general population in the way that Western television sells soap powder. If 1.3 billion Chinese citizens start buying gold and silver, even in tiny quantities, imagine what that will do to the market!

The report notes that China's Central Television, the main state-owned television company, has run a news programme letting the public know how easy it is to buy precious metals as an investment. On silver investment the announcer is quoted as saying " China has introduced its first ever investment opportunity for silver bullion. The bars are available in 500g, 1kg, 2kg and 5kg with a purity of 99.9%. Figures show that gold was fifty times more expensive than silver in 2007, but now that figure has reached over seventy times. Analysts say that silver has been undervalued in recent years. They add that the metal is the right investment for individual investors and could be a good way to cash in."

What appears to have happened in China is a total relaxation of strictures on holding precious metals by the individual with the government pushing gold and silver as an investment option, seemingly at every opportunity. This is a far cry from the situation only a few years ago where the distribution of gold and silver was strictly controlled. Now, the Thunder Road Report notes that every bank will sell gold and silver bullion bars in four different sizes to individuals and gold related investments are said to be soaring in popularity.

Around a year ago, Leyshon Resources managing director, Paul Atherley, in an investor presentation in London - and no doubt delivered elsewhere in the world too - commented that some employees at the company's gold mining project in northern China would, on pay day, go to the local bank and buy a small gold bar as an investment and wealth protector. To an extent we put this down at the time to mining company hype - but this seems to be exactly the same phenomenon noted by Thunder Road. The Chinese are being converted from being the lowest per capita gold consumers in the world to a nation of small precious metals investors. Now, by next year, Chinese consumption of gold is likely to exceed that of India, which has been for years the world's biggest gold market. And one suspects that the potential for gold purchasing by individuals is only in its earliest stages. As more and more Chinese move into the cities and individual wealth grows, this trend is only likely to accelerate.

Paul ends the piece on Chinese gold and silver potential with the following comment: "Simply put, the Chinese government is trying to trigger a national gold craze...and it's working. The Chinese public now has gold trading platforms on steroids.... ...Also, for the first time in history, Chinese investors can even trade gold abroad (in London) with the swipe of a ‘Lucky Gold' card. I can't even get Bank of America to open a foreign currency account."

This may be an overstatement of the case from a precious metals bull - or it may not! Certainly if China is indeed pushing the public to buy gold then there may well be a hidden agenda here. It's unlikely they are doing it and will suddenly pull the rug out from under millions of investors. A cynic (or a raging gold bull) would suggest that this will precede a move to switch a good proportion of the country's reserves into gold which would have a huge effect on the global gold price and could prove disastrous for the dollar. Maybe it's not in China's interests to drive the dollar down too much until it has managed to divest itself of the huge dollar overhang (see the article on Chinese Sovereign Wealth Funds we published yesterday - Chinese sovereign wealth fund dumping dollars for strategic investments like gold ). The country may well already be, of course, surreptitiously building its gold reserves without reporting the build-up.

If the Chinese are indeed beginning to buy gold and silver as the quoted report suggests then this has to be a strong signal that prices are going to rise, and perhaps rise dramatically, in the relatively near future. We await comment from other China watchers for confirmation of the gold and silver buying spree, but with global gold production at best flat and probably in decline, even a small increase in Chinese buying could have a substantial impact on gold and silver prices.

[churchill]

Bundesbank confirms Germany's gold is in play

Germany's central bank, the Bundesbank, today confirmed that much of its gold is held outside the country at "trading centers" where the bank conducts "its gold activities

http://www.gata.org/node/7713

[CaptainARK1]

Gold major trend reversal imminent!

First drop can be $40-60 in a heartbeat.

New downtrend will last for 2 years or more.

[churchill]

Why?

[PCA]

Gold major trend reversal imminent!

First drop can be $40-60 in a heartbeat.

New downtrend will last for 2 years or more.

does that mean you are short and how high must gold climb in order to get you out of this thread again?

[badge]

Why would China buy gold when it produces more than anyone else?

[LaoPo]

China pushes silver and gold investment to the masses

These reports have been circling already for some time now, also in the Chinese press, and I tipped the cousin of my wife, working on the stock market to look into gold -with a dragons' eye- on a daily basis

It could be a hidden agenda of Beijing but also trying to divert Chinese stock and futures' gamblers back onto their feet and invest a part of the money in gold, trying to avoid too much speculation (and possible losses and thus: unrest) after the Shanghai market went up already some 50% this year

But, it could certainly drive the price sky high if investors do invest in gold; after all there are more than 100 million stock market players in China.

But it could also have to do with discoveries (rumours; but also from Canadian sources) in China of large new gold mines. China is already the largest gold producer after overtaking South Africa who was the largest producer in the world for more than 100 years.

At the same time gold mines and companies are already rising, quite substantially.

What that would do to the more than 2 Trillion US$ reserves China has in the US remains to be seen.

Anyone ?

LaoPo

[sokal]

This may be the turning point - Unfortunately I sold out 10 days or ago , thinking that a market correction would cause $ to rally and Gold to fall - I may still be correct - Who knows ?

This is good news for gold bulls and probably gives an indication that China is buying more gold see below

http://www.mineweb.com/mineweb/view/minewe...2&sn=Detail

China pushes silver and gold investment to the masses

i don't remember having ever seen more purified and concentrated bullshit in a "report" that pushes a commodity with mere assumptions presented as facts. anybody with a fair analytic mind could rip this "report" into tiny pieces.

HONG KONG (MarketWatch) -- Hong Kong is pulling all its physical gold holdings from depositories in London, transferring them to a high-security depository newly built at the city's airport, in a move that won praise from local traders Thursday.

The facility, industry professionals said, would support Hong Kong's emergence as a Swiss-style trading hub for bullion and would lessen London's status as a key settlement-and-storage center.

Martin Hennecke, a financial advisor with the Hong Kong-based Tyche Group Ltd., said that could be appealing to regional central banks unnerved after watching the global financial system teeter on verge of implosion last year.

"Central banks are increasingly aware of the importance of having gold reserves at time of financial crisis and having it easily available at their own disposal," he said. Marketing efforts will be launched to convince Asian central banks to transfer their gold reserves to the Hong Kong facility, according to reports citing Raymond Lai, finance director with the Hong Kong Airport Authority.