Where Is Gold Going In This Market

[mccw]

BTW mccwWe suddenly are amazed to learn you sold your gold at $1050......ie nearly four years ago.Don't you think it's disingenuous to not eat your own cooking?

£s not $s

Wow Baird and are who take Kruggerrands and so on through the mail are the only people I know who write gold in £

Gold is written in £s everywhere they are for sale in England and the Channel Islands. Money corp, Baird n co, geurnsey mint, my local dealer called bloomsteins, its all priced in £s

I believe there is the London bullion market, also priced in £s ; but I have no direct knowledge about that, other than the screen on the wall in bloomsteins shows a constantly updated price and chart feed taken from that market apparently.

[mccw]

(In UK I was purely buying British coins due to the capital gains tax exemption)

Plus I thought them less desirable or easy to fake than bars.

Edited April 15, 2013 by mccw

[farang000999]

The homes I own in Florida are seeing dramatic leaps in prices. Sale prices are public record and every home being sold is being sold at 20, 30 even 50% of it's proposed value by the county which it's property taxes are based off of. Home prices must be up 25% yoy. Many properties are being bought by investors. You couple this with the stock market as high as it is and the lack of talk about doom and gloom in Europe and it is pretty obvious why gold is crashing.

Naam I think you said you have 10% of your dough in gold? Can you just let us know once again what is your reasoning for owning gold since you believe most of what people talk about is pure BS when they say to buy it.

[farang000999]

Of course it is bit concerning to see new record highs in DJIA coupled with new highs with Americans on food stamps, but I guess that is all part of the "jobless recovery"... that is not an oxymoron?

[mccw]

Naam must be buying more now to keep his percentages intact no?

[cheeryble]

Chairman of the Boston Fed (Rosenburg?) when he spoke of tapering QE spoke of seeing trucks delivering wood to a building site in his street for the first time in five years....

Personally I take an interest in move2oregon.com and the prices sure don't seem very cheap there now....

[yoshiwara]

Assault On Gold Update— Paul Craig Roberts

What happens when 500 tons of gold sales are dumped on the market at one time or

on one day?

Correct, it drivesthe price down. Investors who want to get out of large positions would spread

sales out over time so as not to lower their sales proceeds. The sale took gold down by about $73 per ounce. That means the seller or sellers lost up to $73 dollars 16 million times, or $1,168,000,000.

Who can afford to lose that kind of money? Only a central bank that can print it.

http://www.paulcraigroberts.org/2013/04/13/assault-on-gold-update-paul-craig-roberts/

I don't understand how the sellers are the ones to lose money when the price drops. Those shorting a falling market are the ones to make the profit. It's those buying gold during a falling market that lose.

The market is rigged and highly manipulated. This is not conspiracy theory -- it's fact. Start at GATA http://www.gata.org/ There has been a huge outpouring of articles documenting the manipulation over the last couple of years, and this info is finally being covered by the MSM. JPMorgan is the primary player shorting the market, prices are being driven down, and the insiders are buying. Physical gold is in short supply and some banks have been unable to delivery on future contracts. Educate yourself, keep a cash position and don't be surprised if we watch a 2008 Lehman moment hit soon.

Like a bad penny, bad arguments just keep coming back.

[midas]

Assault On Gold Update— Paul Craig Roberts

What happens when 500 tons of gold sales are dumped on the market at one time or

on one day?

Correct, it drivesthe price down. Investors who want to get out of large positions would spread

sales out over time so as not to lower their sales proceeds. The sale took gold down by about $73 per ounce. That means the seller or sellers lost up to $73 dollars 16 million times, or $1,168,000,000.

Who can afford to lose that kind of money? Only a central bank that can print it.

http://www.paulcraigroberts.org/2013/04/13/assault-on-gold-update-paul-craig-roberts/

I don't understand how the sellers are the ones to lose money when the price drops. Those shorting a falling market are the ones to make the profit. It's those buying gold during a falling market that lose.

The market is rigged and highly manipulated. This is not conspiracy theory -- it's fact. Start at GATA http://www.gata.org/ There has been a huge outpouring of articles documenting the manipulation over the last couple of years, and this info is finally being covered by the MSM. JPMorgan is the primary player shorting the market, prices are being driven down, and the insiders are buying. Physical gold is in short supply and some banks have been unable to delivery on future contracts. Educate yourself, keep a cash position and don't be surprised if we watch a 2008 Lehman moment hit soon.

Remember this ? If it's not a conspiracy, then they could simply put up or shut up?

Largest Dutch bank defaults on physical gold deliveries to customers

" Last week, a rubicon was crossed in the precious metals market as one of the largest banks in Europe

defaulted on their gold contracts and informed their customers there was no physical gold available for delivery."

http://www.examiner.com/article/largest-dutch-bank-defaults-on-physical-gold-deliveries-to-customers

[Naam]

The homes I own in Florida are seeing dramatic leaps in prices. Sale prices are public record and every home being sold is being sold at 20, 30 even 50% of it's proposed value by the county which it's property taxes are based off of. Home prices must be up 25% yoy. Many properties are being bought by investors. You couple this with the stock market as high as it is and the lack of talk about doom and gloom in Europe and it is pretty obvious why gold is crashing.

Naam I think you said you have 10% of your dough in gold? Can you just let us know once again what is your reasoning for owning gold since you believe most of what people talk about is pure BS when they say to buy it.

i am aiming for 10% but the actual share as of today is ~7%

your second question requires two answers / opinions. most people repeat partly only the BS which the actual BS-ers publish. these originators present only half-assed truths or even spread blatant lies and because the afore-mentioned is quoted out of context we see BS results such as (not listed according to priorities):

-buy buy buy

-gold can never go down

-if it goes down just buy more

-gold preserves wealth

-if the <insert citizens> had held gold instead of <insert currency>

-worthless fiat money

-an ounce of gold always kept it's value. it paid for Adam and Eve's leaves when they were kicked

out of paradise and it buys today a gentleman's suit

-once <insert what will happen> gold will be <insert any crazy amount in a currency of your choice>

the list is endless.

my reasons to buy and hold gold are (again not listed according to priorities)

-i can afford to hold a certain amount of gold even it it does not generate any income or capital

gains

-i view gold like i view an insurance policy to compensate and use it in extreme situations. that is

of course only the idea. but i have no idea whether my idea can be applied if and when extreme

situation are surfacing as opposed to the gold-aficionados who think gold will solve all problems

in extreme situations.

if gold, at the end of a year, did not perform... so what? if, at the end of a year, i realise that it was

not required to have open-heart surgery and get my coronary plumbings quadruple replaced as

well as no aorta bypass i will not regret or mutter because all the health insurance premiums i paid

were a waste because my insurance did not have to shell out €48,000 for the hospital and another

€8,000 for two weeks in a rehab clinic.

Florida real estate:

-i built (1989-1995) a total of 4 homes in Central Florida. two for me and two for friends.

-my first home (1989) was a holiday home that cost me $145,000, sold after 3 years @$145,000, Zillow estimate today $142,000.

-my second home (1993) a real home with most bells and whistles cost me ~$525,000, sold after 10 years (2004) @$565,000, sold by the buyer in 2006 for $734,000, Zillow estimate today $320,000, reason: no upkeep, nobody living in it since 3 years, drywall ceilings and walls wet and moldy, pool pumps, aircon systems, etc. stolen, now under pre-foreclosure.

-holiday home for friend #1, built in 1995, cost $185,000, sold in 2004 @$255,000, Zillow estimate today $225,000.

-holiday home for friend #2, built in 1996, cost 205,000, sold in 2004 @240,000, Zillow estimate today $238,000.

all homes located lake waterfront in deed restricted community located between Orlando and Daytona Beach.

[Naam]

Naam must be buying more now to keep his percentages intact no?

in some countries i was known as "that crazy German". i admit that i am crazy. but rest assured... i am not that crazy.

[AnotherOneAmerican]

Scary property prices there Naam.

Zero price gains on everything over 20 years.

[Naam]

The BRICs and China are buying the dips. You should too. There should be more carnage over the next couple of days. Time to head for the gold shops after Songkran.

And hold on to your hats and keep your powder dry: http://www.zerohedge.com/news/2013-04-15/what-happened-last-time-we-saw-gold-drop

it is a well known fact that the BRICs are buying the dips. BRICs are publishing daily the exact purchase amounts and values in Twitter, Facebook and other social networks.

[cloudhopper]

"-i can afford to hold a certain amount of gold even it it does not generate any income or capital

gains

-i view gold like i view an insurance policy to compensate and use it in extreme situations. that is

of course only the idea. but i have no idea whether my idea can be applied if and when extreme

situation are surfacing as opposed to the gold-aficionados who think gold will solve all problems

in extreme situations.

if gold, at the end of a year, did not perform... so what? if, at the end of a year, i realise that it was

not required to have open-heart surgery and get my coronary plumbings quadruple replaced as

well as no aorta bypass i will not regret or mutter because all the health insurance premiums i paid

were a waste because my insurance did not have to shell out €48,000 for the hospital and another

€8,000 for two weeks in a rehab clinic."

[Naam]

Scary property prices there Naam.

Zero price gains on everything over 20 years.

there are valid reasons for it. all homes were owned by us foreigners. if and when foreigners want to sell they want to sell as soon/fast as possible instead of the American way having several years a foresale sign in the front yard, have a zillion potential buyers or tire kickers invade the privacy of their homes and answer stupid questions "what is this second toilet for you call beeday?" with "our maid uses them for washing dirty potatoes bought at the flea market".

other reasons are that homes were pricewise "overbuilt" based on the area and equipped with a certain comfort/luxury the average buyer is not willing to pay for.

in strict financial terms i always suffered a rather big loss when it concerned real estate. but i am used to be a real estate dummy since decades

[farang000999]

"i view gold like i view an insurance policy to compensate and use it in extreme situations."

What are some of the extreme situations in which you believe that gold may perform well?

[Naam]

"i view gold like i view an insurance policy to compensate and use it in extreme situations."

What are some of the extreme situations in which you believe that gold may perform well?

on friday oct18, 2008 i was informed about the possibility of a temporary freeze

of global financial transactions and advised to hold adequate cash in hand. if that

had turned out to be reality it would have been an extreme situation. especially

if "temporary" lasted longer than only a few days.

[cheeryble]

on friday oct18, 2008 i was informed about the possibility of a temporary freeze

of global financial transactions and advised to hold adequate cash in hand. if that

had turned out to be reality it would have been an extreme situation.

........especially with cooling costs like your dogs.

[midas]

useful to just re-cap what has happened to the real stuff just recently………………….

• Extraordinary physical deliveries, not just through
  London but also every other major global center including Shanghai.
• The record Q1 depletion of Comex gold reserves
• The nearly 200 metric tonnes removed YTD from the GLD.
• The record pace of demand for metal from the U.S. Mint.
• The record premiums for bullion, even "junk"silver.
• The "official' reported Chinese importation of 90
  metric tonnes in February alone.
• The destruction of the Kennecott mine in Utah, which in 2012, produced 25% of the U.S.'s copper, 5,000,000 ounces of silver and 500,000 ounces of gold.
• And perhaps most significantly : The DEFAULT of ABN Amro two weeks ago.

[cheeryble]

.

And perhaps most significantly : The DEFAULT of ABN Amro two weeks ago.

....as reported on a website whcih advertises 672% pa forex returns and links to a site selling nuclear gas masks and survival gear and with comments by guys spouting scripture.

I looked elsewhere but all the usual suspects have exactly the same wording so who knows what the source is.

Thanks for that.....

[farang000999]

"i view gold like i view an insurance policy to compensate and use it in extreme situations."

What are some of the extreme situations in which you believe that gold may perform well?

on friday oct18, 2008 i was informed about the possibility of a temporary freeze

of global financial transactions and advised to hold adequate cash in hand. if that

had turned out to be reality it would have been an extreme situation. especially

if "temporary" lasted longer than only a few days.

But it seems like 7% of your wealth in gold just in case of a temporary freeze of global financial transactions seems a bit extreme. And even if this were to occur, wouldn't gold just devalue once money started flowing again? They seem to be getting on okay in Cyprus. Do you anticipate such a freeze to be accompanied by a devaluation of fiat currencies and the return of some kind of gold standard?

Lately I am searching for reasons to own gold, I am now around 5% net worth in gold and my positions previously have been purely speculative, that there will come a point where the shoe shiner is going to go out and want to buy gold. I think this is what Soro's was getting at with the "ultimate bubble" dialogue.

[cheeryble]

Lately I am searching for reasons to own gold.

Don't make one of them an expectation of a gold standard, which would be a most stifling and retrogressive thing which could happen to an economy.

Most of all don't listen to nut websites or people like Jim Sinclair (if he hasn't already gone broke with the same gold bets as John Paulson. He was after all calling an absolute bottom......a month ago).

Edited April 16, 2013 by cheeryble

[mccw]

I think the western "shoe shiners" class have been selling any gold they had these past few years. Cash for gold shops are everywhere and people are broke.

Supply crunch in the marking reported just before this down turn:

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/9879738/Gold-faces-global-supply-crunch.html

[yoshiwara]

I think the western "shoe shiners" class have been selling any gold they had these past few years. Cash for gold shops are everywhere and people are broke.

Supply crunch in the marking reported just before this down turn:

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/9879738/Gold-faces-global-supply-crunch.html

Another crap prediction into the rubbish bin. And look! from The Daily Telegraph! Well I never would have believed it! Edited April 16, 2013 by yoshiwara

[Firefan]

The reason I hold gold (and some gold miners), about 10-15% of portfolio is, besides the "end of financial markets" scenario, is the re-balancing bonus I get from holding these.

A few asset classes fairly uncorrelated to stocks/bonds, really helps make my overall portfolio more stable. Especially if these asset classes have some volatility that can be re-balanced accordingly. So yes; I am now picking up some more gold and gold stocks to get back to my allocated % points.

I am eyeing the closed end fund CEF being in gold and silver bullions and currently at a record discount of about 15% to underlying assets. Gold/silver at 15% sale to current prices.

Cheers!

[yoshiwara]

The reason I hold gold (and some gold miners), about 10-15% of portfolio is, besides the "end of financial markets" scenario, is the re-balancing bonus I get from holding these.

A few asset classes fairly uncorrelated to stocks/bonds, really helps make my overall portfolio more stable. Especially if these asset classes have some volatility that can be re-balanced accordingly. So yes; I am now picking up some more gold and gold stocks to get back to my allocated % points.

I am eyeing the closed end fund CEF being in gold and silver bullions and currently at a record discount of about 15% to underlying assets. Gold/silver at 15% sale to current prices.

Cheers!

There's nothing like 're-balancing' one's portfolio with an asset turning to mush.

And continuing to flog the dead horse that gold is the 'safe' part of a portfolio.

Chanting junk in the face of reality.

Edited April 16, 2013 by yoshiwara

[cloudhopper]

Just curious if anyone has been to the local gold shop today or yesterday to buy (or sell!) and can report on availability/liquidity during these wild price swings...

[mania]

Just curious if anyone has been to the local gold shop today or yesterday to buy (or sell!) and can report on availability/liquidity during these wild price swings...

I did see some shops are open but they have the last business days prices still up.

Meaning the price before songkran started

So I am sure they will sell to you at that 21k THB per baht or what ever it was

But I also bet they will not buy your gold at the buy price listed

Edited April 16, 2013 by mania

[farang000999]

According to the bugs, there is no physical gold for sale anywhere.

[Naam]

According to the bugs, there is no physical gold for sale anywhere.

it's the aliens from the Gamma Quadrant. since weeks they are beaming every day, with the help of shapeshifting central bankers, several hundred tons up, up and away.

[John 1]

According to the bugs, there is no physical gold for sale anywhere.

What do gold shops sell if it's not gold. I must be missing something.