Where Is Gold Going In This Market

[Abrak]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

[Abrak]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

[Abrak]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

[Abrak]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

[Abrak]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

[Abrak]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

[Abrak]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

[Abrak]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

[Abrak]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

[Abrak]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

[Abrak]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

[flying]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

Holy Echo ! 12x post? Is that a pun for slowly accumulating or did you have too much coffee?

Edited October 3, 2009 by flying

[flying]

You know I really do have a problem with that video. You see essentially gold isnt really money or a 'real store of value' because it is inherently too volatile. Some people know this and argue that it is not gold that is volatile but the US$ in which it is priced. But this is a nonsense because then you would have to assume velocity of money is highly volatile based on gold.

But you are basing all your thought only gold vs USD gold is not pegged to the USD as Naam so often points out.

Also perhaps you should blame that volatility not on gold but the removal of the gold standard that allowed such volatility due to a free hand at the presses.

Lastly the store of value you claim for the USD is the essence of volatility controlled by forces that are not free market based. The only reason the USD has become the kingpin that it is IMO.... is because it started life based on 3 words

Good As Gold None would have trusted it if not for that.

Now look at what it has become. It is hard to argue with the examples the video gave, car,gas etc.

Today it is becoming painfully obvious to the world that the emperor has no clothes.

Edited October 3, 2009 by flying

[Naam]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

but that will all change drastically one of these days. China will buy all the gold from the IMF and all the gold in the open market. China is also advising his citizens to buy precious metals. price of precious metals -mainly gold and silver- will explode. fiat money will be abolished. you don't believe me? you mean the goldbugs were wrong for three decades? isn't that an indication that their forecasts will come true soon? so what if it takes another three decades or perhaps a couple of centuries? it's the bottom line that counts! Rome was not built in seven days.

[Naam]

You know I really do have a problem with that video. You see essentially gold isnt really money or a 'real store of value' because it is inherently too volatile. Some people know this and argue that it is not gold that is volatile but the US$ in which it is priced. But this is a nonsense because then you would have to assume velocity of money is highly volatile based on gold.

The only reason the USD has become the kingpin that it is IMO.... is because it started life based on 3 words

Good As Gold None would have trusted it if not for that.

those who bought gold in 1980, slowly sold their "preserved wealth" over the years with huge losses and starved to death eighteen years later are now happily lying in their graves as the thought "good as gold" gives them eternal peace.

[flying]

those who bought gold in 1980, slowly sold their "preserved wealth" over the years with huge losses and starved to death eighteen years later are now happily lying in their graves as the thought "good as gold" gives them eternal peace.

But that is the same old backwards argument ....

The fiat that is un-backed & uncontrolled not to mention the naked short selling of silver & gold that does not exist along with the paper gold trade that as you once said was leveraged what? 180x against what is physically available.

All these things cannot be fairly attributed to free held gold. It should not be allowed & hopefully this will be righted soon enough.

Lastly naysayer's of PM's always like to point to a bad year. But that is not the reality nor are the prior decades going to be comparative to the reality that is quickly engulfing us. His name is B.S. Bernanke not coincidentally

[Abrak]

The fiat that is un-backed & uncontrolled not to mention the naked short selling of silver & gold that does not exist along with the paper gold trade that as you once said was leveraged what? 180x against what is physically available.

So lets see total physical gold supply US$4.3trn - 180x leveraged makes it US$800trn. Global money supply US$60trn, global stockmarket capitalization US$50trn. Seems about right.

[Abrak]

China will buy all the gold from the IMF and all the gold in the open market.

Yes that's plan. It is going to issue a gold backed yuan currency. All it has to do first is buy all existing gold holdings in the world at the current price. Then as it grows at 6% and gold supply grows at 2% it will face deflation even if it buys all mined resources. So to stop that it has to constantly upward revise the value of the yuan against gold appreciating its currency while everyone else is printing away and depreciating their's. Eventually they start exporting gold.

[flying]

China will buy all the gold from the IMF and all the gold in the open market.

Yes that's plan. It is going to issue a gold backed yuan currency.

I think not. China is buying for the same reason that others including the central banks do.

Seems most of the folks who joke about other countries purchasing gold either come from a country that was foolish & sold all their reserves at a silly low price or come from a country that holds tons if not the most in reserve than any other country ....odd that

Edited October 4, 2009 by flying

[flying]

The fiat that is un-backed & uncontrolled not to mention the naked short selling of silver & gold that does not exist along with the paper gold trade that as you once said was leveraged what? 180x against what is physically available.

So lets see total physical gold supply US$4.3trn - 180x leveraged makes it US$800trn. Global money supply US$60trn, global stockmarket capitalization US$50trn. Seems about right.

Are you saying there is physical gold for all the paper traded gold then?

Are things like this silver short a good fair market idea in your opinion?

currently, between Goldman Sachs and J.P. Morgan Chase, over 250 million ounces of silver are being sold short. This is silver that, not only do they not have (hence the term "naked short selling ") but is silver that doesn't even exist.

Edited October 4, 2009 by flying

[Abrak]

The fiat that is un-backed & uncontrolled not to mention the naked short selling of silver & gold that does not exist along with the paper gold trade that as you once said was leveraged what? 180x against what is physically available.

So lets see total physical gold supply US$4.3trn - 180x leveraged makes it US$800trn. Global money supply US$60trn, global stockmarket capitalization US$50trn. Seems about right.

Are you saying there is physical gold for all the paper traded gold then?

Are things like this silver short a good fair market idea in your opinion?

currently, between Goldman Sachs and J.P. Morgan Chase, over 250 million ounces of silver are being sold short. This is silver that, not only do they not have (hence the term "naked short selling ") but is silver that doesn't even exist.

No of course not but I bet paper gold isnt more than two times physical.

The situation in silver is a little strange at the moment. 250m ounces is 27% of global supply and J.P. Morgan (who inherited the position from Bear Stearns) as well as GS keep shorting more to avoid losses. One month they represented 90% of all shorts. Now if paper silver was 200x physical it all could be unwound but it simply isnt. Luckily we are only talking US$4bn here and JP Morgan will write it off as a pre-acquisition expense and GS will sack one of their more expensive traders to balance the books.

[flying]

No of course not but I bet paper gold isnt more than two times physical.

The situation in silver is a little strange at the moment. 250m ounces is 27% of global supply and J.P. Morgan (who inherited the position from Bear Stearns) as well as GS keep shorting more to avoid losses. One month they represented 90% of all shorts. Now if paper silver was 200x physical it all could be unwound but it simply isnt. Luckily we are only talking US$4bn here and JP Morgan will write it off as a pre-acquisition expense and GS will sack one of their more expensive traders to balance the books.

I find that hard to believe & know I have read much higher. I will see if I have the info. But when you consider Comex & all the various funds ETF's etc. I would imagine it much higher. But in any case it is fraud to sell/trade something that does not exist nor ever will IMO.

Take the simple silver example above. I dont care where it was inherited from I care that it is blatant manipulation & like I said hopefully will end soon enough.

Truth is I would think when Silver & gold are freed from these shenanigans it will seek its own true price level.

[Abrak]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

[flying]

Are you saying there is physical gold for all the paper traded gold then?

No of course not but I bet paper gold isnt more than two times physical.

Here is one I recently saw to which Badge answered 140x

Hennecke stressed that investors should go for physical forms of gold and other precious metals rather than "paper gold investment scheme where there isn't full backing, where the metal might be leased out or used for derivatives. That's crucial because there is 80 times more paper gold in the market than actual physical metal in existence in the planet."

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

[flying]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

That is the 13th time you posted that?

Does your computer have a glitch?

Anyway.................not too slowly

China Increases its Gold Reserves by 75% - April 2009

China quietly builds gold reserve, to over one thousand tonnes, or almost double, secretly, and from domestic production.

It has been widely reported this week, that China has built up its gold reserves, very quietly over the past six years, and has managed to do so quietly because it has bought up domestic mine production. It has for some time been rumored, and we ourselves have commented that it would be an obvious move for China to reduce its dollar reserve holdings, in favor of other, more dependable assets, particularly gold.

It turns out those inscrutable Chinese have been doing so all along.

[Naam]

China will buy all the gold from the IMF and all the gold in the open market.

Yes that's plan. It is going to issue a gold backed yuan currency. All it has to do first is buy all existing gold holdings in the world at the current price. Then as it grows at 6% and gold supply grows at 2% it will face deflation even if it buys all mined resources. So to stop that it has to constantly upward revise the value of the yuan against gold appreciating its currency while everyone else is printing away and depreciating their's. Eventually they start exporting gold.

[lannarebirth]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

That is the 13th time you posted that?

Does your computer have a glitch?

Anyway.................not too slowly

China Increases its Gold Reserves by 75% - April 2009

China quietly builds gold reserve, to over one thousand tonnes, or almost double, secretly, and from domestic production.

It has been widely reported this week, that China has built up its gold reserves, very quietly over the past six years, and has managed to do so quietly because it has bought up domestic mine production. It has for some time been rumored, and we ourselves have commented that it would be an obvious move for China to reduce its dollar reserve holdings, in favor of other, more dependable assets, particularly gold.

It turns out those inscrutable Chinese have been doing so all along.

OK, maybe I'm a little thick but is China reducing its dollar reserve holdings by buying Chinese Gold? It's buying with Yuan presumablly?

Maybe it's just another state run industry it's propping up.

[AlexLah]

those who bought gold in 1980, slowly sold their "preserved wealth" over the years with huge losses and starved to death eighteen years later are now happily lying in their graves as the thought "good as gold" gives them eternal peace.

23% up since my purchase last year September........

Very bad investment, my tomatoes grow at a much higher rate...

[Naam]

By the way I was reading a report written in 2004 in which it said 'meanwhile China is slowly accumulating gold'. 5 years later it just seems to be slowly accumulating gold..... very slowly.

That is the 13th time you posted that?

Does your computer have a glitch?

Anyway.................not too slowly

China Increases its Gold Reserves by 75% - April 2009

China quietly builds gold reserve, to over one thousand tonnes, or almost double, secretly, and from domestic production.

It has been widely reported this week, that China has built up its gold reserves, very quietly over the past six years, and has managed to do so quietly because it has bought up domestic mine production. It has for some time been rumored, and we ourselves have commented that it would be an obvious move for China to reduce its dollar reserve holdings, in favor of other, more dependable assets, particularly gold.

It turns out those inscrutable Chinese have been doing so all along.

OK, maybe I'm a little thick but is China reducing its dollar reserve holdings by buying Chinese Gold? It's buying with Yuan presumablly? Maybe it's just another state run industry it's propping up.

why do you spoil a nice goldbug wishful thinking fairy tale with ugly facts LRB? China is mining nowadays 300 tons of gold a year and production is steadily increasing. it is a well known fact that the chinese government has no business sense and therefore does not use domestic currency for buying a domestic product but uses foreign currency reserves instead.

[Naam]

those who bought gold in 1980, slowly sold their "preserved wealth" over the years with huge losses and starved to death eighteen years later are now happily lying in their graves as the thought "good as gold" gives them eternal peace.

23% up since my purchase last year September........ Very bad investment, my tomatoes grow at a much higher rate...

= irrelevant statement (as most of the times).