Where Is Gold Going In This Market

[Naam]

what about more video-clips for those who can't read them blockspotz? am i asking for too much?

[Naam]

This is not to imply that gold will replace the dollar. Rather, if the intended target is indeed the SDR, which comes up for rebalancing in 2010, banks may need to have gold on hand since it is thought to be favored as a component of the basket of currencies of which the new SDR will be created.

[Naam]

And now for something completely different,it appears that the world's central banks may once again become net buyers of gold, after a twenty year campaign of selling gold from their vaults into the public markets, creating a steady downward pressure on the price of gold, that contributed to its long bear market.

it appears to me, should a real cold wave hit Pattaya, people may think of ice skating, creating a downward pressure in Walking Street

[flying]

what about more video-clips for those who can't read them blockspotz? am i asking for too much?

http://naams-bullshit.blogspot.com/

That one has a good video

[sokal]

And now for something completely different,it appears that the world's central banks may once again become net buyers of gold, after a twenty year campaign of selling gold from their vaults into the public markets, creating a steady downward pressure on the price of gold, that contributed to its long bear market.

it appears to me, should a real cold wave hit Pattaya, people may think of ice skating, creating a downward pressure in Walking Street

That must be an old quote because some central banks are already net buyers.

[Abrak]

The and the economies in Britain and the US where powerhouses during the gold standard. There is no good reason for inflation targeting.

It is all a bit before my time but I always thought this gold standard thing was a bit of a fraud.

Yes the UK was the reserve currency based on gold (although I think they did a neat switch from silver).

But the basic idea was the link to gold gave them discipline. In fact the result of being a reserve currency is

that it gives you a large incentive to act irresponsibly until you leave the standard and leave creditors with large

losses (when one of them is the French as in sterling's case you really have a good laugh). And

all the US has done is do the same - get awarded the gold standard reserve currency responsibility award -

and abuse it ever since, leaving the gold standard and having a dollar block instead of a sterling block.

[flying]

[Naam]

And now for something completely different,it appears that the world's central banks may once again become net buyers of gold, after a twenty year campaign of selling gold from their vaults into the public markets, creating a steady downward pressure on the price of gold, that contributed to its long bear market.

it appears to me, should a real cold wave hit Pattaya, people may think of ice skating, creating a downward pressure in Walking Street

That must be an old quote because some central banks are already net buyers.

the quote is from the same day as my posting 21. october 2009 !

http://jessescrossroadscafe.blogspot.com/2...hases-from.html

[churchill]

Russia now selling gold !

Russia to sell 20-50 T gold in 2009 - source

http://www.forbes.com/feeds/reuters/2009/1...A-UPDATE-3.html

[flying]

Gold’s New Ally

10/24/09 Baltimore, Maryland – If you’ve invested in gold, you’re about to gain a powerful ally: pension funds.

“I think the largest institutions like our own are realizing that we barely own any [gold]” Shayne McGuire, head of the Teacher Retirement System of Texas said in an interview in Hong Kong very early this morning. “The same thing applies to most of the pension funds which manage trillions of dollars in world wealth.”

McGuire, who oversees $95 billion, just opened an internally managed gold fund for his 1.3 million public education employees, and suggests other pension funds follow suit. Owning gold is “financial insurance,” he said, sounding a lot like David Einhorn at the Value Investing Congress earlier this week. “Consider the tremendous fiscal excess that major governments have made to prevent the world economy from collapsing… I don’t think the question really is what is gold worth but what are currencies not worth.”

According to the FT, there are 2,600 public pension plans in the U.S., worth over $2 trillion.

“If we believe we’re in a secular bear market or entering a world of hyper-inflation and debased fiat currencies,” Eric Sprott, fund chief at Sprott Hedge Fund LP, added. “There’s no better place to be than gold and precious metals. I find it quite instructive that the price of gold has gone up every year for the past nine years, since the bear market started. That’s not a coincidence, and we think the full cycle could easily reach 15-20 years.

“There is a survivalist aspect to having such a big stake in tangible assets. As long as governments show such low regard for policies that support the real value of paper financial assets, investing in precious metals is about the only way to guarantee the preservation of your wealth.”

“Sprott is our kind of guy,” notes Addison Wiggin, fresh back from the Congress himself. “His $4.2 billion hedge fund is long 30% in silver bullion, 15% in gold bullion, 30% in gold stocks, 10% in energy, 5% in miscellaneous stocks and 10% in cash. Suspicious of equities going back to the tech bust, Sprott played what we had termed ‘The Trade of the Decade’ like an impresario…”

Now, after nearly 10 years, “bargains are harder to find today,” Sprott continued, “but we’re still finding small gold miners that appear to have slipped through the market’s cracks and trade — based on what we believe are reasonable production estimates and no increase in the price of gold — at only around five times estimated 2011 earnings. When we find those, we’ll buy them all day long.”

[sokal]

Interesting clip. How do you attach Youtube videos ?

[sokal]

Russia now selling gold !

Russia to sell 20-50 T gold in 2009 - source

http://www.forbes.com/feeds/reuters/2009/1...A-UPDATE-3.html

If you read the article you will see that the idea to sell gold to cover the deficit was not proposed by the central bank. The central bank is buying gold. Seems to be a miscommunication between the government and the central bank.

[flying]

Interesting clip. How do you attach Youtube videos ?

When you hit reply to that video you saw....Take a look again & you will see how I did it.

Basically you bracket [ ] youtube

Then add the video number...which in the case of that

you tube video was.....CBi9iLspoRc

Then like all quotes you end again with brackets [ ] surrounding a forward slashed youtube .... ie: /youtube

Edited October 24, 2009 by flying

[Naam]

Russia now selling gold !

Russia to sell 20-50 T gold in 2009 - source

http://www.forbes.com/feeds/reuters/2009/1...A-UPDATE-3.html

If you read the article you will see that the idea to sell gold to cover the deficit was not proposed by the central bank. The central bank is buying gold. Seems to be a miscommunication between the government and the central bank.

without any doubt! it is a well known fact that Russia's government has no influence, does not communicate and has no bloody idea what the intentions of its central bank are.

[sokal]

Russia now selling gold !

Russia to sell 20-50 T gold in 2009 - source

http://www.forbes.com/feeds/reuters/2009/1...A-UPDATE-3.html

If you read the article you will see that the idea to sell gold to cover the deficit was not proposed by the central bank. The central bank is buying gold. Seems to be a miscommunication between the government and the central bank.

without any doubt! it is a well known fact that Russia's government has no influence, does not communicate and has no bloody idea what the intentions of its central bank are.

From the article.....

But some traders said they were sceptical of the bullion sale plans as the Russian central bank had increased stocks of gold as part of its international reserves by 14 percent in the last nine months to 19 million ounces.

"Why would they accommodate the international market when their own central bank is trying to buy gold?" said Afshin Nabavi, head of trading at MKS Finance in Geneva.

"I don't think the central bank would allow it to go into the international market," said Nabavi.

[flying]

The cataclysm awaiting gold is just disclosure

[cloudhopper]

Why would anyone ever announce to the world that they were really going to buy or sell a significant amount of anything since it would always unfavorably influence their price...

[sokal]

The cataclysm awaiting gold is just disclosure

Good article.

Even though I could pay cash, I am thinking about borrowing 40 grand to buy some bullion. I see limited downside at this point. I could even handle a temporary slide down to 800.

[flying]

Good article.

Even though I could pay cash, I am thinking about borrowing 40 grand to buy some bullion. I see limited downside at this point. I could even handle a temporary slide down to 800.

If I was looking to buy I think this is a nice pullback to do so in both Gold & Silver.

[Naam]

Why would anyone ever announce to the world that they were really going to buy or sell a significant amount of anything since it would always unfavorably influence their price...

because some wet dreamers hope so.

disclaimer: i think gold will go to 33,000 dollars/ounce before Christmas!

[churchill]

Media Leak Delays Russia Gold Sale

http://online.wsj.com/article/SB125665029613110203.html

[flying]

Media Leak Delays Russia Gold Sale

http://online.wsj.com/article/SB125665029613110203.html

Interesting but in the bigger picture I think 50 tons would have little if any impact on the market.

[churchill]

I think it's about confidence and markets may turn on their heads - with stocks down and $ up - short term .

Oct 26Contrarians Denninger, Dent, Faber and Hoye Looking for Dollar Rebound

The dollar has been decimated over the last six months as investors have piled into global stock markets. In hindsight, the risk seems to have been worth it, with stock markets in the US, China and Europe exceeding gains of 50% since the March 2009 lows. There has been much talk of correction or crash since stocks began to rise, to no avail. Markets, regardless of forward looking economic fundamentals, have continued to edge up.

In March 2009, the daily sentiment index showed there were 2% bulls. Today, we have the opposite extreme, with a 90% investor bullishness. As the dollar collapsed during the stock market rally, sentiment has also swung to the opposite extreme. Dollar bulls are few and far between, as indicated by the 95% bearish sentiment as of late September.

While it seems that most market participants are looking for a continued rise in stock prices and deterioration of the US Dollar in the near-term, leading contrarian investors like Karl Denninger, Marc Faber, Bob Hoye and Harry Dent have a different take.

http://www.shtfplan.com/headline-news/cont...ebound_10262009

[churchill]

The Next Step in the Bank Implosion Cycle

http://seekingalpha.com/article/169396-the...implosion-cycle

[sokal]

Media Leak Delays Russia Gold Sale

http://online.wsj.com/article/SB125665029613110203.html

Interesting but in the bigger picture I think 50 tons would have little if any impact on the market.

The announcement of the IMF gold sales made prices go up so it would not surprise me if we get the same result.

[churchill]

Gold Blast-Off Starts Friday?

I hope not quite yet as I have not reinvested .

http://www.numismaster.com/ta/numis/Articl...;ArticleId=8134

[flying]

Gold Blast-Off Starts Friday?

I hope not quite yet as I have not reinvested .

http://www.numismaster.com/ta/numis/Articl...;ArticleId=8134

Looks like it is starting Thursday here

I said a day ago it was a good pullback & thought we may see 1020 Gold & 16 Silver

[OlRedEyes]

Whatever happened to confident predictions a year ago of gold below $700 soon (a year ago).

Tired of crashes? Don't have insider info? Here's today's tip:

Buy 19. Shaping up for a great run.

I'll take a 10% commission thanks

[sokal]

Gold decoupled from all other asset classes on friday. finished up on the day, same with a few mining stocks.

[flying]

Paul Tudor Jones II (born September 28, 1954, Memphis Tennessee ) is a well-known hedge fund manager. Having made $750 million in 2006, he is worth an estimated $3.3 billion, and was ranked by Forbes in March 2007 as the 369th richest person in the world.

His third quarter letter which talks about gold and why he feels its undervalued by 20% from this level.

Must read is third paragraph of page 10 and most important page 14-23.

http://www.scribd.com/doc/21753600/Tudor-T...-Quarter-Letter

Edited November 2, 2009 by flying