Where Is Gold Going In This Market

[flying]

All you they want you to know & more here & on the Data tab

http://www.imf.org/external/np/tre/sdr/sdrbasket.htm

http://www.imf.org/external/np/exr/facts/quotas.htm

So Flying I read it but didnt totally understand it.

As I see it I would be wrong in saying that the IMF can print SDRs. What they do is take a quota of second and third world currencies and in return either give them SDRs or access to SDRs. In other words it is a fancy way of operating the same old economy. SDRs are made up of mostly dollars and sterling but in stead of having US$ and sterling reserves (Ok there is yen and euro too) you now have a fancy new package called an SDR. It all still amounts to 2nd and 3rd world countries paying for 1st world deficits.

Yes in some ways I agree.

Which is why I was surprised in some ways by the deal to sell 200 ton of gold for SDR's

I am still not clear.

There is a lot of info on their site though & the history is interesting

http://www.imf.org/external/about/history.htm

Then again check out their gold holdings.............

http://www.imf.org/external/np/exr/facts/gold.htm

The IMF holds 103.4 million ounces (3,217 metric tons) of gold at designated depositories. The IMF's total gold holdings are valued on its balance sheet at SDR 5.9 billion (about $9.2 billion) on the basis of historical cost. As of August 28, 2009, the IMF's holdings amounted to $98.8 billion at current market prices.

Edited November 5, 2009 by flying

[AlexLah]

The conspiracy deepens..........

http://www.thaindian.com/newsportal/busine..._100220684.html

[flying]

The conspiracy deepens..........

http://www.thaindian.com/newsportal/busine..._100220684.html

See what I mean?

[AlexLah]

Yep berry berry strange...heh heh heh.

Have you checked the ECB website yet? Some interesting stuff on there as well regarding swaps and other things like Gold selling/buying.

look at press releases and some statistics, interesting...

Meh....

[flying]

The conspiracy deepens..........

http://www.thaindian.com/newsportal/busine..._100220684.html

See what I mean?

Actually I just glanced at that last night & now see it was dated July 2009

Not what I thought. That is actually an allocation or credit line available if needed.

When I glanced at it last night I thought it was a recent distibution

The SDR allocation will be made to IMF members in proportion to their existing quotas in the Fund, which are based broadly on their relative size in the global economy.

SDRs allocated to members will count toward their reserve assets, acting as a low cost liquidity buffer for low-income countries and emerging markets and reducing the need for excessive self-insurance, IMF said.

Edited November 5, 2009 by flying

[AlexLah]

It is all promises when needed, same with the credit swaps.

No real paper money is send.

Just contracts that promise when something goes wrong.

Book keeping stuff you know, zero out.

[sokal]

"Ben Keynes Bernanke is an economic criminal and a destroyer of wealth"- Marc Faber

First I was pointing out that Marc Faber actually recommends reading Keynes above all other economists. I have no idea where that quotation comes from but it really is hard to see Bernanke as a rabid Keynesian (Krugman perhaps).

Keynes said such things as....

"the best way to destroy the capitalist system [is] to debauch the currency." 1919

Very much a Bernanke solution.

And he is totally committed to reponsible fiscal policy and states so monthly. This is because he does not believe in a concept which Keynes called the 'liquidity trap' (1936 General Theory) whereby monetary policy is rendered useless at ZIRP.

Anyway strange comment from Faber but then he did think we would all be dead by swine flu by now.

At least now I know the underpinning of why you think Keynes is an ass.

I actually don't know allot about Keynes the person, I am just against the policy that happens to be named after him.

[Naam]

The conspiracy deepens..........

http://www.thaindian.com/newsportal/busine..._100220684.html

-some days ago, before sunrise, i saw two birds bathing at my pond's waterfall = conspiracy!

-the scale in the bathroom of the hotel i am presently staying shows 1½ kg more than mine at home = conspiracy!

-i watch aircrafts landing and taking off through a huge window but i don't hear any sound = conspiracy!

-in the breakfast room they ran out of plates, couldn't get my fried eggs = conspiracy!

[flying]

-some days ago, before sunrise, i saw two birds bathing at my pond's waterfall = conspiracy! = Kinky older guy peeping at birds bathing

-the scale in the bathroom of the hotel i am presently staying shows 1½ kg more than mine at home = conspiracy! = chubby guy in denial

-i watch aircrafts landing and taking off through a huge window but i don't hear any sound = conspiracy! = Black helicopters are the old news silent planes are common now.

-in the breakfast room they ran out of plates, couldn't get my fried eggs = conspiracy! = lucky break eggs will kill you

Hey gold is doing purdy good eh?

Edited November 7, 2009 by flying

[Naam]

Hey gold is doing purdy good eh?

WHO or WHAT is GOLD?

[flying]

Hey gold is doing purdy good eh?

WHO or WHAT is GOLD?

Gold is money

Also fun to build stuff with if you add silver & Platinum for contrast

Edited November 7, 2009 by flying

[sokal]

Hey gold is doing purdy good eh?

WHO or WHAT is GOLD?

"The golden age only comes to men when they have forgotten gold." - Gilbert K. Chesterton

[churchill]

The IMF think the $ is overvalued and now the FT thinks Gold is a one way bet

http://www.ft.com/cms/s/0/bf99d538-cb06-11...000e2511c8.html

I agree

BUT in the long term .

I still think markets need to readjust/correct unless there is manipulation we don't know about .

[sokal]

The IMF think the $ is overvalued and now the FT thinks Gold is a one way bet

http://www.ft.com/cms/s/0/bf99d538-cb06-11...000e2511c8.html

I agree

BUT in the long term .

I still think markets need to readjust/correct unless there is manipulation we don't know about .

If you are interested, you should listen to this interview of Pierre Lassond on King World News

If the central banks start buying then there is a chance that there will be no major pullback.

[flying]

Looks like gold is on a the move again tonight in Markets. $1105 +

This time looks like Silver is coming along for the ride too....hmmm

Edited November 9, 2009 by flying

[badge]

Mark Dice tries to sell a one ounce pure cold coin for $50...

[sokal]

Mark Dice tries to sell a one ounce pure cold coin for $50...

Gold bubble ? I don't think so

Maybe one of those guys was CaptainARK or Naam :D :D

[SNGLIFE]

Go gold, go!

[flying]

Gold Bars Selling Like Hotcakes at Harrods

Posted Nov 09, 2009 10:16am EST by Henry Blodget

From The Business Insider, Nov. 9, 2009:

Gold smashed through an all-time high of $1,100 an ounce on Friday, bringing some solace to gold bugs who have been losing money on the metal since the 1980s.

Gold still hasn't come anywhere near its late-1980's peak on an inflation-adjusted basis ($1,800 or so), belying the general theory that it's a great inflation hedge. As the world gold frenzy really takes hold, however, $2,000-an-ounce predictions are coming fast and furious, so there's always hope.

The NYT surveys the gold landscape, checking in on the ultimate symbol of the rush--the bars on sale at the counters of Harrods:

[L]ast month, Harrods, the 160-year-old London department store, began selling coins as well as gold bullion ranging from tiny 1-gram ingots to the hefty, 12.5-kilogram, 400-Troy-ounce bricks that are so often featured in movies and stocked inside the vaults of Fort Knox. Harrods’s lower ground floor, where the gold is peddled, has been packed with interested shoppers.

“The response has been astounding,” said Chris Hall, head of Harrods Gold Bullion. “Bars are definitely more popular than coins. The 100-gram is the most popular.”...

THE Harrods gold line is made by PAMP, a rival Swiss refiner down the road here from Argor-Heraeus, in the nearby town of Castel San Pietro. And demand for bars weighing 100 ounces or less for individual investors is up 80 percent, said Marwan Shakarchi, the chairman of MKS Finance, a Geneva company that owns PAMP. Read the whole thing >

One reason people are buying gold? You can hide it from tax authorities. Just buy a few 400-ounce bars from Harrods and store them in your Harrods safe-deposit box (230 pounds a year), and the bastards won't be knocking on your door demanding capital gains taxes. (Unless they get you when you sell the bars back to Harrods for cash).

[Naam]

Gold still hasn't come anywhere near its late-1980's peak on an inflation-adjusted basis ($1,800 or so), belying the general theory that it's a great inflation hedge. As the world gold frenzy really takes hold, however, $2,000-an-ounce predictions are coming fast and furious, so there's always hope.

inflation adjusted an ounce of gold should be $ 2,860 today (using U.S. inflation figures) and that means TWENTY-NINE long years not a freaking copper penny of yield but instead a HUGE loss. naturally the local goldbugs are in denial and (lying on their rubber sheets) keep on praying that sooner or later a Krüger Rand will buy a bakery... which is only a matter of numerous reincarnations

[flying]

Dont know but it appears to be doing what it does best...preserving wealth/buying power.

Hey its closing in on your buy target of $1120

Edited November 11, 2009 by flying

[AlexLah]

35 USD in 1934 has the same buying power as 564.10 in 2009.

In 1934 1 ounce of Gold was 35 USD.

In 2009 1 ounce of Gold is (as today) around 1100 USD.

[churchill]

"Gold leapt to around 29 million dong per tael on Wednesday, or $1,261 per troy ounce at an exchange rate of 19,000 dong per dollar."

Vietnam to allow gold imports to stabilise market

http://www.forbes.com/feeds/afx/2009/11/11/afx7109878.html

[khunjake]

$1330/oz.

unloading there...

[gregb]

inflation adjusted an ounce of gold should be $ 2,860 today (using U.S. inflation figures) and that means TWENTY-NINE long years not a freaking copper penny of yield but instead a HUGE loss. naturally the local goldbugs are in denial and (lying on their rubber sheets) keep on praying that sooner or later a Krüger Rand will buy a bakery... which is only a matter of numerous reincarnations

Well, all I can say is that based on this most recent rise, I just did some math and gold has netted me an average yield of 13.6% per year over the last 10 years in baht terms, beginning with my very first gold purchase for my wife in 1999. And I actually got 2 pre 1976 copper pennies last year too from change left behind when my friend visited from the states, so I guess I'm doing pretty good. You're right Naam. It's definitely a conspiracy. Somebody is trying very hard to make me wealthy. Little do they know they are going to have to try alot harder.

[sokal]

Gold still hasn't come anywhere near its late-1980's peak on an inflation-adjusted basis ($1,800 or so), belying the general theory that it's a great inflation hedge. As the world gold frenzy really takes hold, however, $2,000-an-ounce predictions are coming fast and furious, so there's always hope.

inflation adjusted an ounce of gold should be $ 2,860 today (using U.S. inflation figures) and that means TWENTY-NINE long years not a freaking copper penny of yield but instead a HUGE loss. naturally the local goldbugs are in denial and (lying on their rubber sheets) keep on praying that sooner or later a Krüger Rand will buy a bakery... which is only a matter of numerous reincarnations

[sokal]

$1330/oz.

unloading there...

I will be buying there. You can sell to me.

[Naam]

hmm... one Cadillac in 1971 / two cadillacs in 2009. although comparing these models doesn't make any sense let's use the given face value and a little maths. doubling the value over a period of 38 years = linear 2.632% per annum. the actual yield is of course much lower namely 1.14962% per annum.

next!

[flying]

namely 1.14962% per annum.

As always & in any stock,commodity,bond etc....I assume timing/premise is still important

But all that aside.... Dont know if you would be interested but it is a article dealing with gold/dollar/euro

Would be interested in your take on it....

This is part of a larger article but this is the Euro part.......

The rest can be read here

http://fofoa.blogspot.com/2009/11/new-global-reserve.html

Political Money, Political Gold

Today the ten-year-old Euro currency is not defined as any certain quantity of gold. Instead, it uses gold as a financial reserve so that each increase in the price of gold brings an increase in the Euro's reserves and thus an increase in the value of the Euro itself! This Freegold concept is closer to the tenets of Libertarianism than the gold standards of the past because of the gold exchange restrictions that always inevitably followed a gold standard.

Freegold is not a new currency. Instead, it is a completely sustainable exchange system between transactional fiat currency and gold, the wealth reserve par excellence!

On an individual level, the idea that your wealth is meant to be placed in harms way in order to earn a yield is a perpetual lie of the current inflationary system. Low risk yields cannot beat real inflation in the long run, and they often don't in the short run either. Your hard earned wealth was never meant to be risked. It only needs to be preserved!

We view the US dollar's value today through the window of the USDX, a relative comparison of the dollar with its most significant trading partners, primarily, the Euro. But imagine the situation of an exploding gold price combined with a terminal dollar. The ECB could easily use not only its dollar reserves to buy up spot gold, but it could also print Euros outright to buy any gold still offered for sale.

The dollar, on the other hand, must SELL gold if it hopes to slow its own collapse. So the dollar must sell gold to defend itself, while the Euro is free to BUY gold while defending itself from a systemic collapse!

Freegold will not compete with the Euro the way it will with the dollar. Freegold is not a competing currency to the Euro, but instead it is a wealth building asset within the Euro's monetary construct! As this transition unfolds, even the raw printing of Euros for gold, normally an inflationary event, can strengthen the Euro from within its golden asset base. Architecture! Planned, executed, now in use.

Edited November 11, 2009 by flying

[Naam]

"Today the ten-year-old Euro currency is not defined as any certain quantity of gold. Instead, it uses gold as a financial reserve so that each increase in the price of gold brings an increase in the Euro's reserves and thus an increase in the value of the Euro itself!"

= bull²