Where Is Gold Going In This Market

[Naam]

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

blogspot =

[flying]

blogspot =

Sorry forgot about your disdain for blogs

I have no knowledge regarding what backs the Euro currency & figured you might.

Was just curious

Edited November 11, 2009 by flying

[sokal]

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!

that example has to do with the purchasing power of a currency, nothing else.

but if you insist on fiat then you are stuck with one of these..

[sokal]

"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

PRESS RELEASE

7 August 2009 - Joint Statement on Gold

European Central Bank

Nationale Bank van België/Banque Nationale de Belgique

Deutsche Bundesbank

Central Bank and Financial Services Authority of Ireland

Bank of Greece

Banco de España

Banque de France

Banca d’Italia

Central Bank of Cyprus

Banque centrale du Luxembourg

Bank Ċentrali ta’ Malta/Central Bank of Malta

De Nederlandsche Bank

Oesterreichische Nationalbank

Banco de Portugal

Banka Slovenije

Národná banka Slovenska

Suomen Pankki – Finlands Bank

Sveriges Riksbank

Swiss National Bank

In the interest of clarifying their intentions with respect to their gold holdings the undersigned institutions make the following statement:

1. Gold remains an important element of global monetary reserves.

2. The gold sales already decided and to be decided by the undersigned institutions will be achieved through a concerted programme of sales over a period of five years, starting on

27 September 2009, immediately after the end of the previous agreement. Annual sales will not exceed 400 tonnes and total sales over this period will not exceed 2,000 tonnes.

3. The signatories recognize the intention of the IMF to sell 403 tonnes of gold and noted that such sales can be accommodated within the above ceilings.

4. This agreement will be reviewed after five years.

European Central Bank

Directorate Communications

Press and Information Division

Kaiserstrasse 29, D-60311 Frankfurt am Main

Tel.: +49 69 1344 7455, Fax: +49 69 1344 7404

Internet: http://www.ecb.europa.eu

[Naam]

The gold sales already decided and to be decided by the undersigned institutions will be achieved through a concerted programme of sales over a period of five years, starting on 27 September 2009, immediately after the end of the previous agreement. Annual sales will not exceed 400 tonnes and total sales over this period will not exceed 2,000 tonnes.

all said, nothing to add.

[sokal]

The gold sales already decided and to be decided by the undersigned institutions will be achieved through a concerted programme of sales over a period of five years, starting on 27 September 2009, immediately after the end of the previous agreement. Annual sales will not exceed 400 tonnes and total sales over this period will not exceed 2,000 tonnes.

all said, nothing to add.

ECB Press release

Joint Statement on Gold

8 March 2004

European Central Bank

"Annual sales will not exceed 500 tons and total sales over this period will not exceed 2,500 tons."

PRESS RELEASE

7 August 2009 - Joint Statement on Gold

European Central Bank

"Annual sales will not exceed 400 tonnes and total sales over this period will not exceed 2,000 tonnes."

[flying]

PRESS RELEASE

7 August 2009 - Joint Statement on Gold

European Central Bank

---snipped to save space----

Thanks I thought I remember recently seeing the ECB's financial statement & how gold remained on their 1st line of assets. Also remember seeing the high percentage it had grown in value.

Edited November 12, 2009 by flying

[badge]

Col. Namm, there is no point trying to tame the wild fever of Gold bugs now that its the 'final' bubble of our time, having only just broken to a new high, whilst other assets' bubbles have broken and collapsed already, within the last 10yrs.

Gold is devoid of practical use. Its role in financial markets is levered up against physical to such an extent it could only possibly end up one way.

As with owners of Tulips in the 17thC, stockholders of the South Sea company in the 18thC, Railways in the 19thC and Japanese, Real Estate or Dot-Com in the 20thC, theres no reasoning with the holders of any mania, infact to do so is an admission of plain faced ignorance, apparently.

Yet every bubble pops, and it should be fitting that as testimony to the largest financial collapse, amidst the largest economic crisis, the world has ever seen, the 'old worlds' favourite 'store of wealth' should be the final bubble to pop.

Its human nature, fallible and flawed

[Naam]

Sokal, your irrelevant bla-bla does not change the fact that the ECB is planning to SELL gold. it's a matter of principle and not a matter of how many thousands of tons. case closed!

not closed is the case that the target for me buying gold is getting closer and closer inspite of a "stable" USD vs. EUR @ ~1.50 and a rather weak Dollar vs. Baht.

[soundman]

Off topic post removed.

[flying]

not closed is the case that the target for me buying gold is getting closer and closer inspite of a "stable" USD

How many of those stable USD do you hold?

I think your target is calling

11/12/2009 1120.50

Edited November 12, 2009 by flying

[jazzbo]

Personally, for all I know, the Goldies may be totally right. I just wonder, if one has chosen to fight the "Full Scale War" that GN has proclaimed, they they have chosen to fight it in this backwater. ... like Mister Roberts (Henry Fonda) seeing ships heading to the Battle of Midway when he is stuck on a supply ship delivering" toothpaste and toilet paper."

As for Fiat -- it is very real to me living here in Thailand:

I take some of my Fiat US Dollars and exhange them into Fiat Baht; then I take that Fiat Baht and give it to some delectable young Thai girl 30 years or so my junior and she drops all her clothes and moves in for the kill...

and if that ain't REAL to you -- as William Shatner said on SNL to the Trekkies -- Get A Life.

[sokal]

Col. Namm, there is no point trying to tame the wild fever of Gold bugs now that its the 'final' bubble of our time, having only just broken to a new high, whilst other assets' bubbles have broken and collapsed already, within the last 10yrs.

Gold is devoid of practical use. Its role in financial markets is levered up against physical to such an extent it could only possibly end up one way.

As with owners of Tulips in the 17thC, stockholders of the South Sea company in the 18thC, Railways in the 19thC and Japanese, Real Estate or Dot-Com in the 20thC, theres no reasoning with the holders of any mania, infact to do so is an admission of plain faced ignorance, apparently.

Yet every bubble pops, and it should be fitting that as testimony to the largest financial collapse, amidst the largest economic crisis, the world has ever seen, the 'old worlds' favourite 'store of wealth' should be the final bubble to pop.

Its human nature, fallible and flawed

You did not lose any purchasing power of your money by not participating in all the bubbles you mentioned above.

Bernanke is creating a bubble in fiat money, that is the bubble and when that fiat bubble bursts you get hyperinflation. You are in the bubble without even knowing it.

Poor sheeple, just when they thought they had this bubble thing figured out

Edited November 12, 2009 by sokal

[jazzbo]

Sheeple... Defective carbon units... Suckers... You don't understand... But I guess in a "Full Scale War" you use whatever you have.

In Oklahoma City there used to be (and maybe still are) bumper stickers saying "God Said It; I Believe It; And That Settles It".... should work for you Gary North guys, too.

[Lost in LOS]

I only understand "street economics" I could never argue economics with the likes of Naam - Flying - Sokal etc. I only know one thing for "sure" and that is......... I own lots of gold and its up 28% which makes me a happy camper and I think it is going up to 2,000 by mid next year. Will it? Who knows, but I am not selling for a while. I do doubt it will go below what I paid for it so whatever I get will be profit and it looks so pretty.

[flying]

I only understand "street economics" I could never argue economics with the likes of Naam - Flying - Sokal etc. I only know one thing for "sure" and that is......... I own lots of gold and its up 28% which makes me a happy camper and I think it is going up to 2,000 by mid next year. Will it? Who knows, but I am not selling for a while. I do doubt it will go below what I paid for it so whatever I get will be profit and it looks so pretty.

Those are some nice coins & Pamp LOS

You have me confused with another I think

I have no knack for economics & am just a street person like you.

We must have entered at the same time into the Gold market as I am up 30% also

Surprisingly I am up 45% on the Silver side of things

Edited November 12, 2009 by flying

[jazzbo]

Kuhn LostInLOS -- Sometimes 'street economics' is pure wisdom.... a real street person would think Gary North is some hockey goalie and the Austrian School a place to learn pastries.

[flying]

Good Article from the Bear Bob Janjua the chief market strategist at the Royal Bank of Scotland

http://articles.moneycentral.msn.com/Inves...s-to-watch.aspx

[badge]

Col. Namm, there is no point trying to tame the wild fever of Gold bugs now that its the 'final' bubble of our time, having only just broken to a new high, whilst other assets' bubbles have broken and collapsed already, within the last 10yrs.

Gold is devoid of practical use. Its role in financial markets is levered up against physical to such an extent it could only possibly end up one way.

As with owners of Tulips in the 17thC, stockholders of the South Sea company in the 18thC, Railways in the 19thC and Japanese, Real Estate or Dot-Com in the 20thC, theres no reasoning with the holders of any mania, infact to do so is an admission of plain faced ignorance, apparently.

Yet every bubble pops, and it should be fitting that as testimony to the largest financial collapse, amidst the largest economic crisis, the world has ever seen, the 'old worlds' favourite 'store of wealth' should be the final bubble to pop.

Its human nature, fallible and flawed

You did not lose any purchasing power of your money by not participating in all the bubbles you mentioned above.

Bernanke is creating a bubble in fiat money, that is the bubble and when that fiat bubble bursts you get hyperinflation. You are in the bubble without even knowing it.

Poor sheeple, just when they thought they had this bubble thing figured out

Theres a certain irony in your response

However, you've tried that arguement before Sokal.

Unfortunately, there isnt any inflation, let alone hyperinflation.

Sadly we'll have to wait a while to conclude this.

Regards,

John Law

[jazzbo]

Bear Bob Janjua of RBS ... ever hear the expression "cherry picking"... one could cherry-pick the contrary as in Dow Retakes 10000 on Bullish Data, Cisco (5NOV2009)

[Naam]

Bear Bob Janjua of RBS ... ever hear the expression "cherry picking"... one could cherry-pick the contrary as in Dow Retakes 10000 on Bullish Data, Cisco (5NOV2009)

it has been a long time since i pricked a cherry

[Naam]

not closed is the case that the target for me buying gold is getting closer and closer inspite of a "stable" USD

How many of those stable USD do you hold? I think your target is calling

11/12/2009 1120.50

standard practice is when my wife and me are travelling each of us carries 2,000 dollars and 2,000 euros in cash. i also still maintain a bank account in the Greatest Nation on Earth™ with a balance of approximately 2 or perhaps 3k. these are all the dollars i hold presently. only a couple years ago USD share was >65% of my portfolio but i was getting tired doing continously forward trades selling $ vs. € as a hedge even though it paid handsomely.

i am very much tempted to have USD denominated assets again because there is no other currency which provides that huge range of investment possibilities. but you are right, my gold buying target is indeed not too far away and i will bite the bullet if and when the time has come.

[Abrak]

Those are some nice coins & Pamp LOS

You have me confused with another I think

I have no knack for economics & am just a street person like you.

We must have entered at the same time into the Gold market as I am up 30% also

Surprisingly I am up 45% on the Silver side of things

Although, have you noticed Flying, that silver seems to have stopped its continual outperformance of gold over the last six weeks also?

[teletiger]

This should help things along. Barrick has said it will close it's 3 million oz short over the next 12 months. Hmmm.

http://www.telegraph.co.uk/finance/newsbys...y-runs-out.html

Regards.

[teletiger]

"Gold Price Won’t Drop Below $1,000 an Ounce Again, Faber Says"

http://www.bloomberg.com/apps/news?pid=206...id=az6qQ8ZuXg9M

Regards.

[badge]

"Gold Price Won't Drop Below $1,000 an Ounce Again, Faber Says"

http://www.bloomberg.com/apps/news?pid=206...id=az6qQ8ZuXg9M

Regards.

Echoes of T.Boone Pickens(a far more seasoned professional in their applicable fields) stating that Oil will never trade below $50 again, 6 months prior to its All Time High, and subsequent bust

[flying]

Although, have you noticed Flying, that silver seems to have stopped its continual outperformance of gold over the last six weeks also?

Yes Abrak I have.

Although it has its moments I would have expected it to

break 18 & continue on.

[flying]

Martin Armstrong's latest on Gold

http://www.scribd.com/doc/22417671/GOLD-5000-11-11-09

Some interesting thoughts on Debt, Inflation, Govt etc....

Edited November 12, 2009 by flying

[Lost in LOS]

Kuhn LostInLOS -- Sometimes 'street economics' is pure wisdom.... a real street person would think Gary North is some hockey goalie and the Austrian School a place to learn pastries.

you mean thats not true ?

[flying]

Pretty funny if true

Also a good reason to remember the old adage

You dont own it if you dont hold it

http://www.marketoracle.co.uk/Article14996.html