Where Is Gold Going In This Market

[Naam]

Only "Naam" is able to quote from articles he has not read !

only "Churchill" cannot read that Naam wrote: "when will you stop reading the rubbish which the doom&gloom clowns of "marketoracle" publish?"

[churchill]

Churchill,

when will you stop reading the rubbish which the doom&gloom clowns of "marketoracle" publish? may i remind you of one of their latest nonsense (posted by you) that the Dollar will be devalued as of today. will you never learn?

I can read what you quoted as saying came from a "marketoracle" article , but of course you don't read that rubbish / and if you did read it I am sure that they never said "the Dollar will be devalued as of today" or did they ?

[churchill]

"An apparent rush by members of the Burmese junta and their families to buy gold is being named as the cause of a sudden rise in the price of the precious metal in Burma"

http://www.irrawaddy.org/highlight.php?art_id=17534

[sokal]

"An apparent rush by members of the Burmese junta and their families to buy gold is being named as the cause of a sudden rise in the price of the precious metal in Burma"

http://www.irrawaddy.org/highlight.php?art_id=17534

Good reporting Churchill.

[churchill]

With the employment data coming out tonight and $ up or down ?

Gold Trading and the US Dollar

http://www.stonecoldcash.com/gold-trading-and-the-us-dollar/

[flying]

What is going on with Gold & Silver in Euro/Asia markets today?

GOLD---01/10/2010 ---19:09---1153.70 ---1155.70 --- +16.00--- +1.41%

SILVER-- 01/10/2010---19:09 --- 18.70--- 18.73 --+0.22 -- +1.19%

Edited January 11, 2010 by flying

[churchill]

$ weakness ? mid East tensions ? or??

or Iran can be bombed says General Petraeus http://www.telegraph.co.uk/news/worldnews/...l-Petraeus.html

[flying]

Iran can be bombed says General Petraeus http://www.telegraph.co.uk/news/worldnews/...l-Petraeus.html

Boy sounds familiar doesn't it?

[Bizz]

it's been said before but here it is again hunter gad'er'ers

Gold is unlike any other commodity. It is costly to extract from the earth and to refine to a reasonable degree of purity. It is costly to store. It has no remaining uses as a producer good - equivalent or superior alternatives exist for all its industrial uses. It may have some value as a consumer good - somewhat surprisingly people like to attach it to their earlobes or nostrils or to hang it around their necks. I have always considered it a rather vulgar metal, made for the Saturday Night Fever crowd, all shiny and in-your-face, as opposed to the much classier silver, but de gustibus… .

The total stock of ‘above-ground’ gold is about 160,000 metric tonnes (a metric ton is 2,204 lbs. or 35,264 oz, for those of a non-decimal mind-set). About 50 percent of this existing stock of above-ground gold is kept as a pure store of value (for investment purposes), most likely somewhere below-ground, for security reasons. The other 50 percent exists as jewellery. I would argue that most of this jewellery demand is simply small-scale store of value (investment) demand by households, rather than demand driven by aesthetic considerations or other intrinsic sources of joy associated with having gold hanging from your extremities.

worth a look

[Lost in LOS]

I am holding on to mine, could have sold at 1200 as I originally told Naam I was considering doing when it was below 1100, but decided against it. I doubt it will ever see 1k again and my new goal to sell half is 1500........

the US will be passing the health bill and put us in deep deep do-do. It wont fix it but the democrats want to pass something just to say they did, good or bad, and most agree it is bad. America's credit card is maxed out now and we have a foot in the economic grave and this health bill will push us in. Can we climb out, probably, but not for a long time and we will get very dirty climbing out.

Although not the center of the universe, when America's debt gets uncontrollable [close now] it will affect the whole world and I will still have my gold

[cloudhopper]

I am holding on to mine, could have sold at 1200 as I originally told Naam I was considering doing when it was below 1100, but decided against it. I doubt it will ever see 1k again and my new goal to sell half is 1500........

Although not the center of the universe, when America's debt gets uncontrollable [close now] it will affect the whole world and I will still have my gold

The half you didn't sell at 1500 anyway. If a global monetary crisis gets "uncontrollable" no target price makes sense. IMO gold is an insurance policy, not an investment.

[flying]

I have no intention of selling anything

Well actually I would probably sell if gold & the DOW reached a parity of 1/1

In fact even with the new higher prices if it hits a low at the end of the month I may back the truck up one more time.

I am still not comfortable with what I hold in USD & gold/silver is really my only viable option

[Abrak]

"An apparent rush by members of the Burmese junta and their families to buy gold is being named as the cause of a sudden rise in the price of the precious metal in Burma"

http://www.irrawaddy.org/highlight.php?art_id=17534

Good reporting Churchill.

Dont you think that the article is rather imaginative?

I mean it reports that the local domestic price for gold rose 1.4% from US$594 a tical (great name that by the way) to US$602 a tical between December 29th and January 5th. During that time the global price increased almost 2% from US$1107 an ounce to US$1130 an ounce (the kyat:US$ rate remained unchanged).

Obviously the Burmese are massively poor but I doubt that they even believe that it is a rush of buying by Burmese that is causing the global gold price to rise especially with such transactions as...

A Rangoon dealer said one family had bought 3 vis (nearly 5 kilograms) of gold at his shop on Dec. 31.

[Abrak]

BTW as a curious adjunct about what that article is really about....

1) The civil servants salary increase amounts to US$3070/per month at the current official exchange rate.

2) The Burmese Kyat has been the world's best performing currency (I believe) over the last two months based on the blackmarket rate - it is up nearly 20% against the dollar.

3) Based on the official rate I believe that Burma has the 7th largest M0 money supply in the world

4) The largest denomination Kyat note is worth US$5 on the blackmarket (introduced last September).

This is not official currency....

[churchill]

Iran can be bombed says General Petraeus http://www.telegraph.co.uk/news/worldnews/...l-Petraeus.html

Boy sounds familiar doesn't it?

Ongoing - rising tension Israel and US behind Tehran blast - Iranian state media http://news.bbc.co.uk/2/hi/middle_east/8453401.stm

[flying]

Iran can be bombed says General Petraeus http://www.telegraph.co.uk/news/worldnews/...l-Petraeus.html

Boy sounds familiar doesn't it?

Ongoing - rising tension Israel and US behind Tehran blast - Iranian state media http://news.bbc.co.uk/2/hi/middle_east/8453401.stm

Didn't take long did it?

With the added incentive of claimed nuke development

http://www.arabianbusiness.com/568241-tehr...dollar-for-euro

[Naam]

I am holding on to mine, could have sold at 1200 as I originally told Naam I was considering doing when it was below 1100, but decided against it. I doubt it will ever see 1k again and my new goal to sell half is 1500........

the US will be passing the health bill and put us in deep deep do-do. It wont fix it but the democrats want to pass something just to say they did, good or bad, and most agree it is bad. America's credit card is maxed out now and we have a foot in the economic grave and this health bill will push us in. Can we climb out, probably, but not for a long time and we will get very dirty climbing out.

Although not the center of the universe, when America's debt gets uncontrollable [close now] it will affect the whole world and I will still have my gold

and what will you do with your gold if/when America's debt gets uncontrollable? sell it and share your profit with the IRS? pray that Obama doesn't confiscate it in exchange for colourful printed paper to finance health care?

[Lost in LOS]

I am holding on to mine, could have sold at 1200 as I originally told Naam I was considering doing when it was below 1100, but decided against it. I doubt it will ever see 1k again and my new goal to sell half is 1500........

the US will be passing the health bill and put us in deep deep do-do. It wont fix it but the democrats want to pass something just to say they did, good or bad, and most agree it is bad. America's credit card is maxed out now and we have a foot in the economic grave and this health bill will push us in. Can we climb out, probably, but not for a long time and we will get very dirty climbing out.

Although not the center of the universe, when America's debt gets uncontrollable [close now] it will affect the whole world and I will still have my gold

and what will you do with your gold if/when America's debt gets uncontrollable? sell it and share your profit with the IRS? pray that Obama doesn't confiscate it in exchange for colourful printed paper to finance health care?

yep, you are right, that is the only thing I am worried about with my gold is Obama claiming it for pretty paper. I need to move it out of the states but that is not an easy option

you can quote me on this. within the next 4 months the Iran crisis will explode [most likely literately] and gold will skyrocket. then i will sell and pay the tax. Depending on what is happening I can buy it somewhere else. America is imploding and not the place I grew up in anymore.

We have the date so you can refer back to it.

[sokal]

I am holding on to mine, could have sold at 1200 as I originally told Naam I was considering doing when it was below 1100, but decided against it. I doubt it will ever see 1k again and my new goal to sell half is 1500........

the US will be passing the health bill and put us in deep deep do-do. It wont fix it but the democrats want to pass something just to say they did, good or bad, and most agree it is bad. America's credit card is maxed out now and we have a foot in the economic grave and this health bill will push us in. Can we climb out, probably, but not for a long time and we will get very dirty climbing out.

Although not the center of the universe, when America's debt gets uncontrollable [close now] it will affect the whole world and I will still have my gold

and what will you do with your gold if/when America's debt gets uncontrollable? sell it and share your profit with the IRS? pray that Obama doesn't confiscate it in exchange for colourful printed paper to finance health care?

yep, you are right, that is the only thing I am worried about with my gold is Obama claiming it for pretty paper. I need to move it out of the states but that is not an easy option

you can quote me on this. within the next 4 months the Iran crisis will explode [most likely literately] and gold will skyrocket. then i will sell and pay the tax. Depending on what is happening I can buy it somewhere else. America is imploding and not the place I grew up in anymore.

We have the date so you can refer back to it.

You should not pay any tax on the rise in gold. You did not make a profit, you just avoided a loss. Take the government to court.

[Naam]

I am holding on to mine, could have sold at 1200 as I originally told Naam I was considering doing when it was below 1100, but decided against it. I doubt it will ever see 1k again and my new goal to sell half is 1500........

the US will be passing the health bill and put us in deep deep do-do. It wont fix it but the democrats want to pass something just to say they did, good or bad, and most agree it is bad. America's credit card is maxed out now and we have a foot in the economic grave and this health bill will push us in. Can we climb out, probably, but not for a long time and we will get very dirty climbing out.

Although not the center of the universe, when America's debt gets uncontrollable [close now] it will affect the whole world and I will still have my gold

and what will you do with your gold if/when America's debt gets uncontrollable? sell it and share your profit with the IRS? pray that Obama doesn't confiscate it in exchange for colourful printed paper to finance health care?

yep, you are right, that is the only thing I am worried about with my gold is Obama claiming it for pretty paper. I need to move it out of the states but that is not an easy option

you can quote me on this. within the next 4 months the Iran crisis will explode [most likely literately] and gold will skyrocket. then i will sell and pay the tax. Depending on what is happening I can buy it somewhere else. America is imploding and not the place I grew up in anymore.

We have the date so you can refer back to it.

YAWWWWNNNN.... i hear that story now since several years from a multitude of different sides and sources

[Naam]

yep, you are right, that is the only thing I am worried about with my gold is Obama claiming it for pretty paper. I need to move it out of the states but that is not an easy option.

but it can be done.

[Naam]

You should not pay any tax on the rise in gold. You did not make a profit, you just avoided a loss. Take the government to court.

you can't take the Federal Government of the Greatest Nation on Earth™ to court unless this Federal Government agrees to be taken to court. little ignorant canadian boys are not aware of these tiny pitfalls but keep on spreading nonsense.

[flying]

yep, you are right, that is the only thing I am worried about with my gold is Obama claiming it for pretty paper. I need to move it out of the states but that is not an easy option

you can quote me on this. within the next 4 months the Iran crisis will explode [most likely literately] and gold will skyrocket. then i will sell and pay the tax. Depending on what is happening I can buy it somewhere else. America is imploding and not the place I grew up in anymore.

We have the date so you can refer back to it.

I do not think that is possible.

Back in 1933 when FDR called in the gold it was legal tender & they were calling in their money.

It no longer is the case. They have no rights to the gold any more. Even when FDR did that not many handed it over

& non were prosecuted either. But right after it was revalued they all enjoyed a big bump up.

As for taxes???? It is a world market & I buy in cash & will sell the same way. No Taxes

[Jake1]

and what will you do with your gold if/when America's debt gets uncontrollable? sell it and share your profit with the IRS? pray that Obama doesn't confiscate it in exchange for colourful printed paper to finance health care?

BLOGSPOT can explain why a 2nd confiscation will never happen.

Gold is off the table

The US gold hoard is now off the table. Think of a poker cheat who pockets his winnings yet still wants to play. When he loses he writes paper IOU's to the other players. Can he ever pull his money back out of his pocket without having it taken away? Think of an individual who declares his own insolvency and defaults on his obligations to pay, only to resurface later with a windfall inheritance. What problems will he face?

In 1971 the US refused to ship any more gold. It defaulted on its international obligations. It took its golden chips off the table but continued to play in the game. But the dollar didn't change. It still remained an international contract for gold. Watch the announcement:

Nixon Closes the Gold Window

As a politician, the President did not want to interrupt television viewers watching the tremendously popular TV series Bonanza, not wishing to potentially alienate those voters who fanatically followed the cowboy series. He was advised that the practical decision was to make an announcement before the stock markets opened on Monday (and just when Asian markets also were opening trading for the day). On 15 August 1971, that speech and the price-control plans proved very popular and raised the public’s spirit. The President was credited with finally rescuing the American public from price-gougers, and from a foreign-caused exchange crisis.

This was cheating, plain and simple. The international financial system and the global market place run on procedure protocols that are not binding. They are not binding, but without them, international trade would stop altogether. Just because a rule is not binding does not mean it is not important. And just because a non binding rule is broken, does not mean it disappears.

Why do you think the US gold hoard was never publicly audited after this? And why do you think the book value of that gold was left frozen at $42 per ounce, never marked to market bringing it "back into play"?

There are two international bodies that facilitate the international financial and monetary system, the IMF and the BIS. These two bodies are in opposite camps. The IMF is in the dollar camp. Its sole purpose is to ensure that third world countries can pay their dollar-denominated debts in order to keep the dollar alive. If that debt from third world countries could no longer be serviced, it could no longer be held as an asset within the financial system. Therefore, the IMF issues highly leveraged dollar loans to these countries to make sure that payments continue. In exchange, it locks up real world capital as collateral for the loans. This is NOT a system that supports third world economies. It is a system that supports the dollar's reserve function at the EXPENSE of third world economies. If the IMF stopped functioning, so would the dollar. And the US government would lose its external funding.

The BIS, on the other hand, coordinates central bank transfers to facilitate international trade balance. If the BIS stopped functioning, so would international trade. This clearing system is fractal in that imbalances are first cleared locally, then regionally, then nationally, then internationally. If the BIS didn't deliver, food would not arrive at your local store, at least until a local production, distribution and clearing system was set up.

This leaves us with a one-sided dependence dynamic in which the BIS and the rest of the world could, if they wanted to, stop supporting the IMF and let the dollar die. But on the other side, the dollar cannot survive without the BIS. But why does this matter? What could make the dollar even think about abandoning the BIS?

Well, if the US ever put gold back on the table through another confiscation of its citizens' gold, the BIS would call in all of its outstanding claims in gold at the rate of $42 per ounce. And the BIS would not be alone. Other entities would have legal claims for gold at $20.67 per ounce, and others at $35 per ounce. How much gold was either confiscated or defaulted on without due process of law? Claims of perpetual entities never go away. If the US government ever exposed its own gold (or its citizens' gold through confiscation) to the light of day, it would expose itself to all kinds of claims and an international legal mess. Under international law, the US is still an OUTLAW when it comes to gold!

This is why gold is off the table. This is why we can never go back to a gold backed dollar. It is also why they cannot call in gold AGAIN under the same dollar that they did in 1933. To call in gold at a specific exchange rate now, the US would first have to back the dollar with gold at that rate and then call it in. That would expose the US gold to international legal challenges for redemption. If they simply called in the gold without backing the dollar, the US government would be exposed to thousands of internal law suits. These law suits would rightfully demand a retroactive reversal of 1933 before any new confiscation could take place. They would demand that US official gold be distributed to all citizens at $20 per ounce BEFORE it could be turned back in to the government.

The US government will never take this risk! It will never expose itself to this legal nightmare! The US is already a golden outlaw!

If the coming dollar collapse takes the first waterfall route and hits the riverbed, how would an insane and illogical confiscation play out? Well, if the US dropped out of the BIS to secure sovereignty over its confiscated gold, the BIS would halt all international dollar traffic and probably try to use those dollars to buy gold on the international free market. The dollar would be instantly dead.

http://fofoa.blogspot.com/2009/08/confisca...erent-view.html

[Naam]

yep, you are right, that is the only thing I am worried about with my gold is Obama claiming it for pretty paper. I need to move it out of the states but that is not an easy option

you can quote me on this. within the next 4 months the Iran crisis will explode [most likely literately] and gold will skyrocket. then i will sell and pay the tax. Depending on what is happening I can buy it somewhere else. America is imploding and not the place I grew up in anymore.

We have the date so you can refer back to it.

I do not think that is possible.

Back in 1933 when FDR called in the gold it was legal tender & they were calling in their money.

It no longer is the case. They have no rights to the gold any more. Even when FDR did that not many handed it over

& non were prosecuted either. But right after it was revalued they all enjoyed a big bump up.

As for taxes???? It is a world market & I buy in cash & will sell the same way. No Taxes

that's what i thought too Flying. but a couple of weeks ago "Lost in LOS" and i were sitting in my house and discussed (among other things) the IRS capital gains share of his gold. he claims he has to pay, i don't understand why.

[flying]

Man gold is still strong but I kick myself often over the moves in Platinum & they dont seem to be letting up....

Oh if I could only go back to that brief time when plat fell below gold....It sits at $1625 tonight

[khunjake]

Stopped out of leveraged gold position at breakeven stop 1120. This was the breakout point from the 1075 low but price is now trending back below that line now. This is bearish action so gold could already be moving into a another lengthy consolidation period. If price breaks below that December 1075 cash low then it could get real ugly.

Platinum is typically bullish in January due to automotive demand. Should stay stronger then gold until April/May timeframe.

[flying]

Gold: The Ultimate Hedge Fund

Worth the time to read ......... IMHO of course

Edited January 22, 2010 by flying

[Abrak]

but it can be done.

Why would any Government with the ability to print money steal everyone's (presumably the electorate's) jewelry?

Surely invading Venezuela makes more sense?

And what would you do with it? I mean Mrs Naam might not want to buy it after it has been stolen from her once? Then you could give it to the Chinese but they seem happy with colored paper.

A more productive solution to current US problems would be to acquisition everyones property - it would be far easier.

[flying]

Fpr entertainment purposes only

http://www.boston.com/bigpicture/2010/01/gold.html