Where Is Gold Going In This Market

[flying]

that does not answer my question "collector's value or brain-amputated?"

Well for now I call Hype

Because even now you can buy Eagles...albeit 2010 mint at +$3.09 over spot$26.34 ...( sheesh even that sounds high )

But the $45 + price you mention has to be hype or considered so for now because we have no ideas what Silver spot will be when the mint churns them out for 2011. Perhaps it was a slip of the tongue on their part? I did not see the article you mention.But I assume they are talking 2011 eagles as there is still enough 2010 stock from what I have seen.

But of course if Silver is trading at 40+/oz USD in 2011 then the story means little. I know it sounds crazy to think of silver at that price but most of what we see today we would have called crazy two years ago.

Edited October 7, 2010 by flying

[Naam]

China now Japan

Japan piles into resources, but is it an inflation hedge?

'More details of Japan’s most recent stimulus measures have come out in the last 24 hours, and one of them in particular has got goldbugs and inflationistas’ tongues a wagging.

And that would be the move to create a sovereign wealth fund more focused on resource-related investments than previously imagined'

continued ..

http://ftalphaville.ft.com/blog/2010/10/06/362201/japan-piles-into-resources-but-is-it-an-inflation-hedge/

a brilliant idea! creating a sovereign wealth fund by increasing national debt from 200% to 220% of GDP

[Naam]

that does not answer my question "collector's value or brain-amputated?"

Well for now I call Hype

Because even now you can buy Eagles...albeit 2010 mint at +$3.09 over spot ...( sheesh even that sounds high )

But the $45 + price you mention has to be hype or considered so for now because we have no ideas what Silver spot will be when the mint churns them out for 2011. Perhaps it was a slip of the tongue on their part? I did not see the article you mention.But I assume trhey are talking 2011 eagles as there is still enough 2010 stock from what I have seen.

But of course if Silver is trading at 40+/oz USD in 2011 then the story means little. I know it sounds crazy to think of silver at that price but most of what we see today we would have called crazy two years ago.

if that is the case and people "subscribe" now at the fancy price then "brain-amputated" applies for sure.

[flying]

if that is the case and people "subscribe" now at the fancy price then "brain-amputated" applies for sure.

Agreed but for now.....It is hype because no coins are for sale at the mint.

Production of United States Mint American Eagle Silver Uncirculated Coins continues to be temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins

Has been so for awhile now. If & when they start back up ....& if they do in fact take orders at that price ....& If the price of silver is where it is today....Then yes they are brain dead to pay it. But....That is a lot of IF's

Did you see someone actually offer that sale? Or was it just a Reuters story? I have not seen the US mint resume any silver eagle sales yet. But as I said APMEX has still 2010 Eagles & Maples at +$3 over spot.

[Naam]

Or was it just a Reuters story?

it was a Churchill/Reuters story but i can't find the link right now. perhaps Churchill can help out.

[churchill]

"NEW YORK, Oct 4 (Reuters) - The U.S. Mint said on Monday it will resume offering the popular one-ounce American Eagle silver proof coins, highlighting strong investment demand for the white metal.

The silver coins, to be sold at $45.95 each..."

do these coins have a collector's value too? or are the buyers just brain-amputated?

'it was a Churchill/Reuters story but i can't find the link right now. perhaps Churchill can help out.'

Your post Naam ! no link /

Edited October 7, 2010 by churchill

[cloudhopper]

Rubber sheet alert!gold thru 1351

[Naam]

"NEW YORK, Oct 4 (Reuters) - The U.S. Mint said on Monday it will resume offering the popular one-ounce American Eagle silver proof coins, highlighting strong investment demand for the white metal.

The silver coins, to be sold at $45.95 each..."

do these coins have a collector's value too? or are the buyers just brain-amputated?

'it was a Churchill/Reuters story but i can't find the link right now. perhaps Churchill can help out.'

Your post Naam ! no link /

i copied from a link YOU posted. period!

[cloudhopper]

Interesting KWN interview

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/10/4_Ben_Davies__Part_II.html

[churchill]

"NEW YORK, Oct 4 (Reuters) - The U.S. Mint said on Monday it will resume offering the popular one-ounce American Eagle silver proof coins, highlighting strong investment demand for the white metal.

The silver coins, to be sold at $45.95 each..."

do these coins have a collector's value too? or are the buyers just brain-amputated?

'it was a Churchill/Reuters story but i can't find the link right now. perhaps Churchill can help out.'

Your post Naam ! no link /

i copied from a link YOU posted. period!

I found it Naam - You copied and pasted from this link http://harveyorgan.blogspot.com/2010/10/japan-engages-in-quanitative-easing-as.html -----half way down the page

[churchill]

Interesting Theory

A Possible Model for the Price of Gold

http://www.crossingwallstreet.com/archives/2010/10/a-model-to-explain-the-price-of-gold.html

[Naam]

I found it Naam - You copied and pasted from this link http://harveyorgan.blogspot.com/2010/10/japan-engages-in-quanitative-easing-as.html -----half way down the page

you post blackpot ahmm... "blogspot" links but you don't read the content about Harvey's organ? a real bad boy you are Churchill !

[Naam]

Interesting Theory

A Possible Model for the Price of Gold

http://www.crossingwallstreet.com/archives/2010/10/a-model-to-explain-the-price-of-gold.html

finally a theory that makes sense!

[Naam]

as I think the Euro is headed for dollar parity, I would expect that...

another dreamer who needs a rubber sheet between the linen and the mattress

These guys have been the top FX forecasters over the past 18 months.

"TD Securities predicts that the euro will trade at $1.13 by year-end, compared with $1.38 as of Oct. 1, and drop to parity against the dollar next year."

http://www.bloomberg.com/news/2010-10-03/no-stopping-yen-as-euro-reaches-parity-in-top-markets-forecast.html

Regards.

parity here we come!

EUR/USD 1.39739 1.39748 Thursday, Oct 7, 2010, 03:20:01 EDT

[churchill]

Who Can Fix Forex?

'Analysts at BNP Paribas in London suggest that one way would be for all the Asian countries to agree to allow their currencies to climb, slowly but surely. If they all climb together, no one loses a competitive edge.

Simon Derrick, a currencies analyst at The Bank of New York Mellon in London, who can barely hide his excitement at this slow-mo train wreck, has come up with his own international agreement on foreign exchange. It reads as follows: “Stop messing around with currencies.”

If everyone (including China) agrees to stop buying dollars to hold down their own currencies, and just leaves the foreign-exchange market to do its thing, this will all go away.

The consequences of that? No one really knows. It could be ugly, though.

Chances of this idea getting off the ground? Slim.

The currency wars have only just begun, and the willingness or ability of international powers to really deal with this mess is open to question.'

http://blogs.wsj.com/source/2010/10/06/who-can-fix-forex/

[churchill]

Interesting Theory

A Possible Model for the Price of Gold

http://www.crossingwallstreet.com/archives/2010/10/a-model-to-explain-the-price-of-gold.html

finally a theory that makes sense!

and from http://www.mineweb.co.za/mineweb/view/mineweb/en/page34?oid=112531&sn=Detail&pid=102055

'Gold only as strong as the risk of sovereign default

As gold continues to hit record highs some analysts warn that the conviction in prices of the yellow metal should only be as strong as those for where interest rates are likely to go.'

[cloudhopper]

Interesting Theory

A Possible Model for the Price of Gold

http://www.crossingw...ce-of-gold.html

finally a theory that makes sense!

"The final point is that the price of gold is essentially political. If a central banker has the will to raise real rates as Volcker did 30 years ago, then the price of gold can be crushed."

Unfortunately the political reality today is that we have Ben Franklin's democracy of two wolves and a sheep voting on what's for dinner.

[Naam]

"The final point is that the price of gold is essentially political. If a central banker has the will to raise real rates as Volcker did 30 years ago, then the price of gold can be crushed."

Unfortunately the political reality today is that we have Ben Franklin's democracy of two wolves and a sheep voting on what's for dinner.

Volcker's decision was not really a political one but the only way to combat rampant inflation. what would happen in the Greatest Nation on Earth™ and of course the rest of the world if (whoever is in charge) raises interest rates 50% of Volcker's rates under the prevailing circumstances? the answer is "Armaggedon combined with apocalypse", creating the scenario our good friends Midas and Alex the Lah were talking about.

[cloudhopper]

"Armaggedon combined with apocalypse",.

No way to stop it now just when and how bad.

And unfortunately later=badder

[teletiger]

Now, now Herr Naam. 97 days until 1.13. Parity next year. It's looking good too. GS just raised their end of year Euro forecast to 1.55. So 1.13 is pretty much guaranteed now.

If this recent gold rise is not financials and bullions short covering, then I'm very suspicious of a general asset crash. If they are still short at this price, then they know something, I fear.

All this talk of gold to the moon.....do a costing of strapping an electrode to the back of your yacht and cruising around the Med to make a living, add 20% and that will be the top for gold.

It was looked at seriously by 2 different factions in 2004, when gold was c.$400 and platinum was c.$800. Found not to be viable at those prices. Now....??

Regards.

[Naam]

GS just raised their end of year Euro forecast to 1.55. So 1.13 is pretty much guaranteed now.

[badge]

http://www.economist.com/blogs/buttonwood/2010/10/gold_us_housing_and_inflation

"Some people talk of a gold bubble; others argue that bullion has only one way to go given the amount of paper money that is being created. It is tough to value a metal that has no yield and limited industrial uses."

[flying]

http://www.economist.com/blogs/buttonwood/2010/10/gold_us_housing_and_inflation

"Some people talk of a gold bubble; others argue that bullion has only one way to go given the amount of paper money that is being created. It is tough to value a metal that has no yield and limited industrial uses."

From the article...

Lee realises that some will object that the CPI understates inflation because of hedonic effects (allowing for improvements in quality) and other factors. So he also compares gold with US house prices, which it is hard to argue are manipulated

Did they just compare it to the CP-Lie & the Manipulated house prices?

You would have thought they would have then followed up with something of substance

[Naam]

Now, now Herr Naam. <snip>

do a costing of strapping an electrode to the back of your yacht and cruising around the Med to make a living, add 20% and that will be the top for gold.

anybody here who is able to translate that "phoreigned" language?

[teletiger]

anybody here who is able to translate that "phoreigned" language?

One cubic mile of seawater contains $50+ million in gold @11ppt. Even more silver @28ppb.

In certain hot spots (river deltas, undersea vents, etc) up to 3 times more.

All the rare earth minerals. You might even find unobtanium in there.

For a full list:

http://www.seafriends.org.nz/oceano/seawater.htm

The extraction process wasn't viable at 2004 prices.

Current-electrode-conductivity-gold-silver? Get with the programme Naam.

Regards.

[Naam]

anybody here who is able to translate that "phoreigned" language?

One cubic mile of seawater contains $50+ million in gold @11ppt. Even more silver @28ppb.

In certain hot spots (river deltas, undersea vents, etc) up to 3 times more.

All the rare earth minerals. You might even find unobtanium in there.

For a full list:

http://www.seafriends.org.nz/oceano/seawater.htm

The extraction process wasn't viable at 2004 prices.

Current-electrode-conductivity-gold-silver? Get with the programme Naam.

Regards.

an interesting undertaking Tiger, but...

-my dogs claim that one cubic mile sea water contains only ~1,700 ounces of gold (assuming the research you posted is correct) with a present value ~2.3 million dollars. personally i have no idea but the dogs also claim that 0.000011ppm are <> 11ppt. could it be that they are right?

-my gardener is convinced that only future Startrek technology (700 years from now) would enable electrolysis to differentiate between gold and other dissolved elements and metals.

-my wife says "you had a yacht, didn't like it very much and sold it 1½ years later with a big loss. no such thing like cruising in the Mediterranean and wasting more money! and stop bothering the dogs with your silly maths tasks."

but don't get disheartened! keep up the good job entertaining us with your investment ideas. especially the one concerning those rare earths which gives the vegetables in your garden a healthy growth. are you directly importing from China or do you use a commodity broker?

[teletiger]

Hmmm....where to start? I thought I quoted ppt for Au.

I must say that "Wurst" and "Wurster" are smarter than the average savaloy. But they've short-changed you here.

"Seawater contains, on average, 0.1 to 2 mg/ton of gold, depending on location."

http://www.wisegeek.com/can-gold-be-extracted-from-seawater.htm

Say, 1 mg per ton (average).....1gm per 1000 tons......1 kilo per Million tons.....1 ton (metric) per Billion tons of seawater.

One cubic mile contains 4,173,281,000 tons of seawater (1610 mt cubed and 1 cubic metre = 1 ton).....or 4.173281 tons of gold.

32,151 troy oz. per ton....whirrr.....clunk.....blobb.....ahhhh....oops.....32,151 x 4.173281 x 1350($)= $181,136 462.00 (There may be a metric descrepency here....but within 10%) Even at 0.1 mg per ton, it's $18 million and that's just the gold.

'And you sold the boat? What a clutz.

Next....

Regards.

[Naam]

'And you sold the boat? What a clutz.

Next....

Regards.

need cash to buy rare earths

[SiamRose]

If a central banker has the will to raise real rates as Volcker did 30 years ago, then the price of gold can be crushed."

There is no way the US could afford to pay the interest if that happened today.

[cloudhopper]

If a central banker has the will to raise real rates as Volcker did 30 years ago, then the price of gold can be crushed."

There is no way the US could afford to pay the interest if that happened today.

Sure they could. As long as it's payable in USD anyway. It's an utter myth that sovereign states printing their own legal tender need either taxes or debt issuance to pay their bills - they can simply print it. Taxes are a tool to control money distribution and other social behavior by the state. Bonds are simply an invention to control interest rates, inflation and, along with taxes only payable in fiat, contribute to the apparent legitimacy of the fiat currency. It only comes to an end when there is a loss of faith in the value of the currency. Every fiat currency has and will suffer this fate, and has and will be replaced in every case with a new fiat currency that, for reasons of being "backed" by whatever, at least for awhile, regains the faith of the citizens.

So if a political decision can be made to raise rates and let the banks and the bondholders fail in order to prolong faith in the value of the USD then the price of gold will fall.

If they can't then gold will be very useful during the transition to the next fiat currency.