Buy Gold Now!

[churchill]

More on backwardation

http://www.gold-eagle.com/editorials_08/bloom120708.html

[zorro1]

Those interested in paper gold check out Kingsgate in Thailand. I have 30% of my portfolio here, jumped 11% today . Its an OZ owned company

http://www.kingsgate.com.au/

[churchill]

Those interested in paper gold check out Kingsgate in Thailand. I have 30% of my portfolio here, jumped 11% today . Its an OZ owned company

http://www.kingsgate.com.au/

How long will it take for them to be granted mining rights .

I recently met someone who was the initial investor in land over a very large potash source ( he said potentially the largest in the world ) he had been trying for the last 10 years to negotiate mining rights , he had negotiated from the locals up to now the highest gov officials - always told soon soon , maybe 6 months etc etc . Could be a big earner for Thailand in the future ..........

[zorro1]

Those interested in paper gold check out Kingsgate in Thailand. I have 30% of my portfolio here, jumped 11% today . Its an OZ owned company

http://www.kingsgate.com.au/

How long will it take for them to be granted mining rights .

I recently met someone who was the initial investor in land over a very large potash source ( he said potentially the largest in the world ) he had been trying for the last 10 years to negotiate mining rights , he had negotiated from the locals up to now the highest gov officials - always told soon soon , maybe 6 months etc etc . Could be a big earner for Thailand in the future ..........

http://www.aspectfinancial.com.au/docserve...&popup=true

[churchill]

Good for you if I had a few spare Baht I would be tempted - goldminers generally very undervalued and expecting a good bounce over the coming months .

[flying]

More on backwardation

http://www.gold-eagle.com/editorials_08/bloom120708.html

I read that the other day & this really stood out for me.......

First, let's understand his argument regarding the most likely reason for backwardation.

My understanding of what he is arguing is that current holders of gold bullion are refusing to part with their gold and that - because of this - Comex is facing a rising probability that it will default on orders for delivery at the end of December or, at the latest, March 2009. For example, if you were a professional trader faced with backwardation, you would naturally sell short now - in the knowledge that you can buy for delivery later at a lower price. But this does not appear to be happening. The reason the price of gold for future delivery is lower, Antal seems to be arguing, is that investors are losing faith in the integrity of the futures market for gold. Investors do not believe that Comex will be in a position to honour its obligations.

It will be interesting to see what would happen if Comex did in fact default.

Is Comex leveraged too? Some seem to think so.

If so a run on Comex would produce the same results as a run on the banks.

True?

[zorro1]

Those interested in paper gold check out Kingsgate in Thailand. I have 30% of my portfolio here, jumped 11% today . Its an OZ owned company

http://www.kingsgate.com.au/

How long will it take for them to be granted mining rights .

I recently met someone who was the initial investor in land over a very large potash source ( he said potentially the largest in the world ) he had been trying for the last 10 years to negotiate mining rights , he had negotiated from the locals up to now the highest gov officials - always told soon soon , maybe 6 months etc etc . Could be a big earner for Thailand in the future ..........

http://www.aspectfinancial.com.au/docserve...&popup=true

well that link didnt work due to restrsictions from my trading platform, however they are moving ahead with a major new discovery. see article and DYOR

Post #: 3487645Price at time of posting: $3.42Start of thread: IP: 128.250.xxx.xxxSentiment: LT BuyDisclosure: Stock HeldViews: 679

To view the full post without scrolling please use the full width view or single post viewGood news to all holdes and should prop up the share price against the current negativity...

Via ASX Online (6 pages) For Public Release

The Manager

Announcements

Company Announcements Office

Australian Stock Exchange

Dear Sir/Madam,

Major new gold discovery in Thai Gold belt

A major new gold discovery, to be known as Chokdee, has been made in the central Thai gold belt, approximately 20km north of the Chatree gold mine.

“This discovery has the potential for a new Chatree-size gold system or even larger”, said Kingsgate’s Managing Director, Gavin Thomas. “Ore-grade gold results over wide intercepts in this early drilling stage, supports the Company’s long-held view of a significant new gold belt in central Thailand. Large geochemical gold anomalies with coincident geophysical anomalies like this are the best guide to future open cut gold mining potential.”

Success came in the first drillholes of a regional drilling campaign on targets within granted exploration leases. Wide zones of significant gold mineralisation with high grade sections were intersected from near surface.

Best results from the new Chokdee prospect are:

36.5 metres of 2.9 grams/tonne (g/t) gold,

including 5.8 metres of 11.7 g/t gold;

3.2 metres of 21.5 g/t gold; and

29 metres of 2.0 g/t gold, including 4.4 metres of 7.3 g/t gold.

A large gold-in-soil geochemical anomaly, covering approximately 30km2, surrounds the area of the discovery, which is larger than the 23km2 anomaly that covers the existing Chatree mine, which has been producing gold for seven years. Chatree grew from an initial resource of just under one million ounces of gold to almost 5 million ounces since the start of mining. Recent resource development drilling has demonstrated that the Chatree resource will increase significantly.

At Chokdee, the initial drilling is focused on one area of approximately 2.5km x 0.5km of silicification, phyllic and clay alteration zones within the larger gold anomalous zone. The best gold drill results are closely associated with these alteration zones, and numerous rock chip assay results over 1 g/t gold, and up to 108 g/t gold. Banded epithermal veins have been identified (see photo attached) with gold grades of 13 g/t gold. Geophysical resistivity and chargeability anomalies are closely associated with these silicified and mineralised zones, similar to Chatree. Altered zones lie within volcanogenic sediments and andesitic volcanics.

Drilling of regional exploration targets started recently on granted Special Prospecting Licenses (SPL’s), initially at Chokdee Prospect in Phitsanulok province. This is the first of many drill-ready targets to be tested. The discovery area has been a high priority drill target for Kingsgate, and these results have confirmed the Company’s expectations.

[VegasVic]

Since the current "crisis" is global, it will affect almost everyone to almost the same extent. Global economies won't collapse, they will all adjust in proportion to each other. It is interesting that not too long ago all the USA haters were reveling in the thoughts that the dollar was on its last leg and yet when things go into a downward spiral, the big investors seek the dollar for safety, not gold. Also, I think it is obvious that almost all currencies have lost a lot of ground on the dollar...even in the face of the US government printing another Trillion to shore up the economy and industries...think about objectively.

If the US dollar collapses, the whole world will be in anarchy...and nothing else will matter (except maybe how many of what type of weapons/ammo you have) that's just the way it is, like it or not.

Regards

Well put Matian! I always get a chuckle out of the goldbugs when they start talking about hyperinflation (I wonder if any of them ever took an economics course?), as the opposite is what is occuring. Deflation is the real enemy and there are many countries across the globe that are only a stones throw away from deflation, including the U.S. The goldbugs always talk about how the printing presses at the Bureau of Engraving are running 24/7, but in reality the presses have been relatively idle until just recently, however the FED had better kick those presses into running overtime to reflate the economy, because if real deflation ocurs in the U.S. then there will be a death spiral across the world financial system. If deflation does grab hold of the worlds economies then those gold bricks will make nice shiny pavers for the front yard As far as exchange rates go I would look for the Dollar to move higher over the next six months, especially vs. the Euro, Pound and Aussie dollar as those countries still have many more rate cuts yet to come

[flying]

I have copied this from a book I just read by Michael Maloney

He was one of the advisor's for Robert Kiyosaki ( Rich Dad Poor Dad )

Good Book !

Scenario #1 Mild Inflation ( things go along pretty much as they are )

Least likely scenario....There is way too much economic disequilibrium in the world for things to just continue & even Bernake agrees

The largest US Current account deficit cannot persist indefinitely because the ability of the USA to make debt service payments & the willingness of Foreigners to hold US assets in their portfolios are both limited.

In other words, we buy stuff from everybody else, then everybody buys IOU's in the form of US treasuries, corporate bonds,mortgage backed securities, and hard assets such as companies.stock (partial ownership) in companies,real estate and such. America buys stuff from the rest of the world by selling them pieces of America...and its a very very serious problem.

This scenario is pretty much impossible. But even if we just go along as we are, it means the global currency supply will continue its exponential rate of growth, and thus the value (purchasing power) of all currencies will continue to fall.

All currencies except two, the only currency they cant print. Gold & Silver will catch up and then some.

Scenario #2 Deflation

Bernake biggest fear

Why is the Fed so terrified of Deflation?

Because an IOU based monetary system carries with it the inherent risk of complete & utter implosion.To find the answer we need only to study our own history, namely, the Great Depression.

In the face of huge deflationary concerns, there would be precious few investment outlets for an investor to safely moor his portfolio. One of those harbors would be precious metals simply because, they are the one currency that cannot be printed by a government fiat. As investors begin selling off their US currencies- denominated assets, which would continue the devaluation of the dollar,and began moving them into precious metals, the price would have to rise. Its pure & simple supply & demand.

Scenario #3 BIG Inflation

If Bernake were to achieve his true goal- creating enough inflation to bring the real estate bubble in for a soft landing- this would require a much accelerated rate of inflation and real estate would experience a invisible crash, just like the DOW crash of 1966-1982

Under big inflation all investments appear to rise but many actually fall in value. This is simply due to the fact that while your investments might be returning 10%, the dollar would be inflating at 20%, effectively that equates to a 10% loss

In a situation like this your nest investments would end up being precious metals & commodities, because their prices would rise as the dollar inflates and debt leveraged investments such as real estate, because you could borrow money at or below the cost of inflation, which means borrowing now & paying back with cheaper dollars later.

Scenario # 4 HYPERINFLATION

Under Hyperinflation all investments rise dramatically in price & some gain in value, but all fall in value compared to gold & silver. In hyperinflation the one thing everyone needs is the one thing that is in shortest supply, real money, and people will give you anything for it. Real estate, collectibles, stocks,and such will fall in value when compared to real money.

Again your best investments would be Precious metals, commodities & debt leveraged investments such as real estate

There is no possible scenario in which gold & silver do not rise

Edited December 9, 2008 by flying

[ray08]

Gold is just another commodity ,in fact there is plenty of gold around as you can refine it all the time with only a small loss

,The gold price is up because of speculation , remember Oil at $ 140 + , now where is it ,The physical demand for gold is very low , the main physical has been the Jewellery industry ,they have been hit for a six, and with the world economies in trouble no need for people to go out and buy jewellery , IMO the price is too high , something around $ 400-$500 is more the real value if not less , all this gloom and doom will go away in 1-2 years , in the meantime tell me one civilised country where things are so bad you need gold to survive ,as one poster said if it comes to that he would prefer to have weapons.

I would rather invest in property ,at least you have a roof over your head.

[flying]

Gold is just another commodity ,in fact there is plenty of gold around as you can refine it all the time with only a small loss

,The gold price is up because of speculation , remember Oil at $ 140 + , now where is it ,The physical demand for gold is very low , the main physical has been the Jewellery industry ,they have been hit for a six, and with the world economies in trouble no need for people to go out and buy jewellery , IMO the price is too high , something around $ 400-$500 is more the real value if not less , all this gloom and doom will go away in 1-2 years , in the meantime tell me one civilised country where things are so bad you need gold to survive ,as one poster said if it comes to that he would prefer to have weapons.

I would rather invest in property ,at least you have a roof over your head.

True most of the gold mined is still here unlike Silver.

But why is it when folks speak of Gold or Silver others always ask these questions?

If someone invests in stocks does anyone ask such questions?

How about if someone saves dollars in a 401k? Does anyone ask can you eat that?

Funny stuff....

As for gold being 400-500 I wish it were you to decide as it would be more affordable. Yes I hope the doom & gloom does go away in 1-2 years or sooner would be even better. Remember how long/short the Great Depression was?

As for one civilized country where things are so bad that gold might help you survive? Man thats too easy eh? Pick one any one & give the inhabitant a pound of gold. Did it help him/her survive?

But yes Land is good & weapons are fun too.

[gregb]

Sell your gold at spot today, get the cash, buy a future's contract to pick up your gold in a few months, and pocket the difference.

an innocent question to all the gold gurus here: "how does one pocket a loss?"

You play the basis, not the price. There is no loss here. You have an ounce of gold today, you still have an ounce of gold tomorrow, and you made a bunch of money in the mean time. The same principle you use to make money renting a property.

That's why gold simply can not go into backwardation during normal economic times. Beware of the abnormal times that are coming though.

[ray08]

Gold is just another commodity ,in fact there is plenty of gold around as you can refine it all the time with only a small loss

,The gold price is up because of speculation , remember Oil at $ 140 + , now where is it ,The physical demand for gold is very low , the main physical has been the Jewellery industry ,they have been hit for a six, and with the world economies in trouble no need for people to go out and buy jewellery , IMO the price is too high , something around $ 400-$500 is more the real value if not less , all this gloom and doom will go away in 1-2 years , in the meantime tell me one civilised country where things are so bad you need gold to survive ,as one poster said if it comes to that he would prefer to have weapons.

I would rather invest in property ,at least you have a roof over your head.

True most of the gold mined is still here unlike Silver.

But why is it when folks speak of Gold or Silver others always ask these questions?

If someone invests in stocks does anyone ask such questions?

How about if someone saves dollars in a 401k? Does anyone ask can you eat that?

Funny stuff....

As for gold being 400-500 I wish it were you to decide as it would be more affordable. Yes I hope the doom & gloom does go away in 1-2 years or sooner would be even better. Remember how long/short the Great Depression was?

As for one civilized country where things are so bad that gold might help you survive? Man thats too easy eh? Pick one any one & give the inhabitant a pound of gold. Did it help him/her survive?

But yes Land is good & weapons are fun too.

Sorry ,Better i expand the question, , in the meantime tell me one civilised country where things are so bad you need gold to survive, by bad i mean the currency system has failed , and paper is worthless?

[churchill]

Gold is just another commodity ,in fact there is plenty of gold around as you can refine it all the time with only a small loss

,The gold price is up because of speculation , remember Oil at $ 140 + , now where is it ,The physical demand for gold is very low , the main physical has been the Jewellery industry ,they have been hit for a six, and with the world economies in trouble no need for people to go out and buy jewellery , IMO the price is too high , something around $ 400-$500 is more the real value if not less , all this gloom and doom will go away in 1-2 years , in the meantime tell me one civilised country where things are so bad you need gold to survive ,as one poster said if it comes to that he would prefer to have weapons.

I would rather invest in property ,at least you have a roof over your head.

True most of the gold mined is still here unlike Silver.

But why is it when folks speak of Gold or Silver others always ask these questions?

If someone invests in stocks does anyone ask such questions?

How about if someone saves dollars in a 401k? Does anyone ask can you eat that?

Funny stuff....

As for gold being 400-500 I wish it were you to decide as it would be more affordable. Yes I hope the doom & gloom does go away in 1-2 years or sooner would be even better. Remember how long/short the Great Depression was?

As for one civilized country where things are so bad that gold might help you survive? Man thats too easy eh? Pick one any one & give the inhabitant a pound of gold. Did it help him/her survive?

But yes Land is good & weapons are fun too.

Sorry ,Better i expand the question, , in the meantime tell me one civilised country where things are so bad you need gold to survive, by bad i mean the currency system has failed , and paper is worthless?

If the currency has become worthless , the country would probably not be civilized - and to have a few nuggets of gold may well be the difference between survival and starvation -

[churchill]

Another article on the subject

http://www.safehaven.com/article-12032.htm

[churchill]

How to buy gold stocks for free !

Good advice -

http://www.stockhouse.com/Columnists/2008/...stocks-for-free

[Naam]

Sell your gold at spot today, get the cash, buy a future's contract to pick up your gold in a few months, and pocket the difference.

an innocent question to all the gold gurus here: "how does one pocket a loss?"

You play the basis, not the price. There is no loss here. You have an ounce of gold today, you still have an ounce of gold tomorrow, and you made a bunch of money in the mean time. The same principle you use to make money renting a property.

hats off! you must be one of the winners of the Yewkonomicks Gobble Prize which is awarded every year to outstanding financial gurus. keep up the good job, we need some entertainement here.

[flying]

Sorry ,Better i expand the question, , in the meantime tell me one civilised country where things are so bad you need gold to survive, by bad i mean the currency system has failed , and paper is worthless?

Better to expand folks mind as to what is possible.

Do you own a home? Do you have home owners insurance? Why? It wont fall will it?

How about fire insurance? Why what are the odds you will lose it in a fire?

Do you buy health insurance?

How about theft insurance?

More to the point of your question Iceland come to mind.

mainly because I know some folks there & yes they have some gold & silver & do barter now with it.

Also here in the US there are merchants that will accept gold for goods.

Gold is money here you know? Eagles both goold & silver are acceptable in IRA's.

Silver and Gold American Eagles which were introduced by the U.S. Mint in 1986 as bullion coins are the only coins specifically approved for a U.S. Individual Retirement Account (IRA). Until 1997 they were the ONLY form of physical gold or silver eligible as an investment within an IRA. After 1997, Platinum American Eagles became approved coins as well. You may hold the Eagle coins and other coins in just one IRA. All of the American Eagle coins are U.S. legal tender and denominated in dollars. The one-tenth ounce $5 Gold Eagle coins are .9167 fine and contain .10 troy ounce of pure gold, which by law must be mined in the USA. The U.S. government guarantees the weight and precious metal content of the American Eagle coins. They have become the most recognized and easily traded coin throughout the world.

• Other gold and silver coins must be at least .995 fine in purity (meaning they are at least 99.5% pure gold or silver) and be "legal tender" coins. Thus legal tender gold coins which are 24K do qualify, while 22K gold coins do not - unless they are the 22K Gold American Eagle coins.
  

By meeting both these "purity" and "legal tender" requirements, these popular .999 or .9999 silver and 24K gold coins may also be legal investments for a tax-sheltered American IRA...

• American Gold Buffalos
  
• Canadian Gold Maple Leafs
  
• Austrian Philharmonics
  
• Australian Kangaroo-Nuggets
  
• Australian Lunar Series from Perth Mint
  
• Canadian Silver Maple Leafs
  
• Mexican Silver Libertad
  

[LaoPo]

Since the current "crisis" is global, it will affect almost everyone to almost the same extent. Global economies won't collapse, they will all adjust in proportion to each other. It is interesting that not too long ago all the USA haters were reveling in the thoughts that the dollar was on its last leg and yet when things go into a downward spiral, the big investors seek the dollar for safety, not gold. Also, I think it is obvious that almost all currencies have lost a lot of ground on the dollar...even in the face of the US government printing another Trillion to shore up the economy and industries...think about objectively.

If the US dollar collapses, the whole world will be in anarchy...and nothing else will matter (except maybe how many of what type of weapons/ammo you have) that's just the way it is, like it or not.

Regards

Really ?

I think you should study the causes and reasons WHY the dollar went up a bit but it didn't BECAUSE of the fundamentals of the dollar, the economy in the US or that the dollar is a safe heaven.

Far from that....

LaoPo

[Khun Jean]

and now the latest news is that Treasury bills yielded a negative rate of interest!

Anyone can elaborate on that?

[VegasVic]

Gold is just another commodity ,in fact there is plenty of gold around as you can refine it all the time with only a small loss

,The gold price is up because of speculation , remember Oil at $ 140 + , now where is it ,The physical demand for gold is very low , the main physical has been the Jewellery industry ,they have been hit for a six, and with the world economies in trouble no need for people to go out and buy jewellery , IMO the price is too high , something around $ 400-$500 is more the real value if not less , all this gloom and doom will go away in 1-2 years , in the meantime tell me one civilised country where things are so bad you need gold to survive ,as one poster said if it comes to that he would prefer to have weapons.

I would rather invest in property ,at least you have a roof over your head.

True most of the gold mined is still here unlike Silver.

But why is it when folks speak of Gold or Silver others always ask these questions?

If someone invests in stocks does anyone ask such questions?

How about if someone saves dollars in a 401k? Does anyone ask can you eat that?

Funny stuff....

As for gold being 400-500 I wish it were you to decide as it would be more affordable. Yes I hope the doom & gloom does go away in 1-2 years or sooner would be even better. Remember how long/short the Great Depression was?

As for one civilized country where things are so bad that gold might help you survive? Man thats too easy eh? Pick one any one & give the inhabitant a pound of gold. Did it help him/her survive?

But yes Land is good & weapons are fun too.

Sorry ,Better i expand the question, , in the meantime tell me one civilised country where things are so bad you need gold to survive, by bad i mean the currency system has failed , and paper is worthless?

If the currency has become worthless , the country would probably not be civilized - and to have a few nuggets of gold may well be the difference between survival and starvation -

Wrong once again churchill!!! If things get that bad then the only value gold will have is as a bauble, and if you find a farmer who likes baubles then he might give you a few ears of corn or 1/2 bag of rice for one of those nice shiny 1 oz gold pieces

[churchill]

Vic , In Zimbabwe I am sure that a few nuggetts of gold would keep you going for a lot longer than a few millions of their dollars . A farmer would know that the following day his million dollars would already be worth far less , but at least his gold could be exchange for dollars if he wanted and not devalued overnight because of inflation .

[flying]

Gold is just another commodity ,in fact there is plenty of gold around as you can refine it all the time with only a small loss

,The gold price is up because of speculation , remember Oil at $ 140 + , now where is it ,The physical demand for gold is very low , the main physical has been the Jewellery industry ,they have been hit for a six, and with the world economies in trouble no need for people to go out and buy jewellery , IMO the price is too high , something around $ 400-$500 is more the real value if not less , all this gloom and doom will go away in 1-2 years , in the meantime tell me one civilised country where things are so bad you need gold to survive ,as one poster said if it comes to that he would prefer to have weapons.

I would rather invest in property ,at least you have a roof over your head.

True most of the gold mined is still here unlike Silver.

But why is it when folks speak of Gold or Silver others always ask these questions?

If someone invests in stocks does anyone ask such questions?

How about if someone saves dollars in a 401k? Does anyone ask can you eat that?

Funny stuff....

As for gold being 400-500 I wish it were you to decide as it would be more affordable. Yes I hope the doom & gloom does go away in 1-2 years or sooner would be even better. Remember how long/short the Great Depression was?

As for one civilized country where things are so bad that gold might help you survive? Man thats too easy eh? Pick one any one & give the inhabitant a pound of gold. Did it help him/her survive?

But yes Land is good & weapons are fun too.

Sorry ,Better i expand the question, , in the meantime tell me one civilised country where things are so bad you need gold to survive, by bad i mean the currency system has failed , and paper is worthless?

If the currency has become worthless , the country would probably not be civilized - and to have a few nuggets of gold may well be the difference between survival and starvation -

Wrong once again churchill!!! If things get that bad then the only value gold will have is as a bauble, and if you find a farmer who likes baubles then he might give you a few ears of corn or 1/2 bag of rice for one of those nice shiny 1 oz gold pieces

Gold & Silver may well have always been a bauble but what did anyone use as money before fiat currency? Ah yes

Folks will always need something in the middle to trade with. As well as a barter system works not everyone will need my skill if it came to that.

So yes I believe a farmer would in fact take a piece of gold/silver in exchage for food knowing he could trade it yet again for a service he needed.

But why-O-why do the arguments against gold & silver as a investment or safe harbor always turn to this?

There is no middle ground?

The detractors always come up with ...."well if it is the end of the world what does it matter"

That may be true & if it did all go Mad Max probably most would in fact rather check out.

But come on ............ There could just maybe be something far less drastic eh?

The middle ground? There Gold & Silver will always have a value associated with it. The same cannot be said for most other investments except those mentioned in the scenarios I quoted earlier.

One last thing................ Gold is so very easy to turn into dollars.

The same cannot be said for dollars

Edited December 10, 2008 by flying

[VegasVic]

Gold is just another commodity ,in fact there is plenty of gold around as you can refine it all the time with only a small loss

,The gold price is up because of speculation , remember Oil at $ 140 + , now where is it ,The physical demand for gold is very low , the main physical has been the Jewellery industry ,they have been hit for a six, and with the world economies in trouble no need for people to go out and buy jewellery , IMO the price is too high , something around $ 400-$500 is more the real value if not less , all this gloom and doom will go away in 1-2 years , in the meantime tell me one civilised country where things are so bad you need gold to survive ,as one poster said if it comes to that he would prefer to have weapons.

I would rather invest in property ,at least you have a roof over your head.

Ray, you can talk common sense here until you're blue in the face but you won't get through to the goldbugs, as they seem to exist in a different reality. The gold market right now is like the tulip market in Holland was back in the 1630's. The name given to this phenomena is "the greater fool theory", if you buy gold at $750/ounce you pray that there is a greater fool out there who will buy it from you at $800/ounce at some future point in time. Industrial (hard demand) demand for gold has been dropping steadily since the early 1990's and currently it sits at just under 10% of the annual ammount mined. The other 90% of annual gold production goes to soft demand, which is a mix of the worldwide jewellry market (which is currently in a deep recession as you pointed out) and private citizen (goldbug) purchses and central banks buying gold. Many European central banks have been selling gold as of late and should oil remain at these levels or go lower then I imagine that Russia will also soon be a net seller of gold, but these sales have recently been offset by the Saudis, Iranians, and Chinese buying gold. The Saudis and Iranians seem to be finished buying, and when the chinese are done with there purchases then there will be a massive vacuum in the gold market, and this void will occur at the height of the worldwide recession-depression and these goldbugs will be holding on to a commodity that will be in an absolute free fall, and the panic should be quite spectactular

[VegasVic]

Vic , In Zimbabwe I am sure that a few nuggetts of gold would keep you going for a lot longer than a few millions of their dollars . A farmer would know that the following day his million dollars would already be worth far less , but at least his gold could be exchange for dollars if he wanted and not devalued overnight because of inflation .

Churchill, why in the world would that Zimbabwean farmer take gold for his crops when he could take a pig or a cow? I mean if you have this post WW1 Germany type of inflation then gold would have no more value that the wotrthless fiat currency would! After all the only thing that the farmer is going to buy with that gold is more worthless fiat currency. If things get as bad as you goldbugs so often wish for then gold will be just as worthless as the fiat currency that all of you scoff at The only real value will be in food stuffs, livestock, clean water and perhaps guns and ammo

[flying]

I mean if you have this post WW1 Germany type of inflation then gold would have no more value that the worthless fiat currency would!

Hello??

I do agree tho that Food & weapons will command a premium in your scenario

[churchill]

Vic , In Zimbabwe I am sure that a few nuggetts of gold would keep you going for a lot longer than a few millions of their dollars . A farmer would know that the following day his million dollars would already be worth far less , but at least his gold could be exchange for dollars if he wanted and not devalued overnight because of inflation .

Churchill, why in the world would that Zimbabwean farmer take gold for his crops when he could take a pig or a cow? I mean if you have this post WW1 Germany type of inflation then gold would have no more value that the wotrthless fiat currency would! After all the only thing that the farmer is going to buy with that gold is more worthless fiat currency. If things get as bad as you goldbugs so often wish for then gold will be just as worthless as the fiat currency that all of you scoff at The only real value will be in food stuffs, livestock, clean water and perhaps guns and ammo

"After all the only thing that the farmer is going to buy with that gold is more worthless fiat currency."

Yes but he would be able to buy more of the worthless currency than the day before .

[VegasVic]

I mean if you have this post WW1 Germany type of inflation then gold would have no more value that the worthless fiat currency would!

Hello??

I do agree tho that Food & weapons will command a premium in your scenario

Its not my scenario Flying! This hyperinflation dreamworld is every goldbugs fairytale My scenario is that disinflation-deflation will be with us throughout 2009 and perhaps into 2010, and we will be in a low interest rate environment for quite some time. People buy jewelry with disposable income and as disposable income shrinks so to will the demand for gold from the jewelry markets, and when you couple this with the end of the chinese gold buying spree it spells an absolute dive off a cliff for gold.

[VegasVic]

Vic , In Zimbabwe I am sure that a few nuggetts of gold would keep you going for a lot longer than a few millions of their dollars . A farmer would know that the following day his million dollars would already be worth far less , but at least his gold could be exchange for dollars if he wanted and not devalued overnight because of inflation .

Churchill, why in the world would that Zimbabwean farmer take gold for his crops when he could take a pig or a cow? I mean if you have this post WW1 Germany type of inflation then gold would have no more value that the wotrthless fiat currency would! After all the only thing that the farmer is going to buy with that gold is more worthless fiat currency. If things get as bad as you goldbugs so often wish for then gold will be just as worthless as the fiat currency that all of you scoff at The only real value will be in food stuffs, livestock, clean water and perhaps guns and ammo

"After all the only thing that the farmer is going to buy with that gold is more worthless fiat currency."

Yes but he would be able to buy more of the worthless currency than the day before .

Ray, Do you see what I mean? You can talk common sense to these goldbugs until you are blue in the face but it just doesn't register

[flying]

Its not my scenario Flying! This hyperinflation dreamworld is every goldbugs fairytale My scenario is that disinflation-deflation will be with us throughout 2009 and perhaps into 2010, and we will be in a low interest rate environment for quite some time. People buy jewelry with disposable income and as disposable income shrinks so to will the demand for gold from the jewelry markets, and when you couple this with the end of the chinese gold buying spree it spells an absolute dive off a cliff for gold.

Its not my scenario either vic,

It is just what most go straight to when trying to talk down PM's as a investment.

It is the only use they see is a Sh!t hits the fan scenario.

But again I see it as a good investment these days & a fairly safe harbor.

I also in no way think Golds stable price during these crazy times has been the outcome of folks buying jewelry with disposable income.

Nor can I understand your thinking that when China stops buying ( if in fact they are buying in the 1st place ) then suddenly price drops? I mean ok say China is buying the bulk many say they are. Now is supply increased or decreased? So ???

Again I know it is easy to label anyone who invests in PM's a bug but really I do not see it as a bad or dangerous investment these days at all.