Gold Up In 2008 , Where To In 2009 ?

[flying]

Yo Fly,

You are in Fort Knox?

Can you have a look on how much actual US Gold is in that vault there?

I know it is heavily guarded but maybe if you tell them I requested it they let you in.

Yeah well we are not supposed to say but.........lemme just say after the loaning it out we have lotsa room in here now

[AlexLah]

I know I know I know,

Can you check if all those pieces of fancy looking I.O.U's papers are in place?

I mean there must be something right?

[gregb]

Hairy, I support IMA_FARANG's perspective because

it's not only about whether you are a proponent of inflation or deflation it's about realizing under certain unforeseen

circumstances, something to eat could be worth far more at any given time than something that is shiny and is perceived

to be valuable only because it has been in the past.

This is the problem that people simply don't understand. Gold is money...it is not something that needs to be sold. It is something that needs to be exchanged. If you are sitting in Kansas, and you have a stack of Euros today, you can't buy anything. But you go to a bank or money changer and exchange your Euros for USD, and suddenly you can buy food. Thus, Euros are money.

It is the same with gold. A central bank will always exchange fiat currency for gold. The exchange rate fluctuates sure, but it won't go to zero. There will never be a time when you have to worry about not having money if you have gold. They are convertible assets. Back in the 1930's, gold was money. If you had gold, everybody wanted it. The same thing happens today, only the exchange rate floats instead of being fixed. I personally believe it is going to float substantially higher for reasons that I've outlined in many other posts.

Say it 3 times and remember it. Gold is money. Gold is money. Gold is money. It even has an ISO currency symbol XAU. Your choices today are which currency do you keep your savings in? USD? Euro? Norwegian Krone? XAU? I have no problem listening to people say that they feel gold is not the best currency, and that they want to keep their money in something else, but it just pains me to see these falsehoods spread on the internet that gold won't help because you can't eat it. Can you eat a paper dollar? The statement itself is just ridiculous beyond belief. In order to believe this you must believe there will be no place for money in the future.

I simply can't in good conscience allow people to be misled by these kinds of statements. The idea that gold is just another commodity is nothing but social engineering by central bankers to get you to use their product. It's just good marketing. They themselves don't even believe it. They still keep gold on their balance sheets, and they're happy to take more from you in exchange for some more of their paper products. They just always try and bargain for the best price.

[churchill]

CNBC's gold bears turning into bulls ?

http://www.mainstreet.com/article/money/in...ing-gold?page=2

[churchill]

Interesting Article -

The gold market is undergoing radical change with investments in Europe and US taking a lead over the traditional market – Jewelry in India

http://seekingalpha.com/article/124021-how...ect-gold-prices

Intersting to see the investment demand in Europe , USA , Thailand and China - Europe being the most - I would expect that the US and China investment demand will increase ?

Edited March 4, 2009 by churchill

[lannarebirth]

Interesting Article -

The gold market is undergoing radical change with investments in Europe and US taking a lead over the traditional market – Jewelry in India

http://seekingalpha.com/article/124021-how...ect-gold-prices

Intersting to see the investment demand in Europe , USA , Thailand and China - Europe being the most - I would expect that the US and China investment demand will increase ?

I guess it will depend on how true and persistant the rumors of Chinese counterfeit Gold bars and coins are. Lots of rumors circulating this week to that effect. Could just be hedge funds generating them though.

[flying]

As I have said before I fully expect it to do better & better........

Of course I also fully expect some thrashing yet to come & actually hope for it as I would like a increase my holdings a bit more & try to keep at my adjusted cost.

Like the article shows & greg mentioned above banks/countries still hold an aweful lot of gold......why? Why not?

Looking at the current financial status of the world I can find no good reason not to increase holdings of physical gold & silver.

[churchill]

Where do these rumors come from ? any links .

"I guess it will depend on how true and persistant the rumors of Chinese counterfeit Gold bars and coins are. Lots of rumors circulating this week to that effect. Could just be hedge funds generating them though. "

Edited March 4, 2009 by churchill

[lannarebirth]

Where do these rumors come from ? any links .

"I guess it will depend on how true and persistant the rumors of Chinese counterfeit Gold bars and coins are. Lots of rumors circulating this week to that effect. Could just be hedge funds generating them though. "

As I say, as far as I know, only rumors, but many goldbugs are certainly talking about it.

http://www.abovetopsecret.com/forum/thread442271/pg1

[churchill]

Presumably ( if true ) the counterfeit bars or coins are actually gold or silver ? they are just reminting and selling at a profit ?

[AlexLah]

From what I understood is that they mix it (Gold) with lead. But any Goldshop could test the purity.

[lannarebirth]

Presumably ( if true ) the counterfeit bars or coins are actually gold or silver ? they are just reminting and selling at a profit ?

I do not know churchill. I have heard anecdotal accounts (in the past) of silver bars in England being bored out with lead or mercury fillings, but these things are easily checked. Bars should have an exact weight if pure, and presumably a specific displacement. No other mix of metals would have the same exact weight as what pure Gold or Silver would have (I think).

[Naam]

Presumably ( if true ) the counterfeit bars or coins are actually gold or silver ? they are just reminting and selling at a profit ?

I do not know churchill. I have heard anecdotal accounts (in the past) of silver bars in England being bored out with lead or mercury fillings, but these things are easily checked. Bars should have an exact weight if pure, and presumably a specific displacement. No other mix of metals would have the same exact weight as what pure Gold or Silver would have (I think).

don't forget Tungsten (rather cheap) which has a specific weight that differs only 0.2% from Gold.

[Naam]

From what I understood is that they mix it (Gold) with lead. But any Goldshop could test the purity.

a bar which is made from Tungsten and thickly covered with Gold can only be tested by boring a hole or cutting it. the usual surface tests done by goldshops would fail. even a displacement test would not show the fake due to the minimal difference in specific weight.

[Carmine6]

CNBC World last week had someone on who said be cautious with gold the commodity, since the OPEC countries might have to sell. They did their budgeting based on $60 to $70 oil, and of course with higher production volumes. Now they've started projects and programs that they can't just stop.

The implication wasn't that they'd swamp the market, but might kill any rallies. The guy was in gold miners.

[churchill]

Hedge funds turn to gold

http://www.ft.com/cms/s/0/37fcba70-0c0a-11...00779fd2ac.html

[VegasVic]

CNBC's gold bears turning into bulls ?

http://www.mainstreet.com/article/money/in...ing-gold?page=2

The fact that the CNBC gold bears are turning into bulls should be like a blinking red neon sign that says "get out of gold now" Seriously, gold made three unsuccessful runs at $1000/ounce recently and has retreated to $913 currently, and has a downward bias. The U.S. and other markets around the world are poised for a bear market rally and so many of those who parked their cash in gold the past few months will be selling their gold to chase the rally in equities, and furtheremore the latest numbers out of China shows that deflation is even taking hold there as well so gold could very well be dead for the remainder of the year! The IMF is also getting ready to sell its gold very soon so if you really feel the need to buy gold you might want to wait until it drops $150-$200

[flying]

[ The U.S. and other markets around the world are poised for a bear market rally and so many of those who parked their cash in gold the past few months will be selling their gold to chase the rally in equities, and furtheremore the latest numbers out of China shows that deflation is even taking hold there as well so gold could very well be dead for the remainder of the year! The IMF is also getting ready to sell its gold very soon so if you really feel the need to buy gold you might want to wait until it drops $150-$200

Oh Lordy from your lips to the sellers ears please!

I would so love another crack at additional buying at my adjusted cost.

As for China take a look.......China

Edited March 10, 2009 by flying

[churchill]

[ The U.S. and other markets around the world are poised for a bear market rally and so many of those who parked their cash in gold the past few months will be selling their gold to chase the rally in equities, and furtheremore the latest numbers out of China shows that deflation is even taking hold there as well so gold could very well be dead for the remainder of the year! The IMF is also getting ready to sell its gold very soon so if you really feel the need to buy gold you might want to wait until it drops $150-$200

Oh Lordy from your lips to the sellers ears please!

I would so love another crack at additional buying at my adjusted cost.

As for China take a look.......China

and now People's Bank of China sees rises for oil , gold and other commodities .( Inflation on its way ? )

They should know they're the one's buying !

http://uk.reuters.com/article/oilRpt/idUKBJB00058320090313

Edited March 13, 2009 by churchill

[churchill]

CNBC's gold bears turning into bulls ?

http://www.mainstreet.com/article/money/in...ing-gold?page=2

The fact that the CNBC gold bears are turning into bulls should be like a blinking red neon sign that says "get out of gold now" Seriously, gold made three unsuccessful runs at $1000/ounce recently and has retreated to $913 currently, and has a downward bias. The U.S. and other markets around the world are poised for a bear market rally and so many of those who parked their cash in gold the past few months will be selling their gold to chase the rally in equities, and furtheremore the latest numbers out of China shows that deflation is even taking hold there as well so gold could very well be dead for the remainder of the year! The IMF is also getting ready to sell its gold very soon so if you really feel the need to buy gold you might want to wait until it drops $150-$200

Perhaps your right - http://www.youtube.com/watch?v=Eexy-51sIao

Funny but true , I can only watch the European Edition of CNBC - They seem to be a lot more sane .

[churchill]

If a bill under review by the Georgia House becomes law, state residents might be paying 2010 taxes in gold.

Now assigned to the House of Representatives’ Banks & Banking committee, HB 430, or the Constitutional Tender Act, would require the use of gold and silver coin for the repayment of debts to the state, notably all state taxes. It would also mandate that any bank conducting business with the state accept gold and silver coins as deposits.

In effect, the bill seeks to revive the gold and silver standards for certain forms of state business, and Georgia would become the only state in the country to do so.

Reps. Bobby Franklin, R-Marietta, and Barry Loudermilk, R-Cassville, are sponsoring the bill.

http://atlanta.bizjournals.com/atlanta/sto...9779&page=1

[flying]

If a bill under review by the Georgia House becomes law, state residents might be paying 2010 taxes in gold.

Everyone knows I am a gold bull but if this is true in Georgia then it is only fair that the State also pay its workers in gold & silver.

They cannot in all fairness snub the albeit worthless paper & yet use it to pay its workers eh?

Edited March 22, 2009 by flying

[Naam]

In effect, the bill seeks to revive the gold and silver standards for certain forms of state business, and Georgia would become the only state in the country to do so. Reps. Bobby Franklin, R-Marietta, and Barry Loudermilk, R-Cassville, are sponsoring the bill.

they walk among us!

[churchill]

If the US is not confident in it's own currency why should anyone else be .

A bill being considered in the Montana Legislature blasts the Federal Reserve's role in America's money policy and permits the state to conduct business in gold and silver instead of the Fed's legal tender notes.

http://www.worldnetdaily.com/index.php?fa=...mp;pageId=92000

[VegasVic]

If the US is not confident in it's own currency why should anyone else be .

A bill being considered in the Montana Legislature blasts the Federal Reserve's role in America's money policy and permits the state to conduct business in gold and silver instead of the Fed's legal tender notes.

http://www.worldnetdaily.com/index.php?fa=...mp;pageId=92000

Montana like is kindred next door neighbor Idaho has a very small population and a large percentage of that small population tends to be aligned with seperatist movements in those two states. Montana is a mining state and so it should come as no surprise that a few legislators are pushing this nonsense

[JimsKnight]

It might be wisdom given the state of the USA though.

[VegasVic]

Gold is currently up above $900/ounce because people have fled to it as a safe haven during these troubled economic times. Gold was headed back below $900/ounce until Mr. Bernanke spoke recently about the expansion of the U.S.money supply and then gold did an about face and went to $950. This move to gold is a short term phenomena and as the markets begin to make substantial moves upward and world economies start to show growth returning instead of deflation, then those who sought refuge in gold will sell their gold and put their cash in something that can yeild them a safe dividend or interest payment The second half of 2009 there will be substantial pressures on the POG as gold etf's are sold off and people sell their hard gold holdings to raise cash to put back into the markets. Goldbugs will forever wave the red hering flag of HYPERINFLATION, FIAT CURRENCY, PRINTING PRESSES RUNNING 24/7, as a matter of fact most goldbugs cannot write a paragraph without alluding to these fantasies, the truth is that as the worlds economies start to rebound the central banks wil raise interest rates to temper any inflationary fears. This is not to say that there could not be a brief period of higher than normal inflation 18 months from now, but as interest rates rise they will temper any inflationary trend. The doomsdayers like Faber, Rogers , Schiff, Roubini ect. have all had their 15 minutes of fame and should they be alive 20 years from now when the next great world financial crisis occurs then they might get their chance at another 15 minutes of fame

[VegasVic]

It might be wisdom given the state of the USA though.

Jim, Going to a gold or silver backed currency is not only not wise but quite impossible, hence whenever yopu see any central banker anywhere in the world interviewed about this topic they usually dismiss it out of hand

[Jake1]

It might be wisdom given the state of the USA though.

Jim, Going to a gold or silver backed currency is not only not wise but quite impossible, hence whenever yopu see any central banker anywhere in the world interviewed about this topic they usually dismiss it out of hand

We've only been on Fiat for 39 years

The experiment has run it's course and is currently collapsing...a Sound currency is not only possible but it's required if you want any kind of stability

[flying]

Going to a gold or silver backed currency is not only not wise but quite impossible, hence whenever you see any central banker anywhere in the world interviewed about this topic they usually dismiss it out of hand

Dismiss it? Surprised?

And Yet they hold how much gold?

Why would they keep any gold at all?

Why do they hold so much? They could convert that

useless out dated metal for that valuable paper.....Why dont they?