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May JPMorgan take a golden shower from the ever-increasing gold price.
Gold: "the most manipulated and distorted supply curve in the history of economics."
The understatement of the day. Too bad its too long to fit on a t-shirt.
hey here is a solution: JPM might get the rights to the 10 trillions discovered in Tora Bora....how fast people forgot about these reserves?
It won't be worth 10 dollar trillion until next year. Right now it is still 1 trillion.
but we have trolls to remind us
They must have a great supplier to be able to buy all that physical gold, and a big warehouse to store it all.
1000 tons of gold would fit easily into a large-ish bank vault. It's quite dense, you see.
51.81 cubic meters, to be precise.
I'm with you on the supplier issue, though.
Just so people can visualise this, 51.81 cubic metres is a cube with sides of just 3.73 metres (that's just over 12 x 12 x 12 ft for you diehard imperialists)
Sooooo, that's about the size of 2-1/2 cords of wood?
(one cord of wood is 4'X4'X8').
For those hicks out there, like me.
Thad be 2 and a half truckloads here in Florida, better bring a dually for the yeller metal though :-)
Central Bank leasing, and when push comes to shove, poof the Gold will stay at the Central Bank.
it's pretty easy to store paper gold....just add another 0
rolling with laughter...ah, if only they took delivery of 5.2 ACTUAL REAL GOLD.....
as it is, so...how much does the paper weigh here? 5.2 tons worth of futures contracts....worthless futures contracts...
how much do we think it weighs?
there is so much paper it weighs as much as a lot of physical gold
It don't weigh anything. Paper gold? It's all naughts and ones on a computer somewhere.
Eventhough the electron rest mass is 9e-31 kg, you are correct...the naughts and ones don't weigh anything. There is storage somewhere on someone's hard drive, it just won't weigh more when the numbers change.
what weighs more a ton of gold or a ton of futures issued on one ounce of gold?
by the way, why would JPM need to cover? they own the CTFC....and Ben is floating them free cash...
so why do they need to cover, ever?
Maybe Ben is not floating them free cash. Maybe the account through which this is being effected is indeed a hedge account of the Fed or Treasury which JPM (or whoever) simply transacts on behalf of, thus not impacting their own balance sheets or P&L's.
frankly given the level of corruption necessary to keep the markets high and the peasants oblivious, i wouldn't be surprised.
not a bit.
wake up peeps... JPM is NOT short physical ... they are short OTC derivs - sold to the ETFs through a stand alone entity that has NO parent guarentee
and The Fed is on the other side of the trade...
When the time is right the short side of this blow-off top is going to be EPIC.
Up like an escalator, down like a over-weighted elevator.
It will look very much like the Nov. 1979-Jan. 1980 moonshot, the only difference being it won't be a "blowoff top" this time.
whatever happened to GS being wrong on their calls
FX etc., as soon as its gold they are golden. turn your heads and hang on to your nut sack
These firms have risk control policies. Oh you mean the taxpayer?
I'd be more excited if Sprott were the one adding 5.2 tonnes to their pile, since they do actually hold the real thing.
Central Gold Trust is adding 7 tonnes.John Embry(Of Sprott) is a trustee and owns a few hundred thousand units himself.
Where do you get these NAV figures for GLD? How doyou know these aren't paper purchases and are actually physical purchases?
You don't! That's the "beauty" of an ETF!!
Plus when you read the fine print. They pretty much say you'll never know and you'll have no way to hold them accountable for anything. It's like the evolvement of the EULA in software to the pinnacle of making people devoid of any right NOT TO BE SCREWED.
ETF's are the ultimate sucker learning experience.
"Redemption orders are subject to postponement, suspension or rejection by the Trustee" That is from GLD's prospectus
Also from their web site
"Because the expenses of the Trust will be offset by the sale of Trust gold, the amount of gold backing each share (Ounces Per Share) will decrease gradually.
Each share will initially represent 1/10th of one ounce of gold, but this will decline over time. This reduction in ounces per share will be reflected in the NAV of the Trust."
The price of gold severely lags the supposed increase in GLD holdings. This is because GLD is reporting paper gold in its holdings (derivatives, futures, options). If GLD were buying spot gold and transferring the bars in its main vault, then the price of gold would more closely track the gold holdings in GLD.
The reason the price of gold is rising is because of the physical gold bullion rush in Europe. You can fool the Germans once with currency debasement, but not twice. Germans are leading the Europeans in diversifying their euro holdings into foreign currencies and gold.
oh, you are so, so right. you have to love that Merkel tore Obama a new one today. she can't destroy her currency, not and have a career left....so, she's leaving Ben and O swinging in the wind.....good luck boys.....Germany is not going to participate with endless Euro printing.
i think we see the Deutschmark come back before we see the Germans agree to just allow Jean Claude to enter the printing press races with Bennie Boy.
And through the years the people of India have exchange Rupees for physical gold. Wedding gifts, dowry, exchange for black money, etc... They literally sew it into their clothes when they travel to prevent theft.
Who is selling now? Americans are deep in paper debt exchanged for worthless items from Circuit City, Re-Max, and GM.
Let's keep an eye on India, OK team?
First notice day coming up. It will be interesting to see how many Comex players announce their intention to stand for delivery. If not this week, then someday soon, it will become obvious to everyone that there is way too much paper chasing way too little physical gold. Then we will see how well Jeff Christian's "cash settlement" theories work out.
Well, this is worth discussing here, too.
I love graphs such as that. It demonstrates the ludicrous lie that gold is an inflation hedge. If gold were an inflation hedge, there would be no need to adjust the price for inflation to show that gold has a long way yet to run....adjusted for inflation.
Thie dollar price of gold is not relevant here, since the dollars in which gold price is denominated are worthless. If gold rose to $10 billion this dollar price would not even begin to express the value of gold in dollars. Dollars have zero value!
What is relevant is the measure of real output by the nominal price of an ounce of gold. Once you do that calculation, it becomes obvious that higher gold prices are only the inverse expression of the continuing contraction of economic activity.
As long as the economy continues to contract the dollar price of an ounce of gold will rise.
True that. The dollar is worthless but perception being deluded reality has the investor red ants confused as they scurry about carrying the dollar over the euro and others to take it back to the nest hole for safety. When they discover that their dollar feast is just a hollow exoskeleton with no nourishing value, the masses of red ants will climb over each other for the golden calf carcus.
Uhmmm, the dollar really isn't "worthless", it's just worth less (when compared to gold).
I can still exchange dollar denominated FRN's for gold, and canned goods, and ammo, and reloading supplies, etc.
I've never had anything but a bank account and about to move into goldmoney. Can anyone tell me when the next gold option expiry date is as that seems to me to be a good time to buy as the price is deflated, right..
expiry is thursday....the Comex closes at 1:30. I usually start buying at about 1.29.....
you might try APMEX.com, they are straight shooters and won't ram you on the premiums. also they have always, always come thru and delivered, which is not the case with some others.
Oh, and you won't ever get a hard sell from salesperson about why you should leave it with them for "safe storage" at a "reasonable fee"....
with APMEX, you order ya gold, ya get ya gold at the price you bought at ... in my experience. don't know what other people have found.
I think your *spot on* on your assesment of Apmex.com.
Ditto on that observation unwashed and apmex takes credit cards too - what a deal...
Thursday the 24th.
For me...I pay cash and do it locally.
Only my hairdresser knows for sure ;-)
I hear ya'!
How will next year effect us? The new requirement for 1099's to be submitted for any cash transaction above X dollars? I have to buy in lots greater than $1,000 to avoid paying taxes here in Texas. Kinda seems silly, doesn't it? To me, it's like getting change for a dollar. I give them FRN's and they give me coins. Why would that transaction (less than $1k) need to have sales tax added?
am i the only one who expected a sharp decline in the price off gold (temporary correction)
i hope it will decline a lot so i can increase my holding at discount price
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