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Pimco Cuts Half Its Gold Exposure, Says US AAA Rating Could See A "Lot Of Stress" Within 3 Years

Tyler Durden's picture





 

Just headlines for now, but rather self-explanatory, or should we say self-contradictory.

 


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Tue, 06/15/2010 - 11:30 | Link to Comment LoneStarHog
LoneStarHog's picture

First, I had no idea that PimpCo had anything to do with gold...

Second, this headline makes no sense to me...

Third, F**K PimpCo!

Tue, 06/15/2010 - 11:32 | Link to Comment schoolsout
schoolsout's picture

Makes no sense to me, either.

USA credit rating drops and they are ditching gold?

 

edit....captcha  -22 minus ___ = -77

answer would be 55, correct?  Not according to CAPTCHA

Tue, 06/15/2010 - 11:34 | Link to Comment MsCreant
MsCreant's picture

Glad ya'll said something because I clicked over here to see if a comment might clue me in as to what is supposed to be apparent to others.

Edit: You needed the negative sign on 55.

Tue, 06/15/2010 - 11:38 | Link to Comment mdwagner
mdwagner's picture

-22 - (-55) = +33, not -77

Tue, 06/15/2010 - 11:42 | Link to Comment LoneStarHog
LoneStarHog's picture

Only at ZeroHedge does traditional mathematics remain valid...

Tue, 06/15/2010 - 11:53 | Link to Comment breezer1
breezer1's picture

i was in an alaskan town once where half the population were prostitutes. the other half was the cook. so he sold half an oz. the headline was worth the loss.

Tue, 06/15/2010 - 12:46 | Link to Comment Slash
Slash's picture

naw this makes sense. As we saw in 2008, when shit starts rolling over, leveraged positions will once again have to be liquidated, driving gold and commodities down and dollar up. I don't think gold will start rising substantially again until Benron's response to the crash begins....QE 2.0 and god know what other inflationary measures he would take.

Tue, 06/15/2010 - 11:38 | Link to Comment schoolsout
schoolsout's picture

I don't think that is correct...

 

a minus -55 would be a plus 55

 

 

Tue, 06/15/2010 - 11:42 | Link to Comment MsCreant
MsCreant's picture

That's funny. You were both very polite about that! Sorry for butting in.

Tue, 06/15/2010 - 11:43 | Link to Comment chumbawamba
chumbawamba's picture

The Captcha here has never worked right.  I only get it after I first login.  If it fails  I just keep hitting the submit button until it goes away, which it should after the first or second time after logging in.

But anyway, yeah, this is about as stupid a move as you can make.

Let's see, the country that backs the global fiat currency is about to implode, so let's sell all our gold!

I am Chumbawamba.

Tue, 06/15/2010 - 11:53 | Link to Comment Hulk
Hulk's picture

Same here, hitting submit a second time always works. Just goes to show that persistence pays

Tue, 06/15/2010 - 14:02 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Chumba & Hulk, two of my favorites.

When the Captcha asks for a minus answer that is two digits, it comes back with an error, but still posts my reply.

Tue, 06/15/2010 - 14:11 | Link to Comment mrgneiss
mrgneiss's picture

My CAPTCHA went away for a month after I donated to ZH...........but I'm sure it was just a coincidence......

Tue, 06/15/2010 - 15:45 | Link to Comment ColonelCooper
ColonelCooper's picture

And here you were, teaching algebra just last night.

Tue, 06/15/2010 - 12:19 | Link to Comment Bananamerican
Bananamerican's picture

What's the opposite of "talk your book"?

"Goldman your book"??

Some say Gold is an inflation hedge, some say a deflation (or uncertainty) hedge.

Some say Pimpco and Goldman are WHORES so why listen to ANYTHING they say?

Tue, 06/15/2010 - 12:27 | Link to Comment DosZap
DosZap's picture

Chumb,

And I thought it was me.....LOL

Tue, 06/15/2010 - 15:03 | Link to Comment RonnieHonduras
RonnieHonduras's picture

Maybe they know the U.S. government plans on taxing all gold profits at 75%.  After all, those who have more loyalty to gold are really economic terrorists, are they not?

Tue, 06/15/2010 - 13:10 | Link to Comment Calculated_Risk
Calculated_Risk's picture

-22 minus ___ = -77

-22 -X = -77

-X = -77 +22

-X = -55

X = -55/-1

X= 55

 

Tue, 06/15/2010 - 11:43 | Link to Comment seventree
seventree's picture

Get with it folks, captcha has switched to "new math" (described in BLS textbook)

Tue, 06/15/2010 - 11:50 | Link to Comment schoolsout
schoolsout's picture

That makes sense...

ZH needs to come out with an "Obamulator" where, no matter the inputs, the output is always wrong.  (Doesn't necessarily need to be Obama related, as our problems go back further than the Messiah, but you get the drift)

 

Who's with me?

Tue, 06/15/2010 - 11:56 | Link to Comment seventree
seventree's picture

Whether results are 'wrong' is subjective -- for the gov't results are what they need to be.

Tue, 06/15/2010 - 12:00 | Link to Comment schoolsout
schoolsout's picture

That's kind of my point...that math isn't the math it used to be.

Tue, 06/15/2010 - 12:06 | Link to Comment seventree
seventree's picture

- (-100)

Tue, 06/15/2010 - 12:16 | Link to Comment schoolsout
schoolsout's picture

That gave me a good chortle

Tue, 06/15/2010 - 15:47 | Link to Comment ColonelCooper
ColonelCooper's picture

Actually, if we had Obama math, wouldn't any answer always be right?  Being wrong is hard on self esteem, and we should ALL be winners in our new Hopey-Changey America.

Tue, 06/15/2010 - 12:24 | Link to Comment BumpSkool
BumpSkool's picture

You bet schools out ... been out for along time eh?

Tue, 06/15/2010 - 12:36 | Link to Comment schoolsout
schoolsout's picture

?

Tue, 06/15/2010 - 12:32 | Link to Comment HCSKnight
HCSKnight's picture

Just remember that little fact when you read ZH.  I love the site, but it says something when such an obvious "little" factual detail is .... ignored.

And dont forgeet, the IP is located in Sweden....

 

 

 

Tue, 06/15/2010 - 13:37 | Link to Comment taraxias
taraxias's picture

I think what they meant to say is that they are ditching SHORTING gold.

Tue, 06/15/2010 - 11:33 | Link to Comment Turd Ferguson
Turd Ferguson's picture

Ditto, here.

AAA rating is going away so SELL GOLD. That makes sense.

Tue, 06/15/2010 - 11:37 | Link to Comment luigi
luigi's picture

Maybe they are selling gold to sustain the dollar, otherwise the stress on the rating would come much sooner than within three years? :o)

No seriously: I can't understand either, AAA away "therefore" sell gold... ??

Anyway I expect "tension" on the triple A to come much sooner than later...

Just my 2cents.

Tue, 06/15/2010 - 11:42 | Link to Comment Hansel
Hansel's picture

They probably sold GLD so they can move into actual gold within 3 years... or something.

Tue, 06/15/2010 - 11:56 | Link to Comment ZerOhead
ZerOhead's picture

Update:

They bought two gold eagles last week and sold one this week. That way the can protect their remaining bond exposure with a cheap deflationist message to the markets... BTW... aren't they half in cash already or something?

Tue, 06/15/2010 - 11:38 | Link to Comment Mad Max
Mad Max's picture

It makes sense if you're the Fed's handmaiden.

It might also make sense if you fundamentally have deep and abiding faith in fiatscos, believe that hyperinflation is a zero possibility, and therefore think that 8-10% interest rates on fiatscos will outperform gold price appreciation.

Tue, 06/15/2010 - 11:40 | Link to Comment EscapeKey
EscapeKey's picture

That's sort of ignoring secondary consequences, though. If the interest rate heads for 8-10%, either it would be caused by large scale inflation, or it would cause a virtual collapse (who can afford 8-10% interest rates, if your wages don't appreciate by this amount as well?)

 

Tue, 06/15/2010 - 14:26 | Link to Comment MachoMan
MachoMan's picture

As documented here many times, at those rates, the service charges on our debt would be insurmountable.  We would be posed with the decision to fish or cut bait.

Tue, 06/15/2010 - 11:48 | Link to Comment luigi
luigi's picture

But then I must wonder if the handmaiden chicago-girl won her degree in a bingo-hall.

If interest rates are that high with this unemployment and prices start discounting these rates, economics will be your last problems since you'll have to recall all expeditionary forces to confront internal uprisings (provided you have still enough ressources to bring them back)...

By the way: something against people driving fiats? :oD

Tue, 06/15/2010 - 12:41 | Link to Comment tmosley
tmosley's picture

I can only parse their logic by assuming they meant sell GLD rather than gold.

Tue, 06/15/2010 - 11:37 | Link to Comment yabs
yabs's picture

don't get it surely thats good for gold

Tue, 06/15/2010 - 11:39 | Link to Comment AnAnonymous
AnAnonymous's picture

That is a nice teaser.

Will full text, all your questions are going to be answered.

Keep hitting F5!

Tue, 06/15/2010 - 11:41 | Link to Comment jkruffin
jkruffin's picture

28 day auction ugly as expected, high rate .03%,  and the median was at or below .01%

 

EEEEWWWWWWW!!!!!!!!!!!!!!!!  In less than 2 wks , drops from .157% to .03%

 

http://www.treasurydirect.gov/instit/annceresult/press/preanre/2010/R_20...

Tue, 06/15/2010 - 11:45 | Link to Comment Turd Ferguson
Turd Ferguson's picture

YES! I was just looking at this.

1 fucking basis point for a 28-day bill? Certainly looks like there is more than a little scared money out there.

Tue, 06/15/2010 - 11:59 | Link to Comment jkruffin
jkruffin's picture

Indeed,  I have some 28 days coming due for automatic re-up that I got at .157 two weeks ago,and I just logged in to TD and canceled those re-ups, until something gives.  No way I am buying those dead horses. I will just leave it in C of I for now until the longer term yields get back up.  Not worth playing crooked stocks or treasuries at this point.  Both are being manipulated to the stars.  Pretty soon we will have to pay Timmy to lend him money.  WTF? 

Tue, 06/15/2010 - 11:40 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

Contradictions do not exist.  Check your premises, as one of them is wrong.  -JG

Tue, 06/15/2010 - 11:41 | Link to Comment unwashedmass
unwashedmass's picture

 

the "trillions" in precious metals in afghanistan story fizzled yesterday....so today, PIMCO -- who IS the handmaiden of the Fed, and has never been known to BE a major gold player but again, Ben relies on the ignorance of the peasantry -- PIMCO says its cutting its gold exposures.

so terrifying that i see gold is now rising.

Tue, 06/15/2010 - 11:43 | Link to Comment EscapeKey
EscapeKey's picture

Yeah, despite this ridiculous rally going on, gold spot prices are only down 2% from their highs, and even up today.

Tue, 06/15/2010 - 11:47 | Link to Comment Turd Ferguson
Turd Ferguson's picture

Yes but keep in mind that $1250 will be defended at all costs. A strong move through there and it begins to really get away from them. 

Tue, 06/15/2010 - 11:52 | Link to Comment EscapeKey
EscapeKey's picture

I wonder what JPM's short position would cost them if gold went to $1,300

 

Tue, 06/15/2010 - 11:56 | Link to Comment Turd Ferguson
Turd Ferguson's picture

It will cost them everything when the world finally realizes that the ETF for which they are custodian is absolute bullshit and fake. They are the next BP.

Tue, 06/15/2010 - 12:24 | Link to Comment schoolsout
schoolsout's picture

Yea, but I definitely wouldn't mind that clusterf&^k when it happens.

Tue, 06/15/2010 - 12:31 | Link to Comment BumpSkool
BumpSkool's picture

ahhh Turdy, my man? Read the prospectus. If a custodian renegs on his "obligations" he's liable for zip... and so is the (now bust) ETF. That's what makes these such great products.

 

 

“The Custodian’s selected sub custodians may appoint further sub cus- 

todians. These further sub custodians are not expected to have written 

custody agreements with the Custodian’s sub custodians that selected 

them. The lack of such written contracts could affect the recourse of the 

Trust and the Custodian against any sub custodian in the event a sub 

custodian does not use due care in the safekeeping of the Trust’s gold. 

See “Risk Factors”—The ability of the Trustee or the Custodian to 

take legal action against sub custodians may be limited...” 

– SPDR (ticker:GLD) ETF prospectus ...

 

 

 

 

 

 

 

Tue, 06/15/2010 - 12:34 | Link to Comment BumpSkool
BumpSkool's picture

What's more - you'll find that most of custodians, as they fall into the LBMA, have a different country of jurisdiction than the ETF itself. I hope you're ready to wait for your day in court .... it may take the rest of your life.

A note: If JPM falls foul of the law... the law will be changed. No One, but No One - messes with JPM. They make GS look like little street punks in comparison. JPM, on the other hand IS the US Treasury, make no doubt about it..

Tue, 06/15/2010 - 11:43 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

What is going on at Pimpco? First elarien goes Austrian and now weird incongruous headlines.

Tue, 06/15/2010 - 12:38 | Link to Comment Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

They must've opened up one of those medicinal marijuana shops near Pimpco's offices.

I do have to disagree with the loss of AAA status. We already know it's toast (just look at those treasury auctions), but you just can't write that down on a piece of paper. Because the psycho, nuke-wielding, yes-we-torture govt doesn't want to have the charade go away. I think if the ratings agencies did (correctly) mark the US down to some B grade, they'd be in trouble faster than you can say "Is that Xe at the door?"

Tue, 06/15/2010 - 11:46 | Link to Comment FranSix
FranSix's picture

I dunno.  If Pimco thought of gold as less price sensitive and more yield sensitive, then they may wish to hold onto their gold for  longer.

The outlook for gold has to be that it will adjust its price to the 40-year inflation adjusted average, which in 2009 is calculated at $1673/oz. U.S. according to shadowstats.com.

Given the low yield environment for short term treasuries and any form of short term money, and the fact you can leverage up gold 100X without risk of failure, then banks and bond holders aught to be  looking at gold very, very seriously.

If debt to GDP grows to 200% or more in all countries, then that inflation-adjusted average calculated in 2009 will obviously have to be adjusted that much higher.  Throw into the mix a possible negative yields on either the repo or discount rate, you have Fekete-like price adjustment backwardation in the cards for gold.

http://stockcharts.com/h-sc/ui?s=$GOLD&p=M&b=5&g=0&id=p29560442230&a=182333562&listNum=2&listNum=2

 

http://www.golddrivers.com/chartsmember.aspx

 

Tue, 06/15/2010 - 11:50 | Link to Comment jkruffin
jkruffin's picture

Is it possible that Pimco is now expecting massive inflation, and the seizure of gold again by the gov???? It happened before, and you can expect Bernancompoop and Gutnher to screw anyone in their way.

Tue, 06/15/2010 - 12:41 | Link to Comment Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Nah, I think they're just trying to talk gold down so the sheeple don't stampede the local coin shop. If Pimco owned gold, theirs wouldn't be the one getting confiscated. Only little schmucks who kept in their Fed member bank's safe deposit box.

Tue, 06/15/2010 - 12:57 | Link to Comment Mako
Mako's picture

I don't think the writer there even knows what "inflation" is. 

Tue, 06/15/2010 - 11:44 | Link to Comment mdwagner
mdwagner's picture

http://www.huffingtonpost.com/2009/05/21/pimcos-gross-us-at-risk-o_n_206588.html

PIMCO said the same about AAA rating over a year ago.

Tue, 06/15/2010 - 11:46 | Link to Comment bugs_
bugs_'s picture

ZeroStress.  KING DOLLAR.

Tue, 06/15/2010 - 11:48 | Link to Comment unwashedmass
unwashedmass's picture

 

gold just broke 1231....adios JPM couldn't happen to nicer guys.

Tue, 06/15/2010 - 12:05 | Link to Comment EscapeKey
EscapeKey's picture

1235...

Tue, 06/15/2010 - 12:36 | Link to Comment BumpSkool
BumpSkool's picture

... if you think JPM is short Gold - you are misguided. They are very long.

Tue, 06/15/2010 - 11:50 | Link to Comment unwashedmass
unwashedmass's picture

 

gee....ya think gold might be breaking out cause the stock market is so fake now that ben has given the little people NO ALTERNATIVES?????????????????????????????????????

ya think? law of unintended consequences, bennie boy. You allow the low volume crap meltups and destroy the free market, the peasantry ain't as dumb as you need them to be.

Tue, 06/15/2010 - 11:52 | Link to Comment Turd Ferguson
Turd Ferguson's picture

+1

Tue, 06/15/2010 - 11:51 | Link to Comment trav7777
trav7777's picture

So what, they sold a Krugerrand?

Tue, 06/15/2010 - 11:53 | Link to Comment Ras Bongo
Ras Bongo's picture

It makes perfect sense.

Gold is about to be taken down because there is no inflation, but deflation.

QE2 will get kick started once the dead cat bounce is over.

Inflation will only start to be apparent afterwards, once the whole world realizes that USD is worth jackshit and liquidates US bonds.

 

 

 

 

 

 

Tue, 06/15/2010 - 11:59 | Link to Comment luigi
luigi's picture

I think the whole world is already aware of the fact that USD is worth what you say: it's just that you think twice before liquidating en masse bonds of a Country with such a large thermonuclear arsenal... the only big difference between Greece and the US, btw.

Tue, 06/15/2010 - 12:49 | Link to Comment tmosley
tmosley's picture

That might stop a big nation like China (though they are unlikely to be phased by such threats), individuals certainly don't think of such things when changing their asset allocations.

Tue, 06/15/2010 - 12:02 | Link to Comment MarketTruth
MarketTruth's picture

There is no inflation? Over what time period because as i see it over the past two years there is indeed quite a bit of inflations IN THE REAL WORLD (read: not the gov numbers). Many goods and services costs are going up to the tune of 15%+, with some far higher. The problem with gov numbers is how they are calculated and how the gov changes this calculation method to best suit their own goals of making everything look 'better than expected'.

Tue, 06/15/2010 - 12:05 | Link to Comment MsCreant
MsCreant's picture

This is a dog race that hasn't run yet. Folks are still placing bets. Right now, if you are the day trading type, there should be a massive unwind that sinks the price of most everything, and you have to decide if gold will be one of those things. The other contenders are the folks who believe that there will be a crisis of confidence sooner than the deflation drama can play out. Short term on gold you would have to decide if there are more of the first crew or the second crew and place your bets accordingly, ever shifting your bet as you think the public will shift their bets. 

In the end, long, Gold will always be the answer. I'll just hold. I am not smart enough and I can't handle the stress of trading it up and down.

Tue, 06/15/2010 - 12:41 | Link to Comment DosZap
DosZap's picture

MsCreant,

I am of your opinion, sure it MAY go down like '08, but WHO knows?.

Even if it does, Inflation will be back so fast, we may not have a shot at regaining positions, esp physical. .

I am staying on this horse..........takes too long to build a position.

Tue, 06/15/2010 - 14:12 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

+ $1230 MsCreant.

I have a proven record as a lousy trader.

I just buy (as any money comes in) and hold physical Gold.

Tue, 06/15/2010 - 11:53 | Link to Comment Kina
Kina's picture

Pimco want to buy some cheap gold? Are they copying the GS contrarian style?

Tue, 06/15/2010 - 11:55 | Link to Comment hamurobby
hamurobby's picture

Risk on for short term, back to gold by the end of the year?

Tue, 06/15/2010 - 11:59 | Link to Comment redrob25
redrob25's picture

Did they sell gold or just sell Gold ETFs. The paper is a (likely worthless) derivative of the physical. Maybe the figured out ETFs are a scam and decided to get out early while the paper has some value.

Ras Bongo also has a good point. Maybe they realize the paper is just for trading and not holding, realize the gold price suppression is about to begin again in earnest, and are taking profits. They'll buy on the dip, and rinse - repeat.

Tue, 06/15/2010 - 12:43 | Link to Comment DosZap
DosZap's picture

redrob,

I do not see Pimco, holding Physical period.

Tue, 06/15/2010 - 11:57 | Link to Comment BGO
BGO's picture

Maybe Pimco needed some cash.

Tue, 06/15/2010 - 11:57 | Link to Comment Threeggg
Threeggg's picture

El-Erian: It depends on what else you have in your portfolio. I can tell you that we had an allocation of gold in our multi-asset products, and we've halved it recently. We still think it makes some sense to have an allocation to gold, but not as much as we used to.

 

http://www.fool.com/investing/general/2010/06/02/pimcos-ceo-stay-on-the-sidelines-now.aspx

 

 

Tue, 06/15/2010 - 11:58 | Link to Comment MarketTruth
MarketTruth's picture

Seems to me there is a (more) concerted effort to down talk gold now. Ok, usually there is the 'normal' noise, yet now it seems they are turning up the jabber jawing volume. Face it, all they have left is jabber jawing as the buying with physical delivery demand is probably finally at a breaking point for the paper pushers. Agreed we have been hearing physical squeeze paper for years, yet have a feeling the time may have finally arrived where the ability to deliver physical is reaching critical mass. GLD was a nice paper cap to avoid physical, yet uptics in many countries buying physical may be causing the open market supply depletion. Call it paper gold death by a thousand blows.

Tue, 06/15/2010 - 11:59 | Link to Comment lbrecken
lbrecken's picture

why are the dopes then buying treasuries?

Tue, 06/15/2010 - 12:08 | Link to Comment jkruffin
jkruffin's picture

I was just about to ask the same thing.  Didn't Gross come out a few days ago and say they have been buying T's the past several weeks again? 

I'm looking at that, and what was said today, and I am wondering to myself "WTF"? 

Tue, 06/15/2010 - 12:00 | Link to Comment unwashedmass
unwashedmass's picture

 

end of the year, laughing? are you watching the boyz HFT the market this morning? they are the people trading.....the peasant horde is not arriving to take the stocks off their hands at these ridiculous prices.....

what's more, this morning the online brokers are out with their figures, and they show that retail is openly leaving stocks.....their trade numbers are off 20-30%.....

so what? you're going to wait to get into gold for the end of the year? if you don't have it by the end of the month, you could be cooked.

this game is ending. there are cracks all over.

Tue, 06/15/2010 - 12:02 | Link to Comment surfersd
surfersd's picture

Market hated that news by Pimco. Gold decided to rally $12 . Still gold is rather toppy in hear. Maybe Bill Gross sold of his holdings waiting to buy during the next, sell-everything now washout. He needs to make sure he has enough gold around so he furnish his next add on of his $30 million Newport Beach mansion.

Tue, 06/15/2010 - 12:09 | Link to Comment unwashedmass
unwashedmass's picture

you have to wonder at what point the boyz will realize that the peasantry is not going to show up and buy the stocks they now own at the most ridiculous prices....

that's going to be a fun day...watching them HFT back and forth and try to dump the old hot potatoes on each other....

rolling.

Tue, 06/15/2010 - 12:10 | Link to Comment monmick
monmick's picture

What is half of nothing?

I also tripled my exposure to BP this morning...

Tue, 06/15/2010 - 12:23 | Link to Comment MsCreant
MsCreant's picture

You bought two more houses on the Gulf of Mexico to add to the one house you already had?

Tue, 06/15/2010 - 12:35 | Link to Comment monmick
monmick's picture

No. I had shrimps for breakfast and a double portion of red snapper for lunch...

Tue, 06/15/2010 - 12:49 | Link to Comment bigdumbnugly
bigdumbnugly's picture

nothing better than a double portion of red snapper for lunch.

otherwise known as the nooner special in some parts...

Tue, 06/15/2010 - 13:16 | Link to Comment MsCreant
MsCreant's picture

Not if it is diseased, no afternoon delight there.

Tue, 06/15/2010 - 13:31 | Link to Comment schoolsout
schoolsout's picture

red snapper now illegal to keep off SE coast...

 

 

edit....double entendre, tricked me.  My mind is always on fish.

Tue, 06/15/2010 - 13:50 | Link to Comment bigdumbnugly
bigdumbnugly's picture

won't even get into talking about the shrimps he had at breakfast.

to each his own...

Tue, 06/15/2010 - 13:17 | Link to Comment MsCreant
MsCreant's picture

LOL!!

Tue, 06/15/2010 - 12:11 | Link to Comment unwashedmass
unwashedmass's picture

 

cap't, capt!!! i'm givin' 'er all i can!!!!! and its going nowhere.

Tue, 06/15/2010 - 12:13 | Link to Comment illyia
illyia's picture

Oh. So that's what ramped gold... at around noon...

That's why I was checking in.

Ta.

Tue, 06/15/2010 - 12:17 | Link to Comment Grifter
Grifter's picture

Looks like Gold & Silver are having a "Viagra Moment" at present...

Tue, 06/15/2010 - 12:19 | Link to Comment Bankster T Cubed
Bankster T Cubed's picture

the "markets" are not worth thinking about anymore.   It doesn't matter what anyone does.   The banks and their whores in government have pushed us beyond the point of no return.  We are fucked no matter how we "play the(ir) markets"

every day is more absurd

because of what they've done

this condition does not lead to prosperity

Tue, 06/15/2010 - 12:31 | Link to Comment jkruffin
jkruffin's picture

Yep, best way to play, is not to pay!!!!  DON"T Pay on Anything!!!  Make them take you to court 3-4 yrs down the road, then don't show up, and all you get is a judgment.  Ow, don't hurt me LOL.  In the meantime, I will pocket all my earnings.  Credit score means squat when the crooks aren't lending anyway. In 7yrs you have a new clean credit report and it didn't cost you one red penny.

Tue, 06/15/2010 - 12:52 | Link to Comment DosZap
DosZap's picture

jk, Just make sure to pay your utilities......... Local Muni's, are not forgiving like the Unca.........I have read numerous accounts of people losing paid for homes, over unpaid utility bills. One lady, owed $3k, and they foreclosed, Sherriff came and evicted her. Lost it all. Many others, same thing, jail time......for non pmt of UTILITIES!!, stay there till they get the  funds!!.

Cities, are not playing.

Tue, 06/15/2010 - 12:52 | Link to Comment ydderf1950
ydderf1950's picture

i like your thinking

Tue, 06/15/2010 - 12:26 | Link to Comment firstdivision
firstdivision's picture

Selling gold and buying renminbis

Tue, 06/15/2010 - 12:27 | Link to Comment lawrence1
lawrence1's picture

"Man invented language in order to lie." But the lies are becoming less effective when it comes to their effort to

control gold.  Ignore the fiat

price-noise, only the number of ounces you have counts.
And fuck Pimco, Buffet and all the economist whores and thank Sinclaire, GATA, fofoa and others for their vision... and Tyler et al of course. v

 

 

Tue, 06/15/2010 - 12:29 | Link to Comment ddtuttle
ddtuttle's picture

PIMCO probably own paper gold, and made a nice return in the last few months.

There are predictions of a separation between physical gold and paper gold, maybe they're just avoiding that.  Besides, they didn't sell it all, just changed allocation.

Tue, 06/15/2010 - 12:31 | Link to Comment Marc45
Marc45's picture

Apparently PIMCO hasn't had any trouble finding buyers for their gold. :)

Tue, 06/15/2010 - 12:41 | Link to Comment bc0203
bc0203's picture

PIMCO has a big boat to steer. To me, it sounds like they are steering towards shorter-maturity Treasuries and less gold for the time being.

As for their reasoning on Gold, who knows? Maybe they see a gold bubble coming, or figure that the BIS ultimately views currency transactions in term of SDRs, so the price/supply of gold may matter less than some want it to? They are a private entity and a market mover; it's their right to be a little poker-faced from time to time.

Tue, 06/15/2010 - 12:51 | Link to Comment lawrence1
lawrence1's picture

Help!  The real issue is the proportion of gold to silver ownership to have.  I'm leaning to 60/40 favoring gold.  Any thoughts,

reading suggestions?  Thanks

Tue, 06/15/2010 - 12:54 | Link to Comment DosZap
DosZap's picture

Sounds like a plan to me............depending on your Net worth, and the ratio of your holdings.

Tue, 06/15/2010 - 13:15 | Link to Comment Barmaher
Barmaher's picture

After struggling with that question I decided upon 10:1 silver:gold by weight.  Over time I expect that the ratio of > 60:1 gold/silver price will move closer to the natural 17:1 ratio once the manipulation is stopped and the market takes over.   

Tue, 06/15/2010 - 14:23 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

The wealthier you are the more inclined I would hold more gold (by value).  "Wealthy" of course is subjective.

Also, silver is historically cheap vs. gold, so if you want to add a speculative component to your holdings, yeah, OK, buy more silver.

So, like the above posters replied, depends on your circumstances.  The fact that you are buying BOTH though means you are 90% there.

Tue, 06/15/2010 - 12:54 | Link to Comment Deflationburger...
Deflationburger with Fleas's picture

given recent history, whatever you are doing, you probably dont want to be on the other side of the trade with PIMCO.  Just sayin..........

Tue, 06/15/2010 - 12:55 | Link to Comment Pooh-Bah
Pooh-Bah's picture

Paper is Pimco's game. It must be getting scary.

Tue, 06/15/2010 - 13:51 | Link to Comment Anarchist
Anarchist's picture

Paper or physical? Anyone know?

The vast majority of people have been caught in a deflationary spiral for three years. Their house and investmenst have taken a large hit. We will see more deflation before inflation takes hold.

Of course if your wealth takes a hit, you could argue it is inflation since you have to give a bigger percentage of your wealth for the same goods. 

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