As South Korea Sets Off To Formally Expand Its Gold Holdings, Is China Far Behind?

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Mon, 10/18/2010 - 09:03 | 657949 septicshock
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GOLD Bitchezzzz!!     Had to be said.

Mon, 10/18/2010 - 09:49 | 658016 Michael Victory
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In case you missed it..

This month's interview was with another Von Mises Austrian, Robert Murphy.
The primary topic of our conversation: Sound Money & AU

Link to the interview:


Mon, 10/18/2010 - 13:48 | 658687 midtowng
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It wasn't long ago that the South Korean CB was talking trash about gold. The chairman was basically laughing at the notion that they would ever be buying it.

How times have changed.

Mon, 10/18/2010 - 09:03 | 657951 cossack55
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Nothing better than eating Ramon and Kimchee with 24K chopsticks.

Mon, 10/18/2010 - 09:09 | 657958 Illya Kuryakin
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Who is Ramon?

Mon, 10/18/2010 - 09:11 | 657962 Cognitive Dissonance
Mon, 10/18/2010 - 09:22 | 657986 Temporalist
Temporalist's picture

Ahh the memories...  I still remember the videotape display cover for that movie when 7-11 used to rent movies.

Mon, 10/18/2010 - 09:41 | 657997 Cognitive Dissonance
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Video "tape"? What's a video "tape"? :>)

I was certain many here on ZH would understand the reference. But anytime I use a reference that is more than 10 years old, I always include a link so others may enjoy, or at least understand, the genesis.

Gotta help the younger generation understand us old(er) farts, otherwise they'll warehouse us in the nursing homes or start practicing "mercy" killings. :>)

When you don't "have" value in the eye of the beholder, you'd better start creating some fast.

Mon, 10/18/2010 - 11:08 | 658110 GoinFawr
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Gotta help the younger generation understand us old(er) farts, otherwise they'll warehouse us in the nursing homes or start practicing "mercy" killings. :>)

Logan's Run style?


Mon, 10/18/2010 - 11:21 | 658264 RockyRacoon
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CD, while walking thru a thrift store with my daughter some 15 years ago, she picked up an item and asked me what it was.   It was a Led Zep 8-track tape.  I had a fun time telling her what it was.  My buddies and I listened to that an other fine musical interludes  while I was in the Air Force, driving around in one of the guy's camouflaged VW bus.  There was some alcohol involved.

Tue, 10/19/2010 - 04:03 | 660584 66Sexy
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sabbath; we sold our soul for rock n roll.... 'Warning' interrupted in the middle of tony iommi's epic guitar solo... fade out.. fade in.... track 3 to track 4. they called 'em 8 track's but they had really 4 tracks.

Mon, 10/18/2010 - 10:07 | 658059 DarkMath
DarkMath's picture

Oh man, CD, I laughed my ass off on this one. You get a gold star for making my morning.

Mon, 10/18/2010 - 10:43 | 658140 Cognitive Dissonance
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I love that I can showcase my sick mind on ZH. I'm always amazed what pops into the brain whenever I read stray words or phrases. It speaks to some dark place I haven't fully explored.......yet. 

Mon, 10/18/2010 - 09:36 | 658010 papaswamp
Mon, 10/18/2010 - 09:44 | 658025 cossack55
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Thanks for the assist, Ps.  This is what happens when the coffee is not yet perked.  Or maybe I was thinking about the Spanish banks while typing.  Hmmmm.

Mon, 10/18/2010 - 09:58 | 658045 papaswamp
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No worries..

Mon, 10/18/2010 - 09:07 | 657954 etienno
etienno's picture

"A mere unsubstantiated whisper", do you mean a ZH rumor creation ?

Mon, 10/18/2010 - 09:07 | 657955 bigdumbnugly
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so that's why so many people have been eyeing my gold tooth in a totally different way of late.

i don't even trust my dentist's intentions anymore...

Mon, 10/18/2010 - 09:08 | 657957 cat2
cat2's picture

When is gold going to pull back?  I need to add more...

Mon, 10/18/2010 - 09:16 | 657970 Cognitive Dissonance
Cognitive Dissonance's picture

Don't wait for a pullback. If you think Gold is going to double in the next 5 years (Do you?) what happens if it doesn't pull back until it hits $1,500 or $1,600, then doesn't come back to here and now? Or what happens if you don't have the nerve to buy it when it does pull back because you think it might pull back further, then it reverses and takes off and you missed the boat?

You like Gold, buy Gold when you can. I'm assuming you understand that you want to take physical possession. You DO want physical possession, right?

Mon, 10/18/2010 - 09:23 | 657990 Jake Green
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I've been buying gold coins from my local coin dealer; but he charges like an extra hundred bucks over spot. I like that the tranactions are anonymous, but do you think that fee is too steep?

Mon, 10/18/2010 - 09:31 | 658000 Temporalist
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Mon, 10/18/2010 - 09:32 | 658002 Cognitive Dissonance
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Not when the Internet stores are charging $50 to $80 (or more) and they record your transaction.

You'll think the premium was cheap once it goes to $200. 

Mon, 10/18/2010 - 09:56 | 658041 DosZap
DosZap's picture

Your getting SCREWED, do you feel it?.If being Anon is worth a 100% markup, ok.

He's charging you DOUBLE, if your stateside.

Mon, 10/18/2010 - 10:04 | 658056 tmosley
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I hate to tell you, but gold hasn't been $100 since the 70's.

These days, $100 is more like an 8% markup.  This is worth it for Eagles, Maples, Philharmonics, and certain other specialty bullion products, but not for Kug's, rounds, or bars.  If you are paying that big of a markup, you should shop around.  If everyone else is charging the same thing, then you're probably good.  If you can get it for less, great.  The best you are likely to get is a $20 discount IF you are buying the name brands mentioned above.

That said, I might be behind the times, as I haven't been buying much since the latest run-up.  Could just as easily be that premiums have just plain gone up, which makes sense, since APMEX appears to be running out of a lot of products.

Mon, 10/18/2010 - 11:27 | 658300 DosZap
DosZap's picture


you misunderstood my figure.

If he is paying a $100.00 over spot for Mapes,Phils, he's paying a near 100% markup  more than he has to.

Why pay a $100.00, when you can get the same thing for $50.00?.



Mon, 10/18/2010 - 12:58 | 658561 tmosley
tmosley's picture

Ok, I was a bit confused there.  Makes more sense now.

Gold Eagles are a $64 premium to spot on APMEX right now.  $36/oz of gold is not a bad price to pay for anonymity, and certainly isn't a rip off.

Mon, 10/18/2010 - 13:16 | 658599 Cognitive Dissonance
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2.6% above and beyond the spot price (plus the "normal" Internet premium) to remain hidden in the shadows. A small price to pay.

Tue, 10/19/2010 - 11:29 | 661323 DosZap
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24k Mapes are $53.00,screw Eagles @1-10...........$47.00/oz,is a lot to some folks if you  buy 10 at a pop,(for DCA) that's $530.00.

Most of the world prefers 24k anyway.

Plus, their is NO anonymity,if you ever sell it your tagged.

Black Mkt, barter,fine, if we get to that point we're screwed anyway.


Mon, 10/18/2010 - 09:09 | 657960 Cognitive Dissonance
Cognitive Dissonance's picture

South Korea thinks they should own more of the barbarous relic? Heavens to DMZ, why would any central bank wish to do that?

They can't eat it, it costs "money" to store, it doesn't earn interest. Silly rabbit, why would they want something that's been around for thousands of years when I have some freshly printed greenbacks for them? In with the new, out with the old.

Get with it dudes. :>)

<sarcasm off>

Mon, 10/18/2010 - 09:16 | 657971 Shameful
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Now that you mention the DMZ, how do you think policy makers in the US will respond?  After all the US still has a decent number of troops there and we are nominally allies.  It's clear they would have to lighten the UST load to get gold, wonder how much of the US being there factors into their calculus.

Mon, 10/18/2010 - 09:23 | 657983 Cognitive Dissonance
Cognitive Dissonance's picture

I think South Korea is so far behind the eight ball...

With just 14 tonnes of gold – or 0.2 per cent of $290bn reserves – Seoul is one of the smallest holders of gold among large economies.

...with regard to owning Gold as a significant portion of their foreign currency reserves precisely because the US responded to SK back room feelers and discussions. That's why in my view this is so significant.

Anyone else?

Mon, 10/18/2010 - 09:34 | 658006 bigdumbnugly
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hell, even johnny bravo probably owns 14 tons of gold.  S.K.'s got a whole lotta catching up to do.

Mon, 10/18/2010 - 09:38 | 658013 Cognitive Dissonance
Cognitive Dissonance's picture

The only Gold Johnny Bravo has is the minuscule amount he's able to lick off his master's ring.

Mon, 10/18/2010 - 09:47 | 658029 Johrny Bravo
Johrny Bravo's picture

I certainly didn't find any kissing my master's ass!

Goled to $900 bitchez!

Mon, 10/18/2010 - 10:32 | 658111 Cognitive Dissonance
Cognitive Dissonance's picture

I suspect you are correct, that the genuine imitation (Johrny Bravo) has been kissing something other than the master's ring. :>) 

I hear they have anal rings.

Mon, 10/18/2010 - 11:46 | 658372 bigdumbnugly
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yep, they do.  they're known in the biz as bullseyes.

Mon, 10/18/2010 - 13:19 | 658608 Cognitive Dissonance
Cognitive Dissonance's picture

God help me.

How do I go about un-knowing this little factoid. It was bad enough suspecting there was such a thing, but to know the actual term is just too much.


Mon, 10/18/2010 - 13:42 | 658668 bigdumbnugly
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truthfully, cd, i just made that up.  but maybe in certain quarters it will catch on...?...

Mon, 10/18/2010 - 14:10 | 658758 Cognitive Dissonance
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Doesn't matter, the damage has been done. It has been burned into my psyche and I will die with that word in my brain. :>)

And I suspect that it does exist somewhere out there and that there is a name for it. Always bet on man's moral/sexual depravity and insanity. A look at any large city's police log will confirm my thesis. :>) 

Mon, 10/18/2010 - 12:01 | 658421 Hulk
Hulk's picture

It is very nice to be a genuine imitation CD!

Goled to infinity and beyond Biatchies!

Mon, 10/18/2010 - 13:31 | 658633 Council of Econ...
Council of Economic Terrorists's picture

The bigger issue is China.  In order for the U.S. to win the race to the bottom in currency, China has to quit "manipulating their currency" as Timmah and Obama whine about all the time.  However, China doesn't manipulate it rather it is pegged to the dollar. That's why the administration wants it to float.  The Chinese will only do this if we bomb their military bases and a city where there aren't too many American Corporations (a.k.a. getting the Saddam Hussein treatment).

In related news, on HuffPo there was a write up about creative ways to create jobs.  Number 10 was rapid currency devaluation.  There was a PhD economist spewing that if the currency is debased fast enough it will balance out our exports and imports.  In theory it would work, but in my opinion taking that route would take years for the "jobs to come back" as this would take American companies spending lots of money closing plants overseas and starting some here.  However, he also forgot to mention: 1) China pegging their currency to the dollar, so no matter what we lose this battle. 2) Rapid currency debasement without immediate job creation and with sticky wages = hyperinflation



Mon, 10/18/2010 - 09:36 | 658009 Temporalist
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"Bring us some fresh wine!  The freshest you've got"  "He doesn't realize he's dealing with sophisticated people here."

-Navin Johnson

Mon, 10/18/2010 - 10:20 | 658083 gmrpeabody
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Too funny...

Tue, 10/19/2010 - 04:06 | 660588 66Sexy
66Sexy's picture

gold is critical to the legitimization of any new coglomorate of currencies.


think about it; which would you prefer in trade.. a currency with even a quasi gold backing, or a fiat government controlled currency

Mon, 10/18/2010 - 09:13 | 657967 Conrad Murray
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Taekwondo the Fed, hang the bankers! 


Monday's music, Steak and Shake:


Mon, 10/18/2010 - 09:14 | 657968 tmosley
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This is big news.  Things are set to accelerate in an uncontrolled and extremely rapid manner.  With news like this, I would suggest that anyone trading in paper metals needs to close out their positions and move all in to physical metal (although short GLD and SLV/long physical gold and silver remains a good bet on the failure of paper vehicles).  

Anyone caught without a physical position when these dominoes start falling is going to be sorry.  There is absolutely no reason to think that the coming event won't occur in foreign markets overnight, meaning you go to bed with gold and silver down, and wake up with both having risen ten fold or more.

I would maintain a position of 100% physical metals (I am overweight silver, which won't change until the GS ratio hits 1:10--this is speculative, safety is 50:50 in dollar terms)) for the next six months before a reassessment, or wait for the event, whichever comes first.  If there is a significant liberalization of some overseas market in the next six months, that is likely where I would direct some of the gold and silver should I liquidate it.  DON'T TOUCH FIAT CURRENCIES UNLESS YOU HAVE TO FOR TRANSACTION PURPOSES.  As far as I am concerned, they are ALL toxic, and will remain so until the PM event has passed (said event will likely weed out the weak/poorly managed currencies--any left standing several months later will likely survive for at least a few more years).

Mon, 10/18/2010 - 09:21 | 657980 Shameful
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Wise words.  It's what I'm doing, but then I have 0 faith in our government, or really most governments.  Not as into silver as you, I like it but I tried to keep my silver holdings to what I can realistically haul around if I need to carry it in a hurry :)  Still not a bad idea to have physical FRNs though.  figure if/when the balloon goes up people will be accepting them for a little while and would be nice to use them to get what you need.

Mon, 10/18/2010 - 09:31 | 658001 tmosley
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To use an Old West metaphor, I would say that owning gold is like owning a farm in Texas in late 1800's.  You could sell that farm for an increasing amount of value, and it certainly preserved your wealth.  Buying silver at this point is like buying a farm where the railroad is going to go.  It will certainly retain its value unless something changes in a major way, but once the train comes through town, you'll own land that is worth many, many times what you paid for it, and it will be very sudden.

I sympathize with moving the silver.  If you have a significant amount, it is very hard to move.  I had to move my hoard last year, and let me tell you, it was NOT fun.

Mon, 10/18/2010 - 09:49 | 658032 Pegasus Muse
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I'll be happy to give you a hand next time you need to move the stuff.  :-) 

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