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Surprising Observations From TrimTabs: "Are Central Bankers Loading Up On Gold?"
When it comes to following the trail of money, capital flows specialist TrimTabs has traditionally focused on the stock market. In the past, TrimTabs' Charles Biderman has discussed how according to any reasonable calculations, there appears to be a key buyer missing among the usual market participant suspects, leading Biderman to conclude that the Fed may be buying stocks directly (or indirectly through Citadel as the case may be). To our surprise, in its most recent release, TrimTabs takes a look at the buyers in the gold market, and ends up with the same question: "Gold prices hit a record high in nominal terms for the second consecutive day. We are not sure who is driving up prices." The speculative conclusion: "Are central bankers loading up on gold as they crank up the printing presses and keep interest rates ridiculously low?" Of course, at first glance this would be preposterous as it has long been accepted that for the Fed a jump in surge prices is a very adverse development. Well, is it? Traditionally rising gold prices have been merely indicative of abnormally high inflation, which for the Fed was a "bad" thing in the past. Not so much any more, or at least since the advent of the "wealth effect" experiment. Recall that it is now the Fed's "goal" to give the impression of inflation (and reality for those who eat and use energy). This is based on Bernanke's false assumption that inflation is much more easily controllable (15 minutes...) than deflation. So while on the surface this may appear to be a preposterous claim, in reality there is nothing that prohibits a gold price surge in the context of the Fed's third mandate.
Full observations from TrimTabs:
Who Is Driving Gold Prices Higher? Speculative Traders and Fund Investors Not Very Bullish. Are Central Bankers Loading Up on Gold as They Print More Money?
Gold prices hit a record high in nominal terms for the second consecutive day. We are not sure who is driving up prices:
- Commitments of Traders data indicates that non-commercial futures traders are net long gold futures by 3.7 to 1, which is a low ratio historically.
- Precious Metals equity mutual funds—which hold mostly mining shares—redeemed 0.4% of assets in the past week. Meanwhile, Real Estate funds and Natural Resources funds attracted 0.8% of assets and 0.5% of assets, respectively. In the past month, Precious Metals funds lost 0.5% of assets.
- Precious metals exchange-traded funds—which hold physical metals—issued only 0.2% of assets in the past week and 0.4% of assets in the past month.
Are central bankers loading up on gold as they crank up the printing presses and keep interest rates ridiculously low?
Whatever the source of the buying, we think investors could do a lot worse than allocate some of their capital to precious metals as fiscal and monetary excess continues around the globe.
Lastly, remember that there has been speculation that various banks are pushing for a mark to market treatment of gold held at central banks. Our own Fed marks its 8,133.5 tons of gold at $42.22/ounce. In other words, if at some point the central bank cartel needs to expand excess reserves even more, thereby creating an even greater "inflationary threat", what better way than to convert held gold from a fixed to a MTM price. For the Fed alone this move would imply a $350 billion "increase" in assets, which would then need a comparable increase in bank reserves (and currency eventually).
In an ironic twist, is gold about to become the "red button" to be pushed in the last ditch case when expectations of rampant inflation need to be created, following the next major deflationary market crash.
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Of course they are, they know hyperinflation is coming and they aim to keep power. The coming revolution must include our emancipation of this gold so it will bu the people who make the rules. Freedom, bitchez!
http://www.youtube.com/watch?v=WLrrBs8JBQo
Term deposits need to come back to Momma - everything post 1980 is a illusion.
Holding wealth in non performing houses is a artifact of this previous invented reality.
The world needs to recapitalise.
At the end of an empire all the sovereign treasury gold gets dispersed into the populace at large. The belief is that the empire is collapsing and the gold will be needed so it is hoarded. Common people store it as coins and bury it and the nobles steal it from the treasury and store it in their castles. The rulers spend the gold on soldiers and mercenaries to try and keep the empire together. This characterized the fall of Rome and amazingly enough huge caches of Roman gold are still being dug up all over Europe, today.
So here's my suggestion. All the ZeroHedge PM hoarders must do their bit for future archaeologists. When you bury your gold bury it with a little ZeroHedge icon placque. They'll think it was some kind of secret religion.
Thank you Mr. Ferguson!
I'm guessing the Bernank is in a mad rush to buy gold with worthless frns before Paul counts the tungsten.
Central bank (non-Fed) gold accumulation is a given as more buzzards circle above the dollar. And what at first was an early trend can very easily accelerate. In a world where natural resources are king, is dollar-based pricing a hindrance to stable growth? More and more are of the negative opinion. Fed policy during the crisis has only accelerated the trend.
If inflation becomes intolerable, the money has to go somewhere. Professor Joseph Conrad wrote a paper in Dec. 2008 describing everything that has come to pass to date. His take on things was that they will ramp the value of gold to soak up all the excess liquidity created by stimulus and monetization. I am starting to agree with him. Anyway, the good doctor has dropped off the face of the Earth since those letters. Maybe the Fed killed him.
But what was the result? What conclusions were drawn from that?
Is marking gold holdings to maket another way to implement 'freegold'?
Central bankers not loading on gold-gold is their enemy,FED provide them with free printed cash,if gold standard apply your house will go in value of 2ounces of gold at best,gold is too tiny market two share it and to have enough game liquidity,think of it,at some point interest rates would by lift up killing some gold bulls or markets crash-then banks may get some gold allmost for free,by the way most mining companies specially Barrick and NEwmount still pay to banks with option to pay in gold,you guys forget one thing-when almost any gold company was rised it was bank lending money and so,banks is oweners of the gold-do not be fooled.when they need,they make sure prices rush is set on and they sell of their part of the stake,rmember,each time some equity rised for exploration company to rise capital-shares given to the broker,which usually connacord or other banking member
too much of finance is avowed and steeped in secrecy to be credible, especially the manipulated world of paper and paper commodities.
to break free, think public banking, public money creation, no more secrecy
Visit the Silver Liberation Army and spread the word:
http://j.mp/f2lkxu
or
http://silverliberationarmy.wordpress.com
The armed citizen replied, "Then bring it Pig."
Did TrimTabs wake up to the knowledge that gold and silver will break the back of this system AS IT WAS MEANT TO BY THE CREATORS OF FIAT?! Unfortunately, it's only for the cyclical re-flushing of the same usurious ass-game once again. Its only fiat thats crashing, PM's are being bought up with this crap paper by the unwashed hands of those who just came out of the bathroom and are eager to pull your GF around the corner and have their way with her. They haven't been selling anything BUT paper Gold and Silver for a very very very long time.
Gold bugs...our odious nemesis has been our bathroom buddy for some time. We've been unwittingly on the same team, using the same outhouse, sitting on the same soiled toilet seat.
Gold and silver is the psyllium that will start the new ponzi sliding, so of course the banks haven't been selling...just buying the PHYS. If we care about where the price of gold (and maybe silver) is going, that's great, NOT, that it will ever remove the parasitical class that undoubtably has more of this crap sitting in their septic tanks than the most sov govs.
The oligarchs in their faked incontinence take a dump whenever and wherever they please. They stick their finger in the party punch and stir it up.
Paper gold is suppressed for the sake of extension of time to consolidate power through Gold ownership. The house, the market maker laughs at the greed as they bump the market and push those on margin into the unflushed toilet bowl! This will continue until the new currency arrives. This was the plan from the beginning, to be able to reboot a new ponzi after the old bowl had been flushed of its contents. Not enough people are potty trained, no matter what we WANT to believe. The game has been refined. The only way out it is now a unexpected stripper arrival event to occur like another tsunami or two, nuclear origami with a habenero burn on the way out, peak radioactive frozen yogurt at Turd Ferguson's shops, maybe another human bottleneck occurs as we're locked inside the stall, Israel attacks Gaza with a filthy toilet brush, hadron collider creates a giant enema.
I can smell it's the U.S. and their IMF janitor that's throwing the pinesol down and suppressing AU prices for long enough time so they can set up that blue dollar, or bancor, charmin double ply, or whatever they may want to call it up and in people's hands. Regardless of peak oil, what we have robust cognitive dissonance (as I'm sure the honorable Cognitive Dissonance would concur), and now that its here, they can make most of chumps into infinity. The full retard american public will eagerly fall in line with the new improved semi-fiat (temporary until made pure fiat again). Those countries that use this new currency won't confiscate AU physically, they will simply, with the publics consent, make it difficult to trade, make liquid, or move through capital controls. You'll need to hold on to PM's until the proper time to liquidate them after the new currency arrives, regardless of whether they are only partially backed by gold (or a basket of currencies, commodities, etc). Cash in at least some of your stash at that time, or you'll be waiting in line for the urinal like you're at a Gwar concert.
Yes, the cyclical ponzi lives and breaths as long as there is humanity that uses the same toilet. Just teach your children to wash their hands, recognize the cycle, symptoms, and the truth that allows them not to let it consume them spiritually.
And... remember to do both...BRFN, BTFD, and for God's sake do a courtesy flush!
Hook Line and Sphincter, always in some sort of fishing accident
Ouch! I feel like I just slammed a whole bottle of tequila.
It was anejo, triple distilled and aged in oak barrels. No worries, you won't have a hangover tomorrow.
Where's the next Andrew Jackson to take on the den of vipers and thieves?
He margined himself too highly and is now locked in the stall with a bad case of AU colon.
There it is, Dr. P-chop.... i've been a wonderin' when someone would bring up Gen. Andy J !
Because this is where it gets a tad confusing. You see, Andrew HATED, DESPISED the British, for 2 very good reasons: #1. they "ETHNICALLY CLEANSED his family (parents) from Scotland, settled 'em in to Ireland as MERCENARIES (to ethnically cleanse the Catholic Irish out of "Ulster Plantation" as Northern Ireland was known), and being lorded over by the British was a very deadly & dreary business (e.g., on Royal Navy sailing ships, the men could be FLOGGED - to death - for just about ANYTHING.) So the Jackson family jumped at the opportunity to migrate to America, where it was said that every god-fearing working (Protestant) family could earn THEIR OWN DAMN FARM. Well, needless to say, the Brit OVERLORDS made life for the colonials (Americans) miserable too, so the Jackson sons (their father had died in a land-clearing accident) volunteered for the patriot army, all three Jackson boys (Andrew & his 2 older brothers) were captured early in the war in western North Carolina fighting, and eventually held in the ghastly British "prison hulks" in Charleston harbor, which were actually CONCENTRATION CAMP DEATH SHIPS. All three of the Jackson boys, AND their mother (who volunteered as a nurse aboard the pestilential ship until she won her sons' release on parole) caught some deadly disease(s) before their parole; one Jackson boy died on long march home, Andrew's mother and other brother died once they arrived home, and Jackson barely survived himself - a genuine combat veteran orphan before he was 15.
It was for these reasons that Jackson had a life-long hatred of the British - and went to MANIACAL lengths to combat them at the Battle of New Orleans, 1814, which he won through the sheer stubborness of his, and his frontier mens', character. (And their well honed frontier shooting skills.)
But what is important is, that by the outbreak of the Civil War, all Jackson's surviving family & kin, were ALLIED WITH the British, IN SUPPORT OF SLAVERY, AGAINST the United States, where enough free men of the north feared the autocratic slave owners (men, like Jackson, Washington, Tyler, even Jefferson & Madison, who had DOMINATED the US presidency) that Northern men were willing to FIGHT to prevent the spread of slavery in Kansas and other new states.
SO - Jackson HATED THE BRITISH, but his descendents & kin were ALLIED WITH the British, who were IN SUPPORT OF SLAVERY, and sought to divide the USA into two parts that could be easily manipulated & controlled from the City of London.
Guess what???? THAT's WHERE WE ARE TODAY! with the city of london banksters (r's) DICTATING to America's congress on EVERY issue under the sun, from "DEREGULATION" LICENSE to LOOT pension funds & securities markets, to GUTTING the US industrial economy, to LOOTING the Treasury, to DEBASING our savings (with bernanke dollars) to of course the "KILL ANYONE WHO MOVES in Mideast" war lobby, etc. etc. etc.
sorry for the long rant, but no one seems to catch the subtlety, ol' AJ may have HATED & FOUGHT the British (and their central bankster money extortion cabal) , but his kin were ALLIED WITH the Brits, against the USofA during the Civil War, and, today, the American wealthy elites (especially of the plantation, finance, & resource extraction variety - miners, oil-men, cotton growers, fishermen, & especially Wall St. big money oligopoly/monopoly financial cartels, etc.) are ONCE AGAIN siding with the City of London extortionists.
Not at all surprised. It is an essential step in wealth confiscation. Not unlike Goldman betting against the CDO shit they sold.
Bernanke is right. Inflation is much more easily controlled. Say your intel. You're selling maybe 3 billion a quarter worth of chips. But you want to look like a big shot like you're kicking AMD's ass. So you just pretend you sold 11 billion in a quarter and move money around through shell companies tha are complete bullshit.
Deflation is when the population says fuck you and stops participating in goods and services other than food clothing and shelter and a few luxuries. He can't control that at all. The companies have lost pricing power and as cable companies raise prices people say fuck you and they've actually lost subscription for the first time in years.
As James Cameron fucks around with 60 fps movies and tries to work with monopolist Imax to make theaters charge 12 bucks a movie instead of 9 bucks because it's imax people say fuck you and you end up with movies that have one person in the seat on opening night.
Then you got your apple. Who claims to sell 43 million phones when at&t publicly reports 15 million accounts, and orange sucks up a competitor giving it 20 million phones in total. While bullshit fuck heads run around claiming that everyone in europe has 4 cell phones and they've got 9000 percent market penetration.
If you think shadow banking is fun and mysterious. How about a completely full of shit not a number worth wiping your ass with shadow economy.
Oh ya dont' forget the microsoft fuckheads who keep claiming that there's this mysterious group of 4.5 million xbox owners out of their entire pool of like 8 million who will buy everything they sell on opening night no matter how retarded the toy or game is. Only you can't find these retards because apparently they are all too busy consuming games that cost 60 dollars and demand their attention for as much as 7 hours. Or in some cases 40 hours. Though I'm sure the people who bought kinect can play with it 24/7 without ever getting tired of it.
And this shadow group of people with completely false and fake balance sheet's get free money shoved to them from banks who then go out and buy up the competition and kill thier managers and install thier own which makes the formula for what the compeition created go right out the damn window because thier new manager is a ass hat.
Apple couldn't give away 45 million iphones in one year if the population of the earth was doubled. And intel can only sell thier chips to their dumbass corporate buddies every 6 to 8 years when they finally throw out their crappy computer equipment or worse auction it off so that the data can hosed off it and thier fucking lies can get spread all over the planet because the cheap bastards want the 30 bucks they get from selling it but don't want to pay the IT person 15 bucks to wipe the hard drive. Or even worse "give it away to charity" which means it goes in a dump yard in africa where poor people pick through for shit to survive and find all these computers loaded with contact information that they sell to mafia types who send out email after email from a "prince" who needs to transfer 8 million dollars into your bank account. Just send the account information.
So... you're saying the whole economy/market structure is a Ponzi.
Amen.
Mr Rocky Raccoon, I have been noticing that your postings of late have been quite relaxed and less frequent. Did you move to the garden of Eden? If so, how dare you! For a while you were actually, cantankerous coatimundi.
So many garbage cans to knock over .... so many bags of trash to raid .... so little time ....
I find that I can't respond to all the stuff I read. There are many ZH articles and there has been no concomitant increase in daylight hours. I'm a stamp and coin dealer so I stay pretty busy making a normal living as well. I'll try to do better, I promise.
Besides, the current crop of trolls is not nearly so high in quality as the old ones. No fun.
What if the fed all bought DIVIDEND STOCKS the gift that keeps giving like jelly of the month club clark griswald got in christmas vacation. Free money from dividend paying corporations.
They sure as shit are not buying retail stocks!
I am thinking that the "inflation adjusted" valuation of gold to dollars should be adjusted higher.
"Trim Tabs" just has to be a diet product
Why wouldn't the Fed buy EVERYTHING? Woudn't you if you could print money and hide the fact?
I was wondering who was in the tractor trailer beside me at the mint.
I thought the horns of the chairsatan looked familiar
Thanks now I know.
BTFD Bitchez - hold the rise. BTFD bitchez, hold the rise, BTFD.........
This is what FOFOA has been positing all along.
Duh.
What is this "Fed's 8134 tons of gold"? That is NOT their gold.
I was wondering whether JPM and co-conspirators were holding down gold so they could buy it up. The big question is whether this is preparation for going back to a gold standard.
But no matter WHAT those scumbag predators are doing, they will not steal our gold, and they will not keep any gold they manage to buy via the paper scam being run by JPM now. Those bastards need to go down, all the way down, and then get ground into tiny little pieces and burned.