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"Do You Own Gold?" Ray Dalio At CFR: "Oh Yeah, I Do"

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From GoldCore Gold Bullion

"Do You Own Gold?" Ray Dalio at CFR: "Oh Yeah, I Do"

Today’s AM fix was USD 1,758.50, EUR 1,361.91, GBP 1,084.96 per ounce.
Friday’s AM fix was USD 1,773.75, EUR 1,361.28and GBP 1,089.19 per ounce.

Silver is trading at $33.87/oz, €26.31/oz and £20.98/oz. Platinum is trading at $1,614.00/oz, palladium at $641.80/oz and rhodium at $1,150/oz.

Gold climbed $4.70 or 0.27% in New York on Friday and closed at $1,773.10. Silver hit a high of $35.16 in New York on Friday, but it still finished with a loss of 0.29%. On the week, gold was up 0.08% while silver fell 0.3%.


Ray Dalio, founder and co-chief investment officer of Bridgewater Associates, L.P. 

Gold was off its 7 month high on Monday but the recent wave of central banks (ECB, US & BOJ) who started printing money and bond buying again is very supportive for the yellow metal and euro gold remains close to record highs (see chart).


XAU/EUR Exchange Rate Daily, Sept. 2010-2012 - (Bloomberg)

Gold has run up gains of 10% in the past 5 weeks, the biggest since September 2011, after the ECB and Federal Reserve announced new ‘stimulus’ measures to bolster up their economies.

Gold is slightly over bought in the short term and the recent spec activity on the COMEX suggests there may again be short term weakness.

Ultra loose monetary policies will soon send investors to gold like swarming bees to honey in the hive.

Currency debasement and the very slow dawning of what competitive currency devaluations and currency wars will do to paper currencies  is leading to wealthier people who had previously ignored gold looking to diversify into the precious metal.

In South Africa, authorities have issued an arrest warrant for ANC militant Julius Malema, a key supporter of wildcat strikes that have spread from platinum to gold producers and caused violence and deaths in the past few weeks.

The situation in South Africa remains very unstable and will be supportive of both platinum and gold prices.

This week US economic data to be released follows:  Tuesday - The Case-Shiller 20-city Index, Consumer Confidence, and the FHFA Housing Price Index .  Wednesday - New Home Sales. Thursday -Initial Jobless Claims, Durable Goods Orders, GDP, and Pending Home Sales. Friday -  Personal Income and Spending, Core PCE Prices, Chicago PMI, and Michigan Sentiment.


XAU/GBP Exchange Rate Daily, Sept. 2010-2012 - (Bloomberg)

Ray Dalio, founder and co-chief investment officer of Bridgewater Associates, L.P. and one of the most successful hedge fund managers of all time told Maria Bartiromo last week that he owns gold and that he sees no “sensible reason not to own gold”.

The interview was part of the Council on Foreign Relations (CFR) Corporate Program's CEO Speaker Series, which provides a forum for leading global CEOs to share their priorities and insights before a high-level audience of wealthy and influential CFR members. 

The respected hedge fund manager suggested that a depression and not a recession was likely and warned of social unrest and the risk of radical politics as was seen with Hitler and the Nazis in the Depression of the 1930’s.

Dalio spoke about how “gold is a currency” and when asked by Bartiromo “do you own gold?”, he smiled and said “Oh yeah, I do.” The admission elicited a laugh from the CFR audience.

He continued:

"Oh yeah.  I do.  I think anybody, look let's be clear, that I think anybody who doesn't have...There's no sensible reason not to have some.  If you're going to own a currency, it's not sensible not to own gold.  

Now it depends on the amount of gold.  But if you don't own, I don't know 10%, if you don't have that and that depends on the world, then there's no sensible reason other than you don't know history and you don't know the economics of it. 

But, I. Well, I mean cash.  So cash...view it in terms as an alternative form of cash and also view it as a hedge against what other parts of your portfolio are. Because as traditional financial assets, and so and in that context as a diversifier, as a source of that, there should be a piece of that in gold is all I'm saying.”

With regard to gold being a currency he said that:

"Gold is a currency.  Throughout the history, I won't tell you in length, money was like a check in a checkbook and what you would do was get your gold and gold was like a medium.  So gold is one of the currencies-- We have dollars, we have euros, we have yen and we have gold.

And if you get into a situation where there's an alternative in this world, where we're looking at 'What are the alternatives?' and the best alternative becomes clearly one thing, something like gold. 

There becomes a risk in that. Now it doesn't have the capacity.  The capacity of moving money into gold in a large number is extremely limited.  So the players in this world that I have contact with that move that money really don't view gold as an effective alternative, but it could be a barometer and it is an alternative for smaller amounts of money.”


Gold Spot $/oz Daily, Sept. 2010-2012 - (Bloomberg)

Dalio is alluding to the very small size of the global supply of gold or investment grade gold (refined, investment grade coins and bars) vis-à-vis stock, bond and currency markets and the shadow banking system.

Dalio’s interview is important as it again indicates how slowly but surely gold is moving from a fringe asset of a few hard money advocates and risk averse individuals to a mainstream asset.

Wealthier people and some of the wealthiest and most influential people in the world are slowly realising the importance of gold as financial insurance in an investment portfolio and as money.

This will result in sizeable flows into the gold market in the coming months which should push prices above the inflation adjusted high of 1980 - $2,500/oz.

The interview section where Dalio is asked about gold by an audience member begins in the 43rd minute and can be seen here.

NEWSWIRE
(Bloomberg) -- Silver Seen by Morgan Stanley Outperforming Gold in Few Quarters
Silver will outperform gold over the next few quarters with the gold to silver ratio averaging 54 in the fourth quarter and 53 for 2013, Morgan Stanley said.

(Bloomberg) -- Gold’s Rally Is Intact on Global Stimulus, HSBC’s Steel Says
Gold’s rally is intact as increased accommodative monetary policy around the world has contributed to a bull market, according to James Steel, chief commodity analyst at HSBC Securities (USA) Inc.

(Bloomberg) -- U.S. Mint Gold-Coin Sales in September Exceed August Total
The U.S. Mint’s sales of American Eagle gold coins this month have climbed to 45,000 ounces, according to figures from the Mint’s website.

The total for all of August was 39,000 ounces.

(Bloomberg) -- Gold Traders Increase Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators increased their net-long position in New York gold futures in the week ended Sept. 18, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 191,115 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 9,099 contracts, or 5 percent, from a week earlier. 

Gold futures rose this week, gaining 0.3 percent to $1,778.00 a troy ounce at today's close. 

Miners, producers, jewelers and other commercial users were net-short 249,633 contracts, an increase of 12,542 contracts, or 5 percent, from the previous week. 

Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators' positions because such transactions can reflect an expectation of a change in prices.

(Bloomberg) -- Silver Traders Increase Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators increased their net-long position in New York silver futures in the week ended Sept. 18, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 32,555 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 1,073 contracts, or 3 percent, from a week earlier. 

Silver futures fell this week, dropping 0.1 percent to $34.64 a troy ounce at today's close. 

Miners, producers, jewelers and other commercial users were net-short 50,474 contracts, an increase of 3,202 contracts, or 7 percent, from the previous week. 

Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators' positions because such transactions can reflect an expectation of a change in prices.

(Bloomberg) -- GFMS Sees Gold Hedge Book Falling by 188,000 Ounces in Quarter
The global gold hedge book declined by 188,000 ounces in the second quarter, according to Thomson Reuters GFMS and Societe Generale SA.

The hedge book fell to 4.89 million ounces by the end of June, the companies said in a report e-mailed today by GFMS.

Bloomberg competes with Thomson Reuters in selling financial and legal information and trading systems.

(Bloomberg) -- LBMA Says Gold Trading Fell 0.9% in August as Silver Declined
Gold trading fell 0.9 percent to an average of 17.8 million ounces a day in August compared with a month earlier, the London Bullion Market Association said today in an e-mailed report.

Silver trading declined 15.5 percent to a daily average of 119.5 million ounces, the LBMA said.

For breaking news and commentary on financial markets and gold, follow us on Twitter.


Cross Currency Table – (Bloomberg)

NEWS
Gold dips from near 7-month high; stimulus support stays - Reuters

Gold begins the week on a softer note – Market Watch

CFTC'S Chilton: Silver Investigation Continues, Expects Something Public 'In Near Future' - Forbes

Bridgewater's Dalio Favors Gold As 'Monetary Stimulus' Hedge - Reuters

COMMENTARY
CFR Interview with Dalio - Diversification and Gold – You Tube

Gold: Adjusting For Zero - Deutsche Bank - Gata

Germany Eyes Gold Standard – NY Sun

CITI: When Gold Hits $1790, Silver Will Surge – Business Insider

Keiser Interviews Rickards about Currency Wars – Max Keiser

New Silver Upleg – Silver Seek

 

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Mon, 09/24/2012 - 08:26 | 2823778 GetZeeGold
GetZeeGold's picture

 

 

I'm a Barbarian from Iceland.....of course I own gold.

 

Mon, 09/24/2012 - 08:27 | 2823788 Mr. Fix
Mr. Fix's picture

Just keep stacking!

Mon, 09/24/2012 - 09:05 | 2823901 Sudden Debt
Sudden Debt's picture

Barbarians came from Galacia and Germany.

Vikings came from Iceland.

Big difference. About 1500 years of difference.

 

Mon, 09/24/2012 - 09:57 | 2824064 NidStyles
NidStyles's picture

Barbarian was a term used to described people that were uncivil, not just one group of people.

Mon, 09/24/2012 - 11:39 | 2824462 Pairadimes
Pairadimes's picture

<-----Owns gold

<-----Thinks he owns gold

Mon, 09/24/2012 - 13:25 | 2824946 lasvegaspersona
lasvegaspersona's picture

Pair...

EXACTLY!!!!

if he is talking GLD then he thinks he owns gold. (and if he has 100,000 shares of GLD he might actually get some as an Authorized Participant)

These talking heads never say what form they hold their gold in do they? A day is coming when posession will matter far more than 'what percentage'.

Mon, 09/24/2012 - 08:24 | 2823780 becky quick and...
becky quick and her beautiful mouth's picture

shocking.

Mon, 09/24/2012 - 08:28 | 2823787 LawsofPhysics
LawsofPhysics's picture

Unfortunately, gold is only as good as the metals that surround it.  Like silver, platinum, copper, brass, lead...

Mon, 09/24/2012 - 08:30 | 2823792 GetZeeGold
GetZeeGold's picture

 

 

Getting hit in the head with any of those hurts like crap.

 

Mon, 09/24/2012 - 08:34 | 2823797 Red Heeler
Red Heeler's picture

"Unfortunately, gold is only as good as the metals that surround it. Like silver, platinum, copper, brass, lead..."

Then my gold is really good because it's surrounded by lots of brass and lead and some really neat lead delivery vehicles.

Mon, 09/24/2012 - 10:51 | 2824257 Anasteus
Anasteus's picture

... and tungsten.

Mon, 09/24/2012 - 08:33 | 2823793 mogul rider
mogul rider's picture

pump much?

 

Why is it that pumpers can't do the right thing and let people accumulate accordingly based on their situation?

Nope - you bought in July while the fish were flopping in death throws from their 1900 purchases a year ago..

Now you pump it to make a quick buck 

Now it's up and all is well in the gold world?

It is as much a NY pump as AAPL is....

Is gold critical to a portfolio today? IMHO yes.

Do you creeps have to pump it? No..

 

Mon, 09/24/2012 - 08:52 | 2823798 GetZeeGold
GetZeeGold's picture

 

 

pump much?

 

Often.....as much as the markets will allow. Rinse and repeat.

 

Those other guys do it all the time.

 

Do you creeps...

 

OK...now you're just getting personal.

Mon, 09/24/2012 - 09:23 | 2823964 Quinvarius
Quinvarius's picture

Don't hate bro.  Just because someone else speaks the reality of gold, and you are not ready to accept it, does not mean they are pumping it.  Gold is simply money.

Mon, 09/24/2012 - 09:55 | 2824055 oddjob
oddjob's picture

I think you were the dickhead running around screaming sell your Gold at $1100.

Mon, 09/24/2012 - 13:23 | 2824936 Midas
Midas's picture

I gave you a down arrow for using the formulation:  (verb) much?

Does anyone know what asshole started doing this and what it will take to stop it?

Mon, 09/24/2012 - 08:41 | 2823810 jjsilver
jjsilver's picture

Be careful, a smell a raid

Mon, 09/24/2012 - 08:45 | 2823828 GetZeeGold
GetZeeGold's picture

 

 

Yes.....we planned it.

 

How did you know?

Mon, 09/24/2012 - 08:46 | 2823833 Arnold Ziffel
Arnold Ziffel's picture
Why Did Insurer Northwestern Mutual Buys $400 million in Gold?

 

Gold investing is crossing into the mainstream.
The latest:
Northwestern Mutual, the third-largest U.S. life insurer by 2008 sales, bought gold for the first time in the company’s 152-year history…”Gold just seems to make sense; it’s a store of value,” said CEO Edward Zore. “In the Depression, gold did very, very well.” The insurer bought around $400 million in gold, and Zore believes that position could quintuple if the economy continues to weaken. “The downside risk is limited, but the upside is large,” Zore said. “We have stocks in our portfolio that lost 95%.” Gold “is not going down to $90.”

 

http://www.wallstreetreporter.com/2009/06/why-did-insurer-northwestern-m...

Mon, 09/24/2012 - 09:28 | 2823978 BigJim
BigJim's picture

Hmmm. Phyzz or ETF? Allocated or unallocated?

They could well end up losing 95% if they think they 'own' gold that another 95 people have prior claims on.

Mon, 09/24/2012 - 08:50 | 2823842 Boondocker
Boondocker's picture

gold, as long as you hold it is great.  once SHTF, lead and propellent will be much more valuable.

Mon, 09/24/2012 - 09:13 | 2823924 ATM
ATM's picture

Gold is not for the chaos, it is to transfer wealth from this financial system to the next.

Mon, 09/24/2012 - 08:52 | 2823851 eddiebe
eddiebe's picture

Now all of a sudden Dalio is an expert. Where was he at gold 250.-?

Mon, 09/24/2012 - 08:57 | 2823868 the misanthrope
the misanthrope's picture

Was it on ZH I read this?

None other than bubbles greenspan when speaking to the CFR on 15 Sept.2010 said,

"Fiat money has no place to go but gold"

Mon, 09/24/2012 - 09:14 | 2823926 ATM
ATM's picture

it was Bubbles.

Mon, 09/24/2012 - 09:11 | 2823919 tradewithdave
tradewithdave's picture

Veeerrry interesting... but does Ray own Bitcoin?

 

http://tradewithdave.com/?p=12274

Mon, 09/24/2012 - 09:17 | 2823936 graspAU
graspAU's picture

Maria B. had a guest state the same thing in one sentence about 4 years ago:

"On the other hand, if you're very safety conscious, you hold on to your gold bars"
-Evelyn De Rothschild, December 10, 2008. CNBC Interview

Gold was about $800 that day.

Mon, 09/24/2012 - 09:48 | 2824036 Grand Supercycle
Grand Supercycle's picture

BIG GOLD & SILVER SELL OFF EXPECTED TOO.

Due to recent central bank intervention and short covering spikes, these daily charts are extremely overextended and significant correction expected very soon:

SPX, DOW, NASDAQ, NZDUSD, GBPUSD, AUDUSD, COPPER, CRUDE [USD strength will return]

http://www.zerohedge.com/news/2012-12-24/market-analysis

http://trader618.com

Mon, 09/24/2012 - 10:12 | 2824117 oddjob
oddjob's picture

Grand Spamcycle, your last big Gold sell off failed to materialize. It was up $250, very puzzling for you.

Mon, 09/24/2012 - 09:51 | 2824044 dbTX
dbTX's picture

Does owning PM's make me a hedge fund?

Mon, 09/24/2012 - 10:08 | 2824105 Long-John-Silver
Long-John-Silver's picture

In my early teen's I cut yards and trimmed hedges. I called the money I earned my hedge fund.

Mon, 09/24/2012 - 10:28 | 2824195 edifice
edifice's picture

I'm sure Ray will happily tell you, with a salesman smile on his face, to not own gold and push you into Treasurys.

Mon, 09/24/2012 - 10:34 | 2824208 Money By Trading
Money By Trading's picture

I own gold.  And I hope I get a chance to add silver soon.  My thoughts on the coming week here:

http://wp.me/p2CT0a-5Z

Mon, 09/24/2012 - 12:45 | 2824752 Bansters-in-my-...
Bansters-in-my- feces's picture

Hey eveyone....!
Why buy gold when you can lease silver for -0.46%.
Fucking PM Manipulators.....fuck off.

Mon, 09/24/2012 - 14:27 | 2825218 neutrinoman
neutrinoman's picture

Such language :)

More video links, please.

Do NOT follow this link or you will be banned from the site!