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Gold And The Next Great Monetary Easing

Tyler Durden's picture





 

Gold's rise over the past few years has been driven by a number of factors. Aside from the unprecedented monetary easing and skepticism over the global financial system in recent years, Morgan Stanley notes that 1) a persistent increase in investment demand, 2) acceleration in producer de-hedging, 3) a decline in net official sector sales, and 4) a persistent failure on the part of the mining companies to respond to the incentive of a steadily rising price and materially lift production; all also impacted gold's premium.

 In 2012, gold’s investment premium was driven by investors seeking a safe haven from widespread fears of a hard landing in China, systemic risk to the European single currency posed by the possibility of a Greek default and risks to US recovery posed by the impending Fiscal Cliff and Debt Ceiling. A re-evaluation of gold’s security premium followed from the various mitigations of the numerous risks to global growth.

However, as they note, a decisive break lower heralding the end of the bull market has not appeared and they believe we are about to witness the third installment of the Great Monetary Easing that started to play out when the credit bubble burst five years ago and that the gold bull market will enter its strongest phase.

Decelerating liquidity surprises have limited upside over the past year. With the benefit of hindsight, this sideways trending price pattern appears to be consistent with an environment where upside surprises in central bank liquidity creation and financial market stress have slowly declined. As this has happened, gold has returned to what BCA Research Inc has called its default setting – a tick-for-tick correlation with a range-bound US dollar in TWI terms.

 

In the past, these periods of particularly strong and close correlation with the USD have proven to be consolidation phases before the next upside gold catalyst has appeared.


 

But more monetary easing is coming. We are about to witness the third installment of the Great Monetary Easing that started to play out when the credit bubble burst five years ago and the gold bull market entered its strongest phase. This third phase is being driven by central bankers’ concerns over excessive non-yen currency appreciation as Japan works to fight deflation, and worries about a further significant rise in bond yields and the implications for private and public sector debt sustainability. In this environment, the priority of monetary policy is to avoid excessive exchange rate appreciation as the yen continues to depreciate and alleviate the debt burden of the private and public sector. The implicit continuation of low interest rates in an emerging cyclical recovery argues quite strongly, in our view, for a potential upside surprise in central bank liquidity creation, something that in the very recent past has been positive for gold prices.

 

 

In these circumstances, we believe that gold has demonstrated considerable technical strength, offers good value at current prices both as an entry level to the trading range between US$1,540/oz and US$1,800/oz and as an option on any remaining upside surprise above this range that might result from the third part of the Great Monetary Easing.

 

Source: Morgan Stanley

 


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Tue, 03/05/2013 - 12:39 | Link to Comment Abraxas
Abraxas's picture

The bubbles are caused by capital dislocation caused by printing. I don't know when, but they will get what they want eventually - inflation (that they will not be able to put back in the box). Gold will be in a bubble. There will be many more rides up and down, but the peaks will be wider appart. The croud will run there for cover, only to realize it was an artificially inflated cover, so they'll run back, only to realize that it was better to stay over there. The process will be repeated until the clear winners emerge who will then call the shots, and the losers (most of us, with or w/o PMs) will abide.

Tue, 03/05/2013 - 12:43 | Link to Comment Bam_Man
Bam_Man's picture

I think Sinclair will be proven correct - Gold will trade at $4-5,000 within the next 2-3 years, but bulls and bears will both be wiped out three times in the process of getting there.

Tue, 03/05/2013 - 12:51 | Link to Comment BaBaBouy
BaBaBouy's picture

Mother Goose Berranky Will Give Us...

 

GOLD $50K ...

Tue, 03/05/2013 - 12:52 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

OT but fucking hilarious.

Women Take Biden's Advice on Guns: http://www.youtube.com/watch?feature=player_embedded&v=A0IVSGctQIg

Tue, 03/05/2013 - 13:01 | Link to Comment Pladizow
Pladizow's picture

Bye Bye Fiat, Buy Buy Gold!

Tue, 03/05/2013 - 13:24 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Buy buy Miss Amerikan (Cow) Pie!

Tue, 03/05/2013 - 13:27 | Link to Comment serog
serog's picture

horse

Tue, 03/05/2013 - 13:39 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Boris is see what you do there! Not is real cow, but fraudulent horse substitute! Now pardon while Boris clean vodka from nasal passage.

Tue, 03/05/2013 - 14:09 | Link to Comment gmrpeabody
gmrpeabody's picture

+100

Tue, 03/05/2013 - 14:37 | Link to Comment Cast Iron Skillet
Cast Iron Skillet's picture

I do enjoy your comments!

Tue, 03/05/2013 - 15:43 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Spasibo!

Tue, 03/05/2013 - 15:20 | Link to Comment Chupacabra-322
Chupacabra-322's picture

@ Plasdizow,

It's definitley been a buying time the past 2, 3 weeks, like a blessing.  Keep stacking!  Precious PM's, Lead for the Criminals and other natural resources. 

Pack a Gun & Pay NO TAX.   

Tue, 03/05/2013 - 13:12 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I always abide by whatever Biden says. He's my man. If he can't do it, nobody can.

/sarc

<Just in case there's any confusion about my comment.>

Tue, 03/05/2013 - 13:15 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Boris is hear of 59% (some report is say 76%) of Tuna not is real Tuna. Food Manufacturing Industry instead is use Escolar, cheap white meat comprising of indigestible fatty solids, like Olestra. Side effect is uncontrolled anal leakage. Boris is also learn of profligate money printing by Central Bank. Boris is think, maybe is not coincidence, that is called Quantitative Easing. Maybe QE and anal leakage linked, no?

In close, Boris is write lyric...

Once is bank run by Brothers Lehman,

Put in margin squeeze by Jamie Daimon,

Destroy free market for hell of it,

Now can't find real halibut,

But non-soluble long chain fatty acid  is make for oil slick in gastro-intestinal tract of population for to make embarrassing moment of unaware dining citizenry during seemingly harmless fart when in fact is discharge into underpants, similar to unfettered monetary expansion of diarrhetic central bank system.

(work in progress)

Tue, 03/05/2013 - 13:26 | Link to Comment TruthInSunshine
TruthInSunshine's picture

In Russian that was potato in vodka of former USSR, caviar sold by street vendor marked as Beluga, Osetra or Sevruga, cause intense oily anal leakage.

Boris need to guard against counterfeit caviar from Escolar, Tilefish & Seahorse.

Tue, 03/05/2013 - 13:37 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Once is eat fish sandwich in Odesta,

But full of insoluble Olestra,

Think is eat cod,

But really is fraud, 

In shorts have unmitigated disaster!

Tue, 03/05/2013 - 13:43 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Sea Horse is not real beef!

Tue, 03/05/2013 - 14:40 | Link to Comment thisandthat
thisandthat's picture

What!? Sea weed is not real weed?

Tue, 03/05/2013 - 14:04 | Link to Comment keninla
keninla's picture

You won't be wiped out if you buy physical and ignore the volatility.

 

Tue, 03/05/2013 - 15:14 | Link to Comment MassDecep
MassDecep's picture

so should I sell my gold that I bought for 890 an oz, and my silver for 12 an oz?

//sarc

Tue, 03/05/2013 - 12:39 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

how many freakin times can these clowns ease until the sheep wake up and realize its worth as much as monopoly money?

Tue, 03/05/2013 - 12:43 | Link to Comment CPL
CPL's picture

We've all asked that same question since 2007. 

Believe me on this.  Don't bother educating anyone except yourself on the subject, it doesn't work.  People have to come to their own conclusions and rationalizations.  Or you'll just give yourself a headache trying to get people smarten up (which isn't happening that fast).

 

Once WTI Oil breaks 120 and stays there, that's the point that people will understand fully and totally how deeply screwed they are and not a moment before unless they've sought their own answers.

Tue, 03/05/2013 - 12:49 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

I swear to god, if I went out on the street today and held a 1 oz. gold eagle in my right hand and $500 cash in my left and asked the sheeple which one they would rather have, 99% would take the paper.

Tue, 03/05/2013 - 12:54 | Link to Comment Ghordius
Ghordius's picture

don't try this outside the US - particularly not in continental europe, russia or china

Tue, 03/05/2013 - 12:57 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

haha... duly noted sir.

Tue, 03/05/2013 - 13:00 | Link to Comment Ghordius
Ghordius's picture

I forgot to say: in India even the lowest peasant would be able to quote you the daily price in two or three currencies - I'm exaggerating, but not much

Tue, 03/05/2013 - 15:45 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Maybe is most time correct, but if Boris in woods to defecate, much is prefer paper, even fiat paper, for clean up. So dollar is have some valuable.

Tue, 03/05/2013 - 13:33 | Link to Comment Sigep0612
Sigep0612's picture

Well put.  I kid you not, go to a watering hole and ask the average person about QE and they think your talking about Queen Elizabeth.   The Economist magazine had an article (Feb 16) recanting that a majority of Americans can not do simple math.  I would venture to say that "that majority" is very comfortable with handouts from the defunct US Gov.  As soon as the handouts stop, then and only then will they put down their I-phone and ask themsevles.." WTF?"  

Look at the Banking industry.  The hotest product they're selling on the retail front is "Reloadable Debit Cards."  People can't handle checking accounts so employers give their employees debit cards and each payday they load money onto the card.  When the employee swipes his card and there isn't enough $$ on the card to buy smokes, he then realizes he's broke.  

Tue, 03/05/2013 - 14:49 | Link to Comment GubbermintWorker
GubbermintWorker's picture

That's all they would get by selling that GAE to the "We Buy Gold" store.

Tue, 03/05/2013 - 14:56 | Link to Comment vulcanraven
vulcanraven's picture

Mark Dice did this a couple times in San Diego, get ready to rage:

 

http://www.youtube.com/watch?v=qf_ENBaAna0&list=UUzUV5283-l5c0oKRtyenj6Q...

Tue, 03/05/2013 - 15:52 | Link to Comment DCFusor
DCFusor's picture

You gotta give the man props for guts.  I'd have been within a few percent on any given day, and taken his coin.

Tue, 03/05/2013 - 13:26 | Link to Comment natronic
natronic's picture

I totally agree i've been trying to educate my family and it is like talking to brick wall.  I give up

Tue, 03/05/2013 - 13:26 | Link to Comment natronic
natronic's picture

I totally agree i've been trying to educate my family and it is like talking to brick wall.  I give up

Tue, 03/05/2013 - 12:43 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Bubble, bubble, toil and trouble,
Paper assets turn to rubble.

Tue, 03/05/2013 - 12:56 | Link to Comment kralizec
kralizec's picture

And one, two, three or more,

HP's in theiving heads galore!

Tue, 03/05/2013 - 13:41 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

five, six, seven, eight, (Trillion:)

is fiat money not so great!

Tue, 03/05/2013 - 12:40 | Link to Comment Hongcha
Hongcha's picture

Gold about to go red on the day, on the way to $1,500.  $1,500 is within hailing distance and they will take it out.

Tue, 03/05/2013 - 12:45 | Link to Comment CPL
CPL's picture

It might be spot, but like Silver, try finding someone willing to sell it if it's been tested, validated and tungsten free.

 

Inflation makes more than prices outrageous.  It also cheapens everything so caveat emptor always with silver and gold now.

Tue, 03/05/2013 - 13:32 | Link to Comment Boston
Boston's picture

The problem with taking out ~1500 is that this is the bottom of the range, or a huge line in the sand, that if broken, could send gold plunging lower, much lower.

As a long-only investor in gold, I don't like what this would do to my existing portfolio, but I've got to be realistic and prepare for this......by keeping dry powder available to buy more gold at lower prices.

1250 is my downside target (and this does NOT violate the long term uptrend, if you start around the year 2000). Despite this target, I'm still a long-term gold bull.

1250 is about 35% below the 1900+ peak, which is similar to the sell-off % in the 2008 collapse.

1250 is roughly a measured move from the bottom of the channel, using the delta between the top and the bottom of the channel.

Am I highly confident this will happen? Nope. But I'm mentally and financially prepared if it does, and if it doesn't go all the way down to 1250, my plan is to buy down every 50 dollars, to take advantage of any discounts that do materialize.

Tue, 03/05/2013 - 13:43 | Link to Comment Bay of Pigs
Bay of Pigs's picture

$1250? You will have massive shortages of gold and silver if that happens.

Tue, 03/05/2013 - 14:11 | Link to Comment e-recep
e-recep's picture

do you have any idea about the mining cost of gold?

Tue, 03/05/2013 - 14:30 | Link to Comment JOYFUL
JOYFUL's picture

Exactly.

That's why, if they pull the chute all the way down to $1200, they will require an equally speedy and decisive return to above $1550...at least. The Beagle Boys are heavy players in the miners, and will need that sector of their full spectrum dominance to be boosted up after the shake down of the remaining dupes. Gold and silver miners will be supported. Nothing could be less true than the myth that 'central bankers don't like gold' ... they luv it...

Inflict maximum damage, fill pockets, inflate market. Nothing new under this ol sun.

yours truly,

Jamie("I like to Hurt People")Dimon....http://www.cduniverse.com/productinfo.asp?pid=8903858 = (1985, Not Rated, 83m. Wrestling Superstars Collection DVD )

Tue, 03/05/2013 - 14:31 | Link to Comment hidingfromhelis
hidingfromhelis's picture

$5 per ounce, right?

Tue, 03/05/2013 - 15:36 | Link to Comment akak
akak's picture

Only if you're digging it from the ground.

Tue, 03/05/2013 - 16:08 | Link to Comment DosZap
DosZap's picture

Boston,

my plan is to buy down every 50 dollars, to take advantage of any discounts that do materialize.

$50.00 barely covers the premiums,not worth it.

BUT, like you if it even gets into the 1300-1400 range I am backing up the truck.

This biatch is going to ultimately be used in the NEW currency, and the prices will be  LONG term bullish, until it happens

Tue, 03/05/2013 - 12:41 | Link to Comment youngman
youngman's picture

Todays move in the DOW is like winning the 100 meter dash...but doing it by cheating...it just does not feel right....gold and silver have to be being bought up....somehwere...I just can´t see how printing money to infinity is going to work long term..at some point it becomes trash paper...

Tue, 03/05/2013 - 12:43 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Must print moar...must break the chains of the yen manipulation...

(why is Morgan Stanley breaking meme-ranks with its brethren?  Inquiring minds want to know...)

Tue, 03/05/2013 - 14:15 | Link to Comment JOYFUL
JOYFUL's picture

These guy always take turns playing both sides of the market.

Bankster brethern JPM's sidekick Barrick Gold is in big trouble*...and in need of a boost of investor confidence\aka fresh blood...the scammers only get rich when they can entice new money in, to shake down later. As investors have been running for the exits(as in much of the mining sector)pickings have been getting too thin lately.

No broken ranks here...tag team the muppets, wash and repeat.

*http://www.zacks.com/stock/news/93977/barrick-gold-slips-to-underperform ///classic limited hangout....analyst tries to stem really bad damage tidings by offering a partial glimpse of reality...but fails to come even close to using the actual cash cost numbers which

by Barricks own admission involve an upward revision 4th quarter to $941

-50% higher than the numbers they were purporting to use in the previous three! But the fun doesn’t  stop there;  that’s 49% higher again than the numbers they were using for the same three quarters in the two years previous.  During that same time frame, gold rose 35%. No pocket calculators needed!

Tue, 03/05/2013 - 12:46 | Link to Comment IamtheREALmario
IamtheREALmario's picture

Gold is the honey trap set for China ... just as real estate was the honey trap set for Japan. Because Japanese were historically and culturally real estate challengted, due to living on an island, it was easy to destroy the upcoming master race by enticing them to buy foreign real estate and then at the appropriate time deflating the value of the real estate and trapping them as debt slaves to the global banking system.

China has some of te same weaknesses. Real estate not-so-much, but they love gold and food and the appearance of wealth and liesure. Gold could be pr become a trap for the Chinese. Entice them to buy the barbarous relic and then deflate the price, trappening them hugely underwater on their gold holdings. Even though China may have the ability to use all of their reserves to buy gold, they do not seem to be taking the bait.

Tue, 03/05/2013 - 12:52 | Link to Comment Ghordius
Ghordius's picture

you are trolling, aren't you? I don't even know where to start... how can you "trap" someone that buys physical without leverage, btw?

Tue, 03/05/2013 - 13:31 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

The price of the precious metals are simply a physical reflection of money or market dynamics.  Equity is always equity.

Tue, 03/05/2013 - 13:53 | Link to Comment Bay of Pigs
Bay of Pigs's picture

WTF? LOL...

Tue, 03/05/2013 - 14:01 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

You can't be "underwater" on a thing that is already paid for.  No debt, no problems.  You wait out dips in nominal prices and stand assured that the money supply / velocity / etc will increase and thus your gold will hold its value.  Zero debt means you ride at water level at all times.

If you purchased the gold using debt, then you have problems because you have the burden of servicing the debt with income, which is unpredictable or may lag / be misaligned with changes in money supply.

Dig?

I know, it is difficult to conceive of actually owning something without debt nowadays. 

Tue, 03/05/2013 - 21:20 | Link to Comment RockyRacoon
RockyRacoon's picture

But, but....  gold is not backed by anything!  I seen a lady newscaster splain that on the teevee.

Gotta be true!

Tue, 03/05/2013 - 12:56 | Link to Comment auric1234
auric1234's picture

You seem to be implying the price of physical can be reduced at will.

Sorry, you can only do this if you're a seller, and only to the extent of the amount you're capable of selling.

But no matter how much you sell, there's always more and more buyers because they want to hold real money to stay out of the crooked markets.

When market forces do their job, they can finally invest again into something profitable.

Tue, 03/05/2013 - 14:18 | Link to Comment kliguy38
kliguy38's picture

How do you propose we "deflate" the price of gold once they're trapped?? Hell.......they can buy all of the gold in the world with just their reserves........He who owns the gold makes the rules. I think you will find it very difficult for your true masters to part with all of their gold to the Chicoms.

Tue, 03/05/2013 - 12:46 | Link to Comment Silver Garbage Man
Silver Garbage Man's picture

Third but not final wave of easing.

Tue, 03/05/2013 - 12:47 | Link to Comment Jack Sheet
Jack Sheet's picture

Why bother charting the CRIMEX price? What credence can be placed in such a "metric" when nearly an entire year's supply can be traded in a single day (source: Eric Sprott)

 

Tue, 03/05/2013 - 12:48 | Link to Comment Pairadimes
Pairadimes's picture

The fiscal policy death star is almost complete...

Tue, 03/05/2013 - 14:31 | Link to Comment viahj
viahj's picture

but it's fully operational already

Tue, 03/05/2013 - 12:52 | Link to Comment q99x2
q99x2's picture

Trying to buy gold these days makes you feel uncomfortable because you have to pay so much more than the price the banksters quote. 

Tue, 03/05/2013 - 14:33 | Link to Comment viahj
viahj's picture

qEXACTLY!  spot goes down, demand goes up, premiums go up.

Tue, 03/05/2013 - 12:52 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

same shit, same hours, same fucking fraudulent pattern, same culprits...

 

http://www.silverdoctors.com/here-comes-your-daily-gold-silver-smash/#co...

Tue, 03/05/2013 - 12:53 | Link to Comment JustObserving
JustObserving's picture

Here is how Western central banksters have been suppressing gold as explained by Eric Sprott:

For example, on Feb. 19, nearly an entire year's supply of gold traded on the Comex in a single day. The same volume of silver trading happened on the commodities exchange. You and I both know that the people selling that much metal cannot deliver it because it is just not available. Yet somehow they are out there, pounding down these contracts and keeping the price suppressed.

I would hypothesize that the central bankers know their policy of printing money is the most irresponsible thing imaginable, and they are suppressing gold and silver prices to hide their irresponsibility. When one is printing that much money, gold and silver prices are the first things you would expect to rise. If we saw gold going to $2,000/oz, the price of oil would probably go to a new high and the price of agricultural commodities would go up. Then you would have a huge inflation problem on your hands.

Based on my research, I believe the Western central banks have been surreptitiously supplying gold to the market. I say this because the demands I see for physical gold are way beyond the supply of gold. The annual gold supply has not changed in 12 years, and demand just keeps increasing from China, India, the U.S. Mint and silver and gold coin sales; even the non-Western central banks are buying gold. Where is this gold coming from? I think the Western central banks are selling gold to keep the lid on the price so everyone thinks their monetary policies are benign. Nothing could be farther from the truth.

http://www.theaureport.com/pub/na/15052

 

Tue, 03/05/2013 - 13:39 | Link to Comment AmCockerSpaniel
AmCockerSpaniel's picture

If the central banks want to give their gold a way, we will take it all!

Tue, 03/05/2013 - 14:32 | Link to Comment Colonial Intent
Colonial Intent's picture

I think the Western central banks are selling gold to keep the lid on the price so everyone thinks their monetary policies are benign.

Gordon brown sold UK's gold for the same reason*.

*Allegedly

Tue, 03/05/2013 - 16:02 | Link to Comment Chupacabra-322
Chupacabra-322's picture

@ Colonial Intent,

I bought up that same point 2 weeks ago.  Where did the UK's Gold go and who was the buyer/leased to? And where does BitCoin fit into all this? 

Tue, 03/05/2013 - 12:57 | Link to Comment JJ McApe
JJ McApe's picture

looks like gold is heading to $1300

 

oh my... goldbugs were finally wrong

 

;-)

Tue, 03/05/2013 - 13:05 | Link to Comment realtick
realtick's picture

and Turd Ferguson is an idiot

Tue, 03/05/2013 - 14:14 | Link to Comment Midas
Midas's picture

I think Turd is the shit.

Tue, 03/05/2013 - 13:14 | Link to Comment Mugatu
Mugatu's picture

I think Gold is going to $1300 too, but even that move will not even put a dent in golds long term trend.  

Only when we are finally scared of the drop in Gold will we finally see the price bottom.  When gold finally approaches the long term support at $1200-$1300 is when most gold holders will start sweating. That's when I am buying, and then I am not selling until we hit $5000.

Tue, 03/05/2013 - 13:38 | Link to Comment Seb
Seb's picture

While waiting for the price of gold to drop to $1200-$1300, there is also the possibility that you will end up buying at $5000.

Tue, 03/05/2013 - 14:19 | Link to Comment e-recep
e-recep's picture

it is impossible to catch the bottom. be content if you can make your move within the 10-20% above it. you know what you are risking, right?

Tue, 03/05/2013 - 12:57 | Link to Comment Confundido
Confundido's picture

Would there be consequences if the stock of Berkshire Hathaway was slammed down, on NO news, every day at 8:20-8:30am and, failing that slamdown, at 10:30am? Do you think anyone at the SEC would keep watching porn in that circumstance? Do you think Warren would be called a conspiracy theorist on TV if he complained?  

Tue, 03/05/2013 - 13:53 | Link to Comment medium giraffe
medium giraffe's picture

Not so sure.  Can easily see PMs getting hosed to prop up the abomination and make fiat look more desireable.  Would also fit with an attempt to discredit the prepper-stacker 'domestic terrorists'. 

You bastard preppers, this is all your fault, prepare to be mocked, vilified and outlawed!

 

(btw, if you want a laugh check out GBP/USD since 1/3/13, bipolar fiat disorder...)

Tue, 03/05/2013 - 13:12 | Link to Comment proLiberty
proLiberty's picture

The Trade Weighted Index is based on the USD vs other fiat currencies.  The reason that gold and the TWI became uncoupled is because the ECB and the other major central banks all started massive co-inflation in order to save their respective banking systems.  

Tue, 03/05/2013 - 13:14 | Link to Comment observer007
observer007's picture

 

 

De Gaulle talking about Gold Standard

In 1965, former French president Charles De Gaulle called for an international return to the gold standard. 

 

We consider necessary that international trade be established as it was the case before the great misfortunes of the world, on a indisputable monetary base, and one that does not bear the mark of any particular country. Which base ? In truth no one see how one could really have any standard criterion other than GOLD !”

 

Very intersting video:

http://homment.com/pdzUzsajsY

 

 

Tue, 03/05/2013 - 13:21 | Link to Comment Never One Roach
Never One Roach's picture

Good article. Must be why all the Central Banks are buying gold.

Tue, 03/05/2013 - 13:24 | Link to Comment apberusdisvet
apberusdisvet's picture

I just love the new FED trolls on ZH; the frickin idiots don't understand that you cannot take gold down below the cost of production.  Already too close for comfort now

Tue, 03/05/2013 - 13:51 | Link to Comment El Viejo
El Viejo's picture

Mining company stocks can plummet just like all the rest.

Tue, 03/05/2013 - 13:58 | Link to Comment medium giraffe
medium giraffe's picture

Yup:

Centamin LSE:CEY

52 Week High: 108.30  - 19-OCT-2012

52 Week Low:  19.00    - 13-DEC-2012

 

Tue, 03/05/2013 - 15:23 | Link to Comment BeerBrewer09
BeerBrewer09's picture

What are the costs of production for gold, silver, platinum, palladium?

Tue, 03/05/2013 - 16:05 | Link to Comment medium giraffe
medium giraffe's picture

When I owned some CEY (see my comment above) I think they said they were producing finished gold bars for around 1300 per all costs inclusive.  Shame about Centamin really, loads of gold holdings, no debt, decent management team,  big Sukhari mine in Egypt and another big mine looking to open.  A few mining equipment issues knocked their production timescale, it kept the price low, but they upgraded and were ready to rock.  Then the Mubarak fiasco happened and I got a bit of a haircut on the way out.  Still, at least the old bastard is gone.

Tue, 03/05/2013 - 16:09 | Link to Comment DosZap
DosZap's picture

Then the Mubarak fiasco happened and I got a bit of a haircut on the way out.  Still, at least the old bastard is gone.

Yeah and a whole new set of WORSE bastards in his place,like Libia.

Tue, 03/05/2013 - 16:20 | Link to Comment medium giraffe
medium giraffe's picture

And behind them all, pulling the strings?  All of the bastards we rely on for our way of life and condone by buying into their system day after day.  Holier than thou is a tough sell these days...

Tue, 03/05/2013 - 13:33 | Link to Comment haskelslocal
haskelslocal's picture

The sideways trend since 2011 demonstrates golds desire to get back in coorelation with the dollar.

Either gold down or dollar up but the pull has been to magnetic.

 

Tue, 03/05/2013 - 14:08 | Link to Comment orangegeek
orangegeek's picture

Gold's next level of support is around $1525.  A close below this and we may see $1300.

 

http://bullandbearmash.com/chart/gold-daily-continues-fall-gold-stocks-f...

 

Gold stocks are falling fast than gold - while the market indexes are heading higher.  Should be an interesting month.

Tue, 03/05/2013 - 14:14 | Link to Comment Manipuflation
Manipuflation's picture

"In these circumstances, we believe that gold has demonstrated considerable technical strength"

So has ammunition.  Technically speaking of course.

Tue, 03/05/2013 - 14:27 | Link to Comment Crazed Smoker
Crazed Smoker's picture

2 of 3 largest banks here in Canada now sell silver/gold coins - TD just added the service in the last few months (Scotiabank has offered for a while).  But each of the times I have gone in to place an order at my local branch the clerk didn't seem to even know they even offered the service.  They usually apologize saying "this is the first time I have done one of these orders".  Yet, on the way home from work yesterday I drove by a 6 foot tall sign in high traffic retail district that screamed - "Cash 4 Gold".  This buy side of this trade still feels awful lonely down here on the ground.

Tue, 03/05/2013 - 15:39 | Link to Comment Manipuflation
Manipuflation's picture

Not sure what you are trying to say there but I do collect Canada silver.  I only have a cursory selection though.

Tue, 03/05/2013 - 14:28 | Link to Comment Volaille de Bresse
Volaille de Bresse's picture

"don't try this outside the US - particularly not in continental europe, russia or china"

 

Imo continental europe is as sumb as most of the U.S. We've been both brainwashed by virtuality incl.  virtual money...

Tue, 03/05/2013 - 18:41 | Link to Comment BlueCheeseBandit
BlueCheeseBandit's picture

Guess I was wrong about gold. With Morgan Stanley bullish, I can only conclude the bull market is over. Gonna go hang myself now.

Tue, 03/05/2013 - 19:13 | Link to Comment goldbear1974
goldbear1974's picture

"A well established channel".....I guess I'll put my sell stop under the well established channel.  Fact is there is an old saying on the floor that (correctly) states THE MARKET GOES TO THE PAPER.  Huge amount of sell stops under 1460 and under 1442.

Tue, 03/05/2013 - 21:01 | Link to Comment oak
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