This page has been archived and commenting is disabled.

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


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 03/05/2013 - 12:39 | 3301039 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 | 3301069 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 | 3301095 BaBaBouy
BaBaBouy's picture

Mother Goose Berranky Will Give Us...


GOLD $50K ...

Tue, 03/05/2013 - 12:52 | 3301100 Buckaroo Banzai
Buckaroo Banzai's picture

OT but fucking hilarious.

Women Take Biden's Advice on Guns:

Tue, 03/05/2013 - 13:01 | 3301136 Pladizow
Pladizow's picture

Bye Bye Fiat, Buy Buy Gold!

Tue, 03/05/2013 - 13:24 | 3301180 Boris Alatovkrap
Boris Alatovkrap's picture

Buy buy Miss Amerikan (Cow) Pie!

Tue, 03/05/2013 - 13:27 | 3301214 serog
serog's picture


Tue, 03/05/2013 - 13:39 | 3301267 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 | 3301371 gmrpeabody
gmrpeabody's picture


Tue, 03/05/2013 - 14:37 | 3301457 Cast Iron Skillet
Cast Iron Skillet's picture

I do enjoy your comments!

Tue, 03/05/2013 - 15:43 | 3301791 Boris Alatovkrap
Boris Alatovkrap's picture


Tue, 03/05/2013 - 15:20 | 3301678 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 | 3301166 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.


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

Tue, 03/05/2013 - 13:15 | 3301177 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 | 3301207 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 | 3301260 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 | 3301281 Boris Alatovkrap
Boris Alatovkrap's picture

Sea Horse is not real beef!

Tue, 03/05/2013 - 14:40 | 3301470 thisandthat
thisandthat's picture

What!? Sea weed is not real weed?

Tue, 03/05/2013 - 14:04 | 3301351 keninla
keninla's picture

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


Tue, 03/05/2013 - 15:14 | 3301651 MassDecep
MassDecep's picture

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


Tue, 03/05/2013 - 12:39 | 3301049 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 | 3301068 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 | 3301094 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 | 3301108 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 | 3301120 Charles Nelson ...
Charles Nelson Reilly's picture

haha... duly noted sir.

Tue, 03/05/2013 - 13:00 | 3301133 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 | 3301806 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 | 3301244 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 | 3301513 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 | 3301554 vulcanraven
vulcanraven's picture

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

Tue, 03/05/2013 - 15:52 | 3301839 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 | 3301208 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 | 3301209 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 | 3301072 TheFourthStooge-ing
TheFourthStooge-ing's picture

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

Tue, 03/05/2013 - 12:56 | 3301113 kralizec
kralizec's picture

And one, two, three or more,

HP's in theiving heads galore!

Tue, 03/05/2013 - 13:41 | 3301220 Boris Alatovkrap
Boris Alatovkrap's picture

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

is fiat money not so great!

Tue, 03/05/2013 - 12:40 | 3301058 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 | 3301079 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 | 3301231 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 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 | 3301279 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 | 3301376 e-recep
e-recep's picture

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

Tue, 03/05/2013 - 14:30 | 3301437 JOYFUL
JOYFUL's picture


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 $ 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.... = (1985, Not Rated, 83m. Wrestling Superstars Collection DVD )

Tue, 03/05/2013 - 14:31 | 3301439 hidingfromhelis
hidingfromhelis's picture

$5 per ounce, right?

Tue, 03/05/2013 - 15:36 | 3301714 akak
akak's picture

Only if you're digging it from the ground.

Tue, 03/05/2013 - 16:08 | 3301875 DosZap
DosZap's picture


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 | 3301061 youngman
youngman's picture

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

Tue, 03/05/2013 - 12:43 | 3301067 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 | 3301384 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.

* ///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 | 3301084 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 | 3301102 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 | 3301235 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 | 3301306 Bay of Pigs
Bay of Pigs's picture


Tue, 03/05/2013 - 14:01 | 3301343 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.


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

Tue, 03/05/2013 - 21:20 | 3303134 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 | 3301115 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 | 3301392 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 | 3301085 Silver Garbage Man
Silver Garbage Man's picture

Third but not final wave of easing.

Tue, 03/05/2013 - 12:47 | 3301088 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 | 3301090 Pairadimes
Pairadimes's picture

The fiscal policy death star is almost complete...

Tue, 03/05/2013 - 14:31 | 3301438 viahj
viahj's picture

but it's fully operational already

Tue, 03/05/2013 - 12:52 | 3301098 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 | 3301450 viahj
viahj's picture

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

Tue, 03/05/2013 - 12:52 | 3301099 Kaiser Sousa
Kaiser Sousa's picture

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

Tue, 03/05/2013 - 12:53 | 3301104 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.


Tue, 03/05/2013 - 13:39 | 3301266 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 | 3301448 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*.


Tue, 03/05/2013 - 16:02 | 3301827 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 | 3301118 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 | 3301148 realtick
realtick's picture

and Turd Ferguson is an idiot

Tue, 03/05/2013 - 14:14 | 3301383 Midas
Midas's picture

I think Turd is the shit.

Tue, 03/05/2013 - 13:14 | 3301172 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 | 3301265 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 | 3301395 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 | 3301124 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 | 3301149 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 | 3301165 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 | 3301170 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:



Tue, 03/05/2013 - 13:21 | 3301198 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 | 3301203 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 | 3301298 El Viejo
El Viejo's picture

Mining company stocks can plummet just like all the rest.

Tue, 03/05/2013 - 13:58 | 3301319 medium giraffe
medium giraffe's picture


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 | 3301696 BeerBrewer09
BeerBrewer09's picture

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

Tue, 03/05/2013 - 16:05 | 3301873 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 | 3301888 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 | 3301919 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 | 3301247 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 | 3301367 orangegeek
orangegeek's picture

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


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 | 3301381 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 | 3301420 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 | 3301769 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 | 3301425 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 | 3302572 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 | 3302695 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 | 3303067 oak
Do NOT follow this link or you will be banned from the site!