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What Happened The Last Time Gold Traded Here?
In November 2009 the IMF decided it was an opportune time to authorize the sale of 403.3 metric tons of gold. Very quickly after announcing this China, India, Russia, and some EU central banks piled in snapping up the IMF's offer. The current price of gold is around CNY7,300 per ounce, exactly what it was when China last loaded the boat...
and remember, China does not seem afraid to add on lower prices (hhm buy low?)
Charts: Bloomberg
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Did they load the boat with GLD? Because it sure seems physical sales have absolutely no impact on prices moving higher,
JPM is in the tank. sold more contracts than they have phys for.
JPM & HSBC "custodians" for GLD
100K GLD can be turned in for phys.
Phys drain on GLD is phenomenal ...."as price drops" ....which makes it cheaper for "those who might need phys" to get phys.
do the math.
Anyone using GLD for gold exposure is a complete chump.
it is that simple.
anyone who wants real actual phys exposure to gold uses PHYS.
they have actual metal...which is audited. for real.
not a stack of paper from ....whatever bank feels the need to write a few futures contracts.
that's the worst thing about this crash, really hosing the folks who don't do any research and believe the crap that CNBC puts out.
Dont like to promote sites, but this looks like a terrific effort started to take back the silver market. Imagine if they can get 1 million to join - i'm in!
http://www.communitysynergy.com/subscribe/silver_pledge_subscribe.html
Do you guys remember when trouble in the middle east meant Gold would go up? How about when the price of oil and gold were joined at the hip? I am starting to wonder if this shit isn't manipulated.
Starting?
The problem with PHYS (vs. GLD) is that you can't buy options on it. Oh wait... that was the INTENT, to prevent people borrowing something they don't have or lending something they don't have.
This international trade account settlement via synchronizing gold price demolitions in manipulated markets has been brought to you by Goldman Sachs. Goldman Sachs, doing god's work. [cue jingle aaaaaand cut to commercial]
You'll have to forgive my friend, he's a bit slow!
-Dumb and dumber
@ Unwashed Mass:
Anyone who wants actual real exposure to physical Gold.......BUYS ACTUAL, PHYSICAL GOLD....the kind that's lost in boating accidents......not some fucking paper bullshit.
Do I question Sprott's integrity? No. But getting a statement in the mail and saying "I have X amount of Gold"......is not the same thing as saying "I lost X amount of GOLD in a boating accident".
2 different animals, there.
Metal is Metal. Everything else, is PAPER.
+ $55,000
Wait, IMF selling again, at low?
Alternate thinking, wouldn't the Chinese feel a little cheated, now that the price has been 'manipulated' back to Nov 09 level?
Chinese do long term.
'Developed States' have roughly 70% forex reserves in gold.
China has 2.5%
Separately, a gold vault just opened in Singapore
Hey Do Chen,
You still going to do that call option to force delivery.
I'm about to do one myself on the LMBA for delivery paying pounds sterling .
Want to compare notes /tactics ?
Totally agree. I completely lost trust in Sprott when he 'coincidentally' unloaded a huge whack of his PSLV 'to meet a charitable obligation' immediately prior to the start of the big meltdown. If its not in your hands or at the bottom of your lake, then rest assured some fucking banker is rehypothecating it.
>> I completely lost trust in Sprott
Ditto. I could forgive him unloading with the prior knowledge that all the big poobahs seemed privy to, but I can't forgive him pumping it while he's offloading. I'm guessing that's why Sprott Funds are not being attacked like Central Funds. He's one of the boys.
He didn't get to be a billionaire by sharing honest info with the proletariat.
Central Fund of Canada is a BNY Mellon controlled product.
I cannot believe some one in his right mind can say he lost his paper gold in a boating accident. Paper floats just like shit in the swimming pool and than you realize you were the only person in the pool.
which i agree with, but.....
what do you put in your IRA? PHYS? Only if you are willing to trust a little shop that, again, will give you a stack of paper saying you've got X ounces on deposit with them;
Yes it would be lovely if we could use IRA and get Phyisical in hand. Its impossible.
So, PHYS and PSLV.....top men in a very swampy bog.
what do you put in your IRA?
Took it all out, paid the taxes, bought physical PM's.
Fuck IRA's, 401k's, etc. What's in my hands and defendable is mine, what isn't I consider already gone.
Read the prospectus on PHYS:
http://sprottphysicalbullion.com/media/1338/SprottPhysicalGoldTrustProspectus-CAN.pdf
Specifically:
Redemption requests for gold must be for amounts that are at least
equivalent in value to one London Good Delivery bar or an integral
multiple thereof, plus applicable expenses. A ‘‘London Good Delivery
bar’’ contains between 350 and 430 troy ounces of gold. A unitholder’s
ability to redeem units for physical gold bullion will depend in part on
the size of the London Good Delivery bars held by the Trust on the
redemption date. Any fractional amount of redemption proceeds in
excess of a London Good Delivery bar or an integral multiple thereof
will be paid in cash at a rate equal to 100% of the NAV of such excess
amount."
So, if we say the average bar is 390 oz then, and multiply that by the current spot price of $1240, we come to $483,600. So, yes, if you have a PHYS share NAV in aggregate of $480K+, then it is redeemable for physical gold.
I wish I could just tell you I was being sarcastic but my point still remains.
If physical was so scarce and demand was so high, the only way that would be resolved would be through higher prices.
I know I know it's coming.....
meh.
In some circles... It's known as the 'Gordon Brown' moment...
@ francis_sawyer:
I wish I could upvote you again for that post.
I gotta say... Gordon Brown is my HERO...
~~~
Back in 2005... I sold my 'overpriced' villa in Italy [to 'mega' proportions] to a Gordon Brown sychophant...
francis_sawyer 'RETIRED' [at a crisp young age], off that transaction...
If it's yellow let it mellow,
If it's Gordon Brown flush it down.
Strange times, these.
Riding any bull market requires cultivation of a neutral attitude. Corrections are inversely proportional (in depth) to net sentiment and the subsequent upturn occurs again when sentiment is washed out. If you get high during the rise phase, you will participate in the sea of tears during the corrections.
Martin Armstrong has an interesting piece about gold on his website blog just now. According to him, the coming bull market in gold has not started yet, but is close to 100% certain to occur over the next couple of years.
"but is close to 100% certain to occur over the next couple of years."
It is statements like that from all these guys that constantly make me take as step back and wonder if I really fucked myself. These guys would make magnificient Hyundai salesmen. No offense to any Hyundai salespeople.
Korean cars use Korean bearings, mmm...
The American presidency uses kenyan nuts!
FWIW, he has been saying 1200's or lower for many months now, and to the great unpopularity of the bugs. His provisional turning point is within a week or so and says a second decline could happen after that, but would be unlikely to go significantly lower. Also claims the real bull starts in 2015.
>> to the great unpopularity of the bugs.
I think I qualify as a bug by anyone's standards and I have no issue with Armstrong. I make a point of reading his take.
I find it ironic Armstrong likes to yell and scream how rotten and evil the Banksters are, yet somehow also likes to throw stones at the gold manipulation and GATA crowd. Tells the goldbugs to quit "hyping" gold yet we're seeing the bullions banks run the whole sector over with a giant fucking steamroller.
He can kindly fuck off with his twisted logic.
My favorite irony is that Micheal Milken conference.
Fucking unreal.
>> He can kindly fuck off with his twisted logic.
It would seem that if one only read the opinions of those with no agenda the list of acceptable sources would be slim indeed. I've got no beef with your beef with Armstorng, but he has had a pretty good track record of late. I think the world of Sinclair and will always have warm reguards for him, but his track record has been, shall we say, poor? Still, I hold him in the highest of esteem. Armstrong? I just read his schtick and see if there's something I can gleen from it.
Don't get me wrong, I have read quite a bit of old Marty over the years (via Sinclairs site), and always thought he was pretty sound.
I just don't understand how he can mesh these two conflicting viewpoints and still make sense in these FUBAR'd markets.
I'm with you Fonz. JPM goes into the end of June short 80,000 oz of gold, Comex delivery commitments are something like 32 tons out of 40 available. Delivery supposedly had to happen on Friday. Hear anything about it? No, the silence is deafening. And GLD - any inventory change last week during the big waterfall crash? No, flat at 969.5 for 3 days as the price dropped $100.
There's no fucking point watching the 'physical' market because reporting about it is 100% pure unadulterated bullshit. The only time we have a hope in hell of getting an honest report is when they tell everybody - 'well, it's all gone - can't believe you people all sold all yours, we were buying, but hey, tough shit if you couldn't figure out the obvious - by the way, gas now cost 1 new dollar/gallon. You can trade in your old dollars at a rate of 40:1. Oh yeah, gold still costs 1000 new dollars - you do the math on what that is in old dollars....' Fuckers, I just hope now that it takes a while before they drop the hammer on us.
"There's no fucking point watching the 'physical' market because reporting about it is 100% pure unadulterated bullshit."
And that is all you need to know. Yeah, I track the Comex depository numbers for shits and giggles, but in the end, who the fuck knows? It's about as useful as guessing how many tonnes China actually has.
Main point? I can always look at a piece of gold and say "I know for sure that is money". Keeps the brain uncluttered.
wait, you said the only way to resolve the discrepancy was through lower prices??????....so low that the comex would bust and true price discovery.................you have me confused again..... ............asteroids and mega volcanoes are also coming...........we just dont know when............could be another 1000 years...........................gold price looking vulnerable today again...................dollar still skyrocketing......VHAT A WORLD........VHAT A WORLD!!!!
you told me gold miners bottomed yesterday. Damn you!
'Gold miners bottomed' - ha ha ha! What happened was that on Friday a whole new herd of cattle was rounded up and moved into the pens at the slaughterhouse. Gold miners going up would be like the cattle in the slaughterhouse being treated TO dinner rather than FOR dinner.
the entire fucking planet is on one side of the ship with the miners....holy crap............how much lower can they go??
They should find some support at 0.
the 'edict' of cheesepopery CLEARLY states that at the end of 'FIAT' regimes... ALL paper leverage upon goldmines shall be suppressed to ZERO... Whereby, the cheesepopes print themselves money out of thin air to BUY 'said' gold mines & extract all future value... [to further enhance 'philanthropic' escapades in: MSM, political activism, & the 'art' of jurisprudence]...
~~~
BETWEEN 'financed' wars & all that shit... as the case may be & as is necessary...
you know francis, i cant look at a bag of cheese pops, doodles, balls, etc without thinking of you.............................
Ummm... I guess...
~~~
But I suppose the REAL question is why 'ANYONE' would 'EVER' have the occasion to look at bags of cheese pops, doodles, etc...
Do they come 'free with every purchase' at BANANA REPUBLIC these days?... I haven't been in one of those stores in, like... EVER...
~~~
kito ~ keep ur chin up though... AT PRESENT... I'm giving YOU, my friend, full credit for 'bottomticking' PHYSICAL gold... You may go down in ZH history... [in a good way]... If it all works out, you'll forevermore be known as 'TOUCAN KITO'...
Because...CHEETOS ARE THE BEST THING IN THE UNIVERSE!!!
Hee hee. :)
Ah it may seem that way but in truth they're horrible for your health. Metaphor applies the same.
Well, as long as they're doing it to finance further philanthropic escapades then I guess its ok.
Barrick is headed for zero, dragging real miners with it.
You know what I do find odd? The miners are getting killed because their all-in cost is said to be over 1100 now, due to rising operating costs - ie: inflation. Yet, according to the central banks of the world there is no inflation, in which case gold should still have a production cost of about 300/oz. So SOME HOW, there is MASSIVE INFLATION, but it's ONLY IMPACTING THE GOLD MINERS. The rest of us are fine, and enjoying the infinite benefits of low interest rates and no inflation.
I love Big Brother, I LOVE BIG BROTHER, I FUCKING LOVE BIG BROTHER. 2 + 2 = 5, please keep the rat cage away from me.
The miners aren't ultimately worth anything more than your standard common stock of a resource extraction company. Also, it's funny to me that people think the first thing that will be confiscated is Jimmy's 5 oz. stash buried in his backyard. Have we really learned nothing from the "repatriation" of mines overseas? Easier to repatriate a mine with millions of ounces, or door to door tracking down Jimmy's 5 oz. he swears is at the bottom of a lake?
that was a pump and dump by me.....you fell for it...classic......................its hot down here in the boiler room..............
LOL! You probably didn't even buy any gold last week!
no, i did...for real......i swear on fonz life....................
swear on my protfolio of miners!
That being said, Ron Paul must be getting lit up right now.
i think somebody already falsely swore on your portfolio of miners a long time ago...............dont worry, i really did buy the coins...................and i will buy a few every 100 point drop...........
Maybe they lost their gold in a boating accident too
The last time this happened, the SPY longs were introduced to the phrase "plunger rape."
john you seem to really know your shit. So let me ask you. Is physical and paper going to separate? Or can we march higher (if that happens) with paper based products joining in the party again?
Physical already has. Premiums are still indicative of $1400 gold while paper investments indicate otherwise. Once they re-unite around the $1450-$1500 range a solid double is possible. A lot depends on how much production and inventory is taken off of the market. With the COMEX rumored to be fulfilling delivery orders to central banks and sovereign purchases only while offering cash settlements to everyone else, odds are paper will stay separated long enough for a good 20-30% of the production to go into mothballs within 90-100 days. Once that happens it could take up to a year to restart some operations thus leaving a true physical shortage and promise of future deliveries made using the very paper market which decimated the price levels below production cost. I still think we see the implications of this event after the deflationary scare I think we shall see this autumn.
Also looking at Sept-Oct of this year. I think paper would have to be above $1800 to meaningfully slow the redemption process.
Backwardation. The extended version.
China?, India took 200+ tons of it @ $1048.00 per oz.
Go long silver!
Though silver has been used to help treat wounds for years, new research shows that when added to antibiotics, it can be 10-1,000 times more effective than using the antibiotic alone. Researchers hope that this could be used to help attack the ever-growing list of antibiotic-resistant bacteria. Silver helps compromise the membrane of bacteria, allowing the medication to be more effective.
https://www.facebook.com/photo.php?fbid=615234955164186&set=a.4564496043...
Stawks had a large correction. Oil crashed to $30 a barrel. And the Fed fucked up the markets.
Fabulous. Continue the transference of real wealth...to China. Just another example of the failed status quo in the financial services industry, as well as the US political arena.
The idiots have the US checkbook, and they are cutting checks they cannot cover...
And the beat goes on.
go West young man....
America is fast becoming a shell, and empty shell. The power and money brokers and those who have made the grade, have left the building, and left behind the pack animals to be herded into camps corals.
That's what it looks like to me too. Everyone was wondering what the Chinese would do with all the paper dollars they received for goods. That in and of itself was a great swindle - sending worthless paper to them in exchange for labor and materials as the standard of living in America rose on the backs of the Chinese. But in this chess game, the Chinese seem to be converting their paper dollars into physical gold, playing a longer game to issue a gold backed RMB. When that happens, the rug comes out from under the US and our standard of living drops drastically, as the value of the dollar crashes hard. Since we seem to import eveyrthing, the cost of everything will rise. It will take years to restart any industry in the US so that we can afford to crawl out of that hole.
-Sentiment guage. 'One up' this if you've been feeling pessimistic about gold and liberty lately. I freely admit as much. :(
Buck up, you sad sack. Did you think it would be easy? Look around! Thought you could ride some obvious sentiment survey or something? Sheesh.
When was it you grew a vagina? Sorry to hear.
No, but most people I have read thought this game would end sooner rather than later. My belt's been tightened and my laces strung, I'm just pissed at the present environment. Maybe most readers here all foresaw gold's drop, Bernanke's power over markets, etc. Qe4Evah and gold smashed.
I'm mad that tptb are making us look dumb. That's it in a nutshell.
@Shootist- That really should be two (2) separate questions to be fair. To me, that would require a "no" and "yes" answer.
December 2013. Gold at 800. ZH find a chart to explain the imminent bull market
GLD inventory at -12000 tonnes. COMEX warehouse inventory -40000 tonnes. All physical gold and silver deliveries estimated for 12 months or more after payment is received, because it has to be dug out of the ground.
Except all the gold and silver miners are now out of business.
Whoops, did I say 12 months? I meant 12 years.
I agree with you. Been saying in here the charts are sending gold and silver lower for months now. There is no POMO or PPT to support gold and silver so therefore they in all likelihood will go where we (meaning you and I) see them going.
Tell you what, we'll each put up $5,000, to be deposited in an escrow account, and if gold is under $1,000 on December 15th you take it all, if it's over, I'll take it.
I'm giving you a $200 cushion, so it should be a no-brainer. Right? Right?
Not sure if this is directed at me. Getting a bit emotional about this pal? I just go with what all of the relevant data/information tells me is the best course of action.
I know and believe in the dozens and dozens of fundamental reasons to own gold but that doesn't mean now is the time to get long for me.
The kind way to say BTFD in Mandarin:
gòu mai di jià
(Buy at low price)
The disinformation specialists (including some on ZH) claim that there is plenty of gold to go around even as there have been actual delivery defaults and miners are shutting down operations. Obviously, it is felt that when real physical is desired, the Rothschild vaults will disgorge what is needed.
If you believe that, I have some great water view property in the Everglades for sale.
As far as miners shutting down goes, your only hope there is that the silver miners can cut off the industrial supply and maybe that will force the issue, and then gold will get carried along. Otherwise, that's the thing with gold - mining supply is dwarfed by existing above ground supply. That coupled with completely opaque real markets means miners can fall off the face of the earth and it won't mean a damned thing to the 'gold market'.
Indeed. I have not witnessed such bullshit in the last 12 years as opposed to the last 2 and half months in the gold and silver sectors. Full retard doesn't even come close to describing this nonsense.
Anti PM hysteria has now reached epic proportions, and none of it is justified. Why? Because nothing has been fixed. Not one fucking thing.
Great observations.
All the more reason for physical metal holders to remain calm, be patient and let the tard factor proceed.
Since we all know the fundamentals are solid, we just have to wait for the paper game to run it's course.
The markets are large and there are innumerable ways for them to be gamed.
At some point something is going to break or there will be some events that causes the collective mindset to change.....literally overnight.
Then, kaaaaapow.
As I tell friends and family, follow the lead of the whales and central banks.
Are they stacking paper in their vaults? NO.
Most are trying to stack as much metal as possible.
As they know more than us commoners, just chill out, twist a fatty if that's your thing or pour an adult beverage, put on some Allman Brothers, and relax.
The trolls are trying to get a reaction, such as our long lost pal, MR. PUDD.
Don't let the noise distract you.
Twist a fatty?
NOT TRUE!!! i heard from fox business that unemployment has DROPPED dramatically since the downturn..................i heard that the banks are all HEALTHY and RECAPITALIZED again..............i heard that our borrowing costs have NEVER BEEN LOWER!!!!.........................i heard that real estate market is BOOMING!!! i heard that stocks are FLYING.................BOP...where have you been??!?!??!?!?!? under a giant gold rock????? ;)
A gold price at this level should confirm a '4' down wave of a Wave One extension bull market.
So we got that going for us, which is nice.
The IMF announced the sale of 403.3 tonnes in 2009. In October and November 2009 it sold 212 tonnes, 200 tonnes to India, 10 tonnes to Sri Lanka and 2 tonnes to Mauritius, leaving 191.3 tonnes to sell.
In February 2010 the IMF announced that it would start on market sales in the near future which would be within the CBGA limits.
http://www.imf.org/external/np/sec/pr/2010/pr1044.htm
In September 2010 it was announced that Bangladesh was buying 10 tonnes.
So on market sales were supposedly 181.3 tonnes. These on market sales were supposedly complete by 21st December 2010.
http://www.imf.org/external/np/sec/pr/2010/pr10509.htm
Notwithstanding that they didn't tell anyone in public how the supposed sales were going but claimed they did as per" The IMF provided regular updates on progress with the gold sales through its normal reporting channels.", then....
how is it possible to say that "China, India, Russia, and some EU central banks piled in snapping up the IMF offer"
Where did you get this information?
Where did you get this information?
Dude,
Google India IMF gold purchase.
As I say above, it is a fact that they got 200+/-(by a hair), of that IMF sale,CHINA tried to negotiate a cheaper price than India paid, and got left out of ALL of the 400+/- tonnage.
http://timesofindia.indiatimes.com/business/india-business/Full-circle-India-buys-200-tons-gold-from-IMF/articleshow/5194338.cms
The problem I have with that chart (IMF selling; China buying) is that gold was already in an uptrend. It's solidly in tank mode now. But don't worry. After Cyprus, Jim Sinclair vowed gold would never, ever go below $1600/oz. again. Nice one, Jim. Can't win 'em all, eh?
Can't win 'em all Or any. I sympathize with Jim Sinclair's philosophy, but NOONE's been as bad as him in the forecasting department.
>> Can't win 'em all, eh?
Have you?
Hey, it just occurred to me - do you think they have a stop-loss on their position, and the bullion bankers are trying to run the stops on them? You know, the government comes home from work one day and they log into their PBOC E-Trade account and are all like 'Fuck, I can't believe we got stopped out on that gold! We should have sold it when we had the chance, back in August of 2011'.
I hate you. Now I won't be able to sleep anymore, thinking that my stack of coins might be stopped at any time!!
Oh, now we are back to the Chinese playing Jesus to the Gold Bugs (who supposedly don't want to sell their gold in the first place). OMG!!! That calls for another Irish Poem!
The Road To Yuan
How I love the Heathen Chinese!
All the Wong Fongs, and Ding Dongs, and Lee's!
They'll give me their yuan,
To save me from ruin,
As I ship my gold overseas!
Squeeky Fromm, Girl Reporter
Who are you????
Who am I??? I am the Fearless Girl Reporter who earlier today discovered the secret government project behind the Gold Bug virus!!!
STAXnut
There once were some NSA hacks
Who created a virus called STAX!
It caused folks to schiz,
And to buy Gold in fits,
In complete disregard of the facts!
Squeeky Fromm, Girl Reporter
She's the girl jilted by a goldbug and as her only form of payback available now she will try and take it out on anyone that believes gold is money or holds it as an insurance policy. Very sad.
Like all your posts. Nothing relevant to say.
fijisailor:
Thank you!!! I am glad you like all my posts! I try to bring a little happiness and sunshine where ever I go!
Squeeky Fromm, Girl Reporter
Oh that's so sweet that you think of me. If I want happiness and sunshine I will kiss my love by my side. I'm here looking for insight as to how the world economy works, not type written irrelevancies.
SqueekyFromm
I heard today that physical gold in Shanghai is trading at a $30 / oz premium over USA gold. Hmm...
DoChen: Simple rule... don't buy it there (lol).
By the way the IMF held India's gold subscription at the Reserve Bank of India in Nagpur, Maharashtra..
This was undoubtably the gold that was transferred back to neighboring countries India, Sri Lanka, Mauritius and Bangladesh who would have been the only countries willing to take gold in Nagpur. Lots of this gold was quite bad quality from confiscated smuggling, local mine production etc and was certainly not good delivery gold...
The IMF in one foul swoop got rid of what was always a bit of an anomaly, storing gold in the middle of India...
UBS Starts Gold-Vault Service in Singapore Amid Bullion Rout
"UBS joins Deutsche Bank AG and JPMorgan Chase & Co. in offering storage services in Asia, where China may surpass India as the largest user this year."
http://www.bloomberg.com/news/2013-07-01/ubs-starts-gold-vault-service-in-singapore-amid-bullion-rout.html
Yep, sure looks like gold is a shitty hedge. That is why the big players see a market for offshore bullion storage.
Just another indicator.
Stackers Stand Strong. Laugh at the trolls.
There will come a day where they will be asking for a job sweeping your floors.
I wonder if all the fine print readers will start looking at all the paper PM funds and finding out which ones are real? I would love to see what they think of PHys and CEF....
Do they ride with real or do they stay with GLD and SLV?
The last time, Gold was going UP the elevator. This time....not so much.
No "fundamentals" to the goldbug story have changed and gold's had the worst quarter since it started trading.
Guys, gold is going below $1000 - I think $780 - and silver has already hit my modest target of $18 and it's not going to be much above 20 for a while, I think.
Aren't there more oil futures than oil as well - and we burn oil up app the time. Futures markets are about cash liquidity, not deliverable goods.
Because by and large, even though there are a huge number of paper contracts against the physical market, the physical market still sets the price because there's a real need for actual oil at the end of the day. So if, for example, you tried to drive the price of oil in the paper market down by selling the shit out of it, you couldn't make it stick because the producers would just cut off supply and the price would snap back on demand for the real thing.
In the paper gold world, the 'real thing' isn't actually gold, what it is is confidence in the system and confidence in money. As long as there's confidence in money, then paper and gold get exchanged pretty easily by a lot of the buyers on the margin (apparently the real buyers - Mid East oil producers, Asian CBs etc are more fussy, but they stay quiet) so the price can be moved around using the paper market (up and down) . The time you get a REAL move in the price of gold is when the supply of confidence starts running short. Problem is, at that point suddenly everybody comes to the realization that 'holy shit, there's only 7 billion oz of gold, and there's 7 billion people on the planet, I better get some NOW', it's too late, because the real golds all locked up by the guys who always realized that USTs aren't worth shit because the full faith and credit of the government is obviously somewhat wanting at this point. This is obvious to a small number of people now, and will be transparently obvious to EVERYBODY at some point in the not to distant future.
The reason gold is selling is Asia more so China is actually liquidating assets, possibly gold, it's too sharp of a sell off to assume any correction + gold was not in a bubble at the time of the sell off. Also Asia, South American and the middle east are buying up USDs. Why? The emerging economies are all heading towards a complete meltdown after skirting with outbreaks of hyperinflation. A possible Asian and South America crisis at the same time.
Of course Argentinian/South American policy makers are in denial about the real reason of massive USD buying, so they come up with this mad plan:
"On Monday, new central-bank certificates of deposit entered into circulation.
The government is hoping that a controversial amnesty for tax evaders will inject a large amount of dollars into the economy and narrow the spread between the official and black-market exchange rates. Individuals will be able to wipe the slate clean if they invest their hidden U.S. dollars in real estate or construction projects or use it to buy bonds to help finance state-run oil company"
Gold will be bid on war, and global economic turmoil.
If anyone cares, Yen just cracked through 99 the June 11th 'psycho' resistance or omen. All eyes JGBs, wash cycle is on. China cued. Chaos set.
No inflation.
Electricity Prices Highest on Record for Mayhttp://cnsnews.com/news/article/electricity-prices-highest-record-may
This they will of course blame on the weather.
As long as you are Amish, it's all good!
Is there a way to do a hedonic adjustment on a kilowatt?
I am Amish!
No, I am Amish -- sorry wrong meme.
I am Mennonite. The Amish are my 'cousins'.
Buttons are okay :) Hooks and eyes are fine too ;)
If gold ever goes to zero, what will paper be worth?
- .97c ?