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The Gold Rush Spreads From China And India To Saudi Arabia

Tyler Durden's picture




 

In the "west", the higher the price of gold rose, the more demand there seemingly was by momentum-chasing gamblers investors, if only for paper certificates claiming to represent gold, or GLD as the case may be. Conversely, once the momentum turned, the same investors couldn't be bothered with gld (sic) even at 30% lower. At the same time, in the "east" the higher the price of gold rose, the lower the demand was for physical, which for that extinct breed of deranged gambler known as "value investor" is a familiar concept."  And now that gold's price is not only back to early 2011 levels, but is essentially below production costs, demand out of China is off the charts. Demand in India - traditionally the greatest in the world - continues to also at unprecedented levels, although now that official purchases of gold are regulated and limited through capital controls, it is forcing the local population to smuggle in gold through the most innovative of schemes.

But while the west is the west, and the east is the east, and no amount of adaptive behavioral modifications can change that, much to central bankers' chagrin, what lies in-between? Courtesy of the Saudi Gazette we learn that the uber-rich middle eastern kingdom, which floats on a sea of oil has picked its side... and it has chosen to take advantage of the ongoing paper-driven price collapse and load up on as much gold as possible.

From the Saudi Gazette:

The gold shops in Jeddah are now flourishing as more customers are buying various gold types thanks to the international drop of gold prices.

 

Saleh who works in Al-Amari gold shop said that more people are now buying various gold jewelries and others are buying gold bullions to store their money after staying away from gold for quite sometime.

 

According to him various nationalities are approaching them including Saudis, Africans and Indians. The prices he said range from SR165 to SR140 per gram based on the item being sold. The price is set based on any additional work or jewelries being added. The country where the gold comes from also determent the price, “We have Italian Indian, Bahraini, Korean and local gold creations each with a distinct price,” said Saleh.

 

Speaking to the Saudi Gazette, Ali Batarfi,  deputy chief of gold in Jeddah, said that they anticipate that the gold prices will continue to drop towards this month to reach $1150 per once, however the prices are likely to increase during the first quarter of 2014.

 

Batarfi said “the gold market is now witnessing an increase in sales thinks to the drop in gold prices, however not only that but also the school break that will start very soon will also drag more consumers into the market who will buy gold for their special occasions especially weddings.”

 

The gold has marked a drop this year from $1,920 per once to $1,193.3, which crated a difference in the costumer attitude in buying and storing gold, said Batarfi and added, “we anticipate that more gold will be sold both with jewelries and pure bullions.”

Experts in the field believe that the international move towards investing in various sectors and the stabilization of these moves have decreased the investment in gold with China and India lessening their investment in gold. The demand on gold from central banks has also lessened. Consumer demand for gold jewelry worldwide grew by 20 percent for the year ending September 2013, reaching 3,757 tons and valued at $183.9 billion.

 

According to a report released lately by The World Gold Council’s Gold Demand Trends, regional consumer demand for gold jewelry has grown by 25 percent, reaching 225.8 tons and valued at $10.9 billion, with the UAE and Saudi Arabia featuring prominently.

So while the rest of the world celebrates the anti-Giffen good nature of gold, a function of sophisticated US investors for whom only momentum and 200 DMA lines matter, and is buying it up at an unprecedented pace, these same sophisticated investors in the US are dumping the certificates representing to be backed by the yellow metal in droves and are BTFATHing stock certificates exchangeable for a currency that is being diluted at a pace of $85 $75 billion per month, even as more and more gold miners are set to go out of business if the price of gold continues to drop below production cost.

We are confident that we know how this latest "conflict" between "east" and "west" will end...

 

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Tue, 12/24/2013 - 19:46 | 4274258 RockyRacoon
RockyRacoon's picture

Remarkable.  Imagine a product/asset/commodity with infinite marginal utility becoming less expensive, and desirable, being snapped up as described.  Now, what genius finds that unusual?

Tue, 12/24/2013 - 20:11 | 4274319 kliguy38
kliguy38's picture

relax rocky.....when this game is over, the paper price will be long gone and the only way you'll carry an ounce of gold on you is with your glock tucked in your pants and a cover long gun a couple hundred yards off............transactions will be vethy vethy dangerous.....muy peligro

Wed, 12/25/2013 - 07:19 | 4274791 malikai
malikai's picture

Wow that sounds like a fantastic future.

I'll try civilization instead. Thanks.

Wed, 12/25/2013 - 08:12 | 4274824 GetZeeGold
GetZeeGold's picture

 

 

Those guys are clearly idiots.

 

.....these are not the droids you're looking for.

 

Have you guys heard about Bitcoins?

Wed, 12/25/2013 - 15:33 | 4275409 Dark_Horse
Dark_Horse's picture

I like civilization(since I'm in the top dog civ currently) especially ones that are majorly funded by the rest of the world, but look at the track record of all cilvilizations in history.

Nero(Obamba) has rosened up the bow, and I'm putting some attention and some allocation to mitigate the turn.

My disaster holdings of PM's was put together long ago at $350 gold and $5handle silver, with some additional activities at short term manias, both up and down.

Now I just watch the flapping which has been exceedingly entertaining, and tailor my own course accordingly.

Dark_Horse

 

Wed, 12/25/2013 - 01:13 | 4274648 TheLoveArtist
TheLoveArtist's picture

Biggest GOLD deposits in Europe, in Romania, maybe 100 billion or more at Rosia Montana, and the US govt just secured full military base privilages in the country.  Who says the powers that be are not smart.  The local population has stymied the richest man ie crook in Israel Beny Steinmetz from getting his hands on it with demonstrations.  The deal the govt made with Beny didn't even see them getting their twenty percent stake in the deal in gold but in dollars instead.  I tell you its easy to steal when the govt officials are corrupt as you know what.  Even the Africans manage to get maybe half out of the mining operations in their countries.

Wed, 12/25/2013 - 07:44 | 4274809 Its_the_economy...
Its_the_economy_stupid's picture

Links?

Wed, 12/25/2013 - 07:59 | 4274819 Agent700
Agent700's picture

Yeah, how about some credible links to this story......?

Wed, 12/25/2013 - 08:47 | 4274850 Jannn
Jannn's picture

China will be imporing 2000 tons of gold in 2013

 

http://www.ingoldwetrust.ch/shanghai-gold-exchange-physical-delivery-equ...

Wed, 12/25/2013 - 09:52 | 4274892 Bangin7GramRocks
Bangin7GramRocks's picture

Enough with the "cheaper than the cost of production" bullshit. Gold has only been over $1000 for a few years. How did all the miners survive the other 6,000 years of gold production history? I heard the same gay shit about oil. Oh no! Oil can't drop below $90 a barrel or Exxon will go bankrupt! I am a fan of gold and am buying, but to make such claims, you look exactly like a Bitcoin pumper.

Wed, 12/25/2013 - 15:33 | 4275416 Midas
Midas's picture

Well, I agree the phrase is over-done, but there is a kernal of truth.  I don't think you can talk about the cost of production without mentioning what amount.  Undoubtedly the first 10% of world production is much less than $1000.00.  At this year's prices and the demand we have had, it does seem like there is nothing left for the producers in aggregate.  Have you seen the gold companies share prices?  I don't know what the break even price is for today's demand, but we are probably close.  I don't think that means an imminent price increase however.  What I learned growing up on a farm is that producers will produce for free for quite some time.  The will do it until they go bankrupt.  

Wed, 12/25/2013 - 15:39 | 4275424 akak
akak's picture

You obviously have no connections to the mining industry (which is no sin), but if you had you would know that mining-related costs have been rising over the past decade or two FAR faster than the officially promulgated CPI, and have easily doubled over the past decade alone.

Wed, 12/25/2013 - 16:22 | 4275504 DoChenRollingBearing
DoChenRollingBearing's picture

Yes.  And "total costs" for mining gold is a complicated subject.  The best information that I trust, and in aggregate, points to a roughly $1200 / oz to produce gold.  The high cost mines are in trouble through time at these low levels.

If "paper price" keeps going down, less gold will hit the markets.  Same with increase of mining costs.

That can only be good for holders of physical gold, whether sooner or later.

Buy and hold on to your gold to the limit of your comfort and understanding of it.

Wed, 12/25/2013 - 20:06 | 4275776 Dugald
Dugald's picture

And as I said here before......

Many mines are scraping the bottom of the barrel....its taking more muck to produce one ounce of gold.....

Thu, 12/26/2013 - 00:04 | 4276084 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

I heard tell a story where the Saudis were encouraged by the Americans to buy gold back at $800 (around 1980 or so), 'cos those nosebleed highs just go on forever, you know. Then the Americans encouraged the Saudis to sell around $300, 'cos the stupid yellow metal was doing a dead cat bounce. Wonder how much that good advice cost them. Now it's cheap again (relatively) but I do have to wonder if some parties are getting set up for another price gouge one way or the other. I don't see the Saudis as particularly astute investors, rather they simply can hide their errors with that eternal gush of oil coming out of the ground.

Thu, 12/26/2013 - 00:30 | 4276130 sun tzu
sun tzu's picture

I guess you've never heard of inflation. How much were the miners paid 6,000 years ago? How much did mining tools cost 6,000 years ago?

Tue, 12/24/2013 - 19:39 | 4274259 SolidSnake961
SolidSnake961's picture

how has gold still not spiked on all this physical buying??

Tue, 12/24/2013 - 19:46 | 4274277 RockyRacoon
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I reckon that's because the "price" is not based upon regular supply/demand functionality.  When you have a huge paper market overhanging the physical market disparity in "value" results.

Tue, 12/24/2013 - 20:04 | 4274310 seek
seek's picture

I'd throw in that it's entirely possible the large physical transactions may be occurring at prices that aren't being disclosed. Trades on the CME are one thing, but if you're trying to reacquire German gold that was illegally lent to bullion banks that sold it, you might not want that trade's volume or price information hitting the ticker.

Tue, 12/24/2013 - 20:59 | 4274383 DoChenRollingBearing
DoChenRollingBearing's picture

FOFOA would agree with that kind of thinking re large volumes of gold behind closed doors going for much higher than the CME "paper gold" price.

FOFOA also says that the big price spike will come not so much from new Buyers as much as it will come when Sellers decline to sell.

Got strong hands?

Tue, 12/24/2013 - 21:11 | 4274405 Jam Akin
Jam Akin's picture

My answer DoChen:  Very.

Wed, 12/25/2013 - 09:43 | 4274883 Gordon Freeman
Gordon Freeman's picture

Of course, there is absolutely no concrete evidence of that--just an anonymous blogger's statement. I guess that's good as gold...

Wed, 12/25/2013 - 12:11 | 4275067 Jam Akin
Jam Akin's picture

In this case, take it to the bank... er Credit Union, Gordie.

Thu, 12/26/2013 - 00:38 | 4276140 sun tzu
sun tzu's picture

When all of the central banks of the world throw out their worthless gold bullion reserves, then I'll start believing idiots like you

Wed, 12/25/2013 - 00:22 | 4274607 RockyRacoon
RockyRacoon's picture

Amen to that.  So much for price discovery....

Wed, 12/25/2013 - 00:30 | 4274611 lewy14
lewy14's picture

Germany's due only a few hundred tons.

Not that much in the scheme of things.

Wed, 12/25/2013 - 02:11 | 4274676 cynicalskeptic
cynicalskeptic's picture

What ever happned to Libya's gold?  That was enough to take care of Germany.....

Wed, 12/25/2013 - 08:18 | 4274825 GetZeeGold
GetZeeGold's picture

 

 

.....in theory anyway.

Wed, 12/25/2013 - 11:22 | 4274998 Obese-Redneck
Obese-Redneck's picture

Obonma took Libyas,  gold all 6 billion.  That would keep things rolling in the states for about 3 minutes, probably about half the fuel the fleet burnt to get there, but I look back and see the real problem...... then there were death panels, fisting kits, walking machine guns, birth certificates, fema camps, 800 billion , trillion rounds of ammo for the FBI, NSA, CIA,  etc etc ad nauseum,  lets keep our conspiracy theories clear, ok?

Wed, 12/25/2013 - 04:09 | 4274726 Attitude_Check
Attitude_Check's picture

And yet the Fed told Germany to wait 7 years to get thier gold back.

Wed, 12/25/2013 - 08:18 | 4274828 GetZeeGold
GetZeeGold's picture

 

 

Minimum......could be longer.

Tue, 12/24/2013 - 21:22 | 4274424 Downtoolong
Downtoolong's picture

how has gold still not spiked on all this physical buying??

Because, when the paper tail is at least ten times the size of the physical dog, the tail wags the dog. 

Wed, 12/25/2013 - 07:46 | 4274811 Its_the_economy...
Its_the_economy_stupid's picture

Jesse's Cafe says 90x's

Wed, 12/25/2013 - 00:08 | 4274595 Diablo
Diablo's picture

>how has gold still not spiked on all this physical buying??

simple. because there is no physical buying...despite what ZH and all the other goldidiots might say. all these stories are made up bullshit.

 

doubt it? just check the mintages of this years' gold buffalos and eagles....they are the lowest or close to the lowest in history.  

 

Wed, 12/25/2013 - 00:57 | 4274637 Xibalba
Xibalba's picture

You are counting the one month reverse proof numbers as well, right.  Otherwise you might sound a bit like a tool. 

Wed, 12/25/2013 - 01:21 | 4274651 Diablo
Diablo's picture

THe only tools are the ones still holding onto their doom and gloom fantasies about trading their little coins for a loaf of bread when the apocaplypse comes.  

gold is down 30% this year, stocks are up 30%....i'l let you geniuses figure out what your opportunity costs are for that.

if you cant see that the gold trade is over then you deserve all the pain thats coming for you.

gold bitchez.  LOL

 

 

 

Wed, 12/25/2013 - 02:32 | 4274688 Abitdodgie
Abitdodgie's picture

Diablo , is right , every time gold gets knocked down in price your physical gold price gets stolen , they dont have to break into your house and take the gold they just make it worthless on the exchanges.I bought a shit load back in 2011 and now its worth less than then great fucking investment , now if i had bought Bitcion back then I would never of had to work again, but no I got gold shiney shit coins that the wealth can be stolen on a daily bases.

Wed, 12/25/2013 - 05:15 | 4274740 Squid-puppets a...
Squid-puppets a-go-go's picture

lol you guys really need to try an awful lot harder if you're gonna troll on this site. first day on the cocksucking job?

Wed, 12/25/2013 - 07:20 | 4274794 malikai
malikai's picture

Troll or not, the facts speak for themselves.

And I love and hold gold, too.

Wed, 12/25/2013 - 08:33 | 4274837 JonNadler
JonNadler's picture

which "facts" speak for themselves?

 

the bolder the trolls get, the closer it usually gold is to a bottom. It has been a reliable indicator. Of course in this site trolls get so bloodied so fast that you have to give this guy credit just for trying

Wed, 12/25/2013 - 08:59 | 4274853 GetZeeGold
GetZeeGold's picture

 

 

They're just gold bullies Jon.....they like to bully people that actually own real gold.

 

Don't know why....there's not actually that many of us.

Wed, 12/25/2013 - 09:48 | 4274879 SoilMyselfRotten
SoilMyselfRotten's picture

Agree Zee, also could be a little combination of gold envy with Monday morning quarterback syndrome. Pretty simple to repeat what went up or down and by how much and how smart you are for recognizing it. Let's see how much these momos chirp in 2014.

Wed, 12/25/2013 - 10:41 | 4274949 malikai
malikai's picture

Fact: $1700 in gold bought in August 2011 will equal about $1180 today.

Fact: $1700 in BTC bought in August 2011 will equal about $98700 today.

Sorry you can't do the math yourself.

Wed, 12/25/2013 - 12:24 | 4275089 AL_SWEARENGEN
AL_SWEARENGEN's picture

Fact: If you are looking to book fast profits flipping Gold and Silver short term in a manipulated market then you are a cocksucking moron.

Wed, 12/25/2013 - 15:43 | 4275435 akak
akak's picture

Also fact: infallible crystal balls and the ability to hear the bell that God rings at market tops only ever seem to belong to cocksucking morons such as the trolls above.

Thu, 12/26/2013 - 08:03 | 4276438 FreeNewEnergy
FreeNewEnergy's picture

Hey, guys, let's not conflate issues here, as you're on the brink of giving cocksucking a bad name. Some, sorry, ALL of my favorite girlfriends were great cocksuckers.

Wed, 12/25/2013 - 17:57 | 4275621 Zero Point
Zero Point's picture

Doesn't take a genius to see that buying actual physical gold is a terrible investment for a speculator.

With premiums, and delivery costs.

Some here seem to miss the point that physical gold owners are short civilization.

I mean, you can bet on the eternal continuation of the perpetual growth model if you wish, but it would seem a terrible consequence to be wrong.

 

Wed, 12/25/2013 - 13:48 | 4275260 Debugas
Debugas's picture

that is why one needs to always diversify his/her portfolio

just have enough gold to feel comfortable with it (not getting scared to sell it when the price falls)

Thu, 12/26/2013 - 00:41 | 4276144 sun tzu
sun tzu's picture

Fact: tulip bulbs once brought great riches to people until it became absolutely worthless in a matter of years

bitcoins are nothing but a stock-like scam, not a store of wealth

Wed, 12/25/2013 - 09:45 | 4274887 Gordon Freeman
Gordon Freeman's picture

Thank you, Diablo! 

Thu, 12/26/2013 - 00:02 | 4276080 Spumoni
Spumoni's picture

The low mintage probably has nothing to do with the extreme suppply shortages in the West being created by Asian demand, and illustrated in multiple interviews (nope, no links-find 'em yourself, maybe before you blat off about what you don't know). 
Other reasons:

There IS no cash in the street, so only a small number/percentage of the Canada/US population can afford the stuff.

People who invest are chasing Fed policy and buying equities. When the Squid decides to wring them out, they'll wish they had all the gold they sold to cover margin in 2008.

The price has not spiked because the CB's policy is to suppress it for the time being (while they are loading up on bullion).

Ignore third party risk at your own peril. Keep your money in the bank, there Diablo. We'll see who is the idiot.

Tue, 12/24/2013 - 19:41 | 4274262 Tinky
Tinky's picture

Gold's true value will soon be fairly represented in the open market, inshallah.

Tue, 12/24/2013 - 19:42 | 4274263 johngaltfla
johngaltfla's picture

It's a barbaric metal that retains no value for investors. CNBS and Dennis Gartman told me so.

Tue, 12/24/2013 - 21:14 | 4274409 MeelionDollerBogus
MeelionDollerBogus's picture

Definitely short gold in terms of Gartmancoinz.

Tue, 12/24/2013 - 19:40 | 4274264 lewy14
lewy14's picture

In the west, the investor class sees gold as a hedge.

In the east, they see gold as the universal numéraire.

In the west right now, tail risk is repricing. The prospect for positive real interest rates is improving. Vol is down. Other currencies look weak against the dollar; the Fed is thinking about exit where Japan and Europe are just getting the printing party started. China slowdown reduces the marginal growth in commodity consumption, and hence prices. No labor power -> no wage pressure -> no inflation. So gold has diminished utility compared to say 2011.

In the east - simple - their attitude is "what part of wealth itself is on sale don't you understand?"

Who's right?

Tue, 12/24/2013 - 21:01 | 4274389 DoChenRollingBearing
DoChenRollingBearing's picture

The Central Bank of DoChenRollingBearing has thrown its lot in with the East.

Tue, 12/24/2013 - 21:28 | 4274425 Jam Akin
Jam Akin's picture

Question is which side will win the "third opium war"?

Wed, 12/25/2013 - 02:53 | 4274699 cynicalskeptic
cynicalskeptic's picture

China has a LONG memory and views the last few hundred years as an abberation - where the western barbarians got out of control for a while.  The Chines may not always get things right ('The Great Leap Forward' comes to mind) but they've made astounding progress over the past century in the face of overwhelming adversity.  They industrialized WITHOUT getting terminally in hock to banking interests - in fact they got the west to GIVE them an industrial base in exchage for cheap labor - putting their surplus rural population to work.   China has been busy converting western paper payments into HARD assets.  The US has hastened its own collapse - and China's ascendency - by 50 years with its own imperial follies.  While the US blew trillions in pointless wars China has been buying friends and influencing people.

When China was draining silve out of England the British resorted to  Opium - delivered at the point of a gun - to reverse their balance of trade.   China remembers - and won't be letting the same occur again.

Wed, 12/25/2013 - 03:05 | 4274710 ich1baN
ich1baN's picture

You are missing some key insights. First is that the opium that China was addicted to was actually originally brought to China 100s of years before England really knew about China. 

They traded for opium with Arabs in the 1300s and got addicted to it since then. The brits just took up a profitable trade.

I would say that killing off 100 million of your own citizens within the last 50 years is probably one of the dumbest things that a country could do. With that said, I wouldn't put it behind China to screw up again and again and again as they have done in history.

China has never known freedom and they still do not know the real meaning. China is NSA x 100. Things are much much worse in that Pavlovian Freudian world. I lived there. 

Wed, 12/25/2013 - 04:11 | 4274727 Angus McHugepenis
Angus McHugepenis's picture

Depends which side is smoking it...

Merry xmas Jam. All the best.

Wed, 12/25/2013 - 05:39 | 4274756 Jam Akin
Jam Akin's picture

And to you too Angus, Merry Christmas!

Wed, 12/25/2013 - 00:40 | 4274620 lewy14
lewy14's picture

I'm not selling any.

Not sure I'd be a buyer here though.

Knife, falling. If 1180* doesn't hold on a weekly close, I'm thinking next stop is 880-920 range.

The dollar could strengthen quite a bit in the next 24 months.

If Yellen manages to ramp QE to zero and raise rates even 25bps, gold will easily crash through $1K.

While I respect the state of my own ignorance, my take is that there still is enough gold in the west to satisfy the flow eastward for some couple of years at least.

The east won't be dictating the price for a while.

And when they do, it may be they just chill and buy more slowly.

The real end game will come with the next crisis / wave of fiscal reckonings - the "sovereign bubble" bursts in the developed world. Which may not be for a while. 

Setting my buy level accordingly.

* that support level determined with detailed technical analysis - that is to say - I pulled it out of my ass.

Wed, 12/25/2013 - 02:21 | 4274681 cynicalskeptic
cynicalskeptic's picture

 

The dollar could strengthen quite a bit in the next 24 months.

 

The German Mark was looking MUCH better in early 1921 as well - lots of foreign customers for German Bonds as well....... Germany was quite content ot print away and thought the consequences would only be beneficial.

we know how THAT turned out

Being the 'least bad' choice among a slew of problem currencies is hardly reassuring

Wed, 12/25/2013 - 05:04 | 4274738 lewy14
lewy14's picture

Alt-history thought experiment: what if no country had gone back on the gold standard after WWI?

What if Britain, France, the US, the rest of Europe - all had gone total fiat?

What if they all resorted to printing and QE as a response to Germany's devaluation of their currency?

How long would the whole thing have gone on?

If the US was the only major trading country which wasn't on gold, it would be fried in an instant.

The paper-mark's competitor was gold, not other paper.

[addendum: I only mean to be provocative in a good way - not needlessly argumentative. Yes, the dollar could lose confidence precipitously, and sooner than later. I'm just walking through the historical analogy and pointing out the differences which I see as relevant.]

Wed, 12/25/2013 - 07:28 | 4274798 malikai
malikai's picture

Excellent thought experiment.

From a national perspective, it is in nobody's interest that the dollar collapse. Everyone's in bed with each other now. That means everyone will do what they can to maintain the status quo. But what happens when those actions themselves accelerate the inevitable?

Wed, 12/25/2013 - 09:41 | 4274881 Urban Redneck
Urban Redneck's picture

Same Difference as opposed to Same same, but Different

In the post WWI period- ALL developed the central banks were concerned with covering their central governments' past war debts and current OpEx and used various mechanisms from outright printing, to debt monetization, to the nationwide refi (a sort of South Sea Bubble redux) to cope with the debt loads (and universally fucked the responsible for the benefit of TPTB).

The way the banking system actually works today is not well understood, even on ZH. The way the banking system actually worked a century ago is truly esoteric at this point,even among professional bankers and economists.

The troglodytes who worship the false dogma of Jekyll Island mythology and mysticism neglect that not only was the US money supply practically correlated to real bill issuance issuance prior to WWI but the international f/x trade was largely a function of the spreads on the interest rate discount on domestic corporate paper between various international trading centers...

Which is why a Wiemar German would have done far better buying John "Printing Press" Keynes' two ply (that he was busy devaluing just as fast he could) than he would have been physical gold to protect his German savings.

Currency wars and central bank conspiracy with Fiance Ministries to propagate those wars are nothing new. What had changed was the adoption of a less disruptive approach to extracting compensation from the vanquished (the UNSC/UNCC framework). However, given the approach the ECB has taken with the vanquished in Greece and Cyprus among their "own" -- the bad old days look to be making a comeback, if this is they way "friends" treat each other.

Which is all to say that Germany would have been just as fucked regardless of the monetary framework, but precisely because of the punitive terms sought by their mercantilist vanquishers.

Wed, 12/25/2013 - 10:47 | 4274957 malikai
malikai's picture

Even though I agree with every point of yours, I +1d you because you used the word 'troglodyte'.

Wed, 12/25/2013 - 21:31 | 4275897 lewy14
lewy14's picture

Very informative, thanks.

Wed, 12/25/2013 - 05:29 | 4274751 edwardo1
edwardo1's picture

Did someone say the 880-900 range? Around that time the screens may well go dark where buying physical is concerned, because mining output globally will be set to approach nil. And mining output makes up the flow in the "gold market". GLD, the biggest single paper gold entity in existence, whose inventory this year has now been drained of 40% of its stock, will either be closed or close to being closed. It will be the summer of 1999 all over again, but no CB will be interested in feeding physical into the market to satisfy giants who are trying to source the metal.

No, they won't, because The Euro is here to stay, the IMF$ isn't and, well things couldn't be more different. So, CBs around the world will coordinate for a different sort of response. Hint: it will be profoundly positive for those who possess physical gold.

Wed, 12/25/2013 - 20:17 | 4275792 Dugald
Dugald's picture

 

DoChenRollingBearing 

Me tooooooo! And I'm nearer to the East then you cobber!

 

Wed, 12/25/2013 - 22:50 | 4275988 DoChenRollingBearing
DoChenRollingBearing's picture

East Asia makes lots of quality bearings at good prices!  Value, fishez!

Wed, 12/25/2013 - 13:50 | 4275265 Debugas
Debugas's picture

id put it this way - people in countries with history of fiat high inflation see gold as the way to preserve savings.

Tue, 12/24/2013 - 19:44 | 4274267 zaphod
zaphod's picture

Pettrogold will be the end of the dollar 

Wed, 12/25/2013 - 00:35 | 4274616 kchrisc
kchrisc's picture

Tried to toast some dollars this morning, intending to smother them with jam. Didn't work. But still didn't change the fact that the dollar is toast.

Wed, 12/25/2013 - 01:02 | 4274640 Kirk2NCC1701
Kirk2NCC1701's picture

If they broadcast the GPS location of their precious stash (public BTC address) and then foolishly provide us with the keys (private BTC address) to said stash, they should be no less surprised than that Miller guy from Bloomberg, to have it stolen/removed. Any A Team or Ocean's Eleven could pull it off.

Wed, 12/25/2013 - 10:35 | 4274938 caShOnlY
caShOnlY's picture

Pettrogold will be the end of the dollar 

when that day comes, when, the greatest education to the american masses will be given in one fell swoop. 

It will be at that point every moron who really believed he was educated will be reduced to nothing more than a sack full of crushed assholes.

Tue, 12/24/2013 - 19:42 | 4274268 I am Jobe
I am Jobe's picture

Amerikans pride  themselves with IPHONES, IAPPS and Air Jordan. Ah the intelligence level is beyond ones comprehension. O don't forget Corporate Logo Coffee Mugs. 

Wed, 12/25/2013 - 03:12 | 4274717 ich1baN
ich1baN's picture

You've never lived in China then..... they sell kidneys for last year's ipad.

Tue, 12/24/2013 - 19:49 | 4274288 Greenskeeper_Carl
Greenskeeper_Carl's picture

Why would anyone buy gold or silver at these artificially low prices when stocks are breaking new all time high records every day!!!

Tue, 12/24/2013 - 21:08 | 4274399 Boston
Boston's picture

As a value investor, I find only two broad asset classes that I can arguably claim are 'on sale'----precious metals and Treasuries. I'm buying both.  

Tue, 12/24/2013 - 22:02 | 4274489 Lore
Lore's picture

It was the same in Zimbabwe.  Every investor became a millionaire.  Ahem.

Wed, 12/25/2013 - 02:57 | 4274703 cynicalskeptic
cynicalskeptic's picture

Millionaire?!?!     humph....   I'm worth TRILLIONS, thousands of trillions in Zimbabwe dollars (at least the ones they issued right before they lopped off 12 zeroes - and then had to stop printing because they couldn't pay for paper)

Can't even wipe your ass with those banknotes - they clog the plumbing.

Tue, 12/24/2013 - 22:17 | 4274503 falconflight
falconflight's picture

/sarc on/ right?

Tue, 12/24/2013 - 23:02 | 4274547 Greenskeeper_Carl
Greenskeeper_Carl's picture

Ha yes. Sarc big time.

Tue, 12/24/2013 - 20:03 | 4274304 seek
seek's picture

Oh man, this is rich: "Experts in the field believe that the international move towards investing in various sectors and the stabilization of these moves have decreased the investment in gold with China and India lessening their investment in gold. The demand on gold from central banks has also lessened."

Yeah, the reduced demand from these sources explains why CME inventories are plunging and GLD is being liquidated for delivery. Might as well say that Germany has so much incoming gold they're halting repatriation activities!

Whoever these "experts" are, 1) they're full of shit and 2) they work for TPTB and not investors, and 3) they're likely acquring physical to cover for the multitude of thefts they committed while trying to suppress the prices.

Mon, 01/06/2014 - 22:04 | 4306415 Angus McHugepenis
Angus McHugepenis's picture

seek: Damn, you know how to spank reality!

Tue, 12/24/2013 - 20:06 | 4274311 WTFUD
WTFUD's picture

Yeah the House of Sawd don't want no more steenkin' $$$$ for their oil; they want gold.

Wed, 12/25/2013 - 09:54 | 4274894 Gordon Freeman
Gordon Freeman's picture

Yeah--a whole $10 billion worth!  Woo-hoo--that's a real vote of confidence--get fucking real...

Tue, 12/24/2013 - 20:18 | 4274327 Fix It Again Timmy
Fix It Again Timmy's picture

If you wanted to become a Vietnamese boat person, the only currency being accepted for space on a boat was GOLD - piastres were laughed at.... That's Gotta tell you something....

Wed, 12/25/2013 - 00:00 | 4274587 fasTTcar
fasTTcar's picture

I bought a Tael of Kim Thanh bars a few years ago that was smuggled out from boat people during the Vietnam war.  The ones from the 60's and 70's were wafer thin and meant to be sewn in someones clothes.

Here is a good anecdotal story from the period - http://www.usagold.com/gold/coins/kim-thanh.html

 

Tue, 12/24/2013 - 20:35 | 4274345 cpnscarlet
cpnscarlet's picture

This article is gold-negative. Just like any other article in a written language.

Tue, 12/24/2013 - 20:59 | 4274379 IridiumRebel
IridiumRebel's picture

Some fag said gold will do chart porn to 800 dollas. It'll hit a triple floor Fibonacci bottom top side double down cunnulingus formation Into a triple Lindy and then Hindenburg Omen into a Quadruple London Whale cock. I speak traitor. I know gold. Look at the chart porn. It doesn't lie.

Schlong Bitcoin and Twatter.
Short pancakes and bullshit.

Wed, 12/25/2013 - 00:03 | 4274591 Angus McHugepenis
Angus McHugepenis's picture

Iridium: Geezuz... I had to read that 3 times then stick my head between a huge breasticle rack and do the motor boat sound before I could comprehend it. I got it now, and I'm in love with that huge rack!

Thanks

Wed, 12/25/2013 - 00:14 | 4274598 IridiumRebel
IridiumRebel's picture

Tits.

Wed, 12/25/2013 - 01:01 | 4274634 Prisoners_dilemna
Prisoners_dilemna's picture

"The gold has marked a drop this year from $1,920 per once to $1,193.3"

I guess Gold does have BTC beat. lol  +1 IR   0 P-D

Wed, 12/25/2013 - 09:06 | 4274856 IridiumRebel
IridiumRebel's picture

Steal BTC from the comfort of a desk and CPU screen whereas you try that with my AU/AG and you bleed to death on the lawn. Between gold and BTC, I'll take gold. I got not hatred of BTC. I just think between the two, AU is a better hold. I wish AU had the transportability of BTC.

Tue, 12/24/2013 - 21:04 | 4274395 Paracelsus
Paracelsus's picture

It is portable,accepted anywhere,and gov'ts hate it because it can't be inflated (printed).

Any idiot on this planet can see when the debt storm hits,much nicer to be an armed peasant,than a reviled banker (and his family).

Tue, 12/24/2013 - 21:34 | 4274449 tenpanhandle
tenpanhandle's picture

you can say that again.

Tue, 12/24/2013 - 22:28 | 4274511 gtb
gtb's picture

...and so he did.

Tue, 12/24/2013 - 21:04 | 4274396 Paracelsus
Paracelsus's picture

It is portable,accepted anywhere,and gov'ts hate it because it can't be inflated (printed).

Any idiot on this planet can see when the debt storm hits,much nicer to be an armed peasant,than a reviled banker (and his family).

Tue, 12/24/2013 - 21:11 | 4274404 Cacete de Ouro
Cacete de Ouro's picture

The Saudis have always swapped oil for gold. I'm not sure why it's such a big surprise. Just to give a few examples, it was going on since the 1930s via Aramco gold payments, via various South African gold for oil deals in the 70s and 80s, then in general via the 70s recycling of oil revenues and the Saudis as Commertzbank bidders in the IMF and US auctions, then via the more formal gold pool initiated in the 80s via the BIS which essentially is still going on. The Saudis have a shedload of gold that they don't talk about....many thousands of tonnes

Tue, 12/24/2013 - 21:14 | 4274408 Al Huxley
Al Huxley's picture

I'm reposting this from another thread, because for all these countries that seem to be buying a large amount of physical gold, I've discovered a supplier that apparently is able to meet whatever demand is thrown at them.

They should talk to Keith Weiner at Monetary Metals.  I was reading his article yesterday ( http://news.goldseek.com/GoldSeek/1387808100.php ) and he says

By the way, for those inclined to think that this is only the price of “paper” gold or silver, we have as much gold metal as you would care to buy at $1900 or $1600 or $1300, or whatever the demand for physical metal is supposed to be.

So It seems that China, India, the Saudis, etc. will want to be talking to Monetary Metals, who are able to supply any demand at a nominal premium over the current spot price, based on their calculations of basis and cobasis.

Tue, 12/24/2013 - 21:22 | 4274418 Newager23
Newager23's picture

The reason gold prices have been trending down is because the economy has stablized. This has killed the fear trade. Everyone I talk to only has one thing to say about gold, "It's heading lower." Thus, they don't want to catch a falling knife.

People like to follow the herd, and the herd is not buying gold (in the west). This makes it easy for the TPTB to manipulate the paper market and push gold prices down to where they want them: lower and lower.

Anyone who denies that manipulation is taking place simply has not done any homework. Most of the big movements down in the gold price have taken place after hours by very large trades. This is likely illegal, but the chances of the culprits getting into trouble is a very low probabillity. So it continues. 

The fear trade will come back and then the herd will push prices back up. Will that be in 2014? I think so, but it could be 2015, or perhaps even 2016. But sooner or later the global macro picture will shine a very bright light on gold. I am fairly sure that we will look back at this price correction in 2013 and see that it was simply a buying opportunity. It will be just like 2008, the last time gold prices plunged. 

I think most of us at ZH know how many black swans are possible at any time to appear. And that our economic policies are so insane that once events turn south it will be nearly impossible to right the ship. Under this environment of looming crisis, can gold really remain low for very much longer? What are odds? The chances of gold staying under $2,000 for another 3 years are about 1 in 100 if you asked me.

www.goldsilverdata.com

 

 

 

 

Wed, 12/25/2013 - 01:56 | 4274661 Tinky
Tinky's picture

The economy has stabilized? Really? To which economy, pray tell, are you referring?

Wed, 12/25/2013 - 05:27 | 4274750 geewhiz
geewhiz's picture

Newager means the MSM grazing sheeple think the economy has stabilized, obviously informed people know better.

Wed, 12/25/2013 - 08:43 | 4274847 GetZeeGold
GetZeeGold's picture

 

 

is because the economy has stablized.

 

Is that what we're calling printing money out of thin air these days?

Thu, 12/26/2013 - 00:16 | 4276096 Spumoni
Spumoni's picture

Sure it has-95% of the population has been drained of cash and saddled with debt. It'll be totally stabilized when the remaining 4% have been treated with equal contempt. 

The de-facto takeover of popular government (def#2 on 'popular') by corporate interests heralds the end of the Age of Human Rights. A flash in the historical pan, that made everything possible for the 1%. After they have killed the golden goose for good, THEN we serfs can have fun surfing microwave cannon blasts on our golden surfboards. 

Better shoot the bastards now, while there's a chance. And buy some insulated boots.

Tue, 12/24/2013 - 21:30 | 4274444 Crusader79
Crusader79's picture

You can't go wrong following the financial path of unsophisticated, uneducated third world citizens.

Tue, 12/24/2013 - 21:50 | 4274471 mt paul
mt paul's picture

sometimes

less is more...

Tue, 12/24/2013 - 21:53 | 4274473 IridiumRebel
IridiumRebel's picture

You can't go wrong following the financial path of evil, sociopathic first world banksters who would gut a grandma to keep the financial rape of all world citizens via total manipulation, lying, graft, murder and war.

Fixed it for ya.

 

Wed, 12/25/2013 - 02:30 | 4274687 cynicalskeptic
cynicalskeptic's picture

And putting my trust in Wall Street financial advisors has worked SO well in the past........

 

sometimes the 'unsophisticated and uneducated' are rightfully suspicious of complex sophisticated financial instruments - the kind that left so many screwed over in 2007..... the 'unsophisrticated and uneducated' have seen simple markets manipulated and do not trust anything that can be controlled by others.......   ther 'unsophisticated and uneducated' - ESPECIALLY in the third world where governments and officials have repeatedly proven they can NOT be trusted - prefer to have their savings in something that is viewed as having intrinsic value and worth - be that cigarettes, ammunition or gold 

Thu, 12/26/2013 - 00:27 | 4276122 Spumoni
Spumoni's picture

Well, if you have ever worked in an unsophisticated third world country, then several things would occur to you:

The lack of sophistication makes everything more transparent, leading to more productive personal decisions (including when to shut the fuck up and get out of the way).

The, ah, lack of education (yeah, last time I looked some 72% of college graduates in former Commonwealth countries-aka 3rd World- were Oxford or Cambridge lettered professionals.) means that such middle class as exists (currently higher percentages of population than the US) is better educated than you are likely to be.

Because the poor of the third world live so close to the earth, they will outlive most of us in a calamity becuase they can still hunt, garden, make things from scratch and preserve food without freezers.

It is also true that 3rd worlders know exactly what real poverty looks like. Most of my countrymen don't even know that 97% of the rest of the world's population isn't white. I used to get a lot of amusement when they would step off the plane and wonder where all the blacks came from...they sure as hell can't relate to starvation and random police brutality-yet.

Tue, 12/24/2013 - 21:40 | 4274453 monopoly
monopoly's picture

When the tide turns we will be amazed at the returns we will have. At some point and soon, reality will set in and the liars and robbers of our freedom, our currency and our way of life will be sought out, found and be damned into eternity. Just a little more patience.

Tue, 12/24/2013 - 22:05 | 4274490 pachanguero
pachanguero's picture

I live in Thailand.  I see this with my own eyes!

Tue, 12/24/2013 - 22:08 | 4274494 Being Free
Being Free's picture

never mind

Tue, 12/24/2013 - 22:41 | 4274526 topspinslicer
topspinslicer's picture

It sickens me to see a statist like obomba wearing gold. I guess it would only be worse if he says "if you like your gold you can keep it."

Tue, 12/24/2013 - 23:17 | 4274556 loveyajimbo
loveyajimbo's picture

Well... not so portable... try flying out of the country with 200 ounces... you will be buggered here and buggered no matter where you land.  Better take some Gold-Bond backside lube.

Tue, 12/24/2013 - 23:52 | 4274581 Angus McHugepenis
Angus McHugepenis's picture

Jimbo: Not sure where this idea of "trying to fly out of the country with 200 ounces" comes from. I'm also not a believer in buying shit over the internet in hard times. As LawsofPhysics keeps saying, "markets will become local" in SHTF scenarios. And I believe he is right. Why? Because I've already been living the "local market" life for many years. No need to get on a plane with my stash, no need to go to some other location that I am not familiar with that can have far more security concerns than staying where I am.

Wed, 12/25/2013 - 01:10 | 4274643 Prisoners_dilemna
Prisoners_dilemna's picture

But what if there isn't a SHTF scenario.

What if a war-mongering govt enabled by a cartel with monopoly power over money printing keeps kicking the can for the next 30 years?

WHat if instead of a SHTF scenario we have a scenario such as what Japan has been thru for a while now?

You or your kids decides opportuinty is elsewhere.

In that case. Pack the lube.

 

A global free market would be a good thing no?  Its the global reach of the bankers and the MIC that's the problem??

Wed, 12/25/2013 - 02:16 | 4274673 Tinky
Tinky's picture

"What if a war-mongering govt enabled by a cartel with monopoly power over money printing keeps kicking the can for the next 30 years?"

There are few suppositions floated on ZH more ludicrous than this. Very few, in fact.

Wed, 12/25/2013 - 09:58 | 4274900 Gordon Freeman
Gordon Freeman's picture

You are a deluded moron--they most certainly can kick the can for a very long time...

Wed, 12/25/2013 - 10:07 | 4274906 Tinky
Tinky's picture

If you were trekking in the arctic, you'd be dead within a day or two, having failed to notice the very first fissure in your path.

Wed, 12/25/2013 - 10:07 | 4274911 Gordon Freeman
Gordon Freeman's picture

Are you drunk this early in the morning? Sad...

Wed, 12/25/2013 - 11:46 | 4275016 Tinky
Tinky's picture

You somehow believe that the status quo can be maintained for 30 years and accuse me of being inebriated?

Apparently irony awareness is not your strong suit.

Wed, 12/25/2013 - 02:34 | 4274689 cynicalskeptic
cynicalskeptic's picture

The fact tht they managed the can-kicking in the real estete market for almost a decade was damn near miraculous.   

Wed, 12/25/2013 - 04:08 | 4274725 Angus McHugepenis
Angus McHugepenis's picture

I don't have kids.

Wed, 12/25/2013 - 09:25 | 4274872 GetZeeGold
GetZeeGold's picture

 

 

If they existed.....I'm sure they would thank you for that at this juncture.

Wed, 12/25/2013 - 05:22 | 4274743 geewhiz
geewhiz's picture

In that case you can take lessons from the Indians about transporting physical and move it in a leisurely way.

Tue, 12/24/2013 - 23:32 | 4274570 thewayitis
thewayitis's picture

 

  SO with most central banks printing $$. How long before the jig is up? The 10 year starts to climb....Approaching 3% now

I say GOLD starts to shine this year.  Especially if they tell China....(sorry we can't FILL your order).

We can't friggin PRINT forever .....There WILL be a reset. I say a 30% hit to the dollar. We wake up one day and government says,

Don't worry, be happy....We took care of it for you. Your bank statement will show the reflection. Oh, you need to turn in the $$

under your mattress or it will be worthless in 30 days......  Keep Stackin ......

 

 

Wed, 12/25/2013 - 10:00 | 4274902 Gordon Freeman
Gordon Freeman's picture

So you're saying Euros, Yen and Renminbi can't be printed??  I assure you that when the world economy is on the line, the dollar will not lack for appeal...

Tue, 12/24/2013 - 23:42 | 4274579 Kina
Kina's picture

The price of gold is not being determined by supply and demand, or market sentiment of how people think and feel about gold. That is a misguided traditional argument. There is No market as we should all clearly understand now.

 

The price of gold was reaching highs of 1900 when the vast majority of the public and wall street investors were totally ignorant of it or had no interest in it. The demand was from people with money and understanding. Not momentum chasers.

 

The reason of gold price fall as should be freaking obvioius to all that you would think they would stop with technical analysis rubbish.....it is when you have the Fed drop 400 tons of paper gold onto the market in one morning or millions of oz of silver dropped in minutes in the thinnest market. This is nothing to do with sentiment or your investor friends saying they think gold or silver is going to do such and such...they are not even part of the game.

 

TPTB have been trying to get gold out of the monetry system for decades....as per the Kissenger notes/discussion ages ago.

 

But when you dilute fiat at a trillion a year...and in Europe and China.....gold and silver is a fucking must...no matter how low the price can be Artificialy made through trading paper non existent gold... leveraged at 92:1

 

Wed, 12/25/2013 - 00:27 | 4274612 kchrisc
kchrisc's picture

isn't it fitting, and maybe a bit ironic, that canaries and gold are yellow.

Wed, 12/25/2013 - 00:52 | 4274626 Kirk2NCC1701
Kirk2NCC1701's picture

No 'magic' or 'genius' in this move. The Saudis are simply doing what the 'nutty' (zealot) fraction of gold owners don't understand: Diversification.

They got so much wealth in oil and fiat -- they effectively own Citi, and are thus a Prime Dealer and significant shareholder of the Fed (and thus your ass) -- that it's a no-brainer for them to buy tons and tons of gold.

Plus they sink a LOT of their Petro-dollars into the American MIC. They buy a lot of our high-end weapons and thus keep the MIC profits (and the careers of Buyers, Executives and Generals) going.

They also invest a lot in the UK and France, which follow the US in the size of their global MIC footprint. Look for "The essence of money" on YouTube, which is an eye-opening clip taken from the movie 'The International'. Arms and Conflicts are about DEBT.

Allocate and plan accordingly.

Wed, 12/25/2013 - 01:26 | 4274638 Youri Carma
Youri Carma's picture

That's just simple logic because 'Gold is honourable' and paper is not! (take special notice - Actor Peter O'Tool R.I.P. at age 81, 15-Dec'13)

http://www.youtube.com/watch?v=VvO5uSwHXGE

The International Monetary System & The Future Of Money By Sheikh Imran Hosein http://www.youtube.com/watch?v=uNnIC6dkpoI

GOFO (Gold Forward Offered Rates) negative again since 18 December http://www.lbma.org.uk/pages/index.cfm?page_id=55&show=2013

What is GOFO and What Does it Mean for Gold Investors? http://www.pmbull.com/gofo-negative-gold-forward-offered-rate-what-does-...

Harvey Organ: GOFO rates are still slightly positive, except for the negative one month rate which means backwardation for this month.   The rates are mixed in the positive for the 2, 3 and 6 months, as these months seem to be also heading for backwardation. http://harveyorgan.blogspot.nl/2013/12/dec-20gld-surprisingly-gained-54-tonnes.html

 

 

Wed, 12/25/2013 - 02:42 | 4274695 Kina
Kina's picture

To the MarketWatch like shill here.

 

Please open your mouth when you sink beneath the water, because I will be pissing in it.

 

USA printing a trillion plus a year sure holds up the value of the USD...sure your stocks are going to worth lots of fiat but your fiat wont buy the shit out of my dogs arse. Oh wait maybe those connected will dump their stocks for real hard assets and leave you the stuck at the door...  open wide dude....I might add a few lumps with my piss, just as a bonus.

Wed, 12/25/2013 - 05:46 | 4274737 pcrs
pcrs's picture

I am starting to doubt the value of gold after having been a bull since 2003. The historical case has always been that you can stuff your net worth up your ass and run from your government and fellow tax serfs that have gone crazy and captivated by a hope and change politician instituting facism. With metal detectors at the airports that case is gone.

In poor countries it still holds this purpose, since their net worth is small and a piece of jewelry does the trick and is currenctly at least not confiscated.

It will still hold up when the SHTF, which it no doubt will, but the main purpose is defeated by the surveillance state. BTC still offers the oppertunity to do that and I guess that is why this has been doing so well. 

Ofcourse the danger remains that my explanations follow the price movements

Wed, 12/25/2013 - 14:36 | 4275325 DoChenRollingBearing
DoChenRollingBearing's picture

If you trust having some gold in another country, and if you travel just enough, you can still take out gold to ensure your future "there".

Two ways:

1) Take a large amount (over $10,000 worth) and just declare it on the outbound Customs Form before you get on your international flight -- get to that airport at least 45 minutes early to find them...  You are allowed to take our as much as you want ($, gold, any very liquid financial instruments), but you have to declare it if over $10,000 worth.

2) Just take out small amounts (1/10 oz and 1/4 oz gold coins come to mind) each time you go "there".

It's not rocket science, it can be done.

***

I too am looking at BTC as a complementary way of moving $$$ out.

Thu, 12/26/2013 - 00:32 | 4276134 Spumoni
Spumoni's picture

This is why you have a boat.

Wed, 12/25/2013 - 08:44 | 4274848 supermaxedout
supermaxedout's picture

Gold is very interesting

If India would have not been stopped buying gold, then the Indians would have not stopped before they had bought all the gold in the world. Their thurst for gold is unsatiable. The same accounts for The Chinese mentality as well as the the rest of Asia including the gold loving Arabs. But  also the Western people love gold.

In my opinion gold has the following problems:

1) gold is money. And money is power.  So gold is always a politicum. The value of gold is going up or down depending on the actual policy of the most powerful, which are identical with the ones owning the most gold (leaving the military aspect aside for a moment)

2) Gold is beauty. The whole mankind loves gold. Its is an essential part of the human culture. You have to give gold in exchange for a woman. Or golden rings are exchanged at the wedding ceremony, etc, etc. This said, it is clear that there exists a  mass market for gold in all cultural hemispheres.

So there are two markets.

1)The market were gold is a politicum

2 The market where gold is part of the culture

When the price for gold is high, then the broad world population is excluded from gold. When the price is going down sales of gold into the public is rising.

Presently the situation is as follows in my opinion:

The power elite of the West did not manage to kill golds role as a monetary asset. This is clearly indicated by many, many facts. Number one fact is, that Central Banks increased their gold holdings during the past years.

So there is a dilemma. If the Central Banks do sell all their gold they are giving up their  power. Without gold a central bank is nothing. At least this is the situation today. And the funny thing is if the Central Banks would sell all their gold at once it would drive down the price but not for long. Because all of the gold would be sucked up by the gold loving world population. Everybody would stack at bargain prices. That is clear simply because their is no alternative. Or what is the beauty of bitcoin?

But since gold is still, besides the US Dollar, the most important asset in finance it would be a very hazardous game for the Central Banks to go away from gold. Especially when observing what the US government is doing with the Dollar. So the Central Banks are not going to sell their gold because it is presently their last anchor of stabilitry when worst comes to worst which is a US Dollar collapse.

However, it should be noted, that scientific developemnts of the recent years have opened up a third market for gold.  This is a very new develoipment which is just now slowly transformed into products and industrial processes. But this market is going to become very huge in my opinion.

The Third Market for Gold: Gold as a Chemical Catalysator

read this and you will know more and think for yourself:

Gold hits its golden age as a high-tech material

https://www.llnl.gov/news/aroundthelab/2012/Aug/ATL-082212_gold.html

and this:

Chemists go for gold

http://sciencewatch.com/articles/led-thomson-reuters-citation-laureates-...

 

Wed, 12/25/2013 - 08:57 | 4274854 Sufiy
Sufiy's picture


Jesse: Record COMEX Gold Claims Per Deliverable Ounce of Gold at 92 to 1


 Jesse reports that we have another All-Time-High leverage at COMEX with 92 Owners per one once of Gold. http://sufiy.blogspot.co.uk/2013/12/jesse-comex-gold-claims-per-delivera... Jesse: Record COMEX Gold Claims Per Deliverable Ounce at 79 to 1 GLD, MUX, TNR.v, GDX

 
  "Jesse reports that the Game Of Musial Chairs in the Western Fractional Gold Reserve System is getting into the new stage with the record level of leverage. Now report from Bloomberg can be put into another perspective." 


  Bloomberg: London Gold Vaults Are Virtually Empty GLD, MUX, TNR.v, GDX


Bloomberg quite suddenly provides some really interesting information about the state of the gold market and ongoing manipulations around it these days. Could the reports about JPMorgan being Net Long Gold now be correct in the end?

Wed, 12/25/2013 - 09:18 | 4274868 sudzee
sudzee's picture

Lybia, Syria, Sudan, Somalia, Iran and soon to add Turkey. Over in Libya, Muammar Gaddafi had instituted a state-owned central bank and a value based trade currency, the Gold Dinar. Gaddafi announced that Libya's oil was for sale, but only for the Gold Dinar. Other African nations, seeing the rise of the Gold Dinar and the Euro, even as the US dollar continued its inflation-driven decline, flocked to the new Libyan currency for trade. This move had the potential to seriously undermine the global hegemony of the dollar. French President Nicolas Sarkozy reportedly went so far as to call Libya a “threat” to the financial security of the world. So, the United States invaded Libya, brutally murdered Qaddafi ( the object lesson of Saddam's lynching not being enough of a message, apparently), imposed a private central bank, and returned Libya's oil output to dollars only. The gold that was to have been made into the Gold Dinars is, as of last report, unaccounted for.

According to General Wesley Clark, the master plan for the "dollarification" of the world's oil nations included seven targets, Iraq, Syria, Lebanon, Libya, Somalia, Sudan, and Iran (Venezuela, which dared to sell their oil to China for the Yuan, is a late addition). What is notable about the original seven nations originally targeted by the US is that none of them are members of the Bank for International Settlements, the private central bankers private central bank, located in Switzerland. This meant that these nations were deciding for themselves how to run their nations' economies, rather than submit to the international private banks.

Now the bankers' gun sights are on Iran, which dares to have a government central bank and sell their oil for whatever currency they choose. The war agenda is, as always, to force Iran's oil to be sold only for dollars and to force them to accept a privately owned central bank. Malaysia, one of the new nations without a Rothschild central bank, is now being invaded by a force claimed to be "Al Qaeda", and with the death of President Hugo Chavez, plans to impose a US and banker friendly regime on Venezuela are clearly being implemented.

C/B's behind the murder of hundreds of thouands to maintain dollar control. Russia, China, India and Indonesia building reserves to compete. Will take a bit more time to build military then dump dollar en mass. Empires die slowly.

Wed, 12/25/2013 - 13:01 | 4275157 MrVincent
MrVincent's picture

Currencies will come and go, but there will always be Gold!

Wed, 12/25/2013 - 13:04 | 4275166 unwashedmass
unwashedmass's picture

 

actually, what's happening now is the US' christmas gift to the world --- all the gold we have available at bargain basement prices......

you could call it the "going out of business" final sale......

 

So big smoocheroooo to Bennie Boy and Jamie D!!!!

Wed, 12/25/2013 - 13:58 | 4275275 Debugas
Debugas's picture

gold was in a bubble for the last several years and is going down to its average

gold is still 40% up on a 5-year chart

 

 

Wed, 12/25/2013 - 16:53 | 4275547 boeing747
boeing747's picture

Bing ladden was shot to death on the day when gold hits all time high. Gold is closedly watched on ben's screen.

Wed, 12/25/2013 - 22:56 | 4275996 Herdee
Herdee's picture

No gold left today amigo...http://www.gata.org/

 

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