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Gold Soars After Chinese Currency Devaluation
Yesterday, immediately in the aftermath of the PBOC's dramatic devaluation announcement, we remarked the following:
Been a while since tens of millions of Chinese rushed into gold and bitcoin
— zerohedge (@zerohedge) August 11, 2015
To be sure, while it will take the Chinese mainland a few more hours to realize just what happened, and that once you unleash the devaluation genie in a global currency war you can't simply put it back in, which means over one billion Chinese will soon be scrambling to preserve their purchasing power (but not in the stock market which particular bubble burst just last month and taught millions a very harsh lesson in get rich quick schemes), some fast thinkers realized that not only will capital outflows explode in the coming weeks and months, but that holding one's savings in Yuan will be, well, foolish.
As a result, after initially tumbling for some inexplicable reason after the PBOC announcement, gold is now soaring back to levels from mid-July and going higher.
Here we eagerly await as the BIS' Benoit Gilson sells a few billion in paper gold just to reset the price of gold lower as a surge in gold, and a loss of faith in paper money, at this juncture in just broken out global currency wars, is the last thing the central banks' central bank can afford.
But wait, there's more: because any day now the PBOC will update its revised foreign reserve and gold holdings. And so the next big leg up in gold will take place when it is revealed that the PBOC had only exposed a portion of its "new" total gold inventory, and that with every passing month it will simply reveal more and more as central-planning conditions demand it.
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still in the band where its been kept for months now
Will probably go below 1100 again in a day or two.
same ones who can bounce stocks up at will can also dump naked shorts into the metals markets doesn't matter if you only hold metals as an insurance policy against _______ (fill in the blank)
I agree. The naked shorts usually dwarf what little buying comes from China. Just one session on naked short selling from the Fed and its Wall Street agents and this surge is gone and then some...
I'm still very bearish on gold for this year. Will be buying more next year.
i'm in "hold" mode, sitting between 15% and 20% of total assets anyways
Obviously the real boost for gold will be when the US re-enters the currency war. I wonder how long they can pretend to be on a tightening track without the whole thing falling apart, granted that may be their plan.
Kill the Dollar https://www.youtube.com/watch?v=9cjbbt__78U
White flag and For Sale signs. Elaborately planned overthrow of a nation implemented over a century and supported by the products of failed nations who regurgitated a person who rose to a level of recognition, envy, resentment, revenge, greed. All we need is a comic book hero.
"Gold soars after Chinese Currency Devaluation"
Standing by for an unsoar in 5,4,3,2,1...
On another subject indirectly involving gold, I notice that the stories about the massive river pollution from the former Colorado gold mine leave out the fact that one of the main chemical poisons in the wastewater is potassium cyanide, also called gold cyanide for its use in refining gold. Why alarm the peasants, the EPA liars figure.
NYT (10August2015)Testing by the E.P.A. — an agency typically in the position of responding to toxic disasters, not causing them — found that the wastewater spill caused levels of arsenic, lead and other metals to spike in the Animas River. On the day of the accident, a team from the agency had been investigating an abandoned mine about 50 miles north of here. Called the Gold King, it is roughly 1.5 miles long and about 700 feet tall at its highest point. The mine had been abandoned for nearly a century, but between roughly 1890 and 1920 it produced 350,000 ounces of high-grade gold, according to its owner.
Seems to be a false flag "environmental disaster" to enrage the retarded sheeple against gold mining and gold.
Perhaps an equally interesting observation is a govt agency opening a century old gold mine. Hmmmm!
Let the squeeze begin.....
a 3% bounce from the lows after a 40% crash... is it that easy to make the longs happy again !!
You aren´t buying it anyway, so go back to looking at your Apple stock.
Bearish at the bottom. What a unique strategy you have.
See Beurs.com: Is-the-dollar-gold-price-controlled-by-JPM-in-cooperation-with-the-BIS?
Inventory will fly away but the price might be crashing a bit too... paper gold price has (yet) nothing to do with real demand.
That will change, but not yet...
That brings up some interesting questions. Does the BIS really hold over 10000 tons of physical gold like it says it does? If so what might it be willing to do with that gold in a crisis?
BIS=IMF=FEDRes....they only use paper to to accomplish their goals, not phyzz
No.
S.A.R. - SELL ALL RALLIES
5 year chart is all you need to see to know which direction gold and silver are going.
Re-purchase at 50% discount in a few years.
SELL ALL RALLIES
I can't believe even we here at ZH still speak of gold & silver in dollar/yuan/euro terms.
(Rounding for clarity)...one hundred years ago an ounce of gold "priced in fiat" was $21.00 equaling 300 loaves of bread @ 7 cents a loaf. Today it's 495 loaves of bread @ $2.25 a loaf.
There has been no "baking miracle technology" unleashed on the world where eating bread makes ones pecker or breasts grow larger has there...lol...yet gold yields more loaves per ounce today and now it takes TWO AND A QUARTER DOLLARS to buy just ONE measly loaf of bread, it's still just a loaf of bread isn't it?
Now I hope you all see clearly the results of a full century of theft...and value ;-)
No advances? You forgot added micro-cellulose.
lol...and colored bread wrappers for the loaves, it's self-rising-multii-hued hedonics! ;-)
FYI. There was and is a "baking miracle technology". A 100 years ago bread was made almost entirely by hand. Not so much today. This is also true of harvesting crop, manufacturing flour, and delivering products. :)
;-)
Beware, it was a trap to get some statist to explain to me why I can't get just north of 14 loaves for a buck with this strong dollar I have....lol.
as someone commented to me before...this isn't the deflation you are looking for
BTF afternoon D
I bought some at 1150 Euros, some at 1100 Euros, etc, etc. Some months more, some months less. Same for silver.
I didn't buy any when it was at the top in 2011 for some reason, can't tell you why. Something told me to wait, but neither did I sell (although something inside was saying, "take some money off the table."
I figure it'll all even out in the end.
$19 change is a soar????
Really Tyler?
Yesterday up 0.7%, today up 0.5% and both times ''gold is surging???
Poor goldbugz. Gold is down 40% from all time high and they still stick to gold :)
Imagine stock down 40% from all time highs. What would the headline on ZH be?