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Continuing Negative Real Interest Rates Sees Gold Rise Above $1,700/oz
From GoldCore
Continuing Negative Real Interest Rates Sees Gold Rise Above $1,700/oz
Gold’s London AM fix this morning was USD 1,713.00, GBP 1,091.10, and EUR 1,300.59 per ounce.
Yesterday's AM fix was USD 1,659.00, GBP 1,064.08, and EUR 1,277.04 per ounce.
Gold rose 2.5% yesterday and broke $1,700/oz to $1,712.80, its biggest one-day gain in the past 4 months, as the US Federal Reserve’s 11 out of 17 members voted that interest rates would likely remain near zero into late 2014.
Investors sought safe haven refuge into gold fearing their portfolios would lose value as Central Banks flood the markets with loose monetary policies and more cash for governments that can't seem to manage their balance sheets. A group of 7 major economies now have interest rates that average .5%.
Spot gold rose 2.7% to $1,710.44/oz by 4:33pm EST (21:33 GMT).
Technical buying also propelled prices after the metal broke above its 100 day moving average for the first time in 1-1/2 months.
Silver also rallied up 4%. Today's Comex February gold option expirations will show more activity in the gold markets. One trader stated that gold's gains on Wednesday could be due to a huge cover on a short position before today's option expiration.
For breaking news and commentary on financial markets and gold, follow us on Twitter.
NEWS
(Reuters)
Gold rises to 6-week high on Fed rate vow
(Bloomberg)
Fed: Benchmark Rate Will Stay Low Until ’14
(Forbes)
Update: Gold Reclaims $1,700 After FOMC Statement Signals Fed More Dovish Than Thought
COMMENTARY
(MarketWatch)
The Federal Reserve on gold and silver
(The Street)
Gold Prices Soar as Fed Commits to Easy Money
»
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Gold has charged through the downtrend from the September 6th high of $1923. Back above the 50 Daily Moving Average as well. Looking bullish as is Silver, although needs to take out $38...
http://www.bullionbaron.com/2012/01/charts-gold-surges-happy-australia-d...
Silver still has a long way to rise until we could be considered at bubble prices: http://www.bullionbaron.com/2012/01/silver-bubble-what-silver-bubble.html
Though I definitely think we are on the cusp of Silver and Gold heading parabolic into the bubble phase of the bull market: http://www.bullionbaron.com/2011/12/goldsilver-on-verge-of-bubble-phase....
Oh cool! You agree with yourself & cite yourself as proof. I guess we can rule out schizophrenia.
PLEASE stop pimping your blog. Cripes. If it were any better than ZH I'd already be reading it.
Keep your pants on :)
The buzz recently, has been that gold buying by the big players, has bypassed the comex and London exchange and gone directly to the miners.
If true the only way to keep the gold ponzi going is for the nationalization of the mining industry and channeling the physical gold through the exchanges delivery system. But the bankster/gov./PTB will make the best of a situation and pump and dump before the move to mine nationalization. I’ve been watching the gold bug index for many years and always wondered why the HUI/GBI didn’t follow the gold market lately.
Well yesterday from noon to 4pm the HUI went from 495 to 530 a 7.2% rise in 4 hours! This ZHeeple is not normal for the last 4 years. Something is up!
http://finance.yahoo.com/q?s=%5EHUI
The Chinese turned back on today.....their holiday must be over
Their real estate bubble is bursting, they will drive the last great bubble of our generation, Gold and Silver.
If they are paying for oil with Au the dynamic is going to change somewhat from strictly investor interest/store of wealth..... well til this time next week anyway
Isn't that 'Gold for Oil' just a figment of Debka's imagination or has there been any reliable confirmation?
The story is everywhere, but seems completely speculative and unconfirmed as far as I can see.
Don't get me wrong, I'd love it to be true, but it seems that everyone is getting a little carried away with themselves.
Someone is just begging for Tyler to take him to the woodshed.
I remember someone being put in a wood chipper feet first. I can't remember if it was Meth Man or Johnny Bravo.
The Karl Hungus treatment (can't remember his name in Fargo). Ouch.
"Only $5 to dig from the ground!"
A phrase which will live in Zerohedge infamy.
Hard to say how much cred you can give these reports, but given the fantasy of finance in this nutty world why the hell not just go with it;
from RT
http://rt.com/news/iran-india-gold-oil-543/
From the MSM:
http://www.youtube.com/watch?v=MUL_VgxxYus&feature=related
Thanks for the RT link. Sounds like a credible story to me...
Has anyone read the crappy Marketwatch article referenced above? How do these idiots manage to hold down a job, writing such drivel?
RT did nothing more than source and unsourced DEBKA article.
Could someone comment on the reliability of RT as a news source? TIA.
Don't know RT, but in this case they are directly referencing Debka, which is not a noted truth-teller. They speak for effect.
A link from last year sheds some more light on the Iran-India-US-EU-China relationship, yes it is that complicated:
http://rhgroup.net/notes/the-india-iran-oil-payment-crisis
In an asset bubble prices always rise rapidly.
When prices rise rapidly, that is not always a bubble.
These two things get equated a lot lately. Falsely. Revisit the definition.
RT has given Max Keiser his own show while CNBC has given one to Cramer so have to assume that RT has more integrity...
Hey bullionbaron.
Fuck off and die.
It's worse than that.
Most popular show on TV: Gold Rush
Most popular movie rental on Netflix: The Treasure of the Sierra Madre
Newest vacation trend: Gold mining getaways
Gold mining getaways???
Real gold mining is filthy and dangerous.
This sounds like more fun.
http://www.craterofdiamondsstatepark.com/
I went there a couple of years ago. Tons of fun, even if you come away with nothing.
Not far to Hot Springs, either. Head there afterward for a nice bath in the springs. Hard to beat that.
Good to know. Looks fun. A friend told me the best time to go is at sunrise and/or sunset when the sun is low on the horizon and you can occasionally see the gems glint in the sun if you have your back to the sun and the plowed field in front of you. I would think if you worked in a team with handheld radios, you could guide your partner to where you see the glint.
Spa time in Hot Springs and then north for a run on the Buffalo National River.
Yep. This year's summer vacation plans are about to change.
Most popular show on TV: Gold Rush
I've been watching it. I have more physical gold then they have mined so far. I purchased it for less than what they have spent on equipment.
Good point. The Hoffman crew, the Dakota Boys, The Schnabels are true gold bugs. The only guys getting rich are their suppliers.
Poor Parker Schnabel. Works like a dog. We need more kids like him in this country.
How about when his mother showed up at the mine? Classic.
Everyone gettin rich because the advertisers pay big. The show is just a drama where they have actual construction equipment on set instead of props. Parker got the mine because Discovery paid him to run it for another season.
Dakota really did lose his house tho...
Long John Silver... I have tried to watch that show a few times. When first I stumbled across it, I thought it was a sitcom. Now I believe that the show must have received a large injection of cash from the producers or the 'gold miners' would have been tits up long ago.
MSM seldom does anything without a reason. Perhaps the goal of the show is to scare potential small investors away from mining stocks and into gold/silver ETFs? After all, most small investors have never been near a gold claim and have no clue how explorers/miners go about getting gold out of the ground and into coin/jewelry/bullion form.
One good thing about the show; It sheds light on how clueless most people joining gold rushes are... and also explains why so few 'miners' returned from California/Alaska/et al, gold rushes with less money or gold than they started with. If the show contained less commercials I might watch an entire episode.
Meanwhile, in that gold-mining juggernaut Down Under, the Aborigines are flashmobbing the PM. Can't imagine that it may have anything to do with mines on Aboriginal lands, new PM exchanges opening, the price of gold, etc.
$1,800 by next week, $2,000 by end of February.
Nice to see the usual OpEx monkies get caught with their pants down.........
mrgneiss... Imagine, The Fed announcing more ZIRP mere hours prior to options expiry. There must be some scrambling at the JPM and HSBC desks... or, there is some other news coming down the pike to help save the shorts.
As I posted a couple of days back... Fed's birthday cake decoration should include ZIRP FOREVER displayed prominently on the top... and also should include "our new mandates 1) Screw the savers 2) Screw the Main St economy 3) We don't need no stinking election cause we bureaucrats are calling the shots"
Yes Snidley, the FED's birthday is coming up - happy 100 to the Oligarchy!
Gold,gold, gold, sliver, gold, spam, beer, guns, ammo,gold, gold , gold silver and beeeerrrrrrr.
Seriously, I'm buying a beer brewing kit so when TSHTF I can brew my own beer since fresh beer may be in short supply months after.
Your wasting time and money brewing beer. You need to get a moonshine still instead. The economics of shine far outpace beer and it will provide a wealth stream in a barter society. This site will provide you with all the information you need.
If "fresh beer" is in short supply, so are "fresh" brewing supplies. A "kit" won't get you much beer if you don't have grains, malt, yeast etc...stockpiled.
You can make wine out of damn near anything. No heat needed. No need to put it under pressure.
I can do all three. Distill, brew, vint. Vinification is the easist...low profile, low cost.
I participate in a "Prison Wine" competition occasionally. It's amazing what you can do with scavanged ingredients.
The question is always whether the current PM action is loss of control, measured pressure release, or ... deliberate. The latter may sound crazy, but I think there is some chance that the Fed wanted to amplify their statement with some dramatic PM action. I think the signal is on that election year liquidity is beginning in full force - the flood gates are opening. And the dogs are dutifully slobbering.
Well, if you believe the comex inventory figures, the dealers are out of gold based on the last three months of deliveries versus deposits. Silver delivered more in January than in December, usually the best month of the year and the US and Canada are having to import silver to meet coin demand- all with the closing of a mine in Idaho.
Somebody is lying and the comex pants are on fire. Just saying...
"somebody is lying"...
..........................
"Everybody is lying"... I'm just trying to help out.
After MF Global we camels got a peek under the tent... Justice Dept can't porsecute the theives at MF/JPM because the fraud, hyperhypothacation... did I mention fraud?... is too widespread and would require a lot more 'white collar jails' to hold the guilty...
Next will be "Justice Dept decides to cancel prosecutions due to budgetary constraints".
Yes, I don't think having more bankers and brokers in jail than out would send the proper signal to the financial world...........
Couldn't they turn the whole island of Manhattan into a huge white collar prison?
; )
It's already a virtual prison... except for the TBTF that commute to their high dollar gated communities.
How long untill TSA requires 'travel permits' to cross state lines, board a commercial flight, get on a bus or train?
Those in chauffeured vehicles will be waved through the checkpoints.
Gotta love Au!
There are some that claim that Debka is a CIA disinformation site setting the stage for a new world currency and hammer another nail in the USD coffin. About as logical as any other conspiracy theory. What I find interesting is that India has refused to confirm or deny that it will trade gold for oil.
Whatever happened to the 'new plastic currency' that was designed and put into production at mints... only to find that 'it's too complicated to manufacturea and some of the bills contain wrinkles.
If I was sitting on large stacks of 'old' or currently in circulation hundred dollar bills I believe that I would be converting as many as possible to fifty and twenty dollar bills... a real pain in the ass but maybe a good move. Usually the larger bills are called in first.
Not following your convertion reason. Can you elaborate? "Usually larger bills are called in first."
I will not elaborate here... Just think about it... and, think about what happens when a soverign decides to switch from a useless currency to a 'new currency'.
For starters, check out what happened in Weimar Germany.
Think about this... no fiat currency has lasted more than forty years.
Calling a currency and reissuing can be justified by all manner of excuses... Said excuses are stated on MSM by the TBTF... 'the law givers'...
Are you aware that the Fed/Treasury were considering (a couple of years ago) of 'time dated currency'? If not used by expire by date it would be valueless.
There is no end to the tricks and who is to stop them?
You're on fire today Snidley! Did you just make a nice pile?
No, same old pile. I add a little here and there on pullbacks.
The real reason I'm chuck a lucking is that a long time friend, retired fireman, sold a bunch of gold when it pulled back to ~$1530. We were having a conversation in a local watering hole and he said to me "I think gold is going to pull back to around $1,000 or so" and he asked me what I thought. I said "Well, anything is possible when all the markets are soooo manipulated... But, none of the fundamentals of the world financial system have changed for the better and with Iran as a possible target things could go downhill in a hurry for most asset classes... and I am not selling gold but buying on dips."
End of conversation until yesterday... He looked very sheepish and I let him pick a topic... he chose "Pitchers and catchers report to their spring training camps in a few weeks"...
I played along... "Let's get some ticket for a Marlins vs whoever game in Viera"
He did not want to discuss gold. lol
Well, that's what happens when you listen to the MSM puppets or get scared by random trolls on blogs and don't do your own homework. For anyone who has done their own research and has an inkling of macro-economics, the path is obvious.
Hope your friend didn't sell too much, at least he wasn't short, and there is lots of time to get back in.
One particular and rabid silver-hating poster here, who is almost certainly the notoriously and maliciously anti-silver, dishonest Bob Moriarty of 321gold, would definitely be one such troll.
$2000 by March
$2500 by New Year
$5000 by 2014
If Ron Paul becomes president: >$10.000 by 2013
Gold will obtain infinite dollars if anyone other than Ron Paul becomes president. A Dollar will fall it it's basic intrinsic value of 12.44 BTU.
By targeting inflation at 2%, Bernanke has guaranteed---by policy---that holding dollar cash in any instrument out to ten years is a guaranteed losing proposition. Also, Bernanke has now officially imposed a specific 2% tax on wage earners. Of course, this is dependent upon Bernanke actually having the ability to fine tune inflation precisely, which his track record indicates is unlikely.
Unelected Bernanke has taken the choice of saving dollars away from the citizen, and imposed a cost of holding cash. I believe there are people in America's past who would have called this taxation without representation.
In the interest of decency, I will say this is a language few here understand...Sout yeh ma pa bu Bernanke.
What? You never saw that wonderful EU cartoon on how wonderful it was that they were targeting inflation at 2%? That the guaranteed inflation would produce growth in jobs and new investment?
I thought I had been transmorgrified back to the time of the Corn Laws, when we heard the same arguments and how the Bank of England would keep the supply of money equal to the needs of industry. Didn't work, but there were some bankers and merchants that made a little money.
It could have been the time I went back to 1913 and saw the creation of the FED and heard the promises of a "stable" economy without the dramatic boom bust cycle of the gold standard. Funny how the boom busts just got bigger and bigger and the debt became a tsunami sweeping all the wealth of the world into a few pockets.
Well, at least I have an iphone4 and a big screen tv to keep me distracted from that eating thingy..
http://www.ecb.int/ecb/educational/inflationisland/html/index.en.html
A long time ago
In a republic far far away
People were free
and Gold was money.
Well Sheople aren't free any more, but the precious remains the same
/Give us that, Deagol my love
By my view, real interest rates would only be negative is borrowers of money were able to borrow money at lower than the risk free rate at which they can invest it. Currently only BANKS can borrow money for less than their risk free investment rate (which in my view makes the entire system broken... along with the entire borrow short, lend long and mathematic impossibility of being paid back issues, which also make the system broken)
If it is not the case that borrowers in general can borrow for less than the risk free rate of investment then the definition of negative interest rates should be changed to better reflect reality. Currently their are no negative interest rates for non-bank, non-shadow bank, non-insider borrowers?
I know of no one that has a credit line or credit card with a zero percent interest rate.
"If it is not the case that borrowers in general can borrow for less than the risk free rate of investment then the definition of negative interest rates should be changed to better reflect reality. Currently their are no negative interest rates for non-bank, non-shadow bank, non-insider borrowers"
Absolutely.
Just popped through $1725. Wow!
"The Bernanke" is bad for the brain and good for the pocket. Every time he is crazy we do well with our portfolio.
If Bernanke were dragged into a 'special court' for financial crimes, like the court set up for the trials of Nazis accused of war crimes, what would Ben's defense consist of?
Of course, before this could happen, one group of TBTFs would have to target another group of TBTFs.
If the world's financial system were to collapse causing the starvation of hundreds of millions of people, will a court of finiancial crimes be convened?
Normally these issues are settled by military conflicts. Might it not be a step for humanity in the right direction if, instead of another war, the bankerster criminal cartel were put on trial for financial crimes against humanity?
Just asking...
Some loser called Nigam Arora says Ben Bernanke has warned us to sell our gold and silver.
The FuckTard has an article on MarketWatch website,Titled "The Fed on Gold and Silver.
Psst.....
Nigam.....Your a fucking puppet....Get off your knees,Boy.
If Nigam follows Ben's advice he may be living under a bridge soon... or in a FEMA camp.
Off Topic but interesting... coincidentally from RT...
"Pre-emptive embargo: Iran could turn off oil tap to EU"
"Iran may turn the sanctions tables by immediately stopping oil supply to Europe. The move is aimed as a response to the EU slapping an embargo on new oil contracts with Tehran. China has lashed out at the sanctions, calling them “blind pressure”."
"A number of representatives of the Majlis [Iranian parliament – RT] and I are seeking to approve a plan according to which all European countries that made Iran the target of their sanctions will not be able to buy even one drop of oil from Iran, and oil taps will be turned off to them so that they will not play with fire again,” Soudani told the Fars News Agency on Wednesday."
http://rt.com/news/iran-immediate-oil-sanctions-733/
RESERVE RELIC CURRENCY?
India to pay gold for Iran oil, China may followhttp://rt.com/news/iran-india-gold-oil-543/