Gold Safe Haven in November, Rises 1.8% As Central Banks Further Debase Currencies

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Thu, 12/01/2011 - 08:48 | 1934445 Overflow-admin
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First! Gold, Bitchez!

Thu, 12/01/2011 - 08:51 | 1934447 Overflow-admin
Overflow-admin's picture

OK, let's say something useful: here's the Kitco Gold Index (gold against standard basket of currencies)


Today gold has +0.28% due to weakening of USD.

Thu, 12/01/2011 - 08:59 | 1934461 bernorange
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The amazing thing has been the rise in gold price as traders abandon the COMEX (see COT reports).  Scared off by MF Global?  Choosing physical gold instead of paper gold?  I don't know, but I do find it interesting.

Thu, 12/01/2011 - 09:12 | 1934468 TruthInSunshine
TruthInSunshine's picture

Surprise, bitchez!


China is going to be the Black Swan that will prompt pundits to ask "who could have seen it coming?"

I'm not speaking about a slowdown, or even a long, contractionary period in China. I'm speaking of a total meltdown.

Yes, that China which put the 'C' in 'BRIC,' and that gave cnBSc morning wood when they were able to sell Sino[insertwhateverendinghere] as the investment theme of the day/month/year.

And the kicker will be that Chinese Pneumonia takes down Japan next, in the cascading series of falling dominos, when here we are today, with everyone and their mother stating that the EU DebtApocalypse is going to do the global economy in.

China. Black Swan. Peking Duck. Total meltdown. No one could see it coming.

Multinational corporate profit models destroyed, bitchez.

It's already here, bitchez. PBOC just hurriedly eased in a desperate attempt to stop what is now their massive property bubble from collapsing (too late, so sorry).

Official time of Chinese Economy Capsizing:  Just to have a reference point, let's call it December 1, 2011 (though it was likely a year or so prior).

Thu, 12/01/2011 - 08:50 | 1934450 LookingWithAmazement
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Only 1.8 and now again down. After a tsunami of dollars. #GoldCrisis.

Thu, 12/01/2011 - 08:55 | 1934454 Overflow-admin
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(compared to previous close)
Gold price Change due to Weakening of USD +4.40
Gold price Change due to Predominant Sellers -5.40
Gold Price: Total Change -1.00
Thu, 12/01/2011 - 09:27 | 1934466 Youri Carma
Thu, 12/01/2011 - 09:13 | 1934489 Hmm...
Hmm...'s picture

Gold Rises 1.8% As Central Banks Further Debase Currencies – Gold Safe Haven in November

I just want to make sure I understand this. 

Gold going up 1.8% vs the dollar (much of that rise coming yesterday, no?) makes gold a safe haven.

Does this mean that Stocks, too, are  a safe haven since SP500 rocketed up yesterday and is positive compared to early October?

As always, I'll be junked to hell for my comment, but we really have to be careful assigning "safe haven" status to gold based on November alone... especially when Gold is DOWN 10% from just a few months ago.

Gold will be a safe haven.  But for now despite what people want to think the US Dollar (in the form of UST) is the Safe Haven.  All you have to do is look at what happens to Treasury yields every time a crisis manifests itself.

This will change.  Soon most people will not run to UST, they will run to Gold.  But for now it is a minority of people (including me) who are buying Gold as safe haven status.

Thu, 12/01/2011 - 09:42 | 1934554 79
79's picture

sure, stocks and gold will both do well if the dollar gets pummelled, What you're omitting (don't worry, assume it's on purpose) is that unlike gold, when you're buying a stock you're buying liabilities too, not just assets.  It's those liabilities that are scaring the cr@p out of people, hence why the S&P isn't a safe haven.

Agree about the treasuries part though - I still only know a handful of people that have even considered buying the shiny stuff, and of those, most think it's now overbrought.

Thu, 12/01/2011 - 10:49 | 1934775 Deo vindice
Deo vindice's picture

I'll be junked...


I didn't junk you.

Thu, 12/01/2011 - 11:19 | 1934879 Snidley Whipsnae
Snidley Whipsnae's picture

I suppose this article is slanted toward the short term move up in gold because of the comments about gold ETFs and how much gold they have 'bought' or 'hold' or 'have a claim on'.

The article says that world ETFs have as much gold ~ as France. Do they really? Or, do the ETFs have a bunch of paper claims on gold? Some ETFs actually hold gold, some hold paper claims on gold. Not the same thing.

Besides, why not look at what the asset (gold) has done over a long time span, since most holding physical gold are not interested in trading it for fiat, or other paper assets?

BTW, how is Celente making out with his MF Global paper assets?


Thu, 12/01/2011 - 10:00 | 1934605 youngman
youngman's picture

What word are we drinking to today?????

Gold has been very quiet I think for all the turmoil going on.....I would have thought it would have gone a lot higher

Thu, 12/01/2011 - 10:34 | 1934610 cranky-old-geezer
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Gold Safe Haven in November, Rises 1.8% As Central Banks Further Debase Currencies

This is the overall story of the world financial system for the forseeable future.  Out of control government spending requiring more sovereign debt requiring more currency printing gradually debasing currencies down to toilet paper.

Pure Econ 101 textbook inflation as far as the eye can see.

Falling value of every fiat currency and every asset denominated in a fiat currency is a natural result of this chronic ongoing inflation.

Rising prices on every in-demand commodity, product, and service under the sun is a natural result of this chronic ongoing inflation.

In layman's terms, the dollars in your paycheck are gradually losing puchasing power while prices on everything you need are rising, gradually pushing you closer to poverty, all because your government won't control their god damn spending.

Bottom line, your government is stealing your wealth and spending it themselves.

THAT'S why governments love non-redeemable fiat currencies. They can loot their citizens into poverty.

Thu, 12/01/2011 - 10:33 | 1934720 shokdee
shokdee's picture

Meanwhile in Thailand ...

Thailand seems to have taken advantage of the recent correction and consolidation in the gold price to continue its long-term gold buying programme. Having already made three significant purchases in the last year, the Thai government added another 500,000 ounces of gold to its reserves in September, raising its total gold reserves to 4.9 million ounces.

Gold is deeply grounded in Thai culture, commonly given as high-value gifts to friends and family, and many Thais, regardless of income level, routinely allocate a large portion of their savings into gold jewelry, coins, and bars. Thailand’s former name, Siam, even means “gold” in Sanskrit. Old traditions die hard, and despite recent price volatility, the trade is flourishing.

“But almost all of our customers, poor and rich, understand that gold has value that no one else can take from you. This is common sense.”

Thu, 12/01/2011 - 10:40 | 1934751 Bansters-in-my-...
Bansters-in-my- feces's picture

Gold is more "managed" than Steven Harpers hair.

Thu, 12/01/2011 - 10:55 | 1934767 Deo vindice
Deo vindice's picture

Until 'de base' of 'de currency' is Gold, it will continue to be debased.

Thu, 12/01/2011 - 11:31 | 1934918 Ratscam
Ratscam's picture

interesting that no report ever mentions the gold of the Vatican, since they have robbed, stolen and have been donated gold for centuries.
They must be at least the second largest gold holder in the world.

Wed, 12/14/2011 - 07:08 | 1977917 onebir
onebir's picture

Perhaps it's time for gold loses 5% in first two weeks of December for no apparent reason, leading people to wonder if safe haven and gold should be used in same sentence?

(Disclosure - still nervously long gold, mainly because everything else is so scary)

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