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Pimco Increases Gold Allocation From 10.5% To 11.5% In Commodity Fund

Tyler Durden's picture




 

Moments ago, the FOMC members formalized their opinion on where inflation is heading: "Most members continued to anticipate that, with longer-term inflation expectations stable and the existing slack in resource utilization being taken up very gradually, inflation would run over the medium term at a rate at or below the Committee’s objective of 2 percent." The only conclusion one can derive from this is that since the perpetually wrong FOMC committee, which has never accurately predicted any one thing in its entire history, sees little to no inflation, inflation is most likely about to soar. A convenient independent confirmation of this assumption comes from none other than bond manager PIMCO which moments ago announce that it was adding to its gold holdings "on inflation concerns...as it bets that global inflation rates will pick up over the next three to five years." Specifically, "The Pimco Commodity Real Return Strategy Fund, which has about $20 billion in assets, has increased its gold holdings to 11.5% of total assets recently, from 10.5% two months ago, and has been adding to the position when gold prices dipped toward $1,500 a troy ounce, says Nic Johnson, the fund's co-portfolio manager." And with global asset managers allocating about 1% of their AUM to the precious metal, should the majority of them copycat PIMCO in this move, then gold would cross the psychological $2,000 barrier in minutes. The irony is that for a bond manager, which Pimco just happens to be the biggest in the world, inflation is your worst friend. So acknowledging its imminent creep, is hardly "talking one's book."

More from Dow Jones:

The money manager predicts global inflation rates will run higher, on average, over the next three to five years than what the world had witnessed over the past 25 years. However, the risk won't arise for another 12 months, during which inflation should be subdued.

 

Pimco has aired its concerns about inflation in the past and moved to avoid longer-dated Treasury bonds in favor of inflation-protected securities. But the move toward gold is recent and reflects an escalation in the fund manager's concern.

 

In the face of such risks, "broadly speaking, we prefer owning real assets as opposed to financial assets," Mr. Johnson told Dow Jones Newswires in a recent interview. Three of Pimco's portfolio managers, including the head of the commodities group Mihir Worah and Mr. Johnson, have been on a 17-city U.S. tour since June to raise awareness among institutional investors and larger financial advisers.

 

Their message: the trifecta of loose monetary policy, persistently high levels of sovereign debt and rising commodity prices will drive inflation higher.

 

Pimco expects currency devaluation to remain a central theme in the market as global liquidity swells thanks to continued easy-money efforts from the world's central banks. Interest rates, meanwhile, will need to stay low as government debt runs at a high proportion to the overall economy.

 

"Gold is the currency without a printing press," Mr. Johnson says.

 

Moreover, investors should purchase gold before inflation rates rise, as "it's the process of going from 2% inflation to 4% inflation that's going to drive gold higher," he says.

 

... 

 

To guard their wealth against the "silent tax," as inflation is often called, Pimco recommends investors stock up on store-of-value commodities like gold and platinum, and hard assets like real-estate investment trusts.

It would appear that with the implied promise from the FOMC that Bernanke will not rest until corn is in the double digits, gold has decided to finally break out above its 200 DMA, and is now headed higher as the coy foreplay of the past 6 months has finally ended.

 

 

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Wed, 08/22/2012 - 14:47 | 2728273 The Wizard of Oz
The Wizard of Oz's picture

GOLD BITCHEZ!!!!

Wed, 08/22/2012 - 14:55 | 2728295 strannick
strannick's picture

Soros, Paulson and now the king of anti-gold universe, Bond Meister Bill moving towards gold and on a FOMC minutes with no QE, gold still goes up. Ergo, Gold Bitchez 2000

Wed, 08/22/2012 - 15:02 | 2728338 macholatte
macholatte's picture

 

 

The Federal Reserve is likely to deliver another round of monetary stimulus "fairly soon" unless the economy improves considerably, minutes from the central bank's August meeting show.

U.S. Fed ready to ease "fairly soon," minutes show

http://in.reuters.com/article/2012/08/22/usa-fed-minutes-idINDEE87L0E920...

Wed, 08/22/2012 - 15:02 | 2728342 Doña K
Doña K's picture

And in what type of gold investment may we ask does the fund employ?

Physical and where is it deposited? ETF's? Futures? Other?

Can we be enlightened?

Wed, 08/22/2012 - 16:24 | 2728601 smiler03
Wed, 08/22/2012 - 16:54 | 2728701 No Euros please...
No Euros please we're British's picture

PIMCO need to take care, there's a lot of gold involved in boating accidents off Newport Beach.

Thu, 08/23/2012 - 01:35 | 2729482 zhandax
zhandax's picture

Don't worry, they just asked for delivery on 300 COMEX contracts.  How many times do you think they will have to sell GLD and buy more futures before they get 3.7 tonnes?  That's either a long wait or a lot of minor boating accidents.

Wed, 08/22/2012 - 15:00 | 2728327 stocktivity
stocktivity's picture

Silver also taking off again this afternoon as of 3pm.

Wed, 08/22/2012 - 15:13 | 2728385 Robot Traders Mom
Robot Traders Mom's picture

I literally just bet my kid $50 the first comment would be "GOLD BITCHEZ!"

 

Thank you, ZH and Wiz

Wed, 08/22/2012 - 16:04 | 2728568 Spigot
Spigot's picture

Happy to help. Its good to have things you can count on in the changing times we live in ...

Wed, 08/22/2012 - 18:18 | 2728862 wesayukcom
wesayukcom's picture

Fly me to the moon ! Here we go.

Listening to capital account the other day it would appear if you are a believer in kondratieff theory we started the winter phase (likley to last 17 odd years) in appx 2000 at the  start of the recent and long gold bull run which will have probably another 5 years to run before major bubble alert.

Summarised
=========

“Kondratieff Winters historically feature high volatility, slow to negative growth, de-levering (by consumers, corporations, and governments,) hoarding of cash by banks, asset deflation, and economic depressions due to bursting of unsustainable credit bubbles.” (~8min) The transition to winter occurred in early 2000. Each Kondratieff cycle lasts between 15 and 17 years. The bottoming out of this winter cycle should occur in 2016 or 2017. Very difficult times are directly ahead of us.

http://rt.com/programs/capital-account/summer-kondratieff-winter-baxter/

Talk of a bubble teritory by MSM is way way too early the chart for both Ag and Au has not even started the parabolic phase which is characteristic of a bubblemania.  We got 5 years to accumulate like the central banks are doing.

Talk of gold as collateral and money by major players is music to our ears.  It's all going according to plan !! keep on averaging up and down monthly and you can't go wrong these next few years i say 3-5 are going to be magical for holders of PMs. Pity the ill informed.

ps a date for your diaries 12 September. It's make or break for Germany and the dilema of whether Germany high Judges agree to the principle of a FED for Europe....

Wed, 08/22/2012 - 14:50 | 2728286 fonzannoon
fonzannoon's picture

1% Increase? Grow a pair PIMCO.

Wed, 08/22/2012 - 16:05 | 2728572 Spigot
Spigot's picture

double UP, step by step

hear the silence = 10.5% and now 11.5% allocation to the shiny yellow dog...arf!

Wed, 08/22/2012 - 14:51 | 2728287 yabyum
yabyum's picture

"talking the book" I've read the book! and it's title is "PM's Bitchez now!"

Wed, 08/22/2012 - 14:51 | 2728289 devo
devo's picture

Gold to the moon.

Wed, 08/22/2012 - 15:05 | 2728359 Big Corked Boots
Big Corked Boots's picture

Paper to the earth.

Wed, 08/22/2012 - 16:00 | 2728548 FranSix
Wed, 08/22/2012 - 14:52 | 2728298 Frank N. Beans
Frank N. Beans's picture

that 'splains why da gold just shot straight up to da sky 

Wed, 08/22/2012 - 14:54 | 2728301 MsCreant
MsCreant's picture

Why the fuck announce this if you are buying? Hmmm????

Wed, 08/22/2012 - 14:56 | 2728311 MsCreant
MsCreant's picture

I have been on this roller coaster before. Pump, then dump. If you want to ride up a bit and sell at the tiny top like these fuckers will do, go ahead.

It will drop below 1600 within a couple weeks, again.

Wed, 08/22/2012 - 15:00 | 2728329 Al Gorerhythm
Al Gorerhythm's picture

A breakout test will be on the cards but my fear is that this may be the endgame for them and I have not had the tools to convince enough people of the peril. Still a kook in the eyes of family, despite years of being "right".

Wed, 08/22/2012 - 15:06 | 2728363 MsCreant
MsCreant's picture

It keeps looking, smelling, tasting, and feeling like an endgame for so long now. It is a Weird Al Gorerhythm, so to speak. ;-(

I had the experience you are talking about just yesterday. My colleague is convinced he has been alive so long now that even if there is a crash, markets always come back and the trick is to stay in and ride it out.

What can you even do with that logic?

Wed, 08/22/2012 - 15:17 | 2728387 Cognitive Dissonance
Cognitive Dissonance's picture

You do nothing other than to wish him/her good luck. Only after the collective memory is washed clean (usually by death or dementia) can a new round of beat down pain be administered.

The last of "The Great Depression" voices are now just whimpers in the wind. Time for "The Greater Depression" to begin.

Wed, 08/22/2012 - 15:53 | 2728522 ZerOhead
ZerOhead's picture

A global "Greater Depression" would be the best of all possible outcomes at this point in time.

If casino/voodoo economic policies are not stopped (no evidence to suggest this yet) then this sucker will likely undergo complete systemic collapse as the financial system inevitably implodes.

Wed, 08/22/2012 - 15:54 | 2728533 Cognitive Dissonance
Cognitive Dissonance's picture

Seems like everything is going to plan bro.

Nice to see your mangy butt around here ZerOhead. :>)

Wed, 08/22/2012 - 16:18 | 2728588 ZerOhead
ZerOhead's picture

Thanks CD... it's nice to be liked by someone or something other than my security detail of deer flies and mosquitoes back at BugHaven who only think of me as a "Meals on Wheels" program...

The swimming, fresh air and excercise has been excellent however :)

Wed, 08/22/2012 - 16:37 | 2728657 Alea Iactaest
Alea Iactaest's picture

I had to log in just to give this comment a greenie. My keyboard is less amused.

Wed, 08/22/2012 - 16:00 | 2728552 MachoMan
MachoMan's picture

Some of us are lucky enough to have access to those voices...  and for some of us, we do not need to repeat mistakes of the past ourselves in order to learn a lesson.  Too bad they could not have been a bit more...  constraining on the baby boomers.

If you're not lucky enough to have those voices close by, then go hit up your local nursing home...  old people love to have something to talk about other than going to the doctor...  it might smell a bit funny, but some laundry and a shower is a small price to pay for first hand accounts...  also helps to see perseverance in the eyes of the orator to get a better sense of what to expect.

Wed, 08/22/2012 - 15:20 | 2728390 Dr. Richard Head
Dr. Richard Head's picture

You cannot do anything.  To try and shake them from their coma is futile.  The only smelling salts that can be applied are jack booted thugs when the collapse makes itself known.  Until then, stack and smile.

I have tried to explain nominal versus real gains to those types and they usually make the face of a dog hearing a dog whistle.

Wed, 08/22/2012 - 15:29 | 2728446 Cognitive Dissonance
Cognitive Dissonance's picture

Personally I prefer the (PM) dinner bell.

Then again I've had Tinnitus for years so what the hell do I know?  :)

http://en.wikipedia.org/wiki/Tinnitus

Wed, 08/22/2012 - 15:33 | 2728452 Al Gorerhythm
Al Gorerhythm's picture

Ms C;

Is there something the matter with us that we are so persistant with our views? I'm like a broken record and have been painted as a evangilist. It's not like I'm trying to talk them into joining Scientology or come walking on coals. "What am I missing from that tool box?" is a question that haunts me.

Wed, 08/22/2012 - 15:49 | 2728499 Cognitive Dissonance
Cognitive Dissonance's picture

It is very lonely outside the herd and we are clearly outliers so we tend to seek personal confirmation of our "right" mindedness in some way, shape or form. To take such a drastically contrary view is extremely risky emotionally and socially. And (potentially) physically as well.

History shows that when a country goes Tyrannical the non conformists are beaten into the ground....often first by their own friends, family and neighbors followed by an early morning visit by the men in black. We are taking great risk by speaking out so we reach out to others for the safety of numbers. We are trying to create our own protective pod by enlisting recruits to our way of thinking.

Plus.....there is a deep seated hope that if we could just wake some people up all the coming pain might be reduced..........or maybe even avoided.

Wed, 08/22/2012 - 15:51 | 2728521 Dagny Taggart
Dagny Taggart's picture

We are trying to create our own protective pod by enlisting recruits to our way of thinking.

I KNEW you were up to something! LOL

Wed, 08/22/2012 - 16:40 | 2728666 Alea Iactaest
Alea Iactaest's picture

CD -- sounds comforting but futile. I can hear myself crying out (and butchering old Bill), "Alas poor CD, I hardly knew him."

Wed, 08/22/2012 - 16:00 | 2728549 Al Gorerhythm
Al Gorerhythm's picture

Is there a collective "Panic Room" then?

Wed, 08/22/2012 - 15:41 | 2728461 ZerOhead
ZerOhead's picture

It keeps looking, smelling, tasting, and feeling like an endgame for so long now.

If it looks like a duck, walks like a duck, floats like a duck, quacks like a duck, and smells and tastes like a duck then it is extremely unlikely that it is not a duck.

It would only be wise to prepare accordingly.

Wed, 08/22/2012 - 16:29 | 2728625 Miss Expectations
Miss Expectations's picture

MsCreant,

Your colleague reminds me of a friend of mine.  I live in a hurricane prone area and last year I mentioned that it might be a good idea to start their generator to make sure it's working.  (Ethanol is hell on small engines.)  She said that they don't have a generator.  What?  What about all the food in the fridge and freezer that would go bad?  She said that during hurricane season she keeps next to nothing in the fridge and freezer so there won't be a big loss. 

Really, what can you do?

Wed, 08/22/2012 - 15:50 | 2728518 Hype Alert
Hype Alert's picture

If the Fed doesn't deliver at Jackson Hole, there may be a rude awakening.  With QE3 priced in a time or two already, there might be a slight pullback.

Wed, 08/22/2012 - 16:02 | 2728562 viahj
viahj's picture

ahh, but it's only after a significant pullback, will the printers be turned on.  you can't front run QE by buying.  short the muthafecker then plunge back in once Ben gives the nod as was the case when Obama told the nation that it's a good time to buy stocks prior to one of the instances of QE.

Wed, 08/22/2012 - 16:53 | 2728699 Alea Iactaest
Alea Iactaest's picture

All of this looks orchestrated to get some money off the sidelines prior to Jackson Hole.

* PMs rallying. Check.

* Treasury yields down. Check.

* Weaker USD. Check.

* Fed comments that inflation is in check. Check.

* Washington ignoring housekeeping issues like the debt ceiling and coming tax increases. Check.

* Shorts in place after endless summer melt-up crushes most retail shorts. Check.

* Volatility still at multi-year lows. Check.

* Greek debt deadline (8/20) in rear view mirror. Check.

Like lambs to slaughter...

Wed, 08/22/2012 - 14:56 | 2728302 Al Gorerhythm
Al Gorerhythm's picture

Someone is asleep at the wheel. It looks as if Bill Murphy's call of deep-pocket buyers are in da room and are playing by the cartel's game book and are running the guns after hours, just like they did. 

Fuck you in hell, Jamie Dimon and all whom you represent.

Wed, 08/22/2012 - 14:57 | 2728312 ParkAveFlasher
ParkAveFlasher's picture

Pimco's got some deep pockets.  Crater Lake-deep

Wed, 08/22/2012 - 14:54 | 2728305 SourNStout
SourNStout's picture

Gold Spike Coming!

 

Wed, 08/22/2012 - 14:54 | 2728307 madcows
madcows's picture

In order to up the gold percentage, they must have lowered some other commodity's percentage.  i'd like to know which one.  Gold is a hedge against inflation and deflation.  But, it can also be influenced by the economy.  Values go up with a strong economy due to industrial demand.

The decreased commodity holding would give an indication of whether they were increasing gold as a hedge against monetary pressures or as an investment in a strengthening economy.

Wed, 08/22/2012 - 14:57 | 2728314 Cognitive Dissonance
Cognitive Dissonance's picture

".......gold has decided to finally break out above its 200 DMA, and is now headed higher as the coy foreplay of the past 6 months has finally ended."

That was not coy foreplay Tyler, but rather some brutal S&M.

<thank God I didn't say the "safe" word and get out>

Wed, 08/22/2012 - 15:15 | 2728396 Dr. Richard Head
Dr. Richard Head's picture

Is that the book all the ladies are reading out there?  50 Shades of Gold?

Wed, 08/22/2012 - 17:25 | 2728766 Temporalist
Temporalist's picture

Better than "Quadrillion Shades of Fiat"

Wed, 08/22/2012 - 14:58 | 2728317 youngman
youngman's picture

Well with Junkers comments today...I almost sold all my gold....but then I came to my senses...I will wait for Merkle to speak...or maybe Draghi...to tell me everthing is AOK in the EURO zone......lol....

I am buying as fast as I can.....this crap gets deeper every day......I do think I will die of paper cuts though...when you are wheelbarrowing around 10 trillion and a wind comes up.....well its a bad way to die

Wed, 08/22/2012 - 15:00 | 2728330 Cranios
Cranios's picture

http://youtu.be/bBgQIy3clBg

You didn't build that mutual fund!

Wed, 08/22/2012 - 15:01 | 2728331 _ConanTheLibert...
_ConanTheLibertarian_'s picture

When they increase it to 50% (first thing I did) then I'm impressed but not now...

Wed, 08/22/2012 - 15:01 | 2728335 youngman
youngman's picture

Gross just tweeted and 80% chance of QE III

Wed, 08/22/2012 - 15:24 | 2728427 FRBNYrCROOKS
FRBNYrCROOKS's picture

QEinfinity

Wed, 08/22/2012 - 21:04 | 2729147 ClassicCommodity
ClassicCommodity's picture

and beyond!

Wed, 08/22/2012 - 15:02 | 2728336 PiratePawpaw
PiratePawpaw's picture

Silver up 2%

SiLvEr BiTcHeZ!

Wed, 08/22/2012 - 15:02 | 2728340 scatterbrains
scatterbrains's picture

I'm betting this marks the top in gold (for now) and just as technically dollar and bond market sell signals are waning.  This is a very interesting moment no doubt but I suspect we're going lower.

http://fiatflaws.blogspot.com/

 

Wed, 08/22/2012 - 15:17 | 2728398 ParkAveFlasher
ParkAveFlasher's picture

But I suspect we're gonna need a bigger chart.

Wed, 08/22/2012 - 15:24 | 2728425 scatterbrains
scatterbrains's picture

VIXY not really playing nice with all this risk on euphoria.. let's see... where close for shit shir

Wed, 08/22/2012 - 15:03 | 2728345 apberusdisvet
apberusdisvet's picture

Sept 12 is still the key date.  Could be the "day the Euro died".  Either way, gold goes vertical, as does silver.  There is still a two week window for a JPM/FED controlled smashdown, so be careful.

Wed, 08/22/2012 - 15:07 | 2728365 surf0766
surf0766's picture

What is up with the 12th?

Wed, 08/22/2012 - 15:04 | 2728354 madcuban
madcuban's picture

I can hear it now.  When Obama outlaws gold ownership, "you didn't buy that gold.  we did."

Wed, 08/22/2012 - 15:10 | 2728375 john39
john39's picture

you may have bought that gold... but the fascists certainly will try to steal it, one way or another.

Wed, 08/22/2012 - 15:18 | 2728404 Dr. Richard Head
Dr. Richard Head's picture

Well, that would only affect "crazy, lonely, rich, white men", so no cause for concern. 

http://maxkeiser.com/2012/08/20/nancy-grace-says-silver-owners-crazy-lonely-rich-white-guys/

Wed, 08/22/2012 - 15:19 | 2728406 Dr. Gonzo
Dr. Gonzo's picture

It's kind of true. They made it tempting enough for me by their blatent manipulation. I owe a lot of my more recent gold/silver/platinum purchases to the PPT. Thanks guys! Stacking all I could on the cheap because I knew you were giving it to me as a gift.

Wed, 08/22/2012 - 15:05 | 2728357 khakuda
khakuda's picture

What the Central planners deserve is for oil and interest rates to skyrocket once the markets realize cash is becoming worthless.

Wed, 08/22/2012 - 15:07 | 2728364 toothpicker
toothpicker's picture

Let's get physical physical

Wed, 08/22/2012 - 15:09 | 2728372 Essential Nexus
Essential Nexus's picture

Gold over 1650.  Time for the big guys to tape the sell button down...

Wed, 08/22/2012 - 15:14 | 2728389 kito
kito's picture

let it pump to about 1720 and then BAM........the dump buttons kick on................

Wed, 08/22/2012 - 15:23 | 2728421 stocktivity
stocktivity's picture

Maybe...maybe not....China and Russia are both buying also.

Wed, 08/22/2012 - 15:43 | 2728496 kito
kito's picture

buying what?..... GLD?...gold futures?......................

Wed, 08/22/2012 - 15:11 | 2728373 youngman
youngman's picture

"once the markets realize cash is becoming worthless."....not the markets...but the countries..companies..and the people...... realize cash is becoming worthless...PIMCO can change their name...they don´t need the word BOND in it

Wed, 08/22/2012 - 15:12 | 2728383 kito
kito's picture

if i were to buy gold:

a) i sure wouldnt be buying because pimpco is................

b) i sure wouldnt be buying a commodity fund to get gold exposure........

Wed, 08/22/2012 - 15:22 | 2728414 divedivedive
divedivedive's picture

For the last year and a half I'd be pretty disappointed if I had invested in PCRDX.

 

 

Wed, 08/22/2012 - 15:17 | 2728384 Dagny Taggart
Dagny Taggart's picture

Thank goodness for moments alone when no one sees me up on my desk doing the Sprott silver victory dance. lol

Wed, 08/22/2012 - 15:32 | 2728457 Cognitive Dissonance
Cognitive Dissonance's picture

Victory Dance

Wed, 08/22/2012 - 17:42 | 2728804 MsCreant
MsCreant's picture

Silver Belle.

Wed, 08/22/2012 - 15:16 | 2728397 reader2010
reader2010's picture

Smart guys acccumulated between 1999 and 2003.

Wed, 08/22/2012 - 15:21 | 2728410 kito
kito's picture

ammo? canned food? arable acreage? accumulate what?............... ;)

Wed, 08/22/2012 - 15:24 | 2728424 ParkAveFlasher
ParkAveFlasher's picture

The smarter guys are still accumulating.

Wed, 08/22/2012 - 15:35 | 2728464 reader2010
reader2010's picture

yes, war stocks.

Wed, 08/22/2012 - 15:56 | 2728540 ParkAveFlasher
ParkAveFlasher's picture

You reach a point where every exogenous factor serves to pull gold higher, including all manipulative attempts to cram it down lower. 

Wed, 08/22/2012 - 15:40 | 2728484 Al Gorerhythm
Al Gorerhythm's picture

Smart guys buy ALL the time. When the forwards contracts are paid for at par for cash, then you rethink, or if you are smart, pre-plan now on how to invest the gains without losing grip on your capital when the time is ripe. That's the gold game.

Wed, 08/22/2012 - 15:18 | 2728403 Whiner
Whiner's picture

When the fiat is seen to have no clothes, we better be clothed in AU. Where else to hide? Ures? MegaCaps? Oil?

Wed, 08/22/2012 - 15:22 | 2728413 Abiotic Oil
Abiotic Oil's picture

OT but you can't make this shit up.

http://www.washingtonpost.com/world/national-security/atf-official-also-...

 

In an unusual arrangement, a senior official of the Bureau of Alcohol, Tobacco, Firearms and Explosives involved in the controversial gun operation Fast and Furious is receiving his government salary while working full time for the investment bank J.P. Morgan, according to two Republican lawmakers.

In a letter Tuesday to B. Todd Jones, the acting ATF director, Rep. Darrell Issa (R-Calif.) and Sen. Charles E. Grassley (R-Iowa) said that Deputy Assistant ATF Director William McMahon, who oversaw the agency’s Western region during the Fast and Furious operation, has been receiving two salaries simultaneously.

 

Wed, 08/22/2012 - 17:45 | 2728810 MsCreant
MsCreant's picture

They don't even worry about us knowing.

Impunity Bitchez!

Wed, 08/22/2012 - 15:24 | 2728419 Lore
Lore's picture

 

 

"the risk won't arise for another 12 months, during which inflation should be subdued."

Strip out the institution-speak:  they mention this NOW because they see the problem NOW

As a wise person once said, "GOLD Bitchez!" 

Wed, 08/22/2012 - 15:23 | 2728422 ParkAveFlasher
ParkAveFlasher's picture

I'm not a site pumper but Jesse's Cafe Americain called it yesterday, and that guy is no permabull:

http://jessescrossroadscafe.blogspot.com/2012/08/net-asset-value-premium...

 

Wed, 08/22/2012 - 15:27 | 2728435 q99x2
q99x2's picture

Paper market is rehypothecated fraud. Keiser says the disconnect between paper and physical is indicating problems in the near term. Silver up over 1% again today.

Wed, 08/22/2012 - 15:29 | 2728444 Jim B
Jim B's picture

Bought some more yesterday.....

 

Having too much fiat paper makes me nervous! 

Wed, 08/22/2012 - 15:37 | 2728471 devo
devo's picture

Bought a good chunk of silver on Friday right before the runup...

Seems to me the past year was just gold and silver getting ahead of itself and consolidating. With the wedding season coming up and now the FED, consolidation is over.

Wed, 08/22/2012 - 16:36 | 2728655 Jim B
Jim B's picture

I wish I had bought in the $25-26 area, but better late.....

Wed, 08/22/2012 - 15:46 | 2728506 yogibear
yogibear's picture

With the Bernanke and the Fed on a printing tear it should catapult all commodities. Dump the dollar time again. Bernanke, Dudley and Yellen will be amused when the dollar re-test the lows.

This time when the Euro dumps don't go into the dollar. From the fire into the frying pan.  Loss of confidence in the US dollar should result at some point.

 

Wed, 08/22/2012 - 16:06 | 2728575 youngman
youngman's picture

"With the Bernanke and the Fed on a printing tear "......don´t forget the ECB and Japan...they will both be running the race too.....and it is a race now.....who can devalue the currency the fastest....and China will be buying crap all over the world....and little Central Bankers in the smaller countries will be buying PM´s as fast as they can...people can see the wall now...can smell the carnage coming up...and are turning to the survival mode....its not in treasuries....its not in other people currencies.....its only in Gold and Silver now....PM´s...

Wed, 08/22/2012 - 16:02 | 2728564 FranSix
FranSix's picture

The monthly log scale chart is on the point of a breakout, requires $1660/oz. U.S. on the monthly close:

 

http://scharts.co/RDCrMb

 

Wed, 08/22/2012 - 16:34 | 2728641 Dr. Gonzo
Dr. Gonzo's picture

I just front ran PIMCO! Bought a 1/10 oz gold panda yesterday! You know if everyone in the world that had $180 disposible income in their pocket bought a 1/0 oz of gold just for kicks it would turn the bankers world upside down.

Wed, 08/22/2012 - 17:08 | 2728703 devo
devo's picture

ZH, how about some articles about ending capital gain taxes on PHYSICAL gold? It's fine if they want to tax the paper traders, but come on...physical buyers are not purchasing bullion as a collectible. Need more pressure and outroar over that tax.

Wed, 08/22/2012 - 17:43 | 2728803 Temporalist
Temporalist's picture

Don't you understand - the gooberment luvs u!  They want you to be healthy with their "free" health care (as long as you pay for it or you'll be fined and as long as you aren't too old and poor) and they want you to retire (on their social security that you helped fund every day you worked and you'll be getting less than necessary when your time comes) as well as save your money (even though Fed policies prevent savings from accruing any significant interest) but the one thing you must NOT do is use their currency to "speculate" on evil gold and silver that will obviously ruin you and your hard earned money so they must tax you to prevent you from harming yourself.

 

It is all for your own benefit really and if you can't see that your dosage of Choom-Aid needs to be upped.

 

*edit - I forgot that your Choom-Aid must also not have sugar or corn syrup in it or you'll be forced to vomit it all back up so that it can be subsidized into ethanol.

Wed, 08/22/2012 - 18:39 | 2728923 New_Meat
New_Meat's picture

devo:

"... how about some articles about ending capital gain taxes on PHYSICAL gold?"

duuuuuude, get with the times and the program.  obamacare has this all figgered out--it is just like any other "investment"--$in-$out.

Need more pressure?  u b late to the party, --> u b fucked.

- Ned

Wed, 08/22/2012 - 18:35 | 2728914 New_Meat
New_Meat's picture

one wonders whether billie and mohammed and gang have their "gold" under their (positive) physical control.

- Ned

Wed, 08/22/2012 - 18:43 | 2728926 Stanley Lord
Stanley Lord's picture

Gross likes gold?

Soooooooooooolllllllllllllllldddddd!!!!!!!

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