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As Retail Sells, Central Banks Wave Gold In With Both Hands
As recent entrants in the gold market watched paralyzed in fear as gold tumbled by over $100 on the last FOMC day, on the idiotic notion that Ben Bernanke will no longer ease (oh we will, only after Iran is glassified, and not before Obama is confident he has the election down pat), resulting in pervasive sell stop orders getting hit, others were buying. Which others? The same ones whose only response to a downtick in the market is to proceed with more CTRL+P: the central banks. FT reports that the recent drop in gold has triggered large purchases of bullion by central banks in recent weeks. "The buying activity highlights the trend among central banks in emerging economies to buy gold, even as some western investors are losing patience with the metal. Gold prices have dropped 13.8 per cent from a nominal record high of $1,920 a troy ounce reached in September, and on Friday were trading at $1,655.60." Well, as we said a few days ago, "In conclusion we wish to say - thank you Chairman for the firesale in physical precious metals. We, and certainly China, thank you from the bottom of our hearts." Once again, we were more or less correct. And since past is prologue, we now expect any day to see a headline from the PBOC informing the world that the bank has quietly added a few hundred tons of the yellow metal since the last such public announcement in 2009: a catalyst which will quickly send it over recent record highs.
More on what was perfectly obvious to most except the propaganda pushers:
The Bank for International Settlements, which acts on behalf of central banks, has been buying significant quantities of gold on the international market amid falling prices, traders said.
According to several estimates, the BIS bought 4-6 tonnes of gold, worth roughly $250m-$300m at current prices, in the over-the-counter physical market last week, with purchases particularly strong at the end of the week. The total purchases over the past three or four weeks were likely to be as much as double that, the traders added.
In a note to clients this week, Credit Suisse referred to “aggressive central bank buying seen last Friday”.
Of course, central banks are well aware what they are doing. In fact, they have been buying up gold pretty much non-stop in the past few years.
As a group, they made their largest purchases of gold in more than four decades last year, led by emerging economies such as Mexico, Russia and South Korea intent on diversifying their dollar-heavy foreign exchange reserves. The World Gold Council has also pointed to the possibility of significant unreported purchases by China at the end of last year.
At the same time, European central banks have all but halted a run of large sales.
“Central banks have definitely been looking at gold as an asset class much more closely ever since European central banks stopped selling,” a senior gold banker said. “There has been a huge interest."
While some countries, such as Russia, China or the Philippines, have traditionally accumulated gold produced by their domestic mining industry, others use the BIS as an agent to carry out purchases and sales on their behalf, preserving anonymity.
The central bank buying comes as gold prices have slid in the past three weeks as strong economic data from the US has lowered investors’ expectations of quantitative easing by the Federal Reserve and made other investments, such as equities, appear more attractive.
The irony is that as has been pointed out repeatedly, gold will ultimately do well both in extreme deflation and inflation cases. And anyone who believes the Fed has the situation balanced properly, even as the global liquidity providing machine swings to ever greater exponential extremes, well, they likely also believed Bernanke when he told Maria Bartiromo that a home price decline is a "pretty unlikely possibility... we have never had a decline of house prices on a nationwide basis." And if it wasn't for Bernanke's endless bailouts, they would all be broke now.
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I'll bet those [ price lines] are paying off Bill.
The price of gold seems to double every four years.
Thinking a few don't see bullion as a "trade" or "play". When and if (and who knows one way or another) we arrive in the Mad Max World - all this shit we take for graniteiwill be words in stories our children. Like Dorthy's recollection Emerald City. We have to manage and plan. We have to compose our future. The TV faces are puppets - they control nothing except dime store perceptions fed to drunks pissing their pants in the valley of the bling. A Path of least pain outcomes is what be needed. Personal familial and communal. In the foggy Mad Max World of Tomorrow Land, the precious will have a lot of demand - road kill or fresh meat stuff. may be It might be a more liquid bartering token than we can imagine.
Might it be more precise to say the purchasing power of de USD halves every four years. One can rehypothocate a promise to pay till hell freezes over or I quit trying to figure out whe do the ugly better, Monica or de Hilary (when she was a more "tender" and less seasoned chicken like the Blowinski when this blew up and got blown all out of proportion.)
The value of gold stays same - only the counterfeit print changed. It's not like a consumable - granmas earrings most likely have a taste if King Tutts lost golden GI Anubis smelted in `em.
Don't know were to muster these values up.
If we had a reliable M2 and a a reliable weight of the gold owned by the commons, and then kludged together something akin to an M2 and gold inventory print for 2011, it would probably scare the shit out of us.
Thank god for agencies and GI Regulators, without the "forgiveness" clauses DoJ signs off on with his petty fines no guilt assigned lw suit settlements half the tornies in the hood would be living in the Hampton and a lot of us would be rich. De Blankenfein Monster would have burned in a castle, along with the world's longest living vampire ever, Dr Acula the Alan "Ur-Exuberant-Slut-Mudder-Should-Have-Made-the-John-Wear-a-Rubber, and his coffin bearer, Benny "De Dickless Porn Industry's Favorite Bag Boy" Berskanki (don't want the embezzler and chief sampling de product - they'd be all hooded an painted with nassity shit and garnished with electrodes attached to their double secrets just like dat movie on CNN - "Abu Gharib".
Martha Stewart gets 2ed tier info and closes a 34K Stock position - and she go to prison. Greenberg pleads insanity, but with an explanation assuring his extortion victims and to his stable of whores behind them CSPAN mics on da fake congressional inquiry TV Set, dat he be innocent of any ugly bumping, or extortion, or lying on dem fixed income prospectuses, or lying bout promises made but never paid, or lying to rating agencies, and being anything more than a casually bystander when the FED, the NYC FED and de top tiered "Golden Toilet Poopy Girlie Guys", aka, da primary dealers, crunched out a plan for dat 7 Trillion heist claiming with drooly tears dat de whole thing be an act of da god, and he didn't sell no "Act of God" CDS. God was mad cause USA waited too long to start the cleansing of all things Islam American and Prices by ADDING "it weren't no fraud, it was a focking tsunami of biblical proportions - jus like when de red sea closed on the White Gypts chasing de White Tablet Guy after he got to the other side".
7 Trillion Fraud Extortion Genocide rip-off fuking PONZI - no jail time - and only a 25 Bil fine - shit - AND they may or may not pay it with fiats dey stole from us.
Glad you made to the other side Greenie Boy - the ghosts of those your false sense of worth drowned gonna haunt you hot and heavy. Check you six, always, Greenie Boy, use the extra time to find a good hidey hole - you be needy needing real soon. De only ting Greenie has that resembles an excuse would be if he said, "I lost my survival skills in a cocaine overdose while snorting a two gram rail off the PVC tits of one Blankenfein's used blow up dolls".
No justice there be no f*cking hope to mend what's left, if anything, of our dream tuned banana republic racket. Our fault - we allowed - how to move beyond - how to move beyond - no justice and we may as well burn the whore houses down and start afresh cause everything got to be cleaned - cleaned real good - 5 Thousand against 300 Million - it be a quick clean easy - they be jacking off too much if they think a TV pose gonna frighten de mob. DC - Wall Street World - WE DON'T FEAR BOX CUTTERS - Xe beefcakes with big guns - and youze whores - all you look like food - and you can take dat to da bank while someones grandkid pissses on your headstone.
If de Kosher Nostra don't figure up a transition (dat mean real change - perceived pain) - we be doing for dem (dat be da perceived change change attempting the impossible, fending off de real pain) - tick tick tick - da clock be running out for da child genocide pimps and the made for TV diebold political whore crowd.
You need to post much, much more!
A self sustaining racket based on perceptions of value and the fiction printed in da balance sheet. Dis shit not happen if chartered bidnesses finances be da P/L?
Think about the "balance sheet" What it mean - dere a big number witd de total Gross Production of gad zillion real and notional dollars rolled through the books since the charter be issued. Who care - day can't buy shit from me with a piece of de paper that show dey say be da total historical gross production rollup - dat ain't not real value - it be a sock stuffed under the zipper and dat all it be.
Intangible Asset - WTF - like it be thunkup after eating sour pork at a steers' convention pig bris. Hard to pretend - even dey don't know - dey only know what dey membered from de text book at a business school. Ask "Why was the balance sheet invented?" Dey say "Because", followed by verbatim recitation of the third sentence in paragraph 5 of Mikel Milten's best seller "How to impress and pick up girls that do it with balance sheet jargon" (buy two now and get the second free - just pay the 2000$ shipping and handling). THere be a story here - if you be reverse engineering fixed income prospectuses when you be riding da BART to and fro office to nest - you too can afford a hair piece that (almost) never looked like it be a hair piece.
It all about de perceptions fellas. De balance sheet be de baddess ass perception machine ever, it even beat that last great perception machine - divinity. Divinity fall from the Sky Mall Manager's ass when he shit and then it flow through da bannker Gankster - then to to de butt boys on his bag man's drop list. De money be created to represent the value of de common's harvest. De banker and de CSPAN queen dey don't produce value - fallow field fellows - under this - write it sdown - the stakeholders - dat be you me we - we produce stuff - we don't consume - we just exchange what we produce for sumpin else. None of us be de consumer dat darnd HD quadrillion pixel thin high contrast hypno tube flat screen radiation aways be trying to burn our membrane with. THE COMMON ARE THE PRODUCES - EVERY BODY ELSE - GOVERNMENT _ DE DEBT MANUFACTURING INDUSTRY - THE REHYPOTHOCATING TRIPLE SIDE WAYS DELTA NEUTRAL CDS PLAY OF DE DAY CHAPS - DEY DA CONSUMER - and dey all stepping mighty close o de line sorting da predator or comons and prey (dat be the debt undustry and all suckling at he used up teats. AGAIN : DEY ARE THE CONSUMERS YOUR WE US THECOMMONS ARE THE PRODUCERS - WRITE IT F*CKING - it be important.
Of de people by de people for de people - dose words ain't words to be believed in - they ain't a perception - dey be real - and lots o dem blood clot believers and perceivers died screaming for the mercy of de gates to hell cause de dyslexia of avarice denied dem a proper understanding of dose words words and denied dem of a basic sense of survival. Deny dose words youand it usually get to hurting real bad - really really bad.. Dey be words to live by or words to kill by or words to die by - the 1% have crossed de Rubicon. There is a way to manage this civilly through existing law that could limit the justice (peceived pain) required da commons begin da work of restoring our republic. Hickory Dickory Dock - it gonna strike soon and when it do bit will hurt baby. Firs you CSPAN bit players need to accept da contract ain't goona be renewed no ,ore. No more credit at the K-Street Kiddie Store. Dem daze are bye bye.
It be over. Take your wacks and do your or blod clot bleed hanging from tree for a painfully long time - dat when de blood be to clotted to pump - DO IT NEED TO BE SPELLED OUT FOR YA.
Time be your nemesis. Theta's affect on da commons humanity is risk as well. We will have immediate restoration of de "rule of law", you know - dat be da employment contract those employed by the commons, swore under oath, to abide by - just a few simple f*cking rules and a bunch of gnad wads saying shit be too complicate on national security or da photos in da bag mand dossier is da reason dere pimps on da street can steal Trillions and get punished with writ of no fault violations - and den pass what dey lost on to de commons books. A settlement mounting to nuthin more than a hand slap fine.
Dat be da one thing de regulators and da glitter queen chillen slobbering K-Street Johnnys dat give voice to tty pixel neon echoes on de tele-ponzi-pump-pomp-n-circumstance-mind-circumcision machine on da CSPAN TV: Dey pretend empty justice to deny the commons a standing on da matter. It all be in da phony plaintiff settlement agreement DoJ writes up. What is the DoJ like? You know in them farm animal breeding clinics dere be a ram dere be a sheep - and dere be a guy who jack up de ram and den when when de wood form da guy jacking de ram's dick gently guide da ram's dick in da sheep's fish oil scent orchid pollenation crucible. Da guy wit de Ram dick in his hand - dat guy - well he be the political wing of de DoJ, or de political big wigs at any of the agencies de commons be funding. Dey help de crooks stick dere dicks up our asses - dey look like dey was born - genetically engineered - qisat hazzarat - dey be designed to tug man meat.
Crack whore be lot cheaper but he-she may not know the legal word stuff - or - as the commons should expect from a crew of guys paid to jack up another guy's dick and then guide the dick gently into someone else's ass hole - dat dey "lifted" a brief drafted by an attorney who studied or written by their executive secretary,
Some day dey in future when dey be chopping rock or pressing license plates - dey gonna look back - and remember the good life they had as a political public employee, under contract by oath to the commons, how easy and rewarding it used to be when da future tug meister left harvard or mit - and got a political desk at an agency - and all they had to do was burn a few mindless moments tug-jackng a burnt out fat cat thief extortionist murderer rapist banker guy's sorry assed excuse of a dick to work up enough of a rut so de high risk of waning immaculate "semi" hard-on could be easily guided to dat sweet spot da banker man swooned for. Of course no matter de fact dat de asshole da DoJ milk maid was guiding fat cats "package" into was de asshole of one of da many victims de fat cat banker had already fucked - an already got da "get out of jail free" card for! De victim get fucked by a perception sham wow de last time he be raped by banker guy - now he getting tug job banker stub stabbed id de ass all over ahin where de da sun done never chined until he signed wit de stub's proprietor.
Dose banker mans - dey be pink donations fro the dragons in de commons dreams.
Drifting back to topic ...
A documented P/L is de facts - dat "balance sheet" shit .. well ,,the little divil guy on whispering in da ear say de balance sheet prints the fiction perception value you can believe in dat be fueling a new improved soylent green nutrition bar with de spanking new renamed maybe patented additive known in industry as "de sleepy sheeple bling tug job Omega 30 fatty acid" (don't worry de FDA say it safe and de FED say we be in a recovery and inflation be low - and did is da change we can beleive in all over again). Dat bling job tug stuff it make you stiff: Stiff when you see a flat screen tv, when you take de 4G machine out of de pocket. It all around you. You can't see it. But it is there. Like snot you can't sneeze or pick out from de nose. When you feel de itch from da last time de DoJ sayan stuck a banker man dick in your ass. It be there when you do your taxes - when the FED RICO "eases" value from dem dollar bills in your pocket. You perceive it a DoJ tug job to help da banker man stick his dick up your ass. You know it up your ass - but you can't feel it.
In one hand i have a red pill containing real change buffered with perceived pain. In de other hand there is a blue pill contain "Change You Can Believe In" buffered with real pain. De choice be da banker mans - but he must choose soon - real soon.
Back to Balance Sheet Shit
When is an asset a liability? When the asset is accounts receivable.
Intangible assets, assets we cannot assin a conversion value to just got cost - dividend yiels as income - but ain't no guarantee on recovering cost at break even - or any value from 0 to infinity, Rule 1: Perceived /notional value ain;t value - it a taste of rate of return maybe - but it conversion value ain;t known till it be converted,
It be just paper until dog boy in the commons can go down to 42ed streey and by a crack tranny's time in an alley - when it can do dat - it has value.
Currency is a perception too but dem are de exchange tokens we be base lining from for now.
Thinking it all started when the PONZI gang's ancestors, tween killings and the rumble rumage through society sections of ancient news papers looking for HagZag's eavesdrop dgossip byline on dose two famous white beards from time immemeoriable, dat be Abraham and the Sky Mall Manager lunchtime discussion regarding ownership of prime real estate by non indigents carpet baggers claiming dey be carrying da "burden of providence - a right of dominion codified in six simple words "we be gods only chosen people" - dey carry the higgs boson dominion gene and dere shit, so de Oedipus perception machine tell dem, don't stink at all - and if you tink it do - den it be just a perceived stinky. A notional smell..
They be da chosen too (like da worm on da hook chosen by da fish critter) cause they "walk with god" . So do me and you and everybody - Hell me and da Sky Mall Manager guy shag down 20 beers together at da local titty bar's TGIF Happy Hour AND "Touch a Butt Cheek for a Dollar" night. He been doing that for a long time, His old lady left him - not cause da 20 ales and one dollar butt cheek grope on fridays, the Sky Guy is weird. He hear secret voices and always be mumbling - 3 beers and four breasteses later he done forget all bout it. His old lady married a broker who was well known for his 1500$ camel hair coat and always putting last months factor pay down balance on dis month's confirms - he hardly made any phone call at de office - but he sure wore a nicety coat. His company bellied up 15 year ago after unloading a bunch of CMO PO's dat never gonna beat da pay period pricipal pay don - dem mortgages underlying dat batch of PO's be held to term - goes to show - what happens when an instional treasurer tink he some kind of trader and de trade goy de eyes on de latest greatest new and improved to beat camel hair coat wrapped around de manikin in da window of de upscale yuppy-ish clothier's perception parlor and boutique. .
Did you know Al Capone was a practicing church going Catholic - between da massacres and late night parties with real sheep wearing red net stockings.
What is the purpose of a Balance Sheet? Could it be to pretend notional value is somehow almost but not quit real value?
Is a balance sheet an inflatable plastic fuck pig wearing lipstick?
Does anyone know anything more than what they had to memorize to pass de credit debit double journal entry class?
What is the preceived intebnt of the Bal Sheet - and what, if any, is a perception machine?
Let's think about this. Central Banks are ostensibly acquiring Gold so as to supplant the USD as reserves (they can read the writing on the wall). What does that bode for retail players considering news such as
President Obama Friday night signed the National Defense Resources Preparedness Executive Order, outlining the Federal government's plans for 100% control of private resources, labor, and assets in the event of an emergency
Also consider the ZH article earlier today outlining the coming total snooping police state on tap for the U.S. and all communications flowing thru it.
If the powers that be adopt Gold as backing for any future currency then there might be unexpected consequences for the small fry like us. And please, don't shoot the messenger (me).
I'm throwing this out there explicitly to engage your brains on the matter.
OK, essence,
I'll play.
Forget about all he signed.
This administration has done not a thing------
This will not change
Anything DONE
Will be by accident om
There already are "unexpected consequences", like the fact that Obamacare has a provision regarding the sale of physical PM's to dealers as of January 2012. You will get a 1099 for the sale of anything over $450 or $500 (I can't recall which). What are you goinf to do ? Cut off little pieces of your bullion to avoid that ? This is a war on the people by the currupt federal gov't controled by off-shore banking and corporate elites. Not a conspiracy theory but a conspiracy fact.
Check out some of these Chart-Cast videos.
This GOLD screen cast pretty much nailed the recent 1522 low, which implied a rather nice rally after doing so, and that’s exactly what we got.
http://www.facebook.com/elliottwavetechnology?v=app_57675755167
NOTE: adjust player setting to 480p for the best resolution.
http://www.facebook.com/elliottwavetechnology/app_237202476309340
OXYMORONS aRE IN ( VOGUE)
Where is " BONES"?
(13) Let’s not forget that without the mass hysteria fuelling the “Euro crisis”, from the end of 2011 the United States would have been unable to finance its enormous deficits. Wall Street and City had to dangle Europe over the edge of the cliff to ensure the continued flow of bond purchases. Now that this propaganda doesn’t work anymore, it’s thus vital to try to embellish the US situation in default of the external source of US economy financing drying up. See GEAB N°s 58 to 61.
So, the [subjective] impression I have is that the paper price is fully intentionally and severely maipulated down in the face of strong fundamental support in order to buy time or create the context for banker consolidation of the physical metal.
PM's will then remain suppressed, until they are not. Try to predict that turn of intent ..... feeling lucky punk and all that.
never fall in love with your trade :-) Gold going much deeper. Gold bugs will be screwed over.
Like I said, you buy I sell with both hands and feets to you. Good luck gold bugs :-)
I am assuming you can sell with your 'feets' because they have thumbs?
$250 million over the past few weeks. That is peanuts. How much is going in stocks?
Better buy some stock than this idiot gold.
Baaaah baaaah baaaah!
>>>
250-300mm
<<<
is not material to anything.
But if CB's
>>>
...made their largest purchases...in more than four decades last year...
<<<
then the bull run might be over.
Good question, then what paradigm shift in monetary policy may the [bankster/govt cabal] powers that bee[sting] push once thy have a critical mass of the stuff?
Every bull market has corrections. Sorry to all the snobs on CNBC, a bull market is not over simply because a 200 day moving average is crossed.
When sane fiscal policy and positive real interest rates are back it will be time to get out of gold. In the background this week is the fact that inflation is heating up, just wait for double digit inflation combined with ZIRP. The fed isn't even in control anymore, the last time they raised interest rates to 4% the whole economy fell apart.
Great fire sale on PM thanks to Ben's big mouth. Bubble ? Less than 1% of the general public is buying Gold, yet people line up all over the country to sell their "unwanted" Gold for 10%- 40% on the dollar; this does not a bubble make says Yoda. Now, for Bernanke to say that nation-wide drops in housing prices has never happened is just a load of crap. What happened during the last Great Depression ? Bernanke, being a scholar of the Great Depression specifically was obviously just lying. His job is to keep the US stock market over 13,000 and all those Wal Mart goodies from China affordable for the poor, that's about it. Buy, buy, buy physical PM's on the dips (like this one) and hold, hold, hold till your knuckles turn blue.
If you must sell gold - take gold to gun show. Trade gold for gun. Sell gun for cash. Do not put cash in bank. Do not pay bills with cash. Spend cash on no-record daily expenses. Better yet - don't sell gold.
If gold is a currency and money is a technology, then who's driving this train? Please allow Evelyn de Rothschild to explain how a Secretary of the Treasury becomes a Treasury of the Secretary.
http://tradewithdave.com/?p=9629