Russian Central Bank To Offer Gold-Backed Loans (Or Why The Spam-Standard Is Coming To An End)

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Fri, 08/26/2011 - 15:44 | 1605313 anynonmous
anynonmous's picture

more like gold backed tungsten

or is that tungsten backed gold

Fri, 08/26/2011 - 15:46 | 1605333 Michael
Michael's picture

Gold and silver are kryptonite to world central banksters.

Fri, 08/26/2011 - 15:59 | 1605382 Pladizow
Pladizow's picture

But Wait, Trav7777 says gold is in a bubble now that its only 5% off its all time high!

So where is that Smiley Face Finger Fuck TravKKK?

Just another no nothing, stupid, full of shit troll!

Fri, 08/26/2011 - 16:00 | 1605395 WestVillageIdiot
WestVillageIdiot's picture

Thank you for letting me hijack this thread but New York has just announced they will be suspending mass transit at noon tomorrow.

That should be bullish. 

Fri, 08/26/2011 - 16:18 | 1605475 pods
pods's picture

Godspeed WVI!  

pods

Fri, 08/26/2011 - 16:26 | 1605512 WestVillageIdiot
WestVillageIdiot's picture

Thank you.  We have planned for this.  We are not at ground level.  I plan to take video if it gets ugly on Sunday.  I hope everybody is okay through this.  We will do what we can. 

Fri, 08/26/2011 - 16:29 | 1605526 pods
pods's picture

If you get bored, do NOT watch Escape from New York or C.H.U.D.S.

pods

Fri, 08/26/2011 - 16:44 | 1605597 spiral_eyes
spiral_eyes's picture

everyone's scrambling for gold. keep buying the dips, gentlemen

http://azizonomics.com/2011/08/21/the-great-gold-squeeze/ 

Fri, 08/26/2011 - 22:28 | 1606473 IQ 145
IQ 145's picture

I'd just like to post that the margin on a 100oz. gold contract is only $9500. there's been quite a lot of discussion about the raises in margins; but the absolute value of this, present, vargin; is very reasonable. A 100oz. gold contract is "worth", (whatever), about 180,000$. a 5% margin is not a problem for people in this market. I believe you'll see margins rise to 10%; I have no idea when. But this will not stop the traders either. Many futures traders have traded in ":hot" markets previously when the margins were raised to 10%, and above 10%; but the great majority of the activiity continues. These are pretty well-heeled people and these kinds of numbers aren't going to scare them out of anything; much less Gold; if they make their minds to do it. Just sayin. Some perspective on this margin question.

Fri, 08/26/2011 - 22:47 | 1606495 tmosley
tmosley's picture

That is correct.  It is not the value of the margin that is important.  It is the change, and more specifically HOW it is changed.

If it is changed multiple times in a few days, it is devastating.  If it is changed ONCE, then there is a single quick hit to the the price in one direction or the other, then the market quickly normalizes.  Changing them constantly drives away speculators, meaning the exchanges make less money.  If they do that over and over, there MUST be a reason for it.  People don't destroy their businesses for no reason.

Fri, 08/26/2011 - 23:55 | 1606687 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Good to know IQ.

Fri, 08/26/2011 - 23:53 | 1606681 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

"and" ladies.  I know a lot of women with bucks who are loading up.  I am looking for one interested in adopting me but no luck so far.  I am even considering taking a bath (sorry I forgot Warren Buffet like all metrosexuals takes baths) I mean shower.

Fri, 08/26/2011 - 17:04 | 1605689 toxic8
toxic8's picture

The water is right across the street from my house in Brooklyn, should I be worried?

 

Wasn't Irene tracking eastward and losing strength?

 

Mass transit suspended.. shit, better stock up on liquor!!

Fri, 08/26/2011 - 20:30 | 1606256 Yes_Questions
Yes_Questions's picture

The one thing they never tell you to stock up on, easily as important as the other items on the official lists.

Hang in there.

 

Fri, 08/26/2011 - 21:10 | 1605790 macholatte
macholatte's picture

BREAKING NEWS!!!  VIRGINIA QUAKE  BREAKING NEWS!!! 

The USGS has determined that the epicenter of the Virginia earthquake was in a cemetary just outside of DC.The cause appears to be all of our Founding Fathers rolling over in their graves. Due to the unusual severity of the quake that hit near D.C., the GOP representatives in the House called an emergency sessionand adopted a bill to rename the fissure that runs under the Capital. It will now be known as "Obama's Fault."

Fri, 08/26/2011 - 22:31 | 1606477 IQ 145
IQ 145's picture

LOL ! Damn, I wish that man would retire; and get his buddy Warren to retire too, while he's at it; and fire Bernanke on the way out. Oh well; it is what it is.

Fri, 08/26/2011 - 23:49 | 1606675 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

All puppets.  Lose them and they will be replaced by new puppets.  Have we not figured this out yet!?

Fri, 08/26/2011 - 16:14 | 1605457 Terminus C
Terminus C's picture

Your magnificent boobs are gone!

Fri, 08/26/2011 - 16:19 | 1605482 mick_richfield
mick_richfield's picture

I must say, Terminus, that it seems an ungentlemanly observation to make.

Fri, 08/26/2011 - 16:24 | 1605501 Pladizow
Pladizow's picture

Yes sorry, I had them on display so that I could easily see them in the thread.

But with so many copy cats lately I had to put them away.

Currently in search of a new avatar.

Fri, 08/26/2011 - 16:48 | 1605617 NotApplicable
NotApplicable's picture

How about a single boob, or just a nipple? That's different.

Fri, 08/26/2011 - 20:17 | 1606228 Mr. Mandelbrot
Mr. Mandelbrot's picture

Or a penis, that would be original . . .

Fri, 08/26/2011 - 20:32 | 1606259 Yes_Questions
Yes_Questions's picture

Or a penis and boobs: go all out Bankster.

Fri, 08/26/2011 - 16:58 | 1605664 EvlTheCat
Fri, 08/26/2011 - 17:18 | 1605735 hunglow
hunglow's picture

I'm happy.  That Au has a rise.

Fri, 08/26/2011 - 17:21 | 1605741 Rome is burining
Rome is burining's picture

The trifecta!

To alien for me.

Fri, 08/26/2011 - 18:05 | 1605866 Atomizer
Fri, 08/26/2011 - 18:53 | 1606012 EvlTheCat
EvlTheCat's picture

I'll never love again! :(

Fri, 08/26/2011 - 16:15 | 1605460 fiddler_on_the_roof
fiddler_on_the_roof's picture

Trav7777 did call the silver crash perfectly. $48 something. I sold at $46. I don't expect s silver run again until next year spring 2012(I could be wrong)

Fri, 08/26/2011 - 17:00 | 1605638 Hearst
Hearst's picture

Silver's going to surprise everyone to the upside.  Every time it gets whacked down, like a water bouie held under water it quickly advances back up.  As most know, central banks hold no Silver today.  At least I can't think of one that has any.  Silver will go out of control very soon.  Put even a fraction of the interest Gold has recently received around the world into Silver coupled with a couple MSM news bites and the strain on physical will cause Apmex to issue one of thier 'pre-market disruption' notices that all sales are temporarily halted due to market volitility.  Reopening at $150+ per oz, 6-12 week delivery.   

     What was that schill report last year?  CPM's own calculations showed Silver represented as a total global asset registered at .007%!!  That is unreal!  Second to oil, Silver is used for more items industrially than any other commodity and yet it is extraordinarily under owned, under supplied, critically needed but costs 1/44th of 1 oz of Gold!  Silver's going to leave everyone (or almost everyone) completely dumbfounded.  The bubble and mania speak will make their rounds again but it wont mater.  Economic law will exert itself maybe by the end of the year and Silver's assent will be spectacular!  Then we get to witness the implosion of the manipulated short positions and fraudulent SLV.  This is going to be sick!

Fri, 08/26/2011 - 17:07 | 1605698 BayAreaAlan
BayAreaAlan's picture

Hype much?

I own more silver than most, but your posting is hype, not fact, based.

Fri, 08/26/2011 - 17:16 | 1605722 tmosley
tmosley's picture

So you own what, a half an ounce?

Most people own NOTHING beyond some sparse wiring in their electronics or some cheap jewelry.

Silver has and will continue to surprise to the upside.  The fundamentals dictate that that will happen under ANY set of circumstances short of a mile wide meteorite made of silver crashing onto some of Warren Buffett's land.  The only question is this: what will be the nature of the rise?  Either the supression efforts continue, and we get an explosion and industrial panic followed by a blow off top before settling at a short term equilibrium point around a quarter the price of gold (the blow off top could go to many multiples the price of gold, rhodium style).  Alternatively, other markets could open and allow real price discovery to happen, allowing an orderly rise to the parity with gold which drives an increase in recyling and mining efforts resulting if a fall back to the same short term equilibrium as the other scenario.

The equilibrium value will be the same in either case because the stock and flow of silver are the same in both cases, absent the market preturbations created by the actions of the big players.  

Fri, 08/26/2011 - 17:30 | 1605770 Surly Bear
Surly Bear's picture

I keep buying my son coins. 

Fri, 08/26/2011 - 18:54 | 1606013 knukles
knukles's picture

I keep stealing my son's coins.

Fri, 08/26/2011 - 19:19 | 1606084 akak
akak's picture

I keep sunning my non-steel coins.

Fri, 08/26/2011 - 20:24 | 1606245 SumSUN
SumSUN's picture

I'm a sun-keeping coins.

Fri, 08/26/2011 - 23:45 | 1606661 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

God is watching you and he is waiting around the corner for you with a club and it ain't filled with cotton.

 

Fri, 08/26/2011 - 23:47 | 1606667 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes, he is leaving the post 1965 dimes and quarters in his piggy bank for you, ya dumb ass.  He has his 90% well hidden!:)

Fri, 08/26/2011 - 23:44 | 1606656 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Same here Surly!  It's the least we can do for our kids after we allowed this shit to happen!

Fri, 08/26/2011 - 20:02 | 1606202 Hook Line and S...
Hook Line and Sphincter's picture

Paper meteorites inscribed with the word 'silver' land all the time.

Fri, 08/26/2011 - 20:30 | 1606257 Mr. Mandelbrot
Mr. Mandelbrot's picture

tmosley, I know you're an astute PM guy and I agree that there will be an explosion in silver price at some point relative to gold, but when when the expected move happens, my approximately 50/50 gold silver ratio (I keep finding fraction of spot deals on silver, but never gold) will quickly be converted to 90/10+ gold.  Everyone talks about a 16:1 historical ratio being proper, but if silver gets anywhere close to 1/25th of gold, I'm cashing in big time.  I'd rather not hold too much of the "poor man's" anything . . .

Fri, 08/26/2011 - 22:51 | 1606502 tmosley
tmosley's picture

That is exactly the right move, though I would argue that your ratio is too conservative.  You will do exceptionally well following your strategy.  You won't become ultra rich, but you will be wealthy.

Always, always, ALWAYS have an exit strategy.  Mine is to exit into gold on a cost average basis averaging somewhat above parity.  The exit strategy for gold is there as well, ie buy farm land, real estate, stocks, etc.  Things with a return, which produce things for society.

Sat, 08/27/2011 - 11:05 | 1607252 Ahmeexnal
Ahmeexnal's picture

A harem or two would also be a good strategy.

Fri, 08/26/2011 - 23:42 | 1606649 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Sunday night.

Fri, 08/26/2011 - 20:35 | 1606265 Dyler Turden II Esq
Dyler Turden II Esq's picture

If 1/4 the price of gold is the SHORT-term equilibrium price, then what do you reckon the LONG-term equilibrium price to be?  Roughly...

Fri, 08/26/2011 - 22:56 | 1606511 tmosley
tmosley's picture

Probably around 1/10 as mining ramps up and recycling efforts become entrenched and capitalized.

It won't go much higher than that due to the fact that so much silver is used in applications where it can't be recovered at any reasonable price.  Think medical applications where you would have to retrieve it from urine, or worse, the bodies after death.  Remember, the gold sticks around, but silver is scattered to the winds in nearly irretrievable forms.

Fri, 08/26/2011 - 21:10 | 1606331 mt paul
mt paul's picture

monster bar 

in the cats litter box...

 

just because...

 

 

Fri, 08/26/2011 - 18:24 | 1605929 Hearst
Hearst's picture

Bayarea, hype would be if the few facts I gave for owning Silver were untrue.  The fact is Silver has every potential to (re) become the second most sought after financial asset in the world, while still currently being the most underowned!  A few decades of powerful, constant propaganda and legal tender laws has almost completely removed from the understanding of the general populace how valuable Silver is.  Together with industrial use like Eric Sprott said, Silver is going to be the investment of the decade.  Realizing those facts we should be shouting this news to everyone and anyone we care about, keeping with a longer term perspective and not being caught up with day to day price movements.  Gold is currently trumpeting the truth to the world of what these metals are and represent.  Silver is soon to follow! 

Fri, 08/26/2011 - 22:44 | 1606487 IQ 145
IQ 145's picture

Now come on; he's not an unreasonable person; I've been seeing his posts for years and he's not a wing-nut. It's just his opinion; and none of it is impossible. The market is so small a few wealthy European families could get together and buy the whole freaking Comex Warehouse. There, now you can tell me I'm hyping. Facts are little short on the ground, I believe, but there sure isn't a lot of surplus silver laying around, and there sure did used to be. Now, that's a fact; what it portends  for the next year, I really couldn't tell you. It's a little unusual tho, to see the price of something go down for a significant whiile at the same time the supplies are being bought up faster than it's getting mined. I supposed everyone might stop buying it; if peace and prosperity breaks out, for instance.

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