<< <i>The "flash crash" sounds and looks impressive, but the fact is very little trading took place at those low prices. There was very little selling or buying. No huge amounts of money were made or lost by indivual investors. Did some people get taken out of their AAPL stock at $200, yes but lets put in perspective. In the minute that AAPL traded to $199, the range was $199 to 222. 570,000 shares traded during that minute. So at an average price of $210 thats $119 million. To expand on this, AAPL traded under $235 for all of 5 minutes during which just over 2 million shares traded. During the entire day 60 million shares traded at an average price of about $245, or nearly $15 billion in total dollar volume.
Nobody got rich on this event. Some individuals sold stock low and some bought low. In the end it was a wash.
This was a very unfortunate confluence of events that hurts the confidence of the market and thats not good. A flaw in the system has been identified and can now be fixed. The markets going forward will be stronger as a result. >>
Hey stuff can always be coded around, but the solution will involve more "gaming" of the system then who knows or can foresee the consequences? I would question if the system has been patched together with algos and HFT is this really a free market? Another issue is if the liquidity isn't there, what's supposed to happen? A market should fall...
Wolf, the role of the specialists and market makers is to ensure a liquid and orderly market. To be a seller/buyer when there are no others. Computers have replaced the specialist. Bad idea. Get rid of the computers.
I thought the Chinese were selling US Treasuries. They know the goose that gives them golden eggs. They will continue to feed that goose.
"Last week we noted that several prominent Austrian and German gold dealers had run out of inventory and were no longer transacting with a European population that has suddenly discovered gold religion. As a result, dealers are now focusing procurement efforst outside of Europe, with South Africa receiving the brunt of Europe's panic for physical precious metals. As the FT reports, "At the Rand refinery in South Africa, the phone has not stopped ringing this week." Just imagine what will happen when the gold bug goes airborne and jumps across the Atlantic... "
Most people do buy "paper gold"/GLD,etc an think they own gold & are protecting there wealth. In reality there harming there long term wealth
Dear Friend of GATA and Gold:
In a research note published this week an analyst for JPMorgan Securities Inc., John Bridges, more or less explains why central banks hate gold -- for its being a competitor with their own forms of money.
The analyst, John Bridges, wrote: "A German banker once told us that gold normally trades like a commodity. However, when investors lose confidence in currencies, because the pool of gold is so much smaller than the pool of currencies, demand for gold can effectively become unlimited. We believe the European version of 'QE' [quantitative easing] is generating serious currency worries. ..."
That observation hints at why Western central banks and the International Monetary Fund backstop the London Bullion Market Association and the New York Commodities Exchange in their sales of unlimited and largely unbacked paper gold: so that the world may be deceived into thinking that the gold supply is a lot larger than it is, so the world is deprived of its traditional hedge against monetary debasement, and so potentially "unlimited" demand for gold can be met with unlimited supply of imaginary gold, thereby sustaining confidence in government currencies and the power of governments to inflate and reap the profits and power of the hidden tax of inflation.
Singapore & Hong Kong March/April Hong kong/Long Beach JUNE Table #838 MACAU emgworldwide@gmail.com Cell: 512.808.3197 EMERGING MARKET GROUP PCGS, NGC, CCE & NCS, CGC, PSA, Auth. Dealer
"Last week we noted that several prominent Austrian and German gold dealers had run out of inventory and were no longer transacting with a European population that has suddenly discovered gold religion. As a result, dealers are now focusing procurement efforst outside of Europe, with South Africa receiving the brunt of Europe's panic for physical precious metals. As the FT reports, "At the Rand refinery in South Africa, the phone has not stopped ringing this week." Just imagine what will happen when the gold bug goes airborne and jumps across the Atlantic... " >>
Panic is a very strong emotional response and is always associated with tops and bottoms.
Went to a coin show over the weekend to get my AGB. Ran into a Goetz designed 500 Million Mark notgeld and got it as well (my second 1). Pic below from web (the one I got is in better state). The 1 I have from before is in worse shape than the one pictured. So now I have 1 Billion Mark total in notgeld. Keeps me anchored to the realities of fiat money.
Panic is a very strong emotional response and is always associated with tops and bottoms.
I don't see anyone in the US panicking. And by the time that the US stock market panicks, who knows what condition they will be in over in Europe, who they will want to blame and what effects that will have on the NYSE. I imagine that Russia and China are excited over this.
Q: Are You Printing Money? Bernanke: Not Literally
"Last week we noted that several prominent Austrian and German gold dealers had run out of inventory"
This makes perfect sense with all the saber ratteling going on about ending the Euro. I mean what will Europeans turn to if the Euro is done away with, and no one knows the value of their new currency?
Gold is only consolidating its recent gains. And it is holding up well vs. a surging USD. Gold can't go up every single day. >>
I find it interesting that Bill Gates & Warren Buffett both increased their stakes in XOM. There is a sentiment going around the investment community that gold and oil companies are the two safest havens as of now.
Technically, June Comex gold futures bulls still have the solid near-term technical advantage. No near-term chart damage has occurred from the pull back in prices. In fact, downside corrections in a major bull market run should be expected and actually keep a market from becoming over-extended and vulnerable to bigger and more damaging spikes lower in price. There are still not yet any early technical clues to suggest a market top is close at hand.
The fact that prices have recently pushed to a new all-time high suggests bigger upside targets in the coming weeks and months. The next major upside target for the bulls is $1,500.00 an ounce. Below that level does lie strong psychological resistance at $1,300.00 and $1,400.00.
Yep, if the dollar is so darned solid right now, why do they lend it out for nothing? I mean, if this is the strongest currency on the planet, why don't they charge more to lend it out...interest has to go up, screw inflation 'cause it's gotta happen. Maybe it's a rope a dope, they reel out a lot of dollars and then start charging some interest for them and boom, the big O is a genius, the deficit is solved, we resolve our debt, and we're golden again. Hummmmmm...I better just go and weed the garden before it gets too late.
Exactly. America is not going to sit around and let their country fall apart. This is so obvious. Its fun and popular to talk about the end of the USA.
<< <i>Exactly. America is not going to sit around and let their country fall apart. This is so obvious. Its fun and popular to talk about the end of the USA. >>
In the end, Americans will be no different than the people of Greece who have let their politicians spend their country into hole. We have already been spent into a deep hole there is no way out of, especially when interest rates start climbing. And when the topic of cutting back on social security and other social programs gets brought up, the people will have none of it, because they have grown dependent on the government's teat.
<< <i>Exactly. America is not going to sit around and let their country fall apart. This is so obvious. Its fun and popular to talk about the end of the USA. >>
In the end, Americans will be no different than the people of Greece who have let their politicians spend their country into hole. We have already been spent into a deep hole there is no way out of, especially when interest rates start climbing. And when the topic of cutting back on social security and other social programs gets brought up, the people will have none of it, because they have grown dependent on the government's teat. >>
Thank you for proiving my point.
Im still waiting for this rising interest rate thing. Maybe it does happen. If so, I think it will prove to be disinflationary.
I'm not ready to predict the end of the USA but what is the long term solution to the debt issue in the US or in Europe? It seems to me that real action normally doesn't take place until some kind of crisis makes it unavoidable, and even then its more a case of crisis containment than a long term solution.
We will be fine as soon as we quit fighting two wars. These things are VERY expensive in both financial and non financial costs. We were in great shape at the end of the Clinton administration.
Retired United States Mint guy, now working on an Everyman Type Set.
<< <i>We will be fine as soon as we quit fighting two wars. These things are VERY expensive in both financial and non financial costs. We were in great shape at the end of the Clinton administration. >>
That may or may not be the case. Now how was the great depression won? What inpact would ending wars have on the employement picture? Ending the war may sound good and we all hope it happens but then you have a problem of unemployeement going though the roof. Guess the programs the the WPA and TVA would have to be brought back maybe this time it would be to upgrade our power grids and bring wind and solar to homes and industry. There's no simple solution at this point and the longer they can delay a solution the worse it will be IMO.
In another thread, I had previously stated that there was a T-bill bubble, and Cohodk mentioned that he thought that it may be "long in the tooth" but not parabolic and not a bubble, and that if the trend reverses it will be an orderly decline.
So I did some more research which I think people may find interesting. I found that the size of the T-bill bubble is $12.4T, which is reported to be the largest for a single investment class or type. Treasuries have never been this overbought, and yields are at the lowest in over 50 years.
The last time treasuries imploded was 1976. In the 5 years following the implosion: --commodities lunged into the final leg of their bull market. --The price of oil increased 3x. ($11.16 to $36) --The price of gold increased 6x ($105 to $600) --the yield on 30 year treasuries went from 7.2% to 14.68% --The dow lost 28% --the dollar lost 35% of its purchasing power --inflation went from 4+% to almost 12%.
Now I'm not saying the T-bill bubble collapse is imminent, but I do think it's coming. And it will probably come when we least expect it. Overall, I am unsure of what the timing will be.
But just for a second - envision the US refinancing its treasuries (which now have an average maturity in the 4 year range, IIRC), at 3, 4, and even 7% higher rates. With interest payments already consisting of a large portion of the annual US budget, how will the US be able to afford the higher interest rates? The US is no different than all of those people with $30k salaries who bought $400,000 homes in 2005 using 5/1 ARMs or teaser rates. Sure they make the payment at the beginning, but when the rate resets and you can't refinance, you're in deep trouble.
I see alot of money in T-bonds, but I dont see a bubble. This economic cycle can not be compared to the 1970's. I know thats what everyone looks to as it was our last bout of inflation. But that was brought abought by the coming of age of the baby boomers into society, Nixon's price controls, the removal of the fixed price gold, and an imbalance in the supply/demand equation.. US manufacturing capacity was at 85%--a level that has always brought about inflation.
Today we are operating at 72% capacity. There is no population bulge demanding goods. Commodities have already run up 300-600% in the last 10 years. The CCI chart I posted has shown that the inflation bubble burst in 2008. There will not be another inflation bubble.
The USA could just sell Alaska back to Russia. Thats probably worth 12 trillion. Or maybe sell New York City? or LA? The USA has lots of resources to pay the bill. But, we dont have to. Argentina didnt pay back all their debt. Lots of debt has been "forgiven". Of course it will never come to this. But there is an alternative to printing and paying.
A rise in interest rates would also hinder economic growth. Again, no inbalance in the supply/demand equation would result. Higher rates would help the savers--who have been unduely punished the last few years.
<< <i>We will be fine as soon as we quit fighting two wars. These things are VERY expensive in both financial and non financial costs. We were in great shape at the end of the Clinton administration. >>
<< <i>We will be fine as soon as we quit fighting two wars. These things are VERY expensive in both financial and non financial costs. We were in great shape at the end of the Clinton administration. >>
Just in hindsight. Even after two years of the financial meltdown Congress is still incompetent concerning Deravatives ($600 Trillion). I see Born as Jor-EL (Superman's Father) of Krypton just before Krypton's Sun exploded.
<< <i>We will be fine as soon as we quit fighting two wars. These things are VERY expensive in both financial and non financial costs. We were in great shape at the end of the Clinton administration. >>
Got to agree, with the help of a Republican Congress....we had a budget surplus ... that was the first time in ???? years. On the other hand, we did not have 9/11 ... that surplus would have vanished along with "in great shape" had it occurred during the Clinton Administration. Like comparing oranges with potatoes.
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
I'm still waiting for this rising interest rate thing. Maybe it does happen. If so, I think it will prove to be disinflationary.
Gold apparently doesn't mind the low interest rate environment. It did well in both higher and lower rate environments this past decade. As long as the real interest rate remains negative or zero, gold will keep on trucking. Regardless of the interest rate environment, as long as currencies are ultimately cheapened by the continuance trillion dollar bailouts, hard assets like gold will prosper. This is also a confidence issue. The longer interest rates remain at zero, the less confidence people will have in their currencies. I would not be at all surprised to see gold make it to the next step of $1550-$1650 while short term interest rates/FED rates remain essentially at zero....and long term rates stay around their current levels of 4-5%.
Outright TBond purchases may not be a bubble per se but the real problem is with the $180 TRILL in interest rate swaps that our top 5 banks own. I'd feel a lot better about TBonds if I knew who really was the ultimate end-buyer at these auctions....not necessarily who purchases them at the auctions.
I own gold, platinum and silver but only at about 20%.
If the Dollar devalues to 0, it won't be any good in a money market fund or T-bills. Those in stocks will probably flee but at least you are holding something tangible in stocks(staples like Proctor and Gamble, Kraft, etc.). Like Faber says, maybe I should buy a house in the country.
I missed this change entirely. On the Treasury's 5/14/07 Reserve Assets report the description of US gold inventory was changed from "gold deposits" to "gold deposits and where applicable swaps." For quite some time Treasury officials have denied that the US engaged in gold swaps or leases, even though Greenspan initially blurted that out as far back as 1998. The only question remaining is how much has been swapped or leased?
<< <i>I missed this change entirely. On the Treasury's 5/14/07 Reserve Assets report the description of US gold inventory was changed from "gold deposits" to "gold deposits and where applicable swaps." For quite some time Treasury officials have denied that the US engaged in gold swaps or leases, even though Greenspan initially blurted that out as far back as 1998. The only question remaining is how much has been swapped or leased?
<I like Peter Schiff, but he really came off as a crack-pot on TV today>
He comes across the same way at dinner : ). I think I mentioned this before but I work with Peter's mother and he's an acquaintance.
He's on full tilt 24/7....................I do like him a lot but he even makes me wince at times. Check please.......MJ
Walker Proof Digital Album Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
The same way you see him on CNBC or on YouTube etc he is socially as well.......He is non-stop. He would fit in well on the PM forum : )
FYI- He didn't do so well in the Conn. Senate Republican Primary..........
MJ
Walker Proof Digital Album Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Yup, they wiped out the 18,000 calls at $1200 but that was the extent of the damage. One major headwind now removed from this week. Of the last 8 combined TBond and options expiration weeks, only one resulted in gold not rising again by Thursday or Friday. That week was the last week in Jan. 2010 as gold was headed into a deep 1st week of Feb. bottom at $1044.
And there it is right around 4-5 pm and hours after the Comex has closed.....$1203.
did the amount change inordinately from the last time (i'm, sure it's not static....but any spike one way or the other? or is it just CYA?)
CYA....It didn't change one ounce between the May 7th and May 14th 2007 reports. As a rule this published number doesn't seem to change.
Gold in a bubble? Even if it were, it would probably not fall below $500, the cost to produce one ounce, and when inflation starts to rear up, and it will, it will even cost more to produce. Fiat on the other hand can go to $0 which ironically the U.S Treasury is being propped up by the Chinese. Entertaining Golden Video
Comments
<< <i>The "flash crash" sounds and looks impressive, but the fact is very little trading took place at those low prices. There was very little selling or buying. No huge amounts of money were made or lost by indivual investors. Did some people get taken out of their AAPL stock at $200, yes but lets put in perspective. In the minute that AAPL traded to $199, the range was $199 to 222. 570,000 shares traded during that minute. So at an average price of $210 thats $119 million. To expand on this, AAPL traded under $235 for all of 5 minutes during which just over 2 million shares traded. During the entire day 60 million shares traded at an average price of about $245, or nearly $15 billion in total dollar volume.
Nobody got rich on this event. Some individuals sold stock low and some bought low. In the end it was a wash.
This was a very unfortunate confluence of events that hurts the confidence of the market and thats not good. A flaw in the system has been identified and can now be fixed. The markets going forward will be stronger as a result. >>
Hey stuff can always be coded around, but the solution will involve more "gaming" of the system then who knows or can foresee the consequences? I would question if the system has been patched together with algos and HFT is this really a free market? Another issue is if the liquidity isn't there, what's supposed to happen? A market should fall...
Free Trial
I thought the Chinese were selling US Treasuries.
foreigners were heavy net buyers of long-term U.S. financial assets in March
Knowledge is the enemy of fear
"Last week we noted that several prominent Austrian and German gold dealers had run out of inventory and were no longer transacting with a European population that has suddenly discovered gold religion. As a result, dealers are now focusing procurement efforst outside of Europe, with South Africa receiving the brunt of Europe's panic for physical precious metals. As the FT reports, "At the Rand refinery in South Africa, the phone has not stopped ringing this week." Just imagine what will happen when the gold bug goes airborne and jumps across the Atlantic... "
So, hang on to your pre '33 because another great melt is coming?
<< <i>Morgan analyst hints at need for unlimited paper gold >>
Wow! this theory makes sense......sadly.
Most people do buy "paper gold"/GLD,etc an think they own gold & are protecting there wealth. In reality there harming there long term wealth
Dear Friend of GATA and Gold:
In a research note published this week an analyst for JPMorgan Securities Inc., John Bridges, more or less explains why central banks hate gold -- for its being a competitor with their own forms of money.
The analyst, John Bridges, wrote: "A German banker once told us that gold normally trades like a commodity. However, when investors lose confidence in currencies, because the pool of gold is so much smaller than the pool of currencies, demand for gold can effectively become unlimited. We believe the European version of 'QE' [quantitative easing] is generating serious currency worries. ..."
That observation hints at why Western central banks and the International Monetary Fund backstop the London Bullion Market Association and the New York Commodities Exchange in their sales of unlimited and largely unbacked paper gold: so that the world may be deceived into thinking that the gold supply is a lot larger than it is, so the world is deprived of its traditional hedge against monetary debasement, and so potentially "unlimited" demand for gold can be met with unlimited supply of imaginary gold, thereby sustaining confidence in government currencies and the power of governments to inflate and reap the profits and power of the hidden tax of inflation.
Hong kong/Long Beach JUNE Table #838
MACAU
emgworldwide@gmail.com
Cell: 512.808.3197
EMERGING MARKET GROUP
PCGS, NGC, CCE & NCS, CGC, PSA, Auth. Dealer
<< <i>With Local Gold Inventories Depleted, Panicking German Dealers Stage Run On Krugerrands
"Last week we noted that several prominent Austrian and German gold dealers had run out of inventory and were no longer transacting with a European population that has suddenly discovered gold religion. As a result, dealers are now focusing procurement efforst outside of Europe, with South Africa receiving the brunt of Europe's panic for physical precious metals. As the FT reports, "At the Rand refinery in South Africa, the phone has not stopped ringing this week." Just imagine what will happen when the gold bug goes airborne and jumps across the Atlantic... " >>
Panic is a very strong emotional response and is always associated with tops and bottoms.
Knowledge is the enemy of fear
<< <i>Morgan analyst hints at need for unlimited paper gold >>
Wow, and I thought Morgans were silver, not paper or gold!
I don't see anyone in the US panicking. And by the time that the US stock market panicks, who knows what condition they will be in over in Europe, who they will want to blame and what effects that will have on the NYSE. I imagine that Russia and China are excited over this.
I knew it would happen.
This makes perfect sense with all the saber ratteling going on about ending the Euro.
I mean what will Europeans turn to if the Euro is done away with, and no one knows the value of their new currency?
Question is why has Gold dropped $30 in 3 days?
Mr. Soros got richer betting heavily against the Pound. I wonder if he is betting heavily against the Euro?
<< <i>Question is why has Gold dropped $30 in 3 days? >>
Gold is only consolidating its recent gains. And it is holding up well vs. a surging USD. Gold can't go up every single day.
<< <i>
Gold is only consolidating its recent gains. And it is holding up well vs. a surging USD. Gold can't go up every single day. >>
I find it interesting that Bill Gates & Warren Buffett both increased their stakes in XOM. There is a sentiment going around the
investment community that gold and oil companies are the two safest havens as of now.
The fact that prices have recently pushed to a new all-time high suggests bigger upside targets in the coming weeks and months. The next major upside target for the bulls is $1,500.00 an ounce. Below that level does lie strong psychological resistance at $1,300.00 and $1,400.00.
<< <i>Guess Who's Even More Broke Than Greece? >>
They should put a few of the states up there, like California.
Link to article on Wal Mart
The financial pain is there. Most folks are responding to it. Some are still ignoring it.
Now our government has been doing its very best to ignore it. BUT the primaries have shown some voters are looking for better solutions.
This will be painful but I remain an optimist.
Knowledge is the enemy of fear
<< <i>Exactly. America is not going to sit around and let their country fall apart. This is so obvious. Its fun and popular to talk about the end of the USA. >>
In the end, Americans will be no different than the people of Greece who have let their politicians spend their country into hole. We have already been spent into a deep hole there is no way out of, especially when interest rates start climbing. And when the topic of cutting back on social security and other social programs gets brought up, the people will have none of it, because they have grown dependent on the government's teat.
<< <i>
<< <i>Exactly. America is not going to sit around and let their country fall apart. This is so obvious. Its fun and popular to talk about the end of the USA. >>
In the end, Americans will be no different than the people of Greece who have let their politicians spend their country into hole. We have already been spent into a deep hole there is no way out of, especially when interest rates start climbing. And when the topic of cutting back on social security and other social programs gets brought up, the people will have none of it, because they have grown dependent on the government's teat. >>
Thank you for proiving my point.
Im still waiting for this rising interest rate thing. Maybe it does happen. If so, I think it will prove to be disinflationary.
Knowledge is the enemy of fear
<< <i>We will be fine as soon as we quit fighting two wars. These things are VERY expensive in both financial and non financial costs. We were in great shape at the end of the Clinton administration. >>
That may or may not be the case. Now how was the great depression won? What inpact would ending wars have on the employement picture? Ending the war may sound good and we all hope it happens but then you have a problem of unemployeement going though the roof. Guess the programs the the WPA and TVA would have to be brought back maybe this time it would be to upgrade our power grids and bring wind and solar to homes and industry. There's no simple solution at this point and the longer they can delay a solution the worse it will be IMO.
Box of 20
So I did some more research which I think people may find interesting. I found that the size of the T-bill bubble is $12.4T, which is reported to be the largest for a single investment class or type. Treasuries have never been this overbought, and yields are at the lowest in over 50 years.
The last time treasuries imploded was 1976. In the 5 years following the implosion:
--commodities lunged into the final leg of their bull market.
--The price of oil increased 3x. ($11.16 to $36)
--The price of gold increased 6x ($105 to $600)
--the yield on 30 year treasuries went from 7.2% to 14.68%
--The dow lost 28%
--the dollar lost 35% of its purchasing power
--inflation went from 4+% to almost 12%.
Now I'm not saying the T-bill bubble collapse is imminent, but I do think it's coming. And it will probably come when we least expect it. Overall, I am unsure of what the timing will be.
But just for a second - envision the US refinancing its treasuries (which now have an average maturity in the 4 year range, IIRC), at 3, 4, and even 7% higher rates. With interest payments already consisting of a large portion of the annual US budget, how will the US be able to afford the higher interest rates? The US is no different than all of those people with $30k salaries who bought $400,000 homes in 2005 using 5/1 ARMs or teaser rates. Sure they make the payment at the beginning, but when the rate resets and you can't refinance, you're in deep trouble.
Today we are operating at 72% capacity. There is no population bulge demanding goods. Commodities have already run up 300-600% in the last 10 years. The CCI chart I posted has shown that the inflation bubble burst in 2008. There will not be another inflation bubble.
The USA could just sell Alaska back to Russia. Thats probably worth 12 trillion. Or maybe sell New York City? or LA? The USA has lots of resources to pay the bill. But, we dont have to. Argentina didnt pay back all their debt. Lots of debt has been "forgiven". Of course it will never come to this. But there is an alternative to printing and paying.
A rise in interest rates would also hinder economic growth. Again, no inbalance in the supply/demand equation would result. Higher rates would help the savers--who have been unduely punished the last few years.
Knowledge is the enemy of fear
<< <i>We will be fine as soon as we quit fighting two wars. These things are VERY expensive in both financial and non financial costs. We were in great shape at the end of the Clinton administration. >>
<< <i>We will be fine as soon as we quit fighting two wars. These things are VERY expensive in both financial and non financial costs. We were in great shape at the end of the Clinton administration. >>
Yeah, great sure.
Free Trial
Just in hindsight. Even after two years of the financial meltdown Congress is still incompetent concerning Deravatives ($600 Trillion). I see Born as Jor-EL (Superman's Father) of Krypton just before Krypton's Sun exploded.
Box of 20
<< <i>We will be fine as soon as we quit fighting two wars. These things are VERY expensive in both financial and non financial costs. We were in great shape at the end of the Clinton administration. >>
Got to agree, with the help of a Republican Congress....we had a budget surplus ... that was the first time in ???? years. On the other hand, we did not have 9/11 ... that surplus would have vanished along with "in great shape" had it occurred during the Clinton Administration. Like comparing oranges with potatoes.
Gold apparently doesn't mind the low interest rate environment. It did well in both higher and lower rate environments this past decade. As long as the real interest rate remains negative or zero, gold will keep on trucking. Regardless of the interest rate environment, as long as currencies are ultimately cheapened by the continuance trillion dollar bailouts, hard assets like gold will prosper. This is also a confidence issue. The longer interest rates remain at zero, the less confidence people will have in their currencies. I would not be at all surprised to see gold make it to the next step of $1550-$1650 while short term interest rates/FED rates remain essentially at zero....and long term rates stay around their current levels of 4-5%.
Outright TBond purchases may not be a bubble per se but the real problem is with the $180 TRILL in interest rate swaps that our top 5 banks own. I'd feel a lot better about TBonds if I knew who really was the ultimate end-buyer at these auctions....not necessarily who purchases them at the auctions.
roadrunner
I own gold, platinum and silver but only at about 20%.
If the Dollar devalues to 0, it won't be any good in a money market fund or T-bills. Those in stocks will probably flee but at least you are holding something tangible in stocks(staples like Proctor and Gamble, Kraft, etc.). Like Faber says, maybe I should buy a house in the country.
Box of 20
A Billionaire Goes All-In on Gold
<< <i>talk about "all in"
A Billionaire Goes All-In on Gold >>
Yeah, it's easy to do when it's not your own $$$
Change in gold inventory reporting
roadrunner
<< <i>I missed this change entirely. On the Treasury's 5/14/07 Reserve Assets report the description of US gold inventory was changed from "gold deposits" to "gold deposits and where applicable swaps." For quite some time Treasury officials have denied that the US engaged in gold swaps or leases, even though Greenspan initially blurted that out as far back as 1998. The only question remaining is how much has been swapped or leased?
Change in gold inventory reporting
roadrunner
roadrunner >>
did the amount change inordinately from the last time (i'm, sure it's not static....but any spike one way or the other? or is it just CYA?)
Gold article from Bloomberg
Noteable quote: "People are afraid of the debasement of all the currencies." What are they based on now?
<< <i>Yet another interesting factoid...
Gold article from Bloomberg
Noteable quote: "People are afraid of the debasement of all the currencies." What are they based on now? >>
Unfortunately many do not see that gold can also be devalued. I do hope a situation leading to a gold devaluation never occurs.
I like Peter Schiff, but he really came off as a crack-pot on TV today.
Knowledge is the enemy of fear
He comes across the same way at dinner : ). I think I mentioned this before but I work with Peter's mother and he's an acquaintance.
He's on full tilt 24/7....................I do like him a lot but he even makes me wince at times. Check please.......MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>He's on full tilt 24/7.................... >>
Please explain.
"Full Tilt" has different meanings depending on where you are and whom you are speaking to...
The same way you see him on CNBC or on YouTube etc he is socially as well.......He is non-stop. He would fit in well on the PM forum : )
FYI- He didn't do so well in the Conn. Senate Republican Primary..........
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
And there it is right around 4-5 pm and hours after the Comex has closed.....$1203.
did the amount change inordinately from the last time (i'm, sure it's not static....but any spike one way or the other? or is it just CYA?)
CYA....It didn't change one ounce between the May 7th and May 14th 2007 reports. As a rule this published number doesn't seem to change.
roadrunner
Gold in a bubble? Even if it were, it would probably not fall below $500, the cost to produce one ounce, and when inflation starts to rear up, and it will, it will even cost more to produce. Fiat on the other hand can go to $0 which ironically the U.S Treasury is being propped up by the Chinese. Entertaining Golden Video
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