It looks like gold has decoupled, from everything!
jmski52
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There's been some discussion about gold decoupling from silver in that gold is acting like money while silver reacts to the economy as an industrial commodity.
It also appears that gold is decoupled from the dollar as well and is not moving in an opposite direction as the dollar as it has traditionally done.
It really looks like gold is on it's own.
I think that gold's strange behavior is tied both to inflation and a flight to safety. Isn't it strange that the commentators who usually dis gold as a relic of the past are now talking about it as a flight to safety move?
It also appears that gold is decoupled from the dollar as well and is not moving in an opposite direction as the dollar as it has traditionally done.
It really looks like gold is on it's own.
I think that gold's strange behavior is tied both to inflation and a flight to safety. Isn't it strange that the commentators who usually dis gold as a relic of the past are now talking about it as a flight to safety move?
Q: Are You Printing Money? Bernanke: Not Literally
I knew it would happen.
I knew it would happen.
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I suppose it's possible. The best indicators would be a backwardation in the futures complex, well-publicized delivery problems with physical gold off the exchanges, and/or a default by a major ETF.
We've been led to believe that silver is more likely to decouple from paper than gold is likely to decouple from paper, but who really knows?
Watch the premiums on physical gold and silver - those are the best indicators of the reality at street level.
I knew it would happen.
Silver is not far behind....
Over $19 now, pop!
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<< <i>Can physical decouple from paper gold? >>
Since more than 99% of all gold traded day to day are simply paper contracts, this is a real possibility....but ONLY if COMEX were to stop their option of being able to take delivery on those contracts. I understand that with the ETFs, there is no option of taking posession of physical. However, with a 3 month COMEX contract, you can actually get your 100 oz at expiration.
Edited to add: But a true decouple would be a bad thing in my mind. How in the world would we be able to correctly value gold? Keeping up with real world premiums in that situation would be a nightmare for the average collector, and a field day for the bullion dealers!!!
<< <i>My thinking is the ETF's are what holds gold from true worth. That's why they were created to keep a "stock market" control on price. >>
Not entirely sure I agree with this. The ETFs have brought in gold buyers who would never have even considered gold as an "investment". The ETFs may actually even have a reverse effect than what you stated!
Dunno if I'm right...but I sure am blaming the Marketing Beast for many of our ills lately...
Many will deny this claim, and I have no real evidence....but my gut tells me the ETFs are simply smoke and mirrors. If the ETFs have even just 1/10th of the metal on deposit that they have so far sold, i'd be STUNNED!!! Again, others believe everything is on the square with them though. My contention is that nothing like an ETF would be set up without massive leveraging capability.....otherwise there wouldnt be enough money to be scammed.....errrr, I mean "earned".
Oh, you mean like "fractional reserve banking"? It never ceases to amaze me how much power is bestowed on the banking cartel, simply out of habit. Habit? Tradition? Necessity? Political Necessity? I forget. Why do banks get our money for free? Maybe I'm senile and simply can't remember.
I knew it would happen.
<< <i>My contention is that nothing like an ETF would be set up without massive leveraging capability.....otherwise there wouldnt be enough money to be scammed.....errrr, I mean "earned".
Oh, you mean like "fractional reserve banking"? It never ceases to amaze me how much power is bestowed on the banking cartel, simply out of habit. Habit? Tradition? Necessity? Political Necessity? I forget. Why do banks get our money for free? Maybe I'm senile and simply can't remember. >>
EXACTLY like our banking system. And how much faith do you have in that scam? Much like a casino, its all designed to get your money....thats it.
I think Jmski said he thinks it is de-coupled from the ETFs (Which I didn't see backed up with facts). Gold is not coupled to the dollar any more than the Euro is. So, you can't de-couple it.
BTW, Gold hitting new highs would make me consider lightening up, rather than loading up, especially if it were to climb to $1300 real quick.
Scroll up. That's not what jmski said.
I knew it would happen.
This "Credit" ideal is nothing more than a description of how able you are to go into debt (financial enslavement), all for the sole benefit of "those in power." I believe the evil present in this world constantly bombards people with images of a better house/car/hair/stomach/diamond ring/etc./etc./etc. with the goal to make one unhappy with what one has now...and tantalizingly offers a way in to the jet setter's club-regardless of your current means or ability to pay. And once you buy into the system, it's a devil of a time to get that hook out. Yes, credit properly used CAN be a positive tool; but little to no education is absorbed by most folks who use credit...it's always gotta have it now.
My personal experience has been disastrous up until about 2 years ago; my wife and I (despite our religious experience!) had kids and lived hi on the credit hog. We had to learn the hard way that you should owe no man money when at all possible, and that you should earn what you have (pay as you go), and be thankful for it (and not be envious for what you don't have!).
Our financial system DEPENDS on people's willingness to become indebted (enslaved) to financial entities. Perhaps there was a time when the noble ideal of those who could "lend a helping hand" to those who had not ruled financial transactions (hehe, maybe not!); but that ideal has been completely corrupted and now is take as much as you can, and give nothing back (thanks Jack Sparrow).
My family now has a new ideal: No credit for anything, even housing. If we can't pay cash, we don't need it. Perhaps a bit draconian, but it's more a rejection of the world's system (financial enslavement) than it is utilizing credit in a more proper form. Maybe in a few years, when we have saved at a minimum 50%, we'll buy a house again. But until then I sure will sleep better at night knowing I don't have 10's of thousands of $'s owed to corporations who most definitely DO NOT have my best interest at heart. FWIW
Tomohawk - nice post. The best thing the housing bust has done is to begin to flush out the massive debt families had built up.
However, the existence of debt probably helps productivity... Our society wouldn't be as productive as it is without "debt" to encourage people to work (earn money).
Government debt, on the other hand, is a tragedy - shame on them for getting into the mess they (we) are in. I think just about everyone agrees that the current path is "unsustainable", which means that there will be a "collapse" eventually. I wonder when it will be and what it will look like...
And drop that burden right into the responsible family's laps? How was that a good thing? I didnt refinance my home 3 times so I could buy a new car every 4 years, or take that "dream vacation" to Honolulu. Because of the idiots that DID, my home is now worth less money....my government is now deeper in the hole financially, and right around the corner is the head of this ugly beast....inflation that will begin to attack my standard of living. That "flushing of debt" has a very real cost Rick....I hope you see that.
Just like Greece is learning with lowering of debt come a lowering of the grand lifestyle.
(look on the bright side, if inflation comes back, your house might increase it's value too.)
I'm just sayin...
<< <i>Gecko, maybe I should say "the only good thing".
Just like Greece is learning with lowering of debt come a lowering of the grand lifestyle.
(look on the bright side, if inflation comes back, your hous might increase it's value too.)
I'm just sayin... >>
If inflation hits everything with an even blow, the relativety negates any "gains" on my home's value. However, so long as my salary at least attempts to keep up in a hyperinflationary scenario, there is a very bright spot....my fixed rate mortgage!