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Wow, gold above $470/oz
Steve27
Posts: 13,275 ✭✭✭
I guess there's a large number of pepole who believe inflation is coming.
"It's far easier to fight for principles, than to live up to them." Adlai Stevenson
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<< <i>I think there is another reason. >>
O.K. I'll bite. What might the other reason be?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>O.K. I'll bite. What might the other reason be? >>
Please, no biting in the coin forum.
It's bad enough in here as it is.
(China may let the Yuan float and they are currently way, way short in gold reserves relative to foreign cash on hand [kind of a foriegn money M1 measure] - as are many Asian nations. The figuring is that the Yuan is 5 - 10% over valued. If they choose to arbitrage their entire risk with paper, the current gold rally could become a non-event very quickly. That is an unlikely scenario, imho, as the Yuan would be less stable against the Yen {their biggest problem in the Asian markets]. My money - literally - is on China adding to their gold position to cover the expected valuation change.
Also, most central banks have changed their hedging positions are are NOT selling into this rising market.)
>> China may let the Yuan float
China did start floating yuan 3 or 4 months back, although in a tight range.
They are diversifying out of the dollar and into gold.
Silver also busting out at $7.50.
And it has defied all odds of chance (ie. more than likely it was manipulation by the usual suspects). But this is the first time in years where there has been a strong push back (buying on the dips) by some major players. It just may be a new ball game without the usual cartel and COT tricks of the past 4 years.
The selling overseas has a larger % of physical contracts changing hands compared to NY. Hence it's easier to put a scare into the NY market by a brief flurry of shorting "paper." Basically this is bluffing and it has worked very well up until the last 2 weeks!
roadrunner
and pre 1933 usa federal gold coinage even better then bullion gold