Why gold may be dead money for a while.....
theump
Posts: 634 ✭✭
Congress may approve IMF gold sales.
I wrote a little more about this in my blog. See the address below.
I wrote a little more about this in my blog. See the address below.
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They own 400 million ounces of gold.
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
However, this time it's different. This is a large sale and will loom over the market until it's cleared up. Not one ounce of this gold will see the open market, it will prolly be sold to the one of the middle eastern CB's. But the threat will hand over the market. It is designed to do this.
Cool! I love it when someone temporarily bashes the price of an investment.
Once the martet figures out China will gladly buy it with their immense pile of dollars, the price will shoot right back up.
However, I will maintain it's dead money until the IMF sales are cleared up.
<< <i>Long term, so am I.
However, I will maintain it's dead money until the IMF sales are cleared up. >>
This is awesome for gold. The mere fact that the U.S. is backing it is a sign of desperation.
BTW, I would never consider gold "dead money". Dead money walking = the dollar.
I really don't see world-wide currency inflation going away any time soon.
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Dear Friends,
Today the CCI index made yet another ALL TIME HIGH as Minneapolis Wheat prices surged almost $4.00 a bushel to an unfathomable price of $23.00 / bushel. Palladium prices are up to $520; Soybeans hit another all time high of $14.55; Corn roared to nearly $5.40 a bushel; Cocoa notched a 24 year record – the list could go on and on and on.
The following article from Reuters details what is taking place in France as a result of these record-setting moves across the entire commodity complex but it should be noted, that France is just an example of what is taking place globally.
That is why the “noise” about IMF gold sales is just that for those who understand the game that is being played by the Western monetary authorities with the yellow metal. Wrap your mind around what is happening on the inflation front and then ask yourself the question – how much longer do they honestly think that by attempting to drive the price of gold lower they can actually convince the public that inflation is tame and under control? The simple truth is that gold has either broken into all time highs when measured in terms of every major global currency or it is threatening to do so. In order to reverse this inexorable trend higher in gold, these same haters of gold will have to work their alchemy on wheat, soybeans, rice, corn, sugar, cocoa, coffee, etc. In other words, they will have to wave their magic wands and drop food prices lower - from what hidden stockpile of agricultural goods do they intend to do so? Good luck fellas, you are going to need it!
Meanwhile, those rising economic powerhouse Eastern nations with burgeoning reserves consisting predominantly of less-than-desirable US Dollars will be more than happy to take all the gold that the hapless dolts at the IMF are willing to part with. With the staggering sums contained in their sovereign wealth funds, they can gobble up any and all gold that the IMF wants to get rid of and will welcome the opportunity to buy gold in size at a set price. Once again, the West is demonstrated to think in terms of a checker game while the East is playing chess!
Dear CIGAs,
Infinitely more important than the IMF repeatedly confirming a major bull market in gold (with much more to go) by their always flawed selling judgment, is today's announcement that a major South African mining company has made 6900 workers redundant due to the lack of electricity.
Note when information was first released regarding the electrical problems it was stated as a temporary issue.
This power situation is FAR from temporary. Even under the best of circumstances power demand in the Republic of South Africa equals power usage. Now with more than 40 generators off line, mostly due to lack of maintenance, the production deficit is significant.
I am told that the department overseeing power generation is totally FUBAR, which only suggests further problems.
Power sharing means power to the people, not the mines.
Already the mined gold supply is dropping remarkably. The decline in newly mined gold was already a factor. With one of the largest national gold producers in the world sharply reducing production prices gold will rise even more, still motivated by all other factors discussed here many times.
Respectfully yours,
Jim
congress needs to approve which it will and it has Bush's Admin. blessing. it was reported that the US has about 13mill ounces, but i do not know if that is total reserve of gold.
on a side note what is interesting is that platinum has stole some of golds thunder and "no one" (it's all gold and record plat talk) is talking about silver AND ALSO copper is poised for a comback with all this inflation growing (IMHO of course)
FED rate cut?
BTW Silver up 42 cents today and gold now up $3.60
Yepper, curious note: Bought some 10 oz. bars from APMEX last Thursday. Now, they are no longer available. I should have brought the mule instead of a little back pack. Silver has seen an amazing run so to all you silver lovers/hoarders that have had to bear the sorrowful looks from your co-PM gold/plat people for all these years, here's to you, a sunny tomorrow is knocking at your door. And as a side note: Gold can lay "dead" at $900 for as long as it wants, life is good.
mclark202@insightbb.com
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You either believe an economic storm is coming and you protect yourself, or you don't. Playing a little swing to clip pennies is stupid.
This whole IMF thing, that may or may not happen, lasted a day. With the official PPI up 1% today (12% annualized), you either are protecting yourself against inflation, or you're not. I wonder what actual, real world, PPI is. 2% or 24% annualized?
<< <i>To the OP of this thread, you just got steam rolled. Either you get it re gold, or you don't. Gettting it requires a lot of reading and going against the grain of conventional wisdom. I don't think your blog is worth while either. You need to re-think things. Good luck. >>
I more than get it when it comes to gold. Did I say the story was over? Did I say sell? No, I said it is dead money until the sales are over. Look at the action today, the dollar is tanking, oil and silver are both surging and gold is up $4. To me, that is capping action. (BTW, I made my first gold purchase around $375, and still have it. I expect gold to top around $1600.)
<< <i>He said he was SHORT
You either believe an economic storm is coming and you protect yourself, or you don't. Playing a little swing to clip pennies is stupid.
This whole IMF thing, that may or may not happen, lasted a day. With the official PPI up 1% today (12% annualized), you either are protecting yourself against inflation, or you're not. I wonder what actual, real world, PPI is. 2% or 24% annualized? >>
I am a professional trader, so the pennies add up. (I do not trade gold itself, just the stocks and the Gold ETF---I have never sold any of the physical I own). I was short yesterday, and covered when gold snapped back. And the IMF thing is more than one day. Like I said, the dollar is tanking, oils surging, and silver has made a 27yr high, and gold is up $4, not even getting back yesterday's losses.
And you never did retract your false statement that the IMF owns 400M oz of gold. That is wrong by a factor of 4.
So when your were "short" you put out statements like that. Now you are "long" and you expect gold to hit $1600. Does this forum have an ignore feature? Later, I'm done with you.
<< <i>Whatever. Just don't count me as a regular for your blog.
And you never did retract your false statement that the IMF owns 400M oz of gold. That is wrong by a factor of 4.
So when your were "short" you put out statements like that. Now you are "long" and you expect gold to hit $1600. Does this forum have an ignore feature? Later, I'm done with you. >>
Do you know the definition of dead money? It means not going meaningfully higher or lower. Did I ever say I expect gold crash? No. I have always been long gold. My blog is about gold and gold stocks. And, please stay away, you prolly don't understand most of it anyway as most of the words are more than one syllable.
I bet the FED wished the internet was gone right now so they could bluff a little better. Any IMF gold will never reach the public, it's only a statement put out to make an appearance that the world is going to be flooded with gold.
Good Luck you'll need it IMO
Only time will tell.
edited: and gold is now up almost $10.
I'd be real worried if I thought the governments of the world set up ETF's to pull large supplies of PM's in a convenient spot to take ownership with a few key strokes if things really got bad. Nah, they'd never nationalize PM's like they've done oil or would they? As soon as he said he doesn't handle physical metals that told me all I needed to know. JMO
I'll be staying above water with my "boat" thank you. The other guy can get in line with all the fools who have boat certificates. PM's and rare coins are a means to preserve wealth. If you make a few bucks and get some enjoyment maybe even learn a thing or two, even better.
<< <i>I don't think this will effect the market much at all. Times are different right now and there is a lot of movement to gold so there are already buyers for that amount of gold at todays prices.
Only time will tell.
edited: and gold is now up almost $10.
I agree with you 100%. The gold will never see the market as either China, Russia or one of the Middle Eastern Central Banks will buy it. It is the notion of the sale that will overhang the market.
Pure noise....no substance.
roadrunner
<< <i>
<< <i>I don't think this will effect the market much at all. Times are different right now and there is a lot of movement to gold so there are already buyers for that amount of gold at todays prices.
Only time will tell.
edited: and gold is now up almost $10.
I agree with you 100%. The gold will never see the market as either China, Russia or one of the Middle Eastern Central Banks will buy it. It is the notion of the sale that will overhang the market. >>
I actually spent the time to read your blog post, and skim a couple of others. I get where you are coming from... Don't entirely agree with it, but as my day job doesn't allow me to personally play with paper, it is probably moot that I do not.
What I do know is that I am long physical PM's as I do not currently need the greenbacks (nor wish to pay CGT on sales to capture the accrued gains). I cannot see doing anything but holding a good portion of the physical, at least until the next bubble (non-commodity) becomes apparent that can be ridden up. At that point I may sell for a little play money.
I do appreciate your blog, but I am somewhat saddened that you feel the need to use foul language - not that I am a prude (far from it), but I believe that it detracts from your credibility. Unless your target reader is a beer-swilling blue collar redneck. Not that there is anything wrong with beer-swilling blue collar rednecks...
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