This makes much more sense. I was looking at it totally as an investment.Quote:
Originally Posted by Dave_L
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This makes much more sense. I was looking at it totally as an investment.Quote:
Originally Posted by Dave_L
Thank you.Quote:
Originally Posted by Dave_L
Really? After 10 pages?Quote:
Originally Posted by encorehunter
DaveL, you should teach calculus!
I had the same thought... *shrug*Quote:
Originally Posted by <MADDOG>
I should really look into buying PM. I currently have 1 oz of silver that was given to me as a graduation gift and promptly thrown into a shoe box.
An example of what could possibly happen to the USD as the world currency: http://kingworldnews.com/kingworldne...or_The_US.html
Quote:
On the heels of Washington desperately moving to buy more time to deal with its financial crisis, today Canadian legend John Ing warned King World News that China is preparing to unleash the “worst nightmare” for the United States. Ing, who has been in the business for 43 years, also stated that the Chinese are about to make a “major move” which will enable the timetable for this “nightmare” to be greatly accelerated.
Ing: “Washington kicking the can down the road doesn’t solve the debt problem. Apparently this process has been so fun they are going to do it all over again, and the markets are getting pretty jaundiced about it. But standing back, the fact is that the US debt is still escalating....
“The US dollar remains weak at just over 80. It did not rally on today’s news. Meanwhile, in the gold market we have an option expiry on October 28th, and we know what usually happens ahead of those, especially given the dramatic drawdown in inventories on the Comex. But my expectation is that we have seen the lows in both gold and silver. I still feel quite confident of that.”
Eric King: “Amazingly, the last time we spoke you predicted that gold could have a $25 dip at the most, and then gold would bounce back, and that’s exactly what we’ve seen so far. What do you expect from here?”
Ing: “There is the need for a dramatic rebound in the price of gold because we saw the 2,000+ contracts which were dumped on the market late last week. My expectation is now that the $1,330 level represents a key area. If gold breaks through that area on the rebound, that will solidify the fact that we have seen the bottom, and people will start coming into gold on the long side once again.
People forget, but we still have the European problems. Their debt is also escalating. So, we will see more recurring problems with debt financing in the eurozone. For example, Spain managed to get off a 30-year note, but Italy and Greece still have some funds to raise.
Then, on this side of the Atlantic you have the push on Yellen to give some sort of indication as to here plans for quantitative easing. But it certainly appears that QE will go into 2014 at any rate. So, the markets, which were all set up for the ‘tapering,’ will now have to readjust, and this means a push upward for the gold market.”
Ing added: “Of interest are the developments in China and India. China and India will take up all of the Western world’s gold production this year. Now, the Chinese have not been idle while the debt discussions have been unfolding. As an example, the Chinese have recently signed a deal in the UK that allows for the renminbi to be converted into pounds. This is something like 24 countries now which are now on board with China’s currency. The bottom line is the Chinese are slowly and quietly making the renminbi convertible.
The next major move for the Chinese is they will allow for their big state-owned companies to buy other companies. That’s a good way for them to unload their foreign exchange reserves, particularly dollar reserves. When that happens, Eric, we will see the first competitive currency against the US dollar, which up to now has held the preeminent position as the world’s reserve currency since 1944.
This process by the Chinese to unseat the US dollar as the supreme currency has recently been accelerated because of concerns about the recent chaos in Washington. You also have Russia now pushing for an alternative reserve currency. So this international movement for an alternative reserve currency is now unfolding in a major way, and it will have incredibly dramatic ramifications for the United States in the future.
But all of this is positive for gold because we are seeing an enormous pickup not only in Chinese consumption, and in bar premiums, but the same thing is happening in India as we now move into the seasonally high period for Indian consumption.
I would just add that 15 years ago the Chinese renminbi was not even on the radar screen of foreign currency traders. Today it is one of the top ten currencies traded in the world, and the Chinese are quickly setting the stage for the renminbi to become the United States’ worst nightmare as they aggressively position their currency to eventually unseat the dollar from its position of global supremacy.”
Where are the shoes??Quote:
Originally Posted by Irving
watch all 4 series on the history of money it's pretty good.
And more on the long view of gold, from Andrew Maguire: http://kingworldnews.com/kingworldne...ollapsing.html
Quote:
On the heels of an explosive mid-week surge in the price of gold and continued weakness in the US dollar, today the man who predicted the massive spike mid-week spike in gold ahead of time warned King World News the West is now collapsing. London metals trader Andrew Maguire also spoke with KWN about what people should expect to see next in the gold market. Below is what Maguire had to say in this tremendous and timely interview.
Eric King: “Andrew, you made a fantastic call at the end of last week. You said that gold absolutely could not stay below $1,300 for more than a few days. We saw the bears holding the price below that key level Monday through Wednesday, but they capitulated on Thursday as gold soared solidly back above the $1,300 price level.”
Maguire: “Eric, last week we talked about the Fed being cornered. The reason we saw the price of gold being held below $1,300 is because the Fed was literally being forced to react to the price rise of gold against the US dollar. This had to do with the government shutdown, and it was forcing their hand -- to give the appearance of stability as the dollar was declining and under tremendous pressure.
So, the Fed moved in to short gold and buy the dollar in the FX markets. Now, the reason I told you we wouldn’t be able to hold below sub-$1,300 for more than 3 days is because of ‘spot market indexing.’ While these synthetic paper markets for gold are putting pressure on the price of gold, the underlying physical market is on fire....
“Lat Friday as we were headed into the lows I reported a major sovereign ‘spot purchase’ to KWN. Remember, we said it was about 90 tons being accumulated, some of it at $1,270. You and I were literally speaking on the phone as gold was making the lows. But that sovereign order had been patiently waiting for weeks and it finally filled.
These trades fly under the radar sometimes because they are initially just a foreign exchange trade, and it’s just part of a major paper gold shuffle in London every day. But it’s only when these paper gold buyers have the audacity to turn up at a PM fix in London and demand the physical gold that alarm bells are triggered.
The bullion banks are then forced to buy at market to fill these orders, and there is no bullion bank I know that can turn up that kind of supply overnight. That’s why we saw 1 - 3 month GOFO rates spike negative once again mid-week. As these orders stood for delivery as it actually forced gold into backwardation again. And it’s going to happen each and every time the gold price is now pushed lower.
So, this is an underpinning that paper traders simply don’t understand. We are actually talking about the cash value of gold vs futures being at a premium. China is going to continue to milk this discount window. They are continuing to exchange dollar reserves for gold, without directly disrupting Treasury and gold prices. But we are now very, very close to the point where China is the gold market.
The Chinese, through Shanghai, have already absorbed the bulk of all global mine production, if not all of it in its entirety. In July alone, Shanghai gold imports exceeded all of the imports for 2012. We also know that official Shanghai gold deliveries have accelerated since that time.
Last week I reported the September numbers to you and it was over 225 tons of gold being delivered. But as of today, for the 9 delivery days of October, we already have over 101 tons of gold delivered. This is an incredibly powerful and diverse underpinning for the price of gold.
Al of this is being reflected by the premiums, recorded deliveries, and what is paid daily above synthetically diluted gold prices. The Chinese don’t care what Goldman Sachs or any other brokerage shills says about gold. They are focusing on building their savings, real wealth, according to age-old ideas, and with a state-sanctioned 20% savings rate invested in gold.”
Maguire added: “All of this paper manipulation has just been a short-term desperation move on the part of the West. Obviously we’ve seen interventions in the foreign exchange gold market, which is complimented by activity on the Comex. And basically what is being done by the Fed is a defense of the US dollar.
It simply results in physical gold flowing out from West to East at an enormous rate. Unfortunately, that is the self-destructive move that continues to take place as the West destroys itself. And when you look at China, who thinks in 500-year or 1,000-year tim e frames vs the West which thinks in one-week and one-day time frames, crisis-to-crisis terms, no wonder the West is collapsing.”
From: http://ca.news.yahoo.com/u-averts-de...-business.html
And analysts say China, whose Communist leaders are due to hold a key policy meeting next month, may step up a push for global acceptance of its currency, the yuan or renminbi, as an alternative to the U.S. dollar in international trade.
"They might actually consider accelerating the process," said Vincent Chan, head of equity research at Credit Suisse in Hong Kong. "You strengthen the case of making the renminbi a genuine international currency, because the Americans are unreliable."