Thursday, December 6, 2012

ITS THE GOLD STUPID!

Let the nonsense play out. Who's selling gold and WHY? Is it the Fed trying to hold down the headline price of gold so it can play out the devaluation/print game to deleverage the hundreds of trillions of debt. Maybe its the Chinese trying to run down the paper price to accumulate more physical in their effort to take over as the new Reserve Currency. Or maybe its a combination of sovereigns aiding the Fed to drive down the paper price and accumulate more physical at the same time. A multitude of combinations may be at play but you cannot ever overlook objective data when it hits you right between the eyes and today strike price hit by the South Koreans tell you the game. Just as the price was receiving its daily beatdown the rumor spread that a large bullion order was being filled in London.


SEOUL, Dec 5 (Reuters) - South Korea's central bank said on
Wednesday it bought 14 tonnes of gold in November using its
foreign reserves in order to spread its portfolio risks, while
releasing data showing total reserves rose after talk of market
intervention.
    The Bank of Korea bought the gold for $780 million, the
fourth purchase in about one-and-a-half years and lifting the
proportion of gold in its total foreign reserves to 1.2 percent
from the previous 0.9 percent, it said in a statement.
    "Gold is a physical, safe asset and allows (the country) to
deal with changes in the international financial environment
more effectively," it said in a statement, without providing
more details on the purchase.
    The Bank of Korea now holds 84.4 tonnes of gold, valued at
$3.76 billion in terms of purchase prices, up nearly six-fold
from 14.4 tonnes before June last year.


Do not let the game get you down. That's the point. Remain patient and realize that time is  on your side. There is no alternative out there now but print. It was embarked upon several  years ago by the Fed and right now until stagflation becomes out of control (and we aren't even close) they WILL print. All the Central Banks know it too. This will put severe pressure  on their own countries as we export our inflation. The headline price of gold IS very        important in this game and they WILL try to maintain control of it as long as they can. gl


22 comments:

  1. I am so conflicted... buy gold, buy silver, pay down the mortgage, or hold cash?

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    Replies
    1. I see no conflict in your above statement only clairity in your thinking!

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  2. Also, what ratio of gold to silver should we own? I'm at about 4:1 gold to silver in value terms at current prices, which obviously means a tiny amount of gold and an unwieldy amount of silver.

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    1. tough answer......but own silver as a medium of exchange .....buy "junk silver" 90% percent. If you buy more than a couple thousand ounces then yes it is too bulky for most people to store especially in tight urban areas. Percentage wise I expect silver to out perform gold over time 5:1

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  3. Here's a bearish argument: http://news.goldseek.com/GoldSeek/1354827660.phpWith the FOMC meeting on Tues/Wed. next week, the 1672 does look to be a key hold. Comments would be welcomed.

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    1. There will be no austerity as long as the politicians can kick the can and Zimbabwe Ben can monetize their debt.

      If we go over the fiscal cliff, Boner will unilaterally surrender shortly thereafter, and there will be trivial tax increases on the rich and a giant can-kicking for everyone else. No entitlement reform, no spending cuts.

      If Boner and Barry come up with some huge, real "grand bargain," and Zimbabwe Ben stops printing, then it might be time to re-evaluate your gold position. Not going to happen.

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    2. The banker's republipukes like McGain and LIEberman and Graham etc are already stating their intentions......either way this goes......Ben will print

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    3. Boner & the Repukes. hehehehe what a game, if this show doesn't convince the peeps that this is all a scam nothing will! A while back I had postwd and held out some hope regarding the Tea Party candidates and shortly after Red had snapped me back into reality but just look what Boner did this passed week to those candidates who want to try and do the right thing...... He kicked them off their respective committee chairs, you know you got to play along to get along...... a$$ holes, this falls into Kli's post the other day about corrupt and stupid CEO's!

      Here's another example of what happens when you don't play along......

      http://www.climatedepot.com/a/18726/Fmr-Thatcher-advisor-Lord-Monckton-evicted-from-UN-climate-summit-after-challenging-global-warming--Escorted-from-the-hall-and-security-officers-stripped-him-of-his-UN-credentials

      Anyway I is my Christmas wish that they beat gold back down to 1600, 1550 would be sweeter and Silver under 27 before all hell breaks loose!

      That mp3 you posted from Dr Leeb really had merit...... I'll deal with the bulk issues :)

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  4. Thanks guys. It would be nice if the weekly closed positive tomorrow. Very positive.

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    1. also at some point in time fear will decouple gold meaningfully from the general equity market.

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    2. When "fear" decouples gold from the market, you will not be asking should I sell my gold. You will be asking how deep of a hole should I dig for it.

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  5. NKTR making a move again.

    Just to share, I have a particular passion for the 1964 Kennedy Half Dollar.

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  6. Great news!!! Lloyd Blankfein just bought a home in the Hamptons for 32 million. I am glad to see he is helping the housing market .

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    1. Since Obama and Bernanke are both owned by Goldman, I'd say it was a pretty modest purchase. :)

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  7. http://www.youtube.com/watch?v=bqL1ANq7VPM

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  8. http://stockcharts.com/h-sc/ui?s=BRD&p=D&yr=1&mn=0&dy=0&id=p75323733505&a=272797846&listNum=1

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  9. http://www.creditcards.com/credit-card-news/fiscal_cliff-calculator-1701.php



    paladin.....looks like I will take over a 40% hit on my 401k...10% plus the increase in tax in this year income in 2012

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  10. Paladin,

    I don't like that link........ Ouch!

    but look at the bright side, Lloyd will be swinging with the snobs out in the Hampton's..... That's good for the local economy right?

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  11. at this time I would like to say sorry to the site..

    when I posted the Fitts peice I could not understand why you all crossed over to another land.

    I got rid on my land and homes in 2006
    as to the 40% hit.....I want my $$$$ back...LOL


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    1. No worries paladin and the 401K hit may prove to be pure genius if this gets as bad as it appears

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  12. This ain't gonna help.....

    http://investmentwatchblog.com/over-two-million-people-will-stop-receiving-jobless-benefits-immediately-if-congress-doesnt-make-a-fiscal-cliff-deal/


    Paladin,
    Forgive my ignorance but which land crossing are you refurring too? re: Fitt's thought she was pretty much on target and surprised she was as open as she was considering she was a former player. Am I missing something? Sorry but sometimes I'm a tad slow on the up take....

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