Gold Price - Where is it heading?

[refined silver]

As the central banks cut rates at the short end to try to free up supposedly illiquid banks,

The problem is not ILLIQUID banks, but INSOLVENT banks.

The Fed solution is said to be aimed at liquidity, but really is just monetizing bankrupcy. The resulting tsunami of inflation will catapult gold way higher.

 

[CamKawa]

Just ask GS who has been shorting the POG.

Yes since the POG was 850. I had a laugh.

 

[explod]

Absolutely!

And as I stated a while back, I dont see too much more room for IR hikes. Time lags, recent rises, slowing growth, cost-push inflation. Funny its just now that "economists" in the news are starting to question further rate rises.

RBA would have to be MENTAL to rise rates much more. As I also said, I will have a talk to a mate who works for the company which gives them advice on underlying trends and see his sentiments on where things are heading, in relation to IRs.

Interest Rate Parity (IRP) is the name of the game at the moment!

I think you may get a surprise. The supply of money with value is becoming the problem. (even GWB'S HEDGE fund is in trouble and he's with God) To give money back its value interest rates will, and have to rise in the longer term..

Its a long time ago but the times of 20% interest rates will be back sooner than people realise. Why, to repeat, there is no value in money. We dont' bend our back and work any more, even as share traders we are playing monopoly. No asset in games, only in actual work.

"CASH IS TRASH"

 

[Uncle Festivus]

I think you may get a surprise. The supply of money with value is becoming the problem. (even GWB'S HEDGE fund is in trouble and he's with God) To give money back its value interest rates will, and have to rise in the longer term..

Its a long time ago but the times of 20% interest rates will be back sooner than people realise. Why, to repeat, there is no value in money. We dont' bend our back and work any more, even as share traders we are playing monopoly. No asset in games, only in actual work.

"CASH IS TRASH"

Then it all depends on which type of cash is trash, ie if you have some folding stuff that's actually been printed in your palm = not so bad. But, if you have IOU nothings in a bank account and all of a sudden everybody wants real money then = good luck.

Bank rates look like continuing to outpace Reserve rates into 2009 going by what Brian Johnson said. But 20% in this climate is instant demand destruction for many businesses ie business stress will show up at lower rates than this, possibly an exponential type slide into recession. There are signs of credit rationing going on in Oz.

If you keep an eye on the AUD for these signs we will have our 'dream' pairs trade short AUD, long gold.

PS gold having another go at $1k & AUD coming off a bit right now

 

[barrett]

Congratulations everyone :band:bier::xmastree:jump:

 

[chops_a_must]

WOOOOOOOO!

We're printing money!

Look at that gold go!!!!

Soon I'll be going shopping with Perth Mint coins... and melting down shopping trolleys in my spare time.

 

[barrett]

WOOOOOOOO!

We're printing money!

Look at that gold go!!!!

Soon I'll be going shopping with Perth Mint coins... and melting down shopping trolleys in my spare time.

rofl yeah and rounding up piles of banknotes.. better rethink those $A/$US parity arguments, greenbacks burn hotter..

 

[barrett]

interesting major resistance point just overhead on the daily... the bizarrely low volume so far on this $1K breakout makes me think we won't have the strength to smash through the resistance tonight, but it would be very bullish.. 1003.58 the critical level for tonight's close, on this chart..

 

[explod]

In current trade the Aussie dollar is down 1%. The old Aussie has had a strong run of late against the $US but the interesting aspect is that the move against other currencies has reversed and this has been lifting our local gold price; now $1064

And the big one, caused a great deal of reaction yesterday in the press so will probably be kept below 1000 I think behind the scenes the PPP and general US establishment will accumulated and go long, this will give it a strong break up but when all eyes are apon there will be an enormous correction, for the benefit of the new audience.

Will be interesting to see what pans out.

The birthday cake tastes nice though, thanks to the Barret Clan for that.

 

[Kauri]

, this will give it a strong break up but when all eyes are apon there will be an enormous correction, for the benefit of the new audience.



The birthday cake tastes nice though, thanks to the Barret Clan for that.

so... long or short from here???... @$US1000 as posting... (keeping in mind I trade 1 and 5 min trends as well as my longer portfolio... )
Cheers
............KKKKKKKaa

 

[explod]

so... long or short from here???... @$US1000 as posting... (keeping in mind I trade 1 and 5 min trends as well as my longer portfolio... )
Cheers
............KKKKKKKaa

Down Kauri into the close, but vibrating bad I think. Have been wrong but PPP need some thinking time to sift sentiment befoe the next large move.

 

[explod]

This one from James is a good surmation:

The Other Reason to Own Gold

Everybody knows that gold is an inflation hedge. That’s why most people buy it. They know from experience that the purchasing power of all national currencies is being constantly eroded by inflation. But they also know that their purchasing power is preserved by owning gold.

For example, the price of crude oil has been rising for decades when viewed in terms of dollars or any national currency. But when the cost of a barrel of crude oil is viewed in terms of ounces or grams of gold, its price is essentially unchanged. In other words, the dollar price of crude oil and the dollar price of gold are both rising more or less lockstep.By owning gold instead of US dollars, you can today purchase basically the same amount of crude oil as at any other time since 1945.

In other words, gold is an inflation hedge. But that is only one of gold’s advantages. There is also another valuable reason to own gold, and significantly, this other reason is becoming increasingly important.

Gold is also a catastrophe hedge. Gold enables us to protect our wealth from a financial meltdown because it does not have counterparty risk.

I wrote about counterparty risk last August in an article entitled “As Financial Tremors Reverberate, Focus on Counterparty Risk”. I recommend re-reading that article for a refresher course on the nature of counterparty risk and how it arises. It is I think important to recognize that the financial tremors are indeed reverberating, and are doing so with growing ferocity. http://www.kitco.com/ind/Turk/turk_aug102007.html

The monetary and financial system is rapidly spinning out of control. We are witnessing the unwinding of decades of reckless credit expansion. Borrowers – corporations, hedge funds, homeowners, etc. – who no longer have the financial capacity to repay their debts are defaulting on their obligations in increasing numbers. In that environment, the safety of one’s wealth becomes paramount, to protect against the catastrophe of default in all types of financial assets.

In short, promises are being broken, so in an environment in which financial assets are becoming increasingly doubted, one needs to own tangible assets. Own things instead of promises, and there is only one money that is not dependent upon someone’s promise and that’s gold. So buy gold; it is the best catastrophe hedge. But also buy gold because it remains the best inflation hedge.

For example, gold was $670 on August 10, 2007 when my article on counterparty risk was published, and crude oil was $71.50 per barrel. When viewed in terms of gold, crude oil was 3.3 goldgrams per barrel.

Gold today is $992, and crude oil is $109. So both prices have risen considerably in dollar terms, but the price of crude oil today is 3.4 goldgrams per barrel, essentially unchanged from last August. Gold performed as expected, being a nearly perfect hedge against inflation.

So when considering all of its advantages, gold provides what everyone wants – peace of mind knowing that the portion of your wealth placed in gold is safe.

by James Turk

*****

James Turk is the Founder & Chairman of GoldMoney.com http://goldmoney.com/. He is the co-author of The Coming Collapse of the Dollar , which has been updated for a newly released paperback version, now entitled The Collapse of the Dollar www.dollarcollapse.com.

 

[MRC & Co]

Soared to $1007!!! Too bad about the close! Hope it at least closes over $1000.

Surprised about the inflation release.

Have a good weekend all!

 

[Temjin]

This one from James is a good surmation:

yadda yadda

by James Turk

Everyone need to be aware of that in the event of a financial meltdown, you NEED to own ALLOCATED or PHYSICAL gold in order to provide you with a REAL hedge against it.

That's why I am still not comfortable with owning ETCs in GLD, SLV because in theory, they can also default at any time and no one can do a thing about it. It's all unallocated gold/silver and no one has really audited their physical warehouse yet.


Yes, HAPPY ...BIRTHDAY GOLD TO $1000/oz!! WOOT!

 

[explod]

Everyone need to be aware of that in the event of a financial meltdown, you NEED to own ALLOCATED or PHYSICAL gold in order to provide you with a REAL hedge against it.

That's why I am still not comfortable with owning ETCs in GLD, SLV because in theory, they can also default at any time and no one can do a thing about it. It's all unallocated gold/silver and no one has really audited their physical warehouse yet.


Yes, HAPPY ...BIRTHDAY GOLD TO $1000/oz!! WOOT!

Absolutely, could not agree more. Picked that up from my early mentors on the gold outlook. Only physical for me, except for my trading portfolio in Assie gold stocks. The time of trust has gone and it will be everyone for himself.

In fact there is continuing conjecture about the gold in (or is it) Fort Knox. Where did that whacker Gordon Brown get the idea to sell of the British Bullion for a song.

 

[imagineer]

Ethiopia Officials Still Investigating Fake Gold In National Bank's Vaults

The mystery of gold gilded steel bars and Ethiopia's national bank is still unraveling. Bank officials were ordered by parliament's budget and finance committee to inspect all the gold in the national bank's vaults after two separate deposits of gold bars were found to be fake. The initial problem was uncovered when the bank sent a consignment of 300 kilograms, 10,582.1886 ounces of presumably 999.9 percent pure gold to South Africa. That nation tested them and found them to be gold gilded steel counterfeits. The price of gold reached a record high of $1,000 per ounce on Thursday.

And if I remeber right England found their gold was breaking up a few months ago.
Still cheap as chips at $1500
Keep the faith
Neil

 

[Temjin]

Absolutely, could not agree more. Picked that up from my early mentors on the gold outlook. Only physical for me, except for my trading portfolio in Assie gold stocks. The time of trust has gone and it will be everyone for himself.

In fact there is continuing conjecture about the gold in (or is it) Fort Knox. Where did that whacker Gordon Brown get the idea to sell of the British Bullion for a song.

Yep, the GATA has been trying to get an independent audit on the gold reserve. Unfortunately, I doubt they will ever get to it as the US government is too corrupted. I personally doubt there is as much physical gold as they claim there is in the fort right now.

I'm looking to add more physical gold and silver, especially silver too.

 

[tigerboi]

Here is the twiggs chart from a few days ago,ive been following his stuff & he likes it for alot more & why wouldnt you with the yank dollar looking like dunny paper as every day passes,the printing presses must be running hot..

 

[explod]

A bit off topic but I think u can realte.

Found a second hand book for $2 this morning at the Frankston market. "The Money Masters" by John Train, 1980 Fantastic find for me.

One trader Stanley Kroll was buying and selling silver on the Chicago. He was very successful. But the thing that struck me with he and others of his time that, when they believed in something they put absolutely everything into it. We talk diversification, diversification. Maybe concentrate on one thing at a time and go for everything.

Gold to me is "it" at the moment but I may narrow down to the best among that too. Another in the book T. Rowe Price says buy the strong emerging growth stocks. Back in 1970"s he managed a portfolio of 22 billion. Get your head around that for those times. I will keep you updated as I work my way through this. Perhaps a thread on it. A younger Buffet has a section also.

 

[Temjin]

A bit off topic but I think u can realte.

Found a second hand book for $2 this morning at the Frankston market. "The Money Masters" by John Train, 1980 Fantastic find for me.

One trader Stanley Kroll was buying and selling silver on the Chicago. He was very successful. But the thing that struck me with he and others of his time that, when they believed in something they put absolutely everything into it. We talk diversification, diversification. Maybe concentrate on one thing at a time and go for everything.

Gold to me is "it" at the moment but I may narrow down to the best among that too. Another in the book T. Rowe Price says buy the strong emerging growth stocks. Back in 1970"s he managed a portfolio of 22 billion. Get your head around that for those times. I will keep you updated as I work my way through this. Perhaps a thread on it. A younger Buffet has a section also.

Another off topic too, but it's obviously related to one of Buffet's quote,

"Wide diversification is only required when investors do not understand what they are doing."