As the central banks cut rates at the short end to try to free up supposedly illiquid banks,
Yes since the POG was 850. I had a laugh.Just ask GS who has been shorting the POG.
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"
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.
, 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
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.
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!
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.
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.
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