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That reminds me, Soros put on a long gold, short oil spread trade in July at $138 just after the oil peak. Just looking at UF's chart, that would have still worked out pretty well even through all this.
I get this feeling the US dollar is being manipulated (hence the U.S imports alot of its goods) which in turn can affect the price of gold....... Thats the only reason i can think of for gold to drop this much in such a short term (and i dont believe selling gold to cover margin calls is the answer).
ear Jeroen,
The most difficult concept for the professional public to understand is that hyperinflation can exist along with a totally disastrous economic environment. Hyperinflation falls flat because it fails to take into account the infinite velocity of money that a Weimar creates during a depression economy as a product of throwing monetary discipline at the wall.
When you pay people three times a day to keep up with prices, consider the mammoth daily increases in all private and business transactions in terms of the total number of currency units. What happens to the velocity of money? The turnover increases with the rate of inflation until both are hyper creating an unstoppable spiral.
Few understand that monetary inflation proceeds and sustains price inflation. For this reason world business in a rat hole with credit still jammed up will lead to hyperinflation in 2009-2010.
If world business is perceived to have bottomed and credit flows are re-established, this will bring hyperinflation in 24 hours.
We have heard both Russia and China chime in today on their clear perception of the pre-election falsely valued US dollar and government interference in not only gold but energy and food.
The PPT is working overtime on those index spreads but they only have a short time (13 to 88 days) before they have to throw it into what is most likely inexperienced hands.
Yes, a planetary Weimar is on the menu. Russia, the Middle East and China may just be the top survivors. Africa might just come into its own in such a scenario due to the amount of raw material and gold resources they have.
Respectfully,
Jim
Not sure if it matters what turkey is in charge of the financial largesse purse strings as these are not normal cycles or times.
It's all relative, you just have to know which store of wealth you are comparing to? Perhaps preservation of capital?
You left some important choices out there...
Inflation, deflation, people are missing the point here. If that much capital has been destroyed, it's really irrelevant what the economic conditions are, because if no-one can buy, the price isn't going to do anything.
I forgot to mention the reason I think we'll get a stumpy revised wave 5 is because what was going to be wave 5 exceeded my estimate and made my original wave 3 the shortest, cos the USDX has gapped up from 84.5 to 85... but it should fall back sharply soon and turn the POG around (I hope).
Quite a nice rebound.
Covered and looking long.
Quite a nice rebound.
Covered and looking long.
The association says it found wealthy investors paying $US25 an ounce over the spot price to get to the head of the queue. . [/I]
And the rest, 2 weeks ago you couldnt get it for less than $100 p/o over the spot. I agree thow that theres to much paper going around
We are, of course, witnessing the unravelling of the entire post-1973 fiat credit money structure. Governments and central banks are pushing on a string with unimaginable vehemence, as witness the literally $US TRILLIONS they have force-fed into the system and markets. But not only is this not doing any good, it is working entirely contrary to their intended purpose. The money is being used to retire debt. And, since the entire system is "underpinned" by debt, the entire system is having its foundations pulled out from under it much faster than the "authorities" can pump it up.
What we are waiting for now is very simple. At some point, the present upside rampage of the US Dollar will come to an end as the demand for it to go on deleveraging dwindles and then dies. At that point, the present hugely artificial demand for US Dollars will literally vanish into thin air, leaving the Dollar suspended in mid air without a parachute. As "Bugs Bunny" once said, after landing like a snowflake after plummeting from miles high without a parachute - "you can do anything in a cartoon!"
So you can, but this is real life.
Makes you wonder why the mints are so keen to take all that bad paper in exchange for their good gold.There's so much bad paper around
I believe 400 jobs are getting chopped at Telfer due to falling gold price
Makes you wonder why the mints are so keen to take all that bad paper in exchange for their good gold.
GP
Many pundits have been saying for some years that they are taking paper for gold that does not exist. When delivery time comes round they keep updating the paper contracts.
These pundits, so called doom and gloom sayers have been proven correct on the financial mess, why not on their take of gold contracts.
It is another reason why many of us keep harping that the only safe investment is to hold physical gold in your own safe keeping.
i suggest you read this article which explains the US dollar and the gold price (very interesting indeed and agree's with price manipulation)
http://www.financialsense.com/fsu/editorials/willie/2008/1023.html
Falling??? Better check your sources for both rumours?
NEWCREST Mining plans to slash 400 jobs from its huge Telfer gold mine in Western Australia by the end of the year in an effort to cut costs.
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