Gold Price - Where is it heading?

[GumbyLearner]

The budget deficit is small by anyone's standards. To argue otherwise is crazy talk. What its being spent on is another argument not of this thread, but you cant argue about its size.

Do you mean borrowing compared to other countries generating month-on-month current account surplus results?

 

[TabJockey]

I mean net debt situation, which is one of the most relevant yard sticks (MoM balance wtf?).

 

[tothemax6]

It's not tothemax6.

It's borrowing it like there is no tomorrow!

Yeah, I guess kind of the same thing in a way, since credit is used as a money substitute (bank deposits are 'money' etc). The crazy woman did promise to bring the budget back to surplus though, but we all know what her word is worth, so one can assume the deficit will double instead.

 

[GumbyLearner]

U.S. Economy Grinds To Halt As Nation Realizes Money Just A Symbolic, Mutually Shared Illusion

February 16, 2010 |
WASHINGTON””The U.S. economy ceased to function this week after unexpected existential remarks by Federal Reserve chairman Ben Bernanke shocked Americans into realizing that money is, in fact, just a meaningless and intangible social construct.

Calling it "basically no more than five rectangular strips of paper," Fed chairman Ben Bernanke illustrates how much "$200" is actually worth.

What began as a routine report before the Senate Finance Committee Tuesday ended with Bernanke passionately disavowing the entire concept of currency, and negating in an instant the very foundation of the world's largest economy.

"Though raising interest rates is unlikely at the moment, the Fed will of course act appropriately if we…if we…" said Bernanke, who then paused for a moment, looked down at his prepared statement, and shook his head in utter disbelief. "You know what? It doesn't matter. None of this””this so-called 'money'””really matters at all."

"It's just an illusion," a wide-eyed Bernanke added as he removed bills from his wallet and slowly spread them out before him. "Just look at it: Meaningless pieces of paper with numbers printed on them. Worthless."

According to witnesses, Finance Committee members sat in thunderstruck silence for several moments until Sen. Orrin Hatch (R-UT) finally shouted out, "Oh my God, he's right. It's all a mirage. All of it””the money, our whole economy””it's all a lie!"

READ MORE HERE

http://www.theonion.com/articles/us-economy-grinds-to-halt-as-nation-realizes-money,2912/

 

[GumbyLearner]

The Next Inside Job: A work in progress.
It certainly will not involve anybody winning an Oscar for best documentary.

http://www.zerohedge.com/article/cb...atility-launches-futures-and-options-gold-vix

CBOE To Add Another Layer Of Gold Price Volatility, Launches Futures And Options On Gold VIX

It's not quite a triple forward (or inverse) ETF on gold just yet, but it's a start. Capitalizing on the surge in volatility in the commodity space, which together with FX has become the go to arena for day traders seeking volatility, which has been completely eradicated from stocks courtesy of the Bernanke Put, the CBOE and CFE have "announced plans to launch futures and options on the CBOE Gold ETF Volatility Index (Ticker - GVZ). Pending regulatory approval, CBOE Futures Exchange (CFE) will begin trading GVZ futures on Friday, March 25, and CBOE will introduce GVZ options a few weeks later." The reason for this product to be pushed on investors is that after peaking near 25 in December, the ^GVZ has plunged to one year lows as gold has steadily remained just off its all time highs. So if the first volatility derivative isn't generating the much needed commission broker P&L, it is time to break out 2nd and further vol derivatives. We expect a triple or more-leveraged ETF on gold and silver to arrive shortly, then followed by an ETF which tracks the theta in the first ETF , and so forth, until the entire market is dominated by "synthetic CDO-like" derivatives and nobody cares about the actual underlying, just so traders have something to keep them occupied. After all diversion, is half the battle.

 

[Sean K]

U.S. Economy Grinds To Halt As Nation Realizes Money Just A Symbolic, Mutually Shared Illusion

February 16, 2010 |
WASHINGTON””The U.S. economy ceased to function this week after unexpected existential remarks by Federal Reserve chairman Ben Bernanke shocked Americans into realizing that money is, in fact, just a meaningless and intangible social construct]

What's the point Gumby?

That was a joke right?

 

[GumbyLearner]

What's the point Gumby?

That was a joke right?

The point is that the current policies adopted by central banks around the world mean that the price of Gold in US dollars/British Pounds are bound to only increase in 2011.



As you can see from the latest February 2011 US Federal Reserve chart, the monetary base has increased even further than it had in 2010. Therefore, I'm of the opinion that the Gold price and other PMs will continue the bull run this year.
This is probably contrary to the opinions of many others.

DYOR

 

[Sean K]

The point is that the current policies adopted by central banks around the world mean that the price of Gold in US dollars/British Pounds are bound to only increase in 2011.

I'm not sure it says that at all.

So, you think that site is worth reading and full of informed and well researched information?

 

[GumbyLearner]

I'm not sure it says that at all.

So, you think that site is worth reading and full of informed and well researched information?

Well no not exactly. But I thought the writer had drawn a great analogy with the current position being maintained by a Central Banker even if he did so unwittingly.

I apologize if you are unable to see the lighter side of it.

 

[Agentm]

thanks for that kennas and gumby

been splitting my sides here reading this last part of the thread

irony is always gold..

 

[mr. jeff]

Do you think that the money printing that Japan has done will have an inflationary effect? Could this be further fuel for the PGM fire?

 

[explod]

Do you think that the money printing that Japan has done will have an inflationary effect? Could this be further fuel for the PGM fire?

View attachment 41913

With very little productivity it is a lot of contined dilution.

A bit of a no brainer really.

But I am just the mug stockpiling silver and continuing to expand my vegie patch. My neibour now has 20 chooks who love my spare green leaf and he loves my tomatoes at the moment. In the shops $6+ a kilo.

But I must submit that gold has consolidated very well the last six months. The last consolidation was in the US$1000 area 08/09. Back further 06/07 in the US%700 area.

So the next breakout should see US$1800

We shall see.

 

[GumbyLearner]

With very little productivity it is a lot of contined dilution.

A bit of a no brainer really.

But I am just the mug stockpiling silver and continuing to expand my vegie patch. My neibour now has 20 chooks who love my spare green leaf and he loves my tomatoes at the moment. In the shops $6+ a kilo.

But I must submit that gold has consolidated very well the last six months. The last consolidation was in the US$1000 area 08/09. Back further 06/07 in the US%700 area.

So the next breakout should see US$1800

We shall see.

Great summary explod

 

[GumbyLearner]

 

[GumbyLearner]

from 50 years ago........buy physical gold bullion

 

[GumbyLearner]

Protect YOURSELF!

 

[GumbyLearner]

 

[nukz]

 

[Logique]

...My neighbour now has 20 chooks who love my spare green leaf...But I must submit that gold has consolidated very well the last six months. The last consolidation was in the US$1000 area 08/09. Back further 06/07 in the US%700 area...

G'day Explod, checking at the US Dollar index this morning, it's looking over the edge of a cliff (of size unknown), being now down at previous Nov 2010 support levels, and gold and silver moved up last night.

I noticed GG's chooks are working to manage the daylight saving time changeover, I hope your neighbour's chooks have some systems in place.

Youtube video posters - great over on the music thread, I'm just not sure I want to see videos populating the gold price thread, which as we know is the premiere thread on ASF.

 

[explod]

G'day Explod, checking at the US Dollar index this morning, it's looking over the edge of a cliff (of size unknown), being now down at previous Nov 2010 support levels, and gold and silver moved up last night.

I noticed GG's chooks are working to manage the daylight saving time changeover, I hope your neighbour's chooks have some systems in place.

Youtube video posters - great over on the music thread, I'm just not sure I want to see videos populating the gold price thread, which as we know is the premiere thread on ASF.

Good point there Logique and with your great contributions we doo keep up a good show.

But alas we do have a sad world and any cheer we can squeeze in is to be welcomed. Go Gumby ole pal.

And my good dog Max keeps a wary eye on the chooks and I think they sense that even if the sun changes to the middle of the night they may have to perform. I do know the farmers have a lot of trouble with the cows in the daylight saving department but as it looks like they are watering some of the milk down things may sort themselves out.

Hard to see the US$ holding up with the need for more q/e, so yes a watershed week could be coming up. I think the bond market will be the killer of all soon, But JMHO.