gold getting killed!!!!!!!!!!!

[coolhand]

Re: gold getting killed!!!!!!!!!!!

Do central banks need to hold silver for it to do well though? In the 70's bull run, central banks were net sellers of gold and it didn't stop it from rising because people wanted it. This shows me that public perception is more important to pushing these prices in the end. I mean, I don't even remember the last time that silver and gold moved in a different direction. If gold goes to $5000 for example, its hard for me to see silver not going to $100

No, they don't need to. But I think what is happening here is different than the 1970s. Back then, we entered an incipient hyperinflation of the USD that was stopped by Volcker taking rates to 15%...that ain't gonna happen this time...so I think this time we get a 1971-like "Sunday night surprise" where the USD loses reserve currency status, replaced with the currency the countries doing the majority of physical trade, the BRICS & OPEC, have been buying: Gold.

Whether you start tinkering with the amount of foreign-held US Treasuries divided by US gold holdings, or some sort of repricing of net global trade in gold oz's, you quickly realize that gold is likely going to a big #, 5 figures to start.

In fact, I have seen no western media report on this, but the ECB's exchange of a low rate, $9B loan secured by 10 tons of Cypriot gold (reported as a $520m sale at current prices) is by monetary theory standards a sale of 10 tons of gold for $9B = $28,125/oz.

Why do i say that? What is the difference b/t $9B in cash & $9B in loans at say, the 5-yr UST rate of 0.75%? Very, very little. IMO, Cyprus sold their gold for $28,125/oz & bailed in their banks...I find it fascinating that 2 days after this deal was announced, gold suffered its worst drop in 30 yrs, calculated at 7.5 sigma...in other words, nearly impossible unless it wasn't random...

[Prazak]

Re: gold getting killed!!!!!!!!!!!

The popular explanation is that GLD sells physical to arb a paper/physical trade to keep pricing in line with the COMEX. That is one explanation that is the official one. This one is the "unofficial" explanation...I'll let you decide which explanation holds more water: http://fofoa.blogspot.com/2011/01/wh...ining-gld.html

That is disconcerting to read. Makes me wonder whether those of us holding shares of GTU and CEF and thinking we're much better off than holders of GLD are wrong. Better go read those prospectuses again more carefully.

[verdo]

Re: gold getting killed!!!!!!!!!!!

That is disconcerting to read. Makes me wonder whether those of us holding shares of GTU and CEF and thinking we're much better off than holders of GLD are wrong. Better go read those prospectuses again more carefully.

When feeling glum, just sing the song of the Lannisters chum!

And so he spoke, that lord of Castamere, But now the rains weep o'er his hall, with no one there to hear. Yes now the rains weep o'er his hall, and not a soul to hear.

[macrom]

Re: gold getting killed!!!!!!!!!!!

I am not in the "physical gold shortage" camp but I will say I went to the dealer yesterday. They told me when gold started to drop on Friday buyers rushed in to buy physical. This continued into Monday and all last week.

When I was there they had 1 gold coin left and everything else was on back order. I made an order and was told that they would call me in 3 or 4 weeks when they get it in. (not that they couldnt get the kruggerands just that it took that long to get them with other people back ordered in front of me).

The silver coins were plentiful.

They also stated that the people rushing in to buy physical were financial firms/advisors in the area and not just individual buyers. Obviously they were buying for their clients.

Similar things happened here in India. There was a rush to gold shops and retailers as the gold prices drop but the sales guys at major retailers were turning people back (or rather diverting them to jewelery sales) mentioning non-availability of gold coins & bars of any denomination & willing to take orders which might be fulfilled in about a fortnight or so. Heard this was the case in most of the gulf countries too.

[Prazak]

Re: gold getting killed!!!!!!!!!!!

Hi verdo, sorry to be obtuse, but I'm missing your point . . .

[verdo]

Re: gold getting killed!!!!!!!!!!!

Hi verdo, sorry to be obtuse, but I'm missing your point . . .

Sorry, i just needed an excuse to post that lol. Just trying to say that you should relax, I consider buying GLD the worst option for buying gold if you're a little guy, so I wouldn't consider holding shares of GTU any worse of an opption

No, they don't need to. But I think what is happening here is different than the 1970s. Back then, we entered an incipient hyperinflation of the USD that was stopped by Volcker taking rates to 15%...that ain't gonna happen this time...so I think this time we get a 1971-like "Sunday night surprise" where the USD loses reserve currency status, replaced with the currency the countries doing the majority of physical trade, the BRICS & OPEC, have been buying: Gold.

Whether you start tinkering with the amount of foreign-held US Treasuries divided by US gold holdings, or some sort of repricing of net global trade in gold oz's, you quickly realize that gold is likely going to a big #, 5 figures to start.

In fact, I have seen no western media report on this, but the ECB's exchange of a low rate, $9B loan secured by 10 tons of Cypriot gold (reported as a $520m sale at current prices) is by monetary theory standards a sale of 10 tons of gold for $9B = $28,125/oz.

Why do i say that? What is the difference b/t $9B in cash & $9B in loans at say, the 5-yr UST rate of 0.75%? Very, very little. IMO, Cyprus sold their gold for $28,125/oz & bailed in their banks...I find it fascinating that 2 days after this deal was announced, gold suffered its worst drop in 30 yrs, calculated at 7.5 sigma...in other words, nearly impossible unless it wasn't random...

There are so many gold price targets out there that i really can only surmise that no one really knows what price it'll be at by the end of all this. Btw, are you a follower of FOFOA? Some of the things you say sounds like the things I've heard him talk about

[ProdigyofZen]

Re: gold getting killed!!!!!!!!!!!

Sorry, i just needed an excuse to post that lol. Just trying to say that you should relax, I consider buying GLD the worst option for buying gold if you're a little guy, so I wouldn't consider holding shares of GTU any worse of an opption



There are so many gold price targets out there that i really can only surmise that no one really knows what price it'll be at by the end of all this. Btw, are you a follower of FOFOA? Some of the things you say sounds like the things I've heard him talk about

Stargate along with Highlander are my two favorite TV shows of all time.

[verdo]

Re: gold getting killed!!!!!!!!!!!

Stargate along with Highlander are my two favorite TV shows of all time.

Hallowed are the Ori

[verdo]

Re: gold getting killed!!!!!!!!!!!

Not sure if anyone noticed but gold just dropped below 1400 again. Will be interesting to see if it closes there

[ProdigyofZen]

Re: gold getting killed!!!!!!!!!!!

Not sure if anyone noticed but gold just dropped below 1400 again. Will be interesting to see if it closes there

Trust me the whole world noticed that. The mutual fund and stock managers have been shouting it from the roof tops.

I was speaking with a friend who runs a small L/S equity hedge fund and he said he sees gold at 1100 and equities way up. He did it with a smile because he understands the game and who he has to sell to etc.

[Forrest]

Re: gold getting killed!!!!!!!!!!!

For me, that would be just fine...a really great opportunity to buy well below the inflation adjusted value for gold since the 80's. Please stop listening to the Keynesian Fed people, and their propaganda...they want you in stocks!

CPI Inflation Calculator

$
in19131914191519161917191819191920192119221923192419251926192719281929193019311932193319341935193619371938193919401941194219431944194519461947194819491950195119521953195419551956195719581959196019611962196319641965196619671968196919701971197219731974197519761977197819791980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013
Has the same buying power as:
$2,257.58
in 19131914191519161917191819191920192119221923192419251926192719281929193019311932193319341935193619371938193919401941194219431944194519461947194819491950195119521953195419551956195719581959196019611962196319641965196619671968196919701971197219731974197519761977197819791980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013

[charliebrown]

Re: gold getting killed!!!!!!!!!!!

gold oil ratio is at < 15. We have not seen that since 2011. spy/gold is about 1.2, have not seen that since before the 2008 crisis.
sell stocks and buy gold? I would except I don't have enough stocks. i have a buy limit order on phys of 11.05. I bought some paper gold
on 4/15 during the down draft. I'm keeping some powder dry.

[verdo]

Re: gold getting killed!!!!!!!!!!!

Trust me the whole world noticed that. The mutual fund and stock managers have been shouting it from the roof tops.

I was speaking with a friend who runs a small L/S equity hedge fund and he said he sees gold at 1100 and equities way up. He did it with a smile because he understands the game and who he has to sell to etc.

Interesting. Well personally, ever since a few months ago I've been waiting for a gold dip like this, but if the equity guys think they will escape the same fate gold has had over the last little, I really think they need to think twice about that. I actually bought some physical a couple days ago but I'm still holding out. We're entering that period of time where I believed stocks would start to show the most weakness and when I turn on the financial media, I'm seeing a lot more hubris for stocks than normal. I try not to be contrarian just for the sake of being contrarian, but sometimes you really have to question how the crowd is thinking. Purchasing gold under $1400 is a no brainer, yet the MSM is making it out to be Armageddon

[Slimprofits]

Re: gold getting killed!!!!!!!!!!!

Central banks around the world purchased 368.9 tonnes of gold in 2013...

http://www.usatoday.com/story/money/...-gold/6709493/

Bloomberg News first reported Iraq purchased 36 metric tons of gold in March, the largest purchase by a nation in three years. According to the story, the Central Bank of Iraq bought gold to support the Iraqi dinar against foreign currencies. The International Monetary Fund’s website said as of August, Iraq held about 29.8 tons of bullion.

http://www.forbes.com/sites/kitconew...sign-analysts/

Russia has increased its gold holdings by 7.247 tonnes to 1,042 tonnes in February. Turkey and Kazakhstan also raised their bullion reserves, data from the International Monetary Fund showed today. Turkey's gold holdings rose 9.292 tonnes to 497.869 tonnes, the data showed.

http://news.goldseek.com/GoldSeek/1395835200.php