ECB-Gold reserves fall, cash in circulation jumps

[jtabeb]

link:


http://www.fxstreet.com/news/forex-n...a-e977e413c928

[phirang]

Re: ECB-Gold reserves fall, cash in circulation jumps

selling off the family silver to pay the bills...

c'est la vie!

it would be interesting to see which banks are selling gold... probably the PIGS, I'd presume! Must be some sort of EU-wide compromise.

[DaveBrown42]

Re: ECB-Gold reserves fall, cash in circulation jumps

it would be interesting to see which banks are selling gold...

I'm more interested in who's buying it - is it being bought by China? Individual investors on the open market? Perhaps this was a move to help restrain the price of gold last week.

It seems to me that the less gold Central Banks have, the more incentive they have to preserve the USD (and their own currency).

[phirang]

Re: ECB-Gold reserves fall, cash in circulation jumps

I suspect they're selling gold to the US!!!

[Supercilious]

Re: ECB-Gold reserves fall, cash in circulation jumps

I'm more interested in who's buying it - is it being bought by China? Individual investors on the open market? Perhaps this was a move to help restrain the price of gold last week.

It seems to me that the less gold Central Banks have, the more incentive they have to preserve the USD (and their own currency).

That is a great question DaveBrown. If ECB and Russia are selling a lot of gold lately (as rumored), then who is buying? Who would have so much cash in this environment and why should those buyers get into physical gold? (we are not talking here about buffalo grazing a maple leaf in the middle of the philharmonic).

I guess somebody is preparing to make a lot of money out the physical gold bubble. I'm taking about the so called club of "friendly hedgies" which is the new Wall Street.

The Wall Street is dead. Long live the Portal Alliance!

[GRG55]

Re: ECB-Gold reserves fall, cash in circulation jumps

That is a great question DaveBrown. If ECB and Russia are selling a lot of gold lately (as rumored), then who is buying? Who would have so much cash in this environment and why should those buyers get into physical gold? (we are not talking here about buffalo grazing a maple leaf in the middle of the philharmonic).

I guess somebody is preparing to make a lot of money out the physical gold bubble. I'm taking about the so called club of "friendly hedgies" which is the new Wall Street.

The Wall Street is dead. Long live the Portal Alliance!

Makes sense. The ADD crowd on Wall Street needs something quick. After all the go-long-commodities" game is over. The "short-commodities" game is over. The "short-the-financials" game is over. So what's next to juice?

Note how more and more Wall St houses are declaring an inflationary outcome to the bailout packages, issuing $1500 targets for gold, and the MSM is now engaged with stories about gold buying? Setting the foundation for the next manipulation...:cool:

[ASH]

Re: ECB-Gold reserves fall, cash in circulation jumps

Makes sense. The ADD crowd on Wall Street needs something quick. After all the go-long-commodities" game is over. The "short-commodities" game is over. The "short-the-financials" game is over. So what's next to juice?

Note how more and more Wall St houses are declaring an inflationary outcome to the bailout packages, issuing $1500 targets for gold, and the MSM is now engaged with stories about gold buying? Setting the foundation for the next manipulation...:cool:

Yes. I've certainly noticed a lot more stories about gold in the MSM, ever since the sudden drops in the stock market... even down to the level of local TV news.

That said, since an inflationary outcome is nearly assured, it isn't all that strange that the Wall Street houses should declare it likely.

[Guest]

Re: ECB-Gold reserves fall, cash in circulation jumps

AKA "How to outguess the outguessers who outguess the outguessers who outguess .... etc.

[bart]

Re: ECB-Gold reserves fall, cash in circulation jumps

link:


http://www.fxstreet.com/news/forex-n...a-e977e413c928

Good grief!!! Not at you jtabeb, but at the ridiculous reporting and extreme spin. :mad: :mad: :mad:

Yes, the article is true... but what it didn't say is that the week before that the ECB balance was $208 billion Euros. In other words, the ECB has been a net buyer to the tune of 10s of millions of ounces.

http://www.nowandfutures.com/grins/oz_curtain.wav !!!

And in tinfoil hat mode:
Where's the guy who had a conniption fit and accused me of lying about ECB gold manipulation/control, and also had a similar fit about the proven ESF dollar interventions?
Too funny & "special" how he disappeared after trying to negate the actual facts... and yes, I do wonder about his motives...



The last four weeks data, raw, oldest first:
208125
208111
220392
220237

edit/add - sorry if this came across as too intense. It just really frosts me to see the spin and lies being spewed.

[GRG55]

Re: ECB-Gold reserves fall, cash in circulation jumps

Yes. I've certainly noticed a lot more stories about gold in the MSM, ever since the sudden drops in the stock market... even down to the level of local TV news.

That said, since an inflationary outcome is nearly assured, it isn't all that strange that the Wall Street houses should declare it likely.

Of course.

Whatever Wall Street [and Bay Street and the City of London] chooses to game must always start with a plausible underpinning. Then the machine goes into action, spins the tale and takes the levered way to play the story to excess. Long on the upswing, short on the downswing, and lo...Goldman wins again. Imagine that.

Uranium stocks, solar panel manufacturers, zinc, wheat, corn, oil...take your pick. They are all recent examples from the past few years. Some people confuse this organized gaming of the markets [all done with sober faced denials from the incompetent SEC] with real bubbles. All of the above played out against the backdrop of the real bubble going on in credit, property and MBS this decade. To call these short duration organized games "bubbles" is truly a disservice to the talents of Alan Greenspan, his global Central Bank cohort and their government Puppetmeisters, frankly :rolleyes:.

Now some say that Wall Street has "changed forever". Perhaps, with the now rampant socialization of risk, Wall Street will change. Eventually. And for as short a period as possible before the "natural state of affairs" can be restored **.

But just because Morgan Stanley and Goldman Sachs have been born again as respectable, regulated "real" banks, doesn't mean that anything much has yet changed internally. They won't easily give up the ways of the "good ol' days". Something about leopards and spots...

** After the 1970's commodity bubble burst a popular bumper sticker appeared in Alberta. A modern equivalent for banker's Prius' might read "Please God, let there be another financial boom. I promise I won't piss it away this time"

[bart]

Re: ECB-Gold reserves fall, cash in circulation jumps

Whatever Wall Street [and Bay Street and the City of London] chooses to game must always start with a plausible underpinning. Then the machine goes into action, spins the tale and takes the levered way to play the story to excess. Long on the upswing, short on the downswing, and lo...Goldman wins again. Imagine that.

And you reminded me of the real point of that ECB buy data.

Anyone is free to slot me into the tinfoil hat brigade, but whenever the ECB buys a bunch of gold they also tend to sell it near or at peaks... call it manipulation or call it control or whatever, I just recommend that it not be ignored.

[ASH]

Re: ECB-Gold reserves fall, cash in circulation jumps

Of course.

Whatever Wall Street [and Bay Street and the City of London] chooses to game must always start with a plausible underpinning. Then the machine goes into action, spins the tale and takes the levered way to play the story to excess. Long on the upswing, short on the downswing, and lo...Goldman wins again. Imagine that.

I haven't watched things long enough to tell the difference between Wall Street hyping a given investment du jour and believing its own sales pitch -- at least until that section of the market grows beyond what the plausible story supports -- and Wall Street intentionally gaming. It amounts to much the same thing, I guess. Certainly the pattern you describe seems real.

To be honest -- separate from philosophical objections -- I'm not exactly adverse to Wall Street gaming something I'm already in. It introduces the challenge of getting out before the rapid downswing, but it also offers the opportunity to make larger, and quicker, profits than would be possible from a pure macro play.

[aa]

Re: ECB-Gold reserves fall, cash in circulation jumps

The value of the gold is 1% of the value of the cash.
Are these two items supposed to have a connection ?

[unlucky]

Re: ECB-Gold reserves fall, cash in circulation jumps

Funnily enough it's hard to find euro banknotes that were not printed in 2002. I've been keeping an eye on the dates for a while, and very rarely see anything other than 2002. Can I expect to see 2008 soon?

(Coins have a wider spread of dates, but most of the 1 and 2 euro coins are again 2002, with later dates seen mostly on sub 1-euro coins)

[GRG55]

Re: ECB-Gold reserves fall, cash in circulation jumps

Funnily enough it's hard to find euro banknotes that were not printed in 2002. I've been keeping an eye on the dates for a while, and very rarely see anything other than 2002. Can I expect to see 2008 soon?

(Coins have a wider spread of dates, but most of the 1 and 2 euro coins are again 2002, with later dates seen mostly on sub 1-euro coins)

But have you noticed whether the "printed in 2002" Euro bank notes being dispensed from ATMs are crisp, new, non-circulated stuff, or ratty, torn at the edges, well used notes?

When I was in Europe this summer I noticed the notes I got from the ATMs in the UK were fresh, new 20 Pound notes, and the stuff I got from the ATM in Greece were also new, unused Euro notes.