Gold

[leistb]

Anyone buying PMs given their current pricing levels?

[Ross]

Anyone buying PMs given their current pricing levels?

I note gold is now recovering nicely however I think we will see some
more volatility as forced selling competes with fear driven buying .

I note large institutional players are now entering the gold market .
If that trend continues in conjunction with Central Bank purchases
I do not see much downside risk . If the house of cards does not
collapse quite soon there is also no politically acceptable mechanism
for perpetual pretend and extend other than money printing .

Extract

Last April gold investment analysts where excited to see a new institutional
player enter the gold market. The University of Texas Investment
Management Co. took delivery of nearly $1bn of gold bullion into a New York
vault. The reason gold analysts were so interested was because large
institutional players had been largely absent from their market and their
huge purchasing power had therefore not had its potentially significant
positive effect on the gold price.

Extract ...

Okayama Metal & Machinery has become the first Japanese pension fund to make public
purchases of gold, in a sign of dwindling faith in paper
currencies. Initially, the fund aims to keep about 1.5 per cent of its total
assets of Y40bn ($500m) in bullion-backed exchange traded funds,
according to chief investment officer (CIO) Yoshisuke Kiguchi,
who said he was diversifying into gold to “escape sovereign risk”.

Extract ...

Eton Park Capital, Paulson and Co., PIMCO, Soros Fund Management,
and the Teacher Retirement System of Texas all bought shares of the
world’s largest gold exchange traded fund (ETF), known by its ticker
of GLD, in the first quarter of 2012.

http://therealasset.co.uk/whales-gold-bullion/

My only concern about institutional buying is that it is both
threatening to Governments and attractive for them to loot .

It should however be most attractive to certain entities like pension
funds who can claim a Capital Gains Tax exemption status .


.

[Ross]

Do the Chinese know something is about to happen ????
( Chart terminates in Jan 2012 )

[Ross]

The bankers continue trying to kill gold with short selling raids
but gold refuses to stay down for long .

As the raid failed it is reasonably safe to assume there will be another attempt soon .

[Sonny]

— Gold prices eked out a gain on Friday, struggling to find firmer footing after four days of losses, but lost 3.8% on the week.

Gold for August delivery GCQ2 +0.47% added $1.50, or 0.1%, to settle at $1,566.90 an ounce on the Comex division of the New York Mercantile Exchange.

Gold has seen weekly losses for two of the past five-day periods. The 3.8% decline was the worst weekly result since mid-December.

Silver’s drop, however, made gold’s decline look like a sneeze. Silver settled at its lowest since November 2010, amassing losses of 7.2% on the week
...
http://www.marketwatch.com/story/gol...ing-2012-06-22

~

[Ross]

Today is gold options expiry day .

Generally there is a bankers raid to drive down price and it lifts again in the
following days and weeks. Therefore today you may pick up gold
a little cheaper than usual .

.

[Ross]

An article at Zerohedge alleges that banks have been raiding
gold stored for customers ( both allocated and unallocated ) .
Not really a big surprise but interesting to see some confirmation .

I have a tiny amount of gold in an unallocated account at the Perth Mint
and I think it is definitely time to take delivery .

For what is worth here is part of a ZeroHedge reader comment ....

Numerous class action lawsuits are in progress in Switzerland,
kept out of the news. They total several $billion in combined size.
However, the account raid practice has been widespread in Europe,
London, and United States. The scope of the seized and raided
Allocated gold accounts is enormous.

http://www.zerohedge.com/contributed...-gold-accounts

[Ross]

Is Turkey paying for oil with gold or is it simply the Iranians hoarding ?

Ugur Gurses, a financial analyst for the Turkish daily Radikal, said, “Iran converted $3 billion of its reserves into gold through financial operations with Turkey, bypassing sanctions.”

The report focuses on a huge surge in gold exports from Turkey
to Iran since March, the same time Iran was cut out of the SWIFT network,
a global transaction system...........

http://www.timesofisrael.com/report-...-gold-for-oil/

[Sonny]

Originally Posted by Ross

Is Turkey paying for oil with gold or is it simply the Iranians hoarding ?

http://www.timesofisrael.com/report-...-gold-for-oil/

Ross, I think the answer to your question is at what price per oz, is Iran paying for gold ??
We know their selling oil their at a discount, but are they also buying gold at a
premium to spot prices? I believe they'd have to ?

My bet is Iran has to pay with ether oil or gold for everything.
as Nobody wants to have a paper trail with Iran.

But then again maybe they Are planning on starting a Global Thermal Nuclear War?
and Who would want paper money in that case?
pffft, Not me.
,
~

[Ross]

At some point the US will have a currency crisis . When that happens
what will you do ? One option is to issue a new currency or peg the existing
one against a fixed amount of some hard asset . Why , because some mechanism
must be found to restore trust in the USD$ as a medium of exchange .

You could look at the above chart as $1USD divided by 12 as its true value
in gold terms or gold is actually worth 12 times more than its current trading range .


Just sayn .

[Ross]

Note : Depending on how it is used the above chart is perhaps misleading
in that production of physical gold from mines has been increasing .


.

[Sonny]

United States all set to become biggest supplier of Gold to India

30 Jul, 2012, , Nidhi Nath Srinivas,ET Bureau

http://economictimes.indiatimes.com/...w/15262058.cms

~

[Ross]

China continues to dispose of US govt. debt and import gold .

[Ross]

From Jim Willie ...

On my Bloomberg terminal, the bid/offer for Gold being quoted used to be dominated by Deutsche Bank and UBS. The waterfall declines were usually the handiwork of DBank. Over the last week or so, a new ticker has popped up making quotes which has started to set the price. It is ICBC (Industrial & Commercial Bank of China)."

Hot money is leaving China in a rush . They see collapsing export markets ,
collapsing real estate prices and with very little imagination collapsing banks.

The Chinese understand perfectly well that fiat currencies are printed
for almost nothing and gold is mined at considerable cost .
Which would you rather use to store wealth in times of tumult ?


.

[Ross]

The gold price will probably drop a bit this week as TPTB
try to arrange all those going 'Long' on gold options
take a loss . I believe options expiry is Friday ( unchecked ) .

.

[Ross]

Not sure whether to exchange your paper money for gold ?

A difficult decision ?

Perhaps this may help .
Below is a chart of USD$ purchasing power over time .

Since this chart was produced we have actually arrived at a paltry 4 cents.

Source

[mordan]

Then before the end it goes straight up 2x. I remember well the last days, nothing stopped it. The horror, the the leaf fell silently to the ground and it was washed into the sea.* * *“Woe is me, I think I am becoming a god”

[mordan]

Pist

[Samen]

Ross, be interesting to know how you figured that out, been following XAU out of curiosity sins your post on the 27th, today's fiats XXXUSD drop was coming as clear as a whistle and caught 3 from the top and bot was on 3 more before i could blink my aye btw. now the whole deck is re arranged for tomorrow, so maybe gold will do more than the drop today and since the 27th, gold is a tough one to trade, tried it a few times and lost on each occasion, so just asking out of curiosity.

[Sonny]

Improved US data halts gold while supporting oil



October 5th, 2012
2hours ago,


...
Physical buying reassures gold investors
Gold spent the week consolidating further while trying to take a couple of stabs at the important 1,800 USD/oz. level which so far stands in the way of further upside momentum. Resistance came from a better than expected US employment report and signs that producer selling was present during the week. We believe this selling will cease if and once the 1,800 level is broken as producers will then be looking for an opportunity to hedge production at higher levels.

Support was provided by a weaker dollar following news from the European Central Bank that it is ready to begin purchasing bonds, thereby providing the stimulus it promised. This continues to be one of the major drivers behind rising metal prices.



Spot Gold, USD/ounce – Source: Saxo Bank

The physical market gave gold a boost with several sources talking about a long awaited pickup in demand from India, the world’s largest consumer, together with China, the second-largest. During the last month the price of gold measured in rupees has fallen by five percent and this combined with the upcoming Diwali or “festival of lights” beginning November 13, has led to a pick-up in physical sales, thereby further reassuring financial investors who have provided most of the support in recent weeks.

Investment flows into gold continue with holdings in exchange traded funds having risen by 95 metric tons (MT) during the last month to a new record of 2.565 MT according to Bloomberg. Hedge funds and other leverage investors have seen their net long exposure to gold through futures rise to 730 MT, a four-week increase of 210 MT.





Platinum provides support as SA strike action spreads
Additional support to precious metals, especially platinum, comes from South Africa where wild cat strikes continue to spread across the country with production of both platinum and gold now being affected. As a result, platinum has been the best performing metal over the last week as the production surplus continues to dwindle while it rightfully so continues to attract a risk premium. This has resulted in the discount to gold narrowing to a low of just 3.7 percent from a pre-strike peak of 16 percent.
...

http://www.tradingfloor.com/posts/im...-oil-411198683

~

[Ross]

With SA gold production in difficulty and fear in the air we a perfectly
positioned for a short squeeze but will it happen ?


.

[Ross]

Extract

Something appears to have snapped in the American psyche as the last 30 days have
seen the largest physical gold sales on record. Between the search volume for 'bulk ammo'
and this, we fear something is afoot and while Congress fiddles as our economy burns,...........

It is only US mint bullion so not necessarily representative of global demand .


http://www.zerohedge.com/news/2012-1...bernanke-night

[oldasrocks]

If you read history. Hitler took over by Executive Order while his goverment was in stalemate.

[Mousehound]

Originally Posted by Ross

Extract





It is only US mint bullion so not necessarily representative of global demand .


http://www.zerohedge.com/news/2012-1...bernanke-night

The chart is a bit misleading. When you look at the data from the U.S. Mint page, you see that January 2012 was also very high, but that Zero Hedge chart starts in February. Data here:
http://www.usmint.gov/mint_programs/...ales&year=2012

[Ross]

Here is the chart including Jan/2012 .