UP,UP,AND AWAY! key indicator of something new in gold policy?
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  1. #1
    Aug 2009

    UP,UP,AND AWAY! key indicator of something new in gold policy?

    GOT GOLD? Metal Bid Ask
    Gold $986.80 $987.80 9.30
    Silver $15.71 $15.76 0.38
    Platinum $1,235.50 $1,245.50 14.40
    Palladium $291.80 $296.80 6.80

    Updated:9/3/2009 5:25:36 AM CS The sharp run ups in Gold intraday (on 9/2/2009) may be indicating that the government believes that the financial system is finally strong enough to allow a run up in Gold (assuming you believe that the government has been keeping it down). Central Banks have become net buyers of gold in the last few weeks which is the key indicator of something new in gold policy.

    The Obama administration Keynesians understand that the USA needs to achieve a currency devaluation to improve its competitive position and increase exports but knows that this cannot be done because other countries will just match the USA currency manipulation. (In the Great Depression, the first countries to devalue were the first to recover. Look at Great Britain now.)

    Countries with high dollar reserves may be tempted by a run up in gold to use their dollars to buy gold, resulting in a stealth devaluation of the dollar.

    Based on the 75% devaluation during the Great Depression from $20 to $35 per oz, gold will pretty quickly go to above $1600 if this is what is happening.
    LONDON (MarketWatch) -- Gold futures edged up $1.40 to $979.90 in electronic action on Thursday after the $22-an-ounce rally in the last session. Analysts at Credit Suisse said gold rallied after breaking resistance at $959 and was supported by a weaker dollar and a recovery in investment demand. The analysts added that there could be a test of the $1,000 mark in coming days

  2. #2
    Aug 2009

    Re: UP,UP,AND AWAY! key indicator of something new in gold policy?

    the Chinese government is trying to trigger a national gold craze...and it's working. The Chinese public now has gold trading platforms on steroids.... ...Also, for the first time in history, Chinese investors can even trade gold abroad (in London) with the swipe of a ‘Lucky Gold' card. I can't even get Bank of America to open a foreign currency account."

    "This may be an overstatement of the case from a precious metals bull - or it may not! Certainly if China is indeed pushing the public to buy gold then there may well be a hidden agenda here. It's unlikely they are doing it and will suddenly pull the rug out from under millions of investors. A cynic (or a raging gold bull) would suggest that this will precede a move to switch a good proportion of the country's reserves into gold which would have a huge effect on the global gold price and could prove disastrous for the dollar. Maybe it's not in China's interests to drive the dollar down too much until it has managed to divest itself of the huge dollar overhang The country may well already be, of course, surreptitiously building its gold reserves without reporting the build-up.

    "If the Chinese are indeed beginning to buy gold and silver as the quoted report suggests then this has to be a strong signal that prices are going to rise, and perhaps rise dramatically, in the relatively near future. We await comment from other China watchers for confirmation of the gold and silver buying spree, but with global gold production at best flat and probably in decline, even a small increase in Chinese buying could have a substantial impact on gold and silver prices."

  3. #3
    Aug 2009

    Re: UP,UP,AND AWAY! key indicator of something new in gold policy?

    Metal Bid Ask
    Gold $991.00 $992.00 13.50
    Silver $15.87 $15.92 0.55
    Platinum $1,234.00 $1,244.00 12.90
    Palladium $292.20 $297.20 7.30

    Updated:9/3/2009 10:37:51 AM CST



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