GOLD

[JBmurc]

I disagree, the market is what the market pays . . . if anyone here thinks they can just go out and buy physical gold for the spot price, then good luck . . . you'll be looking for a long time.

I think it's going to take time an alot more knowledge of silver for many investors to see it more than spoons an cups and more as the most precious of the PGM's it's just been so undervalued for so long now.

The facts are 1oz Gold coin $1800 no one blinks at the price- Silver 1oz coin $40 WTF!! I'm going to say this for the 10th time there is no more than 6-7 times more silver in the ground left in the world.
And as 90% of silver is used in Micro-usuage depletion( chips on CCards, electronic goods etc )
there is currently less silver above ground than gold, $40 is cheap..If just 1% of the gold bullion holders sold their gold to convert to real silver bullion the price would explode like never before...

[arco]

................I remember Peak Oil

I'm not saying silver is not good.........most of my silver and gold was bought in 2002/2003 when everyone else thought I was mad. I sold some not long after Buffett .

If the action breaks the daily DT line, I might buy some more...we'll see if that happens.

You can still get some just above spot if you know where to go, and what to look for.

arco

[Craig3215]

There is a ton of 1 oz gold coins selling on e-bay for ~$1000, some with free shipping which seems reasonable

[Aussie]

Craig3215, what do you think of GATA and Bill Murphy's hypothisis . . .

___________________________________

The suppression of the price of gold was the essence of Robert Rubin's famed Strong Dollar Policy. What else did the US do to effect that policy? Talk? Jawbone?

It seems to have all started with the suddenly not so highly regarded, Robert Rubin…

Before he was CEO of Goldman Sachs and then US Treasury Secretary, Robert Rubin worked in London for Goldman Sachs. One of his duties was to oversee their gold trading operations. We know this because the CEO of GATA supporter Kirkland Lake Gold, Brian Hinchcliffe, worked in London back then for Goldman Sachs and reported directly to Robert Rubin.

This was many years ago and interest rates in the US were very high, say from 8 to 12%. Rubin had Goldman Sachs borrow gold from the central banks, sell it in the physical market and use proceeds to fund their basic operations They could do so at about a 1 % interest rate. This was like FREE money, as long as the price of gold did not rise to any sustained degree for any length of time.

Soon other major financial institutions realized what GS was doing and copied them. Rubin continued these operations as the Goldman Sachs CEO and then took it to a new level as US Secretary Treasurer. As mentioned, the gold price suppression became the lynchpin of his widely acclaimed "Strong Dollar Policy." GATA's Reg Howe caught on to this notion in a paper titled, "Gibson's Paradox and The Gold Standard," co-authored by Lawrence Summers in 1988. Summers, a professor at Harvard at the time, succeeded Rubin as US Treasury Secretary. The bottom line of Summer's analysis is that "gold prices in a free market should move inversely to real interest rates." Control gold and it will help to control interest rates. How disturbing to have Summers, a man very responsible for America's current market nightmares, back on the scene as Obama's most significant economic advisor.

Bullion banks such as Goldman and Morgan became The Gold Cartel's hit men, trading the gold market from the short side and bombing the market in coordinated anti-trust fashion at the beck and call of our government, making a great deal of money in the process.

[airedale]

Aussie, if the POG " should move inversely to real interest rates" then POG should be going up as interest rates worldwide move down.
I still see the support at $900 as part of a continuing uptrend.

As for Rubin et al.....foxes looking after the henhouse

[airedale]

Interesting to see that POG jumped $20 when the Nymex opened last night. It usually goes down when the strings get pulled in NY.

[Aussie]

Interesting to see that POG jumped $20 when the Nymex opened last night. It usually goes down when the strings get pulled in NY.

The cartel was caught off guard by the Swiss and it took them an hour to control the price back down again . . .

From Trader Dan . . .

The big stunner of today was massive intervention by the Swiss National Bank into the Forex markets which absolutely obliterated the Franc. They caught everyone flatfooted and achieved maximum shock value. I had to double check my price quotes and the charts to make sure that they were correct as the currency simply evaporated… The last time the SNB had intervened in these markets was all the way back to 1995 or 14 years ago.

The Swiss cut their 3 month Libor target by 25 basis points but they also stepped into the bond market and purchased substantial amounts of Swiss franc bonds. That in combination with them buying large amounts of foreign currency is in my view what shoved gold up so sharply today. The strategy of the Swiss is pretty clear – undercut their own currency to remain export competitive especially against the Euro and the US Dollar and provide substantial amounts of liquidity in the process. While I have not yet had a chance to calculate the gold price in terms of the Swiss Franc, there is no doubt whatsoever that it shot sharply higher today. After all, it is evident that the Swiss have decided to play the “beggar thy neighbor” policy in terms of the foreign exchange arena. All of this serves to remind investors why it is an imperative in today’s environment to own gold – after all, if your Central Bank is determined to debauch your native currency, you have to protect yourself. It is that simple!

I can well remember when the Swissie was once the “go-to” currency when it came to a safe haven during times of economic or geo-political crisis. Obviously that is no longer the case. My how times have changed! It is going to be interesting now to watch the contest between the SNB and the speculators to see how the game is played out. Will the specs leave them alone or will they play the cat and mouse game and bid it back up to see what kind of reaction they get from the Swiss monetary authorities.

http://jsmineset.com/index.php/2009/...trader-dan-84/

[Aussie]

To all; AIG finally 'fessed up as to where the $150+ billion of bailout money went. Foreign and domestic banks got huge shots in the arm with this and TARP, TALF, etc., and where do we stand now? The system is more gridlocked, more precarious and more leveraged (due to additional derivatives and sovereign borrowings) than we were last fall. The banking and financial system as we knew it, is now broke and on life support. This includes governments and thus their currencies.

If you knew for a fact that tomorrow morning the global banking system would not open, what would you do? If you knew that government responses would be to go to market and borrow more, then print to infinity, what would you do? All roads lead to Gold because it is the only "money" that has not and cannot be infected by a credit crunch, sovereign bankruptcy, financial panic, or mass monetization.

Tomorrow morning will be here one of these days soon. It is wise to have only enough "cash" for 3-6 months worth of expenditures, the rest MUST be Gold and Silver related. Whether the G-20 meeting accomplishes anything or nothing makes no difference. The market place and human psychology will do Mother Nature's bidding for her. We are in the "fantasy" stage where all sorts of "innovative ideas" are being thrown around to instill confidence and turn the clock back to the good ole days. None of this can work because it is all slight of hand and "unsound" business practice. It is simply BAD MATH!

Everything has become unsound, the banks and financial sector, industrial sector, pension plans, governments and their currencies, etc.. The light bulb is going on as evidenced by the demand for physical bullion, this thought process will spill over to the mining sector and the shares as the world wakes up to valueless financial sector. Imagine your thought process after a string of banks and financials actually fail, and the Treasury wants to borrow more "money" than is available or offered. Imagine the Fed printing $1 trillion, or even 10, to buy Treasury bonds to keep the government running. Imagine not having access to your liquid funds, or being overseas and hearing "we don't accept Dollars". Then, after a couple weeks, you hear the same thing in the States. In my opinion this is where we are heading one morning in the near future. We will wake up to this, you will be prepared or you won't.

We are being told that the banks have been profitable for the last 2 months, GM doesn't need the $2 billion this month, blah blah blah. The stock market is now getting its long awaited bounce. Now we watch for the flame out, once this rally fails, I believe the big bust or TOMORROW MORNING will arrive. Confidence has been shattered and "hope" (the refuge of fools) is that the bottom is in and the worst is over. In this next phase, the only thing that will "be over" is the fiat monetary system. The Swiss fired the "Ft. Sumter" shot of devaluation last week, the race to the bottom is now on. When the stock market starts to flame out and begins to roll over, I believe information and events will go into hyperdrive. They cannot stretch the system nor the truth any further. It is time to "pay the piper", if I were him I would only accept hard currency.

Regards, Bill H

[airedale]

Hi Aussie, gold is going sideways at the moment,and will possibly slip down a little from here. I think that is merely an orderly minor retreat in the ongoing bull market.

[Craig3215]

Craig3215, what do you think of GATA and Bill Murphy's hypothisis . . .

___________________________________

The suppression of the price of gold was the essence of Robert Rubin's famed Strong Dollar Policy. What else did the US do to effect that policy? Talk? Jawbone?

It seems to have all started with the suddenly not so highly regarded, Robert Rubin…

Before he was CEO of Goldman Sachs and then US Treasury Secretary, Robert Rubin worked in London for Goldman Sachs. One of his duties was to oversee their gold trading operations. We know this because the CEO of GATA supporter Kirkland Lake Gold, Brian Hinchcliffe, worked in London back then for Goldman Sachs and reported directly to Robert Rubin.

This was many years ago and interest rates in the US were very high, say from 8 to 12%. Rubin had Goldman Sachs borrow gold from the central banks, sell it in the physical market and use proceeds to fund their basic operations They could do so at about a 1 % interest rate. This was like FREE money, as long as the price of gold did not rise to any sustained degree for any length of time.

Soon other major financial institutions realized what GS was doing and copied them. Rubin continued these operations as the Goldman Sachs CEO and then took it to a new level as US Secretary Treasurer. As mentioned, the gold price suppression became the lynchpin of his widely acclaimed "Strong Dollar Policy." GATA's Reg Howe caught on to this notion in a paper titled, "Gibson's Paradox and The Gold Standard," co-authored by Lawrence Summers in 1988. Summers, a professor at Harvard at the time, succeeded Rubin as US Treasury Secretary. The bottom line of Summer's analysis is that "gold prices in a free market should move inversely to real interest rates." Control gold and it will help to control interest rates. How disturbing to have Summers, a man very responsible for America's current market nightmares, back on the scene as Obama's most significant economic advisor.

Bullion banks such as Goldman and Morgan became The Gold Cartel's hit men, trading the gold market from the short side and bombing the market in coordinated anti-trust fashion at the beck and call of our government, making a great deal of money in the process.

Thats interesting, that is the first time ive heard that. It seems to me that gold prices could be effected by real interest rates but i'm not sure how real interest rates would be effected by the price of gold... i'll forward this on to martin armstrong he's not exactly a fan of goldman and he might have some input on this