Gold bolted up late Friday to rest at US$1360 near enough, Silver well past $24 now. The 'Gold buys Dow' ratio still on track trending down, US$ dropped again towards its near-term low.
All the gold ever mined would a fit in a cube 67 feet each way, or you could buy all the farmland in the USA, and 10 companies the size of Exxon Mobil and still have 1 trillion left.
Which is going to create the most value?
I nearly forgot - George Soros has started selling his gold.
All the gold ever mined would a fit in a cube 67 feet each way, or you could buy all the farmland in the USA, and 10 companies the size of Exxon Mobil and still have 1 trillion left.
Which is going to create the most value?
I nearly forgot - George Soros has started selling his gold.
Skol, that's being a bit obtuse isn't it? If an investor protects savings from a lifetime of hard work by temporarily putting it into gold, who knows what use that cash will be put to later on? And are you sure Mr Soros didn't just want some spending money?
Soros Fund Management sold 341,250 shares of the SPDR Gold Trust, the largest ETP backed by bullion, in the second quarter, according to an Aug. 16 Securities and Exchange Commission filing. That still left a holding of 5.24 million shares, equal to almost 16 tons. Soros declined to comment on the change, through a spokesman.
Skol, there has been a falling production since 2000 or so, on average, but newly released 2009 figures show a 10% increase in production to a recent near peak. Have to give you that one. It's probably an indication that there are some previously mothballed mines or resources that can make a dollar out of the current gold price. Production will drop back if the gold price falls, because a lot of the easy gold would have been extracted when the price was only $300/oz or less.
I still think you'll be needing to put aside some moolah for a good bottle of wine though.
Previously under the Washington accords the CB's annually sold around 450-500 tonnes into the market. That's not happening anymore. That's about 20% of the annual gold supply off the market. In fact, central banks are now COMPETING with investors and are now net BUYERS of gold for the first time in 30 or 40 years. The IMF has very little gold left to sell and the scrap market is not producing as much as it used to either. Mine production is NOT keeping up with demand, there are not a lot of BIG deposits being found. All the gold ever mined in the history of the world would fit into 2 Olympic sized swimming pools with room to spare - that ain't a whole lot compared to the untold $TRILLIONS of worthless paper "assets" floating around the financial world . . .
Could be a key week for a test of the previous gold high with the Indian festivals peaking this week with Dhanteras on Wed and Diwali on Friday.
"Gold sales during Oct. 31-Nov. 6, when the country celebrates Dhanteras and Diwali festivals, may rise by up to 40% on year, in turn supporting the outlook for record imports in 2010, a senior World Gold Council (WGC) official said on Thursday."
If you draw a graph starting in 2006, with oil and gold level-pegging, gold is now higher relative to the oil price when it crashed 76%. Not a perfect comparison though.
How does that chart of Soros's ETF look to you EZ? Starting to curve on the top a bit?
Besides Soros is hardly likely to dump loads of gold at once, it would raise the alarm and set off a panic.
If you draw a graph starting in 2006, with oil and gold level-pegging, gold is now higher relative to the oil price when it crashed 76%.
How does that chart of Soros's ETF look to you EZ? Starting to curve on the top a bit?
Besides Soros is hardly likely to dump loads of gold at once, it would raise the alarm and set off a panic.
Hi Skol, I thought that would get your attention..
I'm not a TA fanatic, but a trendline pointing upwards also fits the chart longer term. The last two times there was a levelling off, it shot up strongly afterwards too. Of course the other explanation for Soros holding onto most of his gold is that the operators of the fund see plenty of upside yet.
The rumour lately driving markets was that Bonzai Bernanke would inflate the US dollar away through Quantitative Easing II. The news will be contained in the Fed's Open (actually "secret") Market Committee meeting on Wednesday. Will BB follow through, or not? What will the markets do? Suppose Republicrats win? Will that change his itty mind? Who knows, but we all know that no election will change the nature of the American economy & its monetary system, where one-half (1/2) the income of nearly every state consists of 20-25% state & local government spending, about 30% direct Federal spending, and another 5 - 15% Federal government loans & loan guarantees.
There 'tis, folks: you have no economy. You have half the people whittling, gazing at TV, indoctrinating, investigating, watching, suspecting, regulating, and writing tickets to the other half, who actually produce something. You think Republicans will change that? Right, about the same time the Devil starts selling ice-skating concessions in hell. It would take 20 years of careful maneuvering to switch back to a productive economy, or 3 years of pure hell, & a long sight of vision and statesmanship. Where will that come from?
Sure, this guy is running a business selling gold (money changing, not a bad name for it), but at least part of his message is anchored in middle America. We have enough trouble moving our own small economy here, it's not quickly moving into high-tech exports, as the politicians have been pleading us to do. (Mind you, they're sending mixed messages, like taking away the well-conceived R&D tax credits, but that's another story). Gold is a bet on uncertainty in major economies of the world. So today will be interesting to watch.
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Originally Posted by Skol
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