Gold

[Skol]

JB,

Where do you fit in?

http://www.readersdigest.co.nz/most-...ofessions-2013

[Skol]

Looks like there's some accountability at the central bank in Switzerland. The central bank owns 1040 tonnes of gold, an amount no doubt applauded by the gold bugs, except the tanking gold price has translated into an 18.5 billion franc loss in the second quarter.

I wonder how other central banksters feel after dipping their toes in the water at extortionate gold prices?

Tonight's gold price won't have helped much.

http://www.bloomberg.com/news/2013-0...gold-fell.html

[Skol]

Skol, there have been a fair few bridge collapses in the US of late as well & there's houses falling into sink holes. Funny enough the US decaying infrastructure has been an opportunity to the US has failed to capture to bring jobs & growth into the economy & a much faster rate. The problem is the Government & individual States have so much debt they can't maintain them let alone replace. What they need to do is Government guarantee privatized funding to do a major rebuild of the infrastructure, a real opportunity missed imo. Agree on what you say about the riots / social unrest in China though it is a real risk to the economy going forward. My view is that China will be more & more liberalized over time to appease the social unrest, however if they don't I agree it could be a major issue for them. Probably right up their with gun crime in the US! LOL

Daytr,

News that the Chinese are about to embark on the world's tallest skyscraper will probably invoke the dreaded Skyscraper Index.

The last one was completed just after the onset of the GFC.

http://en.wikipedia.org/wiki/Skyscraper_Index

SPDR Gold Trust down 48 tons for the month of July.

[Skol]

Yep, gold down to $1287, probably the beginning of the next leg down.
The SPDR Gold Trust down about 7 tons in the last few days, a message for the guys who say we're running out of gold.

Only 921 tons to go.

[Skol]

Last 12 months:

DJIA +21%
S&P +24%
FTSE +16%
XJO +20%
CAC +23%
HSI +12%
DAX +26%
---------------------
Gold -19%
Silver -28%
SIL -28%
Shanghai Composite -1%. (China will rule the world lol)
HUI -40%
GDX -38%
GDXJ -48%
XGD -51%

Who's stacking then?

[elZorro]

Moosie, the rest of us have figured out that when the banks can buy back enough gold cheaply, to return to legitimate holders who want it back, then the gold price will stop having these sudden dips. Dips that start with a warning from commentators or bank advisors, and are savage enough to trigger stop losses from ordinary investors. You can't deny that it's very expensive to dig the gold out in the required volume. It's the miners and small holders who are paying the price for the banks' continuing profits - made leasing non-physical gold to other parties.

[Skol]

SPDR Gold Trust down 3 tons last night. Someone must be buying it, but
I'll bet they're shorting at the same time to cover their ass.

[elZorro]

the gold companies are claiming poverty over the price but, as we have seen, they manage to adapt. OGC is one, going hedged again and having a game changer in didipio. others are cutting costs to levels still well under the current price. they can keep claiming poverty but they will keep cutting costs as necessary until the market finds balance and the price stabilises.

btw, do you think those bankers/traders really give two flying f's about gold companies? seems like a very naive excuse that they would stop manipulating the market so the real companies could stop struggling!

No, what I mean is that when countries ask for hundreds of tons of physical gold back onto their own soil, it will have to be bought from somewhere, mostly in smaller parcels from retail investors. It's unlikely to be sitting unencumbered in bank vaults en masse, because the banks have recycled it already. The Fed could show this idea up as a lie, by inviting independent teams in to inspect holdings in Fort Knox and NYC for example. But they have always refused to do this properly, instead showing a glimpse of the holdings from afar.

Stuck between a rock and a hard place, the banks will orchestrate the gold market down, buy the gold back as cheaply as they can, and send the equivalent back to its owners.

OGC lost a lot of money in its last hedging effort, towards the end of the term. It doesn't change the fact that a lot of high-priced energy is used to extract lower-grade gold ore from the ground.

[Skol]

No, what I mean is that when countries ask for hundreds of tons of physical gold back onto their own soil, it will have to be bought from somewhere, mostly in smaller parcels from retail investors. It's unlikely to be sitting unencumbered in bank vaults en masse, because the banks have recycled it already. The Fed could show this idea up as a lie, by inviting independent teams in to inspect holdings in Fort Knox and NYC for example. But they have always refused to do this properly, instead showing a glimpse of the holdings from afar.

You've been reading too much gold bug propaganda EZ. There's loads of gold available, contact the World Gold Council and they'll let you have some of the several tons being sold per day out of the SPDR Gold Trust. There's 921 tons available.

You can go and see the gold in New York, it's a tourist attraction.

http://www.newyorkfed.org/aboutthefed/visiting.html

[elZorro]

You've been reading too much gold bug propaganda EZ. There's loads of gold available, contact the World Gold Council and they'll let you have some of the several tons being sold per day out of the SPDR Gold Trust. There's 921 tons available.

You can go and see the gold in New York, it's a tourist attraction.

http://www.newyorkfed.org/aboutthefed/visiting.html

Only several tonnes a day? That's not very much when it's spread around. And I bet any large purchaser would want to buy at a lower price than the market.

That link didn't mention anything about looking at gold reserves. There's a photo of robots in a large warehouse handling paper bills though. That would be on show, no problem.

Those timelines and the selldown graphs the goldbugs posted a few days ago look fairly compelling to me. There's something going on.