Gold

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ciangerry
Posts: 9
Joined: Fri Apr 17, 2009 2:04 pm

I'm reading a great book at the moment called 'Currency Wars - The Making of the Next Global Crisis' by James Rickards.

The book does a great job of outlining the role Gold has played in the monetary system. It really drives home the important role Gold can play in anchoring the monetary system and why the current on going currency wars will likely result in a return to some form of Gold standard.
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Euler
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Location: Bet Angel HQ

Japanese pension fund switches to gold

http://www.ft.com/cms/s/0/1be7a2a2-9f3f ... z1vUnVhiOU
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superfrank
Posts: 2762
Joined: Fri Aug 14, 2009 8:28 pm

“If you look at assets over the past couple of decades, equity has been a loser, while fixed income offers tiny coupons,” said Yoshio Kuno, Japan head of Newedge, the futures broker. “Gold is becoming an acceptable currency substitute.”
that last line made me laugh... it's rather that fiat currencies are becoming an unacceptable substitute for gold (a currency for 6,000 years) because the Japanese and others just won't stop printing it.

last year a Dutch pension fund was forced to sell its gold as the regulator considered it "too risky"!
http://www.efinancialnews.com/story/201 ... -regulator
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to75ne
Posts: 2413
Joined: Wed Apr 22, 2009 5:37 pm

not that i did not need convincing that the world of finance is nothing more than smoke, mirrors, snake oil, reading runes and buillshit; thats put the final nail in the coffin for me. :lol:
andyfuller
Posts: 4619
Joined: Wed Mar 25, 2009 12:23 pm

Has gold had it day? Will be interesting to see if $1,530 holds if it gets tested again. I am currently short on it.
mulberryhawk
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Joined: Thu Oct 29, 2009 12:37 am

http://ftalphaville.ft.com/blog/2012/07 ... old-price/

This seems to lend weight to your position Andy.
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superfrank
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Joined: Fri Aug 14, 2009 8:28 pm

i agree that in the short-term it looks weak (as with many commodities atm). if silver breaks $26 again it will probably trade at $22.

i didn't realise US crude had dipped below $80 last month. haven't been following things for the last 2 months.

good site for futures prices... http://finviz.com/futures.ashx

look how "cheap" natural gas is now!
http://finviz.com/futures_charts.ashx?t=NG&p=w1
mulberryhawk
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i dont have a real strong opinion myself, although I have been wondering how gold would act in a deflationary environment.
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superfrank
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Gold to be made a tier 1 commercial bank asset again under proposed new Basel III rules...
http://dailycapitalist.com/2012/08/06/t ... ea-change/
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gutuami
Posts: 1858
Joined: Wed Apr 15, 2009 4:06 pm

superfrank wrote:...

look how "cheap" natural gas is now!
http://finviz.com/futures_charts.ashx?t=NG&p=w1
this might be one of the reasons ;)
http://www.youtube.com/watch?v=3AZv6MjZylo
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superfrank
Posts: 2762
Joined: Fri Aug 14, 2009 8:28 pm

Fool’s gold standard
http://www.marketwatch.com/story/fools- ... e_carousel

arguments against a new gold standard but he spouts some rubbish in there...
Gold is pretty, but it’s just a piece of metal. Its uses are limited. It can be dug out of the ground. In other words, it’s really all about human confidence that gold is worth something.
he fails to mention that the fiat system is all about confidence in intrinsically worthless pieces of paper (or numbers in a database) - the supply of which can be doubled at the press of a button by central banks.
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superfrank
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gold-in-fx-terms.png
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luckystar
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Joined: Sun Oct 07, 2012 2:24 pm

gold a piece of metal? gold is a currency and accepted anywhere in the world. The troubles for countries start when they start printing money like there is no tomorrow.... Look at central banks today - they are hoarding gold because people are losing trust in their fiat currencies. Thus central banks can say their claims are backed by physical holdings...
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superfrank
Posts: 2762
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luckystar wrote:gold a piece of metal? gold is a currency and accepted anywhere in the world. The troubles for countries start when they start printing money like there is no tomorrow.... Look at central banks today - they are hoarding gold because people are losing trust in their fiat currencies. Thus central banks can say their claims are backed by physical holdings...
The 10 Countries With The Biggest Gold Reserves In The World

http://www.businessinsider.com/gold-res ... 012-8?op=1

Britain doesn't rank very well after Gordon Moron Brown flogged most of ours when the price was at historic lows...
Image

this still makes me laugh (and cry)... http://www.youtube.com/watch?v=RDm8zGwcdZ4
andyfuller
Posts: 4619
Joined: Wed Mar 25, 2009 12:23 pm

Some sell off in Gold at 13:20 today :!:

Some people must have been spanked on that move.
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