Best Of The Best Share Discussion Threads

[traderabc] 02/3/2010 08:54

Another Record For Euro-Denominated Gold

Submitted by Tyler Durden on 03/01/2010 11:36 -0500



As the euro is plunging (and dollar by implication surging) with gold yet again flat and looking like it may turn positive for the day, gold denominated in euros just hit another all time record of €827

[traderabc] 02/3/2010 08:54

The system...

Richard Russell snippet
Dow Theory Letters
Mar 1, 2010

March 1, 2010 -- The IMF is about to sell its remaining hoard of 191 tonnes of gold. China has far less in gold reserves than it would like, and I wonder whether China has not already negotiated to gobble up the whole IMF offering.

The US has 8000 metric tons of gold. Some like Jeremy Siegel of Penn's Wharton's School, think we should sell our gold. But even the thought of the US selling its gold would drive the price down. It would also be blaring signal of US weakness. The president can authorize the Treasury to sell US gold but that hasn't happened since 1979. But even if Obama authorized the sale of US gold, he couldn't spend the money on health care or defense or anything else. US law requires that any funds received from the sale of gold must go to paying down the national debt. Another thought is that even if all US gold was sold, it wouldn't make a dent in the US's intimidating $12.3 trillion debt.

The question is asked, the Treasury now values its gold at 44 dollars an ounce. Why not mark US gold to market -- which would be over $1100 an ounce? The Russell opinion is that somewhere ahead that might happen. If Treasury gold was marked to market, the national debt would look a lot less formidable. Of course, if the US revalued its gold, the Fed would object, since such action would fly in the face of the Fed's long-standing strategy to denigrating gold while boosting the legitimacy of their fiat money.

The question I receive most frequently is this -- "What should I do with cash?" Everybody is worried about losing purchasing power and with T-bills offering zero or negative return, what do you do with money? The idea is to invest it in something that is not declining in purchasing power. For this reason, I believe many puzzled investors are buying supposedly "safe" dividend-producing stocks like Abbot Labs, Proctor, J&J and Coke. But we're in the "bear zone," and as I see it, virtually all stocks will be heading down over time. Even if a given stock is doing well, declining price/earnings will send that stock lower.

For those who give up on the perfect answer, one avenue is gold. Gold will always represent wealth, but if gold declines in dollar terms, it will be losing purchasing power. One might buy one of the PIMCO funds. The bunch at PIMCO understand money and safety, and I like their judgment and philosophy.

Everybody is betting against the euro, and I think the anti-euro trade has become too popular and overdone. Which is a good argument for staying in dollars for a while. What about CDs? They're insured by the government up to $250,000. I think money placed in CDs at one or more banks makes sense, but it's a clumsy way to tie up money. Over all, I think I prefer gold. Gold is outside the system, and, as you know, I don't like or trust the system.

[traderabc] 01/3/2010 16:11

Monday, March 1, 2010
Jim Rogers believes US stocks could be entering into a Japan-style Dark Age with falling values until 2030



Jim Rogers predicts Bleak outlook for US


"It wouldn't surprise me if America doesn't go through a 20 or 30 year period where things just don't go anywhere," Jim Rogers said

"If you had said to someone at any point in history that your stock market is going to be 75 per cent down from where it was 20 years ago, they would have called the police because they would have thought you were nuts," He Added

"I know some smart people who are convinced that America is going to default within the next couple of years,"

"There is more than one way to default and one is to print money so you can pay people back their debts with worthless paper," Jim Rogers explained

"There have been many, many cases. American stocks were the same price in 1982 as they were in 1964. For 18 years stocks did nothing and there was particularly bad inflation throughout this period which eroded the value further," Jim Rogers said

Source: China Daily

[traderabc] 01/3/2010 11:39

2/26/10 Jim Rogers on Bloomberg: High Spending May Haunt Indian Economy

[navyan] 28/2/2010 17:18

I see, sounds good plan, even better if you can catch the current bottoms.

Best of luck.

[traderabc] 28/2/2010 15:43

Thanks navyan, I watched them and I'm inclined to agree with with Mr Hewson, from a shorter term charting perspective, his reasoning is sound on both metals.
However from a fundamental perspective the only real 'risk' is owning none.

Gold 'should' keep rising in direct proportion to the wreakless fiscal policy of most western governments.
I've been involved with the markets long enough to learn that fundamentals, though valid, are not something you'd want to put your life savings into without a great deal of care.
I'm also aware that the 'darker forces' (central bankers) know only too well where the critical levels are with regard to any chart. A rock and a hard place come to mind when considering all of these issues.

I've started buying (more) Gold and Silver, this will be the last time, I'm expecting further weakness and I'm attempting to scale into it via CEF, so far I've allocated 1 third of the capital I have at my disposal for this market, the other 2 thirds will go in at/or below 1K and/or above 13k.

As for Silver I believe over the longer term it does travel hand in hand with Gold, though it's performance has been disappointing recently, I'm hoping it will eventually out perform Gold as it has far better fundamentals.

I don't 'trade' either of these metals , I buy (invest) into weakness or convincing strength and hold on tight with the longer term bigger picture in mind.

[navyan] 28/2/2010 12:22

Trader,

take a look at these two videos on Gold from Adam Hewson President of the Marketclub. a well respected trader. He reckons Gold will go sideways or down short term until mid March, and Gold will not be ready to make another all time high until April or May 2011.





And Silver will go down short term, and he says Gold and Silver are two different market, not related to each other.

[traderabc] 28/2/2010 11:02

Gold and Silver
by Sol Palha, Tactical Investor | February 26, 2010
Print

See it big, and keep it simple. Wilferd A. Peterson

From high to Low Silver has dropped over 24%. From high to low Gold has so far shed only roughly 12%. Silver also did not take out its 2008 highs when Gold went on to put in a series of new all time highs. This is another massive intra market negative divergence signal and yet another reason to suggest that Gold could correct/consolidate for several months. On a positive note gold has held up remarkably well in the face of a very strong rally from the dollar. If it continues to hold up like this, then when the dollar rally finally fizzles out, one can expect gold to literally explode upwards.

[traderabc] 28/2/2010 10:53

Pound slides as figures underline scale of UK recession
The pound slid to new lows on Friday after it emerged that an apparent improvement in Britain's growth late last year disguised the fact that the Office for National Statistics has actually cut its estimate of Britain's economic output.


By Edmund Conway, Economics Editor
Published: 8:46PM GMT 26 Feb 2010



The pound dropped to a four-month low on Friday Photo: Alamy

The broadest measure of sterling's strength – the trade-weighted index produced by the Bank of England – dropped to a four-month low, down from 78.6 points to 77.9, while the euro climbed to just beneath the 90 pence mark, as economists mulled the fact that the ONS's second revision of GDP was far less promising than it at first seemed.

[traderabc] 27/2/2010 20:26

On the Edge . . . with Ellen Brown.

[traderabc] 27/2/2010 20:25

A new reserve currency, and a new world order, it'll end in tears...



Head of IMF Proposes New Reserve Currency

Dominique Strauss-Kahn, the head of the International Monetary Fund, suggested Friday the organization might one day be called on to provide countries with a global reserve currency that would serve as an alternative to the U.S. dollar.

“That day has not yet come, but I think it is intellectually healthy to explore these kinds of ideas now,” he said in a speech on the future mandate of the 186-nation Washington-based lending organization.

Strauss-Kahn said such an asset could be similar to but distinctly different from the IMF’s special drawing rights, or SDRs, the accounting unit that countries use to hold funds within the IMF. It is based on a basket of major currencies.

[traderabc] 27/2/2010 20:20

Massive Bank Failures Due, Says Oversight Panel
By Charlotte Cuthbertson
Epoch Times Staff
Created: Feb 25, 2010
Last Updated: Feb 25, 2010



Close to 3,000 banks are currently classified as having a risky concentration of commercial real estate loans, according to a recent report by the Congressional Oversight Panel (COP). All of them are small to mid-sized banks, already weakened by the financial crisis.

[traderabc] 27/2/2010 20:01

Jim Rogers on the Indian Economy


February 26 (Bloomberg) -- Jim Rogers, chairman of Rogers Holdings, talks about the impact of government spending on India's budget deficit and economic outlook.

[traderabc] 25/2/2010 18:52

TALIBAN COCA COLA

[traderabc] 25/2/2010 18:52

Max Keiser on Greek Debt Crisis on Inside Story

[traderabc] 25/2/2010 18:50

China To Purchase Half of IMF's Gold
Front page / Business / Finance
25.02.2010



China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction, Finmarket news agency said.



World central banks started to increase their gold reserves after prices on gold began to climb in 2001. The IMF sells gold within the scope of a program to diversify sources of income and achieve an increase in lending.

The IMF announced an intention to sell 403.3 tons of gold in accordance with the adequate decision made by the board of directors of the fund in September of 2009. India, Mauritius and Sri Lanka purchased about 212 tons of the amount at the end of 2009. India purchased most – 200 tons.

China’s interest in international trade is connected with the development of the nation’s economy, as well as with the growing consumer demand in the country.

“Chinese officials have confirmed previous announcements from IMF experts and said that the purchasing of 191 tons of gold would not exert negative influence on the world market. China is interested in the development of the domestic consumer market,” the agency reports.

Most of Chinese citizens believe that investing in gold jewelry is a good way to avoid inflation, Rough & Polished agency said.

The IMF has received the profit of $7.2 billion from gold sales. A part of the funds is to be used for crediting poor countries

[traderabc] 25/2/2010 18:49

Keiser Report №20: Markets! Finance! Scandal!

[traderabc] 25/2/2010 18:40

Prominent Investor: Pound Could Collapse Within Weeks



British currency is on the brink according to billionaire financier

Steve Watson
Infowars.net
Thursday, Feb 25th, 2010



Billionaire financier Jim Rogers has predicted that the British Pound could completely collapse within weeks, sending shockwaves throughout the global economy and heralding the beginning of a downturn that would make the recent economic crisis look tame in comparison.

“Other currencies aren’t strong and the Euro has real problems, with cracks much wider than Greece beginning to show,” Rogers said.

[traderabc] 25/2/2010 18:38

India: Jim Rogers
23 Feb 2010, 2135 hrs IST, ET Now


In an interview with ET Now, investment guru Jim Rogers says that water problem is a bigger issue than inflation for India and it should also
Jim Rogers
invest in infrastructure.

As an investor, would you say that the biggest risk in India today is inflation?

No. The more serious risk in India is the huge water problem that northern India has. If they do not do something about the water problem, then there would not be an India story at all but inflation is certainly one of the problems that India is facing.

It is interesting that you mentioned agriculture and also water because farm productivity is stagnant in India and now the government is getting seriously worried about it. What is the recipe?


http://economictimes.indiatimes.com/Interviews/Water-is-bigger-issue-than-inflation-for-India-Jim-Rogers/articleshow/5608766.cms