Current Gold Price

[Lord Beria3]

http://www.financialsense.com/contribut ... -sells-off

What we want to be clear about is this: while the paper selling in gold and silver has been intense, so too has the physical buying. Lisa Sprott of Sprott Money announced Friday: "We have completely run out of physical silver, so we are temporarily out of stock." At KDPM, all of our premiums on silver coins were raised Friday because the market is so tight (in short supply). We have access to silver, but demand is once again overwhelming supply in the short-term. We expect premiums to go up again on silver and gold due to intense buying and lower supplies.

Don't be fooled by the drop in price on the paper markets, the physical demand for gold and silver is exploding. Stock up when you can... I suspect that when banks start failing then nobody will be selling their physical gold and silver.

[Lord Beria3]

http://www.beaconequity.com/marc-faber- ... 011-09-26/

In early morning trading in Europe today, publisher of the Gloom Boom Doom Report Marc Faber gave CNBC his latest take on a plunging gold market.

“We overshot on the upside when we went over $1,900,” he told CNBC’s Steve Sedgwick.

“We’re now close to bottoming at $1,500, and if that doesn’t hold it could bottom to between $1,100-1,200.”


So far, spot on, as Faber’s call for gold to fall to $1,500-1,600 at a conference in Mumbai a little more than a week ago has materialized. Faber said he holds 25% of his portfolio in gold.

Spot gold traded as low as $1,536 in Asia, Monday. With less than two hours before the open in NY, gold is $100 off its low to trade at $1,636. Silver, too, is up more than 10% off its low of $26.05.

Faber’s next level of support, between $1,100 and 1,200, coincides with gold’s 60-month moving average—and level that could be tested if the global financial crisis turns profoundly more ugly than the already terrible expectations implied by the colossal move into U.S. dollars and out of emerging market currencies during the past two weeks.

The Brazil real and Mexican peso, for example, have gotten clobbered since mid-September, registering staggering 22 and 16% total declines against the dollar in the past 5-6 weeks.

Though not nearly as dramatic, Asian currencies, too, have been hit with 6% to 10% declines against the dollar during the same time period.

Currencies guru John Taylor of FX Concepts nailed that prediction in July, when he told Bloomberg that the dollar was primed for a very strong rally against emerging markets currencies in the fall season.

Incidentally, Taylor also predicted in July that gold would reach $1,900 per ounce. Then, he said, the yellow metal would crash to Faber’s most recent pessimistic call of approximately $1,000 mark before gold resumes its bull market ways.

However, for now, Faber suggests the bounce in gold may begin as early as Wednesday. And, at that time, he may turn into a buyer again.

“Both equity markets and gold markets have become very oversold,” he said, “and I think a rebound is occurring.”

Unlike many analysts, who point to Greece as the catalyst for the sell off in every asset except U.S. Treasuries, Faber thinks heightened fears of a meaningful slowdown in China could be behind the global mass exodus out of assets associated with the Asia growth story.

China, he believes, has “overcapacities” in some areas of its economy, which were brought about, partially, by Beijing’s rapidly increased capital spending programs following the collapse of Lehman Brother on Sept. 15, 2008.

“Asian markets are weak, Asian currencies are weak and economically sensitive stocks are weak because there’s a more meaningful slowdown in China,” he said.

“You have a capital goods level where capital spending increases dramatically and companies keep spending to a high level, but because of the acceleration, it can lead to recession simply by the economy growing at a steady rate, and I think we are at this point in China.”

Faber is one of favourite moneymen who consistently makes the right calls. The slowdown/recession in China which appears to be happening is probably bigger than Greece in terms of commodities.

Saying that, the printing presses will start soon as as Faber has noted before, this is good news for equities/gold/silver so these short-term corrections are just that.

[ziggy12345]

You will be better off buying dollars in the short term.

[Lord Beria3]

You will be better off buying dollars in the short term.

The dollar is toast in anything more than the very short term.

[UndercoverElephant]

You will be better off buying dollars in the short term.

The dollar is toast in anything more than the very short term.

I'm not so sure. I agree with you that the fundamentals point to an eventual implosion of the dollar, but first there's a lot of money which will flow out of riskier assets, including equities and euros. Eventually much of that money will be forced towards commodities, property and precious metals, but we haven't got to that stage yet.

[Lord Beria3]

The Leap 2020 people make a good case in my opinion that the Greek default will trigger a bond crisis in the UK and America within months. Chris Martenson makes the same point that we within months of a massive crisis of the dollar.

http://www.zerohedge.com/news/silver-soars-26-26-hours

It appears rumors (there's that word again) of precious metals' demise have been greatly exaggerated yet again. After hitting a low of $26/ounce just shortly after 24 hours ago, the metal has since soared by a whopping 26% to $32.90 (thank you CME and Shanghai Gold Exchange). That's $6.90 in one day. The same with gold. It seems that the market has finally had its brain kicked in a little following the realization that an expansion in the EFSF from E440 billion to E3 trillion (which has about 0.01% probability of happening, and would likely see the mobilization of a certain army first) would mean an exponential decline in the credibility of that "other" currency, which while potentially retaining its value against the "first" currency, will have been devalued that much more against the real, undilutable currency. We expect the market to comprehend that Goldman, for once, was spot on in its evaluation that anyone who bought yesterday at the lows, will have already made their full year unlevered return in one short day.

Silver up 26% in a day.

[ziggy12345]

Rastani said it. Traders love volatility. Seeing as 90% of trades are carried out by algorithams then volitility is being injected into the market. Silver up 26%, Oil down 10%. Look at the rise and falls over the last 2 years. these are just to be able for traders to make a profit. The underlying trend is flat or downward. The stock market is bing maniuplated to allow people with cash to make more.

It will all end in tears

Cheers

[Lord Beria3]

Rastani said it. Traders love volatility. Seeing as 90% of trades are carried out by algorithams then volitility is being injected into the market. Silver up 26%, Oil down 10%. Look at the rise and falls over the last 2 years. these are just to be able for traders to make a profit. The underlying trend is flat or downward. The stock market is bing maniuplated to allow people with cash to make more.

It will all end in tears

Cheers

Not for gold or silver - ten year bull market built on fundamentals.

Stocks yes, gone nowhere in ten years but don't lump PM's in that category.

[kenneal - lagger]

You will be better off buying dollars in the short term.

Money is see-sawing from one currency to another at the moment as the bad news from each issuing country comes in. The only thing which would stop this movement for a while would be the Remnimbi becoming tradable. That would only last for a while until the influx of cash caused problems there.

As I see it the whole system is rocking from side to side and the rocking will get worse until the boat capsizes!

[UndercoverElephant]

James Turk described it as like what happens when a spinning top loses speed. There are a few sharp wobbles before it falls over completely.

All that matters is that the politicians and bankers are not do anything to solve the fundamental problems. They aren't even trying. They are just doing whatever they can to keep something resembling BAU in existence next week.

[UndercoverElephant]

I am hopeful that the gold prices will soon fall and prices of all products are stabilized.

Stability of prices is the last thing I expect.

[Ludwig]

http://live.bullionvault.com/front2/frontpage-1.html

I am kind of tempted to buy in due to the dip in price but not sure about wether owning physical gold coins & hiding them under the bed is best or is it better being kept in some bank like above.

Both seem too be risky

One option is to buy physical gold, stick it in a strong box and hire space in a safe in the bank. You can get it out any time you like. Of course if/when things go really tits-up and you won't be able to trust bank employees with your goodies, that won't help - which is why one should be alert for signs of the final banking meltdown.

[Lord Beria3]

Once the banks close, you won't get your gold. Better stick it in a bullion holding company like Bullionvault as well as holding some physical gold and silver at home.

[Lord Beria3]

Once the banks close, you won't get your gold. Better stick it in a bullion holding company like Bullionvault as well as holding some physical gold and silver at home.

Funny enough, Micheal Portillio on last weeks 'this week' warning that your money wasn't safe in the bank. Quite a amazing moment.

The Sunday Times today has a article on how government bond markets are going to collapse and your best protection is physical gold, not futures.

I also notice that next week Radio 4 has a File on 4 programme on how higher energy prices may kill the economy recovery.

Seems to me that we are on the cusp of the Peak Oil/sovereign debt story going mainstream in 2012. This is something I have been saying for a while.

[biffvernon]

Michael Portillo has his own Radio 4 programme called "Capitalism on Trial".

For a Tory, he makes quite a good case for Marxism and against capitalism. Well worth a listen again: http://www.bbc.co.uk/iplayer/episode/b0 ... Episode_1/