Current Gold Price

[Lord Beria3]

http://www.goldmoney.com/gold-research/ ... ounce.html

Gold price back to $1,900 per ounce

Gold is back near record nominal highs with spot gold trading around $1,900 per troy ounce and close to €1,350 per troy ounce. With US markets closed for Labor Day, the focus has been on the ongoing euro-crisis. Merkel’s election defeat in her home state of Mecklenburg-Western Pomerania has increased doubts over the German ruling coalition’s determination to bail out weaker neighbours. The subsequent crash in European stock and bond markets, as well as euro weakness in currency markets has been a harsh reminder to all that there are precious few assets that are insulated from sovereign and systemic risk.

Apart from gold!

The price of silver also rose, briefly touching $43 per ounce. Technically silver seems to have finished its period of consolidation after the Spring correction and seems to have resumed its uptrend, it might not take long to regain the $50 per ounce level.

Yup, silver is going to see a superb rally over the next few months.

http://www.caseyresearch.com/cdd/appetite-gold

According to estimates by Shayne McGuire in his new book, Hard Money; Taking Gold to a Higher Investment Level, the typical pension fund holds about 0.15% of its assets in gold. He estimates another 0.15% is devoted to gold mining stocks, giving us a total of 0.30% – that is, less than one third of one percent of assets committed to the gold sector.

Shayne is head of global research at the Teacher Retirement System of Texas. He bases his estimate on the fact that commodities represent about 3% of the total assets in the average pension fund. And of that 3%, about 5% is devoted to gold. It is, by any account, a negligible portion of a fund’s asset allocation.

Now here’s the fun part. Let’s say fund managers as a group realize that bonds, equities, and real estate have become poor or risky investments and so decide to increase their allocation to the gold market. If they doubled their exposure to gold and gold stocks – which would still represent only 0.6% of their total assets – it would amount to $93.3 billion in new purchases.

Peak Oil is the end of growth -therefore very bad for most equities and bonds as well real estate to a certain extent.

But what if currency issues spiral out of control? What if bonds wither and die? What if real estate takes ten years to recover? What if inflation becomes a rabid dog like it has every other time in history when governments have diluted their currency to this degree? If these funds allocate just 5% of their assets to gold – which would amount to $1.5 trillion – it would overwhelm the system and rocket prices skyward.

The gold boom has only started.

[UndercoverElephant]

Just out of interest...

Money Saving Expert keeps censoring/removing threads on gold and silver.

http://forums.moneysavingexpert.com/sho ... st46678541

They say this is because that website "does not want to be seen as giving investment advice" or "does not want to be seen as ramping the price." Except the threads which are being removed often don't give any investment advice and it is rather hard to believe that one forum in the UK can influence the global spot price of gold. One of those that was just pulled was simply discussing how and where to buy silver, which is exactly the sort of question that MSE is there for.

The Powers That Be do not want you to know about gold and silver. They want you to keep hold of your pounds, dollars and euros.

[UndercoverElephant]

More wikileaks releases on gold/China

http://www.gata.org/node/10387

[Lord Beria3]

Telegraph reporting that the drop in gold prices later on today was due to massive losses on the swiss franc trade... now that the old swissie is now pegged to the euro, there are no safe havens left.

This is very bullish for gold and silver.

http://www.scribd.com/doc/64020390/xrm45126

Implications of a euro crash...

[UndercoverElephant]

http://kingworldnews.com/kingworldnews/ ... _Gold.html

With gold accelerating today’s gain in access market trading to over $57, King World News interviewed James Turk to get his thoughts on where gold and silver are headed from here. When asked about the action in gold Turk stated, “This was a big day and a great close to the week. The strength that gold displayed suggests that we are going to probe $1,900 very quickly, possibly as soon as next week. What seems apparent is that a lot of people jumped on the short side and are now caught, so the short covering rally could be quite spectacular.”

Translated into normal English: When the price of gold started sliding last week, a lot of traders wanted to make a bet that it would keep falling quite a long way - that the "bubble" had burst. So they borrowed gold from somebody else and sold it, with a plan to re-buy at considerably lower prices and pocket the difference. But they "got caught", because the dip wasn't as low or long-lived as they thought it would be and gold has already started going back up again. That means they have to decide whether to hold out for another drop in price or risk unlimited losses if the price goes higher (which it will). Eventually, and probably quite quickly, they will be forced to cover their shorts - this will send the price of gold even higher.

http://news.silverseek.com/SilverSeek/1315318111.php

Restating what I feel is the obvious; the dramatic gold rally was caused by aggressive buying by the group of speculative traders which are classified as commercials by the CFTC. Many make the mistake of assuming that just because these traders are classified as commercials that means their trading is purely for legitimate hedging purposes. Nothing could be further from the truth, as the bulk of their trading is speculative in nature. Therefore, while it would be technically correct to say that the gold rally has been caused by speculative buying, most would assume that meant new buying of long positions by easily-identified speculators such as hedge funds and momentum traders. That is definitely not what has transpired in gold recently, as the “normal” hedge fund and technical fund speculators have been selling COMEX gold contracts, not buying them. Instead, the big COMEX gold speculative buyers have been the commercials who were previously heavily short. Correctly identifying the true speculators driving a market is a distinction that makes all the difference in the world. That so few see it is amazing to me.

There is little doubt that the commercial gold shorts have taken a horrific beating in buying back their short contracts. My guess is that the collective loss on the covered gold contracts so far is on the order of $1.5 billion. Such a loss, even when spread among the roughly 40 traders classified as COMEX commercial gold shorts, amounts to a hefty per entity average loss of $37.5 million each. And I’m speaking of closed out losses only; there is still a large number of open gold shorts that the commercials are holding whose resolution remains to be seen. Those “open” losses run to an additional $8 billion at current gold prices. It is imperative to recognize the unprecedented magnitude of these closed out and open gold losses. It’s not enough to say that these commercials lost big-time; having never lost before on such a scale, the turnabout for these commercials must be shocking to them. As such, I’d like to explore what this may portend in the future.

[tymeric]

http://goldnews.bullionvault.com/gold_bullion_090720113


Kazakhstan's central bank meantime pledged Wednesday to buy all of the country's domestic Gold Bullion production until at least 2015.

Kazakhstan produced 26.9 tonnes of gold last year, making it number 20 in the world, according to leading precious metals consultant GFMS. The latest figures published by the World Gold Council put its official Gold Bullion reserves at 70.4 tonnes.

[Lord Beria3]

http://www.wsws.org/articles/2011/sep20 ... -s09.shtml

Both the proponents of a European and a national solution to the euro crisis are united in insisting that the population bears the cost of the crisis. The austerity measures that Greece has had to implement as a requirement for “assistance” from the euro rescue fund have reduced the living standards of average income earners by 30-40 percent and are destroying large parts of state infrastructure. A collapse of the euro and the European Union would result in the bankruptcy of entire countries and lead to a resurgence of national conflicts and wars in Europe.

This great article and anather good article at Casey Research on the impending collapse of the dollar standard (within this decade)

http://www.caseyresearch.com/cwc/coming-currency-crisis

The End of the Dollar Standard
Central banks won’t be the only players. The millions of people around the world who use the dollar as their second currency will join in. And for most of them, “the dollar” doesn’t mean Treasury bills, it means $20 bills, $50 bills, and $100 bills. The collapse in the foreign-exchange value of the dollar sparked by foreign central banks unloading their excess holdings will undermine everyone’s confidence in the dollar’s usefulness as a store of value. Private foreign investors will flee the dollar, further reducing its foreign-exchange value. And most of that privately held cash will flow back to the US as more fuel for price inflation. The dollar standard will be dead.

The consequences will be of historic proportions.

How “historic”? As you can see in Chart 7, if the world’s central banks backed their currencies with gold, it would send the price up (in current dollar equivalents) to many thousands of dollars per ounce – easily $5,000 or more.

http://www.advisorone.com/2011/09/09/go ... marc-faber

Investment expert Marc Faber says that gold may correct but it will be higher for some time so long as the people running the U.S. government keep interest rates low and continue printing money. Considering that the metal is trading above $1,850 an ounce, gold is "dirt cheap," Faber said during an interview with Yahoo’s Daily Ticker on Friday.

“As long as we have characters like Obama ... and Bernanke … gold will be very well supported,” Faber said. “Quite frankly, I have no idea how high gold will go, but I think it will go higher.”

Faber, the Asia-based publisher of the GloomBoomDoom report, predicted that the price of the precious metal is likely to remain volatile and could certainly experience corrections. In the long term, however, "gold will be very well supported" because of global demographics and the continued decline of the U.S. dollar, he added.

When comparing gold prices to the amount of wealth created in the emerging markets over the last decade and the increase in the monetary base worldwide, the price of gold is "relatively low," Faber said. “According to some statistics, the gold price today should be worth between $6,000 per ounce and $10,000 per ounce."

This is why a rise to $5,000 per ounce in 2012 and $10,000 in 2013 is not so unlikely in my opinion. Indeed potentially rather plausible.

[Lord Beria3]

http://www.forbes.com/sites/ralphbenko/ ... gh-gold/2/

Republicans with Rick Perry leading the charge for the Gold Standard!

Forbes prediction of the restoration of the gold standard in America within 3 years doesn't seem so insane now eh?!

Remember, the price of gold will SKYROCKET if this happens.

To conclude, buy some f***ing gold.

[Lord Beria3]

http://www.goldmoney.com/gold-research/ ... ounce.html

But China can only do what it does---that is, take a huge risk on an insolvent European country--- because it has the economic means to do so. Individual investors are not so capable. As such, they are turning to gold. And because the individual demand for gold is rising, the price is rising too: “$2,000 gold in 45 days” says James Turk in this interview with King World News.

Agree with this analysis... as I have said before, we will see $2,000 this year.

[vtsnowedin]

http://www.forbes.com/sites/ralphbenko/ ... gh-gold/2/

Republicans with Rick Perry leading the charge for the Gold Standard!

Forbes prediction of the restoration of the gold standard in America within 3 years doesn't seem so insane now eh?!

Remember, the price of gold will SKYROCKET if this happens.To conclude, buy some @$#%& gold.

I believe you are correct in that and because you are correct ,and that effect is well known, there is no chance of the USA or any other large economy going back on the gold standard. There just isn't enough gold to do the job and the assets of a large economy have to be valued by their related worth to all the other assets and commodities in existence.
Even if you went on a hard money standard there is nothing keeping congress from spending all the hard money on foolish programs that are not worth the cost.

[UndercoverElephant]

I believe you are correct in that and because you are correct ,and that effect is well known, there is no chance of the USA or any other large economy going back on the gold standard. There just isn't enough gold to do the job

That is myth/propaganda. It is a totally fallacious claim. If the price of gold is high enough then there's enough gold. PERIOD.

[UndercoverElephant]

Latest edition of the Keiser Report. Excellent as usual.

http://www.youtube.com/watch?v=AXuTSLoi374

Includes an answer to the question "where has the physical gold been coming from this summer?" Libya, it seems...

[ujoni08]

Looks like old Gaddafi has taken it all with him:

http://www.bbc.co.uk/news/world-africa-14923551

He said Col Gaddafi had possession of "all the gold" and would be planning attacks on cities, oil fields and power plants. NTC officials say members of the former leader's inner circle took gold and cash with them when they fled south across the border to Niger last week

.

[JavaScriptDonkey]

I believe you are correct in that and because you are correct ,and that effect is well known, there is no chance of the USA or any other large economy going back on the gold standard. There just isn't enough gold to do the job

That is myth/propaganda. It is a totally fallacious claim. If the price of gold is high enough then there's enough gold. PERIOD.

A return to a gold standard would be an economic disaster benefiting only those who control large amounts of gold - central banks, investment banks and very high nett worth individuals. You would be handing a huge amount of monetary power to the very people who are already fantastically wealthy.

Countries with large manufacturing bases or non-gold assets such as coal or oil would be unable to issue currency against the value of those endeavours. People who happened to own large lumps of shiny yellow metal would end up owning everything as only their money would be legal.

[Lord Beria3]

Countries with large manufacturing bases or non-gold assets such as coal or oil would be unable to issue currency against the value of those endeavours.

Nonsense! Countries NEED coal and oil - they would sell their gold for supplies of coal and oil. Ditto for manufactoring.

That abc capitalism which you don't appear to understand.

We are not saying the end of paper currencies alltogether, only that all currencies are backed by gold and that gold would be seen as legal money.

Of course, a Standard with gold at its core but including silver, oil and other key commodities is more likely. Which also defeats your main point entirely.