The End Of Fractional Reserve Gold Is Nigh [View article]
@amouna By the way... that's great information about the Perth Mint. that is the second time I've heard good things about them in the past 24 hours as they apparently run their mint like a freaking business. Whodathunkthat?
So mad props to the Aussies, maybe some of my lunar series coins will fetch a good premium... I'm sure you can guess that I'm really fond of my 2003 gold goats. :)
@RJR actually denying the conspiracy at this point defies logic. All the incentive in the world exists to rig the gold price. Look if they have the power to rig the bond markets which are orders of magnitude bigger than the gold market then doesn't it stand to reason they have the power to rig the gold price?
Moreover, if the value of the currency they issue and the wealth it generates for them is dependent on its value versus gold then don't they have an incentive to rig the gold price?
Look no less than Larry Summers wrote the white paper on how to rig the gold price in the 90's. The Clinton administration ran the playbook until they ran out of gold at $250-350 per ounce. Since thne they have been running the same game at ever greater levels.
The current smash was an attempt to finally break the spirit of gold investors. IT HAS FAILED. The physical demand tells you that. Denying THAT defies logic as well.
I know many of you want to live in the solipsism of real markets, but they don't exist. Period. Install that bit into your thinking and recalibrate from there.
@Rina Thank you for reading. Yes, you understand it better than you let on. :)
At some point the market will go to a cash-only market. Margin levels will rise as the exchanges seek to remove volume and the threat of collapse. Raising margin requirements at the bottom the other day did two things 1) ensured that long liquidation would continue for a little while longer 2) move the exchange significantly towards a cash market.
Watch the margin % rates going forward. They should rise from here.
@Change I have no idea at this point. And now that we are finally having the right conversation about the situation in gold -- rather than that fundamental noise pollution put up by the hedge funds in Q1 -- all I know is that the right answer is and has always been to buy metal and let the paper hanger's hang. :)
@Evan Yes. I have it from some of the heavy hitters in the community that Sprott is one of the few good guys out there. He may wind up being wrong -- we all have that possibility -- but he's not dishonest.
@Zmartmoney in the immortal words of Dr. House, 'Everybody lies.'
And everyone talks their book to a greater or lesser extent. Politics is the art of lying such that you can fool people into believing that you are the exception that proves the rule.
The Fed Didn't Cause The Gold Bubble - Or Any Other Bubble [View article]
@MrWagner
1) the excess reserves at he Fed were perfectly expected by most Austrian School Economists -- pushing on a string? That Money, however, cannot be withdrawn without collapsing the banks.
2) Price inflation is a consequence of money printing. The Fed cannot direct where the money goes... though it is very much trying to do so now with herculean controls over the bond and interbank markets.
3) Yes, when then Fed hold the AMB flat for 18 months then Gold will not be pushed higher in nominal dollar terms... Thanks for making the Austrian point. They are printing now and the demand for Gold is going ballistic. Price will follow once the futures market is no longer setting price, which is now fully in the process of happening.
4) Carrying the Fed's water because bubbles existed before central banking is one of the simply laziest intellectual arguments I've read here at SA. Bubbles can be caused by a number of reasons, in a credit-based economy he who controls the flow of credit has to take the blame for the bubbles excess credit creates.
It is very typical of the authoritarian mindset to 'blame the victim' in this case the victim is the person who reacts rationally to excess credit creation by investing in inflating assets by saying they caused the bubble not the money that was created.
It's like blaming the gun and not the person pulling the trigger.
The End Of Fractional Reserve Gold Is Nigh [View article]
Gold: Where Are We Now? [View article]
The End Of Fractional Reserve Gold Is Nigh [View article]
The End Of Fractional Reserve Gold Is Nigh [View article]
So mad props to the Aussies, maybe some of my lunar series coins will fetch a good premium... I'm sure you can guess that I'm really fond of my 2003 gold goats. :)
The End Of Fractional Reserve Gold Is Nigh [View article]
Gold: Where Are We Now? [View article]
Moreover, if the value of the currency they issue and the wealth it generates for them is dependent on its value versus gold then don't they have an incentive to rig the gold price?
Look no less than Larry Summers wrote the white paper on how to rig the gold price in the 90's. The Clinton administration ran the playbook until they ran out of gold at $250-350 per ounce. Since thne they have been running the same game at ever greater levels.
The current smash was an attempt to finally break the spirit of gold investors. IT HAS FAILED. The physical demand tells you that. Denying THAT defies logic as well.
I know many of you want to live in the solipsism of real markets, but they don't exist. Period. Install that bit into your thinking and recalibrate from there.
Gold: Where Are We Now? [View article]
At some point the market will go to a cash-only market. Margin levels will rise as the exchanges seek to remove volume and the threat of collapse. Raising margin requirements at the bottom the other day did two things
1) ensured that long liquidation would continue for a little while longer
2) move the exchange significantly towards a cash market.
Watch the margin % rates going forward. They should rise from here.
Gold: Where Are We Now? [View article]
Gold: Where Are We Now? [View article]
Gold: Where Are We Now? [View article]
Gold: Where Are We Now? [View article]
Gold: Where Are We Now? [View article]
And everyone talks their book to a greater or lesser extent. Politics is the art of lying such that you can fool people into believing that you are the exception that proves the rule.
Gold: Where Are We Now? [View article]
If you think what I've written so far is conspiracy theory, wait til you read my pending article. ;) Or not, your choice.
Gold: Where Are We Now? [View article]
The Fed Didn't Cause The Gold Bubble - Or Any Other Bubble [View article]
1) the excess reserves at he Fed were perfectly expected by most Austrian School Economists -- pushing on a string? That Money, however, cannot be withdrawn without collapsing the banks.
2) Price inflation is a consequence of money printing. The Fed cannot direct where the money goes... though it is very much trying to do so now with herculean controls over the bond and interbank markets.
3) Yes, when then Fed hold the AMB flat for 18 months then Gold will not be pushed higher in nominal dollar terms... Thanks for making the Austrian point. They are printing now and the demand for Gold is going ballistic. Price will follow once the futures market is no longer setting price, which is now fully in the process of happening.
4) Carrying the Fed's water because bubbles existed before central banking is one of the simply laziest intellectual arguments I've read here at SA. Bubbles can be caused by a number of reasons, in a credit-based economy he who controls the flow of credit has to take the blame for the bubbles excess credit creates.
It is very typical of the authoritarian mindset to 'blame the victim' in this case the victim is the person who reacts rationally to excess credit creation by investing in inflating assets by saying they caused the bubble not the money that was created.
It's like blaming the gun and not the person pulling the trigger.