De Graaf

Nouriel Roubini, One on One: More Doom and Gloom

Roubini is a smart guy. Having said that: He's schooled as a Keynesian and so you can't blame his ignorance for gold aswell as the fact that he concludes that the current spending policy has saved us from depression....

Look outside, look at the Hoovervilles poppin' all over America, look at the U6 unemployment... no depression like phenomenons?

I think he should make a move towards Austrian economics. Never too late to learn some more in my opinion. Roubini is still young compared to Summers. He should retire instantly...

Dow Breaks 10,000 for 26th Time While Gold Shines

Well Jeff, I couldn't agree more with your writing. In fact, since I follow you, you make more than simple sense. Its valued.

Sound advice and keep it up!

A Fed Official That Actually Makes Sense

Good article. Love the sarcasm.

Keep it up.

Reviewing the 'New' Kid on the Gold Block

"The key change ETFs have brought to the market is transparency."

Thats a rather bold statement don't you think?

"The ETFs, by reporting their balances daily, now provide a small window into the activities of private investors."

This is no transparacy, this is a tiny window of volume. With HFT and custodian bankers around the block, volume means nothing these days.

Where my real value ! ;))

Gold: The Only Remaining Bubble?

In his dream he nailed it. In reality, he's way off.
But hey, only money historians know that, right? Or you rather prefer them to be Goldbugs? Fine by me.

Alan Attention Getter!

Hedge Fund to Measure Returns in Gold Rather than Currency

DiggerUK,

So you do not support them, but you are very keen in following their moves. Still not convinced?

GATA has been investigating the issue since 'start of mankind' so to speak.
You don't believe them, but you do read them is what you imply.

Maybe start believing it, otherwise you shouldnt post this kind of support for GATA.

Wake up son

De-Leveraging Is Not Deflation

Reading this article, I fully agree with everything you say about inflation and deflation as long as you make the difference between two types of deflation, namely; monetary deflation and asset deflation.

Your topic should be named either;
Deleveraging is NOT monetary deflation, or
Deleveraging is asset deflation

Thats makes your critics close up instantly, as you have shown them full understanding of the word deflationary.

Five New Forces to Drive Gold Higher

Dollar bugs...Whuahhaha

In order to survive with the fittest, you should consider becoming a Gold bug.

I didn't know the dollar bug still existed after all this evidence shown recently in US markets. The dollar is going banana's.

Dream on dollar buggiezz

Debunking the Gold Bears' Main Argument

Sure NWM, keep spinning!

You tend to live in a world of your own. One that is predominantly occupied with dollars while the rest of the world is tossing monopoly money you reckon' right? Get outta here.

The dollar is at its utmost unreliable period in history and you argue that that currency still is reliable. Who's spinning wildly momentarily? Not us.

You were wrong about golds rise against a basket of world currencies, and your drifting again with this egocentric American attitude as if other currencies don't matter. Maybe not for you, but we surely do. Profitably that is.

Go Nowhere and listen to that Man.

Gaza War: Expect a Spike in Oil, Gold

A lot of people a truly blindfolded, as I read these comments.
Just by saying that a dollar will rise in times of war, could be true, in case of severe ground war in oil-rich nations.
Not when a few thousand troops and a handfull of tanks march into a dense populated Gaza strip! The fact that oil will rise for this matter is just fear mongering, and minor in effect after the speculation dimms out in a few weeks.

As for commenter NOWHEREMAN, who says gold didn't rise against all currencies, I would say; wake up and get your sources right!
Look at the link below, where James Turk shows a nice table of gold relative strenght against all major currencies.
Its is concluded that gold rose double digits against these projected currencies, even on basket average!

goldmoney.com/en/comme...

For every sole soul outthere; Gold will rise and the Gaza war will help temporarily, but not with oil prices of 70 / 80 dollar a barrel. Just 50 at max for a few weeks. Then its falls back again. Gold thrives on the deflationary force in the economy combined with the (hyper)inflationary policy of the FED. Oil has minor influence at this point in time.

brgds

Don't Miss the Coming Gold Bull

Central banks are not selling gold beyond their agreements which is due in 2009. There is a mere 150 tons to be sold under the agreement but a lot of CB's have already stated they will not sell gold or supply gold for their mints at this point. Thats one of the reasons the mints are out of coins. Central Banks are hoarding their gold.

If a country decides to sell gold, it will be sold over the counter (read; without market interference) to China, India and the Middle East. Those are countries with low percentiles of gold diversifications in there reserves.

IMF and/or Central bank selling (apart from the gold agreement II) will not alter the price of gold, unless a JP Morgan is involved with a concentration of shorts backed by US Fort Knox (FED) gold reserves. For more information read GATA.com.

brgds,

President of Euro Pacific Capital on Gold and the Dollar

The first thing that catches me reading this interview with Peter Schiff, is the tone of the interviewer, Norman. Its absolutely negative. Total disbelief in Mr. Schiff.

Its obvious that Norman does not have a clue how this crisis evolved, considering his questions. He can't even place the asset deflation in the private sector in the same equation of the inflationary policies of the Federal Reserve. A little sad to see that Norman does not have its facts mind lined up the right way the market moves.

Let me explain this to you Norman, though I'm not always fond of the way Peter explains all of his doom and gloom, he is right.

The asset deflation we saw this year, especially since August, is caused by deleveraging. Banks, institutations, hedgefunds and investments funds/banks use 10 to 1 and even 35 to 1 leverage for investing and lending. This money was active in the private sector.

Ok, now when you have a credit crisis, with the relating lack of confidence in the financial markets. Banks tend to stop lending to eachother not knowing who has the toxic assets on their balance sheets. The result is a stop on interbank lending. Money flow halts and the money supply and velocity rapidly contracts.

The toxic mortgage related assets on investment bank balance sheets, take their tole, requiring money to keep the reserve levels intact. The risk taken was to large and so good assets are being sold to cover the losses on the balance sheets. This triggers customers (other banks and vehicles) to start selling their good assets, resulting in a firesale considering the huge amount of money being spent in the economy per dollar on balance. (leverage). This phenomenon is also known as asset deflation. (not monetary deflation)

Now, the FED policies are based on supplying credit to the markets, like they did under Greenspan after the dot.com bubble to stimulate house ownership. The results today are overpriced houses.
The current policy is again supplying excess credit to the markets, to stimulate the US economy that already has an overspent consumer based on debt. The economy runs on consumer demand for 70 percent of US GDP. Thats bad Norman like Peter points out, despite the monotone prayer.

So to finalize this for you Norman, for once and for all;
FED policy = inflationary
Financial system deleveraging cycle(s) = (asset) deflationary

Inflation + deflation = 0
($3 trillion) + (- $7 trillion) = - $5 trillion and thus deflationary.

Does the equation ring a bell Norman?

brgds.

Four Reasons for an Immediate Rise in Gold

Aitvaras has a point with regard to the ETF's.
If we see another wave of asset deflation, like we had in 2008 and especially since August, then we are likely to see the ETF's dropping as they are representing paper gold in dollar denomination.

That is one of the reasons, gold could go down, if the FED's inflationary policy does not result in proper countering of the deflationary forces in the private sector.

But, having said that; I tend to feel we have an true secular bull for gold and silver. Inflation will rule in the end. Big time.

brgds,

Four Reasons for an Immediate Rise in Gold

I couldn't agree more. Nothing to add to your four points except for the deflation aspect of the equation.
If deflation gets grip on the world economies, than we have a different situation for gold. History show gold goes up in deflation, but that was when were still on a gold standard. This era is somewhat different.

Basically, when monetary deflation rapids, gold could be going down, as people tend to flee to the fiat dollar currency. But my senses are with you for inflation and a great appreciation of gold and silver assets.

brgds.

Enlightening the Gold Bugs

Caffee needs coffee.

Cash is king for now but goes bananas. Banana republic that is.
Gold is holding strong compared to other asset classes, but eventually will un-tie itself from arguable manipulation efforts.
One day, the rush will come and so much more, you'll be begging to convert your (possible) short position into long gold.

Wake up Mark...
Waiter! Another coffee for this Caffee guy please,

brgds.