Recent Market Activity: Gold, USD, China and Japan's Sovereign CDS [View article]
gold crashed not because of volcker. there were many reasons: 1. burst of oil bubble 2. gold finished its bull run, reached its theoretical value according to gold standard. 3. china began to export deflation 4. IT revolution 5. rising stocks and declining gold mega trend.
volcker won't be effective now. some other volcker will be effective only when gold will have finished its bull run.
Weekly Recap: Is the U.S. Going Bankrupt? [View article]
technicals can go to very extremes for extended period of time. we're facing unprecendented situations. black swan if you will.
the upside in gold(gold miners) is so big that we shouldn't be worried any short term corrections if any.
the gold miners have underperformed gold but also put them right at the sweet spot now, meaning there's not much downside as long as gold stays above 1050 and they're fully levered to the rise of gold price.
Gold's Big Secret - No One's Actually Buying [View article]
mutual fund managers in china are known to prop up stocks that they bought using their own money under someone else' name.
i wouldn't be surprised that those managers at PBOC who make buy decisions of gold run their own commodities pool trading gold futures, confident that their 2 trillion dollar arsenal is more than enough to prop up anything they trade.
so the china "put" is quite real in this sense.
i heard there was a quite sizable pool put together by three well-connected rich businessman in shenzhen focused exclusively on gold and gold mines.
there's only one way to value gold, which is calculating gold's theoretical price based on gold standard. if we use USA's M0, its theoretical price is above 3000/ounce. if we use M1, its theoretical price is above 6000/ounce.
in 1980, when gold shot up to 800/ounce, it is between the M0 and M1 theoretical prices!
The Arithmetic of Gold: Why Its Price Has No Ceiling [View article]
whoever comments on gold please get the facts straight. central banks only have 30000 tons of gold. the fed has 8000 tons, china's central bank has 1000 tons. at today's price, china's fx reserve can buy around 60000 tons of gold, that's 30 years of world's production.
the world only has around 150000 tons of gold ever mined since the big bang.
Faber: Gold a Better Buy than at $300/oz. [View article]
Recent Market Activity: Gold, USD, China and Japan's Sovereign CDS [View article]
there were many reasons:
1. burst of oil bubble
2. gold finished its bull run, reached its theoretical value according to gold standard.
3. china began to export deflation
4. IT revolution
5. rising stocks and declining gold mega trend.
volcker won't be effective now. some other volcker will be effective only when gold will have finished its bull run.
Gold and Silver Continue Their Ascent [View article]
so the rest of the world competed for the rest, about 1000 tons.
guess what the price would be when the much more affluent european, american, japanese start to buy gold.
Weekly Recap: Is the U.S. Going Bankrupt? [View article]
the upside in gold(gold miners) is so big that we shouldn't be worried any short term corrections if any.
the gold miners have underperformed gold but also put them right at the sweet spot now, meaning there's not much downside as long as gold stays above 1050 and they're fully levered to the rise of gold price.
3 Reasons Not to Believe In Gold's Recent Rally [View article]
Gold Transforming into a Completely Demonetized Wealth Asset [View article]
Gold Transforming into a Completely Demonetized Wealth Asset [View article]
money is asset and wealth of course. asset may not be money.
India Needs to Get Aggressive with Its Reserves [View article]
Gold's Big Secret - No One's Actually Buying [View article]
www.news.com.au/story/...
japanese,europeans, americans are 30 times richer than the indians!
Gold's Big Secret - No One's Actually Buying [View article]
i wouldn't be surprised that those managers at PBOC who make buy decisions of gold run their own commodities pool trading gold futures, confident that their 2 trillion dollar arsenal is more than enough to prop up anything they trade.
so the china "put" is quite real in this sense.
i heard there was a quite sizable pool put together by three well-connected rich businessman in shenzhen focused exclusively on gold and gold mines.
Gold's Big Secret - No One's Actually Buying [View article]
A New Way of Valuing Gold [View article]
if we use USA's M0, its theoretical price is above 3000/ounce. if we use M1, its theoretical price is above 6000/ounce.
in 1980, when gold shot up to 800/ounce, it is between the M0 and M1 theoretical prices!
The Arithmetic of Gold: Why Its Price Has No Ceiling [View article]
the world only has around 150000 tons of gold ever mined since the big bang.
Gold Supported by Fed Statement [View article]
The Short and Long Term Outlook for Gold, Silver [View article]
it was not over valued in 1980, neither is it today!