cihat

Manipulation of the Gold Market

I totally agree with GATA there is a secret war to keep the gold price under control.
That is exactly why G20 meeting they declared to sell small amount of gold (it is peanuts but word gives a lot of scare to people who want buyers to get scared)
My logic is simple:
1- If gold is a bad investment and not paying dividends and interest, why all central banks (top 10 gold holders are also top 10 economies or IMF itself) holding all that gold?
2- If gold is over valued as some claim it should be down to 600 USD an ounce, why are all these central banks not selling their stocks now at 950 USD and buy it later when it is down to 600USD ?
All commentators stating gold is not worth maybe twice as much, please reply above 2 questions..

I would be even more scared if our counties central banks are ran by stupid people not to make money buy selling their gold at 950 USD... and Chinese as the biggest buyer of gold recently should be all stupid to do so...

Congress to Approve IMF Gold Sale This Week

Why...
Do you think G20 decided to sell IMF gold? instead of giving poor countries couple of Billion US dollars printed with fresh ink. This money is lot less than allocated to GM.

My guess is, they are all scared... as they all decided to print bills that their only real enemy is gold and commodities which are real and will show the true face of inflation they are creating.... Just look at USD vs. Euro parity is now 1.43,
But when Europe starts printing also what will happen? Euro will go down or USD will go up. In the end they will end up as
both printed a lot of paper money with no change in parity...
Their Only enemy is gold as they can't print gold and it will show the real devaluation of all their currencies...
So 20 countries which normally cannot agree on anything, agreed on selling gold...But now with a lot of Central Bank buyers... is not a good sign that they looked for...Their aim was to scare people to dump their gold (physical or digital) and lower the price of gold....
I am not helping them I am helping myself and buying as much as I can since it was 750 USD an ounce and tonight possibly will brake 1000 USD...

Gold Battle Lines Drawn at $1,000 - Again

Gold hit 973 USD an ounce as I write this mesage..
27 USD an ounce later we will hit the 1000USD for the 3rd time in a year............ so this is becoming a resistance level in a few months....
I am an importer and most countries quit giving prices in USD and started giving price quotes in Euros..(which is also risky but not as much at the moment compared to USD)
Can you imagine an Australian Company giving quotes in EUROs?
This is the worst real life blow to USD... so I would not bet on low gold prices anymore as long as its price is determined in terms of USD...

Gold Battle Lines Drawn at $1,000 - Again

Gold will go up past 1000USD so fast you will all be astonished...

How do I know?
1- Platinum is above 1000USD for years and it is well accepted by everyone... why shouldn't gold be accepted... METAL is METAL

2- It is not gold gaining value, it is USD losing value...Investor Faber said US inflation will be something close to Zimbabve...
Gold value calculated in USD, in that case even 960.000.000 USD Ounce (960 Million USD an ounce is possible) Zimbabve's annual inflation is %273 Million...

Now.. DO you also believe that we will be above 1000 USD very soon!!!

YES but you will probably have to spend 1000 USD to fill gas in your cars tank.....Don't blame me it is the famous Investor FABER who claims this, I am just calculating for you to see....

Gold and Interest Rates Climb

very good article...
Governments have no choice but to pump positive impression to their countryman, and continue their basic function of surviving banks ...

Did you ever wonder why governments don't sell their own bonds directly to buyers, but go through banks and give them commissions ??

Why Gold Enthusiasm Is 'Cool' Again

By the way ths IMF gold sales did you ever bother to calculate how much it will be?
1 Metric ton = 32150 Ounces
If they sell 403 metric TOns (G-20 Meeting) mentioned
403 tons = 32150 x 403 = 13 Million ounces
13 Million ounces x1 ounce 950 USD = 12,3 Billion USD TOTAL

Assuming only TARP was 700 Billion USD , IMF Gold sale of 12,3 Billion USD is only Peanuts... Even Turkeys 3 month deficit is more than that amount....IMF gave more than that to even under developed countries...

If IMF sells all of its gold holdings 98 Billion USD (3200 Tons) it is still peanuts compared to TARP,
as there is so much paper worthless money from all countries flying around us.... I hope they sell it and we can buy more of it in the feature...If China and Russia don't before us...

I tell you what, if everyone asks and gets their gold in Physical Gold, Gold will be above 6000USD an ounce Today.....
The gold bought and sold on forex etc. with 400 times leverage does not exist on earth....

IMF Gold Sales is only a scarecrow when you calculate it !!!

Why Gold Enthusiasm Is 'Cool' Again

I think there is a point missed:
These are not ordinary times, we are going through the worst recession and the only global recession of our lifetime.
So it is very wrong to treat technical charts etc. as if this is a normal market movement period.

The only greens seen are a result of one time TARP, incentive packages, spendings etc. which I was expecting to happen..
We call it ..wellness observed just before death....

This is like a bankrupt person finding an extra 10.000USD, so we cannot judge him with the times while he is spending the last 10.000 he found.

I personally expect that, we are not even at the beginning of the real destruction to come. If this was all, I would fire all the economy professors at the universities who scared all of us for nothing..(US jobless rate is still less than the small economic slump a few years ago)


So finally although gold hit 960 an ounce today it is merely a result of USD loosing value against Euro etc.

Can you guess what will happen when Euro and Yen also start their collapse in a year??

In local Turkish currency I did not make a penny yet gold going from 750 to 960 USD an ounce.. A gold coin worth 320 TL is stil 320 TL.

Real profit in Gold will begin when my country will also get to the point of printing its own money. They will have to, because they can't compete with a over valued currency and continue exporting like before..
Current decline in USD is all investors run away from USD.
.Buy anything but not USD..

Oil, Gold, Coffee, developing country stocks (after all stocks also have 'real assets' owned by their companies).. Soon this run will evolve into run away from all currencies and buying anything tangible they can find...Even houses will appreciate in value within 6-9 months due to 'Desired but not announced' inflation to explode worldwide...

Gold Should More than Double in Next 6 Months

Gold is like a house if you sell and make a profit you lose the house but you can probably buy 2 houses with that money as long as you are not in love with your house.

I bought my house 14 years ago for USD 110.000 and sold it a month ago for USD 400.000 (if I sold it day before lehman I would have made USD 600.000 for it).

Yes gold doesn't bring dividends, but you can sell as much of it as you want or use it as a collateral to get any credit you want to use..

So what I did I bought gold at 750 USD and today it is 930 USD an ounce. Guess what... come September I will by 2 houses with the money I doubled. Because not only gold will go up, also house prices will keep coming down due to credit crisis...(I won't have credit crisis because I have gold collateral)

When I bought this house I sold my Coca Cola options given to me by my employer...

So yes it is a risk, but life itself is full of risks...

Some don't go out not to catch cold..some climb steep mountains in winter.. If you can't take the pressure stay at home and get your dividends..or even more secure buy US bonds of 10-20 years at 3 percent annual...By the way my country pays %12 annual for USD bonds it issued in 1995 and still paying on time every 6 months...even that is not hot enough fun for a Turk...

If Gold Bugs' Fantasies Came True

Just during the September crisis (
8 months) USD went up from 1,2 to 1.8 TL - that is 50 percent.
Plus the house prices fell %20 in local currency.
SO if you had a house selling for 100.000TL( 83000USD) is now 80000TL(44444 USD) and if you were holding US Dollars (or gold -as Gold is USD valued) you bought the same house.for almost half the price (I expect house prices to fall another %10-20).

So it wasn't the end of the world people who have it are buying, and who don't are very happy that they found a customer with cash...

My point is: Even if you didn't have 'gold' than and still Dollar can cause similar problems as well

As Banking Reality Sets in, Gold and Silver Look Good

In Turkey banks are offering GOLD savings accounts where your money is guaranteed by government up to 30000 USD per account just like FDIC in USA. You can buy from one gram up and another bank also gives you annual 1% in gold for your gold savings account.
These banks have to keep physical gold to meet their obligations.

However my question is, in FX (Forex) there is a leverage of up to 500 percent, you can buy or sell gold with 1000USD gold worth 600.000 USD. These forex speculators are determining the gold price, by short selling and leverage buying or selling, which I believe don't use physical gold but just beting on it.
Daily forex amount is 3 Trillion USD or equal to 3 months volume of Dow Jones, to imagine their effect on real prices.
I see them, as the reason for high volatility in these markets.

I wonder what the price of imaginary FOREX Gold will be if there was no leverage buys and sells involved. And I also question if there is that much physical gold existing at all...

Normally gold demand increases at this time of the year as marriages and harvest in India, Turkey etc. So the fall mentioned by Peter is due to Speculators going on vacation who barely hold physical gold at all.

Cihat

China Stirs a Pot of Gold

Why did China announce that they accumulated gold after they kept it as a secret for many years?
The announcement was intentional, their warning message to USA 'if you keep printing USD we have an alternative and we were expecting that US would do that and already started to take preventive action by hoarding our own gold'

Bailout money, zero interest etc. will definitely fire up the economy for a short time...
This is like squirting kerosene to firewood, there will be a bright violent fire but will last very short and will not heat..
How many cans of kerosene USA has left before it runs out of them..
Inflation is a short term solution and cannot be sustained, otherwise it feels excellent to live in a high inflation society, believe me I lived for 30 years in an high inflationary environment... We were able to keep it running for so long with IMF interventions .. about 15 times.. Than we hit the wall and swallowed the sour pill...

My friends there is no easy way out of this recession, if you get out of it quickly, you will get back to another recession following this one very quickly..

My Suggestion: Act smart like central banks and place %10-20 of your savings in GOLD.

How to Protect Yourself from a Falling Dollar

Forex allows you to deposit 1000 USD and buy or sell 200000USD (leverage 200 times) worth of gold/currency with it.
As more and more Forex brokers are adding Gold among their instruments, I expect at some point there will be more paper gold traded up or down, than the physical gold available.
I wonder if 150 USD oil purchased ever existed in that quantity.