cheapybob

Gold: The Last Carry Trade

I think the Central Banks have signaled that the suppression of gold prices is no longer their top priority. I don't expect we'll see gold sales from them as was done in the past because that would put them in a position of increasing their dollar reserves. I've also read recently that they are both not leasing out more gold, and refusing to roll older leases. Much of the supply in recent years has been from those leases and gold sales. Now the supply will be what the miners produce, which is a lot less. That explains the shortage of physical gold. As for why the price of paper gold is dropping, I thing its due to the deleveraging going on. Eventually, I think the price will rise to reflect supply and demand.

Gold’s 'Grand' Illusion

Chavez or another country disenchanted with the confetti paper dollars will buy all the IMF gold they want to sell, and that will be the end of that argument. The dollar has no where to go but down further, IMO, until the real budget (ie including the war and SS money) and trade deficits end.

The Myth of Gold as an Inflation Hedge

IMO, Gold will eventually catch up with the printing presses.

Gold: Too Volatile to Be a Safe Investment

IMO, Its the US DOLLAR that is TOO VOLATILE to be considered as a safe investment, and it is in a downtrend to hell due to the structural trade and budget deficits.

At least gold is in a long term uptrend and has fundamentals that support its rise.