Still time to buy gold imo. - Page 83 - Economics -- Two Plus Two Poker Forums

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Still time to buy gold imo.

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05-28-2010 , 04:25 PM

#2051

Mrmusicrecorder

veteran

Join Date: Oct 2009 Posts: 3,361

I called (before I was a 2+2er) the S&P AU parity (which came to pass in early '09) and now am calling for NASDAQ AU parity in late 2011.

05-28-2010 , 08:47 PM

#2052

johnnycakes

old hand

Join Date: Jun 2003 Posts: 1,922

Quote:

Originally Posted by Bremen

Ecclectic choice of coins imho

Diversifying my investments....

05-29-2010 , 03:33 PM

#2053

Mrmusicrecorder

veteran

Join Date: Oct 2009 Posts: 3,361

David Rosenberg, chief economist at Gluskin Sheff & Associates Inc on gold and US equities.

Bloomberg 5/28/2010

06-01-2010 , 12:39 PM

#2054

J.R.

Econ Forum Czar

Join Date: Sep 2002 Posts: 8,292

Quote:

Originally Posted by Mrmusicrecorder

David Rosenberg, chief economist at Gluskin Sheff & Associates Inc on gold and US equities.

Bloomberg 5/28/2010

Rosenburg musing on bigger than 3K - link

Quote:

GOLD HEADING TO $10,000 AN OUNCE?

Peter Schiff thinks that is a real possibility — see page 45 of the current BusinessWeek. There is no doubt that when benchmarked against the CPI, money supply and GDP, gold can easily double from here. Demand is always difficult to forecast, especially for jewellery, but we do know that central banks have very deep pockets and bought more gold last year (425 tons) than at any other time since 1964.

The supply backdrop is also highly conducive to a sustained bull market. Mined production is no higher now than it was a decade ago and has fallen outright in 5 of the past 8 years. And, we know what the marginal cost curve is doing because there is so little cheap supply left in the ground that gold companies now have to drill as much as 2.3 miles to get to the yellow metal in South Africa (and all Bernanke has to do is press a button).

06-01-2010 , 05:40 PM

#2055

J.R.

Econ Forum Czar

Join Date: Sep 2002 Posts: 8,292

Quote:

The U.S. mint sold 190,000 1-ounce American Eagle gold coins in May, the largest number since January 1999, and the most in any month so far in 2010, according to a spokesman for the U.S. agency.

Reuters

06-01-2010 , 05:46 PM

#2056

J.R.

Econ Forum Czar

Join Date: Sep 2002 Posts: 8,292

Quote:

This chart shows the annual Federal spending surplus/deficit. I'm still waiting for someone to explain to me how the Government can possibly stop the freefall pattern in this chart? Cut entitlements and defense spending back 50% each? We would still be in deficit spending. Raise taxes? That's the last thing that needs to happen if the Government at all wants to try and stimulate any meaningful, "organic" economic growth.

Please keep in mind that the numbers behind the chart represent ONLY "on-budget" spending items. It does not include the 100's of billions being spent to keep FNM, FRE, FHA, GNMA, FDIC, GM, GMAC, unemployment claims loans to States ($38 billion so far) etc alive....

link

06-01-2010 , 06:20 PM

#2057

J.R.

Econ Forum Czar

Join Date: Sep 2002 Posts: 8,292

Quote:

Simply put, the world works like this: We all have needs to sustain our life, and we therefore all must endeavor from cradle to grave in the satisfaction of life's requirements. Wealth, you see, is anything that can be utilized in meeting our needs to sustain our lives.

Wisdom and experience show that some wealth assets are more reliable and universal. Some are so reliable, and so universal we actually give very little thought to counting them amoung our assets. Take oxygen. Most of us as we walk down the street give this nary a thought. We are oxygen rich! If you don't believe me, just think of what you'd say upon hearing of a scuba diver who ran out of air while exploring some underwater cave. "Poor bastard." At least, that's what I'd surely say.

So, unless we anticipate scuba diving, very few of us take any effort to mindfully or aggressively gather for later use the real wealth of oxygen. And to any primative, or to a resurrected ancient who had no concept of scuba diving, we would surely look like the perfect fool bottling air in preparation for the event.

To keep this short, let me come to the point. We have basic material needs of food, clothing, and shelter. Access to energy could be also be included in the list. To have more than you need for satisfying the immediate demands for survival is to be wealthy. To come up short in the ability to satisfy any one vital need quickly reveals you to be another "poor bastard" in the eyes of the impartial gravediggers.

Fotunately, from the earliest times of our ancestors we have discovered that we don't all need to be meticulous wealth planners like the modern scuba diver, Mt. Everest climbers, or astronauts taking a ride to the moon. We can generally blunder our way through day to day and year to year in the comfortable fact of life that, through the open market--through the ability to trade with others--we can generally obtain what we materially need in one facet in exchange for some of our own wealth in another facet. Food for clothing seems like a pretty reasonable medieval exchange, doesn't it?

We all know the inefficiencies of barter, don't we? As civilization and trade evolved from the dawn of man to the 20th century, Gold revealed itself to be the single most reliable, universal agent that could be traded in various quantities for anything anywhere on Earth. Maybe most remarkable in this is that Gold is not itself something that is needed or consumed in satisfaction of our basic material needs for survival. But due to it being perfectly and uniquely suited for this universal role in trade for any other person's available wealth as necessary to meet our own specific needs, Gold has become such a near proxy for the real wealth we require for life that many of us have permitted ourselves the casual inclusion of Gold into our otherwise strict definition of wealth.

Those in the financial industry have come to call this universal wealth asset (Gold) by the name "money," but that unnecessarily confuses the issue. In their efforts to facilitate various objectives in modern life, those in the financial industry endeavored to master the alchemist's craft--to methodically create "money" from such substances as worthless base metals or from paper. Even the village idiot can clearly see that "the bankers and others" didn't succeed in creating Gold. But the village idiots were never so sure that these nickel coins and paper notes weren't in fact successfully turned into this other thing that the experts called "money." As for me, I'm comfortable calling these lesser creations by the name "currency," and further, I recognize that they can and do serve a useful purpose in modern society. With this distinction I am not so easily baffled as the village idiots into thinking that these currencies created in the image of "real money" can actually attain the superior wealth function of the asset they sought to imitate--that being Gold. And you shouldn't be fooled either.

Every currency made in imitation of Gold goes hand in hand with the financial architecture that supports it right into the trashbin of failed efforts, and are logged into the collective wisdom of those who vow not to be fooled again. Based on the "conception, care, and feeding" of the various currencies and their supporting architectures, the lifespan--or timeline--of predictable rise and fall milestones may vary in length from one currency to another. They may serve a purpose while they last, but they all suffer the same eventual demise at the hands of inflation. Remember, these currencies are man's artificial attempt, time and time again, to imitate Gold for use in modern commerce. They are built for speed--built to be borrowed specifically, and spent rapidly! They are not suitable for saving. For that you must turn to the master--the near-wealth proxy upon which all currencies must bow down in inferior imitation.

So you see, learning how the world works is all about each man coming to the understanding about the real wealth we all require to best ensure our survival. Knowing that Gold is the master proxy for our life's day-to-day and year-to-year shifting requirements for food, clothing, shelter, and energy, it simply makes more sense to gather in Gold for later use than to gather in clothes (that we may outgrow,) food (that may spoil,) houses which are more than our needs, or energy (that we can't store.) You see, time bears witness to this undeniable fact: Gold can be called wealth because it is an enduring wealth proxy in exchange for our life's needs. Currency, on the other hand, serves a specific modern economic purpose--to be borrowed and inflated in placation of man's immediate desires. It is not wealth, it fails as a proxy for the Gold it tries to immitate. Do not confuse the two.

Understanding how the world works is easy as soon as you understand the Wealth Hierarchy. Like this: Earn money/currency, buy what you need, save Gold, enjoy what life has to offer.

Real wealth. Get you some.

a good read

06-01-2010 , 06:59 PM

#2058

Mrmusicrecorder

veteran

Join Date: Oct 2009 Posts: 3,361

Quote:

Originally Posted by J.R.

Rosenburg musing on bigger than 3K - link

Yes, he did say $3,000/oz was a conservative estimate before he was ushered off the picture box.

06-02-2010 , 11:49 AM

#2059

limon

Carpal \'Tunnel

Join Date: Dec 2002 Posts: 6,462

the usmint is selling gold coins like crazy. at first glance this seems to look good for gold but one report i read said they are printing more gold coins than they have in 20 years, if this is true does it change things? why would the usmint be dumping physical gold all of a sudden? the prices have been high for well over a year.

06-02-2010 , 12:03 PM

#2060

J.R.

Econ Forum Czar

Join Date: Sep 2002 Posts: 8,292

Quote:

Originally Posted by limon

Quote:

Originally Posted by J.R.

Quote:

The U.S. mint sold 190,000 1-ounce American Eagle gold coins in May, the largest number since January 1999, and the most in any month so far in 2010, according to a spokesman for the U.S. agency.

Reuters

Slight nit, they "print money" (its a euphemism), but gold is real, you have to mint or produce gold coins from real gold.

==================
==================

Quote:

Originally Posted by limon

the usmint is selling gold coins like crazy. at first glance this seems to look good for gold but one report i read said they are printing more gold coins than they have in 20 years, if this is true does it change things? why would the usmint be dumping physical gold all of a sudden? the prices have been high for well over a year.

Becuase Ron Paul pimps it hard.

The Gold Bullion Coin Act of 1985, which RP introduced, requires the US mint to produce gold bullion coins in quantities sufficient to meet public demand.

Quote:

“(i)(1) Notwithstanding section 5111 (a)(1) of this title, the Secretary shall mint and issue the gold coins described in paragraphs (7), (8), (9), and (10) of subsection (a) of this section, in quantities sufficient to meet public demand

06-02-2010 , 12:10 PM

#2061

J.R.

Econ Forum Czar

Join Date: Sep 2002 Posts: 8,292

US mint running short on silver

Quote:

Production of United States Mint American Eagle Silver Proof and Uncirculated Coins has been temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins. Currently, all available silver bullion blanks are being allocated to the American Eagle Silver Bullion Coin Program, as the United States Mint is required by Public Law 99-61 to produce these coins “in quantities sufficient to meet public demand . . . .”

Just as with Gold, the US Mint is required by law to produce bullion silver coins in quantities sufficient to meet public demand, so when supplies get tight, they stop making numismatic coins (Silver Proof Coins) and focus on minting bullion coins (same thing happened with gold last fall).

Quote:

American Eagle Silver Proof Coins are collector versions of the official United States bullion coins and are only available in the one ounce size. American Eagle Silver Proof Coins are minted at the United States Mint at West Point bearing the "W" mint mark.

http://www.usmint.gov/mint_programs/...e_silver_proof

06-02-2010 , 12:37 PM

#2062

limon

Carpal \'Tunnel

Join Date: Dec 2002 Posts: 6,462

Quote:

Originally Posted by J.R.

Slight nit, they "print money" (its a euphemism), but gold is real, you have to mint or produce gold coins from real gold.

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==================

Becuase Ron Paul pimps it hard.

The Gold Bullion Coin Act of 1985, which RP introduced, requires the US mint to produce gold bullion coins in quantities sufficient to meet public demand.

interesting. thanks.

06-03-2010 , 08:59 AM

#2063

J.R.

Econ Forum Czar

Join Date: Sep 2002 Posts: 8,292

06-03-2010 , 09:26 AM

#2064

J.R.

Econ Forum Czar

Join Date: Sep 2002 Posts: 8,292

Quote:

JP Morgan was nailed in the UK for commingling client cash with bank cash in its futures and options business. Here's the link from Clusterstock.com: $48 Million Fine for Commingling. Please note that, as the report points out, the biggest problem with a big bank commingling assets in a general bank account is that client assets are in jeopardy in the event of insolvency.

This is exactly what is going on with the fractional bullion depository system at the big bullion bank depositories. With depositories, you have "allocated" and "unallocated" bullion accounts. If you read through the GLD prospectus (HSBC is the custodian), you'll see that it is specifically stated that one of the risks to the shareholders of the Trust is the possibility that HSBC commingles the gold (in fact, there are times when the bullion becomes commingled when it is being moved around). In the event of insolvency, the "allocated" account, which would be analogous to a "client" account, is at risk for becoming a general unsecured creditor of HSBC if allocated and unallocated bullion become commingled. The reason being is that the creditors will challenge custody if bullion that should be sitting in an allocated bin is sitting in the unallocated bin. The prospectus specifically warns of this risk.

For the record, JP Morgan is the Custodian for SLV. As such, the whole world, or at least that which is paying attention to the potential fraud embedded in these paper bullion ETFs, has been looking with extreme prejudice at JPM's custodianship of SLV and JPM's extreme paper short in silver on the Comex.

link

06-03-2010 , 10:25 AM

#2065

Borodog

Enemy of the State

Join Date: Jan 2004 Posts: 25,491

WSJ says Gold is a Ponzi Scheme: http://www.zerohedge.com/article/wsjs-hit-piece-gold

lolololol

06-03-2010 , 12:37 PM

#2066

entertainme

The Poker Mom

Join Date: May 2006 Posts: 8,444

Big drop in both gold and silver.

06-03-2010 , 07:08 PM

#2067

J.R.

Econ Forum Czar

Join Date: Sep 2002 Posts: 8,292

Quote:

The big drop in OI in June was due to the massive standing of longs for physical gold:

1. the Friday OI of 13,000 contracts or 1.3 million

2. the exercise of options by gold holders. They were not fooled by the lowering of the gold price by the cartel banks...and then the subsequent loss of 24000 OI gold contracts due to the fact

that these guys stood for and received their delivery slips. Only the almighty will know if these delivery slips have real gold in them or they are just a piece of paper with no gold behind them.

Thus so far, 18,230 contracts of gold have been served upon. If this is not a typo then this is a massive amount and my bet is that this will surely bust the comex.

This is not all the story: there are 6497 contracts still remaining to be served or 650,000 oz of gold:

The open interest in JUN gold is 6,497 contracts or 0.65 Mozs.

Thus total amt of gold standing for June is 650,000 oz (left to be served) + 1.823 million oz (already served) + 204,000 oz from options exercised in May = 2,677,000 oz of gold.

I will wait for tomorrows reading to confirm this total. I may be out by 200,000 oz due to the OI figure is always 24 hours back.

Tonight is the first data that we received so far in June and the exchange clearly hid a lot of longs who decided to exercise.

...

Quote:

The open interest in JUN gold is 6,497 contracts or 0.65 Mozs. With the delivery notices issued the total gold standing for delivery could be 2.5 Mozs. BINGO! This is 77% of the dealer inventory of gold! We have never seen anything like this before. This is stunning. I don’t see how the dealers are going to handle this demand. They will be left with almost nothing. This could be the breaking point for the Comex. Watch this space.
Cheers
Adrian

Harvey Organ and Adrian Douglas think June could get frisky on the COMEX

06-03-2010 , 07:45 PM

#2068

limon

Carpal \'Tunnel

Join Date: Dec 2002 Posts: 6,462

Quote:

Originally Posted by Borodog

WSJ says Gold is a Ponzi Scheme: http://www.zerohedge.com/article/wsjs-hit-piece-gold

lolololol

You know in general I don't cosider gold a good investment. You're better off in fake markets that can be traded up w/ assets that can be leveraged. But I do beleive one should keep about a pound of physical gold because if it ever came to pass that all of your other investments went to 0 the situation would be such that the pound of gold would have the equivilent of a million in buying power.

06-03-2010 , 07:45 PM

#2069

Borodog

Enemy of the State

Join Date: Jan 2004 Posts: 25,491

Ruh roh.

06-04-2010 , 12:41 PM

#2070

Nitrub

Pooh-Bah

Join Date: Mar 2008 Posts: 4,386

wow gold skyrocketing

06-04-2010 , 01:17 PM

#2071

J.R.

Econ Forum Czar

Join Date: Sep 2002 Posts: 8,292

New high gold price in euro

Euro falling, breaks 1.2

Hmm, flee euro, buy dollars. But also buy gold. Gold is near nominal all-time high in dollars, as the dollar and euro are both continuing to fall relative to gold. Exchange rates are the relative speed of modern fiat currencies' fall over time.

06-04-2010 , 01:22 PM

#2072

Bigdaddydvo

King of the Politics Forum

Join Date: Aug 2004 Posts: 21,329

Exponential: Gold in Euros

My oh my that's a purty chart.

06-04-2010 , 03:01 PM

#2073

Nitrub

Pooh-Bah

Join Date: Mar 2008 Posts: 4,386

unreal im unable to buy gold. im always thinking i could have gotten it cheaper, now is too late etc.

if all goes well in the bank and i wont have to pay taxes from my poker income i will just shovel all the money into gold and think about how US players who have to pay taxes to make myself feel good.

...profit?

06-04-2010 , 03:14 PM

#2074

J.R.

Econ Forum Czar

Join Date: Sep 2002 Posts: 8,292

Quote:

Originally Posted by Nitrub

if all goes well in the bank and i wont have to pay taxes from my poker income i will just shovel all the money into gold and think about how US players who have to pay taxes to make myself feel good.

...profit?

where do you live? What is the tax situation like wrt PMs?

The USA play:

06-04-2010 , 03:34 PM

#2075

Nitrub

Pooh-Bah

Join Date: Mar 2008 Posts: 4,386

Quote:

Originally Posted by J.R.

where do you live? What is the tax situation like wrt PMs?

estonia, i dont know what wrt PM means but i do know that i need to buy 6 of those 100g minted ingots. (only choice i have others are out of stock, this should be fine right?)

gambling was completely unregulated until this year but even now the law says "winnings may be taxed".

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