FROM ANOTHER GOLD BUFF :
I'am thinking about gold because I heard that its at a 20 year low.
Following are excerpts from the article talking about this.
... gold will come back into fashion and become the new "in" play.
Gold will replace "derivatives" as the place to be...
Go back 8 months in time,
someone told you that the following August,
the price of oil would be $21.25, bond yields rise from 5% to 6.25%,
the credit market spreads would widen to decade high levels signifying
severe liquidity problems in credit markets and many of the bank stocks
would be trading 40% off their highs, what would you have said the price
of gold would be today?
$300? - $350? - $400? - $450? - $500?
The fact that the gold price is only $257.30 is ludicrous and makes no
sense, unless you understand that the market has been manipulated to
serve the interests of various bullion dealers, U.S. officialdom,
certain hedge funds and, to some curious degree, the British government.
... until this "collusion crowd" loses their iron hand grip on the
market,
the price of gold will not do what it should be doing. That is the bad
news.
The good news is they ARE losing their grip and the price of gold is
headed
for $500 to $1,000 per ounce...
I firmly believe that the "Hannibal" crowd has made a very big
miscalculation - and that is they very much underestimated what the
normal supply/demand balance is...
... "strain" in the gold market...the 12 month lease rate chart:
cognite.com
"... current crisis is likely to accelerate the dismantling in many
Asian countries of the remnants of a system with large element of
government directed investment, in which finance played a key role in
carrying out the state's objectives. Such a system inevitably has led to
the investment excesses and errors to which all similar endeavors seem
prone."
"Government directed production, financed with directed bank loans,
cannot readily adjust to the continuously changing patterns of market
demand for domestically consumed goods or exports. Gluts and shortages
are inevitable. The accelerated opening up in recent years of product
and financial markets worldwide offers enormous benefits to all nations
over the long run. However, it has also exposed more quickly and harshly
the underlying rigidities of economic systems in which government---or
government working with large industrial groups---exercise substantial
influence over resource allocation. Such systems can produce vigorous
growth for a time when the gap between indigenous applied technologies
and world standards is large...
... as the gap narrows, the ability of these systems to handle their
increasingly sophisticated economies declines markedly."
... lease rates are going up for a reason. Demand for gold far exceeds
supply at the moment. It is a very dangerous situation for the shorts.
They need borrowed gold to be fed into the market place to ration
surging gold demand; yet, ...
It is ironic that the Bank of England, in one of their Abbott and
Costello explanations about the mysterious someone in Britain who made
the decision to sell their gold...
...Who was the brain child in the English Treasury who made this
decision?
Will it be revealed some day that "Hannibal Lechter" actually made the
decision? That will go over big with the English electorate.
"Hannibal Lechter and Co's"...They have bigger problems coming their
way.
It is called "being found out". It is not only the Gold Anti-Trust
Action
Committee that has spotlighted their manipulation. A concurrence of
events
is going against them - and they are a very nervous lot.
..."Hannibals" are being found out in "derivative" land. It is only a
matter of a bit of time before their gold gig goes gonzo. Voila!
... that J. P. Morgan heads up the Counterparty Risk Management Group
with fellow bullion dealer, Goldman Sachs.
The news is that a real "derivative discovery process" is underway...
... That light is shining on the bullion dealer crowd and how they
have used derivatives to manipulate certain markets.
... on the widening credit spreads...hedge fund or other financial
institution investment horror stories that will surface...
... gold will come back into fashion and become the new "in" play.
Gold will replace "derivatives" as the place to be... |
