don't worry, until the new boyz buy up all the physical, leaving the old boyz with the paper
155,000 tonnes of above ground gold is around 5,467,000,000 ounces, @ the dirt cheap 900 USD price, is USD 4,910,400,000,000 dollars (4.9 trillion), entirely affordable once RMB appreciates 100% against USD, a sure thing, assuming Indians will sell all of their gold at current chump ask/bid.
BTW, here is something someone said, I found in my in-tray, about gold and manhattan apartment:
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Monday 14th January 2008
Gold Value of Manhattan Apartments Sinks, Despite Spike in US Dollar Terms - My thanks to a subscriber for this informative article and compelling graph by Julie Satow, published by The New York Sun. Here is the opening:
The value of apartments in Manhattan is plummeting, even as the price of apartments in dollar terms has, according to several reports by real estate firms, soared to record highs.
The average value of a Manhattan apartment over the past six years has plunged nearly 39%, to 1,727 ounces of gold, even as the average dollar price of an apartment in Manhattan over the same six-year period has nearly doubled to $1.4 million, according to figures in several real estate reports published today for the fourth quarter of 2007.
None of the reports from the real estate industry values the apartments in gold, but the gold value of apartments - and other assets - is being glanced at more frequently by sound-money advocates, and others, as the Federal Reserve governors scramble to deal with the credit crisis by loosening the monetary reins, a policy underscored in minutes the Fed released yesterday of the December 11 meeting of its Open Market Committee.
"I expect a huge collapse in Manhattan real estate, with apartments in New York City losing 90% of their value in terms of gold," the president of financial brokerage firm Euro Pacific Capital, Peter Schiff, said. "The dollar is a deceptive way to measure the value of any asset, because the dollar itself is losing value, so prices have to rise just to stay constant."
Despite the fact that the Manhattan real estate market is losing value in terms of gold, it set records in the fourth quarter in dollar terms. The average sale price jumped 17.6% over the prior year quarter, to $1.44 million, while the average price a square foot increased 18.2%, to a record $1,180, according to Prudential Douglas Elliman.
My view - Desirable tangible assets in finite supply have generally been a good hedge against not only the US dollar but all fiat currencies. However the relative price performance of these assets to each other is seldom constant and changes in line with fashion.
It is no secret that gold has been edging its way back onto the investment stage since 2001, in a move initially regarded with scepticism by most investors, but which has gradually attracted more participants, not least in recent months.
A relevant question is: How long will gold's uptrend last?
No one can know for sure but this 50-year chart of gold in US dollars, adjusted for CPI inflation, offers some perspective. Gold is experiencing another momentum move within this recovery but it would be premature to speak of a bubble.
Of course gold is not just rising in US dollar terms. Here is a long-term chart of gold in Swiss Francs and also gold in Chinese renminbi. In fact, gold is appreciating against all fiat currencies, as you will be able to see in the Subscriber's Chart Library. Additionally, gold is currently appreciating against most investment assets, as you can see inversely on this chart of the Dow divided by gold.
However no trend ever moves in a straight line for very long so we need to understand and monitor the current price action.
To see these most clearly, have a look at this weekly chart showing gold on a log scale. You will see a series of long, ranging consolidations, followed by momentum moves to the upside lasting several months. It is not unusual for trends to develop consistency characteristics for behavioural reasons. Of course they do not always do this so what I say below is only an attempt to guess as to a possible roadmap for the gold price over the next few months.
I suspect we are currently experiencing an approximate replay of the advance evident from September 2005 to May 2006. My guess is that the yearend 2007 consolidation evident in the $800 region was the equivalent to either the pause just above $500 in late 2005 and early 2006, or it could more closely resemble the consolidation mostly evident above $550, before the final surge to the May 2006 peak.
If the former, we will probably see another pause before long, perhaps in the low $900 region. If the latter, gold will probably accelerate higher without a ranging pause, on its way to another spike peak. Of course we do not know what all the influencing factors will be in the weeks and perhaps months ahead.
Assuming they remain mostly neutral to bullish, gold could form a series of sideways consolidations (steps) within its current medium-term trend. You can see three of these in the earlier advance culminating in May 2006. However speaking as someone who remains long, I would not like to see gold fall back into a lower trading range step. Also, I would not like to see a much larger, churning range, relative to what we last saw at yearend.
Meanwhile, my strategy consists of trailing stops, which I would hopefully tighten in the event of dramatic acceleration. I may do a bit of Baby Steps buy-low-sell-high trading with my futures positions, as I have with silver. When the current momentum move ends, I would expect no worse than another medium-term consolidation within what I maintain is a secular bull market.
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