hello admirable_p, i am of two minds, and i just changed my mind :0)
- i had always favored gold bricks over gold mining since my engagement to gold in 2000;
- it was always about trading gold shares and options to enable the profit for more gold bricks
- i agree that gold shares are simply good value, and at the sorry end-game, gold shares shall be valued for their attributable gold underground as opposed to measured per PE ratios and dividend rates
- however, in the mean time, i must stay true to the game that has done well, even this year, the year of the great gold correction, when gold is up and not down
- especially now, for we are w/i 3-6 months of either QE3 all around the planet and/or street riots on every block
- iow, this is no time to sell gold
- this is a time to getgold
just cleared from tray
From: J
Sent: 2011 10 11 5:29 AM
Subject: RE: Comments - Week of October 10 - arise, ye workers from your slumber
i shall stay true to the script as dictated by long held fundamental / base case premise that is tracking so well that i am even getting scared
- successive rounds of qe that progressively vanquish enterprise
- more easy money for less that reward first-in-line speculation
- entitlement and trap-door social contracts that enervate industry
- enveloping limits of true freedom and devolving politics against genuine liberty
- rule by making up ever newer laws
- lies, spin, more lies, and more spin
- "just one more time, and we promise to be better", cry just about all
- "let's look at what THEY have in THEIR pockets", shout by the many
- "get organized", and
- so starts the spark that set off the prairie fire storm
- class struggle next
- land reform soon enough
under the circumstances, we must stay true, track steady, see clearly, and think real.
hymn.ru
Arise, ye workers from your slumber,
Arise, ye prisoners of want.
For reason in revolt now thunders,
and at last ends the age of cant!
Away with all your superstitions,
Servile masses, arise, arise!
We'll change henceforth the old tradition,
And spurn the dust to win the prize!
So comrades, come rally,
And the last fight let us face.
The Internationale,
Unites the human race.
So comrades, come rally,
And the last fight let us face.
The Internationale,
Unites the human race.
No more deluded by reaction,
On tyrants only we'll make war!
The soldiers too will take strike action,
They'll break ranks and fight no more!
And if those cannibals keep trying,
To sacrifice us to their pride,
They soon shall hear the bullets flying,
We'll shoot the generals on our own side.
So comrades, come rally,
And the last fight let us face.
The Internationale,
Unites the human race.
So comrades, come rally,
And the last fight let us face.
The Internationale,
Unites the human race.
No saviour from on high delivers,
No faith have we in prince or peer.
Our own right hand the chains must shiver,
Chains of hatred, greed and fear.
E'er the thieves will out with their booty,
And to all give a happier lot.
Each at his forge must do their duty,
And we'll strike the iron while it's hot.
So comrades, come rally,
And the last fight let us face.
The Internationale,
Unites the human race.
So comrades, come rally,
And the last fight let us face.
The Internationale,
Unites the human race.
cheers, j
From: S
Sent: 2011 10 11 3:09 AM
Subject: Re: Comments - Week of October 10
Having the squid on board with the gold makes me nervous
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On Mon, Oct 10, 2011 at 11:56 AM, B wrote:
goldmoney.com
Goldman bullish on gold price2011-OCT-10
 The decision by European central banks to expand their “financial easing” programmes could provide good support for gold and silver prices in the foreseeable future. After the Bank of England (BoE) announced a further £75 billion of quantiative easing last Thursday (to bring its QE total to £275 billion), the European Central Bank (ECB) announced a plan to provide unlimited liquidity in the form of loans with a one-year maturity. This is designed to prevent a new liquidity crisis in interbank and credit markets, which would lead to another recession affecting economies all over the world.
Analysts at Goldman Sachs said in the past week that precious metal prices are likely to correlate strongly with record-low interest rates in western industrialised countries after their sharp price correction. The rally in gold prices is in their view primarily fueled by low interest rates worldwide. This dynamic remains unchanged, despite the recent selloff in the precious metals sector. Given all the problems afflicting the eurozone, many market participants are convinced that the ECB will lower its key interest rate for the eurozone by 25 basis points (0.25%) when its Council members next convene. ECB President Jean-Claude Trichet said last Thursday that commercial banks in the eurozone could expect generous liquidity injections by the ECB. To achieve this goal, the ECB restarted its tender procedure, which will provide regional commercial banks with unlimited loan facilities for refinancing purposes with a maturity of one year in October and December.
Goldman also point to the significance of the current interest rate environment in the United States in encouraging gold buying. The US Federal Reserve kept its key interest rate constant at 0% to 0.25% over the last three years, but record-low interest rates have not led to a sustained revival of economic activity in the United States. Rising inflation has instead resulted in negative real interest rates in recent months, with investors on financial markets and small savers fleeing into gold and silver for investment purposes. This trend will likely continue, since central banks like the Fed, the BoE and the ECB are trying to devalue the currencies they issue in order to promote exports and lessen the real value of existing debt.
However, there is barely any alternative to the adoption of more QE measures by central banks, assuming that the goal is to prevent the existing global financial system from collapsing. The continued monetisation of outstanding debt in both private and public sectors is leading to turbulence at the currency markets. After the BoE´s announcement last week of more QE, sterling immediately came under strong selling pressure and fell by almost 1% against the US dollar. Owing to this instability and other reasons, Goldman Sachs expects the gold price to start moving higher again. The Fed will most likely not continue to watch current events from the sidelines, as the US economy remains weak. Investors should thus – in addition to Operation Twist – be prepared for the Fed to adopt additional liquidity measures.
Goldman´s gold price target is at $1,860 per troy ounce for the next 12 months (a very conservative estimate given the factors it outlines as favourable to gold). The bank advises its customers to use the correction to build up long positions in the yellow metal. |
