hello haim, what you wrote can be used to describe lots of other currencies.
gold is acting as real money, rising in value against stocks, real estate, and other monies, and for the moment, not against usd, although it most certainly is up against usd over the interim period, unless my money management program is wrong.
further, the paper gold in my hkg bank wrap account is indicating correctly, an amount of gold that is the same number of ounces as i had exchanged for, just as it should be, and which is perfectly fungible, divisible, and good for inter-a/c transfers as well as for exchanges into burgers without much fuss.
gold will reach 1.5k, and will breach 2.0k, all in bad times that i am guessing will most assuredly and deliciously be, and when so, i wager that houses and stocks will be worth even less against gold than now, and perhaps measure less against usd, euro, and any number of other lesser currencies.
when folks say gold is real money, i believe they actually mean, "gold is a real money for exchange, in that it is fungible in all of known galaxy where humans have been to, divisible, incorruptible, eternal, been around since before the time of the publishing of the bible, tests the will of men and inclination of the women, is not an obligation of any authority, cannot be created at the marginal cost of zero as mouthed by fraudsters, and is perfectly good as savings of excess and storage of surplus; i.e. an ouce today is an ounce tomorrow, as opposed to dribble diluted on daily basis.
btw, have you seen the chart of total fed money lately? it looks like an L, rotated counterclockwise by 90 degrees.
the fact that usd is rising right at this moment is neither here nor there and fundamentally meaningless in that it is but a squiggle, a first port of call as distressed investors and speculators answer their margin call communication, get squeezed out of valuable long and short positions, and head back to the carry currency.
as to gold being sold, try buying physical gold, and watch the physical gold holdigs of gld, and compare to more normal times, you should sense that all is as it should be.
as to manipulation ad conspiracies, i am not a believer, but am cognizant that governments are players in the market place. you may remember that, Volcker, when asked then, what was his big mistake in the crisis way back when and he said that he should not have allowed Gold to go higher.......
recommendation: take the gift that is apparently cheap gold.
in the mean time, just in in-tray, written by pen pal who controls north of several billion of ships and who just recently visited switzerland to buy physical gold and was disappointed by lack of fulfillment in bars and coins - yes, i know,incredible, and yet, true:
Well here in some insight into the life of a banker today. Name of bank removed , but let me assure you all that it is indeed a very stable name , with part govt ownership, large oil revenues backing
In reponse to my push on him re banks claiming market disruption and increased costs
"You know that the interbank market is for all intent and purpose dead and even the British Banker's Association has admitted that libor is not reflective of banks' cost of funding. For months, most banks are absorbing the higher cost but this cannot be sustained if we are to remain viable when the differentials between libor and Euribor swap in recent weeks can be as high as almost 200bps depending on tenor. These are trying times and some banks have to be nationalised to survive.
Xxxx bank is definitely not at the edge and assure you that we can still fund adequately but the cost is much higher than libor. We are prepared to share the pain with our long standing clients and are prepared to consider L+75 bps which is still lower than our cost of funds. For your info, some central banks in Asia are depositing funds with us as they consider us a better risk than most European banks.
The economic consequences are indeed dire and will possibly translate into a downturn over time which in my mind cannot be avoided."
We have successfully argued against the issue of increased costs in our bank syndicates. But I suspect that reality is that most will not and as such will face an additional charge
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