Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Zincman who wrote (101897)	7/14/2013 10:13:31 PM
From: TobagoJack	1 Recommendation Recommended By fred woodall Read Replies (1) \| Respond to of 219570

i am of the belief, and am putting my nickels and dimes, and just about every other denominations where my belief be, that (i) as china has a known target for official gold hoard, and has been on a program to encourage private gold hoard, the gold hoard shall be (ii) as we are trying to raise funding for our australian tailings re-processing project entailing 800k oz tub of gold and 32M oz lake of silver, and the three flavors of tire-kickers are china sovereign outfits, usa family offices, and australia private mining sophisticates, i must believe that (i) the chinese want something, (ii) the americans know something, and (iii) the aussies are comfortable w/ something, even as - the chinese supposedly slowing down economy - the americans allegedly recovering from economic malaise, and - the australian certainly in mining bear market and still enthusiastic on anything exceptional (iii) i suspect the paper gold / paper silver markets would only blow up as and when we are in the middle of the definitive reserve currency crisis, that which must be, but that which may only be between 2018-2026 (iv) should be okay for gold only has to be correctly priced once in our life time :0)

To: Zincman who wrote (101897)	7/15/2013 9:00:16 PM
From: TobagoJack	1 Recommendation Recommended By Zincman Read Replies (1) \| Respond to of 219570

Gold Slips Into Backwardation For the first time since the 2008 lows, both the one and three month GOFO rates have slipped below the zero line. Normally, gold is used as collateral and swapped for dollars. GOFO is basically the rate charged for a dollar loan that is collateralized with gold. On the rare occasions when the rate goes negative, the motivation is exactly the reverse: someone is trying to obtain gold by offering dollars and is prepared to pay for it. This is analogous to gold going into backwardation in the futures markets - a rare event indeed, given the large above ground gold supply. So what does it mean? Very likely the assessment of gold's value by futures traders on the COMEX differs from that of physical buyers. Since unallocated gold accounts in London are fractionally reserved, large delivery demands can indeed lead to a temporary shortage. When we see a scramble for gold developing via a GOFO inversion, it means that someone received more delivery demands than they can satisfy with the gold they actually have at hand. It is noteworthy in this context that the previous occasions when GOFO inverted as a rule marked at least short term lows in the market, and often quite significant lows. acting-man.com