From RR
April 2, 2012 – China has been denigrated and looked down upon for decades — by Russia, Japan, the US and much of the world. It’s strange but true, but China possesses the greatest monetary reserves of any nation in the world. China is loaded with over a trillion dollars worth of US Treasuries plus hundreds of billions of US bonds and T-bills. The problem for China is that the great majority of its reserves are in other countries’ fiat money. What to do, asks China, with all this fiat “junk money” that weekly is losing purchasing power?
China realizes that the longer it sits with its huge pile of fiat paper, the more it loses in purchasing power, and this will continue as long as the various central banks continue to spew out fiat currency –and at present there’s nothing to suggest that the banks will do otherwise
So China has decided to do the logical thing. It will kill two birds with one stone. China has decided to swap its hoard of fiat paper for gold. China is now the world’s leading miner of gold, and it is also the leading buyer of gold. China has decided to create a corner in gold; it will create the world’s greatest position in gold.
Whenever there is a big quantity of gold to be sold by a central bank or the IMF, China is there as a buyer. I’ve mentioned that there appears to be a “Chinese put” under gold. Every time gold approaches 1600 or slightly below, some big buyer steps in and buys gold. Who is that big buyer? I’ve wondered. The secret — it’s China.
This month, the Hong Kong Census and Statistics Dept. reported that China imported 102,7789 kilograms of gold from Hong Kong in November, an increase over October’s 86,299 kilos. For unknown reasons Beijing does not release its gold trading figures.
Analysts believe that China bought as much as 490 tons of gold in 201, almost double the estimated amount in 2010.
In effect, China with its towering mountain of fiat paper wants to build a corner on gold. And they are in a position to do it. China has urged its people to buy gold. Gold can come into China but not one ounce of gold is allowed to leave China. Every ounce of gold that is mined in China must, by law, be sold to the government of China.
Finally, when China owns more gold than any other nation, China will set the price of gold. China will also back its own yuan with gold. But at what price gold? China will set the price for gold, moving the daily fix price from London to Beijing.
Thus, as the gold-backed yuan becomes more popular and more accepted, the “new” gold-backed yuan will gradually become the new world reserve currency. When this happens, it will be a disaster for the US. The dollar will lose its status as the world’s reserve currency, and the US will no longer be able to print its own reserve money that is accepted around the world as payment for US debts.
If the Fed sees this picture, they will have no answer but to stop printing. If or when that happens, the bear market that started in 2007 will continue and stocks and bonds will collapse as interest rates rise.
Thus gold, so violently hated by the central banks, will be the item that will kill the great world fiat paper experiment. And China, with a virtual corner on the gold market, will own the world’s reserve currency.
Note: I expect China to not only accumulate gold above the ground, I expect China to accumulate gold in the ground. Thus we have seen China buy gold mines and parts of gold mines. China is also interested in investing in vast territories (which contain gold) in Africa. Over time, China intends to control the gold market and the price of gold. Only then will China emerge as the recognized world leader.
The “golden rule.” He who owns the gold makes the rules. Go through history and you’ll note that the nation which owns the most gold is the dominant nation in the world, be it Holland, Spain, Britain or the US. By the end of WWII, the US owned the world’s greatest hoard of gold. When deGaulle of France insisted that the US pay its debts in gold, Nixon slammed the gold window.
Question — if gold is the barbaric relic that the Fed claims, why did the US refuse to give up any more of its gold in 1970? Also, with its current great collection of gold, why does the US insist that its gold is only worth 44.20 an ounce?
From Google — “Central banks are quietly accumulating gold, declared purchases of 206 tons through September 2011.”
“One of the most important sources of demand continues to be central bank demand.”
Russell comment — I think within the next two or three years, it will be impossible to buy gold, except at black market prices.
I agree with him, it is a supply and demand issue ultimately not a short term smash issue.
"Only in countries like maybe India and China would they elect an 80-year old."
And there is a short list of countries from 4yrs ago that would elect a black man. so this election will be really interesting, I wont rule RP out at this pt
Honestly,good analysis that transcends all time frames(seconds,minutes,hours, days,weeks,months.) is what I look for.
Long term charts provide better clues IMHO and daily rhetoric about catastrophoc move makes me ill at best. They just dont matter in the larger scheme of things.
Intraday moves hardly define trends in this market,have an argument to the contrary and I would really like to hear it. ??
I think this will be a very big deal and we will know monday cut and dried. Isnt this how Mf Global gets the cash back into their bankruptcy proceeding without being the bad guy?
At the least I would expect a false breakout for usd and euro,the hft's thrive on them, jmo
A test of each red line would build a small IHS and HS that would break out each larger ihs and hs.
"If I haven’t mentioned it before (I probably have), over the course of the eleven year PM bull market, gold is actually DOWN in COMEX trading hours on a cumulative basis. Think about it – gold rose from $250 in 2000 to $1,900 in 2011, with the great majority of VOLUME trading on the COMEX, yet gold is DOWN in New York trading hours, and obviously UP dramatically in Asia, where PHYSICAL, not PAPER gold is being transacted. My thanks to the great European analyst Dmitri Speck for bringing this anomaly to my attention in 2004, a trend that has only grown more stark since."
http://www.youtube.com/watch?v=EW5IdwltaAc&feature...
From RR
April 2, 2012 – China has been denigrated and looked down upon for decades — by Russia, Japan, the US and much of the world. It’s strange but true, but China possesses the greatest monetary reserves of any nation in the world. China is loaded with over a trillion dollars worth of US Treasuries plus hundreds of billions of US bonds and T-bills. The problem for China is that the great majority of its reserves are in other countries’ fiat money. What to do, asks China, with all this fiat “junk money” that weekly is losing purchasing power?
China realizes that the longer it sits with its huge pile of fiat paper, the more it loses in purchasing power, and this will continue as long as the various central banks continue to spew out fiat currency –and at present there’s nothing to suggest that the banks will do otherwise
So China has decided to do the logical thing. It will kill two birds with one stone. China has decided to swap its hoard of fiat paper for gold. China is now the world’s leading miner of gold, and it is also the leading buyer of gold. China has decided to create a corner in gold; it will create the world’s greatest position in gold.
Whenever there is a big quantity of gold to be sold by a central bank or the IMF, China is there as a buyer. I’ve mentioned that there appears to be a “Chinese put” under gold. Every time gold approaches 1600 or slightly below, some big buyer steps in and buys gold. Who is that big buyer? I’ve wondered. The secret — it’s China.
This month, the Hong Kong Census and Statistics Dept. reported that China imported 102,7789 kilograms of gold from Hong Kong in November, an increase over October’s 86,299 kilos. For unknown reasons Beijing does not release its gold trading figures.
Analysts believe that China bought as much as 490 tons of gold in 201, almost double the estimated amount in 2010.
In effect, China with its towering mountain of fiat paper wants to build a corner on gold. And they are in a position to do it. China has urged its people to buy gold. Gold can come into China but not one ounce of gold is allowed to leave China. Every ounce of gold that is mined in China must, by law, be sold to the government of China.
Finally, when China owns more gold than any other nation, China will set the price of gold. China will also back its own yuan with gold. But at what price gold? China will set the price for gold, moving the daily fix price from London to Beijing.
Thus, as the gold-backed yuan becomes more popular and more accepted, the “new” gold-backed yuan will gradually become the new world reserve currency. When this happens, it will be a disaster for the US. The dollar will lose its status as the world’s reserve currency, and the US will no longer be able to print its own reserve money that is accepted around the world as payment for US debts.
If the Fed sees this picture, they will have no answer but to stop printing. If or when that happens, the bear market that started in 2007 will continue and stocks and bonds will collapse as interest rates rise.
Thus gold, so violently hated by the central banks, will be the item that will kill the great world fiat paper experiment. And China, with a virtual corner on the gold market, will own the world’s reserve currency.
Note: I expect China to not only accumulate gold above the ground, I expect China to accumulate gold in the ground. Thus we have seen China buy gold mines and parts of gold mines. China is also interested in investing in vast territories (which contain gold) in Africa. Over time, China intends to control the gold market and the price of gold. Only then will China emerge as the recognized world leader.
The “golden rule.” He who owns the gold makes the rules. Go through history and you’ll note that the nation which owns the most gold is the dominant nation in the world, be it Holland, Spain, Britain or the US. By the end of WWII, the US owned the world’s greatest hoard of gold. When deGaulle of France insisted that the US pay its debts in gold, Nixon slammed the gold window.
Question — if gold is the barbaric relic that the Fed claims, why did the US refuse to give up any more of its gold in 1970? Also, with its current great collection of gold, why does the US insist that its gold is only worth 44.20 an ounce?
From Google — “Central banks are quietly accumulating gold, declared purchases of 206 tons through September 2011.”
“One of the most important sources of demand continues to be central bank demand.”
Russell comment — I think within the next two or three years, it will be impossible to buy gold, except at black market prices.
I agree with him, it is a supply and demand issue ultimately not a short term smash issue.
Lakeshort, forgive the pun. lakeshore seems to be announcing good news lately and nothing but getting hammered for it?
Today for instance. I really wonder what is going on with this one.
http://www.youtube.com/watch?v=rH1FaLdABFM&feature...
$Hui had broken out against dow on tuesday, federal bop a weasel....
http://www.financialsense.com/contributors/cris-sh...
"Only in countries like maybe India and China would they elect an 80-year old."
And there is a short list of countries from 4yrs ago that would elect a black man. so this election will be really interesting, I wont rule RP out at this pt
Love the Piers Morgan interview.
lower imho 1.20 and 88
ish.....
http://en.wikipedia.org/wiki/Hyperbole
Honestly,good analysis that transcends all time frames(seconds,minutes,hours, days,weeks,months.) is what I look for.
Long term charts provide better clues IMHO and daily rhetoric about catastrophoc move makes me ill at best. They just dont matter in the larger scheme of things.
Intraday moves hardly define trends in this market,have an argument to the contrary and I would really like to hear it. ??
http://www.financialsense.com/financial-sense-news...
Agree they are over the top...always.
But I just feel this crap is always done as an impetus to smash me to smithereens...a pavlovs dog thingy.
I think this will be a very big deal and we will know monday cut and dried. Isnt this how Mf Global gets the cash back into their bankruptcy proceeding without being the bad guy?
http://www.zerohedge.com/news/cme-goes-margin-defc...
A pretty darn quick 61.8 retrace in my books, although 1270ish looks like a certain target.
caveat; who knows..........
Technical imho, the hui 60m chart for oct is an hs top that fell through the neckline. TSX looks like it is up next.
Technical imho, the hui 60m chart for oct is an hs top that fell through the neckline. TSX looks like it is up next.
http://www.youtube.com/watch?v=28PSnCwCMp4&feature...
This is very succinct video to that topic
http://www.youtube.com/watch?feature=player_embedd...
At the least I would expect a false breakout for usd and euro,the hft's thrive on them, jmo
A test of each red line would build a small IHS and HS that would break out each larger ihs and hs.
Here's an interesting stat from Midas last night;
"If I haven’t mentioned it before (I probably have), over the course of the eleven year PM bull market, gold is actually DOWN in COMEX trading hours on a cumulative basis. Think about it – gold rose from $250 in 2000 to $1,900 in 2011, with the great majority of VOLUME trading on the COMEX, yet gold is DOWN in New York trading hours, and obviously UP dramatically in Asia, where PHYSICAL, not PAPER gold is being transacted. My thanks to the great European analyst Dmitri Speck for bringing this anomaly to my attention in 2004, a trend that has only grown more stark since."