Gold becoming a cellar dweller

First topic message reminder :

I note that the price of gold has been continually falling in the past 5 months yet gold has been in very high demand from India..
With the demise of the gold price a lot of small gold miners will start feelin the pinch..

$1575.00 aussie mmm maybe time to reconcile ones position..

Is CASH king?

Obviously we all need a crystal ball..

I note a few people who keep telling me what they think their gold is worth--I dont have a problem with that I have a concern with individuals saying that its worth a lot more--My simple answer to those characters is to go out there and buy it--real simple and if u dont have the backing then talk is cheap..

My humble opinion would be, to sell your stash and convert it to cash and if u still want gold then buy gold bars from the Perth Mint ..otherwise sell it on flea bay --there seems to be a lot of confused individuals out there buying gold at even highly inflated prices coz its on auction--a lot of it is less than a gram..

So until gold finds its direction in life I feel its downward spiral will continue..

regards
oneday

We should no longer rely on the American dollar devaluation to support the gold price, that's over and the USA is on the mend. They still owe a lotta money to the world but their economy is at least out of the starting blocks. George Soros even sold half his gold holding in one of his hedge funds - that's a sign if ever there was one.


The bank tax in Cyprus could give some support to gold simply because it could lead to a run in Cypriot banks which will then lead to bank runs in Greece, Italy and Spain which will then hit France and then Germany and then the Euro. Any run on any banks in Europe will be a catastrophe for us all. The Eurozone is now the biggest economy in the world, including the USA. But we need to consider that the main and underlying reason the Cypriot govt did what they did is to hit the billions of Russian criminal, laundered money that's sitting in Cypriot banks. That laundering has been going on since the USSR broke up. As the old Chinese saying goes," May you live in interesting times" or in Mandarin,,,,,

"Hai fong mee lok mai hee nok chung kow",,,,,,,,,,,,,


Cat

Sorry Cat the US is not on the mend at all . Look at the debt chart, its parabolic now & that stint the Cyprus banksters did is criminal ,they just stole 10percent off any one that had deposits in their banks , the world finance / banking system is going to crp , bankster thief dogs . Soros i here you say ? is buying up us ammo manufacturing companies . cant think of a better way to to disarm the US meself & bring in a nwo , then they / us will be true slaves ,think im joking , check it out.

Albo

new avatar

is that u making home brew-??
u sneaky little bugger..
keep some for me.

regards
oneday

ha ha ..sneaky little bugger um .. sly little pric Ray, more like it

aar home brew ? avatar ? nar must be seein things Ray .......... no an old pic Ray, used fireclay inside it , with a gas burner , too good it was once , the bugger pot melted & 40oz of the goodies dripped onto the gas burner casting underneath , so sent the whole lot off to mint & said keep the burner , after refining , was only down 6 gramms , so they are a good mob..... back in the dream time as usual ......anyhow, see yas in a week , gotta see a man about a dog .

albo wrote:aar home brew ? avatar ? nar must be seein things Ray .......... no an old pic Ray, used fireclay inside it , with a gas burner , too good it was once , the bugger pot melted & 40oz of the goodies dripped onto the gas burner casting underneath , so sent the whole lot off to mint & said keep the burner , after refining , was only down 6 gramms , so they are a good mob..... back in the dream time as usual ......anyhow, see yas in a week , gotta see a man about a dog .

Perth Mint? AGR Matthey? "good mob"? That realy WAS back in the dreamtime Albo! After my experience with AGR Matthey out at the airport I wouldn't trust 'em with my gold ever again. I got ripped for about 4 ounces.

I only ever use P.W. Beck these days.

Cat

if u get some nice 10-15gram nuggets--give me a call
always interested..

regards
oneday

shes diving again--no direction-- no worries..
maybe time to buy a bit of cheap gold..
hows that song go--Its raining -raining on my--
regards
oneday

down under 1500--mate there is no resistance--how low will she go??

regards
oneday

jeez eh Ray , been busy lately , logged on now & noticed gold price 1483, that is becoming worrysome now , good call on the celler dweller on the early post .... on and up to 2000 the US experts were saying at the time... so could it be deflation ahead afterall?

Hold on to your Ponies Fellas!
US unemployment figures have risen again,so they could be heading for another crash along with half of Europe. Cypris will implode and Nrth Korea is a nut house.
Who holds all the cards: China and the Middle east; traditionally value gold above anything else.
I reckon the gold correction will come in a few months and it will be HUGE

Gota say crusty Gus you dont post often , but you think like me , you got it, the whole world financially is going to hell in a handbasket , due to debt . Hows Mango bat n Rudds position in the 2008 crash , throwing away money like confetti . That was little jonneys 10 billion surpluss she wasted ..... yea we are just handing out thousands to families ...... we want you to spend the money so it stimulates the economy they said , so what did that do , have a guess , all the lower end of town , non producers got their cash & spent it on GROG , cheap chinese toys n pushbikes that
are at the dump now.... wheres the infrastructure they could have built instead, jobs etc for the same money . Im cross allright as this socialist government has to go . Socialism is great till you run out of spending every one elses money, so get it you bludgers out there , at this rate the music will stop & to the hardworking old farts with super , good luck on that one later on... p*ssed off albo.

anyhow golds having an upside run to the 1500 .... could be a bottom

Also Gus we can expect ongoing troubles in Nth Korea , Syria & Iran . Reason .. they are the only countries left in the world that the bankers [ you know the ones ] have not yet gained total controll , policy is to break it down , cause mahem & take controll financially , get them in debt & own the country ....... second verse , same as the first , little bit harder , little bit worse !

The gold price is looking pretty sick today. The biggest hindrance is the high Aussie dollar. Good article in the Fin Review last week about "Australia's Secret Recesion",,,,,,,,,the one Wayne Swan either won't or can't tell you about,,,,,,'cos he hasn't got a clue that it's happening. My money is that he daren't tell you. This coming budget is really gonna hurt.

"World's Greatest Treasurer"?? He'd be alright counting jelly beans in a packet of ten.

Cat

So im loosing count ,the newer taxes started with the gst tax, now its carbon tax, mining tax , superanuation theft approaching & still the mining boom is strong but the budgets gonna be a disaster, wheres all this cash siphoning to.

I`ll tell you Albo,old mate.....
Its typical Labor foolhardyness. Too many useless gov departments commissioned by this lot,you know,the ones full of ex union bully boys and their butt kissers. Paid top dollar to sit on their ar*e all day with zero productivity.
Next, its pathetic mis-management,jobs for the boys who charge stupid prices, yet still get the contract....all at the expense of the taxpayer.

Gold is sure doing the yo-yo thing the past week or so. I was going to off load 30 Oz to the refinery this week but might have to hang on now

Well it turned late last week and went back to $1524 Au now it has dropped $50 back to $1474 Au.
What the bluddy hell is going on?????

Like the Wise man once said
"DON'T HAVE ALL YOUR EGGS IN THE ONE BASKET"
http://www.businessweek.com/news/2013-04-10/goldman-lowers-gold-price-forecast-through-2014-as-cycle-turns

Worth a read

This relationship between central bank printing and gold has existed since the beginning of the gold bull market in 2000. In fact, this relationship shows that for every US$1 trillion increase in the collective central banks' balance sheets, the price of gold has generally appreciated by an average of US$210/oz.

Somewhat surprisingly, it turns out that the collective central bank balance sheets have actually shrunk over the past three months – by approximately US$415 billion. The biggest drop was seen in the ECB's balance sheet, which shrunk by the equivalent of US$370 billion, while other central banks also experienced small declines. Based on our simple model above, a decrease of US$415 billion should produce a gold price decline of roughly US$87/oz. And as it turns out, gold fell by US$76/oz over the first quarter of 2013. Does this sound like a bubble to you? It certainly doesn't appear to be. Gold is performing almost exactly as it should – by acting as a currency barometer for the amount of money being injected into or withdrawn from the economy... which leads us to Japan.

Japan's recent QE announcement is a thing of wonder. It represents an absolutely massive injection of yen relative to the size of the Japanese economy. The Bank of Japan's US$75 billion equivalent per month of yen printing, coupled with the US Federal Reserve's $85 billion per month (through its current QE program) will addUS$1.97 trillionto the collective central bank balance sheets over the next 12 months. Given Japan's considerable contribution, we seriously question how SocGen believes gold can drop to US$1,375/oz by the end of the year. For that to happen, we would need to see a collective balance sheet decline of roughly 15%. Does SocGen seriously believe the US Fed (or any other central bank for that matter) is going to reverse its QE accumulation and then start aggressively selling balance sheet assets over the next year?

The only gold 'crash scenario' that makes sense to us at Sprott is if governments begin to balance their budgets and return to sound money practices. There is no question that gold could lose its utility if western governments made a concerted effort to fix their fiscal imbalances, but who honestly believes that's going to happen any time soon? We certainly don't – especially in the US. While US deficit spending may diminish in scale, it will remain well above $1 trillion per year after factoring in unfunded obligations. We don't know of any creditable forecaster who believes otherwise.

We also don't see a chance of the US Federal Reserve ending its QE programs, despite the continual jaw-boning by various Fed officials of a planned QE exit strategy. There is simply too much risk to the US bond market for the Fed to cut the US$85 billion in monthly Treasury and MBS purchases that the current program employs. After all – remember that those purchases are what keep interest rates close to zero today. If the Fed were to remove that flow of capital, the free market would once again dictate US bond yields and stock prices. There's not a chance the Fed will take the risk of finding out what US bonds or stocks are worth to the market without a perpetual government-induced backstop. Why take the risk? Especially since the cumulative QE programs to date have not caused a drastic increase in inflation expectations.

While we expect the Fed to continue to threaten to lower its monthly QE purchases, we believe the chances of even a mild decrease to its current US$85 billion per month rate are negligible. Four years into it this grand QE experiment, money printing has become the backbone of the US bond market, and the unsung driver of the US equity market. In our view, gold cannot become irrelevant for the precise reason that QE is here to stay… and the collective central bank balance sheets will continue to increase over time. We would question any pundit who believes otherwise – unless they can clearly articulate how the Fed can exit QE without causing irreparable harm to the very financial markets the QE programs were designed to assuage.

We believe gold is nowhere close to 'bubble territory' today. It is acting exactly as a currency should. Under its current stewardship, we expect the Federal Reserve's balance sheet to continue to expand along with Japan's. SocGen's "crash" scenario would require a complete reversal of this trend, which we do not believe is even remotely possible at this point.

Gold is the base currency with which to compare the value of all government-sponsored money. Investors can incorporate it into their portfolios as 'central bank insurance', or ignore it entirely. Either way, we believe gold will continue to track the total aggregate of the central bank balance sheets of the US, UK, Eurozone and Japan. If SocGen believes the aggregate central bank balance sheet will continue to shrink as it did in Q1, then gold should continue its decline. We strongly suspect that shrinkage is over, however. Given Japan's recent QE decision, we would expect the aggregate to grow a lot bigger, and fast. If there was ever a time for gold to be a relevant currency alternative – it's now.

This relationship between central bank printing and gold has existed since the beginning of the gold bull market in 2000. In fact, this relationship shows that for every US$1 trillion increase in the collective central banks' balance sheets, the price of gold has generally appreciated by an average of US$210/oz.

Somewhat surprisingly, it turns out that the collective central bank balance sheets have actually shrunk over the past three months – by approximately US$415 billion. The biggest drop was seen in the ECB's balance sheet, which shrunk by the equivalent of US$370 billion, while other central banks also experienced small declines. Based on our simple model above, a decrease of US$415 billion should produce a gold price decline of roughly US$87/oz. And as it turns out, gold fell by US$76/oz over the first quarter of 2013. Does this sound like a bubble to you? It certainly doesn't appear to be. Gold is performing almost exactly as it should – by acting as a currency barometer for the amount of money being injected into or withdrawn from the economy... which leads us to Japan.

Japan's recent QE announcement is a thing of wonder. It represents an absolutely massive injection of yen relative to the size of the Japanese economy. The Bank of Japan's US$75 billion equivalent per month of yen printing, coupled with the US Federal Reserve's $85 billion per month (through its current QE program) will addUS$1.97 trillionto the collective central bank balance sheets over the next 12 months. Given Japan's considerable contribution, we seriously question how SocGen believes gold can drop to US$1,375/oz by the end of the year. For that to happen, we would need to see a collective balance sheet decline of roughly 15%. Does SocGen seriously believe the US Fed (or any other central bank for that matter) is going to reverse its QE accumulation and then start aggressively selling balance sheet assets over the next year?

The only gold 'crash scenario' that makes sense to us at Sprott is if governments begin to balance their budgets and return to sound money practices. There is no question that gold could lose its utility if western governments made a concerted effort to fix their fiscal imbalances, but who honestly believes that's going to happen any time soon? We certainly don't – especially in the US. While US deficit spending may diminish in scale, it will remain well above $1 trillion per year after factoring in unfunded obligations. We don't know of any creditable forecaster who believes otherwise.

We also don't see a chance of the US Federal Reserve ending its QE programs, despite the continual jaw-boning by various Fed officials of a planned QE exit strategy. There is simply too much risk to the US bond market for the Fed to cut the US$85 billion in monthly Treasury and MBS purchases that the current program employs. After all – remember that those purchases are what keep interest rates close to zero today. If the Fed were to remove that flow of capital, the free market would once again dictate US bond yields and stock prices. There's not a chance the Fed will take the risk of finding out what US bonds or stocks are worth to the market without a perpetual government-induced backstop. Why take the risk? Especially since the cumulative QE programs to date have not caused a drastic increase in inflation expectations.

While we expect the Fed to continue to threaten to lower its monthly QE purchases, we believe the chances of even a mild decrease to its current US$85 billion per month rate are negligible. Four years into it this grand QE experiment, money printing has become the backbone of the US bond market, and the unsung driver of the US equity market. In our view, gold cannot become irrelevant for the precise reason that QE is here to stay… and the collective central bank balance sheets will continue to increase over time. We would question any pundit who believes otherwise – unless they can clearly articulate how the Fed can exit QE without causing irreparable harm to the very financial markets the QE programs were designed to assuage.

We believe gold is nowhere close to 'bubble territory' today. It is acting exactly as a currency should. Under its current stewardship, we expect the Federal Reserve's balance sheet to continue to expand along with Japan's. SocGen's "crash" scenario would require a complete reversal of this trend, which we do not believe is even remotely possible at this point.

Gold is the base currency with which to compare the value of all government-sponsored money. Investors can incorporate it into their portfolios as 'central bank insurance', or ignore it entirely. Either way, we believe gold will continue to track the total aggregate of the central bank balance sheets of the US, UK, Eurozone and Japan. If SocGen believes the aggregate central bank balance sheet will continue to shrink as it did in Q1, then gold should continue its decline. We strongly suspect that shrinkage is over, however. Given Japan's recent QE decision, we would expect the aggregate to grow a lot bigger, and fast. If there was ever a time for gold to be a relevant currency alternative – it's now.

CrustyGus wrote:Well it turned late last week and went back to $1524 Au now it has dropped $50 back to $1474 Au.
What the bluddy hell is going on?????

this might have someting to do with it....

"CYPRUS TO SELL 400 MLN EUROS WORTH OF GOLD RESERVES TO FINANCE PART OF ITS BAILOUT - TROIKA DOCUMENTS - RTRS"


http://www.zerohedge.com/news/2013-04-10/here-we-go-cyprus-sell-%E2%82%AC400-million-gold-finance-part-its-bailout

Well next resistance for the gold price is 1300 us $, unless the us does a false flag event on nth korea & force them into war , like sinking a us ship by a boat that looks like a nth korean ship. They have 3 i read .

aha so thats how it works , print euros for nothing , get them in debt , then take their gold as payment , ar im a slow learner & even i get it.
anyone want some albo currency ? wanna swap some gold ?

Our economy was strong then smashed by the USA. The trick was simple they devalued our dollar and doubled the value of theirs at the same time. Their have been continued attacks on our currency since then. We are the most productive people on the planet and very efficient in regards to land production , management, mining etc. I do not believe we are are suppliers. in the sense of no more stuff and your economy crashes too.

down another $68. to $1417.00
all we need now is for another country to unload gold and the gravy train will keep on a spiral down.
Next we will see gold producers shut down or at least moff ball production because they will become unproductive in a capital sense..

The way this gov gives away our money its no wonder the place is goin to the pack..

regards
oneday