USAGOLD Gold Discussion Forum Archive

Electronic reproduction sourced from
The Invisible HandSo that was Armageddon#1429194/1/06; 00:41:32

The Laboratoire européen d’Anticipation Politique Europe 2020 (LEAP/E2020) now estimates to over 80% the probability that the week of March 20-26, 2006 will be the beginning of the most significant political crisis the world has known since the Fall of the Iron Curtain in 1989, together with an economic and financial crisis of a scope comparable with that of 1929. This last week of March 2006 will be the turning-point of a number of critical developments, resulting in an acceleration of all the factors leading to a major crisis, disregard any American or Israeli military intervention against Iran. In case such an intervention is conducted, the probability of a major crisis to start rises up to 100%, according to LEAP/E2020
First there was Y2K, then there was Donald Duck, and finally the Iranian Oil Bourse and the final week of March 2006.
And there we are and still nobody is fixing "our" economic problems.
Anybody has a new idea not for a cause, but for a trigger?

Here's an Iranian article on Friday's oil market which doesn't mention the Bourse.

Here's more interesting news from Iran
Iran denies claims in withdrawal of Gold assets
Saturday, April 01, 2006 - ©2005
LONDON, April 1 (IranMania) - An informed source in Central Bank of Iran denied the news published in a Swiss daily on withdrawal of 250 tons of Iran's gold reserves from that country's Credit Bank. The Central Bank official, who spoke on condition of anonymity, told the Economy Desk at IRNA Head office in Tehran Desk, "The news published in the Thursday edition of the Bern-based daily Der Bund, on Iran's withdrawal of 250 tons of its gold reserves, worth five billion Swiss francs, and transferring them to Tehran is totally baseless." Der Bund had added in its story that apparently Iran has ever since last October withdrawn 700 tons of its gold reserves, worth sixteen billion Swiss franks, from various Western monetary funds and transferred them to other unknown destinations.

The Invisible Hand is still waiting for Armageddon.

SundeckUse of home equity#1429204/1/06; 02:43:08

@Thoreauly #142915 et al.,

Clearly, you are no novice when it comes to defining the pros and cons of investing.

Redrawing some equity from your house and placing it in gold has got to be about the most conservative "asset reallocation" imaginable in the present climate...

...and I agree, that it matters little if your house depreciates significanty, since you are debt-free and the price of gold is likely to make up any price-loss on the house...and, in any case, it seems to me that you are not going to be left penniless, no matter what.

My comments are not intended either to encourage or discourage your decision, just to provide alternative perspectives, as TC has said. Investing is a very personal thing. One needs guts to follow one's convictions in a big probably know where your "pain threshold" is and will act accordingly.

You mention the disparity in pricing from urban/coastal to rural/heartland in the US... The same thing existed here in Australia a couple of years ago... When the word got out, so great was the rush that we had people (speculators) buying properties sight-unseen over the telephone in inland country towns. It has all settled down pretty-much now. Prices in my area (Canberra) have come off about 5-10% in the last six months. Where to from here????

Finally, with regard to Bernanke's helicopter finance contingency... There are many degrees-of-freedom in an economy. Money may be offered free, but still people may not accept it, and even if they do, they may not spend it. A deflationary spiral cannot be ruled in Japan. Neither I, nor Choppa Ben, nor anyone else knows how things are going to pan-out going forward...

Uncertainty has always been with us and it comes in many forms.



Ned@ Thoreauly and all#1429214/1/06; 04:40:50

Before I start I must thank all that replied to my question a few days ago about purchasing a 'hedge' for a declining housing market. Seems it almost goes hand in hand with the lastest discussion.


A few years ago I believed in a runaway inflationary enviroment so I bought the biggest house I could find, I did lock into a low-rate mortgage and did borrow heavily against a line-of-credit to buy gold. The plan has worked "so far, so good". The house has appreciated by some 30% and gold has doubled.

Now comes the clincher. Are we near the point where the commodity 'bubble' needs to take a rest? Is the housing bubble about to burst? This is why I asked the forum last week about a hedge for a declining housing market.

The question that lingers in my mind is whether the runaway inflation will turn into a deflationary collapse. Believe me, the internet is FULL on opinion for both sides of the debate. This is where I believe Black Blade enters the scene. If we are headed into a deflationary collapse, cash is king, debt becomes larger. Does BB side on the deflation argument? I hope Mr. Blade does enlighten us on this thread.

Boilermaker did make a valid point on the "walk away" loan. I would be inclined to do that myself, but if I extracted my equity (almost a third of the house) I could not service the loan. This is why I look for the hedge. If one could bring down their equity to very little and buy gold I would have done it a long time ago.

So you have many things to consider. Best of luck to you and to all us homeowners (and gold-holders !!)

Have a golden day.

contrarianArmageddon#1429224/1/06; 06:51:03

I would say if all else fails (even the supposed and entirely concocted war on "Terror", just look at the squibs on the collapsing WTC 1 and 2), you can count on derivatives, GM, or Fannie Mae at the end of the day to provide that last needed kick over the cliff to peel the rosy pancake off the white as a sheet, emaciated face in the casket, exposing it for the corpse it truly is!
Black BladeHuh? Maybe it's Time For A Weekend Rant - Inflation vs. Deflation vs. Stagflation#1429234/1/06; 07:47:56

Inflation vs. Deflation vs. Stagflation

There has been some interesting debate lately on using one's home as a ready ATM to purchase Gold. All I can say is what I think is right for me and I certainly can't speak for anyone else. Ultimately it is a decision that we must make on our own. I can only speak for myself. If I were to have a primary residence on land that is free of debt (i.e. no mortgage) then I would not put it at risk regardless because I prefer to err on the side of safety. To tell the truth, I am as nervous as a virgin in a whorehouse when I am around bankers when discussing what to do with my money.

However, I would see no problem in the current environment putting secondary properties at risk if the odds favor a better return by putting cash to work in other hard assets like Gold and Silver. Maybe even taking a mortgage out on the vacation home would be a good move (although I think of isolated vacation property as an escape option if more urban settings become dangerous). Personally I would simply use the cash I would be paying on a monthly mortgage and use it to dollar-cost-average into a "portfolio insurance" position with Gold and Silver.

That said, I think that we are experiencing a similar economic environment as that of the 1970's to early 1980's. We are in a secular bull market for commodities and studies have consistently shown that these cycles run on average 18 years. We are only about 6-8 years into the current secular bull market when Gold and oil hit the lows in 1998 to 1999. Note that the last secular bear market for Gold was from January 1980 to June 1999. Curiously the secular bear market ended with the end of Chancellor Gordon Brown's disastrous Bank of England gold auctions – probably akin to the famous adage of getting out of the stock market when the shoeshine boy starts to give stock tips.

I suspect that the cycle could even be longer this time because the "twin deficits" and national debt have never been to such extremes as they are now. In fact I fear that we may have tripped the "tipping point" on the US Dollar. This could ultimately spin out of control leading to hyperinflation or the scuttling of the US Dollar as a currency and replaced with a "Super Dollar" similar to how Mexico dealt with the Peso several years ago. Of course those holding US debt such as foreign governments will probably get royally hosed.

Frankly I am amazed that the US Dollar has held up as well as it did over the last few years. The Clinton administration all but insured the demised of the dollar and the Bush administration just sealed its fate. The "Strong Dollar Policy" was and is a sick joke. The carnival barkers in the financial media often tout the "strong dollar" when in reality all currencies are failing. Even the mighty Swiss Franc that was once solidly backed by Gold is failing. The joke is that the US Dollar is only "strong" relative to "weaker" foreign currencies. Hell, smarter investors than me have taken positions against the US Dollar and in precious metals in one way or another (i.e. Warren Buffett, George Soros, Bill Gates, Paul Ballmer, etc.) and others have simply bought into a broad positions in commodities (i.e. Jim Rogers). For new Federal Reserve Chairman Ben Bernanke to keep the dollar currency from crashing in the current environment even with all the tools at his disposal is like herding cats. It just won't work.

The Bureau of Labor Statistics and the Federal Reserve have done a remarkable job in disguising the "real rate" of inflation. They are truly masters of the game. The statisticians they have in their employ are exceptionally adept at using "statistical massage" techniques to fool the American public, the monkeys in Congress, the buffoons on Wall Street, and the Carnival Barkers in the financial media. Personally I find it amusing that few even question the use of "hedonic deflators", "seasonality", "imputed income", "core rate", etc. rather than focus on the real data and the effects of a rapidly expanding money supply. However, a few such as New York Post's John Crudele or lone crusader Rep. Ron Paul (R-TX) do ask officials and economists the hard questions and get a stuttered response if they get one at all. Don't ever expect to see Joe Kernan or David Faber on CNBC pose such questions to Secretary of Labor Elaine Chou when she appears on her monthly visit to the CNBC studios for the monthly employment data release. It ain't gonna happen! It would be quite amusing though. If the Carnival Barkers turned and started to go "hard ball", poor Elaine would be as nervous as a long-tailed cat in a room full of rocking chairs.

Yep, the fun ain't over yet. Now the Federal Reserve simply "canceled" the M3 data report. Too much of an embarrassment I suppose. Notice that it is now conveniently missing in the latest report (see link). In other words, M3 tracks what the big boys are doing with the money. This includes US dollars held in banks in Canada and the UK (called Eurodollars) not to be confused with the Euro which is the standard currency of Europe. So why stop tracking M3? The reasons given are that 1) to save money and 2) all the money that it tracks is tracked by other indicators. Cute, but since when has the government ever been interested in "saving money"? That's a new one on me. I would also like to know what these "other indicators" are. I am curious but did anyone notice that the M3 went up an annualized 9.4% in the last three months and an annualized 17.2% in December alone? Gee Whiz, now the Federal Reserve wants to stop tracking it. Why face the evidence of soaring inflation growing at a 9.4% clip (Barring growth in the to counter balance that – and we know that the trade deficits have widened to all time record levels). Why leave a smoking gun lying about when you can wipe off the fingerprints, file off the serial numbers, and toss it into a deep abyss away from prying eyes.

Heck, the April 15th tax deadline is only two weeks away (actually it's the 17th this year). I plan to do my best to pay up using "hedonically deflated" dollars. Yesirreee… my dollars are better than old dollars. They are fresh and crisp and will hold up longer so the value must be greater. Hell, if that tripe is good enough for the government then why not for us peasants. Think they'll buy it? Yeah, I know, my CPA will bitch slap me for even bringing it up. And she's one mean little gray-haired old lady!

mikal@Invisible Hand, contrarian#1429244/1/06; 08:04:51

Re: Financial Armageddon and "Anybody have a new idea, not for a cause but for a trigger?"
The 'Fear Of Muslims' Conspiracy Theory
War on terror gives plenty of cover for extravagance past and future, increased centralization of power and wealth, destruction of middle class and former "rights".
Another 911 and war may also be in the cards- Link to follow

mikal@InvisbleHand, contrarian#1429254/1/06; 08:20:48 NWO Master Plan - Nuke Texas? by Douglas Herman - 3/27
Cheney and Halliburton profited the most from the Iraq war. Here is a brief, gravely unsettling outline of a devilishly plausible crime possibly slated for 3/16/06- a special occult number. Includes one of the better links to the wild and reckless DU(depleted uranium) debauchery.

mikalRe: Correction#1429264/1/06; 08:33:16

That should read "to occur on 4/16/06"
R PowellNed#1429274/1/06; 08:40:20

Your thoughts here.......

"Are we near the point where the commodity 'bubble' needs to take a rest? Is the housing bubble about to burst? This is why I asked the forum last week about a hedge for a declining housing market."


You seem to hold the opinion that both commodities and housing are in a bubble. Whether so or not I would not assume that a decline (bubble burst) in one will of necessity cause or mean a decline in the other.

As to whether commodities are in a bubble...defined loosely as priced higher primarily due to speculative buying, I would venture that there has been speculative buying but it has been induced by rising prices which were initially caused by the simpliest of causes, an change in the fundamentals of supply and demand. Speculation does not cause the bubble, but it may support or even enhance it. Also, unlike the dot coms + tech stocks of the 1990s, commodities are real tangible items, basic necessities of life. The demand may ease over time (many years) but will not burst. My own humble opinion is that commodity demand may not ease, to any great extent, in my lifetime or that of my children. There may still be years and years to go in the commodity bull in metals as demand is not abating and supply can only be marginally increased over time. I guess I'm opining that silver, gold and base metals (especially copper) are still cheap. Is this opinion a given. Of course not, but as long as demand overwhelms supply, the condition remains.

As to housing, I do not see a direct connection between house demand and commodity demand other than that both are subject to the general health of economic conditions in the broadest sense. Also, commodities are a global market, whereas housing is always a local (or perhaps national) market. Your appraised house value may soften while commodity prices are still raging in a run away global, bull market.

I guess like Hamilton and many others I am presently a confirmed commodity bull. Without the economic Armageddon that some believe will occur, I see no short term end to it.
I do believe there is only a small amount of political or economic Armageddon type risk priced into the POG....maybe $20.00 (a guess at best). This amount is added or retracted sometimes in response to daily news. Market noise, I call this. But POG is closer to $600 than the $300 we saw for so many years. What has caused such a rise? Maybe the same conditions that have lifted all commodity prices, monetary conditions to some extent and supply/demand balances. Jmho, of course.

I could ask if you believe a stock market crash is necessarily a condition or outcome or companion to the housing crash you wish to hedge against. If so, there are ways to hedge against such an occurance. But, your physical gold has most likely already fufilled this purpose. That is, the POG increase that will probably accompany any housing price crash or other economic disaster is a hedge. One really nice characteristic of that hedge is that it is NOT a time wasting asset. In the paper hedging casino, there is more money made by selling hedges than there is by buying them. A true hedge is similar to the premium one pays for any insurance. Like homeowner's insurance, one buys the hedge hoping that the house does not burn down, and the premium returns nothing but peace of mind. So many commercial hedgers expect to lose money, it is a cost of business. This is one reason why the so-called "smart money" of the commercial category of the COT is NOT...NOT.. always positioned correctly in the markets. The market soothsayers + moneysnatchers would have us believe otherwise. The commercials are NOT the "smart money". They profit no more (maybe less) than the speculative money. But I'm off subject with that rant.

Perhaps if you are worried that your home value or ratio of debt to appraisal is in serious jeopardy, you might want to buy an investment vehicle against such an occurance. There are derivatives on almost everything, including the housing market and the weather. These are time wasting vehicles and you'd be betting on a "black swan" event (very long shot). Imho, you'd loose your money just as money paid for insurance not needed (known only in hindsight) is gone...pays no return. A hedge is more akin to a cost of insurance while an investment (gold in hand) remains as a store of wealth. Also it is an appreciating one now and in the foreseeable future. But, if you need peace of mind by buying such a hedge, buy a put option on the housing market, or the S+P or the Dow or lumber. But, consider it money spent on an insurance premium, not an investment.

Myself, I'd wonder if I should lower the risk by working more to pay down the debt or by maybe buying even more gold? Having been born with that which every child enters this world with, in lifetime sufficiency, namely greed, I'd probably do both. In fact, I have.
As always, these are just one man's opinions + thoughts. Appraise them as such.
happy weekend

GoldiloxBubble, bubble, toil and trouble . . .#1429284/1/06; 09:07:41

What constitutes a bubble anyway? Is it just speculative interest?

From what I've read, it seems that "bubble" is the term used for the effects of "excess liquidity" being funneled into a specific market, a la NASDAQ Y2K, or possibly RE 2002-2006. Think Tulip mania.

Anybody seen a bunch of "excess liquidity" heading for the PM markets? Other than the hullabaloo about Buffett's silver hedge (which has been so heavily editorialized, we're no longer sure of the facts), not much big money seems to be routed in the direction of PMs. In fact, a lot of "big money" is still try to maintain the impression that they are "dishoarding".

Even the CB announcements are tempered by the fact that no public market can accomodate their needs without huge speculative upheavals.

Commodity bubble? I think this can only be assumed if there is rampant hoarding going on. As long as these commodities are being actually consumed, it also doesn't fit the profile. Do SPRs count? Maybe, but probably not, since militaries sadly tend to use their stockpiles at some point.

Just my $0.04, inflation adjusted

DruidNed (4/1/06; 04:40:50MT - msg#: 142921)#1429294/1/06; 10:38:56

Druid: By-in-large inflation will financially ruin most of the people with the exception of the super rich, while, deflation (especially a deflation of paper "assets") would seriously stress the banking system, what road do you think we're on? Or asked another way, who do you think the cartel of the Fed/Wall Street/Treasury are going to move heaven and earth to protect?
mikalEmpty Chinese and American skyscrapers#1429304/1/06; 11:14:46 The Fed Officially Kicks Off the Next Recession - Robert McHugh - March 31, 2006
Apt recent quotes from Bernanke woven into analysis of loans, commercial banking, the Fed, M3 and recession.

GoldiloxInfla vs. Defla#1429314/1/06; 11:16:13

@ Druid,

Your exact scenario is why I believe that those who expect hyperinflation followed by deflation have it right. First, "inflate" the debt, followed by a massive revaluation of the perceived money, so that the "haves" win in both directions. This is exactly what occured in the 1920s bubbles and subsequent 1930s deflationary recession.

donnemuir FHA Home Equity Conversion Mortgage#1429324/1/06; 11:23:54

Here is an option to consider if you are age 62 or older...depending on the loan limits in your area of the country; you can convert your equity to cash, a line of credit, or simply pay of your existing encumbrances and live in your house for FREE (no debt service) as long as you live (6 months and 1 day of each year)in the property. AARP offers a complete guide: "Home Made Money, A Consumers Guide to Reverse Mortgages". I relieved myself of $ house payment and have a substantial line of credit that I can draw at will up to a specific payments required.
The mortgage balance accrues @6.25% on the actual amount you draw. One caveat, proprietary Reverse Mortgages offered by a number of banks and other lenders which are not HUD sponsored offer higher loan limits but include some "tricky language" in the loan documents which could trigger a default and result in foreclosure...investigate and choose carefully. Part of what was a house payment has been going for gold.

Gandalf the WhiteTHANKS, Sir Black Blade !#1429334/1/06; 11:42:25

ALWAYS good to hear from you !
Still punching those natural gas holes ?

Flatliner@Druid#1429344/1/06; 11:42:55

Well said. I agree that deflation in the money supply means bankers make less money, or better yet, bankers take large losses. (Un)fortunately, they have some really good tools (all digital) that will allow them to print money overnight if need be. There is no other conclusion to draw then the fact that there will be no shortage of paper money. If this makes sense, inflation is the obvious bet.

But, I would like to question how inflation can tell the difference between the super rich and everyone else? My studies have led me to believe that inflation will ravage the asset poor. Get yourself the assets you want now and for some time to come. Anything that you buy today, that can be used at some point in the future, will feel like gold in the hand. If someone told you that you could buy your daily supplies at 1/10th the cost, would you pass up the opportunity?

If you were an investor and someone told you about a hot stock, something that had been growing at 12% a year and was poised to break up, say 20-25% a year for the next five years, would you pass up the tip? Better yet, what if you could use the proceeds of the future sale tax free? Also, what if rather then depending on someone else to run the company, you ran it? This hot tip is inflation. All commodity prices are going up. Tax free commodities are those that you consume.

At one point in the future, you can count on the bankers changing all the rules in order to restore confidence. But, the game will be the same. They will maintain their privilege to print currency. Meanwhile, protect yourself until it's time to take advantage of a different investment opportunity.

For what it's worth, I'm a ‘glass half full’ type of guy and I enjoy a good cup of coffee and conversation.

TopazEquity draw down for PM's.#1429354/1/06; 12:04:49

Just a few thoughts on this:-
I'd concur with BB on the Primary Residence position and in reality would go further and ensure my unencumbered title deeds were in my possession.
Paranoia?? well maybe.
Whilst most here extol the virtues of Physical Metal over it's paper substitute, we might like to reflect a moment on how we measure this Physical. Most do so in Dollars (Yen Euro or whatnot), to access our equity and buying PM's might be similar say to selling our spare light-bulbs to buy Candles.
Of course LB's are a far more efficient light source than are Candles, BUT they require a System (the Grid) to function ...Candles OTOH can and do suffice in a Blackout.
We would not want to find ourselves using Candles if, through a power surge, the System blew out all our Bulbs and we had none to replace them with when power returned to normal.
If the grid goes down completely and utterly, Candle-holders of course will be laughing but it won't be because they have "power", they will be able to provide "light".
Big difference ...and relevant to the void that separates Physical and Fiat, beware not to confuse the two.


GoldiloxHow inflation favors the rich#1429364/1/06; 12:47:52

@ Flatliner,

"But, I would like to question how inflation can tell the difference between the super rich and everyone else?"

1) someone who is just getting by is hurt a lot more by a 50% haircut than someone who has plenty of excess assets to fall back on.

2) Debt-based "worth" can be erased by smart money management during inflationary times. Not that everyone does it, but those who do are rewarded afterwards.

TopazEQ's#1429374/1/06; 14:12:24

Size/Frequency been building steadily since the eclipse. Iranian 'quake kills seventy.
The Invisible HandIran still insisting on Persian Gulf oil bourse#1429384/1/06; 16:25:46

Apr 1, 2006, 13:16 GMT
Tehran - Iran is still insisting on opening a Persian Gulf oil bourse with the southern Iranian island Kish as its base, state-television reported Saturday.

USAGOLD / Centennial Precious Metals, Inc.A world of gold at your fingertips... 24/seven#1429394/1/06; 16:40:08">gold -- a global calling card
The Invisible HandUK Government in secret talks about strike against Iran#1429404/1/06; 16:44:33;jsessionid=BNGNLVFIZMQABQFIQMFSFFWAVCBQ0IV0?xml=/news/2006/04/02/wiran02.xml&sSheet=/portal/2006/04/02/ixportaltop.html

By Sean Rayment, Defence Correspondent
(Filed: 02/04/2006)
The [UK] Government is to hold secret talks with defence chiefs tomorrow [Monday] to discuss possible military strikes against Iran.
Armegeddon again!

Clink!@Goldilox#1429414/1/06; 18:05:37

I can almost hear the riddle being asked in elementary school :-

When do 1 + 1 = 3 ? Answer : When they're pennies ! (Actually nearer 3.2cents as I type ....)

As with gold and silver, even pennies have more value if they are held physically (LOL) !


BasilidesOil & Gold#1429424/1/06; 23:21:22

Does an academic somewhere (i.e. some professor at a research university) have a theory claiming to link the price of oil to the price of gold?

curious Lou

GoldendomeDid the Fed meeting this week cause the increase in metals prices?#1429434/2/06; 00:23:25

I can't help but to think, that the gold and silver breakout this week coinciding so closely with the Federal Reserve meeting, had something to do with that meeting. Though I have not heard or read anything claiming responsibility, it certainly seems that a ground shift in market sentiment occurred at that same time.

You recall, we were thinking, ugh, as gold dropped nearly eight dollars in the first twelve or so hours after the interest rate increase. Then, the market pulled itself off the floor and staged one of the grandest two day rallies that we've seen. Rallying twenty-seven or so dollars over the next two days. What was the reason? Some reverse twist of the old market adage: Buy the rumor- sell the news? Perhaps for the metals markets in this case it was: Sell the meeting- buy the results. Was this then just a huge short cover rally? I don't know, but it seems too large simply for that.

Was there something in the Fed language about concern for high commodity prices, perhaps leading to more future rate hikes, that in fact, spooked the metals markets higher? The threat of killing the economy to kill commodity prices, leading to credit defaults? Credit defaults: the increasing risk to General Motors and Delphi this week, could that cause the metals push?

How about...foreign holders of dollars, deciding that quarter point hikes in interest were no longer cutting the mustard. Did they decide under the cover of a Fed meeting, to sell dollars for gold? Them, thinking that the natural dip in metals markets after an interest rate increase, would cover or neutralize their actions in the market. Well, hallelujah! If someone thought that, they were wrong!

Was there some subtle shift in Fed posture--or was it, a no shift in posture that triggered the buying spree? How about, Iran? or Iraq? or Oil prices? I don't know. But when someone figures it out, I hope that they'll let the rest of us in on the secret of what caused the huge rally right after last weeks Fed meeting.

specie-manPennies#1429444/2/06; 00:47:55

Technically, the smallest-denomination US coins are not "pennies". They are "cents". "Pennies" (or "Pence") is a term originating in England for a denomination that was first made out of gold, then later changed to silver, followed by large-size copper, then small-size copper, and now today they are small-size copper plated. Imagine that. Pennies used to be made out of solid gold, and now they aren't even solid copper any more ! HaHaHa !

Note that the US Cents that are presently worth more than face value in copper are the ones dated 1981 and older, along with some dated 1982. Part way through the 1982 production run, the US Mint changed the cents from a solid bronze composition to a copper-plated zinc composition. Only the solid-bronze version is presently worth more than the vace value in "melt" value.

Recently I went to the bank and bought $40 worth of one-cent coin rolls to look through, to see what percentage were the pre-'82 bronze type (I also needed some solid bronze pieces to use for deburring media in my vibrating tumbler). Approximately 10% of the total were solid bronze. Among those, I was surprised to find about 50 of the older "Wheat-Back" cents, mostly from the 1940s and 1950s (1958 was the last year for the Wheat cents). But there was also a 1937, 1937-D, 1925-S, 1919, and 1919-D in the group.

PS: Note that in 1943, US cents were generally made of zinc-coated steel so that more copper would be available for making ammunition. 1942 and 1944 cents were generally bronze. But by accident, a few 1943 bronze cents, and a few 1944 steel cents, were made in error. Only a few are known and they are generally worth tens of thousands of dollars each. But don't get fooled by a fake copper-plated 1943 steel cent, or a fake zinc-plated 1944 bronze cent (a simple test is to apply a magnet). I've also seen a 1948 bronze cent with the date engraved (altered) to look like "1943".

GoldiloxGlobal Credit Ocean Dries Up#1429454/2/06; 01:42:38


One by one, the eurozone, the Swedes, the Swiss and now even the Japanese, are turning off the tap of ultra-cheap credit that has flushed the global system for the past year, keeping the ageing asset boom alive.

The "carry trade" - as it is known - is a near limitless cash machine for banks and hedge funds. They can borrow at near zero interest rates in Japan, or 1pc in Switzerland, to re-lend anywhere in the world that offers higher yields, whether Argentine notes or US mortgage securities.

Arguably, it has prolonged asset bubbles everywhere, blunting the efforts of the US and other central banks to restrain over-heating in their own countries.

The Bank of International Settlements last year estimated the turnover in exchange and interest rates derivatives markets at $2,400bn a day.

"The carry trade has pervaded every single instrument imaginable, credit spreads, bond spreads: everything is poisoned," said David Bloom, currency analyst at HSBC. "It's going to come to an end later this year and it's going to be ugly, even if we haven't reached the shake-out just yet," he said.

"People have a Panglossian belief in the march of global capitalism but that will change as soon as attention switches back to US financial imbalances," he said.

There were early signs of panic this week when the Icelandic krone crashed 8pc in two days, setting off dominoes in high-yielding currencies of New Zealand, Australia, South Africa, Hungary and Brazil.

The debacle was triggered when the rating agency Fitch downgraded Iceland's sovereign debt, a move that would not normally rattle markets. The new skittishness comes against a backdrop of ever more hawkish moves by Japan and Europe.

"There are several hundred billion dollars of positions in the carry trade that will be unwound as soon as they become unprofitable," said Stephen Lewis, an economist at Monument Securities. "When the Bank of Japan starts tightening we may see some spectacular effects. The world has never been through this before, so there is a high risk of mistakes."

Toshihiko Fukui, the Japanese central bank governor, gave a fresh warning yesterday that this day is near, saying the country was pulling out of seven years of deflation. The economy grew at a 5.5pc rate in the fourth quarter of 2005. In his strongest words yet, he said the bank would act "immediately" to curtail its extra injections of liquidity, preparing the way for rate rises above zero in coming months.

"The moment of truth is approaching,'' said Kenichiro Ikezawa of Daiwa SB. In Europe, Sweden raised rates to 2pc this week in the face of an overheated Stockholm property market, while Germany's IFO business climate index soared yesterday to its highest level in 14 years.

The European Central Bank will almost certainly raise eurozone rates to 2.5pc in March, with likely moves to 3pc by the end of the year.

Most of the world is now tightening, with no sign of a fresh credit window opening to keep the game going. This is new. Japan has had the tap on continuously as the trade exploded over the past five years, while America itself became the source of funds after it slashed rates to 1pc at the end of the dotcom bubble, and held them there until June 2004.

The US Federal Reserve has since raised rates 14 times to 4.5pc in a belated effort to restore monetary discipline, with at least two more rises priced into the markets. It is an open question whether the yen, euro, Swiss franc and Swedish krona carry trades have occurred on such a scale that they have led to over-investment in Latin America and beyond, and compressed US yields, fuelling the American housing boom in 2005 despite Fed tightening.

There are other big forces at work: huge purchases of US Treasuries by Asian central banks, and petrodollar surpluses coming back to the US credit markets. Stephen Roach, chief economist at Morgan Stanley, warns that the carry trade is itself, in all its forms, a major cause of dangerous speculative excess. "The lure of the carry trade is so compelling, it creates artificial demand for 'carryable' assets that has the potential to turn normal asset price appreciation into bubble-like proportions," he said.

"History tells us that carry trades end when central bank tightening cycles begin," he said. Ominously, almost every bank other than the Bank of England is now tightening in unison.

GoldiloxThe Origins of the Oil Bourse#1429464/2/06; 01:57:52


The idea of creating a new trading platform in Iran to trade oil and to create a new oil benchmark crude apparently originated with the former Director of the London International Petroleum Exchange, Chris Cook. In a January 21 article in the Asia Times, Cook explained the background. Describing a letter he had written in 2001 to the Governor of the Iranian Central Bank, Dr Mohsen Nourbakhsh, Cook explained what he advised then:

‘In this letter I pointed out that the structure of global oil markets massively favors intermediary traders and particularly investment banks, and that both consumers and producers such as Iran are adversely affected by this. I recommended that Iran consider as a matter of urgency the creation of a Middle Eastern energy exchange, and particularly a new Persian Gulf benchmark oil price.

’It is therefore with wry amusement that I have seen a myth being widely propagated on the Internet that the genesis of this "Iran bourse" project is a wish to subvert the US dollar by denominating oil pricing in euros.

’As anyone familiar with the Organization of Petroleum Exporting Countries will know, the denomination of oil sales in currencies other than the dollar is not a new subject, and as anyone familiar with economics will tell you, the denomination of oil sales is merely a transactional issue: what matters is in what assets (or, in the case of the United States, liabilities ) these proceeds are then invested.’

A full challenge to the domination of the dollar as world central bank reserve currency entails a de facto declaration of war on the ‘full spectrum dominance’ of the United States today. The mighty members of the European Central Bank Council well know this. The heads of state of every EU country know that. The Chinese leadership as well as Japanese and Indian know that. So does Vladimir Putin.

Until some combination of those Eurasian powers congeal in a cohesive challenge to the unbridled domination of the USA as sole superpower, there will be no Euro or Yen or even Chinese Yuan challenging the role of the dollar. The issue is of enormous importance, as it is vital to understand the true dynamics bringing the world to the brink of possible nuclear catastrophe today.

As a small ending note, a good friend in Oslo recently forwarded me an article from the Norwegian press. At the end of December, Sven Arild Andersen, Director of the Oslo Bourse, announced he was fed up with depending on the London oil bourse trading oil in dollars. Norway, a major oil producer, selling most of its oil into Euro countries in the EU, he said, should set up its own oil bourse and trade its oil in Euros. Will NATO member Norway become the next target for the wrath of the Pentagon?



I don't know, and they're a lot smarter than I am, but I'll stick my neck out. World stability changed direction after 9/11 when the Bush administration declared war on the world - at least all parts of it not subservient to US interests. The price of peace with the US is "knowing who's boss" and being respectful and obedient - just like organized crime family members are to "The Godfather." But just as mob bosses mete out punishment to disobedient underlings, so too will be the fate of any nation daring to go its own way, independent of US wishes. It'll likely see some hostile action against it - political, economic, military or all three.

The "fun and games" began for real against Afghanistan a month after 9/11 and went into overdrive against Iraq in March, 2003. Now the war drums are audible against Iran, at the head of the target country queue, with Venezuela and Syria likely next in line and other choices to be named later to follow. Despite the enormous cost (an economic boon at the outset and for a while), the Bush administration declared a "permanent state of war" and doesn't want to be accused of running out of targets. To keep the war economy going they'll always have another one at the ready.

Looking back, the price for good times that were too good or for reckless behavior that was too reckless has always been the same - the day comes when you "gotta pay the piper." That may not be this week or next month, but I'll speculate that the sharply rising gold price in the US is discounting more than the usual financial rebalancing its price action usually indicates. Ask any gold seer and they'll explain that while geopolitical events may affect the price of gold, they're never a major factor. I'll be contrarian and speculate that along with whatever other message the gold market is sending, it's also signaling concern about the geopolitical threat to peace and world stability, especially in the strategically important Middle East. High oil prices may be sending the same signal, although of late prices have stabilized and come off a bit.

My best guess is that the rising gold price may be the canary in the mine shaft warning of a growing and dangerous change in world stability reflected in investor sentiment. At times of growing economic or geopolitical tension, uncertainty or danger, gold is seen as a conservative asset or "safe haven" and a way to preserve wealth as it always has been for the past 6,000 years. That's a track record even the Dow Jones averages can't match.

There's a lot for investors to worry about now along with the new war drums beating I'll discuss below. There's the perceived threat of terrorist attacks, the continued loss of civil liberties in the West and especially in the US, the possible disruption of oil supplies, and at some point that "piper" waiting to be repaid for years of financial profligacy in the US to fund all the "adventuresomeness" and excess stimulus to keep the economy humming. And there's one other factor affecting the US dollar. Many currency experts believe the currency is in a long-term bear market that began in 2002, even though it rebounded well last year and is holding its own so far this year (a cyclical rally in a longer term secular bear market say the dollar bears). Some of the reasons given for this trend are the emergence of the euro as a competitor to the dollar in December, 2001 by the 12 European nations using it and the desire of other nations to diversify into other currencies (as well as gold). And its interesting that some Islamic nations have begun doing some bilateral commerce in gold dinars and China now has its first gold exchange. All this signals a potential or maybe likely shift away from the almighty dollar as the world's primary reserve currency.

UsulGold penny sold for £230,000 on 6 October 2004#1429484/2/06; 05:58:15

The link contains a particularly nice image (scroll down a bit).

The long debasement of the penny from gold to plated steel is a salutory lesson indeed.

The silver penny was introduced to England around the year 785 by King Offa of Mercia, in the English midlands.

The weight of silver pennies was reduced over time, and fineness was often poor, but Henry VIII debased them considerably by making them two-thirds copper, earning him the nickname "Old Coppernose". Silver pennies returned (together with base metal pennies, so one wonders how Gresham's Law operated in that time) in the reign of Queen Mary, 1553-1558. By the end of George III's reign (1760-1820), the penny was minted in copper. Early copper pennies had to be worth a penny, and hence weighed one or two ounces each. However, silver pennies were again produced in 1816 in the "great recoinage".

Between 1839 and 1860, the penny was made of copper, and from 1860 it was made of bronze. Pennies from the Victorian era could be found in circulation up to decimalisation in 1971.

The decimal penny was also bronze, but was replaced in 1992 by copper-plated steel- the coins may easily be distinguished as the steel ones are attracted by a magnet.

Silver pennies are still minted in the form of Maundy money with a fineness of 0.925, in denominations of 1, 2, 3 and 4 pence and are legal tender. The Queen dispenses Maundy money in an annual ceremony on Maundy Thursday, the recipients (deserving senior citizens) receiving two small leather string purses; a red purse containing ordinary coinage in lieu of gifts of food and clothing; and a white purse containing silver Maundy coins consisting of the same number of pence as the years of the sovereign's age.

A silver Maundy penny weighs 0.5 grams, and has a diameter of 11 mm. There were some Millennium Silver collection sets issued containing Maundy silver pennies.

Thoreauly"Life After the Oil Crash"#1429494/2/06; 09:04:55

If oil is "black gold," then gold is "yellow oil," in which case the more of the latter one owns, the more of the former one will be able to afford.

Even so, increasing numbers of wealthy Americans are operating on the belief that you not only CAN take it with you, you MUST:

FlatlinerAny guesses??#1429504/2/06; 13:18:37

How might someone interpret the linked fed-speak?

Thanks MK for creating a little suspense.

BoilermakerFlatliner & MK re FedSpeak#1429514/2/06; 16:07:24

For me this is the most revealing part of the Fed's statement:
"As yet, the run-up in the prices of energy and other commodities appears to have had only a modest effect on core inflation, ongoing productivity gains have helped to hold the growth of unit labor costs in check, and inflation expectations remain contained. Still, possible increases in resource utilization, in combination with the elevated prices of energy and other commodities, have the potential to add to inflation pressures."

Why would they add "expectations" after the word inflation if inflation were really contained?

GoldendomeFlatliner: from your Federal Reserve press release.#1429524/2/06; 16:10:30

Quote from the release: "ongoing productivity gains have helped to hold the growth of unit labor costs in check,"

No doubt! Outsourcing of jobs helps productivity...Producing the same or more, for less.

GoldiloxInflafla expectations#1429534/2/06; 16:19:45

@ BM,

Good eye!

What a difference between "containing inflation" and "containing expectations."

USAGOLD / Centennial Precious Metals, Inc.Especially designed for those who are taking their first step in the gold market...#1429554/2/06; 17:17:09">gold ownership starter kit
MKFlatliner, Goldendome, Black Blade, Goldilox, Boilermaker: Warming the Frog#1429564/2/06; 17:24:02

Here's what I think happened between the time of the Fed announcement (on Tuesday) and gold's ultimate reaction (Weds and Thurs) which was a strong, unexpected drive to higher ground.

1. Boilermaker, Goldilox are observant and correct. The word "expectations" plays large. It indicates that Bernanke, who I assume played large in the wording of the release, sees this as a game, that is, a statistical game between him and the markets. He knows, Wall Street knows and most of the people in and around this forum know that the inflation has already been created; it's just a matter of it feeding to prices which is already obvious in commodity pricing on just about everything, but hidden from the average consumer through another game, government statistical reporting. As Black Blade points out, why else would the Fed be so interested in shelving the M3 report which just everyone uses to gauge and predict "inflationary expectations" if not to cover up what is in the process of occurring.

2. My take is that markets know that we are already in an inflationary period. In fact, the United States government and Federal Reserve may not be able to control either the money supply or interest rates. I think big money knows this. They are not betting on whether or not Bernanke's policy is easy or tight. They know it's easy. They are betting on whether or not he can keep the "expectations" IN FINANCIAL CIRCLES contained; whether or not, as Black Blade put it, he can keep the public from finding out what's going on behind the curtain.

3. And most importantly. . .The other question was whether or not Bernanke represented something different than Greenspan. Financial people wanted to know if his new position had gone to his head and somehow he was going to become a real inflation fighter. Transition times like these can be dangerous. After all, he could be another Volcker! Maybe he would threaten to raise .5%, or talk about the situation being out of control and a time for a new, tougher policy. It didn't happen. He confirmed with the .25% rise and rhetoric similar to Greenspan's that he would not respond to raging commodity prices by pulling the rug. In other words, Bernanke showed Wall Street he was a player. Now. . . he and the Bush administration have their own reasons for that, but as far as Wall Street was concerned, it sighed a huge sigh of relief.

4. This, of course, means more of the same. We aren't talking about boiling the frog here. We are talking about warming him up a half a degree at a time.
Meanwhile, inflationary forces are building underneath this economy like nothing we have ever seen. There will be what we could call stagflationary counterparts, but the underlying melody will be inflationary. This is precisely the kind of policy Germany played out in the 1920s refusing to raise interest rates because it would only add to the inflationary pressure. The consequence was hyperinflationary. To make a long story short, Helicopter Ben, by confirming to follow in Greenspan's mold, looked every bit the role. The big players saw it, they dove for the football (gold) and by the way the rest of the commodity complex as well.

5. The kicker was the very last paragraph. "The Committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance. In any event, the Committee will respond to changes in economic prospects as needed to foster these objectives." First of all, who uses the phrase "in any event" literally. Yet, that is what the Fed did. That paragraph could be read a dozen ways, but when you take all the above into account, and you keep in mind that the concern on everyone's mind was whether or not he would take away the punch bowl, that phrase comes off as meaning: He will revert to lower interest rates at the first sign of a disinflationary consequence to the slow rise, warming the frog, policy. So don't worry.

In the above I left out the effect of rising interest rates on the budget deficit (very negative if we go much further), the interest rate conundrum (which will continue to undermine the Fed's attempts to raise rates in reality), the carry trade and burgeoning currency crisis in New Zealand (which could spread to Australia and the major financial capitols from there), the Fed's newly awarded powers in the derivatives' markets (which will give the Bush administration's "real" dollar policy some teeth) and some odds and ends. . .but I thought I'd give you guys something to chew on, since I brought this all up a few days ago and never followed up ('til now).

GoldiloxGasoline prices#1429574/2/06; 17:52:31

Those fuel companies are pretty smart cookies. In the post-Katrina weeks they allowed pump prices to jump to a market saturation point, and took very good notes before prices relaxed enough to quiet the whining.

The past three weeks have delivered prices at the pumps over $3.00/gal for premium in CA (I saw 3.12 at one major this morning), and since we have already seen a peak of $2.80ish, people are taking the $0.50 bump in stride.

Yes, kiddies, inflafla is flowing through to prices, but the delayed effect allows the hedonists to paint it differently long enough to unwind their most dangerous positions while they wax prophetic!

mikalInstitutions, gold investors take gold market beyond jewelry#1429584/2/06; 19:07:52

Gold higher but volatilty expected - Times of Oman -
Palazhi Ashok Kumar - April 3, 2006

FlatlinerLook… the frog's warm#1429594/2/06; 19:15:58

In other words, it seems, that nothing has changed with Fed policy. They are not in the business to fight inflation, but rather in the business to fight expectations of inflation. As long as people buy the stories in the media, they can keep doing what they are doing. If some event happens, well, they'll take care of it and sweep it under the rug. Meanwhile, those that see the real rate of inflation will continue to race towards physical assets. Those few know that the Fed has no intension of stopping the accumulation.

Looking back in the archives, we find a quote from Another "Fact: If the world bids up the price of gold, all deals will be off! It would be every nation for themselves.Oil would explode in price!" Another's statement seems to imply that if the Fed doesn't keep the price of gold at or below the production price those that trade oil cheaply, because gold is cheap, will raise the price of oil to what the world is willing to pay.

We also know that because of the strong dollar policy, those that are accumulating gold with US dollars are getting that gold really cheap. Along with this, there are so many dollars in existence that it would(could) buy up all the gold in a heart beat. So, oil, which has not had any competition for gold now has some! Ah! What has been an invisible transfer of wealth looks as if it's going to be less transparent in the years ahead.

So, while the Fed continues the illusion of no inflation, we'll all watch as large corporations fail and thousands are laid off. House prices is the current targeted asset bubble so one would expect them to raise rates to pop that and then pump the liquidity behind the scenes to repair the fallout. This will continue to re-affirm their roll as an inflation fighter to the public. But, to those that know, they will see it as more hidden hyperinflation of the money supply that only makes the prices of today look better everyday.

More of the same does not look good for the world.

GoldiloxGrim Economic News Gets Grimmer#1429604/2/06; 20:16:28


You probably saw the story the other day that the U.S. Bureau of Labor Statistics reported that real wages in 2005 had dropped 0.9 percent from the year before.

That was big news because in 2004 overall real wages were flat. For the first time as long as wage records have been kept, American workers' income had not increased in two straight years.

There was other disturbing economic news that came at about the same time but didn't get as much publicity.

For instance, the Federal Reserve not so surprisingly found that "growing numbers of American households face mounting debt and financial instability."

Roughly 76 percent of households carry a debt load averaging $55,300 or about 128 percent of the median household income. That's not surprising either since costs for health care and education alone have been rising well above wage increases, not to mention the cost of gas for the car and natural gas for the furnace. Many American workers are now sacrificing annual raises so that their employers can afford to pay the increases in health insurance.

All of that has caused a 10 percent average family increase in credit card debt and a proliferation of bigger home equity loans almost all of it, of course, in America's middle class.

Many economic analysts see rising costs, plus greater job instability at some of the traditional blue collar corporations in the country, forcing many families to borrow on high-cost credit just to stay even. They can only hope that times will get better so that they can pay off that debt.

And, of course, the economy of the past few years has significantly widened America's infamous gap between rich and poor. America's wealthiest 10 percent experienced a net worth increase of 6.1 percent in 2004 to an average of $3.1 million. But the bottom 10 percent had their net worth fall from zero in 2001 to minus $1,400 in 2004, which means that they owed more than the value of their assets.

Pat Schneider of our staff reported only a few weeks ago that the number of families using food pantries in a 16-county area in southern Wisconsin has grown by 34 percent in the past three years. Nationally, the increase in food pantry use has averaged about 8 percent a year.


It looks like a lot of folks in the "ownership society" really only own a piece of the debt-berg. Maybe the frog's water is warmer than we think.

GoldiloxA Rustling in the Bushes#1429614/2/06; 20:38:18


I was surprised to see that Total Fed Credit was not exploding last week. I was even more surprised to see that Foreign Holdings of U.S. Debt held at the Fed was actually down by $8 billion last week, too. Even the banks were not making fools of themselves, as is their wont, by gobbling up huge fistfuls of government debt. It was, in a word, quiet. In the movies, when somebody remarks how quiet it is, the hero says "Too quiet!" and the next thing you know there are arrows and/or bullets flying all over the damned place.

So I nervously remark that it is, indeed, the proverbial "too quiet", because I know that there are enemies out there. For one thing, crude oil prices are up to around $66 a barrel, although to think that oil exporters would NOT factor in an increasing devaluation of the dollar into the price of oil, in the face of enormous American trade deficits, monstrous American budget deficits and stupefying rises in American business and household debt levels, is to insult their intelligence. And in that regard I will note, with a snide Mogambo sneer (SMS), that they were smart enough to grab the global real estate that had most of the oil, while we took the part that is next to Mexico and South America, places so corrupt and stupid that economic refugees are flooding into the USA to get away from there!


In his inimitable style, the Mogambu Guru tackles debt, oil, immigration, and corruption all in one fell swoop.

GoldiloxGold prices: More volatility lies ahead - Oman#1429624/2/06; 20:53:49


MUSCAT — Gold prices are expected to witness high volatility in the days to come as sharp upsurge in international demand for gold, especially from Chinese, Indian and American investors continues to trigger prices.

As the World Gold Council underlines, "gold is completely free of credit risk, although it bears a market risk. Gold has always been a secure refuge in unsettled times."

Gold has proved itself to be an effective way to manage wealth. For at least 200 years the price of gold has kept pace with inflation. In 1999, Alan Greenspan, then chairman of the Federal Reserve of the US, said: "Gold still represents the ultimate form of payment in the world."

Gold prices climbed by 36 per cent since April 2, 2005. In Muscat, a ten-tola piece (116.64 grams) of gold biscuit was worth RO849 yesterday. The price per gram for 24-crt gold is quoted at RO7.278, and 22-crt is quoted at RO6.674.

The undertone indicates that prices may cross $600, and some investors are even eyeing a price of $800 a troy ounce. Gold prices have also been bolstered by the entry of new institutional investors.

"International markets witness an aggressive buying from stockists and institutional investors such as central banks and other financial institutions across developing and developed markets. On March 31, 2006, the price stood at over $581 a troy ounce (one troy ounce is 31.1034768 grams) in the international market. One gram of gold is now worth more than $18.92 (RO7.278)," Riyas, senior manager, operations, Sea Pearls Oman told Times Business. On March 30, 2006, on the New York Mercantile Exchange, gold prices climbed to a 25-year high of $588.10 an ounce on high speculation that prices might touch new highs.

Riyas said nobody would be surprised if prices crossed $600 before the end of this year. But he strongly cautioned people that high prices also mean high risks.

Traders from Mumbai said that demand for gold in small markets had tumbled over the past two months or so, as prices continue to test new historic levels.

Oman, the neighbouring markets and India, according to gold market analysts, now witness a fall in demand for jewellery.

"Over the long-term, gold has a history of maintaining its purchasing power in real terms. Though studies had shown that over the last decade gold has been a depreciating asset, taking a 30-year perspective, it has been an extremely good investment, and over fifty years, it has more than held its own against inflation. This is another sound economic reason for holding gold, as it remains its store of value," analysts from Dubai said.

India is the world's largest market for gold. Gold consumption in India now stands at more than 850 tonnes, and is growing by nearly 25 per cent a year. It was estimated in 2004 that Indians hold more than 13,000 tonnes of gold in various forms, more than seven per cent of the total global gold stock.

mikalGold up on Monday#1429634/2/06; 21:38:07

Gold Inches Up After Round of Profit-Taking in NY - Reuters - Tokyo - 4/03/06
mikalPadded earnings reports, homespun statistics due in 2nd quarter#1429644/2/06; 22:03:05 Wall Street facing an economic conundrum - AP - April 3
"Reports on job creation, other key economic data due in the week ahead."
More economic tall tales and drama clothed in the language of Wall Street and DC approved academia.

mikalDate correction#1429654/2/06; 22:05:53 MSNBC/AP story below released April 2, 2006
GoldiloxIran denies Swiss paper's claim in withdrawal of Gold assets#1429664/2/06; 22:45:18


Tehran, March 31, IRNA-An informed source in Central Bank of Iran on Friday denied the news published in a Swiss daily on withdrawal of 250 tons of Iran's gold reserves from that country's Credit Bank.

The Central Bank official, who spoke on condition of anonymity, told the Economy Desk at IRNA Head office in Tehran Desk, "The news published in the Thursday edition of the Bern-based daily Der Bund, on Iran's withdrawal of 250 tons of its gold reserves, worth five billion Swiss francs, and transferring them to Tehran is totally baseless."

Der Bund had added in its story that apparently Iran has ever since last October withdrawn 700 tons of its gold reserves, worth sixteen billion Swiss franks, from various Western monetary funds and transferred them to other unknown destinations.


What would Iran rumors be without some gold intrigue?

Ten BearsBANKING BUNKUM By Henry C K Liu #1429674/2/06; 22:46:45

In light of recent events...may be worth a second look.
The surge in the money supply since the attacks on September 11, 2001, was equal to about $300 billion, which significantly represents about 3.0 percent of GDP, this after the Fed injected $1 trillion into the banking system in the days following the terrorist attacks in New York and on the Pentagon. Since the beginning of 2000, $8 trillion of stock market wealth has vanished, that is 80 percent of annual GDP, or the entire M3 in 2001. Another way to look at these figures is that the entire face value of the US money supply has vanished through market correction.

(written in 2003).. Is the current elimation of the m3 data anticipating a huge increase to off-set another stock crash?

additional snippets:
Central banks in desperate times would look to hyper-inflation to "provide what essentially amounts to catastrophic financial insurance coverage," as US Federal Reserve Board chairman Alan Greenspan suggested

By socializing their risks and privatizing their speculative profits, risk speculators hold hostage the general public, whose welfare the Fed now uses as a pretext to justify printing money to perpetuate these speculators' joyride.

Money, classical economics' view of it notwithstanding, is not neutral. Money is a political issue. It is a matter of deliberate choice made by the state. The supply of money and its cost, as well as the allocation of credit, have direct social implications. Policies on money reward or punish different segments of the population, stimulate or restrain different economic sectors and activities. They affect the distribution of political power. Democracy itself depends on a populist money policy

The creation of the Federal Reserve System was the result of a confluence of political pressures. Fundamental among these pressure was the new awareness, as Braudel hinted, of a heretical proposition that capitalism cannot sustain price stability through market forces. That proposition may not be valid, but centuries of experimentation and innovation have yet to devise a monetary system that can provide permanent market price stability. It was increasingly recognized that the process of capital accumulation inherently produces periodic cycles of fluctuating money value: inflationary "easy money" stimulating economic growth, spreading wealth from the top down, followed by its depressant opposite "tight money" slowing down growth, reconcentrating wealth. Just as there is a business cycle in a market economy, there is a monetary cycle in a capitalistic system.

The Greenspan bubble was actually accompanied by pockets of deflation, most visibly in the manufacturing and commodity sectors, mostly caused by excess investment that led to global overcapacity that fed low-priced imports to the US economy. Deflation has practically destroyed the farming and several other commodity and basic-material sectors in the past decade, including steel. It has eliminated much of US manufacturing. The deflation that faced selected sectors of the US economy in the past decade had not been market-induced as much as it was policy-determined. The Fed's fixation on driving inflation lower, regardless of economic consequences, has caused untold damage to the economy and forced its restructuring toward an unsustainable debt bubble.

It is an economic truism that low inflation for a large, complex economy can only be achieved by driving certain sectors into deflationary levels.

The point here is not to apologize for corruption but to point out that corruption is part and partial of finance capitalism, as the savings and loan (S&L) crisis, the Milken junk-bond scandal and Enrontitis of recent times continue to show clearly. The real culprit was not corruption but deregulation. The Telecommunications Act of 1996, for example, which aimed to create competitive markets for voice, data and broadband services, unleashed a flood of investment in wireless licenses, fiber-optic cable networks, satellites, computer switches and Internet sites, and accounted for much of the new capital that poured into the economy through Wall Street's equity and credit markets. The same was true in the energy sector. But the biggest culprit was financial deregulation.

Under finance capitalism, inflation is not merely too much money chasing too few goods, as under industrial capitalism. Under financial capitalism, two elements - credit availability and credit markets - have overshadowed the traditional goods and equity markets of industrial capitalism.

The Fed, notwithstanding its intellectual pretense, has always been a political institution. The politics of economics repeatedly resurrects from the intellectual wasteland, the theoretical Siberia as it were, new gurus to support its latest ideology. Nobel winners are proponents of theories that explain "scientifically" last year's political expediency. The list includes Friedrich von Hayek (free market), Friedman (monetary theory), Robert Mundell (global capital), Schumpeter (creative destruction) etc. Wicksell makes it respectable for Greenspan to abdicated his responsibility as Fed Chairman, by pretending to follow the market, to treat interest rates as prices of money set by market forces, and not as a tool to promote employment or growth, an if necessary only as a tool to bail out banks in distress.

In the quest for monetary order, stable money in reality creates economic disorder in the real economy. Within the conservative political context of capitalism, stable money produces a complacency of moral satisfaction. The winners are credited with financial genius and rewarded with the right to practice conspicuous consumption, taking on celebrity status. The losers are condemned for their mistakes. It fits neatly into Spencerian Social Darwinism of survival of the fittest, notwithstanding that the criteria for fitness have been defined by policy. The tilted market is hailed as the indiscriminate crucible of perpetual economic revitalization, while in fact a handful of men in the paneled boardroom of the Fed play God to decide who lives and who dies.

With globalization, we are heading toward an economic order in which every sector can accommodate only five megafirms, two real players, market leaders as they are called, in a carefully choreographed condominium that appears to be managed competition to stay on the good side of antitrust laws, with three minor players permitted to survive for appearance' sake.

Ten Bearscorrect link#1429684/2/06; 22:57:47

a link
GoldendomeWarming the Frog#1429694/2/06; 23:54:13

MK: Thanks for your analysis. Much appreciated.
GoldiloxLiu#1429704/3/06; 00:16:07

@ Ten Bears,

Thanks for the Henry CK Lui post. I always enjoy his NO-BS analyses.

TownCrierSpringboard ready for gold's leap#1429714/3/06; 01:59:16

Mumbai , April 2 -- Gold has been in the consolidating phase last two months; and now a springboard for leap up is ready.

Towards the latter part of last week, a weaker dollar, gains in other commodities, fund inflows with the approach of month-end/quarter-end and ongoing geo-political uncertainty all combined to fuel speculative buying interest to push the market to newer heights.

The yellow metal gained more than $15 on Thursday last to settle only slightly below $590 an ounce, while on Friday it closed a shade less than $585/oz due to profit taking. Nonetheless, the up-trend is unmistakable...

There are still higher highs set to come, chartists said.

The next big target of $600/oz is seen increasingly achievable, according to experts.

^---(from url)---^

"Chartists" and "experts"... thankyouverymuch.


TownCrierJapanese buying gold#1429724/3/06; 02:08:40

April 3 (Bloomberg) --

...a weaker yen led some Japanese speculators to buy the bullion to hedge against the declining value of their assets denominated in the currency.

The yen dropped as the Bank of Japan's Tankan report showed business confidence unexpectedly fell in March, fueling speculation the central bank will keep its zero-interest-rate policy for the foreseeable future. Japanese investors tend to buy gold on concern the yen will weaken.

Gold may top $600 this week for the first time in 25 years as investors buy bullion instead of U.S. bonds, a Bloomberg News survey shows.

Nineteen of 30 traders, investors and analysts surveyed from Sydney to Chicago on March 30 and March 31 advised buying gold, which rose $21.20 to $586.70 an ounce last week in New York. Seven advised selling and four were neutral.

^---(from url)---^

Not exactly "news", but for what it's worth it's what is being served up for breakfast on Main Street.


TownCrierGold, silver push higher during week; Yield to rule Q2 FX trade#1429734/3/06; 02:28:49

3rd Apr 2006; KUWAIT CITY:

...The dollar gave back its fed rate hike inspired gains pressured by ECB rate hike speculation, rising interest rates in Japan, new post revaluation high in the Yuan , speculation the UAE may increase its Euro reserve holdings, a new twenty five year high in the price of gold, and month /quarter end position squaring.

In addition rumors are circulating that US. Treasury Secretary Snow may be sacked and replaced by someone who will seek a weaker dollar to boost growth.


The dominant themes for FX trade in the second quarter will be, yield differential, the value of the Yuan, and unwind of carry trades. we expect the Fed to hike rates 25 bps in May and then pause at 5 per cent. As the Fed takes a pause in it tightening cycle, focus will shift to monetary policy in the EU and Japan.

...With the Feds’ tightening cycle near an end and rates expected to rise in the EU and Japan, the dollar should begin a gradual decline. China is expected to encourage more appreciation of the Yuan in front of HU's visit to the US next month.

If China seeks more Yuan flexibility China will need to diversity some of its dollar holdings and the need to buy dollars to maintain the Yuan value should decline...

The Metal Market
Overview: Gold pushed higher all this week, while silver pushed higher. The market received support from a report that the UAE would be raising its Euro portion of reserve assets to 5-10 per cent from 2 per cent. That led to speculation of further petrodollar buying of precious metals. Buying was also sparked by upside breakouts made during last Wednesday's trade. Gold broke out the top of a flag pattern... The significant strength in metals seen in recent days almost has a mania feel to it.

There was a comment from a brokerage firm analyst that the dollar will lose its reserve currency status and that will leave gold "nowhere to go but up." The expectation is based on the growing trade deficit, rising home prices, a negative savings rate, and "reckless consumer spending" in the US He said those factors would cause foreigners to lose their appetite for US bonds. While his comments are theoretically possible, they are realistically unlikely. There have been many calls for the dollar to lose its reserve status over recent decades, but it just hasn't happened. Using an unlikely scenario for long-term buying in metals to coax short-term trades contributes to speculative excess and is likely responsible for a good portion of recent strength.

^---(from url)---^

The comment used in the concluding remarks, "but it just hasn't happened", is a classic case of a fool attempting to drive through unfamiliar territory by looking into the rearview mirror.


TownCrierWhat Happens to Gold in a U.S. vs. China Trade War?#1429744/3/06; 03:07:57

LONDON ( -- As trade relations between the U.S. and China become thornier and the tone of public discourse in the U.S. turns more towards protectionism, a trade war is becoming a significant possibility. If this scenario does develop, then what is the outlook for gold?

...If one takes the stability of the U.S. dollar as overwhelmingly the key factor affecting the gold price in this day and age, then the effect of a trade war on the parity of the dollar must be the main consideration here.

The initial effect would be the precipitation of a dollar collapse, as one of the reactions of the Chinese to the implementation by the U.S. of protectionist measures aimed at Chinese exports will likely be to cease purchasing U.S. treasuries with the foreign currency reserves that China's central bank is constantly accruing at a high rate.

This, and the following suit by other East Asian central banks that it would trigger, removes the most important source of funding for the U.S. trade deficit and hence the primary support for the dollar at its present level. Thus, the dollar would immediately fall and gold would immediately appreciate.

China would also respond to sanctions against it by restricting its imports from the U.S., lessening the demand for dollars on the open market. This would further weaken the dollar and hence stimulate a further advance in the gold price.

...If a transition to the use of new reserve currencies were rapid and complete enough, then gold could be cut out of the equation entirely and be left to depreciate to well below its current level. This though is unlikely; the transition would probably not reach completion quickly enough, and a role for gold would remain.

It should be stressed that the postulation of a simple linear relationship between the real purchasing power of gold and that of the dollar is invalid as far as this question goes and indeed as far as any analysis of the gold price goes. The crucial factor is the instability of the dollar in the absence of suitable alternatives, allowing gold to step in to the void as a quasi currency.

^---(from url)---^

Beyond the simple wish that the analyst had said "reserve asset" instead of the the innocuous term "quasi currency", I suppose I could also make the futile wish that he spent more time trying to understand the socio-political complexities that argue against a simple continuation of a reserve role for the dollar or of a substitution in this role by its other fiat peers. That is, which nation (or "basket of nations") will be so eager to inherit the associated problems with trade competition? And on the flip side of the coin, what CB will find any sense in using a new orchestra simply to replay the same old ugly tune? Therefore, one should expect an entirely new song and dance.


SundeckThis day, 3 April, over the years according to the NYT...#1429754/3/06; 04:02:53

...quite an eventful day really...

Truman signs Marshall Plan allocating $5B in aid to 16 European countries in 1948...$5B wouldn't go too far today - about two days US borrowings...

In 1882 Jesse James copped a slow slug from Robert Ford, cutting short his short-cut-to-riches schemes. (Wonder who he left his gold to?)

...and much more!

Never a dull day as homo sapiens marches towards destiny...(let's hope we never quite make it).


Caradoc@Gandalf#1429764/3/06; 04:31:09

Spot and Spike have escaped. You'd better go look for them. They were last seen somewhere well north of $587.


Goldilox1948 " Foreign Aid"#1429774/3/06; 06:32:06

@ Sundeck,

$5Billion doesn't even pay a decent third-world bribe today, and certainly leaves nothing for the coffers of the arms manuacturers to keep them in power.

GoldiloxSpot and Spike#1429784/3/06; 07:00:44

Someone over at the Crimex grabbed their collars at the open, but they seem to have gotten away again.

Can't tell which is leading their chase - but one has a silver collar, and the other is golden.

GoldiloxOff to Opening Day#1429794/3/06; 10:51:18

Have fun today, folks, and don't let the Crimex fleas bite our hounds.

I am off to Opening Day at the ball yard. Just hoping to keep the rain at bay about 10 more hours.

Gandalf the WhiteSpot and Spike are now home again !#1429804/3/06; 15:08:35

BUT, it looks as if everyone has gone to the season starting baseball games today !

TopazDelivery.#1429814/3/06; 15:22:14

Gold took up the delivery mantle with gusto today as we saw a hefty 890000 Oz equivalents get done. This sees 11K Contracts shuffled about in April already!
The OI number (when it updates) will give us a clue as to how many more hands are out for Physical will the off-cycle Silver one.

Another encouraging sign of strength was the ECB announcement. Last year ...WAG 2A, they (ECB) only ponied up the Metal when it became apparent other signatories had opted NOT to deliver ...and the ECB made up the shortfall. This year ...from Sept-Mar, they're at it from the get-go indicating further recalcitrance on the part of the others.

Keep your Gold in possession C-Boys!

USAGOLD Daily Market ReportPage Update!#1429824/3/06; 15:48:13">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

MONDAY Market Excerpts

April 3 (from DowJones, MarketWatch

mikalHeadline glances#1429834/3/06; 16:27:44

Gold prices climb over $8 an ounce in afternoon trading - AFX
Oil prices shoots up above 67 usd as Iran holds war games in Gulf - AFX
The Slippery Slope - Roach, Morgan Stanley
Rates solution may be hidden behind the fringe - Coggan, FT
Australian officials accuse Citi of insider trading -
FASB Proposes Pension-Accounting Changes -
Some homeowners struggle to keep up with adjustable rates - USAToday
Gold set to become even scarcer - FT
Report: GM to Sell Majority Stake in GMAC - Minn. ST
Betting Big on Adjustables - LA Times
European March Manufacturing Grows Most in Five Years - Bloomberg
When Japan Tilts, Iceland Quakes in Intertwined Global Markets - Bloomberg

slingshotNumber one#1429844/3/06; 21:41:39

Gators, Gators, Gators!
Gandalf the WhiteGOLD P&F Chart ! <;-)#1429854/3/06; 22:47:50$GOLD,PWTADANRBO[PA][D][F1!3!!!2!20]&pref=G

TO THE MOON, Alice !
Price objective is now $700 +
Forget the worry about $600 !!!!

968UAE, Saudi considering to move reserves out of dollar#1429864/4/06; 00:38:32

A number of Middle Eastern central banks said on Tuesday they would seek to switch reserves from the US greenback to euros.
slingshotSearch for the Renaisance#1429874/4/06; 00:54:59

Ladies and Knights, of the Table Round, I bring forth an explanation as to my absence in reguard to the story. It was my intention as before in past episodes, to bring forth a story about this forum and gold in a timely manner. Unfortunatly I was a victum of an unforseen accident that had profound circumstances upon myself. One can say, All that Glitters is not Gold" That is true if one considers the lost of a loved one to an unfortunate circumstance. That is to say ME. Without further Adue, let me continue the story and to Gandalf, You knew I could not hold back.

Stephen the Great recieved the word and he felt that a terrible war was to ensue. So he gave orders to his foundry to produce more cannon and black powder that thundered across the fields. Yet he felt that although his
increase in war material, would be no match at what lay ahead. Villages with their crops harvested what they could to support a marching army. The foundries produce arrowtips and lances and the Valley of Clouds became one to defeat the Dark Forces.
Sir Black Blade organised a group to build brides and instructed them in the art of building catapults and battering rams.
Yet Gandalf returned to his room and studied the books of old for he knew that with all the trust of mortal man, he would still need the help of the mystic.
Twenty eight days had passed when the first resemblence of an army assemled. The sun was not at its zenith and the prospect of reaching Hammerton in strength was promising.
The Castle was energenic as wagons were loaded and Sir M.K. look down from the castle wall. All was coming to bare agaist the Dark Forces. He knew that before the march would begin a meeting within the Great Hall around the Oaken Table of Yore, must be called.


slingshotCoin Shops#1429884/4/06; 01:14:30

The amount of precious metals have left the coin shops almost bare. The cost of a one ounce silver is $14.50. The premium for gold coins is 7.5%

TownCrierslingshot, on your high prices (7.5%) at "coin shops"#1429894/4/06; 01:42:48

Oooofff; seven-point-five percent at those shops implies take-home prices at $632 for ounces of bullion (as spot resides at $588).

Here's an insight that might help cheer you up during your accident recovery -- the prices available through USAGOLD-Centennial are way WAAAAAY cheaper.

Click the URL and have a look; Krugerrands at $602, Philharmonics at $612, Mapleleafs at $613, Eagles at $617...

Consider calling during Denver business hours.
TOLL FREE 1-800-869-5115


Calidor...... And Speaking of Gold Coins#1429904/4/06; 05:22:14


Today I received my shipment of $5 Liberty Eagles (guarded by one French Angel) - way across the pond. Actually this is my second order since moving to Germany and have had no problems receiving these or any of my numerous stateside orders.

Thanks to the staff of Centennial and our fine host.

And the street I live on - IN DER AU


KnallgoldArmageddon never comes when announced#1429914/4/06; 05:27:52

Okay,$-Armageddon didn't come last week as per the Newropean article.But,the ECB said they definitively won't sell any more Gold now until Sept.A subtle message?
TownCrierGold nanoparticles to trap toxins#1429924/4/06; 06:16:16

BBC News -- Tiny particles of gold could soon be helping to spot viruses, bacteria and toxins used by bio-terrorists.

Researchers in the UK have found that gold nanoparticles are very effective detectors of biological toxins.

The particles reveal the presence of poisons far faster than existing techniques which often involve shipping samples back to a lab.

...research makes use of gold nanoparticles that are only 16 nanometres in diameter - roughly 1/5000th the width of a human hair.

Earlier work by Professor Russell's team has refined manufacturing methods so relatively large amounts of the particles can be made quickly.

Once made, the particles are coated with sugars tailored to detect different biological substances.

When mixed with a weak solution of the sugar-coated nanoparticles, the target substance, be it a poison such as ricin or a bug like E.coli, binds to the sugar. This changes the properties of the solution and makes it change colour.

...Future research will focus on building the detection system into a portable device that can be taken out to places where poisonous substances are thought to be present.

^---(full article at url)---^

Gold can also be a very effective indicator in pronouncing judgements upon which international currencies are good or bad, relatively better or worse than their peers.


TownCrierCalidor, nice to hear from you#1429934/4/06; 06:30:27

Thanks for the international patronage... glad to hear you're giving these American youngsters a chance to visit a grand old region of Europe. And perhaps not for the first time -- gold sure has a long storied history of getting around.


968Senior China official urges cut in US debt holding#1429944/4/06; 06:33:31

China should trim its holdings of U.S. debt, a senior Chinese official said, rattling markets on Tuesday in the run-up to a visit by President Hu Jintao to Washington this month.
GoldiloxDOW 11,200#1429954/4/06; 09:55:22

The 11200 mark sure seems to baffle the DOW bulls over and over. As Infafla takes its toll, that resistance point is lower and lower in REAL terms. The dollar rally looks pretty tired, as well.

Have you seen the new US$ bills? That pucky pink makes them look "antiqued' right off the press.

Got gold? It always looks pretty.

Flatliner...Safety net?#1429964/4/06; 09:59:49

NEW YORK ( - Billionaire investor Warren Buffett is making a $14 billion bet on global stock markets, according to an article Tuesday.
Buffett's Berkshire Hathaway (Research) has sold clients insurance protection against a drop in four equity indices, the Financial Times reported.

If the indices, three of which are outside the U.S., fall by 30 percent over the 15-20-year life of the contracts, Berkshire would incur a pre-tax loss of about $900 million. It has a maximum exposure of $14 billion, according to the report.

Analysts told the paper that the purchasers of the index contracts were probably pension funds that wanted to increase their potential long-term returns by holding more equities but needed protection in case of a stock market meltdown.

In a filing, Berkshire Hathaway did not disclose any more detail about the contracts, including the premiums it would receive or the level the indices must fall below before it made a pay-out, the paper said.

Fl- Ok. What's going on with this big guy? One day, we read how derivatives will lead the dollar into hell and we dream of stashing (if only) a fraction of his silver hoard. But, hey, he owns insurance companies and don't they need to make money? That would imply that he's going to be involved in making promises. Wow. Look at his promise!

This, to me, is a clear sign that this billionaire has calculated the odds and sees hyperinflation in at least 4 different markets as a curtain play in the coming years. It also supports his theory that the dollar is falling in value. I'd be willing to bet that these contracts are US Dollar based. If the dollar drops 50%, his exposure is only 7 billion worth of value. If he hedges with commodities, he stands to make a mint. Maybe this time, he'll buy 130 million ounces of gold.

But, maybe I've got it all wrong. It's just interesting to note.

GoldiloxInvestment Biker#1429974/4/06; 10:10:24

For all you commodity and motorcycle buffs, is advertising Jim Rogers' book "Investment Biker" for as little as $0.39 used.

Dated, but a really good read - both as investment ideas and as a motorcycle travelogue.

GoldiloxDerivative Sewage#1429984/4/06; 10:15:16

@ Flatliner,

Just because derivatives are sewage, does not mean that the piggies won't play in them. You're probably right about Warren's hedges. As an insurance magnet, he understands risk just fine, and I doubt is we'll see any headlines about BH going bankrupt in the near future.

FlatlinerEU warns China on hasty currency boost#1429994/4/06; 10:28:57;_ylt=AmxgXjUZ3pDoaRZnM9OmT5v2ULEF;_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

The European Union will this week urge China to take its time moving towards a more flexible exchange rate system, rebuffing US calls for Beijing to act quickly to boost its currency.

European policymakers fear a sharp realignment of the renminbi could cause exchange rate volatility, leading to the dollar weakening further against the euro and other EU currencies.

However, lawmakers in the US want China to act quickly to make its exchange rate system more flexible, helping to increase US exports and cut the trade gap with China which topped $200bn in 2005.

Transatlantic differences over the issue are expected to surface at a meeting of EU finance ministers in Vienna on Friday, at which global economic imbalances will be discussed.

Fl – There is a little more at the link, but I read this as a huge buy signal on gold. It seems to me that the EU is saying that to China that you'll kill our delicate economy if you diversify into Euros. That would strengthen the Euro against the dollar which would make it harder for their exports. At the same time, the US is all panicked about the deficit and will take steps towards pushing China somewhere – like buying its own currency with surplus dollars. Unfortunately, the Chinese know that would kill their own economy. There is only one currently left that will not kill the economy of Europe or China and it's a metallic yellow color.

But, as always, I could be reading this incorrectly and maybe gold is going up just because it's pretty.

FlatlinerEC says "no" to economic protectionism in energy sector#1430004/4/06; 11:54:49

BRUSSELS, April 4 (Xinhua) -- The European Commission (EC) on Tuesday sent 28 letters of formal notice to 17 member states of the European Union (EU), saying they were not doing enough to openup their energy markets.

In 2003, EU member states agreed to lift barriers and allow newcompanies to start providing gas and electricity in their countries. However, many nations have been slow to put their promises into practice.


During the EU summit last month, the leaders agreed to ensure that the legal framework is in place to open up markets for domestic customers by July 1, 2007.

Fl – This have overtones of being interesting. Anyone know anything about this?

GoldiloxGold Market out of Kilter#1430014/4/06; 12:32:34


LONDON ( -- On the release of Virtual Metals’ second biannual "Yellow Book", CEO Jessica Cross said: "There is no doubt that the price activity of the past six months has disrupted the physical markets and we have yet to see at what trading range a market equilibrium will be re-established… our 2006 forecasts are based on what we have seen in the first quarter of the year and we will amend them in the months to come as we observe how the price-sensitive sectors continue to realise and adjust to price developments…. the real imponderable is what the hedge funds and pension funds perceive to be the macro-economic background to global issues in the next few months". Virtual comments that as the markets likely to swing into surplus, the price will consequently become increasingly dependent on continued investment support in the form of hedge funds, pension funds and retail investors.

The company argues that should the price remain at current levels (gold fixed at $585.00 on the morning of April 4) then the international market will swing from a deficit of 310 tonnes in 2005 to a surplus of 422 tonnes in 2006 (this is equivalent to approximately nine weeks’ global jewellery fabrication based on the Virtual data), with a drop of roughly 30% in investment-grade jewellery demand. Scrap return is expected (at current prices) to increase by 19% to 998 tonnes in 2006.

Virtual's "Yellow Book" seems to suggest that today's PoG is going to cause everyone to run out and sell their gold and "cash in". They hold up numbers expressing slow growth of gold sales in the Far East to support their assertions.

Wonder where they get ideas lie that?

Topazalt-Gold.#1430024/4/06; 14:47:40

You'd have to think this uptick is good for $600 even though it has generally been a bit sluggish, given the basic reasonings for it. From an overall market perspective, PoG600 may well be the limit of their understanding Ms Cross indicates. We'll see, something about Giffin springs to mind.
OI on Comex Ag and Au indicate there's enough sloshing about to be looking at 15k April Gold and we're still a long way away from that ...Silver looks tuckered out but April OI still building nicely, if they get the Ag April OI to under 100, we could be looking at a decent Ag drop, which wouldn't bode well for Gold in the short-term.

TownCrierGCC agrees to create monetary reserve to support single currency#1430034/4/06; 16:43:47

04/05/2006 Abu Dhabi: The six Gulf central banks have agreed on convergence criteria and on creating a monetary reserve to support their single currency that is on track for launch by 2010, UAE Central Bank governor Sultan Bin Nasser Al Suwaidi said on Tuesday.

"...we will look at the minimum reserves necessary to be created and maintained."

Asked whether there would be a single policy for all the six GCC states to maintain their reserves in dollars or euros, he said "that is left to the authorities of each state to decide. Even the ratio is not yet decided."

^---(from url)---^

This is the first of two related articles that should be absorbed in conjunction.

Thanks to the glaring example that the Chinese condition has wrought regarding the socio-political problems regarding use of the dollar as a principle reserve currency, the second article will show that the euro-bloc is not eager to be pulled into that trap by having the euro function an alternative RESERVE asset in place of the dollar as a reserve.

Thinking about it, this leaves only gold as prime candidate for the role. And a central banking commentator is wisely going to remain discreet and say nothing specific on that front so as not to explode the market while the quoted trading price for the metal remains dangerously (nearly dysfunctionally) too low.


TownCrierEuro reserve plan put off#1430044/4/06; 16:43:58

04/05/2006 Abu Dhabi: The UAE Central Bank has deferred a plan to convert part of its reserves from dollars to euros, its governor said on Tuesday.

However, he hinted they may consider it at next month's meeting.

Central bank governors of Qatar and Kuwait said they were also considering buying euros.

"We have postponed buying euros until the next month's board meeting. The board may decide there's a 50-50 chance of buying euros," the UAE's Sultan Bin Nasser Al Suwaidi told reporters.

"We have not decided against it the final decision is only postponed," he said, referring to the meeting of the board on Sunday.

The UAE Central Bank holds 98 per cent of its $23 billion foreign reserves in dollars, with the remaining 2 per cent in euros and a few other currencies.

Last year, the governor said the bank was considering converting 10 per cent of its reserves to euros.

^---(from url)---^

No surprise that they've reached a gentlemen's agreement to put this reserve idea on hold.

See comments to previous post.

See also related comments offered at the conclusion to yesterday's post:
TownCrier (4/3/06; 03:07MT - msg#: 142974)


USAGOLD Daily Market ReportPage Update!#1430054/4/06; 17:25:58">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

TUESDAY Market Excerpts

April 4 (from Reuters, MarketWatch) -- U.S. gold futures gave back some recent gains by the close and held at lower levels throughout the session on Tuesday, as some large players decided to take profits, traders said.

COMEX June gold contracts fell $3.70 to $590.60 by the close and set a session range between $589.50 to $595.30. "At this point in the game, it's all technical. We're still working toward our objective in gold, the initial objective which is $600," a trader said.

"I don't think the fundamentals or the news is adding that much, unless it's shocking. If it's more of the same or slightly different from what people thought, I don't think it can stop this market. The market's too strong," a dealer said.

The market may see "some profit taking and hesitation as we trade just below $600 but once the market kicks-starts itself again, the move higher will once again be quick," said Peter Spina, an analyst at GoldSeek.

Deutsche Bank's global head of commodities research said on Tuesday gold may head beyond $600 and toward $700, boosted by upbeat fundamental factors and by fund buying.

The dollar fell to a two-month low against the euro on Tuesday, as investors expectations for a European interest rate increase were heightened after a news report said the European Central Bank may raise rates at its May meeting.

While the dollar's weakness may have underpinned gold's losses, traders said they thought its influence these days was secondary to technical factors.

"We've somewhat separated from our relationship with the euro. It's one of the things we factor in, but it's not the driving force that it used to be," said one trader.

---(see url for full news, 24-hr newswire)---

mikalSearching for reasons gold "glitters" #1430064/4/06; 17:40:48 AP Wire | 04/04/2006 | Gold works as a hedge against inflation - Meg Richards
mikalTuesday's terrible headlines#1430074/4/06; 18:09:57

*Dollar falls on reserve shift - CBS Marketwatch
*March US manufacturing growth lower than expected - FT
*Skewed jobs report may hit markets - Crudele, N.Y. Post
*False hopes about retirement - CNN/Money
*Workers Have Retirement 'Overconfidence' - Minn. ST
*Moves afoot to shed light on hospital costs -
*Housing Bubble Trouble -
*Nervous times for investors - Coggan, FT
*America's pensions in peril — or gone - Seattle Times
*China, Japan Buy Fannie, GE Debt; U.S. Investors Skip - Bloomberg
*Long-Term Rates Creep Higher After Years of Resisting the Fed - WSJ
*Average U.S. gas prices jump 9 cents - Reuters
*Credit cycle may have turned - FT
*Manhattan housing market shows weakness - CNN/Money
*GM, Ford March US sales fall - Reuters
*Merrill to take $1.2 billion first quarter charge - Reuters
*How the US 'lost' Latin America - BBC
*Senior China official urges cut in US debt holding - Reuters

TownCrier"Disorderly" scenario could be caused simply by NOTHING -- by "inaction"#1430094/4/06; 18:36:37

Rato seeks IMF forum to address economic imbalances

BOSTON, April 4 (Reuters) - International Monetary Fund chief Rodrigo Rato on Tuesday proposed a multilateral forum where developing and industrialized nations can address ways to rebalance the global economy, although he acknowledged the fund lacked tools to force multilateral action.

The Washington-based lender has so far been "insufficiently persuasive" in its advice to member countries on global imbalances, Rato said in prepared remarks at Harvard University.

...The United States has been trying to convince China to loosen its relatively rigid currency regime, which U.S. manufacturers complain keeps the yuan currency undervalued and gives Chinese manufacturers a trade advantage.

..."The problem is that good economic performance rests on a shaky foundation, because of large and continuing global imbalances," Rato said.

If these imbalances unwound quickly and chaotically, Rato warned, it could trigger financial crises and a global recession. Should financial markets force an adjustment, it could send the dollar sliding...

...some policy-makers, he added, believe global imbalances can either persist indefinitely or dissipate over time.

"I find these views optimistic to the point of willful blindness," Rato said, without elaborating.

To countries that have argued it was up to others to act first, Rato said: "Be careful what you wish for."

"A disorderly adjustment of global imbalances could be produced not only by inaction, but by unbalanced actions," he warned.

^---(from url)---^

What rational thinker would want to entrust their life's savings to a dollar that could collapse on the basis of the feeblest-possible 'event' -- known as the 'status quo'?

Choose gold.


Ten BearsBest Quotes of March 2006#1430104/4/06; 22:43:26

by John Rubino
Mr GreshamThank you,#1430114/4/06; 23:48:39

gentlemen, companions, fellow knights, and generous hosts.

Despite the most challenging reversals of my life in the decade past, my retirement plans and prospects are on track -- ahead of my previous expectations, actually -- thanks to you, your counsel, and your persistence in it.

skiYear to Date progress on the Gold &Silver#1430124/5/06; 00:52:32

Year-to-date change in PM prices as of 4-3-06 as posted at Rude-Awakening.

Gold $516.70 YTD +13.74%
Silver $11.75 YTD +33.24%
Thus silver advanced nearly 20% more than gold YTD

Below is my post #140007 dated 1-3-06

"I have been here at the forum for several years and my tune has never changed. I have simply stated, that on a percentage basis, silver will outperform gold. But as we all know, we cannot profit from the past.... the record books for 2005 have been closed. Therefore the important question of the day is, "What will happen in 2006?" I'll make three observations.

1. Silver will outperform gold on a percentage basis.

2. The difference between gold and silver will be even GREATER than the 11.8% difference in 2005.

3. The fact that there is less above-ground silver than gold will finally be recognized. (No one can know exactly how much of each commodity there is. I work with these figures: Gold, 5 Billion ounces and growing by the day. Silver, 1 Billion ounces and GETTING SMALLER by the day.)

Either way, both precious metals seem to have a very bright future."


Certainly, there are many more pages to turn on the 2006 calendar ..... but for the silver advocates here .... so far, so good.

TownCrierski, above-ground metal#1430134/5/06; 01:28:28

Congrats on the performance. Everyone surely loves a high flyer!

For sake of a more complete record regarding your item #3, apporximately how many tonnes of new (above ground) gold are mined each year, and how many tonnes of new silver is mined?

Thanks in advance.

Specifically, you say gold quantity is growing by the day and silver is getting smaller. Forgive my feigned ignorance, but how are the above-ground silver atoms subsequently... destroyed?? (Or, are they being put back under ground?)

Anticipating your response, I'd next desire to have your explanation as to why you suggest the use of silver in its typical disposition is more, shall I say, "consumptive" than the disposition of gold?


GoldiloxAtoms Destroyed?#1430144/5/06; 02:56:20

@ TC, ski,

Let me take a stab at least part of the question.

When gold is used in processes, it is more economical to retrieve based on the 50X higher price per unit, so while major processes like photography plan for retrieval, uses like silver solder and electronics don't always bother with retrieval planning. Medicinal silver is another form that is probably never retrieved.

This is just a guess, but I suspect the jewelry recycle rate for gold is higher, as well, due to the price premium. How many people take a $10 silver ring to a jeweller and ask for it to be melted and reused in their next ring?

In wartime, even gold teeth are often retrieved before the victims are buried.

Perhaps it's not about "conservation of matter", but merely the economics of recovery.

I don't think this qualifies as full support for ski's assertion that silver is less plentiful, but it is less often fully retrieved at current ratios, so more of it becomes "lost".

GoldiloxIraq Govt. refuses to deploy US-trained police#1430154/5/06; 03:10:21


April 4: Iraq's Interior Ministry is refusing to deploy thousands of police recruits who have been trained by the US and the UK and is hiring its own men and putting them on the streets, according to western security advisers.

The move is frustrating US and British efforts to build up a non-sectarian Iraqi police force which would not be infiltrated by partisan militias.

The disclosure highlights growing US and British concern about the role of militias in sectarian killings, and their links to senior Iraqi politicians. "You can't have in a democracy various groups with arms - you have to have the state with a monopoly on power," Condoleeza Rice, US Secretary of State, said at the end of her two-day visit to Baghdad yesterday.


I guess we now know how Condi feels about the 2nd Amendment.

ski@TownCrier #143013#1430164/5/06; 03:25:52

You wrote:
"For sake of a more complete record regarding your item #3, apporximately how many tonnes of new (above ground) gold are mined each year, and how many tonnes of new silver is mined?"

Sorry, but I have to wonder about your question. Is it possible that you already know the answer?

But nonetheless, I'm glad to have the opportunity further explain an under-recognized part of silver's rise.

Any geology student could tell us that, on a daily basis, more silver comes out of the ground than gold. Presently the ratio is around 8-1. But if we stopped right there, how could we explain the superior performance of silver? The answer is in usage.

This forum is not appropriate for long, detailed explanations of PM usage. So, I'll have to take the risk of being too brief.

That ounce of gold that was mined is almost always converted into some form of investment product and added to the existing above ground stock. (Think jewelry and coins.) On the other side of the ledger, the 8 ounces of silver are consumed in thousands of different industrial applications, widely dispersed in micro quantities and forever lost. (Think light switch contacts and the new RFID tags on merchandise.)

But the story certainly doesn't end there. Not only does industry consume the 8 silver ounces, but it demands EVEN MORE! Thus it eats into the above ground stock. The effect of this is a well documented, ongoing silver deficit going back all the way to 1990.

To go full circle, at the beginning of the day, we mine 8 ounces of silver and one ounce of gold. Yet, at the end of the day, sure enough, the gold is there to be seen. But the 8 ounces of silver, PLUS EXTRA INVENTORY have appeared to vanish.

TownCrierGoldilox, beyond issues of 'recovery", let's not forget basic durable usage#1430184/5/06; 03:48:44

When we inherit our mother's silver tea service, going far beyond issues of recovery is the premise that we will be putting no further demand upon silver for such production. In most circumstances, one service is quite enough. I won't pretend that this is an isolated example in the wide realm of manufactured goods.

By contrast, it is not human nature to say "Whoa! That's quite enough!" when it comes to the size of their accrued savings. And there's simply no getting around the fact that the metal called upon to feed into this unquenchable appetite is the fate and disposition of gold far more so than silver.

It is certainly a fallacy to assume that gold held by CBs is a "stockpile" in any sort of commodity-sense of the word, and it certainly shouldn't be deemed to be any more readily available to the wider market than is any less visible distribution of silver solder simple because it is concentrated in location. To imply such, as thing as is frequently done by folks making ski's argument, is simply turning a blind or prejudiced eye to the true nature of its most significant utility.

Whether or not the metal in question can be physically SEEN in the course of its usage is of no significance whatsoever in making a comparative valuation assessment. Mr. ski is going to have to try harder than that.


CopperfieldPaper vs physical#1430194/5/06; 04:13:06

Forum members, can anyone tell me how much paper gold exists in relation to physical gold? I remember a Russian central banker mentioning something like a 129.000 ton paper trading yoy in gold?


GoldiloxEconomics of silver recycling#1430204/5/06; 04:15:55


I wouldn't call a "tea service" unrecoverable, but the many silver oxides, sulfates, and amalgams that get dumped in garbage heaps unknowingly more than likely are.

How many auto recyclers go after silver solder? When I was growing up, every toolbox had silver solder in it, but we made no effort to recycle it.

With all the silver solutions on the market today as folk medicine, how many people are recapturing that in their waste?

If a sliver ring goes down a drain, do you disassemble the plumbing to retrieve it? What about a gold ring?

I know printed circuits are melted down for gold retrieval, but is that economical for silver?

My point is merely that the recycycling of gold is much more prevalent and efficient due to the higher price, so more silver is "lost."

TownCrierGoldilox, you're walking all around my point without seeing it#1430214/5/06; 05:33:56

I'm not saying silver is or isn't recoverable or "lost". That isn't the point, but rather, whenever it is used to meet a specific physical need, that specific need is satiated. Period. As long as the mirror hangs on the wall, the tea service sits on the shelf, or the soldered circuit conducts electricity in the duty of an appliance, the consumer applies no further demand upon silver for those specific purposes. Sometimes the appliance has a long life, and sometimes it changes hands to satiate needs rather than ending up "lost" in a junkyard.

By contrast is the use of gold particularly as a reserve asset (as savings). Although they may already have some gold in their portfolio, how often have you heard of a right-minded person not eager or interested in having more? It begs the question, at what point might you expect this disposition of metal to fall out of this usage?

As I've tried to convey ineffectively, the whole affair isn't about the relative quantities of the two metals in their various usages. The key determinant regarding pricing/valuation expectations is more about the quantities that are brought forth to the market and the value placed on usage by those bidding on the final ounces.

Silver has different uses than gold, just as it has unique supply factors; it is probably as superfluous to compare snapshots of price performance between the two as it is to compare with molybdenum, or to compare figs and lug nuts. For deeper insights, you've got to look at longer trends and have an eye on social issues.


Clink!Thank you, Ten Bears !#1430224/5/06; 06:51:58

That was a mighty interesting compilation from Safehaven. Of all the gems, the one from Peter Schiff most caught my eye. Not to be too derivative, a little snip :-

In desperate need of capital, America is hardly in a position to insult those providing it, or dictate the terms by which they do so. However, the latest tough talk on China comes shortly after Congressional action which blocked key purchases of American assets by foreign interests. Such posturing sends a very dangerous message to our creditors. If as a nation we have decided to sell off our cows to pay for imported milk, we can not complain when our trading partners actually show up to collect the animals.

As a result of the unprecedented foreign-financed consumption binge in the U.S., it is likely that nearly every major U.S. asset will ultimately pass into foreign control, including most companies in the S&P 500 and trophy properties in major U.S. cities. As America lacks the industrial capacity necessary to redeem its IOU's with actual consumer goods, access to capital goods and domestic assets is all that gives its currency value. Restrictions on the ability to acquire such assets will diminish foreign interest in accepting dollars in exchange for exports, and will dissuade foreign governments from holding huge reserves of dollars that they cannot hope to spend.

End snip.

While not small, I fear that the amount of money held as reserves by governments pales into insignificance compared to the global investment funds who, almost by definition, have virtually no national loyalty.


GoldiloxRelative valuations#1430234/5/06; 07:10:07


I didn't have a problem with your "relative valuations" statement, nor the obvious differences in utility, but your intial response was to ski's post about supply and demand, which is the specific I was addressing.

In that light, might I point out that Rhodium has shown us what can happen to a metal "commodity" in very high demand? $380/oz to $4100/oz in three years.

I think we're focusing on two completely different aspects of the comparison.

This may actually support your point about differences and and ski's point about demand, as well.

Or not.

mikalDealers like market trend#1430244/5/06; 07:10:32

Gold price hits record high in Beijing | People's Daily Online | Xinhua | April 5
The slant of this and the dealers quoted is expected
greater gold appeal.

GoldiloxSatiated#1430254/5/06; 07:19:00

Sorry, I forgot to address the "need satiated" part of your response.

This is only true when supply=demand.

Classical economics says that supply will always = demand by using price to negotiate both sides of the equation.

What happens when the demand is designed in, but scarcity continues? For gold in 1933, it was confiscation. For many commodities, ten years later, it was imposed rationing.

Thus it seems, government market manipulation has plenty of precedents.

mikalVanadium and uranium#1430264/5/06; 07:57:23

A small part of my holdings were once brand new $2.00 face value rolls of 2004-P and D Jefferson nickels("Peace Medal" of the "Westward Journey" redesign) acquired at face value.
Sold all 40 rolls before the price appreciated. Today 2004-P rolls sell @ $23.95 and the 2004-D @ $10.95 retail. "Hot", like uranium.

Under the circumstances and without a crystal scrying ball, I knew gold was a better insurance and investment- pretty nickels not even very rare, aside from being bulky and hard to sell in quantity, usually depreciate to their intrinsic value (or less) well before they can be traded away, especially in a recession.

The markets for silver, platinum, palladium, rhodium, vanadium and more exotic metals are similar and intrinsically more volatile but contributing less to inflationary perceptions.

These metal commodities' supply and demand (and thus market prices) are dependent as much on market-distorting government policy such as tariffs and subsidies as they are on both political and strategic national dictates and coercion.

Most importantly as TC emphasizes, gold is held in far greater esteem, traditionally and despite the prevailing public preference for denial, financial surrogates and paper proxies.

GonlyoldSouth American Good Will?#1430274/5/06; 08:46:22

I hear that the US has a small, "good will" armada, carriers, destroyers, etc., in the Caribbean sea at the moment. As I understand it, the purpose is to promote solidarity with South America. However, some believe that this is a sabre rattling move towards Venezuela, et al, who are questioning the role of the US in the 911 event. Apparently Venezuela wants an investigation into 911 and other SA countries may be following V's lead.

Can anyone confirm this?

Another Iran? Buy gold and food.

TownCrierECB quarterly MTM revaluation numbers are in...#1430284/5/06; 09:04:13

Jiving very closely with my early AM March 31st estimations/predictions (msg#: 142882), the per-ounce valuations of eurosystem gold holdings increased by 11 percent from the previous quarter's value of EUR 434.856 per ounce to a fresh quarterly book value of EUR 482.485 per ounce.

The revaluation has lifted total gold reserves to their highest value ever, to 180.785 billion euro, and this lofty height is despite ALL previous sales, including an additional mobilization of gold last week reducing these reserves by a marginal EUR 205 million. The upside of the revaluation on the extant gold reserves was a significant 17.9 billion euro.

Meanwhile, portfolio liquidations last week reduced the net position in foreign currency by EUR 300 million, and coupled with revaluation effects, the net position in foreign currency dropped by 4.7 billion euro to its current level of 155.3 billion euro.

Since the launch of the euro in 1999, the history of the eurosystem reserves has been a steady discounting of the proportion of paper-based value among the total foreign exchange reserve holdings and a steady rise in the proportion of gold-based value held among those total reserves.

"Can you not also follow in the footsteps of giants?"


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HenriGoldilox msg 143001#1430304/5/06; 09:29:42

Agreed Ms. Cross and her ilk are out to lunch on this analysis. There can be no equilibrium re-established when supply for the forseeable future lags demand.
Flatliner"Whoa! That's quite enough!"#1430314/5/06; 10:04:47

That's right, don't sell me any metal coins that function like a currency. I've got all I need. Oh, by the way, when I look at my coins, the collection of atoms is large enough to feel and, unlike paper, when I hold it in the light just so, I don't see watermarks. Do you see any?

As commodities, both metals have been serving their purpose for years.

As currency, people are finding that both metals will serve this purpose better then paper. The demand for metals as use as currency will determine how they float against all paper currencies. Silver and Gold will both have different floats. (Will one be stronger then the other? Will people find more use for one over the other? We will all find out.) They are fundamentally different while being amazingly similar. Human perception will determine adequate values in both as they both fulfill the need of preserving wealth against confiscation through over printing. Buy what you believe in.

One question is still outstanding that weighs heavily on Silver. Will Silver ever really regain ‘official’ support as a currency in our future? Gold currently has this support as shown by the reserve statements in central banks. This is the reason why I still see Silver as a commodity - yet I am willing to buy it out of *hope* that it will be officially sanctioned as a currency. As it stands right now, the Silver commodity function appears to have a larger affect on the PoS then Gold commodity function on the PoG. Unfortunately for Silver, in our digital age, Gold would mostly likely supply all the currency function that is needed as a world reserve currency. For this reason, Gold is unique.

Buy what ever you want and find value in saving anything that works. Meanwhile, we watch as gold currency function grows (See MTM postings) and hope that Silver is officially sanctioned as currency.

Thoreauly@ Flatliner#1430324/5/06; 10:54:33

I guess that's my question -- i.e., in a fully digitized world, even "atoms" of gold could change hands, could they not? -- leaving silver "out of the money."

On the other hand, if digitalization is only partial, then in a post-fiat world, gold would be too expensive for most transactions, in which case silver -- and even copper -- would have their place.

That's my $.08, anyway, real inflation apparently running at least this much.

FlatlinerMTM#1430334/5/06; 11:09:04

Wouldn't you all just love to see MTM reports about Silver?
tejbearThoreauly # 143032#1430344/5/06; 13:53:07


Silver "out of the money"? Sorry, but correct me if I am wrong, but silver was money way before gold entered the scene. Wasn't Jesus sold-out by Judas for thirty pieces of silver??

The Bear

Thoreauly@ tejbear#1430354/5/06; 14:22:29

Well, that was then, and this is now. I'm just asking why silver would be necessary if money were fully digitized, as gold could be exchanged in virtually any amount, no matter how small.

I don't have anything against silver, understand, and would be delighted to own large quantities of it (as well as gold, of course) in a post-fiat, partially digitized world.

Topazalt-Gold.#1430364/5/06; 15:23:54

Well we certainly are not following the script for a "normal" delivery month roll-over here and in fact these last couple of months can be seen as quite abnormal.

Gold is more attuned to supporting Buck, or more precisely supporting a measured decline in the US$ and those currency spikes on the Chart would seem to confirm this.

So we who hold great expectations for Au in the fist must wait patiently 'till those that shouldn't have their way with her.

tejbearThoreauly # 143035#1430374/5/06; 17:08:52


Frankly, I don't really have any issue with fiat money… as long as it is properly managed. Efficient management of fiat money can be measured by effective control of inflation. No inflation, adequate levels of fiat. If you have inflation, you have too much fiat, deflation, too little. Following Goldilox's recommendation, I watched the Money Masters video, and the author outlines the effective use of fiat money by some early US settlements.

However, since 1913, we have been OUT OF CONTROL and the Federal Reserve is printing $$ like crazy. Now the manipulators are trying to keep the dollar's "house of cards" from collapsing. The result is only postponing the inevitable correction, and subsequent drop in the value of the dollar. This correction will also make the POG & POS excellent investments. Sadly, almost since day one, the Federal Reserve has been driving the value of the dollar down.

However, given the lack of understanding of general economics by Joe Public, it is probably dubious that fiat money can ever be safely used here in the US. The politicians & bankers just love to print the stuff for all of those little things, i.e. Vietnam War, Iraq, Star Wars and misc.

So, silver or gold or fiat; it really doesn't matter. What matters is how competent the leadership is in managing the money. Given that, let us not forget that the guy who lead us into the War in Iraq has an MBA from Harvard. To quote the Mogambo Guru, "HAHAHAHAHAHAHAHA. We are doomed!"

The Bear

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WEDNESDAY Market Excerpts

April 5 (from MarketWatch, Reuters) -- Gold futures closed higher Wednesday, resuming their climb toward $600 an ounce -- a level most analysts see as imminent in the near term -- but prices failed to trade near the metal's recent highs.

"Gold seems to be struggling to clear chart resistance located around $590-$592 at the moment," said James Moore, an analyst at TheBullionDesk. And that suggests "the metal needs a period of consolidation before resuming its charge higher," he said.

COMEX June gold futures closed up $1.90 at $592.50 after peaking at $594.70. On Tuesday, the contract pulled back as traders locked in gains after prices reached a 25-year high $596.80 on Monday.

"The geopolitical backdrop and expectations for continued fund demand have underpinned prices in the early part of Q2," said analysts at Action Economics.

Investors have been impressed by gold's performance, with prices surging 40 percent in the past 12 months. Other assets have lagged behind. The Standard & Poor's 500 index, an indicator of U.S. equity performance, rose just 11 percent in the same period.

Peter Hillyard, head of metals sales at ANZ Investment Bank, said he there was bullish momentum in the market. "Right now there is nothing that says to me that $600 is going to be a barrier. It's definitely going to happen. We could see gold to $625 within a couple of months," he said.

Meanwhile, the Deutsche Bank projection of $700 for gold Tuesday "was joined overnight by an even more aggressive forecast for $1,000 gold prices at an Australian gold conference," said Nell Sloane, an NSFutures analyst, in daily commentary Wednesday.

"Therefore, it is clear that investor sentiment on a global basis remains very bullish toward gold prices."

---(see url for full news, 24-hr newswire)---

Beer Man RE: Gold & Silver Coins !!!#1430394/5/06; 18:37:46

The Coin I have that I like best is a 1 OZ. Silver round from the Constitution Mint. On the back is says ....No State Shall make any thing but Gold and Silver Coin a tender in payment of debts...... ART. 1, SEC. 10 U.S. Constitution ..... RE: US Rep slugging a cop .... why are they not charged with failure to uphold & defend the Constitution ...... not this school yard B.S. ...
Thoreauly@ tejbear #143037#1430404/5/06; 19:38:19

"Frankly, I don't really have any issue with fiat money…as long as it is properly managed."

I wouldn't either, were it not for the fact that central management of money is as disastrous as central management of the rest of an economy. You might want to dust off your copy of The Communist Manifesto to confirm how the two go hand in hand.

"Efficient management of fiat money can be measured by effective control of inflation. No inflation, adequate levels of fiat. If you have inflation, you have too much fiat, deflation, too little. Following Goldilox's recommendation, I watched the Money Masters video, and the author outlines the effective use of fiat money by some early US settlements."

I've got the Money Masters video on order. In the meantime, I can't wait for Goldilox's reply.

"However, since 1913, we have been OUT OF CONTROL and the Federal Reserve is printing $$ like crazy. Now the manipulators are trying to keep the dollar's "house of cards" from collapsing. The result is only postponing the inevitable correction, and subsequent drop in the value of the dollar. This correction will also make the POG & POS excellent investments. Sadly, almost since day one, the Federal Reserve has been driving the value of the dollar down."

Over 96% so far. But if we can just get the right people in there...

"However, given the lack of understanding of general economics by Joe Public, it is probably dubious that fiat money can ever be safely used here in the US. The politicians & bankers just love to print the stuff for all of those little things, i.e. Vietnam War, Iraq, Star Wars and misc."

Blame Joe Public if you will (did someone say "public education"?), but as Henry Ford said, in perfectly elitist fashion, "I think it is well that the American people do not understand our monetary and banking system, for if they did, I believe there would be a revolution by tomorrow morning."

"So, silver or gold or fiat; it really doesn't matter. What matters is how competent the leadership is in managing the money. Given that, let us not forget that the guy who lead us into the War in Iraq has an MBA from Harvard. To quote the Mogambo Guru, "HAHAHAHAHAHAHAHA. We are doomed!"

The Mogambo Guru doesn't laugh for partisan political reasons, I assure you.

GonlyoldSouth American Good Will?#1430414/5/06; 22:04:03

So far, I have found one article on this issue.


"NORFOLK — The Navy will send an aircraft carrier strike group, with four ships, a 60-plane air wing and 6,500 sailors, to Caribbean and South American waters for a major training exercise, it was announced Monday."

""If I was sitting in the Venezuela capital looking at this American task force, the message I would be getting is America still is not so distracted by Iraq that it is unable to enforce its interests in the Caribbean," Thompson said."

"Stephen Johnson, a former State Department and senior policy analyst for Latin America at The Heritage Foundation, said..."It's a chance to show the flag and let our friends know we care,""

"However, there also is increasing concern Venezuela has begun to amass new weapons – from rifles to helicopters – possibly including Russian Su-27 or Chinese J-10 aircraft ."

"Venezuela has always announced plans for acquiring new military hardware, even before Chavez came to power in 1998, but couldn't afford it , {Baranauskas} said.

"That was before the oil prices went up," Baranauskas said. "Now the money is available...""

End of Snips.

If this should turn into an U.S. backyard armed conflict, what do you think the POO & the POG will do? Got food and gold?

GoldiloxIf only . . .#1430424/6/06; 00:09:50

Yes, if FIAT were managed responsibly, gold and silver as money might possibly be the "barbarous relic" that the Money Masters profess it to be, but alas . . . the historical score is a complete shut out for gold.

As the FED watchers likened their actions in the past year to a baseball game, the ninth inning is upon us, and the gold team is dealing serious heat. Once again, the overnight action is challenging $590, and Sinclair's $610 is just a quick market rally away.

That "one drop" of burning Saudi oil still has the potential to stomp the bejesus out of the Crimex shorts.

As for Henry Ford, he once compiled a pre-Hitler collection of essays from his Dearborn Independent rag entitled:

"The International Jew, the World's Foremost Problem" c.1921

His poor choice of title cost him readership of all but the most anti-Semitic, but once I finally got a copy (it's hard to find), his premise was that international banking under the Rothchilds, et al, was completely controlling national economies and forcing manufacturing to develop completely subserviantly to their financiers. Not a lot different than the Money Masters story. Henry was not necessarily anti-Semitic (at least in this collection), but, as an industrialist, he was strongly anti-banking-cartel.

CaradocPre-London trading#1430434/6/06; 01:50:49

Quite an erratic dance the canines are doing in the low 590s. They seem to be anticipating something....

The day before us should be a l9t of fun!


Mr GreshamSir LimitUp?#1430444/6/06; 02:48:14

Have you kept a steed in readiness? Thy ride approaches...
KnallgoldGold stocks#1430454/6/06; 03:11:36

Gold stock investors starting to convert to physical at 600/oz.?Will they act as they have outlined many times? (just trying to bring out Deadeye)
SundeckGo Spot!#1430464/6/06; 04:01:14

Spot snuffling towards $600...seems to be on the scent of something...Hi ho Silver...$12 and away!!
SundeckIran oil exchange#1430474/6/06; 04:45:33

This article cites a recent one by Baker in the San Francisco Chronicle, and provides a rebuttal of many of Baker's assertions:

Much like NASDAQ the Iran Oil Exchange is completely computer-driven and does not require the presence of sweaty, over-caffeinated, traders with strips of paper and strange hand-symbols. Hossein Talebi, the bourse's director, has said that "most deals will be conducted through the Internet." (something that NYMEX did back in 2000 through their eNYMEX effort). Not that it matters, but even if you did need physical access to financial service companies, they're just a few short miles away in the UAE.

As for computer and economic expertise, Iran's exchange is being built by a consortium of European technology consultants (PDF) with a deep background in the oil industry. In his article Baker quotes John Taylor of Stanford as saying "You can't set up a petroleum exchange in Omaha." Professor Taylor may not have kept up with what's been going on in outsourcing, OC3 high-speed internet links, and secure trading terminals. So actually, yes, you could set up a petroelum exchange in Omaha. In fact there's a good chance the replicated data center for NYMEX is somewhere outside of New York City -- perhaps even in the midwest -- with the main offices in New York serving administrative and marketing functions. Welcome to the 21st Century.

Sundeck: Mmmm...difficult to separate the information from the misinformation on this subject, but on balance, i'd guess that the Iran Oil Bourse is gonna be a goer..."sweaty, over-caffeinated, traders" or not!


SundeckLink for IOB...#1430484/6/06; 04:46:47

...see last post...
Caradoc@Sundeck#1430494/6/06; 04:48:05

Yes, indeed! And those of us involved with palladium don't mind it being up an even $20 at this point.

A pleasant day to you, sir.


SundeckAnother reminder from Dr. Eckart Woertz #1430504/6/06; 05:32:08

...the Economics Program Manager at the Gulf Research Center in Dubai.


The women of India and the Middle East, who represent the two most important demand factors in the world gold market, have thus outperformed the sophisticated hedge funds of Wall Street with a very basic "gold, buy and hold" strategy.
Dubai constitutes a convenient time window between Asia and Europe and the DGX will be the only exchange worldwide to offer trading on Saturdays and Sundays. Therefore, it can be expected that in the age of the internet an increasing amount of international investors will be attracted to Dubai as well. Another advantage of Dubai is that it won't limit itself to the trading of "paper gold" contracts (futures and options) like Tokyo and New York but will be supported by its vivid trading in physical gold. This will become increasingly important as trust in derivative paper gold might wane in light of the problematic derivative short position.
There will be a time where the only available new supply will come from mining companies and like the owner of a petrol station is naturally interested from where the oil he sells comes from, Dubai and the region should develop an interest in upstream investments in the gold sector to safeguard future gold supplies to a thriving gold trading hub.

Sundeck: Wha? Trust in derivative paper waning...NEVER!

...and those wonderful, wise women out-performing the hedge-funds! (Golden touch, but probably not too many with "golden hair".)

Meanwhile, it's farewell to Gene Pitney...probably didn't get around to spending his last dime, but he has certainly played his last juke box...

Whoa-o-o love songs that they sing
Wouldn't mean a single thing
Even though you're standing there
Ruby lips and golden hair
If I didn't have a dime and I didn't
Take the play the juke box."


tejbearThoreauly #143040#1430514/6/06; 06:26:47


Looks like we see thing pretty much the same, except the education of Joe Public. In that, I find the desire to learn pretty much an individual thing. A lot of my "smart" friends don't bother to read. It is not that they are lazy, but they successful and work long hours (60+). When they finally get home, they either take work home, or they are tired and are seduced by the boob tube.

And I have other "smart" friends, who just got tired of all of the "bummer" information "that they couldn't do anything about", so they just stopped reading. And that's the smart ones.

Let's face it, the world is a complex place and it takes a determined effort to stay informed. Although many of my friends have good educations, it didn't prompt them to make a hobby of studying macroeconomics. In fact, out of the 150 people I work with, I am the only one who monitors international macroeconomics. When I relate my concerns with regard to the current account deficit, or the loss of M3, you can see their eyes sort of glaze over, and you know then that they have no idea about what I am taking about.

Let's not forget the general US populous, who are happy watching the spin from Fox News or CNBC. The information to stay informed is available, but requires the individual to put forth a consistent effort to look for it.

Myself: I am a "dark cloud" type person. I am always on the look out for what can go wrong. (I don't like nasty surprises.) When I know a nasty event is coming, I prepare for it, and then go enjoy life. Greatly simplified, I make sure my spare tire is in good condition in the trunk of my car, so I don't worry about it. This allows me to be a pretty happy guy. When the dollar collapses, I will make a profit.

Unfortunately, the human misery that will result from this collapse, and the war/s that usually follow will put a dampener on all of our futures.

What do you think?

The Bear

PS: The attached website allows you view the Money Masters video in a Goggle video stream.

Clink!@Sundeck re Hi, Ho, Silver Awaaaaaaay#1430534/6/06; 07:02:38

I've been wanting to post this for years. Now seems a suitably frisky moment ..... Enjoy, all !


Thoreauly@ tejbear #143051#1430544/6/06; 07:59:26

I've got a longer reply that is more suitable for off-topic weekend discussion and so will put it off until then. In the meantime, let me simply say that I have had much the same experience with my own friends, all of whom are well-educated and intelligent enough to "get it," but who can't seem to internalize matters enough to act on them. So instead of taking out the ultimate insurance policy in what are clearly very dangerous times -- with gold (and silver) all but screaming at them to "get physical" -- they sit on the fence, waiting to be knocked off.

As for the Pentagon video, all I can say is that there is nothing the government can't or won't do to perpetuate itself and that what we have experienced so far may only be the tip of the iceberg.

USAGOLD / Centennial Precious Metals, Inc.Half of the available 85 sets have already sold out -- only 40 remain!#1430554/6/06; 08:36:51

April Buyers' Group
Rare Pre-33 Mexican Gold Coin Sets
Mexican gold coins
Call and Save
1-800-869-5115 (Ext. 100)

TownCrierThoreauly and tejbear, "I've got a longer reply that is more suitable for off-topic weekend discussion..."#1430564/6/06; 09:05:32

In case you missed the original "memo", here it is again:
Navigating the Wide Seas of Discussion

With the New Year upon us, we felt it would be a good time to make this change -- a "New Year's Resolution", if you will. We are looking forward to 2006 as an important year for gold and the international economy. It is our sincere hope that this unique forum will continue its strong legacy in serving as a source of information and opinion for our current and prospective clientele.

After much deliberation, including input from USAGOLD-Centennial Precious Metals clientele who either participate in this forum or visit it regularly, we have decided to return to the "gold-only" discussion format, including weekends. We see this return to our original format as in the best interest of both the firm and the folks which gather here.

***The Litmus Test: Acceptable posts include discussion of economics, financial and monetary markets, and geopolitics -- that is, insofar as they each are made to demonstrate relevance to GOLD ownership, pricing, etc.

***If you see a post disappear, it likely was deemed sufficiently off-topic to warrant removal. Consider that to be a gentle warning. A pattern of individual abuse will be met with subsequent revocation of posting passwords.

The rest is up to all of you -- to carry forward in the spirit with which we created this forum and with which we would like to see it sustained. Let's not forget that it wasn't too many years ago that discussions like this on gold as it relates to our political, financial and economic well-being did not even exist. The mainstream press controlled what was heard about gold, drowning out all others having quiet voices and smaller audiences. We have been turning the table here for nearly eight years! If we all appreciate and take personal responsibility for what we have here and make it better place for all visitors, both new and old, by this we will nourish something special for ourselves and those who follow after.

Let the discussion continue. . .

It was probably time for posting a reminder anyway. Thanks for the inspiration.


GoldiloxForces mounting?#1430574/6/06; 09:22:46

After bouncing off $600 and $12, Au and Ag seem to already be consolidating to mount the next charge.

Up into the close?

GoldiloxStop thinking short-term#1430584/6/06; 09:29:02


Today I was asked by a reader if I was fighting a market.

My answer was that I am totally familiar with all the cycles (waves of nature if you will) that impact the gold market. I was informed and knew that 2005 to the present should have been much different to cyclical analysts than what has unfolded. They should not hang their hats on cycles alone, but read them carefully in light of what is happening currently.

Structural fundamental rot, exogenous events like Iran, Iraq, Venezuela, Nigeria, outrageous lack of fiscal responsibility and dropping confidence in leadership are a few items that can throw cycles into a cocked hat.

The impact of the many cyclical considerations is only evident in the GM-like slow car wreck that the US dollar is. Gold after all the chatter is nothing less than a currency. This currency comes into favor when others fail. In time all fail and gold ascends to the money of last resort. It is the only HONEST money on the planet because it is without liabilities attached. That is Gresham's Law and will prove (as it always does) totally correct once again.

As you read on today you will see an article that was carried by Fox News of all places. This article sustains the reality that administration has controlled media. The masses are blind to the fire that has started in their house. They are yet to even smell the smoke.

Gold is teasing $600 with a high probability of slicing through it in the near future. This hints at what is going to happen later in 2006 when cycles call for a take off of gold into 2009. It is going to rise with such power and prominence even the most bullish bull will be stunned. I am not speaking of the maniacs that write crazy things, but rational and positive bulls. It might even take John Embry by surprise.

This is why I think it is silly to try and catch every move in gold. I would think trading ICE (a stock) on a strict trend line basis might be more rewarding.

Gold is insurance. Gold is your financial lifeline. The dollar is in an economic war and it is losing. Face it and deal!

Do not play for peanuts. I am not. I see this as the BIG ONE so I am "balls to the wall" in my own way.

You should be the same in a debtless manner.

It is all up for gold. The wind will be at its back after the summer. It was 70 degrees here recently so summer cannot be far off. Stop being a short term thinker and get real. "The world financially has ended, you only don't know it yet".

The dollar slowly and sadly slipped under another Fibonacci support today. The supply of dollars is building, buyers are slowly withdrawing and its future is written on the wall of perdition.


Couldn't have said it better myself. Everytime I read the short-term chartists, I wonder if they realize the forest they are in for all those trees?

Goldilox"The heat is on!" - Venezuela takes over two oilfields#1430594/6/06; 09:36:17


Hugo Chavez, Venezuela's president, has tightened his grip on the country's energy resources, following through on threats to punish international companies that resist government control of the nation's oilfields.

On Monday, Rafael Ramirez, the oil minister, said Venezuela seized two oilfields from France's Total SA and Italy's Eni SpA after the companies failed to comply with a government demand that operations be turned over to state oil company Petroleos de Venezuela SA, or PDVSA.

He said: "Those two companies resisted adjusting to our laws. Those fields return to total, absolute control by Petroleos de Venezuela."

Until PDVSA took control of the oilfields on Saturday, Total and Eni had operated them under contract. Some other companies, including Exxon Mobil Corp, decided to sell their stakes among the 32 Venezuelan oil properties rather than go along with the new terms.

Ramirez, asked if companies that resist will be forced out of Venezuela, replied: "We don't have a veto against any company here.

"Companies that don't adjust to our laws, we don't want them to continue in the country."

More revenue

Venezuela's weekend seizures were the first as part of Chavez's effort to draw more revenue from companies pumping crude in the South American country.

Private oil companies had run 32 oilfields in Venezuela independently under contract with the government. But Venezuela demanded last year those contracts be changed into so-called "mixed company" joint ventures that give PDVSA a minimum 60% stake.

Ramirez: We don't want players
who don't adjust to our laws

Venezuela has been emboldened to take a harder line due to rising oil prices, political instability in the Middle East and Nigeria, and new buyers in Asia.

Light sweet crude for May delivery was up 42 cents to $67.05 a barrel on Monday afternoon on the New York Mercantile Exchange.

Ramirez said 20 companies, including Spanish-Argentine Repsol YPF, Royal Dutch Shell PLC and China National Petroleum, representing 25 oilfields have signed on to the new legal framework to create joint ventures.

Another five oilfields were voluntarily returned to PDVSA after companies with stakes decided to turn them over rather than operate them as joint ventures.

Ramirez declined to say if those companies, which include Repsol and Japan's Teikoku Oil Co, would be compensated financially.

Goldilox"The heat is on!" - Venezuela takes over two oilfields#1430604/6/06; 09:36:17


Hugo Chavez, Venezuela's president, has tightened his grip on the country's energy resources, following through on threats to punish international companies that resist government control of the nation's oilfields.

On Monday, Rafael Ramirez, the oil minister, said Venezuela seized two oilfields from France's Total SA and Italy's Eni SpA after the companies failed to comply with a government demand that operations be turned over to state oil company Petroleos de Venezuela SA, or PDVSA.

He said: "Those two companies resisted adjusting to our laws. Those fields return to total, absolute control by Petroleos de Venezuela."

Until PDVSA took control of the oilfields on Saturday, Total and Eni had operated them under contract. Some other companies, including Exxon Mobil Corp, decided to sell their stakes among the 32 Venezuelan oil properties rather than go along with the new terms.

Ramirez, asked if companies that resist will be forced out of Venezuela, replied: "We don't have a veto against any company here.

"Companies that don't adjust to our laws, we don't want them to continue in the country."

More revenue

Venezuela's weekend seizures were the first as part of Chavez's effort to draw more revenue from companies pumping crude in the South American country.

Private oil companies had run 32 oilfields in Venezuela independently under contract with the government. But Venezuela demanded last year those contracts be changed into so-called "mixed company" joint ventures that give PDVSA a minimum 60% stake.

Ramirez: We don't want players
who don't adjust to our laws

Venezuela has been emboldened to take a harder line due to rising oil prices, political instability in the Middle East and Nigeria, and new buyers in Asia.

Light sweet crude for May delivery was up 42 cents to $67.05 a barrel on Monday afternoon on the New York Mercantile Exchange.

Ramirez said 20 companies, including Spanish-Argentine Repsol YPF, Royal Dutch Shell PLC and China National Petroleum, representing 25 oilfields have signed on to the new legal framework to create joint ventures.

Another five oilfields were voluntarily returned to PDVSA after companies with stakes decided to turn them over rather than operate them as joint ventures.

Ramirez declined to say if those companies, which include Repsol and Japan's Teikoku Oil Co, would be compensated financially.

GoldiloxGold Hits $600 - Now What?#1430614/6/06; 11:37:53


SAN FRANCISCO (MarketWatch) -- Gold's reached $600 an ounce for the first time since 1981 but the real surprise will be where it goes from here, with experts predicting a near-term downtrend that could clear the way for four-digit prices in the next few years.
"Gold at $600 an ounce might be a surprise to many, but these are the same people that were surprised when gold hit $300, when it broke $400 and when it moved to over $500," said Emanuel Balarie, a senior market strategist at Wisdom Financial.
"Most likely, they will still be surprised when gold hits $1,000 an ounce," which could come in the next three to four years, if not sooner, he said.


The "mainstream media" is starting to look twice! If the investing sheep are watching too, we probably have some more "volatility" ahead.

968Russian oil futures exchange to launch late 2006#1430624/6/06; 14:23:19

Russia's economic development and trade minister said that an oil futures exchange would be opened in Russia in the second half of 2006.
German Gref told a government session that the Economic Development and Trade Ministry and the country's antimonopoly bodies were to complete work on necessary documentation in the first half of 2006.
Source: PIN/RIA Novosti
Dollar, or euro denominated ?

968Shanghai petroleum exchange opens in June#1430634/6/06; 14:26:03

A new exchange is preparing to debut spot and forward trading of oil products here, to pave the way for the opening of China's wholesale oil market at the end of this year, an exchange official said.
"We will begin formal trading in the first half of the year," a senior executive of the new Shanghai Petroleum Exchange said. The exchange plans to open in mid-June.

The exchange would trade spot fuel oil and a six-month forward contract, before adding other refined oil contracts in the future. The Shanghai Futures Exchange already offers a fuel oil futures contract, and has said it is considering a liquefied petroleum gas contract.
Petrol, diesel, and jet fuel imports are concentrated in the hands of a few state-approved importers, leaving little opportunity for traders. But China will open its wholesale oil products market by the end of this year, under commitments it made when it joined the World Trade Organisation.

"This type of oil exchange was approved a long time ago, but it never took off because there were no spot products to trade," said an oil trader.
"They need to open up imports and refiners need to sell freely to the market for this type of an exchange to work," he added.
Dollar or euro denominated ? With or without the IOB, FOA's process keeps on rolling...

osa104cHigh Expectations#1430644/6/06; 14:55:31

One of my miners went up 28.21%........expensive gold to mine.....must expect physical to go "TO THE MOON"......WILD card...........OIL and SUGAR drought....REMEMBER???
Ten BearsJim Willie#1430654/6/06; 15:56:02

Goldilox msg#: 142970 & Clink! msg#: 143022
Thanks for the response, you are most welcome.

Jim Willie: "A confluence of powerful forces is at work, far more inter-related than we might perceive or admit. Some of the crucially important listed factors lie in the past, while some are in current status. Some factors lie in the future, either on the cusp of tomorrow or just down the road." "there are few coincidences which involve truly large momentous events."

Jim Willie, in the above referenced commentary, relies on an approach similar to that used by James Burke, creator of the PBS series "Connections".

The same approach could lead us to conclude that the conditions described by Peter Schiff (Best Quotes of March 2006) could reasonably have been predicted in the early 1970's when Kissinger traveled to China and structured the trade deal, for global finance, between the USA and the Chinese rulers. Now, as pointed out by Schiff, the US manufacturing base cannot be restored without paying an unacceptable price.

Looking at the de facto immigration policies for the southern US border, and the shattering of the Soviet Union (previously the other super power) one now might reasonably expect a similar shattering of the US in the not too distant future. The balkanization of the southern US has already occurred.

A significant difference between other waves of immigration and this one is the common border between the migrants old home and their new one. A high percentage of the new US residents believe that parts of the southwest should be returned to Mexico, and that achieving a majority in those areas will accomplish that goal.

Gold is a political metal, the Russians who held gold when their currency collapsed were fortunate indeed.

USAGOLD Daily Market ReportPage Update!#1430664/6/06; 17:49:49">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

THURSDAY Market Excerpts

Gold futures reach $600

April 6 (from Reuters, MarketWatch) -- U.S. benchmark gold futures topped $600 an ounce for the first time since January 1981 on Thursday as a shaky dollar and high oil prices sparked buying by investors.

COMEX June gold contracts closed at $599.70 an ounce for a rise of $7.20 on the day.

Gold futures on Dubai's new commodities exchange also hit $600 an ounce earlier in the day. Futures got as high as $601.90 in early morning electronic trading on the NYMEX ACCESS platform, way above a session low of $592.

The market jumped as the dollar fell to a seven-month low against the euro and oil extended this week's big gains to get nearer to last year's record above $70 per barrel. "It was triggered by the dollar, the yen, and of course the idea of $70 crude," said George Gero, vice president at RBC Capital Markets Global Futures in New York.

"Oil didn't help the stock market, so investors were looking for another place to put their money and they seem to be looking at the metals."

Scott Meyers, an analyst with Pioneer Futures, said jitters over geopolitics also fueled the rally into gold, which traditionally is seen as a safe haven for uncertain times.

"Also, the general public always becomes more interested in the metals when they are rising," said Meyers.

"The sharp escalation in gold prices over the past year, up more than 40% over the past 12 months, clearly makes gold one of the wisest investment choices of recent times," said Matthew Parry, an economist at Moody's.

Analysts said gold probably will close above the $600 mark shortly as investors scoop up the metal, both futures and bars of gold.

---(see url for full news, 24-hr newswire)---

SundeckOil exchanges popping up like toad-stools#1430674/6/06; 19:00:42

Ref: Sir 968 msgs# 143062-3...

I'll soon be able to place an order for a few barrels of the good oil down at the corner store while I'm buying the milk...

Seems like everyone is getting into the oil-trading game...references to Norway as well.

Probably not surprising with globalisation...and the importance (shortage) of energy-supply coming to the fore...after all, why would the "developing world" want to continue relying on the anachronism of oil exchanges in the UK and the USA?

Expect more "safety in diversity" as we move along...


melda laureLa la la, la la la, Dum dee doo. Pass the glue!#1430684/6/06; 19:14:50

Oh my my my goodness! So many fireworks and nobody takes any notice any more. We need a louder debate on immigration or Ms holloway to etertain us away from all these interesting times.

It used to be that a certain metal was largely ignored in the press. Now it has company in geopolitics, climate, economy, science. I feel almost sad for the president. He's gone from holding his cards close to the vest to a situation where the electorate has really stopped watching whether he has any cards or there is actually any card game in progress anymore. He doesn't seem to need to spin his top, the media are spinning all the tops for him. I suppose in this environment, Mr Delay may get the death penalty- we need more circuses.

Sir lox, you must try this colloidal gold nastoika, it tastes just like- oh fiddlesticks, this bottle's mislabeled!

melda laure(No Subject)#1430694/6/06; 19:47:28

Sir Ten Bears, when the balkans exploded they were not returned to the USSR or to the Austrian Empire or to the Ottoman Empire. Sacramento is a very long walk from 312 Spring Street in Los Angeles; so also Monterrey California was found too long a walk from Vera Cruz (let alone Madrid!) But I doubt that is the direction the future holds. A monetary federation is more likely (with attendant monetary upheaval burdens like the reunification of the germans). It only sounds impossible, though effectively we are already attempting this with our lack of policy. And riots will happen in due season for reasons unforseen, and in places unlooked for, unless Watts burns again.

Perhaps the real strategic question is who manages the security of the main shipping ports in Mexico and Canada? When the romans stopped fighting, a wall they built which proved no defense gainst the final collapse, nor thwarted the saxons. What walls could defend the dollar?

LimitUpYes Mr. Gresham#1430704/6/06; 21:04:56

Filled with high protein oats!
The Invisible HandThe headline I missed in the USAGOLD Daily Market Report#1430714/6/06; 21:45:07

Gold price passes $600 an ounce
Topazalt PoG.#1430724/7/06; 00:29:14

Better late than never I suppose, we're finally seeing some divergence associated with the delivery period for April. With OI now being frittered away, it remains up to raw physical demand if we're to see any more follow through here IMO.
A big push back to 92DX could spell the end for PoG and PoS this time however the damage to be inflicted in the Months ahead looks awesome!

We watch.

TopazJesse rings the Bell.#1430734/7/06; 00:49:34

A Horse of ANOTHER colour.
TownCrierGold touches high, eyes key data#1430744/7/06; 05:07:12

LONDON (Reuters) - Gold moved closer to $600 (342 pounds) an ounce after hitting a fresh 25-year high on Friday, with funds and investors intent on lifting the metal to new peaks on bullish sentiment, analysts said.

"We will probably have another look higher again later today. It's just a matter of time before we breach $600," said James Moore, analyst at TheBullionDesk.

He said growing investor interest following instability in the dollar, inflation worries, tension in the Middle East and speculation that central banks would diversify into metals had been boosting gold's allure.

The immediate focus for market players, however, was a key U.S. jobs report due later in the day that might affect the dollar and provide clearer direction for prices.

..."A lot of short-term funds have been shifting heavily into gold and other commodities since the start of the new quarter," said Akira Doi, director at Daiichi Commodities Co. Ltd.

Dealers said gold might rise towards $635 should it break decisively through $600.

^----(from url)---^

Goodness, am I dreaming? It's hard to absorb that the key psychological level keenly watched by the entire world -- 342 pounds -- is right here at our doorstep.

You can almost hear them chanting in the streets: THREE - FOUR - TWO!! Three-four-two! Three-four-two...



TownCrierGold Rises to 25-Year High on Fund Demand, Metals Advance#1430754/7/06; 05:20:35

April 7 (Bloomberg) -- Gold futures in New York rose to the highest in 25 years as investors bet metals will deliver better returns than stocks and bonds.

Hedge funds and speculators are betting metals will keep outperforming as demand led by China outpaces supply.

``Fund activity in New York is increasing'' for gold and metals, Tsuyoshi Furukawa, a commodity strategist at Taiheiyo Bussan Co. in Tokyo, said by phone today.

``As prices rise it increases investment efficiency and more money enters the commodities market.''

^---(from url)---^

Good point, and it's been made here before. Gold is still very heavy for the price, but truly, as it continues to rise in price (and real purchasing power) it becomes a much more efficient means with which to consolidate your wealth.


TownCrierGold tops $600 for 1st time since '81#1430764/7/06; 05:22:57

Bloomberg News | April 7, 2006

..."You're bringing a new segment into the market that was never there," said Michael Guido, director of hedge fund marketing and commodity strategy for Societe Generale SA in New York. ''A lot of investor money is pouring into gold and commodities. It's become a valid asset class."

Gold may attract investors as worldwide interest rates remain too low to contain inflation, analysts said.

^---(from url)---^

Same song, second verse.


TownCrierMake your inquiry before the available stock is gone#1430774/7/06; 08:32:19

Nearly a century old, fine Mexican gold!

TOLL FREE 1-800-869-5115, Extension 100


GoldiloxThe "REAL" bone pile#1430784/7/06; 10:18:44


Persons Not in the Labor Force (Household Survey Data)

Nearly 1.5 million persons (not seasonally adjusted) were marginally attached to the labor force in March, slightly less than a year earlier. These individuals wanted and were available for work and had looked for a job some- time in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. Among the marginally attached, there were 451,000 discouraged workers in March, about the same as a year earlier. Discouraged workers were not currently looking for work specifically because they believed no jobs were available for them. The other 1.0 million marginally attached had not searched for work for reasons such as school attendance or family responsibilities.


With a workforce of about 130M, that's about 11.5%, and when added to the 4.8% listed as unemployed, we're taking 16.3%, give or take. These figures compare very suspiciously to 1933, before the miracle of "hedonics", i.e. official lying.

GoldiloxHerman's Hermits#1430794/7/06; 10:24:35


The Boton Globe song and dance reminds me of a line from one of my favorite "silly songs".

"Second verse, same as the first."

GoldiloxThe Gold Rush is ON!#1430804/7/06; 11:23:18


By Kevin Kerr, MarketWatch
Last Update: 11:35 AM ET Apr 7, 2006

New York (MarketWatch) -- Gold bugs, myself included, were gloating with pride Thursday as the yellow metal shined brighter then it has in 25 years.

But when the bells and whistles stop ringing and the horns stop tooting, the celebration of crossing the $600 threshold will likely move to page six, next to the latest celebrity divorce. Then what?

The inflation nation scenario may have been enough to take us above $600. Now gold bugs and those poor souls who waited for the "inevitable" pullback since $250, are equally scratching their heads about what's next and how to get in for the ride.

Investors are scratching their heads and wondering what are the other reasons besides inflation fears that are going to drive gold to the $700 level and beyond. In our drive thru society it's so typical that as we reach $600 everyone is already wondering about $700.

Fiddling while the Fed burns

In the recently released book Empire of Debt, authors Bill Bonner and Addison Wiggin, two respected colleagues of mine, lay out some very non-conventional and straightforward reasons why gold is the clear cut alternative to a currency that, essentially, is not worth the paper it's printed on.

Clearly Federal Reserve Chairman Ben "Helicopter" Bernanke is not instilling the confidence that was hoped for by the Bush administration. Paraphrasing Senator Lloyd Bentsen in the infamous 1988 vice-presidential debate with then-Senator Dan Quayle, "Mr. Bernanke, you're no Alan Greenspan."
Bonner and Wiggin suggest that the empire is crumbling from the inside out.
So if the empire is crumbling and gold is soaring, is there still time to jump on board? Sure -- if you know where to look.


Not quite shoeshine boyz, but more mainstream media "action".

GoldiloxIs that all they've got?#1430814/7/06; 11:31:08

Remember the days of "$6 resistance" and $13 slams?" It looks like this trend may be reversing of late.

I would say gold got slapped today about like a politician who happens to be married to the judge's daughter. How appropriate!

If the shorts are taking their "best shot", "TO THE MOON, ALICE!"

TownCrierMexican gold status update...#1430824/7/06; 12:36:01

As of noon, Jonathan has sent word that less than one dozen sets remain.

Click link, or call for best prices.


USAGOLD Daily Market ReportPage Update!#1430834/7/06; 13:27:40">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

FRIDAY Market Excerpts

Gold eases on day, gains $6 for week

TooliePhysical gold supplies getting tight#1430844/7/06; 14:11:26

Snip: Government lawyers are trying to remove the gold-capped teeth known as "grills" or "grillz" from the mouths of two men facing drug charges.
"I've been doing this for over 30 years and I have never heard of anything like this," said Richard J. Troberman, a forfeiture specialist and past president of the Washington Association of Criminal Defense Lawyers. "It sounds like Nazi Germany when they were removing the gold teeth from the bodies, but at least then they waited until they were dead." (end snip)

Knaw, I was just kidding about the supply of physical being that tight. But the article can perhaps provide something to chew on. Brush aside the idea of the accused being drug dealers, folks would be well advised to keep their mouth shut about their personal (golden) wealth.

TopazBonds, Oil etc.#1430854/7/06; 18:26:11

With little REAL metal in the price mix for the couple of weeks ahead, 'ol Buck can set about balancing the high Oil-weak Bond situation with a show of strength.

It's so much easier for Bucky when we're all on the same PaperPage isn't it?
Of course, one day that won't be the case.

Cavan ManUSAGOLD#1430864/7/06; 20:57:46

Max RabbitzCM - Mexican Gold Content#1430874/8/06; 08:03:20

More than you'd think. 50 Pesos is 1.2057 troy ounces.

Click on the highlighted denominations to see the other coins.

TownCrierCavan Man, Mexican gold weight#1430884/8/06; 09:23:00

The most convenient thing about the traditional gold standard and the fixed rate of convertibility for any given country's monetary unit and gold was that, if you knew the rate on any level, then calculating the the amount of gold represented by any given amount of coinage was simple as tallying up the total face value -- no scale required.

Struck into the face of the 50 peso coin is the message that it contains 37.5 grams of pure gold.

On a peso per gold basis, the ratio is precisely consistent with the message struck into the face of the 20 peso coin that informs us, not surprisingly, that it contains 15 grams of pure gold.

By extension, we know that a 10 peso coin contains half of that (i.e., 7.5 grams), and we could also predict that, were ever a 40 peso coin to exist in that era, it would contain 30 grams of pure gold. And by the same mechanism, and a 5 peso coin contains 10% of the 50 peso coin -- which is 3.75 grams.

For this particular assortment of coins, the total face value is 85 pesos. Mentally simplifying the conversion mathematics would implore us to simply double the hypothetical 40 peso coin and add a 5 peso: 30gr + 30gr + 3.75gr = 63.75 grams.

And happily, a more rigorous summation on a specific coin-by-coin basis reveals a total which is precisely consistent with the one arrived by our mental gymnastics. As Max Rabbitz has indicated, you can follow the embedded hyperlinks to view the individual coin pages to get the specific specs for each one.

But enough of that... the main purpose of this response was to use this opportunity to announce that an online order (last evening) laid claim to the last available set, so this April Buyers' Group special has officially sold out. At under two-and-a-half days, you made quick work of it, and congratulations go out to all of those who acted quickly enough to secure their personal share of this relatively uncommon Mexican gold coinage from the pre-1933 era.


TownCrierProfessor von Braun urges you to "Keep Your Eye on the Ball!"#1430894/8/06; 10:57:22

The latest update to von Braun's "Rocket School of Economics" arrived early this A.M. at my e-mail's in-box, and -- presto-changeo -- it's now been formatted and archived.

(Excerpts) -- April 8th, 2006

It might well be time to pay attention to what's happening in ALL financial markets right about now. All is not well in monetary land, and paper assets -- such as stocks -- just may have reached the end of the recovery rally from the 2002 lows.

...There has been a surplus of cash chasing just about anything that moved to the upside, while CNBC has been targeting the Mom & Pop's with the likes of Jim Cramer's aptly named Mad Money shows airing 3 times a night. Recently he has been touting Poland (can you believe that??) as the next 'hot' market. Yep, right Jim, but for what -- sausage???

The preservation of wealth should be the focus of investors from now on in as the US-based world financial system is over-extended, over-hyped, over-borrowed and over-due for a severe correction.

...Paper assets include stocks, all stocks, and this includes gold stocks which are, to begin with, unlikely to escape a serious downturn in stock markets in general. There is also still the unresolved issue of the forward sales programs adopted by several of the larger mining companies. To date margin calls have been conspicuously absent but what happens if gold reaches $1000 per ounce? Share registers of these companies show a large percentage of shares being held by mutual funds, and in a downturn what will they sell first to meet redemptions?

...The inherent absurdity of a monetary system that expands by issuing debt which can never be redeemed for anything other than more debt is becoming apparent and this is showing up in rising commodity prices. By this I mean that 'old' money may already be accumulating the metals for their own account.

The 'ball' that one should be keeping ones eye on is the price of both the precious and the base metals and their relationship to paper assets.

^---(see link for access to full commentary and archives)---^


Federal_ReservesSnow Balls chance in Hell.#1430904/8/06; 11:14:02

SNOW Ball is melting fast.

While the unemployment rate fell to 4.8 percent in February from 6.3 percent in June 2003, workers' pay has risen at
a slower rate than in other expansions, companies are paying a smaller share of their profits in salaries than at any time since the Great Depression and the budget deficit will be a record this year.

That may explain why three-fifths of Americans disapprove of Bush's handling of the economy, compared with 37 percent
who approve, according to the Bloomberg/Los Angeles Times poll.

>>>> IMHO
Snow was a shyster and a huckster for the Administration's failed globalistic policies. They have saddled the country with huge trade and fiscal deficits, sunk us deeply
into a long term war in middle east that threatens our prestige, and have let the country be overrun with illegal aliens who wave foriegn flags at rallies and declare their rights have been violated. The average american no longer supports the policies of the global elites and are fast catching on. They create jobs that american's won't do, and export the ones they do. Prepare for bankruptcy.

BoilermakerProfessor Kawai sees problems, avoids suggesting obvious solution. #1430914/8/06; 12:24:52

"Perhaps China is accumulating too much foreign exchange reserves," Masahiro Kawai, head of the ADB's Office of Regional Economic Integration, told Reuters.

"Foreign exchange reserves are good as it gives a cushion against any external shock. But if you accumulate too much foreign exchange reserves, the costs will become bigger," he said.

"Experience in many countries tells us that by accumulating foreign exchange reserves, eventually the monetary policy consequences could be big," Kawai said on the sidelines of a meeting of European Union and Asian finance ministers and central bankers in Austria. '

Bejing(ground control) we have a problem. Too much sterilized rocket fuel, no place to store it. Need instructions how to handle. Condition critical.

I bet TC could help these financial astronauts find a home for their overburdened paper treasury.

Cavan ManMEX PESO RESPONSE#1430924/8/06; 13:27:30

Max: Thanks.

Randy: You definitely have a way with words and with condescension.

Back to the lawn and to the shadowlands.....CM

Cavan ManPerhaps they should.....#1430934/8/06; 13:28:25

........teach humility in Boulder.
FlatlinerBook review as not seen on Amazon#1430944/8/06; 14:47:20

Below, I've quoted a couple paragraphs from Black Gold Stranglehold. I found ideas presented in this work interesting and somewhat similar to works store on this website. I have no association with the authors and found is worth the few bucks.

Page 40: "... Astronomers continue to confirm Gold's observations that hydrocarbons are amply available in space. In 1986 scientists had a rare chance to study the makeup of comets when Haley's Comet passed. Several probes flew close enough to obtain scientific readings on the chemical composition of the comet's core. What they found was that about 80 percent of the comet's nucleus was ice; some 15 percent of the remainder was frozen carbon monoxide; the remainder was frozen carbon dioxide, methane, and ammonia.

Methane is a hydrocarbon product. Were there dinosaurs in outer space? No credible scientist yet has come forward to suggest that the methane found in comets was produced as a result of decaying protoplasm. This is the light bulb that went off in astronomer Thomas Gold's mind."

Page 217: "... In January 2004, at an economic conference in Saudi Arabia's Red Sea city of Jeddah, Prime Minister Mohamad advised the Islamic world to sell oil for gold, not dollars, to avoid being "short-changed" by a decline in the U.S. economy: "The price of oil is $33, but the U.S. dollar has declined by 40 percent against the euro, so you're effectively getting $20. You're being short-changed." He suggested that the Islamic oil-producing nations should tally their annual imports and exports, settling the difference at the end of the year in gold dinar. ..."

Ten BearsHenry C K Liu, THE WAGES OF NEO-LIBERALISM PART 2:#1430954/8/06; 16:14:07

The world's interlinked economies no longer trade to capture a comparative advantage; they compete in exports to capture dollars needed to service dollar-denominated foreign debts and to accumulate dollar reserves to sustain the exchange value of their domestic currencies.

To prevent speculative and manipulative attacks on their currencies, the world's central banks must acquire and hold dollar reserves in corresponding amounts to their currencies in circulation.

The higher the market pressure to devalue a particular currency, the more dollar reserves its central bank must hold. This creates a built-in support for a strong US dollar that in turn forces the world's central banks to acquire and hold more dollar reserves, making it even stronger. This phenomenon is known as dollar hegemony, which is created by the geopolitically constructed peculiarity that critical commodities, most notably oil, are denominated in US dollars.

All central banks have since been forced to hold more dollar reserves than they otherwise need to ward off sudden speculative attacks on their currencies in financial markets. And dollar reserves by definition can only be invested in US assets. Thus dollar hegemony prevents the exporting nations from spending domestically the dollars they earn from the US trade deficit and forces them to finance the US capital account surplus, thus shipping real wealth to the United States in exchange for the privilege of financing US debt to further develop the US economy.

The US capital-account surplus in turn finances the US trade deficit. Moreover, any asset, regardless of location, that is denominated in dollars is a US asset in essence. When oil is denominated in dollars through US state action and the dollar is a fiat currency, the US in essence owns the world's oil for free. And the Quantity Theory of Money dictates that the more the US prints greenbacks, the higher the price of US assets will rise. And by neo-classical definition, a rise in asset value is not inflation as long as wages lag behind. Thus a strong-dollar policy gives the United States a double win while workers everywhere, including those in the US itself, are handed a double loss.

On top of this monetary scam, the US wants to push the exchange rate of the dollar further down to erode the value of the massive dollar holdings of its trading partners, as the exchange rate of the dollar affects only those who live, operate in or visit non-dollar economies. Because the Fed can print fiat dollars at will under a dollar-hegemonic regime, a dollar-denominated US trade deficit does not present a balance-of-payments problem for the United States, as it does all other countries that cannot print dollars. Thus a US trade deficit, being not a balance-of-payments problem, cannot be cured through manipulation of the exchange rate of the dollar. The solution has to come from reducing wage disparity between the two trading economies. ( Aha; but from increasing china's wages to workers, or decreasing USA workers wages...look for little of the former and more of the latter)

In 2005, the per capita annual income of Chinese urban residents was 10,493 yuan, or $1,294 at the official exchange rate of 8.11 yuan to a dollar. The per capita annual income of rural residents was 3,255 yuan, or $401.

The socialist camp registered impressive growth both before and after World War II but began to lose momentum when the Soviet Union was drawn into trade with the capitalist camp to finance the Cold War arms race.

Thus dollar hegemony has gone beyond the "too big to fail" syndrome. It has created a world of willing slaves to defend the dollar out of fear that without a strong dollar, tomorrow's food may not be available.

For the socialist camp, trading with the capitalist camp was the strategic error that caused it to expose itself unprotected to a game it could not win and that it would lose from the outset and never catch up. In that sense, neo-liberals are on target in claiming that free trade promotes capitalistic democracy, but they are dishonest in claiming that free trade is a win-win game for all participants. International free trade is only good for the hegemon, as domestic free trade is good for the monopolist.

With a stronger yuan against the dollar, Chinese sovereign debt denominated in yuan will buy more dollars from China's export sector, which means each yuan will buy more US Treasuries. This will reverse the historical interest-rate disparity between the yuan and the dollar and cause a halt to the carry trade of borrowing low-rate dollars to invest in high-rate yuan asset and stop the flow of dollars to the PBoC to buy more US Treasuries. So revaluation of the yuan will not help the US.

The Invisible HandWorld 'cannot meet oil demand'#1430964/8/06; 17:45:49,,13130-2124287,00.html

THE world lacks the means to produce enough oil to meet rising projections of demand for fuel over the next decade, according to Christophe de Margerie, head of exploration for Total and heir presumptive to the leadership of the French energy multinational.

mikalOutmaneuvering inflation#1430974/8/06; 19:26:30

Investors seek safe haven of gold | This is Money | Brian O'Conner
mikalIt's not the heat, it's the humidity#1430984/8/06; 21:11:12

Soaring gold price reaches $603 | BBC NEWS | April 7, 2006
Written by a man of few words- too few - but not about your common garden variety spontaneous combustion.

mikalHoping "shared responsibility" averts "crash"#1430994/8/06; 22:29:13

IMF Gambles as it Convenes Econ Imbalances Meeting
Lesley Wroughton - Reuters - April 6, 2006

mikalMatching up the gold drivers#1431004/8/06; 23:22:36

Market Report: Precious Metals Show the Midas Touch - Louisa Gault - 4-09-06
mikalWhispers setting the stage#1431014/8/06; 23:45:08

$600 Gold- Overvalued or Still a Safe Bargain! | Gulf Daily News | New York | April 9, 2006
"But most significantly, said Weldon, gold was "only beginning to flex it's muscle as a store of wealth" versus the key US equities market."

mikalCorrection to quote below#1431024/8/06; 23:47:18

"...only now beginning to flex..."
USAGOLD / Centennial Precious Metals, Inc.SECOND EDITION -- Written for Today's Market!#1431034/9/06; 07:03:08">Gold Investing - Second Edition
KnallgoldMargin calls#1431044/9/06; 10:45:05

"There is also still the unresolved issue of the forward sales programs adopted by several of the larger mining companies. To date margin calls have been conspicuously absent but what happens if gold reaches $1000 per ounce? "

Hmm,maybe theres a silent agreement that the mines just have to deliver the physical to someone specific and then all remains well for them?

slingshotSearch for the Renaisance#1431054/9/06; 11:25:45

Sir M.K. went to the Council Chamber and sat down at The Table of Yore and thought for a momment. Sir Prictcho's description of an once beatiful town, disturbed him as to the power of his foe. He needed something more before commiting this GoldBug Army to the march.
"Captain of the Guard", he called. Within seconds a Knight entered the Chamber.
" Bring me the Mirror of Magdelena and summon Knights Topaz,Pritcho,Mikal and Toolie to this chamber", said Sir M.K.
The Captain then asked, " Should I also summon Gandalf, Sir.
"No. I am sure he is doing what must be done. Leave him alone to his work" Sir M.K. answered.
The Captain excused himself and headed for the lower parts of the castle where things are hidden and secure from those who would want to acquire wealth and power for the wrong reasons. Bringing with him two more guards he withdrew from his vest the keys that unlocked the vaults doors. Under lantern light they found the mirror encased in protective cover. Together they labored to fulfill the command.
Not much later the Knights that were called , entered the chamber and Sir M.K. greeted them. He asked them to be seated and all waited silently in the room.
A short parcel of time passed when Sir Topaz asked,
"How are we to be of help to you".
Sir M.K. being in deep thought just raised his hand and pace to one side of the table.
The Knights looked back and forth at each other knowing full well this was not going to be just any meeting.
The Captain of the Guard arrived with the Mirror of Magdelena. Intructing them to place the mirror in the corner of the room and then leave.
When the Chamber door was closed Sir M.K. addressed the Knights.
" This is the Mirror of Magdelena and it was left with me to care for and protect. It has certain powers. I, with others, have used the mirror before and the images it produces are real, eventhough they can not traverse the glass. I hope to gain information that will help us before we march". Said Sir M.K.
"What shall you have us do", Asked Sir Toolie.
" Light only four candles in each stand and then close the shutters and drapes to darken the room. Please sit to either side of myself and face the mirror. Said Sir M.K.
"Then what do we do" asked Sir Mikal.
"We Wait",answered Sir M.K.
A passage of time ensued and the four Knights relaxed in their chairs. Then it began.
The obsidian colored glass transformed into what appeared as a dark pool of water with no bottom. The little candlelight within the room did not reflect off the glass as regular mirrors. Now a haze engulfed the glass and then disappeared as quickly as it appeared.
Sir M.K. expected the creatures would show themselves as before but only a fleeting crossing of images plagued the veiwing.
Then as clear as they would have been standing there, the town of Hammerton was shown.
A quarter moon reflected off broken glass and Sir. Pritcho, sat upright. The mirror had shown them Hammerton as if they were in flight. Yes the town was reduced to a stadium of sorts with the objects and furnishing of the towns people thrown about the makeshift seating. There was no movement untill two small creatures moved out to the arena floor. They engaged in combat and moonlght flickered off what was either small swords or daggers. It continued till one had kill the other and the victor dragged the lifeless body into the shadows. The image started to fade but it was not over as the glass began to clear.


TooliePeru's Humala Wins Most Votes, Exit Polls Show#1431074/9/06; 18:11:02

Snip: April 9 (Bloomberg) -- Peruvian nationalist candidate Ollanta Humala, a former army colonel who vows to redistribute the country's mineral wealth to the poor, won the most votes in a first round presidential election, exit polls showed.
A Humala victory would put Peru in the camp of Venezuela's Chavez and Bolivian President Evo Morales, who was elected in December, who both advocate curbing company profits to help the poor benefit from the region's oil and mineral wealth.
``Investors are worried Humala will raise taxes on mining companies, take them over or do something else equally radical,'' Valdivia, who manages $230 million of emerging market assets at Emerging Sovereign Group, said in a telephone interview from New York. ``He's not been articulate on what he plans to do.'' (end snip)

Well now.... Let's say taxes are raised on mining companies. Sure that may be tough on those that hold shares of those companies, but doesn't that action of making new minerals more expensive increase the value of what one already has on hand? You bet!

ToolieLatin America's year of elections#1431084/9/06; 18:53:40

Linked above is a nice interactive map with info about this years elections in South America. Click on the link for a desired country and get a summery of the leading candidates and their political leanings.
SundeckThe 1906 San Francisco Earthquake, Gold and finance#1431094/9/06; 19:21:08


Economists Kerry Odell, a professor at Scripps College, and Marc Weidenmier, a professor at Claremont McKenna College, in a 2001 research paper, titled Real Shock, Monetary Aftershock: The San Francisco Earthquake and the Panic of 1907, linked the 1906 quake to the 1913 establishment of the Federal Reserve banking system.

"The quake's impact manifested itself in international gold flows, as British insurance companies paid their San Francisco claims out of home funds in the fall of 1906. The capital outflow threatened the fixed sterling-dollar exchange rate, leading the Bank of England to raise interest rates and discriminate against American finance bills. The resulting contraction pushed the United States into recession, setting the stage for the 1907 Panic and the founding of the Fed," according to Odell and Weidenmier's paper.

Sundeck: Mmmm...anyone read the Odell/Weidenmier paper? Apparently the civil response to the 1906 SF earthquake was relatively rapid (compared with that to Katrina and New Orleans) - Ref Simon Winchester's book "A crack in the edge of the world".

I wonder how much more robust (if at all) the financial system in the US is today compared with the 1906 earthquake? I guess having one hand on the monetary hydrant (Fed) makes a big difference..."water quenches fire" and all that...


SundeckDubai gold building#1431104/9/06; 20:00:48

Mmmm...some building...they take gold seriously over there...follow the lnk for more detail on the gold building...


AU Tower (AU being the chemical composition of ‘gold’) will facilitate the gold & precious metals market participants

...errr, I think they mean Au is the "chemical symbol" for gold.


SundeckPMs sharply up???#1431114/9/06; 20:13:06

PMs are sharply up this morning (Australian time)...a bit unusual...could it have something to do with the "civil war" in Iraq comments by Pres. Mubarak of Egypt and the "high-ranking official" in the Iraqi "government"???


The Invisible Handcreative destruction#1431124/9/06; 21:09:54

The destruction of Iraq and its descent into sectarian violence, far from a confirmation of US incompetence, has been carefully planned on a bipartisan basis (notwithstanding domestic squabbles between the two parties in order to better manage public opinion) to achieve those results. Iraq is back into the US dollar hegemony, its resources controlled by the invaders, the main US competitors are licking their wounds without having any sound counter-policy yet to resist the US assault, and Iran is next on the chessboard.

Can the Iran War be avoided? Possibly. Iran would have to quietly agree to abandon its oil bourse project and rejoin the fold of the US dollar supremacy -- but one can sense that the U.S. is far too advanced to now stop in the midst of this creative destruction.

The Invisible HandEurope simulates financial meltdown#1431134/9/06; 22:45:15

Europe's financial regulators have held a "war game" exercise, simulating a continent-wide financial crisis, amid fears they are ill- prepared to stop a problem in one country spreading across borders.
The fun is about to start.

The Invisible HandYahoo! meltdown article seems to originate in FT#1431144/10/06; 00:27:11

However, the report warned that hedge funds and credit derivatives were sources of concern "as related risks remain opaque and they have become extremely relevant in assessing financial stability both across borders and across all financial sectors".
It said that, while hedge funds could contribute to market efficiency, they "can also be sources of systemic risks".
Credit derivatives markets were said to have grown by 128 per cent in 2005 compared with the previous year, with a nominal value of €12,430bn ($14,900bn, £8,700bn) in June last year.

KnallgoldMetals#1431154/10/06; 07:59:26

If you look at the metals,they are all up over 2% (Gold the Dog-still).If that doesen't sound like the early times of wonder Europe plays meltdown.

Gold though hit 25'000sFr./kg today,nice round number.If you told people Gold is up,at 17'000,20'000 etc,they always responded "yeah but wasn't it at 30'000 once?".So if we approach this number again,I'll wager mass psychology will set in.

How much did Free Gold prices smoothen the meltdown scenario?

USAGOLD / Centennial Precious Metals, Inc.New to gold? Try this special combo of assets and info to kick-start your diversification program#1431164/10/06; 08:24:57">gold ownership starter kit
TownCrierHEADLINE: Gold rallies on talk of attack on Iran#1431174/10/06; 08:36:15

NEW YORK (MarketWatch) - Gold futures rose to a fresh 25-year high above $600 an ounce early Monday, joining a broader commodities rally on talk of a possible U.S. attack on Iranian nuclear facilities.

The New Yorker magazine reported that the U.S. is stepping up preparations for a possible air attack on Iranian nuclear facilities, which may involve the use of nuclear weapons against underground sites.

Dan Bartlett, senior adviser to President George Bush, said the New Yorker report is "ill-informed," the BBC reported. Bartlett reiterated that the government is committed to a diplomatic solution to the issue of Iran's nuclear program.

U.K. Foreign Secretary Jack Straw also dismissed the New Yorker report, according to the BBC.

...The United Nations Security Council has ordered Iran to stop enriching uranium but Tehran has refused, insisting its research is aimed at generating electricity for purely civilian use.

"The fear factor related to Iran is real, and an attack of some type is likely imminent from the Bush administration," said Kevin Kerr, editor of Global Resources Trader, a newsletter published by MarketWatch, the publisher of this report.

"The attack could be devastating to the remaining tattered relations between the Middle East and U.S.," Kerr said.

..Frank Holmes, chief executive of U.S. Global Investors, which manages two of the top-performing precious metals funds in the first quarter, said he believes the main support for gold at the moment is coming from the recycling of petrodollars.

"If you look at countries with massive dollar buildup from selling oil, they're diversifying into gold," he said.

Russia has said it wants to increase its gold reserves to 10% of foreign reserves from 5%, Iran has created its own oil bourse based on euros and Venezuela is also turning down dollars for its oil, he said.

"There's a lot of noise (about Iran) but the more important fact is economics," he said.

Meanwhile, an influential Chinese economist said that China should promote yuan reform, allow companies to hold more foreign currency and raise gold reserves...

^---(from url)---^

The slow but steady increase of pro-gold media coverage is having its related growth effect in exposing Main Street America to the need to prudently diversify their portfolios with gold.

Stay informed and stay ahead of the curve; act early while prices remain undervalued. Call USAGOLD-Centennial Precious Metals today.


TownCrierChina economist proposes steps to slow FX reserves#1431184/10/06; 08:50:41

BEIJING, April 10 (Reuters) - China should push yuan reforms, let firms hold more foreign currency and raise gold reserves to help slow the rise in foreign exchange reserves, an influential government economist said.

The reserves have soared in recent years as the People's Bank of China, trying to hold down the yuan, has bought most of the dollars generated by a growing trade surplus and the inflow of foreign direct investment and speculative capital.

Investing those dollars, China has become a big buyer of U.S. government bonds and other dollar assets, helping to finance a heavy U.S. current account deficit and to keep U.S. interest rates low.

"We cannot underestimate the possible loss to the reserves if, in the long run, the United States adopts a weak-dollar policy and we are still maintaining a high level of dollar reserves," Xia said.

China is keen to hedge risk by diversifying its reserve holdings away from the dollar, but economists say that fears of a collapse in the U.S. currency will prevent any dramatic shift...

"How to effectively ease the upward pressure is vital for the yuan exchange rate reforms and also vital in resolving the problem of the runaway growth in foreign exchange reserves," Xia said.

The central bank might need to raise its gold reserves, which had been too low in recent years, to reflect China's status as a major trading nation, he said.

...China must follow its own independent policy, regardless of foreign pressure, by letting market forces adjust the yuan's value towards its "equilibrium level", he said.

^---(from url)---^

This Chinese situation certainly remains one of the socio-economic pillars spotlighting and supporting the shift to a new reserve structure utilizing a free market gold ('free gold') paradigm.

Get yourself in while the gettin's good.


TownCrierUK cable maker declares force majeure on copper rod#1431194/10/06; 09:12:24

April 2006 -- U.K. cable maker Prysmian, formerly Pirelli, has declared force majeure on U.K. copper rod deliveries due to a delay in copper cathode shipments, traders said Friday.

"There were rumors after the weekend they were going to declare force majeure after problems with a vessel. This morning I heard they declared force majeure," a trader said.

European copper fabrictors in Germany, France and Spain have had to temporarily stop production due to a shortage of copper cathode in the past weeks, traders said.

A French and German cable maker confirmed this week they had to suspend production "for a few days at a time" following delays in cathode shipments from South America.

"The spot market (for cathode) continues to be very tight with virtually no material available," a trader said.

Copper traded on the London Metal Exchange rose to fresh record highs of $5,830 a metric ton Friday.

^---(from url)---^

A portrait of metallic reality. By contrast, in our modern world of banking can you ever imagine users/savers causing and/or experiencing a real shortage of digital/paper dollars?

Make the wise decision and choose gold as the real wealth savings (consolidation) of your excess earnings.


Ten Bearspay attention to the signs#1431204/10/06; 09:53:04

Four decades ago, I spoke with a Colombian native who spent up to a year at time in the rain forest in the employ of a geophysical company. I inquired how he survived the jungle. His reply was, "I pay attention to the signs." Somehow that conversation stood out in my memory of that time.

This morning, while having coffee with some other geezers, one of the younger members of the group jokingly asked an army recruiter who came in if they would take 65 year olds. His reply was, yes, if there was sufficient prior service.

All there had served either in the second part of the great 20th century war or shortly after. None were aware of any persons of that age even being considered for duty in uniform service.

Pay attention to the signs. Even doubters are now acquiring some sound money.

mikal@Ten Bears#1431214/10/06; 10:37:02

IMO, another sign of debauchery and desperation aside from recruiting older men- women soldiers.
mikalChina skittish over security#1431224/10/06; 11:16:29;_ylt=ArC6yez3dDiXaXF9F1XmwvGmOrgF;_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

Growing nationalist backlash in China against foreign acquisitions: report - AFP - April 10, 2006
TownCrierGlittering gold markets may take shine off bonds#1431234/10/06; 12:23:46

NEW YORK (Reuters) - Normally an afterthought for U.S. government bond investors, gold prices are suddenly back on the radar amid growing worry the yellow metal's surge to 25-year highs portends more blood-letting for Treasuries.

"Higher gold prices are one of the things fanning fears that monetary policy is still too easy and inflation is a bit of a problem," said Bill Hornbarger, chief fixed-income strategist at A.G. Edwards & Sons in St. Louis.

...Spot gold is up nearly 15 percent year to date while benchmark bond prices have fallen...

Apart from providing stiff competition for global investment dollars, gold's reputation as an inflation warning signal is also alarming for bonds.

"I specifically tie together the weakness in bonds and the strength in gold and commodities," said Peter Schiff, president of Darien Connecticut-based EuroPacific Capital. "Inflation is going to drive down bond prices as it drives yields higher.

For a long time, a direct correlation existed between yields on longer Treasury debt maturities and gold -- both are safe havens when times get turbulent, both are good places to hide when the economy heads south.

Yet in an environment where signs of strong economic growth have kept government debt prices on a downward path, Jes Black, director of research with FX MoneyTrends, argues the recent precious metals rally is yet more fodder for the bond market bears.

"I just keep thinking, man, bonds really need to sell off," he said.

...While a continued rally in precious metals could reinforce that tendency, some analysts caution against reading too much about the inflation outlook from this newfound luster in gold and silver.

"The problem with the logic of using the price of gold as a leading indicator of inflation is that it is subject to a variety of influences that have at best a tenuous relationship with U.S. inflation," warns Lakshman Achuthan, Managing Director at the Economic Cycle Research Institute, an independent research group.

"This includes the policies of the world's central banks..."

^---(from url)---^

To be sure, the inter-relationship between gold prices and general price inflation (and expectations) at this juncture in time is more complicated than a mere soundbite can do justice to.

Choose gold and rest easier having consolidated your promissory digital purchasing powers into actual, tangible wealth. Rhetorical: how else would you propose locking in your accumulated purchasing powers -- with buckets of icecream and stacks of tenuous paper???


ThoreaulyWhy goverment is like pulling teeth...#1431244/10/06; 12:41:43

...and why should be stored elsewhere.
TownCrierGold set to shine more -- Chinese retail market sees $705 per ounce#1431254/10/06; 12:53:25

GOLD jewelry prices in Shanghai will hit a new high at local shops from today and may climb further amid soaring demand for the metal whose prices have already surpassed its 25-year high in the global markets.

The Shanghai Gold and Jewelry Trade Association told Shanghai Daily yesterday that local base retail prices for gold jewelry will rise to 182 yuan (US$22.69) a gram from 174 yuan from today.

Buyers may find local jewelry shops like Shanghai Lao Miao Jewelry and Shanghai Laofengxiang selling the metal even at 186 yuan a gram, as the association allows a 3 percentage point range over the price.

The base retail gold prices in Shanghai markets have gained 19 percent after five price markups since December 13.

Industry watchers said consumers' enthusiasm for the metals may not be dampened despite the record high prices.

"Consumers have a sentiment to buy more amid rising prices as they worry the precious metals will be even more expensive in the future," said Duke Lee, managing director of Prime Platinum International Ltd. "That's why consumption of the metals may not be pulled down by the higher prices in the short term."

^---(from url)---^


GoldiloxTeeth assets#1431264/10/06; 13:36:13

My dentist used to charge $20 additional for gold crowns over ceramic, because he said the amount of gold was quite small. With the run up, it's maybe $50. Leave it to government to spend $500 in dental bills to recapture $50 of gold.

The criminals should will their teeth to an asset protection trust, so they can function like the big boyz.

USAGOLD Daily Market ReportPage Update!#1431274/10/06; 14:16:07">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

MONDAY Market Excerpts

Gold up $9, highest close since 1980 on nuclear talk

April 10 (from MarketWatch) -- Gold futures closed above $600 an ounce Monday for the first time since December 1980, joining a broader commodities rally on talk of a possible U.S. attack on Iranian nuclear facilities. "The saber rattling (albeit strongly watered down in the past few hours) coming from the White House and the wayward chatter coming out of Tehran once again clashed on the world political scene," said Kitco's analyst Jon Nadler.

That left "many to wonder as to when, not if, a preemptive attack on the country's nuclear-facilities-in-the-making would take place," he added.

So "gold will continue to do what it must do to reflect the world's realities and thedemands placed upon it by apprehensive buyers small and large alike."

"The critics are left scratching their heads, as who is to say whether -- in retrospect -- $600 will come to be regarded as having been 'just the beginning,'" Nadler said.

COMEX June contracts closed up $9.10 at $601.80 to mark the highest session-end price for futures since December 1980.

The New Yorker magazine reported that the United States is stepping up preparations for a possible air attack on Iranian nuclear facilities, which may involve the use of nuclear weapons against underground sites.

President Bush said that the news reports over the weekend were merely "wild speculation".

However, "The fear factor related to Iran is real, and an attack of some type is likely imminent from the Bush administration," said Kevin Kerr, editor of Global Resources Trader, a newsletter published by MarketWatch.

"The attack could be devastating to the remaining tattered relations between the Middle East and the United States," Kerr added.

Frank Holmes, chief executive of U.S. Global Investors, which manages the Gold Shares Fund, said that he believes the main support for gold at the moment is coming from the recycling of petrodollars. "If you look at countries with massive dollar buildup from selling oil, they're diversifying into gold," he asserted.

Meanwhile, an influential Chinese economist said that China should promote yuan reform, allow companies to hold more foreign currency and raise gold reserves, according to Felicity Algate, economist at Bear Stearns.

"As Iran returns as a focal point for investors, aided by talk of Chinese increase in gold holdings, [that] should keep a flame under gold this week," said Peter Spina, an analyst at GoldSeek.

---(see url for full news, 24-hr newswire)---

Town CrierThere it is... Spot gold has crossed $600.#1431294/10/06; 15:55:44

gold at 600

Now, on with the show.


TownCrierGold extends climb, $600 the focus...#1431304/10/06; 16:10:35

LONDON, April 10 (Reuters) -

..."The momentum is sufficient to push gold through $600 and certainly up to the $620-$625 area. It's the continuation of investor demand and these investors don't want to give up," said Peter Hillyard, head of metals sales at ANZ Investment Bank.

"Potentially this market can go as high as you like and I don't believe this is a short-term play. The market is just tracking higher and we are in a new paradigm of prices."

The metal has risen 16 percent this year and more than 40 percent in the past 12 months.

Investors have turned to the booming commodities markets for alternatives to lagging equity, bond and currency markets.

In the past 12 months, the S&P 500 index rose about 10 percent, while the Dow Jones industrial average gained 7 percent. The dollar against the euro was up by 6 percent and oil increased by 30 percent.

Tensions in the Middle East, uncertainty about the dollar's outlook, worries on firm oil and speculation that central banks would diversify into metals have also boosted gold's appeal.

Gold had shot up to a record high of $850 in January 1980.

^---(from url)---^

Are you a gold owner yet, or are you waiting for the convenience of $1,000 as an entry point?


TownCrierGold graphs#1431314/10/06; 16:17:40

In case it isn't obvious, that previous graph is a snapshot to commorate that point now frozen in time.

To enjoy more useful, updatable graphs, click on the url above for the 'realtime' source of that earlier $600.01 snapshot.


Golden LionheartShock!........Horror!#1431324/10/06; 17:00:49

As I type this gold has crashed to $599.60!!!!!!!!!!!
melda laurePhasors on stun.#1431334/10/06; 17:03:38

Bombs, tsk tsk, so passe'. Wouldn't it be better if the persians had a little nuclear "accident" rendering the refinery both harmless and useless at the same time? And it would be so much better for the oil market (and less disruptive to the gold market too- why the price might drop to $450, almost affordable!) Well, I can dream cant I? Unfortunately, orc mischief is the order of the day in this age.
mikalDollar fears and safe haven motives#1431344/10/06; 18:23:26

Market Insight: Dollar Faces Punishment For US's Economic Imbalances | Financial Times | Steve Johnson | April 10, 2006
Without mentioning the 'g word', this currency analysis readily makes gold very conspicuous by it's absence.

GoldiloxSilver and gold#1431354/10/06; 20:59:39

Ag at $12.85 in after-hours.

Seems only last week it was under $12.00 - oh, was it last week?

Silver is defintely riding its "volatility," while gold more passively marches onward and upward.

Spot over $601 as I type.

The HUI was rather tame today, as corrections ensued as soon as it was apparent that the $600 run would not be successful.

Gandalf, what was it we witnessed at 400 and 500? Three running starts before blasting through the "barrier"?

"Man the battering rams!"

Black BladeSpot jumped the fence#1431364/10/06; 22:09:11

Now up over $602/oz. The barrier has been pierced and so no psychological resistence to be claimed. New territory and rarified air in this next leg up.

- Black Blade

Ten BearsAMI Monetary Reform Conference#1431374/10/06; 22:10:35

Tilting at windmills?...or maybe worth a trip to Chicago.
mikalGold market eyed by funds#1431384/10/06; 22:19:23

Gold Speeds Past $600, Highest Since December 1980 | Lewa Pardomuan | Reuters | 4/10/06
ArmageddonFair price of Gold = $20,000 per ounce? #1431394/10/06; 22:43:19

Theory: In a globalized market like we have now when capital and businesses can move anywhere on the planet to take advantage of labor and resources it would seem that wages will reach some equilibrium. At this point an ounce of gold would be related to the average wage in a more or less constant way such as one half a year's average wages in any of the industrialized countries will buy 1 ounce of gold for example.

Right now the average wage in China is about $1,000 per year where assuming gold = $500 per ounce an ounce of gold will be worth about one half a year's of wages for someone in China. With the effects of globalization I have stated above the average American salary is around $20,000 to $40,000 per year I think so that the future price of gold would be around $10,000 - $20,000 per ounce excluding inflation.

Of course there would still be countries that are very poor and would not be included in this theory because they would still be agriculturally based not industrialized. I would be interested in what others think. :)

GoldiloxNice DOW:Au chart#1431404/10/06; 23:18:02

Not as long as I would like on the timeline, but vivdly demonstrates the effect of rising gold against a basket of inflating dollar assets.
geArmageddon, Fair price of Gold, my 2 cents on this subject#1431414/11/06; 00:02:56

Assume that world GDP is about 56 trillion Dollars.

Assume that GDP divided by M3 is in the range of 1.2 to 1.5.

Then, world M3 should be in the range of 47 to 37 trillion Dollars.

Assume that Central Bank gold weighs 30,000 tons or about 1 billion ounces.

Assume that Central Bank gold reserves cover all of the M3.

Under these assumptions, gold price per ounce should be in the range of 47,000 to 37,000 dollars in current dollars.

TownCrierHEADLINE CHINA: Is the largest forex holding a blessing or headache?#1431424/11/06; 00:04:04

2006-April-11 -- The People's Republic of China experienced strapped days after it was founded. Now should China have to be worried about its massive forex reserve which is still scaling up sharply? The Overseas Edition of the People's Daily published on April.7 an article by Jiang Yong, an expert on economic security with China Institutes of Contemporary International Relations, to look into the question.

...The prospect of riskier forex reserve market and weaker US dollar has been increasingly underpinned by the US trade and fiscal deficit. That will lead to shrinking US dollar denominated assets.

...The experience of Japan and Russia has proven that an adjustment of the mix of forex reserves, more gold and strategic materials holdings, foreign debts repayment in advance, moderate scale management, and the discretion of forex settlement are effective precautions against forex reserve risks.

...It is also necessary to control the rise of forex reserves. It is of consideration to slow down the rise of forex reserves, curb the influx of hot money, and adopt new forex management regime to avoid turning all favorable balance of the international payment into official forex reserves.

China does not take the forex reserve growth as a reflection of economic growth. There are two sources of China's forex reserve. One is from its world trade surplus which is generated by the competitiveness of "made in China" and represents China's economic power to some extent. That is to its credit.

The other is the influx of speculative capital driven by the expectation for "RMB appreciation" since 2002. That part is to the country's debits and does not reflect the country's economic strength. In recent years the debit entry has been higher than the credit entry in terms of the total amount and the growth. Therefore, the soaring forex reserve is the result of the further openness of China's economy and the hot money on the speculation of the prospect of stronger yuan.

^---(from url)---^

Amen to the perspective (awareness) on the gold usage.

Regarding the problems from flow of so-called "hot money", I would merely reiterate my previous elaborations on a socio-political solution by which central banking policy engenders a scenario in which appreciation of the RMB is curbed below that of gold such that, together with open ownership and friendly tax policy, the speculative heat is shunted into the gold market.

Once therein, the very hottest (and stupidest) of the otherwise non-productive speculative inflows can be dissipated in a fitting manner via a (seemingly inevitable) mass conflagration of the paper gold (derivative) portion of the market, but meanwhile in the process thus setting forth the crucible of physical gold to vault to necessary valuation heights of respectibility upon its unfailing performance, and thus be elevated to the position necessary for small amounts to fill in for copious dollars within the reserve portion of the CBs balance sheets around the world.



Black BladeThar She Blows!#1431434/11/06; 01:17:20

Spot over $603/oz. Note that WTI Crude is now over $69/bbl as well. In spite of all the spin about why the price of precious metals and petroleum are higher, it really comes down to "Demand exceeding Supply".

- Black Blade

968Interview with the President of the European Central Bank#1431444/11/06; 02:57:39

Jean-Claude Trichet: "I would draw your attention to the fact that 313 million citizens, even without the United Kingdom, is still a little bit more than the United States. Personally, I am convinced that the United Kingdom will one day join the Economic and Monetary Union because it is in its interests to do so."

"I am convinced of the sincerity of the UK Prime Minister, who did not conceal the fact that, in his opinion, it would be in the United Kingdom's interests to enter the Economic and Monetary Union when the time comes."
Randy, any thoughts what J.C. means by 'when the time comes' ?

The Invisible Hand$625 says FT in $69 a barrel article#1431454/11/06; 04:29:10

Although the outlook remains positive, gold could pause in consolidation below $600, gathering sufficient momentum to break psychological resistance and resuming its inexorable march towards $625," said analysts at Standard Bank.

BoilermakerPredictable Cartel#1431464/11/06; 07:19:08

Yesterday's sell-off of the XAU and HUI telegraphed a full court press in today's London and Comex gold markets. The cartel has become so transparent that the smart money will take advantage of the opportunities that appear on these days. The footsteps of giants are crushing the cartel's feeble defenses.
GoldiloxDOW#1431474/11/06; 09:22:41

While gold challenges resistance at $600, and silver flirts with $13.00, it looks like the DOW is gonna battle for support at 11K - AGAIN.

Each time the DOW "settles" to 11k, it is worth less, thanks to miracle of "money supply liquidity."

Personally, I don't care if the inflationists "prop up" the markets with liquidity. Fundamentally, it still comes back to the bear market axiom - Gold=DOW at the bottom.

No doubt a lot of folks are gonna get hurt - but as usual, some worse than others.

Got gold?

arbyhmore demand for gold and silver#1431484/11/06; 09:29:08

This etf out of canada holds gold and silver in vaults, but it is loading up with more precious.
TownCrier968, thanks for the continuing kindness sharing these gems#1431494/11/06; 09:35:42

J-C: "I am convinced of the sincerity of the UK Prime Minister, who did not conceal the fact that, in his opinion, it would be in the United Kingdom's interests to enter the Economic and Monetary Union when the time comes."

The most important perspective to bear in mind when assessing the relevance of this quote is to consider whose words we're hearing. Jean-Claude has a keen reputation as a very careful and deliberate speaker and communicator. Are we hearing him merely paraphrasing Blair's words (in which case we are on thinner ice) or are we hearing a product of J-C's own good communication?

The difference is this. It would be completely meaningless if, in the actual context of Blair's usage, his effective opinion being conveyed was "it will be in the UK's interest to join when we're ready, and we'll be ready when we're ready." Essentially, it would be conveying a only an unprofound understanding of an INTERNAL condition (specifically, UK's readiness) that will arrive whenever it arrives -- internally. It's no better than confessing the standard fare that you have no prediction for what the future holds, but that you'll know it upon its arrival and that you'll have a certain interest or feeling at such time as when that interest of feeling comes. (big yawn)

However, my hunch is that J-C is communcating something more important -- otherwise, he wouldn't have bothered to cite this particular dialog in the first place. It conveys that there is a definite distinction between the condition of UK's internal interest/feeling and a separate condition of EXTERNAL time. Most importantly, the implication here is that it hints that there is indeed an underlying prediction for a particular external condition that will exist at some coming time.

It would be naive to think that everything ahead is random, unplanned, and left completely to chance, especially in light of J-C's brief comment regarding the "progressive construction" of Europe.

On the nature of change (planned or otherwise), J-C also had this to say...

"The world nowadays changes very, very, very fast given the challenges of science, technology and globalisation."

Wow, I counted the use of 'very' THREE times -- "...very very very fast..." And for a man who is a very efficient communicator, that seems exceedingly excessive, unless he's trying to drive home an very very very exceedingly important point.

I also took not of this part of the interview. The questioner asked,

Q: "Is Europe likely to pay the price of the large US deficits?"

To which J-C spoke in turn GENERALLY, but, notably, chose NOT to answer the question SPECIFICALLY -- that is, there was no comment with regard to the nature of a "price" to be paid nor whether or not Europe stands vulnerable for the paying of it.

Naturally, one might think that any given clever fellow, seeing any manner of exposure to another's debt, would try to structure his own affairs in such a way to avoid paying too burdensome a price himself for the other's behalf. To my mind, clearly, this is largely what the euro project has been all about -- a construction and use of a monetary (and reserve) system that is once and for all NOT a dollar-system derivative and not overly exposed to the ill fate of the dollar reserve system in days ahead -- "when the time (chage) comes"!

And, to be sure, this time/change in question may appear to arrive "very very very" quickly!

[By the way, I'm sure you are quite clever enough to realize that IF this note superficially resonates ANY sort of condescending (simplified) tone to a such smart fellow like you, you will CERTAINLY understand, even though it was addressed to you specifically by name, I have nonetheless tried (as I almost always do) to expand its utility for the broadest possible spectrum of readers, especially including our all-important newcomers. (This footnote can also be considered as my official response and final word in regard to Cavan Man's utterly asinine comment to me on Saturday.)]

Thanks again for the dialog.


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TownCrierSwiss franc gains on ex-Iranian president remarks#1431514/11/06; 09:49:41

NEW YORK, April 11 (Reuters) - The Swiss franc, often considered a "safe-haven" currency, gained against the euro and dollar on Tuesday after a former president of Iran said the country is producing enriched uranium.

^---(from url)---^

Why settle merely for paper Swiss francs when you can without any fuss actually have it in gold? Sovereigns, too, and so much more. Call your friends over there at USAGOLD-Centennial headquarters and get the ball rolling. Better peace of mind can be a simple phone call away. (Remember... Denver business hours!)


TownCrier...Our lives depend on commodities yet most are too afraid to invest in them...#1431524/11/06; 10:27:33

April 10, 2006 (the Daily Reckoning) by Puru Saxena

Our lives depend on commodities yet most are too afraid to invest in them. ... even the mention of the word 'commodities' creates tremendous fear amongst the public.

Human beings are totally dependent on commodities, period. Everybody needs food and clothing to survive as well as energy to go about the business of living. What amazes me though is how people know so little about commodities. Nobody seems to care, and 'things' are just taken for granted.

Every so often, however, commodities get their revenge and the limelight they rightly deserve. When raw materials are in great demand and supplies are extremely tight, commodities make headlines all over the world as prices soar. Now, we are witnessing another such time.

History is dotted with massive bull-markets in commodities, which occurred regularly. In fact, over the past 200 years, we had five major booms in natural resources. The shortest boom I could find lasted 15 years, and the longest one continued for 40 years!

"Why do commodity bull-markets last for such a long time?" you may wonder. The answer can be summed up in two words - supply and demand. When demand is on the rise, it takes years to increase the supply. Unlike financial assets, the supply of commodities cannot be increased at will.

Consider crude oil as an example. Despite our desperate need for increasing oil production, not a single gigantic oil field has been discovered in the past 35 years. ... Similar supply- constraints also apply in the case of gold, silver, sugar, corn, coffee or wheat - wonderful news for the commodity-investor.

Moreover, we are living in a highly inflationary world. Most central banks continue to print money like there is no tomorrow. ... If they don't, the $46 trillion debt in the United States will become even more of a problem and lead the world to a depression. The truth is that money printing (inflation) makes debt less formidable. Due to inflation, the hundred dollars you owe today 'feel' like a lot less in ten years time. So, monetary inflation is another very good reason why you want to protect your wealth by investing in commodities.

While many are concerned about the risk involved with investing in commodities, a recent study conducted by professors from the Yale University and Wharton School reveals that as an asset-class, commodities outperformed both stocks and bonds since 1959 - and with lower volatility when compared to stocks. This study is clearly a milestone, as it eliminates the myth associated with commodity investing....

Today, I continue to accumulate commodities for the long-term as I feel that the current boom will last for another 10-15 years based on historical patterns.

The main drivers behind this boom are the rapid urbanization and industrialization of China and India. As these two economies continue to power ahead, they will require a lot of commodities over the coming years.

Metals and energy will be needed to build cities and food will be in great demand as the 2.4 billion Chinese and Indians acquire more wealth. It is worth noting that per-capita consumption levels in these two most populated countries are amongst the lowest in the world and expected to rise rapidly. So, even a small increment in demand will cause shockwaves in commodity prices.

In the current economic environment, where monetary inflation is rampant, every investor must take a position in commodities as a wealth reservation strategy. Now, I am not saying that you should sell all your assets and put everything in tangibles. After all, this bull-market will be punctuated with periods of correction and nothing beats a good night's sleep. How much you invest is a personal decision, but consider allocating 20-25% of your net-worth as a starting point and add when you make some profits....

^---(from url)---^

Another bit of fine expression from the good folks at DR.


OvSTrichet.#1431534/11/06; 11:48:31

968 & TC
Of course Britain will
join the EU in time:
When and if they see it
as an advantage; there-
fore all that posturing
on both sides of the
equation. But, as long
as the US is in the mili-
tary and financial leader-
ship of the world, why
should they? The Brits
are a bunch of, shall we
say, subtle, nimble, far-
thinking, unscrutable
pokerplayers and obviously
part of the Anglosaxon/
American Roundtable.
The world is being devided
into factory countries,
trading countries, Univers
Cities regions, Military
Hardware regions and Paper/
Finance Street/City; create
enough liquidity to shift
around and keep everyone in
line. If out of line, a
couple of nukes will take
care of that.
If Asia and India want to
keep their newfound (newly
bequeathed riches and long
accumulated treasures) they
will be accomodated with a
2nd ranking roundtable mem-
bership. That will leave a
certain group short; but
after all, we need scape-
Oh Ja. Cb2. Pretentious
little me is going back to
reading Abbe Barthelemi's
Travels of Anacharsis the
Younger in Greece,M.DCC.XC.
Round and round we go. Up
and away. Cheers. OvS

Ten BearsThe Global Monetary System, Gold & Oil -1971 until the future: Part 3#1431544/11/06; 13:19:39

by Julian D. W. Phillips

A good read!

USAGOLD Daily Market ReportPage Update!#1431554/11/06; 13:42:03">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

TUESDAY Market Excerpts

April 11 (from Reuters) -- Gold futures in New York backpedaled after reaching a new 25-year high on Tuesday as profit taking above $600 an ounce pressured the market. Investors have been piling into commodities, especially energy contracts and precious and base metals, as these markets continue to show strong momentum compared with lagging stocks, bonds and foreign exchange, analysts said.

Andy Montano, director at bullion dealer ScotiaMocatta in Toronto, said gold has been bolstered by lingering worries about inflation, Middle East tensions and uncertainty over the dollar's outlook.

"It's the same story... oil, Iran, Iraq, silver, currencies -- the list goes on," he said. "We were happy to see the $600 figure taken out (in spot), and what we have seen of course is a little bit of profit taking overnight and through the day today."

COMEX June gold contracts fell $2.40 to end at $599.40 after trading between $597.10 and a contract high at $608.40 -- a level last seen in January 1981.

During the choppy session, strong physical demand for gold out of Asia on Tuesday helped prop up the market on the dip in prices, according to Montano.

---(click url for full news, 24-hr newswire)---

Federal_ReservesCALL to ARMS!#1431564/11/06; 13:59:57

Last month the US Congress raised the credit limit thus avoiding a US default. This move was done with nearly
no deliberation and was not accompanied by a bi-partisan attempt to cut spending and/or raise taxes on those most able to pay. This lack of ation puts at question the resolve we have to put the country on a sound fiscal status. At the same time or government The net worth of the nation is now falling. Only the rich globalist elites are prospering.

At some point the borrowing binge has to be reversed or we will suffer drastic consequences which will sink our nation and our children into bondage.

The media is ignoring the issue for the most part, as it ignores so many others. Nothing is being done to save us. No one in any responsible leadership position is lifting a finger to make the changes we need.

Write your Congressman and Senator and complain. Tell them to protect our borders, and to put us back on sound financial ground! It's time to leave IRAQ and the ME as well. Its up to us now to make one final attempt to save the nation from bankruptcy and doom!

TownCrierPanic Selling Sends Saudi Index Diving; Investors Push Gold Past $600 #1431574/11/06; 14:10:40

JEDDAH, Saudi Arabia,
April 11--The Saudi stock market dived 8.3 percent yesterday in panic selling following Sunday's suspension of two dealers by the Capital Market Authority for manipulating the stocks of three companies...

The decline was the sharpest by any Gulf Arab market since March 14 when bourses plunged across the world's biggest oil-exporting region.

Faisal H. Alsayrafi, president and CEO of Financial Transaction House, told Arab News, "Whenever traders are caught in illegal activities, the followers of those traders panic. This in turn affects the market either positively or negatively. This is what happened today (Monday). The reaction was negative."

The Banking Index dropped 3,677.44 points or 7.98 percent as shares of all listed banks declined yesterday...

The Industrial Index closed 3,266.58 points or 8.22 percent lower...

The Insurance Index plunged 9.90 percent...

SYDNEY, Australia, April 11-- Gold hit $600 an ounce for the first time since 1980 and copper stormed to a new record of just below $6,000 a ton on Tuesday, as jittery investors chased higher profits than available elsewhere.

According to Reuters, as oil surged towards $69 a barrel, investment funds hungry for higher profits flocked to gold, considered a hedge against uncertainties in troubled times.

The precious metal, which has gained 16 percent this year and about 41 percent in the past 12 months, touched $603 an ounce--its highest since December 1980.

"We're there mate, we've done it," said Darren Heathcote, head of trading at N M Rothschild in Sydney.

Investors have turned to surging commodities markets for investment alternatives to stocks, bonds and foreign exchange, where returns have not been as good.

Worries about inflation, Middle East tensions and uncertainties over the U.S. dollar's outlook also helped the precious metal, which has doubled its price in the past four years, to climb further.

^---(from url)---^

Also of note, at this link: Trans-Asian Railway Project Making Headway

JAKARTA, Indonesia, April 11--A planned trans-Asian railway network to connect 28 countries took a step forward that was first drafted in Bangkok last year.

The railway network will stretch almost 81,000 kilometers (50,000 miles) and from Southeast Asia to Central Asia...

The agreement "provides a new impetus for regional development," ... and identifies internationally important routes to serve the transport needs of member countries and will provide regional connections as well as links to Europe...

The agreement will play a catalytic role in defining a common vision, coordinating programs of action and, in collaboration with international financial institutions...

...member countries have already started identifying "dry port" stations that would have functions similar to sea ports.

"These dry ports can also spread the benefit of globalization and create employment opportunities for the local population."


Mate, here deep in the heart of EurAsia do you think they'll forever be using the U.S. dollar as their primary means of monetary conveyance? Don't count on it.


Ten BearsBlack Gold and 21st Century Monetarism#1431584/11/06; 16:41:50

by Andrew McKillop


Interest rates are hiked, by monetarists, with the firm belief they counter inflation and come after inflation. They in fact come before, cause and intensify inflation, but no amount of Nobel economics prize rhetoric will work. Monetarism is an age-old dogma, and needs no facts and figures.

In normal logic the US dollar should be completely worthless, but the same also applies to the Euro, the Yen or most any other money you care to name. Oil exporters have to accept these paper moneys, like you and me.

No amount of gold selling by national banks, today, will or can halt the upward rush of gold prices - or oil prices.

We can almost count down to this coming struggle. Surely, our great democratic and economic leaders will reason that all they have to do is repeat the 1980-1983 recession through cranking interest rates ever higher, showing immense courage as they watch the economy fall apart as a result. But this time around the strong money medicine is going to be harder to sell than 25 years ago - and is aso not going to work because of Peak Oil and the end of cheap energy.

otish mountainlooking for gold#1431594/11/06; 18:06:16

Hi everyone;
I have just recently returned from a trip to Venezuela and on to Margarita island for a 3 week holiday.
In the back of my mind I kept an eye out for gold in any form. The jewelery stores had very little in the way of gold jewelery, in fact one very impressive store which sold jem stones and jewelery had only one show case devoted to gold jewelery. I estimated about 2 ounces of gold in jewelery form in that store.
I had expected more gold offered although I was limited to the areas that I had visited in Caracas.
My conclusion is that we are fortunate to have access at this time to invest in gold, where as in some areas of the world this could be a dificult endeavor.

ArmageddonTo: GE - Thanks#1431604/11/06; 18:35:19

I think no matter how you measure it an ounce of gold would be in the tens of thousands of dollars for fair value. :)
mikalGreenspan reflects on high liquidity level, low interest rates#1431614/11/06; 22:43:46

Global Economy Faces Asset Price Fall- Greenspan | Reuters | Seoul - April 12, 2006
Greenspan predicts changes in the Sarbanes-Oxley accounting rules and abnormal asset prices.

SundeckBank of France sales#1431624/12/06; 04:20:26


The Bank of France said it sold 161 tons of gold in 2005, for a value of $2.30 billion, leaving it with gold reserves of 2,824 tons at the end of last year.

Sundeck: ...not saying how much they will sell in 2006.


mikalSurvey shows GFMS waking from slumber#1431634/12/06; 07:14:29

Gold's Bull Run Could Reach $850 | Chris Flood | 4/12/06
mikalCapital gold and currencies#1431644/12/06; 08:08:07 Global Monetary System: The future of gold and the devaluation of the US$ | Julian Phillips | April 11, 2006
968Nation urged to slow rise in forex reserves#1431654/12/06; 08:40:59

BEIJING, April 12 -- The country should push yuan reforms, let firms hold more foreign currency and raise gold reserves to help slow the rise in foreign exchange reserves, an influential government economist said.

The central bank might need to raise its gold reserves, which had been too low in recent years, to reflect China's status as a major trading nation, he said.
Well, well, raising goldreserves...

GoldiloxTrade Deficit numbers#1431664/12/06; 09:05:40


Then try the People's Economist's vastly simplified version:

January's deficit was $68.6 billion. That's $2.2129 billion per day.
February was smaller at $65.7 billion but there were also only 28 days. Soooo...the daily plunder was $2.3464 billion per day.

My simple conclusion: Trade Worsened, but don't listen to me - go with the happy talk!


In between the doo-doo George has stepped in over immigration (one of the more polarizing issues out and about), he has still found time to analyze the Trade Deficit release.

DruidGold & Oil - 1971 Until the Future#1431674/12/06; 09:30:20

Druid: Reads like he has spent some quality time on the trail. Enjoy the read.
mikal@Goldilox#1431684/12/06; 09:46:15

Re: "Unexpected plunge in trade gap" - Must you always be a party pooper? :)
Headline hoedown:
Fierce surge by metals sets new price records - Reuters["Fierce surge"? They'll be at a loss for words when gold really does "surge".]
Fed credibility crucial to dollar faith- Fed's Fisher - Reuters[Nothing spends like the almighty dollar?]
U.S. MBA's Mortgage Applications Index Fell 5.5% Last Week - Bloomberg
Realtors: Home Sales, Prices to Cool - AP["Cool" enough?]
11% Rise in Gas Prices Expected - Wash. Post[That's INCORRECT! Try 10.89%!]
Behind 25-Year High for Gold: Changes From Ground to Market - WSJ ($)[Big story, front page, albeit watered down.]
Skilling reminisces as memory fails him - Steffy, Houston Chronicle[What's next, a run for office?]
Why aren't stocks tumbling? - CNN/Money[I haven't a CLUE!]
Russia to supply less oil than expected - FT[So is the Gulf of Mexico.]
Market Worries Dog Retail -[Wait until the dog days if you want to see "worry".]
Airlines raise base fares sharply, still fill planes - USAToday[What? You expect us to WALK?]
U.K. Unemployment Climbs Close to a Three-Year High - Bloomberg[No stats for "underemployed" and "temp" workers.]
UK trade deficit in goods widens unexpectedly - FT[Nothing to see here either.]
Greenspan calls for stronger Asian currencies - FT[NOW you tell us, "Maestro"!]
Ready for $262 a barrel oil? - Fortune[Those thirsty ET's!]

GoldiloxPhillips article#1431694/12/06; 09:56:35

Druid, nice post.


So ‘in extremis’ it is the only money around that keeps its convertibility always. In this climate its price will rise, until we no longer price gold in currencies, but price currencies in gold itself!


About eight months ago, when window shopping for motorcycles, I noticed the new model I liked was just aout 38 oz/Au with all the bells and whistles. Now it is just under 32, with some great used bargains in the 10-20 oz range. I settled on a well-appointed used BMW for 10 oz last September.

Gold is not a only "hedge" against inflafla, but the BEST hedge against covert inflafla!

USAGOLD / Centennial Precious Metals, Inc.FREE Gold Information Packet...#1431704/12/06; 09:59:40

GoldiloxWeeing in the punch bowl#1431714/12/06; 10:02:34

@ mikal,

Well, since you ask, yes!

"Why aren't stocks tumbling? - CNN/Money [I haven't a CLUE!]"

Oh, But They Are!

DOW2000=11K=42 oz Au
DOW2006=11K=18.5 oz

Liquidity has created a bear trap for paper investors, as they "maintain" prices, but constantly lose value.

TownCrierTangible savings.#1431724/12/06; 10:09:33

Tangible security.

Yours is just a TOLL FREE phone call away... those fine folks in Denver have been assisting investors like you since 1973.



TopazGold, Bonds etc.#1431734/12/06; 11:07:52

Damocles so far this month has managed to keep his head but you get the feeling ye olde Sworde is soon to drop.
DX hasn't run into the 90's "yet" and the rest seem to be falling in line.

Silver is simply outstanding given it's full-blown paper status at this months roll-over (May) should put the Silver shorts to bed well and truly imo.

Julian Phillips has an article currently doing the rounds which focuses on the logic of super high value Gold ...well worth the reading effort for those who may be looking for some reassurance in the coming week.

We watch.

TownCrierGold in currency phase#1431744/12/06; 11:23:51

10-APR-06 LONDON ( -- Two experts say gold has begun the second phase of its bull run, a phase where the yellow metal trades as a currency.

"The second wave is where gold becomes money, gold becomes a foreign reserve and has a new credibility to it. And therefore gold starts to rise in most currencies and that is what we are seeing today" says Frank Holmes, chief executive of US Global Investors, that manages over $3 billion in funds.

While many factors drive the gold price, Holmes says there are some that are currently more prominent. Holmes points out the recent indication by some governments to hold or even increase their gold reserves.

"A lot of it has to do with exporting countries that are exporting oil and gas. Russia is the second largest exporter of energy in the world. They have to find a place for their diversification and gold plays an important part in that foreign reserve," says Holmes.

^---(from url)---^

Eugene McBurney, chairman of a mining finance investment bank, GMP Securities, also had a noteworthy soundbite:

"Back in February 2005, there was an interest rake high and you had the dollar going up and gold going down," said Mcburney, adding that in April 2005 the same thing happened. This was the first wave.

"Last week however (after another US interest rate hike), gold went up and the dollar went down," says Mcburney. "It is no longer the case that the Fed can come in and protect its currency against gold. Gold is at currency."

Your life's savings can take the form of digital, paper, or gold. Isn't the wise choice quite easy and obvious?


TownCrierFresh investment to boost future gold prices#1431754/12/06; 11:34:59

LONDON (Reuters) - Gold has tremendous scope to attract more investment that could push prices past a 1980 peak of $850/oz in the next couple of years, due to economic and geopolitical uncertainty, consultancy GFMS said on Wednesday.

"This is not a rally being driven by fundamentals. Essentially, it's being driven by the weight of money that's coming into the market from the investors," GFMS chairman Philip Klapwijk told Reuters.

"I think that flow will not cease or reverse. It will probably increase. Prices are set to go higher."

^---(from url)---^

As a store of wealth, savers are increasingly discovering the superiority of scarce, precious gold metal versus the vast quantities of paper which can be further inflated without limit.


TownCrierInvestors turn to gold as prices surge#1431764/12/06; 11:43:22

A recent surge in investor interest in gold is set to push prices of the precious metal to record highs, according to a recent survey.

The price of gold has now risen to $604 an ounce, the highest in 25 years, and the Gold Survey, carried out by precious metal consultants GFMS, suggests that the increases could be set to continue.

Within the next two years, the survey suggests, the price of gold could push past the record level of $850 an ounce, set in 1980.

"Levels safely over $600 are now in our sights and further hefty gains over the next year or two are quite possible," said Philip Klapwijk, GFMS chairman.

"In the right circumstances, the 1980 high of $850 could even be taken out."

Mr Klapwijk added that the recent trend was in sharp contrast to past attitudes to gold investment.

"Overall, the apparent 'anti-gold' sentiment within the official sector community that had grown during the 1990s seems to be moderating, if not fading away," he said.

^---(from url)---^

Five short years into gold's resurgence, a majority of investors still haven't been aroused from their long slumber. It has only just begun.


Goldilox1980 high#1431774/12/06; 12:12:13

I see so much reference to the 1980 high of $850/oz, which seems to me to be merely a "psychological" benchmark.

It really is no more accurate a measuring point than DOW 11K, which we've seen has very different "values" in different periods of time.

To really "take out" the 1980 high, we would also need to take out the numeraire measured by REAL inflation since that time. Some have suggested more like $1650.

While most of these movements do not happen "overnight", increasing volatility may likely bring us some $50+/- days as world tensions continue to heat up. Thirty dollar per month swings will seem very "stable" by comparison.

It shouldn't be long before the difference between $500 and $600 seems miniscule.

arbyhQuestion concerning trade imbalance#1431784/12/06; 12:13:16

My question for the board concerning trade imbalances is this:
When I, and a million other Americans, go into Walmart and pay full price retail for a shiny piece of crap from China we have paid all costs and profits. So everyone should be paid in full based on what we paid.
Now as I understand it the transaction gets consolidated at the International Settlements Bank, which I believe is the same as what is referred to as the Import / Export Bank, and they then say one country has a surplus and the other a deficit. The question is: If all of us paid full retail...who pocketed the difference and who owes the money? Not the consumer...they paid full retail price.

It reminds me of the BS in annual Soc Sev surplus theft by the govt. They steal our money surplus and then we one day will be forced to pay ourselves back.

TownCrierRussian subsoil law set for debate#1431794/12/06; 12:36:03

12th April 2006 -- The Russian parliament is to debate new laws surrounding the oil, gas and minerals industries within the next month, it has emerged.

Resources minister Yuri Trutnev announced yesterday that the Duma would soon be discussing the details of the subsoil law, which, it is hoped, will spark investment in some of Russia's natural resources.

...Originally the law had been due for debate last year, but Mr Trutnev's efforts to ensure the changes do not open the door for overseas aggrandisement of domestic resources has meant delays.

Resources considered as "strategic" – ones which need to be preserved as a matter of national importance due to their scale – include the vast gold deposit Sukhoi Log...

Like the decision to declassify state secrets concerning the release of statistical information on the country's resources – including pgms – this has proved a lengthy and incremental process.

^---(from url)---^

As gold gains strategic prominence, I'd rather have my gold investment in a metallic form that is already safely in-hand rather than as a mere share in a company's cashflow stream as tries to extract it profitably from sovereign soils anywhere in the world.

It comes down to understanding the difference between means and ends. Seen from a teleological vantagepoint, on the road of life actualized gold ownership is a goodly step ahead and beyond the lagging pursuit and position of money.


mikal@Goldilox#1431804/12/06; 12:42:01

Good points. Re: "To really "take out" the 1980 high, we would also need to take out the numeraire measured by REAL inflation since that time. Some have suggested more like $1650."
James Sinclair gives that number as a target "pulling from the front" but I don't recall inflation as his reason. Most inflation-adjusted estimates I've seen for the 1980 POG high come in around $2200- $2400 and are beginning to appear in the mainstream media.
"While most of these movements do not happen "overnight", increasing volatility may likely bring us some $50+/- days as world tensions continue to heat up. Thirty dollar per month swings will seem very "stable" by comparison."
Maybe such "volatility" will be a flash in the pan on the way to revaluation and relative price stability. I wouldn't want to be tempted to "day trade" it that's for sure, unless someone was holding my hand all the way.

Flatliner@trade imbalance#1431814/12/06; 13:23:58

arbyh, FWIW, I'll take a stab at this, but try to keep it really simple. The answer might be in how you view the situation. Sure, on a personal level, everyone is paid in full just like you say. But, you must extend the personal point of view up to the level of the economy (country level). There you'll see that countries are borrowing and selling between themselves. If one borrows more then it sells there is a deficit. If one sells more then it borrows, there is a surplus. When trade between countries does not balance out you get a wealth transference into the country that maintains the surplus. As the surplus grows, that country gains more buying power and they usually buy things up around the world. If they buy enough things, the surplus no longer exists – you end up back in balance.

Also, when you look at what's being exchanged on the country level, it's IOUs – paper currency. That IOU entitles the holder to goods and services in the country from which it came. So, if trade is balanced between two counties, the IOUs that the US gathers that entitles the US to Chinese goods can be exchanged for equal value of US IOUs that China holds. On the open markets this value exchange can happen. When things get out of balance, IOUs start to build up in one county (surplus) and they will want to exchange them for value in the host country (wealth transference).

The only way for a country to prevent that wealth transference is to dilute the value of the IOUs. This way, when the country the holds a surplus goes to buy things in the originating country, they find that they can't buy as much. Unfortunately, this causes price inflation in the host country and it doesn't make the surplus country happy. They, effectively, get cheated out of value. In the past, foreign countries could exchange surplus currency for gold, but that was shut down years ago. If gold still backed the currency you would see gold being exported at the rate of 2+ billion per day to all foreign countries.

Meanwhile, the bankers watch all this closely. They watch surpluses and deficits because they make profit off paper. If wealth is transferring into a country, they want to be there to make loans off that extra capital and not be caught holding the currency that is falling in value. The deficit countries currency will fall in value. Oh, when countries get mad at each other they also go to war. Bankers love to finance both sides of wars. So, an imbalance is very important to a banker because they know that in time they are going to make a lot of money helping the countries settle the dispute.

USAGOLD Daily Market ReportPage Update!#1431824/12/06; 14:03:57">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

WEDNESDAY Market Excerts

April 12 (from MarketWatch) -- The front-month contract for gold futures closed above the $600-an-ounce level Wednesday for only the second time in the last quarter century after Iran pledged to push ahead with industrial-scale uranium enrichment, prompting safe-haven buying from metals investors.

COMEX June gold futures closed up $1.90 at $601.30.

The U.S. said Iran is "moving in the wrong direction" with its nuclear program after the Tehran government announced that it has successfully enriched uranium at one of its facilities.

President Mahmoud Ahmadinejad said the country has become a nuclear power and will push ahead with large-scale enrichment. He reiterated that Iran is aiming to generate power for peaceful, civilian use and is not planning to develop nuclear weapons.

Meanwhile, independent precious metals research group GFMS said developments across the Middle East are one factor that may help gold post further strong gains in the next two years -- and even surpass the 1980 high of $850 an ounce.

In its Gold Survey 2006, released Wednesday, GFMS said it expects the metal to find support in a slowing U.S. economy, weaker dollar and inflationary pressures.

After its gains of the past year, the metal has also become an attractive investment target for institutional investors, making it an asset class in its own right as well as an inflation hedge.

GFMS believes this phenomenon is still at its early stages but would not be surprised to see longer-term investors like pension funds enter the commodities market, propelling gold prices even higher.

"You're playing with fire if you ignore the weight of money argument, looking ahead into 2006," said Klapwijk. "We'd only need to see a tiny slice of mainstream assets diverted into gold, which comparatively is a pretty small market, and the price could really take off."

There is little doubt that the $850 level will be reached "within the next few years as trillions of dollars float around looking for refuge," said Peter Spina, an analyst at GoldSeek.

---(click url for full news, 24-hr newswire)---

Boilermaker@arbyh Trade Imbalance#1431834/12/06; 17:02:16

Surprise! You (and I) will pay for that "shiny crap" from China twice or more. First you pay at your friendly WalMart store and then again when your $ based assets go into the crapper because no one will accept them. Do the math and convert your $ to real stuff to avoid the double/triple billing.
jenikaGold is still a gift. #1431844/12/06; 19:10:18

I thought this calculator for inflation would be worth posting to the forum - try putting in todays price of gold and seeing what it was worth in 1980.
Even though this inflation calculator is based on disputable government figures it still gives you a good idea of how much value our money has lost and how cheap gold is.
Gold is still a gift at todays price.

Ten BearsMogambo sez:#1431854/12/06; 21:19:16

The Mogambo Guru at the top of his game... a good one!

****Mogambo sez: As I found out the hard way, l ife is hard when you are stupid and it is even harder when you act stupid. And if you want a definition of "acting stupid", then how about betting all your money and all your retirement that now, after it has failed every time in history, a government with the power to create unlimited money and credit (this time courtesy of a criminally compliant Supreme Court and Federal Reserve) will NOT destroy the currency and the economy by over-issuing money? Want to take that bet?

If, on the other hand, if you want to bet that this time, too, like all the other times in history, the over-issuance of money will destroy the currency and the economy, then buy gold

Ten Bearsand here's the Bob in the line up.(paragraph #3, Mogambo's rant)#1431864/12/06; 22:08:07

Bob Chapman
SundeckChinese investors eye gold for better returns#1431874/13/06; 04:23:58


Chinese banks are expanding the options they offer wealthy depositors in the face of greater competition from foreign banks. Next month, the Bank of China plans to launch its newest product, dollar-denominated certificates linked to the price of gold.

More individual investment in paper gold and other such tools in theory means that more Chinese banks might have to buy gold, to limit their exposure.

Sundeck: is this going to work? Buy a "paper ounce", gamble on gold going up and get redeemed in dollars??? You betcha...banks will be getting their cut somehow... More paper gambling...why not just buy the real stuff?


SundeckMarcFaber interviewed#1431884/13/06; 04:39:59


Q: Can the dollar fall alone, or would it be the dominos effect, which would take down other markets?

A: In my opinion, the dollar will depreciate mostly against the gold. In the long run, what you will see is the standard of living in America will decline very significantly compared to the standard of living in Asia. And the stock market capitalization of US, which is now 52% of the world's stock market capitalization, which will decline to somewhere between 20% and 30% and the Asian stock market capitalization will rise to between 20% and 30%, possibly 50% of the world.

Sundeck: Worth a quick scan

GoldiloxFSO Market Wrap#1431894/13/06; 06:59:10


Interest Rates Rising

Two weeks ago right after the Fed meeting I noted a comment by Bill Gross of PIMCO who rightly stated that the employment figures would indicate the near-term direction for interest rates. He said strong employment data would signal a further sell-off in bonds ushering in more increases by the Federal Reserve. Bond traders are pricing-in at least two more increases from the Fed to 5.25%. The curve is still flat with the two-year yield currently standing at 4.90%, five-year at 4.89% and the ten-year at 4.96%. Treasury yields should be around 5.4% to 5.5% by the end of June if all goes as expected.

As I continue writing, overall market volatility remains low with the S&P 500 index higher by three points or 0.27% at 1,290, the dollar index higher by 0.13% at 89.27, and the ten-year note lower by 0.19% at 105 27/32. Gold is $1.50 higher (0.25%) at $600.90 an ounce and crude oil is lower by $0.33 (0.48%) at $68.65 a barrel. I list all of the percentages so you can see stocks, bonds, gold and the dollar are all very quiet. This is absolutely NORMAL for a day when the U.S. Treasury is busy borrowing more money. The government is auctioning $8 billion of ten-year TIPS this afternoon and Freddie Mac already sold $10 billion of their debt this morning.

Bill Gross says to watch employment data to see what the Fed is going to do, but I would like to add that we should be watching the dollar very closely. If the dollar begins to sink notably lower, the Fed will be forced to continue raising interest rates. Overall commodity prices have been going through the roof! Global consumption of commodities is still sky high and looks to continue increasing. The Fed says they are inflation watch which should be considered synonymous to defending the strength of the dollar. The U.S. dollar is the "tool of control" on the global scene…they can't afford to let it go into freefall. If foreign governments continue with announcements of divesting dollars for euros, gold and other currencies, bonds will sell-off, but stocks should get worse. If necessary, stock prices will be sacrificed to save a cratering bond market. I expect interest rates to continue rising as much as is required to keep the dollar showing some semblance of stability.

A final note on interest rates has the Mortgage Bankers Association reporting 30-year fixed rate mortgages higher by one basis point to 6.50% and the average one-year ARM also higher by one basis point at 5.97%. From one year ago, the one-year ARM is higher by 1.69%. The MBA also reported their application index fell 5.5% (down 15.2% from a year ago) with the purchase index lower by 4.7% and the refinance index lower by 6.6% from the prior week. The purchase index is 12.0% lower from a year ago and the re-fi index is down 19.3% year over year. You can see why the Fed is between a rock and a hard spot. They need to defend the dollar, but risk caving-in the economy (home prices, consumer spending and the stock markets) if they go too far! The price of gold suggests they will still err on the side of inflation to keep the current fiat money system in place.

Global Inflation Watch

It's fascinating to hear all the Fed-speak about inflation being "well contained." The only thing they really care about is inflation EXPECTATIONS being well contained. They don't want everyone to freak-out with higher prices because it means they are not doing their job. Rising prices are the consequence of inflating the supply of money! Inflation is here loud and clear. Gasoline prices moved higher again today by nearly 2% at 2.09 a gallon as crude presses against the $70 mark again. We should be expecting $3.00 gasoline at the pumps for the summer driving season. The oil companies are in hog-heaven! Look at the five-year increases in oil, silver, copper and the commodity index. A picture is worth a thousand words. From just a few years ago, prices are three to five times higher, but you wouldn't know it based on the inflation data with the core rate rising at roughly 2%.

DruidGoldilox (4/13/06; 06:59:10MT - msg#: 143189)#1431904/13/06; 07:21:37

Druid: G, good read, the dollar is definitely being devalued alright but not in the traditional sense. Another words, not against any fiat currency but against pretty much all commodities albeit in a controlled type of fashion. I believe that it is the continued pricing of oil in dollars that is determining the rate at which the dollar is being devalued versus the interest rate cycle. It will be interesting to see how this plays out when the Fed reverses course.
USAGOLD / Centennial Precious Metals, Inc.Proven Reliability, Longevity, Quality and Professionalism ---- Invest with Confidence!!#1431914/13/06; 07:40:44

TownCrierOne Century later, still going very strong and picking up speed!#1431924/13/06; 08:17:51

Not a shabby little performance by a group of players originally marked forevermore with such unfitting and belittling labels as 20 lira, 10 rubles, 20 francs, 5 dollars, and 5 pesos...

Well beyond those humble beginnings, each golden disc pictured here (see url) is currently valued by the market in a range between $125 and $250. Hundreds upon hundreds speaks soothingly and confidently of a comfortable retirement upon a steady sea driven onward beneath sails full of purchasing power.

Those who put themselves adrift upon a sea of the paper equivalents (printed notes of 20 lira, 10 roubles, 5 pesos etc) didn't fare nearly as well, and, with sails luffing, to this day they still must paddle like a crazy-man just to stay within view of the fleet of golden mariners chasing leisurely the horizon.


TownCrierVery fine words from the IMF's managing director#1431934/13/06; 08:55:28

In an under-appreciated year-end speech entitled "Encouraging Stable Financial Markets", Mr. Rodrigo de Rato y Figaredo offered the following guidance:

"In recent years there have been fundamental changes in global financial markets. Non-bank financial institutions have grown enormously, largely at the expense of banks. Institutional investors are playing an increasingly important role in capital markets. Financial market innovation and integration are proceeding rapidly. And huge transfers of risk are taking place, not only between countries but also from financial institutions to other sectors.
"The globalization of financial markets has great potential benefits for economies, but also poses considerable challenges. There are implications for the private sector, for governments and for international financial institutions, all of which have responsibilities in promoting and protecting global financial stability. ..."

"At the global level, monetary policy responsibilities are less clear, and too often governments point fingers at other countries to justify their own inaction. As a result, while some tentative steps have been taken, much more needs to be done. This is important because global imbalances have grown larger, and there is a real risk of a disorderly adjustment. It is in everyone's interest to take action. ..."

"Monitoring the global financial system is perhaps the most difficult task for governments and for the IMF. It is essential to understand how global assets are allocated, and how to detect potential problems that could lead to financial crises."

"... there is also an area where governments and the private sector have a shared responsibility. As pay-as-you-go pension systems diminish in importance and defined benefit pension plans become rarer, individuals are becoming responsible for their own financial futures in a new way.
"Therefore it has become essential for individual savers to diversify their asset holdings just as it always has for corporations. An education on financial markets, therefore, especially on the trade-off between risk and return, becomes even more important.
"But providing this education is not only the responsibility of governments.
"If they are wise, private companies will recognize that they also have a responsibility to educate their clients.
"If they do not, then losses are likely to be met not just with disappointment but with anger, and such anger will inevitably translate into pressure for public intervention."

^---(from url)---^

Since 1973, Michael Kosares and Centennial Precious Metals have been among the proactive companies leading the way toward a better-educated public and clientele in regard to building a self-reliant retirement savings program built upon prudent tangible diversification rather than mindlessly exuberant paper-chasing investment strategies.

And with the launch of USAGOLD online in the late 1990's, that important message is being conveyed to people now more than ever.

Why the unflagging effort in this particular field of endeavor? Again, in the words of Rodrigo de Rato:

"If they are wise, private companies will recognize that they also have a responsibility to educate..."


GoldiloxIndia's bank to raise it's key short-term rate#1431944/13/06; 10:20:51


MUMBAI: India's central bank will probably raise its key short-term rate next week, the second increase in three months, as it seeks to contain inflationary pressure in a robust economy, a Reuters poll showed on Wednesday.

The Reserve Bank of India, which gives its annual monetary policy statement next Tuesday, will raise the reverse repo rate — the rate at which it absorbs funds from banks — by 25 basis points to 5.75 percent, 10 out of 15 economists forecast. It has raised this rate four times since October 2004, taking it to 5.5 percent in January when it cited rising property, equity and gold prices as areas of concern.

"The policy in January outlined concerns on rising asset prices and those concerns remain and that is why we expect the central bank to raise rates," Sanjeet Singh, head of research at ICICI Securities, said. The central bank warned again in March that excessive increases in asset prices and credit had emerged as major challenges that could lead to financial instability.

India's stock market has risen 24 percent since the start of January, adding to the 42 percent gain last year. Profits from the stock market have driven property prices up by more than a third in major cities, analysts say, leading to fears of an asset bubble among policy makers.

Eight participants in the poll expected a 25-basis-point rise in the repo rate, but seven thought it would stay at 6.50 percent. This is the rate at which the central bank lends overnight funds to banks.

Three economists expected the central bank to raise the bank rate, or the rate used by banks to price long-term loans, by 25 basis points from a three-decade low of 6 percent. The central bank has also expressed concern over high global oil prices and their possible second-round impact on inflation in an economy growing at 8 percent over the past three years.

Last year, global oil prices rose by more than a third, but India raised domestic fuel prices by only 15 percent. This year prices have risen more than 10 percent and none of that has been passed on to consumers, but policy makers are likely to factor in a possible increase in prices by domestic refiners. Wholesale price inflation — the most widely followed gauge of inflation in India — was just 3.96 percent in late March. "

"Inflationary expectations are higher given rising asset prices and oil," said Shuchita Mehta, chief India economist at Standard Chartered Bank. "Credit to industry is also growing at a robust pace and we expect them to raise short-term rates." Bank loans to industry have been growing at an annual rate of more than 30 percent as more and more companies borrow funds to feed robust domestic demand for goods and services.

Economists say rising US interest rates could also be a factor in the Indian central bank's decision. Although the Reserve Bank places more emphasis on domestic factors like inflation and growth when framing monetary policy, rising US rates increase the pressure on it to tighten as narrowing rate differentials could affect capital inflows and the rupee.


Repeat the mantra:

There is no inflation, there is no inflation . . .

note: simply "competition for investment capital"

mikalFed flailing about in sea of uncertainty#1431954/13/06; 13:27:28

'Revolutionary' Fed Study Has Economists Rethinking Forecasts
April 13 (Bloomberg) - Snippit: "A new Federal Reserve study has shaken economists' forecasts by suggesting the U.S. economy will have to decelerate much more over the next decade than most now expect.
The study, to be published in July, finds that the retirement of the Baby Boom generation will force far-reaching adjustments in the way the economy works. Forecasts for everything from growth and employment to corporate profits and interest rates will have to be recast."

WhitewaterwomanAnd there she blows...#1431964/13/06; 14:27:40

...POO shooting up above $70, and now above $71 a barrel. Heard someone say a month ago that when it hit $66 we'd hit Iran. Is $70 an important trigger?
GoldiloxDevaluation#1431974/13/06; 16:43:31

@ Druid,

"Bugger thy neighbor's currency" is alive and well, but gold is "out-buggering" them ALL!

melda laureMore like the Island of Laputa#1431984/13/06; 17:42:24

Perhas you should say, falling down the abyss in a desperate fight to the bottom, the Currencies are slashing at each other.

I wont wait for the splash, that water is cold and stinky, not a bath I would want.

melda laureRattus Rattus#1431994/13/06; 18:00:30

Somehow I wonder if Mr Rato isn't speaking in euphemism. {free translation, albeit less noble sounding.}

"At the global level, monetary policy responsibilities are {lost in a fog of moral hazard} , and too often governments point fingers at other countries to {hide their own complicity and general abdication of moral duty and leadership]. As a result, while some tentative steps have been taken, much more needs to be done {to safely bamboozle the masses}. This is important because global imbalances have grown larger, and there is a real risk of a {general conflagration inimical to the interests of TPTB}}. It is in everyone's interest to {inflate with extreme prejudice}. ..."

Yes, education: that which happens when the barn door is closed after the cow has exited. Somehow, "diversification" into the paper provided by these innovative "institutions" just doesn't seem to be all that appealing.

USAGOLD Daily Market ReportPage Update!#1432004/13/06; 18:36:38">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

THURSDAY Market Excerpts

Gold eases in pre-holiday session, up $7 for week

April 13 (from MarketWatch) -- Gold futures closed lower Thursday as a pullback in energy prices eased inflation fears and encouraged investors to lock in gains, but the contract still finished out the holiday-shortened week with a more than $7 gain.

COMEX June contracts closed down $1.20 at $600.10, coming back from a low of $594.

Regular trading for metals futures won't resume until Monday because of the Easter holiday.

Crude futures also recovered from early lows hit amid a nearly eight-year high in U.S. crude-oil inventories. "While there still remains a strong link between oil and gold prices, at this moment any market interpretation of high U.S. inventory levels is being overshadowed by the tense standoff with Iran," said Kitco's investment analyst Jon Nadler. "Many surveyed energy analysts feel that current supplies notwithstanding, the likelihood of $80, $90 or even $100 oil should not be completely discounted," he added.

"To call today's easing in gold prices as strictly oil-related (as opposed to a round of profit taking) or to assume that the Iranian factor has been shelved (far from it), and therefore to abandon one's gold positions would make for unpleasant surprises down the road."

---(see url for full news, 24-hr newswire)---

The Invisible HandIMF: Globalization will NOT continue to limit inflation#1432014/13/06; 19:04:50

IMF: Globalization Can't Be Relied On
The international lending organization said that while globalization has provided some brake on inflation in recent years, it cannot be relied upon to do so in the future.

mikalComex gold#1432034/13/06; 19:26:48

DJ MARKET TALK: More Short Covering Expected In Comex Gold
| Darlene Ross | April 13, 2006
"With an early close on Friday, Comex gold is set to continue it's move higher..."

LimitUpCHANGE#1432044/13/06; 19:35:21

We have 6 retired generals (with gold on their hats) who don't like the way things are going. What this country needs is an oldfashioned military junta to straighten things out.
MKMikal: Boomer retirement#1432064/13/06; 19:41:42

Let me refine that post, because somehow I think it's important:

As an aside, I think the retirement of the baby boomers is greatly exaggerated. Fortunes have been made and lost attempting to predict the future habits of this group. The one thing I can tell you for certain (given the history) is that the future of the boomers will come as a surprise to the sociologists who try to quantify this group's prodigious achievements. The concept of retirement is something that came out of the Roosevelt socialist onslaught on the thinking of Americans, when a tired and worn out industrial class "needed" to be led to pasture (with the government's blessing). This is not something you find traditionally in the upper classes of Europe (and the United States) in the period before Roosevelt. My point is that I don't know too many boomers in the flow of things who are truly considering "retirement" in the traditional sense. Health allowing, something more of a hybrid is what most are considering. You are not going to see the group that created the modern world, as we know it, simply fade into the woodwork on some pre-planned rota. This group was never easily satisfied; it won't be easily satisfied now. I do not believe that retirement in the 21st century has anything to do with "wearing out" or "wearing thin" but more a lifestyle choice. Most boomers still feel themselves in the mode of creation. The driving thought is that no matter what this group has done (each in in his or her individual field); much remains to be done. Politicians, economists -- take note.

mikalMarket analyst allows scope for manipulation#1432074/13/06; 20:12:37

Juiced Numbers- How the Government Gets the Statistics it Wants, Markets Get Manipulated, and Citizens Get Deluded - and Worse - David French - FMNN - April 13, 2006
Wordy synopsis of many familiar topics and personalities.

Gandalf the WhiteMK (4/13/06; 19:41:42MT - msg#: 143206)#1432084/13/06; 20:31:17


As a "Septuagenarian" I fully agree with your concept of the work ethics of the older population in the US of A !
I can't stop working right now as I have a number of Patents to file on in the near future.
I consider 40 hours a week to be a fun time period, showing the "youngsters" how to do things and try to think outside the "BOX".
(and with a hoard of YELLOW, I have nothing to worry about)

mikal@MK#1432094/13/06; 20:57:57

Well said and inspiring. "Much remains to be done" indeed.
Our generation is NOT "satisfied". The hunger grows and has been passed to the next generation as well, here and abroad.
One of the reasons "the retirement of the baby boomers has been greatly exagerrated" is the establishment media diversion and disinformation. For example, everyday I pass on posting the majority of financial items I read due to shallowness and especially diversion. Just a minute ago I saw a promising story on today's IMF warning that high oil prices may cause serious unforeseen problems etc. But it quickly descended into an otherwise hypothetical argument that deficits and inflation are largely due to higher oil(in "the past two years") and the recycling of petroleum profits back into the country.
Those of us "vocationally retired", must continue to find wholesome and healthy ways to enjoy life, keep mentally and physically active and find personal fulfillment, simplicity, and stay "young at heart".
"You're as young as you feel". Our generation includes some great achievers, musicians that won't quit, lifelong professionals and free-thinking philosophers like yourself, Randy and many others. And to make this short I left out husbands, fathers, wives, mothers, nurses, farmers and countless other dual-roles, multi-roles and invaluable and unsung occupations.

ToolieThinking out loud#1432104/13/06; 21:29:28

So, if the globalization process pauses and retrenches, how will things unfold?
Isn't the most likely outcome a retreat into regional blocs, where wage and cultural differences are less pronounced. Where the major powers of each region try to focus their hegemony into strategic territories.

Asia is going to be a very interesting place with Russia, China and India all vying for power. A super Balkans? Poor Japan?

What of the US, who has bet so heavily on a seamless transition to a global love-in? Once the US defaults on treasuries what will become of all the physical investment made in Asia? De facto nationalization? Does an already wounded dollar duplicate that productive capacity in Mexico, further stuffing excess manufacturing capacity into a world in recession?

Once the US defaults (or revalues) treasuries, is that lift off for gold?
Maybe Another has some thoughts along these lines. It's been too long since I've visited those pages anyway.

OvSToolie#1432114/13/06; 21:47:54

A seamless transition
to a global love-in..

Great. Love it. Thanx.

GoldiloxEaster Baskets#1432124/13/06; 22:20:21

Those gold and silver eggs in our Easter baskets are shining bright in Asia tonight.
tejbearGoldilox #143197#1432134/13/06; 23:35:33


"Gold out buggering them all…"

Don't get me wrong, I like gold.

Wait, in the last month, silver is wayyyyy up past gold.

I would recommend that starts selling silver and gold….. & expand the forum....

The Bear

GoldiloxOut-buggering#1432144/14/06; 00:06:08

@ tejbear,

My "out-buggering" remark was about currencies, not metals.

Most other metals have outperformed gold recently, but I wouldn't presume that a gold dealer should start selling Copper or Rhodium to ride the commodities rush. It's just a different business.

Silver has done well, but shipping ten thousand dollars worth of gold coins is a completely different task than shipping a similar value of silver.

Remember, IBM was never was successful in the PC market, just as Apple was not much competition in Enterprise computing.

GoldiloxPeeking over the fence#1432154/14/06; 00:29:10

Asian gold is at $599.30 and Silver at $12.90 as I type this.

We'll see what London has to offer.

TownCrierGoldilox#1432164/14/06; 00:46:56

You'll be weary and disappointed if you stay up late specifically looking for any sort of action out of London today.

May I suggest some light reading instead?


specie-manSilver Shipping#1432174/14/06; 02:14:21

Goldilox wrote:
Silver has done well, but shipping ten thousand dollars worth of gold coins is a completely different task than shipping a similar value of silver.

Not really. A full bag ($1000 face value) of 90% silver coins is now worth roughly $8,000. And over $10,000 worth can be shippied in a single USPS Flat-Rate Priority Mail box. Registered and fully-insured, it can be sent for about $25. I know, I've done it.

USAGOLD / Centennial Precious Metals, Inc.SECOND EDITION -- Written for Today's Market#1432194/14/06; 05:43:09">Gold Investing - Second Edition
GoldiloxShipping#1432204/14/06; 07:21:49

@ specie-man,

My shipping experiences (no corp account) have not been so fortunate of late, especially with fuel surcharges. Some of the motorcycle parts I have shipped were nearly double that amount.

At 46:1, shipping (and storing) gold and silver are still quite different.

But as gold:silver was 60:1 recently, your point is noted.

Goldilox"light reading"#1432214/14/06; 07:24:26

@ TC,

Went to sleep right after the 11:30PM post (my time). Tried some "light reading" over at, but the brain-eye coordination was not cooperating.

USAGOLD / Centennial Precious Metals, Inc.Yes, we have service for the small investor, too...#1432234/14/06; 11:12:02">gold ownership starter kit
TownCrierPrecious metals are going through the roof#1432244/14/06; 11:30:10

United Press International

Apr. 14, 2006 -- The soaring price of gold and other precious metals took a breather Friday, but only because most markets were closed for the Good Friday holiday.

Gold settled Thursday at $602.10 per ounce, and silver was pennies from $13 per ounce.

Platinum ended the week at $1,089 per ounce, and copper set a record high Thursday at $2.8155 per pound, its 12th straight trading day to achieve such a distinction.

The current bull market in precious metals appears to have nowhere to go but up. The World Gold Council predicts demand will rise threefold...

^---(from url)---^

A flow of bonds can't provide meaningful balance for international trade, but gold metal can. A stealthy (attempting for smoothness) transition is underway among key players. If you wait for such time as this paradigm shift becomes obvious to the public, it will be too late for you to make significant acquisition of cheap metal to ride the wave of revaluation.


TownCrierBig Turning Point Ahead for the Dollar#1432254/14/06; 11:55:29

(report excerpts) -- Unsurprisingly, with all of the major markets closed for Good Friday, trading has been very quiet especially since many European markets are also closed Monday. We are at an important crossroad in many of the currency pairs and next week could prove to be the major turning point that everyone has been waiting for.

...we are near the apex of major triangle formations, which means that breakouts are imminent.

The Treasury International Capital flow report due on Monday could set the tone for the week. With the February trade deficit reported at $65.5 billion and the TIC forecast at $60 billion for the same month, it looks like we may be setting up for another deficiency.

If so, this would bring back the concerns that we talked about in yesterday's fundamentals, which is that with rising long term yields attracting Japanese investment money back into the country, and the Chinese using their money to invest in more tangible assets, we will have the two largest buyers of dollar denominated investments fading to the background.

Japanese Yen -- The Japanese Yen lost ground against all of the majors currencies over the past week as the Bank of Japan continues to signal their reluctance to raise interest rates. Last night's release of the Bank of Japan minutes shows that the central bank sees inflation as well contained and expects growth to continue to rebound, but they still want to keep rates accommodative for some time. They are probably getting a bit uneasy with the rise in long term yields, which have gradually been heading towards 2.00 percent.

^---(from url)---^

Looking beyond short-term liquidity, some clever politicians and central bankers have second-guessed the wisdom of settling on IOUs for the mid- and long-term when gold can be had as a viable and more systemically-stable alternative.

To reiterate, you will get only the faintest hints of dots, but you won't connect them, and you won't know this is happening with certainty until it is too late -- the low-hanging fruit having been harvested already by others.

Therefore, rather than take such a thing on faith, you would do well to acquire gold for whatever other reasons among the multitudes that resonate most appropriate to you.


The Invisible Handeconomic collapse - choose your scenario#1432264/14/06; 13:23:21

Palestinian minister sees economic collapse
SNIPRAMALLAH — Finance Minister Omar Abdul Razek yesterday predicted economic collapse in the Palestinian territories within months unless Arab governments stepped in to stave off financial crisis.

Choose Your Own Crisis Scenario
Today's financial markets are suffering massive imbalances almost certain to lead to some sort of disaster. Where will it hit?

The Invisible HandCan you spell "crash" in Arab?#1432274/14/06; 13:36:09

But [the regulator, the Saudi Capital Markets Authority (CMA)] must prevent a flight of speculative capital that could trigger a crash and ruin millions of Saudis who borrowed heavily to invest in stocks - a scenario that could have grave political as well as economic consequences.
But in Saudi Arabia the volume of speculative capital is huge, swollen by record oil revenues. Managers of massive private portfolios, often acting in concert, have enormous clout in a market that has little institutional capital.

contrarianCollapse#1432284/14/06; 17:19:58

Interesting thoughts from LaRouche...I thought about posting last night but deferred until I saw today's musings on collapse. He might be a little extreme sometimes, but there might be some gems among the rough.


The 'Post-Greenspan' Era
First of all, what we're faced with immediately, you should understand, is an impending general collapse of the world monetary-financial system. It's nothing different, in a sense, than what I've been warning about as inevitable in this process. But we have reached a critical point, where, for example in Mexico, you may have a total collapse of the system before the Presidential elections. It may not happen at that time, but that potential is there, and it's developing very rapidly.

Since 1987, the international monetary-financial system has depended upon a gigantic fraud. And the fraud is, that the collapse of the U.S. stock market in 1987, October '87—what happened then—was essentially the same thing as the 1929 collapse. So what happened at that point: Alan Greenspan, who was now about to replace Paul Volcker at the Federal Reserve System, told Volcker, "Wait, I'm going to fix this." What he did is, he legalized a form of transaction, which would have been considered criminal fraud in many cases. For example, Enron is a criminal fraud. And the entire world monetary system has been operating on the basis of a gigantic criminal fraud. This is called "hedge funds." It's called "financial derivatives." The whole thing is one gigantic bubble, which would embarrass John Law.

The bubble goes in the order of magnitude of quadrillions of dollars equivalent, in a world where you're measuring total product in terms of less than $100 trillion. And therefore, the crash of this system would be the biggest financial crash in all history, not only in magnitude, but as a percentile of total listed assets.

There's no way, in a financial crash, that the debts which are outstanding from financial derivatives can be bailed out. That does not mean that the economies have to crash, because, what you do if you have a true nation-state, the government takes over the banking and financial system in order to maintain the levels of employment, payment of pensions, and so forth. Then the government must create credit to launch legitimate growth. And that's the great issue before us.

This system is coming down. The entire world monetary system, as presently defined, is at some early time, about to collapse. The collapse could be stopped in one way, by having governments put the monetary system into receivership. In other words, the governments would put the financial system into bankruptcy reorganization. And the state would act on a constitutional provision of the General Welfare, which is, for example, the fundamental law of the U.S. Federal Constitution.

Now what's happened is, the gigantic inflation, which was launched under the tenure of Alan Greenspan, this credit has now reached the point that a general collapse of this system is now inevitable. With the change in the occupation of the Federal Reserve System to replace Alan Greenspan by the new Chairman Bernanke, a decision was made among leading central bankers, that the growth of the bubble must be stopped. This means that the financial derivatives market, the bubble, is to be stopped. But this means, by stopping the bubble, you're going to cause it to collapse.

The center of the problem is, that you have what's called the "carry-trade." People have been borrowing yen at almost zero interest rates; the people who borrow the yen, convert this into dollars, thus increasing the flow of dollars in the world market—actually being issued by Japan, not by the United States. Those who borrow in this way, then go into other markets, and loan the money they borrowed in higher-priced markets! This credit is then used to buy up whole industries with hostile takeovers. The real estate bubbles around the world are an example of this.

What has happened by virtue of this decision to stop the growth of the bubble, means that essentially, the carry-trade is going to collapse. For example, Iceland has just gone bankrupt; New Zealand; Australia's ready. Most countries are ready to go bankrupt. The central banking systems of Western and Central Europe are already bankrupt. The major banks of the United States are bankrupt, hopelessly so. The banks of South and Central America are generally bankrupt, already. That is, if you tried to match the obligations with resources, you couldn't do it.

So, what we're going to see, is that, unless there's a change, some innovation which changes this, the three months before the election here in Mexico—April, May, and June—will see a general collapse in the world financial markets. It will hit the Americas as well. So therefore, in this country, you have to face the fact of an incoming, threatened shock. And unless there's a change in policy, this will increase over the three months to come.

We're having an election in November, a general election, a mid-term election, so that by the end of the year, we'll either be headed for dictatorship in the United States, or we'll be rid of this mess in Washington, and we will either have begun to deal with the crisis which is coming on now, or we'll be in a world financial crisis beyond anything that any of you can imagine.

So, what we're getting today, again, you're getting groups of financial interests, predatory financial interests, who are using mercenary armies around a program of "the enemy is Islam." And this whole mess was organized by major intelligence services associated with these financial interests. You look at, for example, you look at the question of the Napoleonic Wars: Napoleon's image was based on this. The Napoleonic image was used for creating the Nazis, same thing.

So, we had this recurrence of the attempt to destroy modern European civilization, for a return to a modern parody of the Roman Empire, in which the Roman Empire was constantly at wars, killing people, setting up puppet governments, and so forth. Such an empire could not succeed today, but failing to defeat it, could mean the end of civilization for some time to come....

melda laure(No Subject)#1432294/14/06; 17:22:30

Sir 'Lox, I must admit that I was wrong about transmutation; I wont elaborate, but since you play in 'new physics' you will know what I mean. I had forgotten about the odd properties of tempic waves (which is inexcusable) and also about the unusual abilities of legumes and chickens. Those who listen, can learn from strange sources.

When this will have an effect on the gold market is anybody's guess, Evans field theory isn't in print in a form that is easily absorbed save by experts at this time, and all the other technologies are just as invisible in the news. It depends on when we all grow up.

Fraught with risk is the future. The US bond markets should have blown up by now. Yet, were the US and Europe to have a second "black death" event, there could conceivably be plenty of oil to go around for several decades. Too much now depends on the degree to which massive "intervention" is considered "on the table" by the men behind the green curtain. That gold and international trade will again have a real relationship is merely a dream. I have other dreams too; not nice ones. Children should grow into their manhood, else they will spend their adult years in a prison. The days of banging our spoons on our high chair and bawling loudly for treats must give way to more sober manners, yet to continue the conceit, the behavior of our president and the president of Iran are not promising.

melda lauremy 2 cents worth.#1432304/14/06; 17:31:43

So, sir TC, two cents are only worth a bit more than a copper penny.

What's a CuNi nickle worth? The mint ought to be striking 5 and 10$ coins.

TheJuniorMinerMusings#1432314/14/06; 19:46:14

With my purchase of one of the fine collection of Mexican coins, I have finally hit a milestone.

It has taken me since the fall of 03 to reach my 20th onz of gold purchased from our fine host here at Centenial precious metals. I certainly want to complement my dealings with Jonathan as I really enjoy my conversations. Buying steadily at the dips caused by tremendous dondrafts in the futures market has created wonderful opportunities. Seems harder and harder to see this hapening.

Jonathan once ask me why I buy 100oz silver bars and I commented that it was for my future. Well he never asked me about gold but I would have given the same answer. By the way I paid .15 an oz for shipping from our host which is a lot less as a percentage than now, but still, shipping the stuff is not very expensive.

The day of the 2 cent penney is about over. When I really started saving them I could get 1 in 3 in change. Now it's 1 in 5. Got a cup full from someone at work today and was disappointed in finding less than 30. Wait till its a 3 cent penney. Heck, even the zinc ones are getting pricy. Don't think we can afford to keep making the things unless we go to steel.

I follow the mining industry closely and IMO we will be very lucky to have an increase in any metal production let alone gold. We do have some good mines coming along but it reminds me of the energy industry in that the majors aren't and the little guys are. Political problems, permit problems and depletion problems are plaguing the industry.
Even tires and equipment are getting hard to get. Costs are rising rapidly.

The largest copper mine (and second largest gold mine) Grassberg, is experiencing tremendous local strife. This is going on all over the globe. Don't count on a lot of new supply just beacuse of the price. The best current known gold property is under a glacier.

Gold, maybe the Central banks and the Comex boys,
a little more up their sleeve.
It seems obvious that they are slipping...

Be wary of fiat money and the central banks,
paper we may have to leave.
Don't miss out on what others are missing...


physicalmanPennies,Nickels, Gold, Silver, and Shipping#1432324/14/06; 21:22:10

Hey again folks, been back to working a 100+ hours a week and we got weathered out so have been catching up on my internet reading the last 36 hours.
I wonder what a nickel cost the us gubmint to make now that nickel and copper are so high. i've been buying 1-4 boxes a week of nickels for the last 3 years so got a bunch of them. Was shocked to see what the 2004 peace medal p-mint nickels were going for this fall so i sold 940 rolls of them recently ( i never look a gift horse in the mouth). I've also never turned in a penny to the bank for over 25 years and have bought many collections and hordes from estates and pawn-brokers, am wondering if it is worth seperating the pre-82's out yet. And i paid 75 cents a roll for wheaties for awhile and am wondering if the copper value is higher than that now?
Might have made a mistake a few weeks ago when i sold 6k oz. of silver for 2 new cars, silver is up 2.70 an oz. since then so i lost the value of a nice used 4wd pickup on the table by selling early. Even though i have lots of au and ag let that be a lesson to everyone. This market has so much farther to go if you measure your stash in fiat-paper values that when you feel a corrective phase coming on,-stop and think, this market for gold and silver is still so deep in its infancy stage that it will boggle the mind. I was around for the 70's and the 1980 peak and there is so much more dollar liquidty available now that it will astound the most ardent believers, such as myself as to what peak values will be at the market top. Also remember the market top may not have a dollar that exists that will buy any commodities or precious metals. But your oz. of au or ag. will still be an oz., it never devalues or loses weight except by direct theft.
Been lots of insightful posts and commentary lately (keep it up) As an occasional poster and lurker, i would like to put out a call for some of our long-time posters to come back again and grace our halls with their insightful wisdom, such as ANOTHER, FOA, ARISTOTLE, BELGIAN and many others whose names are on the tip of my tonque. So much has changed, accelerated in the last few months that i, and probably many otrhers would love to hear your updated opinions on many subjects.

physicalman(No Subject)#1432334/14/06; 21:26:15

On shipping. Once had 127 100 oz. bars shipped by regular freight on a pallet from tenn. to va. for 236 bucks. Seller wrapped em in black plastic, no problems, came out to less than 2 cents an oz. shipping. Don't think i would take that risk again though!

The Invisible HandDrastic measures needed to avoid economic collapse#1432344/14/06; 22:58:25

April 9, 2006
Right now we basically owe our economic soul to oil-producing countries because we have been so woefully negligent since the 1973 oil embargo. We had 30 years to develop a real energy policy, and now that crunch time is here, the Europeans are walking all over us. After Sept. 11, whose perpetrators were practically 100 percent Saudi, we attacked Iraq – may as well attack Argentina in terms of strict cause and effect.

So 9/11 was perpetrated by Saudis?
Is that the reason why the Saudi stock-market will collapse?
Punishment (by Allah?) for 9/11?

This was my post on the Saudi stock-market crash:
The Invisible Hand (4/14/06; 13:36:09MT - msg#: 143227)
Can you spell "crash" in Arab?

The Invisible HandHide the truth!#1432354/14/06; 23:06:11

Is the world safe from economic collapse?
Zawya - Apr 13 1:56 AM
Is the world safe from economic collapse

This article is temporarily not available. Please try again later.

The Invisible HandThis must be a coincidence - Panes et circenses!#1432364/14/06; 23:17:28

Iran President Again Lashes Out at Israel
AP - 2 hours, 4 minutes ago
TEHRAN, Iran - The president of Iran again lashed out at Israel on Friday and said it was "heading toward annihilation," just days after Tehran raised fears about its nuclear activities by saying it successfully enriched uranium for the first time.
Panes et circenses! Give the Western sheeple bread and games and they'll be happy.
Nay, they will blame the imminent economic collapse on Iran, Saudi-Arabia, Iraq, Argentina and Belgium.
Is Belgium no more part of the West?

mikal@Physicalman, TheJuniorminer#1432374/14/06; 23:37:54

Congratulations on your stashes. Keep on truckin', the markets are and you ain't seen nuthin'...
Headline holidaze:
Dow Jones Newswires - China To Formally Launch Interbank Forex Swap Mkt Apr 24
Dow Jones Newswires- MARKET TALK: China To Launch Forex Swap Mkt Monday
Dow Jones Newswires - Vietnam Starts First Copper Production Project - Official
Dow Jones Newswires - Mutual Interest: There are good reasons to own gold, but don't get caught up in speculation
Dow Jones Newswires - Taiwan's Lien Calls For Closer Economic Ties With China
WSJ - Treasury Yield Passes 5% Mark
The Himalayan Times - Business - Wales Scotland Ireland joint bid for Euro
Dow Jones Newswires - Vietnam, Guangxi eye faster construction of economic corridors, better trade
People's Daily - China's forex reserves surge again - Autos - Manila: Retail sales in Asia-Pacific to weaken
Gulf Daily News - Business Report: China forex reserves world's biggest
Dow Jones Newswires - Treasury Rate Signals Burdens for Borrowers[Usury is a burden at any rate. And interest rate sensitive derivatives do exist, we repeat, DO...]
Star-News, North Carolina - MARKET TALK: Gold Set For Big Move Back Over $600- Analyst
WSJ - Currency Trading: Dlr Off Thu Despite Strong Data[Just a fluke... there's NO INFLATION.]
Dow Jones Newswires - China Calls For New Economic Measures
CBS 11, Texas - MarketWatch' - Economic patriots' imperil EU's drive for free market[Bubble, bubble, peril and trouble...]
Bloomberg - Asia(AMM) - Copper, brass boost US nonferrous export[And Ft. Knox could boost too- prove me wrong!]
International Herald Tribune - Green and gold are colours for new trusts

Michael Kosares: Gold Forecast for 2006
January 1 (USAGOLD) - Snippit- "2006 could be a breakout year. My $525 2005 forecast hinged on G-8 programmed dollar weakness. Instead we had the dollar and gold going in the same direction for most of the year. The obvious question is "If gold managed to rise over 25% with the dollar appreciating, what might it do should the dollar resume its bear market?" ...Given the fact that none of the disturbing trends (the twin deficits, etc) driving gold demand has been addressed, it all adds up to what could be a breakout year for gold in 2006. As is the case in any breakout, the top will be difficult to call. If I were to make a wild guess..."
When Michael feels compelled to actually "make a wild guess", it's time to watch out. What more could you ask for?

The Invisible HandSurprise, Surprise!#1432384/15/06; 02:04:19

There's speculation that Saddam Hussein's pursuit of a euro-based oil bourse may have contributed to his downfall. Such a plan would have undermined the American dominated market, in which two bourses, London's International Petroleum Exchange and New York's Nymex are both dominated by American oil companies.
Iran has reportedly pursued a similar path and the bourse was supposed to start in March of this year. The significance of this has been debated, although not in any major media outlet (surprise, surprise.)
The author, Ali Moosavi, is a Detroit area freelance writer. Reuel S. Amdur and M. Kay Siblani contributed to this report.
Mother, where do babies come from?

The Invisible HandNot so surprising.#1432394/15/06; 02:18:33

Central Coast area sees $3 gas
Certain areas of Southern California have already broken the $3-a-gallon threshold, and it appears that all areas will be above $3 as soon as next week.
If We the People face gas price increases, wouldn't it be sensible or reasonable to try to have good relations with oil producing Tehran?

Who told you We the People are reasonable or sensible?

It's all about patriotism
(love, support and defense (What defense?) of one's country, says Webster's)
and nothing else.
So that's what Rummie is doing in Afghanistan, Iraq, and soon in Iran, upholding the name or the reputation of the US of A. (Maybe the economic collapse arrives before Rummie's men arrive in Iran? Let's hope it. )
Last Updated: Friday, 14 April 2006, 07:56 GMT 08:56 UK
Pressure is growing on US Defence Secretary Donald Rumsfeld, with more retired generals calling for him to resign over the Iraq war
But [Gen Peter Pace, chairman of the Joint Chiefs of Staff] said people "should never question the dedication, the PATRIOTISM and the work ethic" of Mr Rumsfeld.

Who invented guv'mint? Perhaps the same person who invented the wheel? But the wheel can be useful.

The Invisible HandFT: any day now the dollar will go down the tube#1432404/15/06; 02:35:21

There is a mystery in all this, which relates to gold. The price of gold has doubled since early 2002, when central banks were still happily selling off stocks of gold into the open market. Even events in India cannot explain an annual growth rate of almost 20 per cent in the gold price.

The gloom-mongers have an easy answer. Gold is through the roof because any day now the dollar will go down the tube. Yet there are no confirming signs of anxiety about the dollar. Indeed, the inflow of private capital to the US exceeded $1,000bn last year and the year before, and has surpassed the outflow of American capital to foreign economies every year since 1996.
Or did I confuse the FT with gloom-morgers?

SundeckGold surge to all-time high of Rs 9000 per 10 grams #1432414/15/06; 04:42:13


New Delhi, April. 15 (PTI): A stampede of jewellery fabricators and stockist buying in both precious metals - gold and silver zoomed past all barricades on the bullion market today to set new high records at Rs 9000 per ten gram and Rs 19,300 per kilo respectively.


Sundeck: Now that is a headline you don't see every day of the least in the past...may not be so uncommon in the near future 'though...'


The Invisible HandIcelandic bank-system collapsed in February 2006 due to carry-trade#1432424/15/06; 04:48:46

Here's the website from Solidarité et Progrès.
On March 21, 2006, it carried an article which started by saying that the Icelandic banking system collapsed in February 2006 because of a carry trade whereby "investors" were borrowing euros to buy bonds issued by Icelandic banks.
The article continues with a section headed "Crash on the Arab stock-markets" arguing that shares are being sold in panic since the end of February.

Yestersday, I said that the crash had not yet started. Interesting times.

The Invisible Hand (4/14/06; 13:36:09MT - msg#: 143227)
Can you spell "crash" in Arab?
But [the regulator, the Saudi Capital Markets Authority (CMA)] must prevent a flight of speculative capital that could trigger a crash and ruin millions of Saudis who borrowed heavily to invest in stocks - a scenario that could have grave political as well as economic consequences.
But in Saudi Arabia the volume of speculative capital is huge, swollen by record oil revenues. Managers of massive private portfolios, often acting in concert, have enormous clout in a market that has little institutional capital.


BRÈVES / 21 MARS 2006

Les trois grandes banques islandaises - Kaupthing, Landsbanki Islands et Islandsbanki - ont joué un rôle important sur le flanc islandais du « carry trade ». Les investisseurs empruntaient à des taux faibles, notamment dans la zone euro, pour investir l’argent dans les obligations islandaises (comme celles émises par ces trois banques de Reykjavic) offrant un taux de rémunération supérieur à 10 %.
Krach sur les marchés boursiers arabes
La bulle boursière des « marchés émergents » est en passe d’éclater . La première vague a été marquée par le krach islandais au mois de février, suivi de ses répercussions internationales. Début mars, une nouvelle vague a frappé les actions, obligations et devises partout en Amérique latine et en Afrique, et notamment en Russie et en Turquie.
Depuis la mi-mars, les bulles d’actifs sont touchées à leur tour dans les pays arabes où une bulle géante s’est accumulée ces dernières années. En plus des liquidités injectées par les « carry traders » internationaux, les prix élevés du pétrole ont fait augmenter la quantité de pétrodollars.
Ainsi la capitalisation des sept Bourses des pays du Golfe s’est multipliée par neuf en cinq ans, passant de 119 milliards de dollars en 2000 à 1140 milliards fin 2005 - dont 650 milliards rien qu’en 2005 ! Pendant la même période, l’indice boursier de Dubai est monté de 125 %, celui de l’Arabie Séoudite de 97 % et celui de l’Egypte de 162 %.
Depuis fin février cependant, on assiste à des ventes panique.

The Invisible HandSundeck's maths#1432434/15/06; 05:23:49
9000 rupee = $ 200 = 10 gram

1 gram = $ 20
1 ounce = 28.35 grams

1 ounce =$ 20 X 28.35 = $ 567

That was 10 gram, 9000 rupee
One kilo is one hundred times 10 gram. Price only double 10 grams 19,000 ?

Let's try to find the error.
19,000 rupee = $ 428.89 = 1000 grams
not possible ten grams was 1 gram = $ 20.
In the kilo, the gram cannot be worth double.
I don't know how to find the error.
But I am probably in error myself.
Do we have per kilo price which amounts to twice $ 567 per ounce?
For me that's okay. My Maple Leafs are worth around $ 1,134.

The Invisible HandI can't open this URL#1432444/15/06; 05:31:33

India : Gold Prices, Gold Price Charts, plus Gold & Precious Metal ...
Gold prices and gold price charts, precious metal news and research for the Indian market.

The Invisible Handcorrection#1432454/15/06; 05:57:14

1 troy (!!!) ounce of gold would be 31.11 gram

1 gram = $ 20

1 ounce = $ 20 X 31.11 = $ 622.2

That's better!

USAGOLD / Centennial Precious Metals, Inc.A world of gold at your fingertips...#1432464/15/06; 07:37:37">gold -- a global calling card
TownCrierGold mine's value drops#1432474/15/06; 08:11:26

Anchorage Daily News, April 15, 2006

Alaska's largest gold mine has shrunk dramatically in value.

Kinross Gold Corp., owner of the Fort Knox Mine near Fairbanks, wrote down the open-pit mine's book value by $142 million last year.

Company executives said higher operating costs, mostly due to rising fuel and electricity prices, forced it to move two satellite deposits, True North and Gil, from reserve to resource status. That means the company has no plans to mine them anytime soon.

...Because of these decisions, Kinross lowered Fort Knox's book value to $113 million in 2005. The write-down hit Kinross' bottom line hard. The company ended the year with a $216 million loss...

...Fort Knox is considered a "mature" mine, meaning it's nearing the end of its life. Production began in 1996 and is expected to wrap up in 2010 or 2011...

Fort Knox is forecast to produce 311,379 ounces this year, down from 329,320 ounces last year.

In 2001, its highest production year, Fort Knox yielded 411,220 ounces. It has declined every year since.

^---(see url for full article)---^

If you take the time to read this article, and if you can understand how a gold mine can crap out even as the price of gold itself is reaching for historically high price levels, then you are truly light-years ahead of your fellow investing public who often by stocks on a wing and a prayer.

What many novice investors haven't figured out is when you put your investment cash into a mining operation, you ultimately own shares in a company with nothing to do except stand around an empty hole and blink in the mid-day sun.

By contrast, if you were instead to have exchanged your money for the liberated gold metal in the first place, you would have locked in the present and future purchasing power of a physical asset which is utterly indestructible throughout the far reaches of time.

Mines and their companies fade away, but gold is forever. Shouldn't your savings enjoy the security of the latter?


Clink!@TC#1432484/15/06; 08:54:33

Well, at least there's one Fort Knox which is marked to market. I wonder when the other one will be audited ....

TownCrierClink!, the Knoxes#1432494/15/06; 15:39:46

Thanks for reading.

Very likely a day will come when the latter Knox you referred to is also MTM (instead of the present $42/oz abomination), and it's probably a safe bet that upon such a time, its fate will then be soon after to become as empty as the former Knox mentioned in the article.

I have no practical difficulty in imagining the Treasury mobilizing the vaulted gold in the not-too-distant future to help mitigate the hyperinflationary effects of a dollar that's lost international reserve status, and then, in the name of "homeland security", subsequently putting strict controls on the production and disposition of all gold newly mined on U.S. sovereign turf as a means to restock its supply of this strategic reserve asset.

Hard to imagine any shareholders getting outsized dividends under such a scenario. Some bags are just too empty to be holding for the want of paper money. In my view it's better to have simply bought the gold outright and up front -- its value is not on thin ice as is the "paper" dollar or the potentially at-risk shares.


makcumka@ TIH - Sundeck's Math#1432504/15/06; 17:17:00

Sundeck's quote:

" <...> gold and silver zoomed past all barricades on the bullion market today to set new high records at Rs 9000 per ten gram and Rs 19,300 per kilo respectively".

19300 Rs = $428.89 = 1000 grams

Therefore, $0.42889 = 1 gram

Therefore, $0.42889 * 31.11 (grams per troy oz) = $13.34 = pretty close to the spot of silver.

Mystery solved, otherwise I was getting ready to hop on the plane to Delhi to pick up some more gold at bargain prices of 19,300 Rs per kilo. Talk about CHEAP!

The Invisible HandLetter from...Detroit#1432514/15/06; 18:59:15,,1754476,00.html

What's good for the US is no good for GM
That could be enough to tip [GM] into Chapter 11 itself just as the rest of the US picks up steam and that old adage would be well and truly dead.

Here's why Britain and the US of A are picking up steam and why what's good for the US of A (such as attacking Iran) is no good for GM.,,2087-2136638,00.html

Iran suicide bombers ‘ready to hit Britain’
IRAN has formed battalions of suicide bombers to strike at British and American targets if the nation's nuclear sites are attacked. According to Iranian officials, 40,000 trained suicide bombers are ready for action.

The Invisible HandYes, makcumka, Indian dizzy silver heights#1432524/15/06; 19:15:16

NEW DELHI, APRIL 15: Gold and silver prices zoomed past all records buoyed by demand from jewellers and stockists Saturday, setting new highs of Rs 9,000 per ten grams and Rs 19,300 per kilo respectively on the bullion market.
The domestic market, which normally moves on overseas signals, turned bullish as the yellow metal in London touched 25-year high levels around $604 an ounce after crude oil prices surged to over $71 a barrel.
Silver ready sky-rocketed by Rs 800 to Rs 19,800 per kg and weekly-based delivery by Rs 310 to Rs 19,110 per kg. These levels were never seen before.
In line with the firm trend, silver coins jacked up by Rs 200 to dizzy heights.

The Invisible HandGolden Eastern#1432534/15/06; 21:16:01

In his homily the Pope, wearing gold and white vestments, said the resurrection of Christ could not be considered a thing of the past because it was still sending a message of hope to people.
"We grasp hold of it, we grasp hold of the risen Lord, and we know that he holds us firmly even when our hands grow weak," he said before thousands of people in the basilica.
"If we live in this way, we transform the world. It is a formula contrary to all ideologies of violence, it is a program opposed to corruption and the desire for power and possession," he said.

Quixote"...40,000 trained suicide bombers are ready for action..."#1432544/15/06; 21:16:51

by definition of suicide they can't be very well trained at all. nobody available for a mission could have any actual track record of successful experience. it's more like having 40,000 rookies and fanatical idiots. either way, it doesn't speak comfort for either side.
The Invisible HandThe decline and fall of Europe – not of the US of A #1432554/15/06; 21:28:02

The decline and fall of Europe – and that includes Great Britain
IN Decline and Fall of the Roman Empire, Edward Gibbon famously chronicled the slow and tragic collapse of a great civilisation. After Italy's vote for paralysis last week and France's abject surrender to striking students over a modest attempt at economic liberalisation, it must be merely a matter of time before Europe will require a new Gibbon to pen the story of its own gradual demise towards economic, military and cultural obscurity.

The Invisible HandBBC Breaking News - this becomes interesting#1432564/16/06; 00:41:29
Ex-Nato commander Gen Wesley Clark, who ran for the Democrat presidential nomination in 2004, backed calls for Mr Rumsfeld to resign
Chad has threatened to stop oil production next week if it does not immediately receive several months' worth of oil revenues.

The Invisible HandThis makes it even more interesting!#1432574/16/06; 00:46:58

Blair refuses to back Iran strike
TONY Blair has told George Bush that Britain cannot offer military support to any strike on Iran, regardless of whether the move wins the backing of the international community, government sources claimed yesterday.
"Another" beer please!

The Invisible HandAnd one for the gentleman at the backl#1432584/16/06; 00:50:23

Two former US National Security Coucil experts warned Sunday that military action against Iran could be more damaging to US interests than the current struggle in Iraq has been, according to AFP.

The Invisible HandAll that glitters...#1432594/16/06; 03:34:56

is indeed gold!

Skyrocketing prices of the yellow metal have sent both jewellers and sellers into a tizzy.
The chances of gold prices falling soon is as high as India losing to Bangladesh in a test match or the Sensex going back to its 7000 days.

9689/11 - gold#1432604/16/06; 04:22:54

This superb documentary ends with a story about the (Kuwaiti) gold stored in the WTC towers...
The Invisible HandWTC gold can't be opened#1432614/16/06; 05:15:46

St Google gave me this article of the day before yesterday (Good Friday) , but I can't open it.

Painwashing" the Moussaoui jury and us
Online Journal, FL - Apr 14, 2006
... board of Securacom, the company that did security for the WTC from the ... line, it was really more like $160 billion in gold that had been stored under the ...

Who knows what those three final dots are?
Perhaps those 160 were stored not under the WTC but under Another building.

The Invisible HandAnother advocate of the gold standard#1432624/16/06; 05:23:28

[Moussaoui] said … that he hated America because it had abandoned the gold standard.

The Invisible HandMore from Google - Re: Online Journal, FL article#1432634/16/06; 05:35:29

"Painwashing" the Moussaoui jury and us
Online Journal, FL - Apr 14, 2006
... Bottom line, it was really more like $160 billion in gold that had been stored under the Towers by various banks and corporations. ...

The Invisible HandBelgian reviens, ils sont fous!#1432644/16/06; 09:05:53

(come back they are nuts)
Kom terug, ze zijn zot!

Too much economic growth? This is already a non-sequitur. But this becomes hilarious when the same guy, Hu Jintao, goes to meet Bill Gates. He wants Bill to stop growth or what?
China worried over pace of growth
Chinese President Hu Jintao has expressed concern over the rapid speed of the country's economic development.
He said the Chinese economy had grown by more than 10% in the past year, but that such high growth was not an official target.
He added the government wanted to pay more attention to improving the lives of ordinary people. There are also fears that fast economic growth could impact on the country's resources and the environment
China president at Gates house, not White House
SEATTLE--The first lavish dinner of China President Hu Jintao's historic visit to the United States next week will be in a big, secure house in Washington where the host is one of the world's most powerful men.

The Invisible HandThe lunatics are not only in Beijing, also in San Francisco#1432654/16/06; 09:18:14

A new way to invest in gold and other commodities
Until recently, ... [e]ven if you knew which way commodity prices were headed, there was little you as an individual investor could have done to act on your hunches.
Perhaps you could have invested in companies such as oil drillers or gold mines that in theory benefit from rising commodity prices. But all too often, other factors prevailed, and those companies' stock prices didn't move as much as the underlying commodity. Buying futures options on the commodities themselves was another possibility, but that was risky business requiring your full-time attention.
However, new avenues for commodities investing are emerging in the form of exchange-traded funds.
Jama, the San Francisco Chronicle is saying that until recently … even if you knew which way commodity prices were headed, there was little you as an individual investor could have done to act on your hunches.

The Invisible HandThe Online Journal, FL - article I couldn't open earlier#1432664/16/06; 09:30:17

And then there was the gold, baby, the gold. Follow the shiny stuff. Was this mentioned?

Rudy Giuliani claimed they reclaimed some $230 million in gold from the rubble of the Towers. Later, an abandoned 10-wheel delivery truck and a fleet of cars were discovered in a tunnel between Buildings 4 and 5, running it seemed from the soon to tumble South Tower, the second hit. Bottom line, it was really more like $160 billion in gold that had been stored under the Towers by various banks and corporations. So, where did the gold go after it left the 10-wheel truck? Perhaps it was the ultimate pay-off for the high-level government participants and patsies?

slingshotSearch for the Renaisance#1432674/16/06; 09:40:25

During the short period of time, as the looking glass began to reveal the next image, the four Knights seeing the glass for the first time, sat in silence. The clarity was spellbounding.
Sir M.K. was in deep thought. How could this have happen with no word? It has been close to a year with no war and Therroth had been defeated, dispersing the Dark Army. His eyes were looking down at the table when they all heard.
" M.K., So nice to see you. It has been a long time"
It was as if the person was standing there in the room with them.

Sir M.K., looked into the glass expecting a figure to match the voice, but it was passage way like a tunnel. Desending and soon there was a flickering light in the distance.

"Who are you?", asked Sir M.K. "Why M.K. I am surprized you do not recognise my voice. Haven been your guest for so long", the voice answered.

The image in the glass drew closer to the light.

The speed at which the image desended increased and suddenly a cave lit by torchlight, filled the mirror.

"Welcome, to my home", the voice said proudly.

" Where are you?" asked Sir M.K.

"HERE!" and with that a flame rose from a pool of black water and illunated the roof of the cave and to Amasement of the Knights also brightened the Council Chamber.

The flame died down and a Man in dark clothes stepped out of the shadows. He had a pale face and was small in statured. Sir M.K. knew who he was.

"Are you taking good care of MY CASTLE" he asked

"Something is wrong" whispered Sir M.K. to the other Knights.

"What's that you said?" the man asked.

"It is fine" answered Sir M.K.

"Good! I plan to retake all that was taken from me by you soon. A pause and the man appeared to move closer.
" Where is Gandalf? I do not see him amoungst you?"

Sir M.K. did not reply.

"Tell him Therroth would like to see him again and Oh yes, I almost forgot to tell you I have a new name. My name is Cyrus. You will come to know it well"

Standing there, Cyrus motion with his hand to someone outside the image. A small creature walk slowly up to Cyrus , then turned so he could be seen. He was not an Orc or Gobblin. He was stout. His head was that of a wolf with plenty of teeth protruding from his snout. His body was hairy but strength could be seen in his muscular build.
He wore battle gear made of leather and mail that fit him tight and two swords attached to his wide belt.

" My new friend" said Cyrus. He leaned over and said a few words to the creature. In a few seconds the creature drew his weapons from their sheaths. His eyes sparkled in the torchlight. He began to run towards the seated Knights.
The creature ran faster and faster as to catch a runaway wagon or horse. His image faded asending in the tunnel passage,only his eyes could be seen moving back and forth in ever increasing motion.
Then there was light. The creature leaped into the air. A snow covered moutain behind him and a road leading up to the entrance. The creature was getting bigger and closer.
The mirror began to bow and as one would enter through a door the creature passed through the glass as if it was air and landed on the Oaken Table of Yore. With remarkable balance the creature steadyed himself. Holding his two swords at his side he gazed at the Knights and snarled.


SmeagolAch! That's what happens...#1432684/16/06; 11:26:14

"The mirror began to bow and as one would enter through a door the creature passed through the glass as if it was air and landed on the Oaken Table of Yore. With remarkable balance the creature steadyed himself. Holding his two swords at his side he gazed at the Knights and snarled."

...when one messes with tricksy magic-mirrors! Not good, O no precious, not at all! =8-0


mikal@Slingshot#1432694/16/06; 13:21:18

Very entertaining and no doubt cautionary.
There must be an appropriate name for this "creature". Because you cannot teach an old dog new tricks, a rechristened one may learn not to put the bite on people.
Nothing demeaning like 'pookie' though.

TownCrierGold prices may shoot up to Rs 10,000 per ten gm#1432704/16/06; 13:34:14

New Delhi, Apr 16 (UNI) The weakening of the US dollar in the international market, coupled with the rising gold demand, may lead to a hike in gold prices to Rs 10,000 per ten gm in the next 5-6 months, an Associated Chambers of Commerce and Industry in India (ASSOCHAM) study has said.

The faith of the international community in the US economy has started diminishing so much that the investors now prefer to accumulate gold rather than the dollar...

The gold demand world over is constantly shooting up and has neared at levels around 4,000 tonnes per annum against its supplies which remains stagnant at about 2,250 tonnes per annum.

The gap between supply and demand of the yellow metal will continue to widen as no significant discoveries in the major gold producing countries have been hit while its consuming pattern will always enlarge because it will always be deemed to be a real currency world over...

Commodities, in general, and precious metals, in particular, are in motion and will continue rallying until acted by a credible global monetary force. There is no [more] powerful rocket fuel for a gold bull market than a collapsing US dollar...

^---(from url)---^

Assuming flat currency exchange rates over this 5-6 month period, a gold price rise to Rs 10,000 per ten gram corresponds with $690 per ounce. Of course, if the dollar weakens against the Indian currency during that time, it would translate into an even higher price denominated in dollars.


TownCrierSouth Africa: Gold's Run#1432714/16/06; 14:25:22

Business Day (Johannesburg)
EDITORIAL -- Gold at $600 an ounce seemed far-fetched not so long ago. Now, with the metal having gone past the $600 mark earlier this week, we're being told $850 could be in sight.

And it doesn't come from extremist gold bugs either, but from the respected precious metals research group GFMS. At the release of its annual gold survey yesterday, GFMS predicted gold might show "hefty gains" in coming years because of the weight of money coming into the market from investors.

The dollar gold price has gained more than 40% in the past year and 16% this year alone. The weaker dollar and US inflation concerns, as well as geopolitical tensions, have helped to drive up investor appetite for gold as an alternative investment.

GFMS sees no slackening off of investment demand for the metal. And it is not alone in its bullishness. JPMorgan, for example, suggested early this year that gold could hit $800 because supply, of newly mined or existing gold, is unlikely to grow fast enough...

And that's not all good news for SA's economy... That's because the more gold rises, the more the rand strengthens -- the correlation between gold and the rand over the past six months has been 90%, Bloomberg estimates. If that were to continue, an $800 gold price could be a nightmare scenario for SA. Gold exports would benefit, but they are not much more than one-eighth of SA's exports. Meanwhile, a rand that much stronger could wreak havoc on SA's other exports as well as on manufacturers competing with imported goods.

So we'd better hope that gold doesn't run too fast -- or, more importantly, that the rand doesn't follow it upwards.

^---(from url)---^

There's no iron-clad consequence that the rand necessarily need get any stronger than the South African Reserve Bank chooses. Such is the power of emission. Maybe all the more reason the SARB should give serious thought to Robert Sleeper's speech last year pointing the way to MTM gold reserves. If the Bank deems that inflationary (depreciationary) emission of new (liability) currency is appropriate, they should at least make sure in the finished equation that the counterposing assets on the balance sheet are literally as good as gold.


slingshotSir Mikal#1432724/16/06; 14:29:22

You must have a crystal ball. Just a few points.

Magdelena's Mirror. In the first veiwing Magdelena told Sir M.K. and the Knights that the Images would not harm them. They could only see and not communicate. Sir M.K. sensed that this time, things were wrong. Same as the markets today. They have changed and become a new creature. We all have our own creature coming out of the darkness. Will we be prepared when it lands on our table.

Clink!Looks like someone was just waiting for the weekend to end ...#1432734/16/06; 18:24:07

POG up around $3 and POS up around 25cents straight out of the chute. I guess three days of 'roo meet will do that kind of thing ...

Golden LionheartTransparency#1432744/16/06; 19:02:08

Looking on the screen at the gold price gently climbing I had a thought............Is there anywhere on the net where I can see the number of gold contracts being traded in real time? Not a day or a week later.

I trade gold mining shares (shock horror, my secret is out!I have "outed" myself) and with these I can see the number of shares on offer, the number traded and the number of people involved etc.

With gold I am flying blind.

Maybe this is the way the big boys like it but surely they have some transparency to assist them in their trades.

Gold just hit $604............Keep the good work going in the US later!

Mr GreshamNothing like a nice Limit Up spike...#1432754/16/06; 19:46:22 render a tirade from the ex a laughable triviality...

...for we soldier on, we happy few, we "small dogs" who safely feast from the table scraps of power, we foxes who "run away, and live to fight another day."

Anyone think an "event" might be on the horizon? A discontinuity? A "set of cascading cross-defaults"? A Herstatt "Holiday"? Greenspan's gone, and the patsy's in place to take the fall...

Gandalf the WhiteJUMP SPOT, JUMP ! <;-)#1432764/16/06; 20:24:16

It looks as if the US$ is headed SOUTH as the Euro and Pound are "looking good" !
Does anyone have a real time US$ chart webpage ?
My old ones now are "private clubs" !

The Invisible HandPhilippines takes note that its dollar dependent peso could collapse#1432774/16/06; 20:56:41

The United States is relying on the huge dollar reserves held by Asian central banks and oil producing countries to finance its deficit. Without them, the US currency would lose a crucial prop and could collapse.
"The big fear is a chain reaction that would start with the external creditors of the United States, especially the central banks," said Antoine Brunet, chief economic strategy at HSBC CCF bank.
Brunet points to the recent surge in the price of gold, a traditional refuge for investors.
"It's a sign of concern about inflation and about the US external deficits," he emphasized.
The website is the one from ABS-CBN, the largest (only?)television "network" in the Philippines.

Black BladeMetals and Petroleum are higher in Asia#1432784/16/06; 22:32:16

Looks like we are on a possible "rocket ride" tonight in Asia. Should it carry through European trade then we will probably have an "interesting" day during NY trade. Spot has got his bone and tearing the place up! Note that the metals and petroleum are surging across the board (see link).

I would not be surprised to see this action carry through. The talking heads on CNBC and the ticker are screaming "higher oil and gold" (CNBC World - a much better and rational version with a balanced view rather than the US CNBC version chock full of carnival barkers). I haven't logged onto the online Bloomberg network yet, but I would not be surprised to see some excitement there as well.

- Black Blade

The Invisible HandThe China Post: Oil prices threaten economic stability#1432794/16/06; 22:32:59

Meanwhile, the United States is relying on the huge dollar reserves held by Asian central banks and oil producing countries -- nations with big current account surpluses -- to finance its deficit.
Without them, the U.S. currency would lose a crucial prop and could collapse.
High energy costs account for about half of the deepening of the U.S. deficit between 2001 and 2005, according to the IMF.
Last year the U.S. current account deficit reached a record US$804.9 billion, equivalent to 6.4 percent of Gross Domestic Product (GDP).
"The big fear is a chain reaction that would start with the external creditors of the United States, especially the central banks," said Antoine Brunet, chief economic strategy at HSBC CCF bank.
Brunet points to the recent surge in the price of gold, a traditional refuge for investors. Gold reached the 600 dollar-an-ounce mark during trading in London over the past week, its highest level for 25 years.
"It's a sign of concern about inflation and about the US external deficits," he emphasized.

Black BladePetroleum and Metals#1432804/16/06; 22:42:11

Oh yeah, the talking heads are putting most of the action on geopolitical tensions with Iran, however, there is more. The US Dollar is under threat and the Federal Reserve appears to have miscalculated by raising rates. With rising rates the housing bubble comes under threat. When the ATM (the family home) is under threat from higher rates, the housing bubble deflates - something the Fed did not count on in their quest to beef up the USD. Oh what fun.

That energy prices are soaring to new records tonight also helping hard assets along (see link). NYMEX, IPE and Brent North Sea are all higher and ready to smash through to new records. The implications for "real inflation" are obvious - definitely lock in at least a modest position in physical gold and silver.

As always, get outta debt and stay outta debt, stash enough emergency cash for several months' expenses, accumulate Gold and Silver for "portfolio insurance", and start a storage program of nonperishable food and basic necessities. We live in "interesting times".

- Black Blade

GoldiloxHousing bubble#1432814/16/06; 23:05:58


"When the ATM (the family home) is under threat from higher rates, the housing bubble deflates - something the Fed did not count on in their quest to beef up the USD."

I think you give them too much credit for benevolence in your statement.

I believe they knew, but had no other choice, and got Sir AG to really "push" ARMs to cover their "bets" in the inevitable decline.

mdgcreal time currency rate (Gandalf the White)#1432824/16/06; 23:15:57

This site does not have the dollar index per se, but it does have the euro, the pound, and with a little effort, you can find the renminbi
Gandalf the WhiteThanks Sir MDGC !!#1432834/16/06; 23:58:49

I have those too, am missing only the ol'e US$ !

Gandalf the WhiteTHIS one is not UPDATING ! #1432844/17/06; 00:00:54

Gandalf the WhiteOOPS -- "There goes another Rubber Tree Plant !"#1432854/17/06; 00:09:31

$606 is broken !
Where is Sir Gold-fly when you need him !
Keep jumping SPOT !

Black BladeNikkei Crashing#1432864/17/06; 01:04:26

The Nikkei 225 is taking it on the chin tonight and investors are scrambling. Presumably some well heeled Asian investors are grabbing some Gold in a "flight to safety". This is going to be one "interesting" night.

- Black Blade

The Invisible HandThe Tokyo lunatics#1432874/17/06; 01:44:53

"We all know both gold and silver prices are too high, but no long holders are willing to sell, while short holders were getting heavily squeezed," said Takashi Ogura, risk management section manager at Kanetsu Asset Management.

Goldiloxalt DX#1432884/17/06; 02:46:31


While not listing the cumulative FX, Netdania allows you to follow the individual currency moves in real time.

Euro +.5%
$/Yen -.25%

Not huge, but measurable.

The Invisible HandFollow the leader!#1432894/17/06; 04:03:53

The Chinese authorities say they are putting up a huge statue of Chairman Mao Zedong in Tibet.
"If you saw Atlas, the giant who holds the world on his shoulders, if you saw that he stood, blood running down his chest, his knees buckling, his arms trembling but still trying to hold the world aloft with the last of his strength, and the greater the effort the heavier the world bore down upon his shoulders--what would you tell him to do?"
"I . . . don't know. What . . . could he do? What would you tell him?"
"To shrug."

Storm op zee (Strom on the sea)
Gold storms to new 25-yr high, silver surges
Martin Wolf's economists' forum
Global imbalances
The quantity of analysis devoted to the so-called "global imbalances" is extraordinary. As is usual with economists, we have reached no conclusion. Yet what is happening is extraordinary enough to merit an attempt at least to clarify the basis of the disagreements.

USAGOLD / Centennial Precious Metals, Inc.A world of gold at your fingertips... Call for best prices!#1432904/17/06; 05:30:47">gold -- a global calling card
WhitewaterwomanAu/Ag proportions#1432914/17/06; 06:56:51

Up until a week or so ago, I was concerned that my modest physical portfolio was too heavily weighted towards gold (about 65%) versus silver. I had tried to heed the advice to go 50/50.

But now, with spot leaping and jumping so, my portfolio balance is coming in line without a single purchase in the last 3 months--gold now only 54% of it, thanks to the huge run-up in silver.


Goldendome(No Subject)#1432924/17/06; 07:20:04

The dollar just fell over a Cliff!
The Invisible HandZe dollard is dede#1432934/17/06; 07:45:19

TOKYO (AP) -- The dollar fell sharply against the euro and yen in Asia Monday on a media report suggesting that China might reduce its purchases of U.S. Treasury holdings, and amid speculation that U.S. interest rates may have peaked.

The Invisible HandIt's the weaker dollar which is propelling gold#1432944/17/06; 07:53:49

Gold futures rose to a fresh 25-year high on the New York Mercantile Exchange on Monday, propelled higher by a steep decline in the dollar and continued concerns about Iran's nuclear research program.
How they know? Only me, The Invisible Hand, knows.

Tooliespreken ze deutch?#1432954/17/06; 08:25:10


USAGOLD / Centennial Precious Metals, Inc.Exchange your seasonal paper harvest for enduring value!#1432964/17/06; 08:43:28

Swiss gold francs

Harvest Time
Whatever it is that you may have sown,
we'll give you the power to reap GOLD.

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FlatlinerThe political metal#1432974/17/06; 10:47:27;_ylt=Appn9gc.ZKiw8faVEZcmSems0NUE;_ylu=X3oDMTA3OXIzMDMzBHNlYwM3MDM-

This came out at about noon eastern time. Gold jumped 3+ in minutes.
TownCrierGold price#1432984/17/06; 12:33:19

Gold for the first time has breached the 500 euro per ounce level.

Now bear this in mind... as the gold price goes higher, gold becomes ever more efficient as a financial resource.

You didn't for a moment ever think the ECB was idiotic (or merely random) for choosing a MTM gold reserve regime, did you?

Choose gold for your personal savings and you, too, can follow in the footsteps of giants.


SurvivorMost Underwhelming Quote Of The Year?#1432994/17/06; 13:41:42

I just caught this quote on the MSN Market Ticker page:

"Fed President Moskow says policy makers must be "vigilant" to ensure increases in energy and commodity prices don't spur inflation."

He is half right, I suppose, because high commodity prices are largely a response to monetary inflation (AKA The Dollar Flood) and therefore cannot also be a cause of the same as far as I know.

And, if he is talking about *price* inflation, then sorry Mr. Moskow . . . those high commodity prices show that you are already too late!

This is a classic example of mis-information - but then we are used to it.

Got Gold?

- Survivor

USAGOLD Daily Market ReportPage Update!#1433014/17/06; 14:06:18">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

MONDAY Market Excerpts

Gold climbs $18 from pre-holiday close

TownCrierJ-Bullion, post removal#1433034/17/06; 16:57:13

Just a very quick note to inform you that it's been brought to my attention that your posting of the Sanders missive is largely off-target for this particular discussion forum and had to be deleted not only for its disruptive (or maybe I should say distractive(?)) subject matter but especially because it serves as a free promotional piece for a firm that competes with the host of this Forum.

This is likely an appropriate time to review the posting guidelines. Please see the URL given above.


arbyhI thought the "Freedom to Fascism" post was relevant #1433044/17/06; 17:04:24

I thought the "Freedom to Fascism" post was timely and relevant to the concerns of most every poster here, and I don't see the financial conflict of this movie being the competitor that you speak of.
TownCrierarbyh,#1433054/17/06; 17:48:30

Name and contact info for a competing company was very obviously provided in that post -- definitely not an appropriate free use of this hosted venue.

'nuff said.


ToolieHu Jintao#1433064/17/06; 18:21:42

With Chinese President Hu Jintao expected to visit President Bush this week, for discussions on trade and Iran, I wonder if we can expect POG action in Asia, that is similar to that of last night. Since President Bush has set the menu as TRADE and IRAN. Perhaps Hu is choosing the mood music.
White RoseSilver and gold are doing the same thing after hours#1433074/17/06; 18:54:27

Gold is up 30 cents, silver is up 26 cents.

It is getting very interesting.

Ten BearsA critical view #1433084/17/06; 20:08:25

Due to offshoring and outsourcing over the last eight years, US manufacturing employment is down almost four million jobs, or almost 25%. Eight-five percent of these losses took place in the first three years of the first Bush administration.

In reality hyperinflation has already begun. It's just no one wants to admit it or talk about it.

The amount of funds that will enter the commodity markets in 2006 will double and that which will enter the gold and silver arena will more than double, perhaps triple.

A few years from now after the bond and stock markets have fallen, gold will ultimately be the only game in town.

We have been beset by some of the worst ever politicians over the past 40 years. Ninety-five percent have a price and it's disgusting.

The illegal alien problem is no longer about illegals - it is about a power move by One-World government advocates.

We remembered when they began trading in derivatives in the early 1970s we wrote an article of which the conclusion was someday they would destroy the financial system. It seems like that day is fast on its way.

One way to stop this derivative madness is just raise interest rats. It's that simple. Just like in 1995 when Sir Alan Greenspan talked about irrational exuberance all he had to do was raise margin requirements.

John Williams he says inflation is 8%. If the same CPI were used today as was used when Jimmy Carter was President, Social Security checks would be 70% higher

Due to free trade and globalization, unemployment is 13%, wages in the form of disposable income are falling and 45 million of our fellow citizens have no medical coverage.

It costs $1 million to win a seat in Congress, yet less than 1/2 of 1% of all Americans made a political contribution of $200 or more to a federal candidate in 2004. We call that distain. Congress belongs to the highest bidder.

A critical view of the present and a dark projection of the future from Bob Chapman. I wish he could be easily proved wrong; unfortunately, what he says has a ring of truth.

slingshotQuestion#1433094/17/06; 20:50:54

Can the Global Market withstand a simultaneous, limit up in both Gold and Silver?


tejbearTen Bears, #143308#1433104/17/06; 21:58:55

Ten Bears,

Thanks for providing the link to Bob Chapman. He certainly has a lot of concerns with regard to America's increasing debt and how it will impact the POG & POS.

Sadly, I too share many of his views.

Got gold yet?

The Bear

Gandalf the WhiteOOPS --- "There goes ANOTHER rubber tree plant !"#1433114/17/06; 22:24:37

$618. has been BROKEN !
Where are you Sir Gold-fly ?

Ten Bears@ tejbear #: 143310#1433124/17/06; 22:35:15

You are welcome.
No doubt most of us here have a percentage of our wealth in gold or other sound money.
And none want to see economic conditions which adversely affect a large segment of the population.
Nevertheless we are obligated to provide our families a measure of insurance against economic adversity.
Having gold in secure storage is a good step in that direction.

GoldendomeAre the Chinese doing this already?#1433134/18/06; 00:44:15

Interesting that this week, the top dog of China is coming over to the U.S. to listen to carping about our trade deficit and the dollar/Renimbi. The Chinese even went to the lengths of having some advance men spread a few billion dollars around the U.S.buying things, in effort, to show us they're not so bad after all.

Well-next month, I think we can all predict that the U.S. trade deficit will probably hit an all time high...May just blow through the old high like nothing. (Last weeks glee that the trade deficit had fallen from the previous month? Heck, that was for the 28 day month of February to begin with--and the amount was still the 3rd highest on record!) We can then look for presure to build once again on China to do something in the currency area or face a growing tariff threat.

Now to the point! If I were the Chinese and were facing an increasing threat of tariff action, I think that I would begin to allow the U.S. currency to fall in value against the Renimbi. Yes- and while I was about it, I would take some of those trillion dollars U.S. and begin to buy futures contracts in ALL of the commodities that my country would be needing to further develop. Then I would pull back from buying further U.S. debt instruments--lighten up some on those I'm holding--and see what begins to happen.

So--now I have futures contracts for all types of commodities contracted for when the dollar value of those commodities was lower due to a higher dollar at that time, and if --as the U.s. wants-- the dollar falls, causing the commodities to spike higher in dollar terms, I still have my contracted futures price to pay with my now, deflating in value--dollars.

As the futures contracts in oil, copper, gold, silver, corn, wheat, ---whatever else---come due, I pay up with my dollars and take delivery of the commodities. Beats the political hassle, it would seem, of trying to acquire companies in sometimes unfriendly areas.

The Invisible HandLet's return to our offices again, again and again - ad fundum#1433144/18/06; 04:34:39

It's the best of times for gold bugs. Those returning to their offices after a short holiday are today being cheered by news of another gold price surge, this time to almost $620 an ounce.
Gold Herr, Gold Herr, oder ich fall um!
(There's a song in German: Beer Sir, Beer Sir, otherwise I collapse!)

The Invisible HandThere's hope for me and those from Antwerp#1433154/18/06; 04:47:07

Iran's armed forces must be at the ready and will "cut off the hand of any aggressor", hardline President Mahmoud Ahmadinejad said in a speech Tuesday to mark national army day, AFP reported.

Antwerp is Antwerpen in Dutch. Werpen is to throw in Dutch. Legend has it that Ant is Old Dutch for hand. Ant-Werpen (Hand-Throwing).

Was Belgian not from Antwerp? No, IS Belgian not from Antwerp?

The Invisible HandWhy didn't Gata tell us this?#1433164/18/06; 04:59:54

Gold has gained nearly 50 percent in the last two years, supported along the way by a collapse of FIXED-PRICE forward selling of bullion by producers and assurances by the world's central banks they would hold on to most of the 32,000 tonnes or so sitting idle in vaults worldwide.

TownCrierIt's like walking on eggshells...#1433174/18/06; 06:38:20

HEADLINE: HSBC Offers First Islamic Dual Currency Structured Investment

KUALA LUMPUR, April 18 (Bernama) -- HSBC Bank Malaysia Bhd has introduced the country's first Syariah-compliant structured investment product.

According to the bank, the HSBC Amanah Islamic Dual Currency Structured Investment will further complement the success of its Islamic banking business which it has steadily built up since 1994.

...The product is made of two components, namely the Commodity Murabaha-i and the Unilateral Promise to Exchange Currencies, which offers investors the opportunity of earning enhanced returns on short-term surplus funds.

The Commodity Murabaha-i, which is based on the concept of deferred payment sale, allows an investors to invest a sum of funds through the purchase and sale of an underlying commodity in which the commodities and the profit rate are agreed upon upfront.

Under the second component, the investor will provide the bank with a unilateral promise to exchange currencies in which the amount of currencies to be exchanged is specified in the unilateral promise.

^---(from url)---^

"Pssst... hey buddy. I've got a derivative on a bridge I'd like to sell you."


White RoseWe have talked about these eggshells before#1433184/18/06; 06:57:36

The Koran prohibits the collecting of interest. This is very inconvenient. For some persons with religious convictions, it is appropriate to enter into contracts that offer the effect of interest without breaking any religious rules.

If all parties agree, and there is no funny stuff going on, then there is nothing too remarkable going on.

If you want to look at funny accounting, keep your focus on the structure of the US housing market.

masWhite Rose#1433194/18/06; 07:08:40

Can you tell me where it says that?
That's the whole problem, seems a lot is said and then misinformed on.
Sorry for my views.
Just every one is into Koran bashing these days and yet they have never read. Remember he wrote the Koran for the Jews! First pages of the Koran.
Go figure!
Good luck all.

TownCrierJubak's Journal: Why metals stocks haven't peaked#1433204/18/06; 07:21:49

(4/18/2006) -- Call the theory Peak Metal. The price of gold and other metals, and related stocks, will keep rising as finding new sources gets harder and more expensive.

Is it too late to buy into the boom in metals stocks -- everything from gold to silver to copper to iron to zinc? ...does the current boom in metals have longer to run, making this a good time to buy despite gains like these?

Investors looking to answer questions like those should take a clue from the boom in oil prices and particularly from a theory called Peak Oil. The analogy isn't perfect -- the commodity markets for metals are much smaller and much more speculative than the market for crude oil. But applying a theory that I'm calling "Peak Metal" argues that while short-run risks have risen recently, the boom in the prices of metals and metal stocks is a long, long way from over.

...Twin peaks?

Now look at the three similarities between Peak Oil and Peak Metal:

**It's becoming harder and harder to find significant new deposits of everything from gold to copper. Gold production in South Africa, traditionally the world's biggest gold producer, is now just one-third of its peak because the country's deep underground mines are exhausted and mining companies haven't been able to find enough new gold deposits to make up the difference. Global gold production has actually tumbled as gold prices have spiked. After peaking in 2001 at 2,621 metric tons when gold sold for less than $260 an ounce, gold production fell in 2005 to under 2,500 tons.

**When new deposits are discovered, they are in politically riskier countries. In gold and copper, that's meant replacing production from South Africa and the United States with production from Peru and Indonesia, for example.

**Production costs are higher in newly discovered deposits. Part of that's a result of location: It's more expensive to produce copper if you have to build roads, railroads and ports from scratch in remote Indonesia than it is to produce copper from Arizona. And part of that is a result of the poorer quality of newly discovered deposits. Costs are rising at many gold-mining companies because the grade of ore -- the amount of gold per ton of rock -- is lower in newly discovered deposits than in older mines.

To those, I'd add these factors that could produce even sharper and more sustained price increases for Peak Metal than for Peak Oil....

^---(see url for full article)---^

Not a bad little article, but it is too bad that the concept of physical ownership seems to be completely off of Jim Jubak's radar screen.

It is nice, however, to see him run with the notion of Peak Gold on nearly the one-year anniversary of a post in which I offered up the analogy.

(an excerpt of that post follows)
TownCrier (4/11/05; 11:28:43MT - msg#: 131075)
HEADLINE: South Africa's golden sunset
JOHANNESBURG ( -- Uncontrollable costs are adding inordinate pressures on South Africa's gold industry (the world's largest producer), which has accelerated the demise of older shafts, says the South African Chamber of Mines....

There are no signs that the rate of decrease in production may be levelling out as the biggest tonnage fall came in the second half of 2004, where 20.2 tonnes less gold was produced compared to the last six months of 2003. 10-years since 1995, South Africa's gold production has fallen 34.4% or by 179.7 tonnes.
^----(from url)----^

Peak oil got your undies in a bunch? Try "peak gold" on for size.

When choosing between a gold bar (or coin) and a gold mining share, consider which one will definitely still be around in a thousand years. You'll then have a pretty good idea which one you can therefore also reliably count upon during the interim years -- the years that are especially relevant to your personal timeframe. Choose the metal. Choose peace of mind.

Put a firm foundation under your portfolio. Choose gold -- it's a better material for the task than paper.


GoldiloxBridge derivative#1433214/18/06; 07:24:14

@ TC,

Is there a lease rate on the Bride derivative?

GoldiloxOops#1433224/18/06; 08:08:55

I meant "Bridge" derivative! Bride derivatives are WAY OFF TOPIC.

Freudian slop!

MKIn an era. . .#1433234/18/06; 08:48:53

When the government manipulates the economic statistics to hide the true state of the world economy;

When the fiat money system guarantees ever growing imbalances, debt and money creation with no end in sight;

When the base components of the financial system (stocks, bonds and their derivatives) rely for value not on their individual merits but their appeal to highly organized and capitalized speculators;

When no analyst or money advisor is required to ascertain the complexity of the economy and financial markets because they are all driven by a single principle -- speculative interest;

When rational expectations become exacerbated to the point where chance, or luck, overrides intelligence;

Then, be it resolved, that the only sensible course of action is to buy gold in the form of coin and bullion, sit back and let the tide of events take us where it will. If, indeed, the society has succumbed to a baser view of value as the evidence suggests, then we must know that for now there is no other rational alternative but gold ownership -- gold, which in the end, stands as the gaurantor of wealth no matter what happens to paper assets.

slingshotGoldilox#1433244/18/06; 08:58:40

Something about that word that makes you want to skip the letter "G"
Sir Black Blade must be having a heck of a time teaching how to Build Brides.

GoldiloxWhat to Make of it All?#1433254/18/06; 09:14:16


Moving forward to the metals, both gold and silver remain en fuego. While both investors and traders have attempted to isolate "the top", those who have exited their positions are finding it extremely difficult to angle their way in for re-entry at lower levels thus far. Although both are overbought and in need of some consolidation, either through price, time, or a combination thereof, there's no doubt that the secular bull remains in tact. Interestingly, at today's prices, 1 ounce of Gold buys approximately 47 ounces of Silver. Historically, the ratio is in the 17-20:1 range, thus we would not be the least bit surprised to witness a further narrowing in the spread, albeit at much, much higher prices!!

The world remains awash in liquidity. How is one to know, now that "Big Ben & Co." have done away with M-3? Did they not ask the masses for trust in "Team Transparency"? The price action in Gold and Silver are telling us. While the Fed and central banks worldwide contend that inflation is under control, or non-existent for that matter, the "whites" on their knuckles are starting to show, as they grip the stick and continue to force feed baby incremental rate increases, all the while they have both feet stomped on the pedal-to-the-mettle in an attempt to engineer the soft landing.

What to make of it all? We're not quite sure. However, one thing is for certain from our perch, and that is the continued systemic destruction of the purchasing power of the dollar (i.e. inflation), or as we refer to it as the "transfer and confiscation" of wealth. Somehow, we get the feeling that this plane is coming down without any landing gear, thus buckle-up, close your eyes, and buy gold and silver with both hands!!

GoldiloxIt's Different this time - or NOT!#1433264/18/06; 09:17:44


In 2000, the conventional wisdom said it's different this time when the yield curve inverted. The rationale then was it was an "artificial inversion" due to the low outstanding amount of thirty-year treasuries so no recession would be forthcoming. We all know what happened then.

Today, we're again told that it's different this time. The new rationale is because China and Japan are buying US Treasuries, they are thereby keeping yields on long-term paper artificially low. This leads us to ask, If Europeans or Americans were the ones buying bonds instead of the Chinese or Japanese, would it still be artificial buying.

The 10-year rates closed Friday at 5.036% and the 30-year is well over 5.12%. There is a clear "slowing" in real estate nationwide particularly in the fast moving west coast California markets and southwest Arizona and Nevada along with some of the stronger east coast markets in Florida, Washington, D.C., and Boston. Foreclosures are at 20-year highs and in places like Denver, it is downright ugly. Lending constraints are also beginning to tighten down. The jobs continue to come in "just right" according to the BLS numbers, but when you dig down and dirty, most of the jobs appear to be marginal at best, with the service and Real Estate sectors driving most opportunities.

With manufacturing jobs disappearing and interest rates rising, here's my question: Is the growth in Real Estate, which has recently gone parabolic, going to continue? My bet is not.

Wage growth in the US is flat at best. Higher interest rates will cause some major economic slowdowns in the next 3 months to a year as rates for ARMs and exotic mortgages are reset in a big way.

Consider this: When a 400k home is reset at the higher interest rates of today, most people will see a full $1,000 a month difference in their payments. Where will the strapped consumer who used the housing ATM to finance purchases the past 4 years get this additional income? Maybe they will have to sell that house and downsize. Maybe, their neighbors will be doing the same thing.

It really is a fine line that the Fed has drawn in some very thin sand. I hope Ben Bernanke is a true artist because I don't see how the higher interest rates and higher commodity price inflation will translate to anything but lower consumption over the next few years. The parabolic move we had in real estate is first going to slow and then revert to a mean. In this process, I would not be surprised to see Real Estate move swiftly down and cause a big ripple in the economy.

The broader point here is to show that this certainly won't be the first or last time we ever hear the term it's different this time. However, we should be on guard, because whenever we hear it's different, it usually isn't.

FlatlinerRenaisance#1433274/18/06; 09:18:53

And Sir MK strikes first with a poetic incantation against the evil that stands on the great Oaken Table of Yore!
GoldiloxThe Precious Metals vs. Interest Rates and Gibson's Paradox#1433284/18/06; 09:27:22

and one more-


Gold stands in the way of irresponsible bankers that will inflate and inflate, continually debasing and devaluing our currency of its purchasing power. Gold is the ever-watchful sentinel that gives first warning of the banker's misdeeds.

The bankers know this – it is why they fear and shun gold. It keeps them honest, healthy, and wise. However, their desires seek out other shores more distant and alluring. The pull of nature is too strong – and they are too weak.

As we stated in Gold Wars: Intervention and Manipulation during a conference organized by the World Gold Council in Paris on November 19, 1999, Robert Mundell, Professor at Columbia University and 1999 Nobel Prize Laureate in Economics, made the following remarks during the question and answer session after his speech on "The International Monetary System at the Turn of the Millennium":

"Gold is subject to a lot of elements of instability, not the least of which is the attempt on the part of several big governments to make it unstable. [...] If you notice what happened in the past 20 years in government policy in respect to gold, nobody sold gold when the price was soaring to $800 an ounce. It would have been a good deal and it would have been stabilizing if they would have done so. But people sell it when it hits bottom; the British have been selling gold now that it seems to have hit the very bottom. That element – governments selling when the price is low or not selling when the price is high – makes it destabilizing. Governments should [...] buy low and sell high."

If interest rates have been manipulated downward since 1995, and with them the price of gold, then it would seem to make perverted sense that now that interest rates are going up – that gold should go up as well.

Therefore, does it still hold water that either gold or interest rates are wrong? Maybe – maybe not: maybe both.

Which relationship is right – should bonds and gold march together or in opposite directions? In addition, might the present relationship change again in the future?

I believe that those capable of such wizardry have persuaded interest rates to steadily fall as the charts indicate. Consequently, the long existing inverse ratio between gold and interest rates no longer holds sway – at least perhaps for a bit longer.

Now gold is rising with interest rates. I do not believe the Fed and company want the long end of the yield curve to rise. It will destroy what has taken them decades to pull off. It might even destroy the real estate market and with it the economy.

We have a dilemma: just what is the Fed up to? Do they want an inverted yield curve as we have repeatedly stated? Has the Fed lost control? Perhaps they no longer have the power to persuade interest rates to heed their beck and call.

The most horrid of possibilities is that rising interest rates are the desired choice. Perhaps a big hit to the real estate market is in order, as who forecloses on the property?

Who gets to keep whatever monies have been paid to date, and now gets to confiscate the property as well. A piece of property that cost him nothing to lend the money to, and which he can now lend to another – ad infinitum.

GoldiloxWars and 'Rumors of Wars'#1433294/18/06; 10:39:09


To summarize a couple key points I got from the wise and experienced Larry Jeddeloh (, a MUST HAVE service for those that can afford it) of the Institutional Strategist. Maybe you cannot afford NOT to get it.

1. Several more wars in the Middle East are happening as the battle for control of 4/5th of the world's light sweet crude continues.

2. Shia occupies the great majority of the land where this crude oil exists and Sunnis run the countries where most of it exists. On Shia-occupied land Sunnis are making a whole lot of money.

Now some of your and my points

3. The Shia, Sunnis and Kurds, as well as smaller groups in the region, all fear annihilation at the hands of one another. There will be no mixed group governments that last.

4. As you and I have both pointed out in the past, the pipeline systems in Iraq and in Saudi Arabia are very vulnerable. Larry also makes this point.

5. As we have been mentioning for years, the demand for oil in China, Brazil, India and other emerging countries will continue for many years. Now that the growth genie is out of the bottle governments are under tremendous pressure to continue the growth and provide higher standards of living for their people.

In China it means revolution if it does not occur. In India, Brazil and elsewhere it means loss of power for the ruling political class and the stopping of their income from the public trough and corruption.

6. Last time I checked wars never did anything other than increase the debt and budget deficits of the countries involved in them.


6.b. . . . and entrench the powers of them what rally for them while the masses scramble for survival.

Goldilox"Rally Caps"#1433304/18/06; 10:44:34

While the DOW broaches 11,200 for the umpteenth time, PoG continues its upward march, with "correction" so far, amounting to little more than a pause to catch its breath.

Certainly not in the baseball sense, but 11,200 sure seems like a "rally cap" for Wall St.

DruidGoldilox (4/18/06; 09:27:22MT - msg#: 143328)#1433314/18/06; 12:55:00

Druid: Good read. My comment awhile back about oil and gold now serving as proxies for serious dollar devaluation are in lieu of the Dollar Index serving that role as a function of interest rates. The Dollar Index, like so many others, is antiquated and range bound but extremely useful as a tool for classic misdirection.

The paper faction can still get a hell of a lot of mileage out this Index as they play up any type of noise they can muster to correlate with the direction.

FlatlinerWhat happened to 13 dollar silver?#1433324/18/06; 13:23:37

Another missed opportunity.
mikal@Flatliner#1433334/18/06; 13:32:03

Re: "What happened to $13 Ag? Another missed opportunity." According to Brady Willet, you may have another chance:
Why Not Squezze the Charmin - Brady Willet - April 18

TownCrierThere are fundamentals, and then there are Fundamentals#1433344/18/06; 13:49:12

When John Reade, precious metals analyst at UBS, says as he does here, "We recognise that prices are above what is justifiable on the basis of supply and demand fundamentals -- but as the moves of the last nine months have demonstrated, fundamental factors do not seem to matter very much at the moment," we would all do well to recognize that he has taken only a very shallow view and that there is an undercurrent of deeper, central banking- driven fundamentals that he hasn't even begun to acknowledge as part of the scenario.


Clink!@ Flatliner#1433354/18/06; 14:00:17

Considering the POS behavior since your post, you might just as well have bemoaned the passing of $14 too ! ($14.07, as I type).

TownCrierHigh Gold Prices Will Worsen Inflation -- Dealers Blame Weakening Greenback#1433364/18/06; 14:08:39

TEHRAN, April 18--Record high gold prices will negatively affect the already critical situation of inflation in Iran, said a senior Management and Planning Organization (MPO) official here on Tuesday.

Mohammad Kordbachcheh, MPO director general for macroeconomic affairs, told Fars news agency that gold is a major consumer item in Iran, stressing that a rise in the prices of gold and gold coins will worsen inflation.

He called on the Central Bank of Iran (CBI) to announce its figures on the status of the precious metal in the basket of consumer goods and services to enable analysts to determine the exact impact of high gold prices on other economic indices.

^-----(from url)----^

I am too stupid to find the sense in that, unless it it just a means to an (unstated) end. To be sure, I like Vietnam's latest initiative exploring implementation of official inflation indices for the purposes of central banking monetary policy that were NOT biased by gold's performance.

When a significant revaluation of gold is foreseen as a necessary inevitability, it is best to simple cut the mooring and let it FREELY skyrocket rather than having it simultaneously rip a CB's attempt at a stable currency (vis à vis prices in the broader economy) to shreads.

It wasn't lightly that FOA coined the phrase "free gold".


mikalBanks, funds, families find future in gold#1433374/18/06; 14:10:49

Gold, silver reach fresh multi-decade highs
MADLEN READ, AP Business Writer
April 18, 2006 12:32 PM
NEW YORK (AP) - Snippits: "Gold and silver prices on Tuesday extended their rise to levels not seen in more than two decades, driven by turmoil in the Middle East, rising oil prices and a weakening U.S. dollar."

"Driven" prices are as much in motion as redefining themselves towards more realistic levels, on a daily basis.

"Because gold is denominated in the dollar, its long-term performance will depend largely on that of the U.S. currency - which has been weakening due to concerns over the U.S. economy and the budget and trade deficits.
''Gold is going to turn more into a monetary concern ... the need for an alternative to the U.S. dollar will be evident,'' Grandich said."

Various reasons the dollar is heading south have been seen for years, but may now be viewed at short range. Gold has also been heading higher in all currencies, reflecting global monetary and fiscal imbalances including debt, asset imbalances, revenue shortfalls and derivative risks.

"Because gold is now in territory not seen in 25 years, price resistance levels are more psychological than anything, Hunter said. Still, market watchers are saying the metal could soon be flirting with its all-time high of more than $800 an ounce from early 1980.
''We remain very firmly in an overall uptrend,'' Hunter said. ''The one caveat would be that given the rapid rise in prices we've seen in recent weeks, it opens the door for some periods of weakness ... but the underlying uptrend remains intact.''
''We're only in the fourth or fifth inning in the bull market in gold,'' Grandich said, adding he expects gold will likely rise to $650 or $700 an ounce before seeing any big pullback, and that silver will easily reach levels of $14 to $15 an ounce."

As "big pullbacks" become attenuated and less frequent, they are sometimes less unpredictable.

TownCrierGold glitters to new high --- reserve rebalancing#1433384/18/06; 14:21:04

Price of the precious metal is soaring in domestic market, as its price is also increasing in international market, Anwar Hossain, president of Bangladesh Jewellery Manufacturers and Exporters Association (BJMEA), said. is regarded as an alternative investment in times of rising inflation and political uncertainty.

Big economies are also reserving gold as an alternative to US dollar, which is also responsible for high prices of the precious metal, the BJMEA president said.

The gold prices have been witnessing continuous rise since the 9/11 incident as many countries especially Gulf states have resorted to gold reserves instead of US dollars...

^---(from url)---^

" reserves instead of US dollars..." is a linchpin in the the leveling of the economic playing field so that future generations need not live in fear of their economic wheels suddenly falling off due to a buildup of excessively asymmetric loads being forever forced across uneven terrain.


USAGOLD Daily Market ReportPage Update!#1433394/18/06; 15:33:18">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

TUESDAY Market Excerpts

April 18 (from DowJones) -- Gold futures once again climbed to fresh quarter-century highs Tuesday, helped by technical momentum, worries about Iran's nuclear intentions and higher crude oil, traders and analysts said.

COMEX June gold settled with a gain of $4.50 to $623.30.

"The Iranian situation and all of the related strength we're seeing in the energy markets are adding to the general bullishness in the metals markets," said Dan Vaught, futures analyst with A.G. Edwards.

"Basically, every time the Iranian president makes a new statement, it increases the amount of tension, at least in the metals markets."

And this in turn has prompted safe-haven buying of gold, continued Vaught.

Market participants are thinking about several potential scenarios in the Middle East if Iran eventually should develop nuclear weapons, said Vaught. One worry is that Iran would be able to dominate Middle East and OPEC politics, he explained.

But if the U.S. and/or Israel should take military action, "you are really talking about a potentially nasty conflict," added Vaught.

As gold was closing, May crude was up 40 cents to $70.80. It has since hit a contract high of $71.40.

The dollar remains on the defensive and this was yet another factor underpinning the metals, related Vaught. As gold was closing, the euro had risen to $1.2284

---(see url for full news, 24-hr newswire)---

TownCrierBankers press Brown to push through overhaul of IMF#1433404/18/06; 19:10:11

19 April 2006 -- The world's leading banks urged Gordon Brown today to use his powerful role at the International Monetary Fund to drive through reform at the fund this week in time to avert a financial crisis.

The Institute of International Finance, which represents hundreds of the world's largest financial institutions, said the growing risk of a major shock to the financial system made reform "crucial".

The warning came as the Chancellor, who chairs the international monetary and financial committee (IMFC), prepares to fly to Washington for the spring meetings of the IMF and World Bank. The meetings are set to be dominated by fears of growing global imbalances and an intense debate over the role of the IMF in a globalised world.

There have been calls for a shake-up in the voting system that would see Europe cede some of its representation to Asian economies to reflect the massive changes in the world economy.

Mervyn King, the Governor of the Bank of England, said this year the IMF must embark on urgent reform to restore its legitimacy in a changing global economy.

^---(from url)---^

Throughout history, within the wide body of gold-minded people (advocates and investors) is always to be found a core (fringe(?!)) group of perma-gloomers who never have a positive thing to say about anything, regardless, and on the basis of no legitimate analysis. On the balance of wisdom it usually serves one well to ignore half of what they say and to take the other half with a grain of salt.

Now where this gets interesting is when one takes inventory of bankers who, by nature of their position, tend to maintain a stiff upper lip and strive to have an even keel from which to navigate the uncertain waters ahead. And yet despite this, conditions sometimes arise in which the gloominess of bankers can, by comparison, make even the gloomiest of the small goldbug fringe look like pikers with training wheels.

And lately, there's been plenty of gloomy unrest from the quarters of the banking fraternity.

"Harrrr! Batten down the hatches, me boys, there's a wicked storm a' brewin!"


TownCrierHugh Hendry, et al, on gold#1433414/18/06; 19:39:36

Telegraph 19/04/2006 --

Maverick fund managers such as Hugh Hendry and William Littlewood are still betting on gold, while GMFS, the precious metals consultancy, has suggested that gold could surpass $850 a Troy ounce this year.

Such is his enthusiasm for gold that Hendry has 10 per cent of his new European fund invested solely in the asset - in gold exchange traded funds or gold mining companies.

" job is to be ahead of the trends," says Hendry. "I'm allowed to invest 10 per cent of my fund outside Europe and I have taken gold to the max."

Hendry has played the gold market for several years now... and he firmly believes the gold bull run - now six years old - is still in its infancy.

"Bull markets follow bear markets and vice versa. We have had the greatest bear market in gold, which lasted for 25 years until 2000. We have barely scratched the surface," he says.

Hendry reckons we are about to mirror events of the 18th century when the gold standard (a monetary system that backs its currency with a reserve of gold) was introduced. It subsequently lasted for 200 years.

"The US closed the gold window in 1971 and the central banks were put in charge to rescue the economy," he says. "They have printed money for 35 years - greed assets such as equities, bonds and property have risen 20 times over that period and people are now becoming fearful of the consequences of easy credit - suddenly gold is alive."

...For instance, the US current account deficit is causing much anxiety and a slowdown in its consumer consumption could have negative implications on the dollar with a knock-on effect on the world economy. Analysts reckon that if the dollar shows signs of weakening, Asian banks will bail out of dollars into gold as a safety valve, boosting demand further.

...Peter Hambro of Peter Hambro Mining says there is nothing but bad news around.

"It's all military and consumer debt in the US and Israel and bird flu," he says. He believes it makes sense to have around 3 to 5 per cent of a diversified portfolio in gold. "People think nothing of buying insurance when they buy a house and gold provides that for an investment portfolio."

The gold bulls also highlight that while it may have doubled in price in the past three years it is still some way off its peak in real terms - in other words, allowing for inflation. Gold was priced at more than $800 an ounce at its peak in January 1981 and Jill Leyland, an economics adviser to the WGC, reckons it would have to hit $2,000 today to be as expensive.

"What's more, figures show that gold has held its real value since 1596," she adds.

...But predicting gold price movements is extremely difficult. Birch and Hambro won't be drawn on whether the price will break through the $800 barrier or beyond. Meanwhile, Harris reduced his exposure to gold from around 10 per cent to 2 per cent in December - a move he acknowledges was a mistake. "I thought the market had peaked, but I ended up buying funds [such as Craton Capital Melchior Precious Metals, MLIM Gold & General and ACDS Australia Natural Resources] again in February."

^---(from url)---^

Gold funds are buying other gold funds, selling funds "too early" and then buying them back again, but has any one of them given serious consideration to the strong hands who are quietly picking up the metal in the meanwhile? At substantially higher prices nobody will still want to be buying all this yellow paper as a surrogate for the sure thing -- metal. Those with actual ownership of coins and bullion will have the last laugh and the longest staying power. I'd wager than Hendry has some in his personal portfolio.


Black BladeJim Rogers Says Gold Will Reach $1,000 as Commodity Prices Soar#1433424/18/06; 19:54:46


April 19 (Bloomberg) -- Jim Rogers, the former George Soros partner who foresaw the start of a commodity rally in 1999, said the boom in energy and raw material prices will endure, driving gold to a record $1,000 an ounce.

``The shortest bull market for commodities lasted 15 years, the longest 23 years,'' Rogers, 63, said in an interview. So if history is any guide, ``they've got a long way to go.''

Black Blade: Sounds about right to me. This is a secular bull market!

The Invisible HandIn two, maybe 3 or 4, months, high POO will be over#1433434/18/06; 20:32:05
"While we are hoping that this [oil above $70 barrel] will be a temporary phenomenon, nevertheless we have to prepare for any eventuality that it will persist for a month or two or longer," the [Philippines] energy secretary [Raphael Lotilla] said.
Any way you slice it, these next couple of years are going to be an utter DISASTER! From War to a failing economy, collapsing dollar, radical climatic changes, the outsourcing of American jobs, and terrorism on a global scale!
Thus I fear the paradigm edges ever closer to the Hitler years. All it will take will be a total collapse of the dollar, general depression AND domestic terrorism and a crazy man with balls the size of Tombstones, will step forward.

GoldendomeLong#1433444/18/06; 21:42:22

Brother: Where you gonna place your Shorts?

....In the wash machine!


If you're long the future's market and things go against you in the extreme, the price goes to zero; your loss is limited. If you're short the futures market and things go against you in the extreme, the price can go (theoretically anyway) to infinity ~ as can your loses. Some of these shorts in it for the long run, makes one wonder if the Fed is just handing them free money?

Copper closed about $3.05/lb, today. And they said it wouldn't hold over a buck--then two... Three?

Where can the shorts run? Nowhere seems safe now. The dollar? There's a bet. Bonds?maybe...but then...they'd be turning against themselves.

Chris PowellJim Rogers discovers gold, a couple hundred dollars late#1433454/18/06; 22:13:30

Latest GATA dispatch.

To subscribe to GATA's dispatches, send an e-mail to:

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The Invisible Hand'Gold is a bitch'#1433464/18/06; 22:31:04

... the biggest risk to the gold price reversing is if the economic landscape is in decent shape. A strong dollar and benign inflation will give investors a reason not to buy gold; the reduced demand will soften the price.
People are saying the US dollar could collapse but they have been saying that for years and it hasn't materialised. Why weren't people buying gold when it was $250 but want to buy it at $600?" he says. "Gold has had a hell of run and it needs to take a breather - but I'm the lone wolf in the forest over here
Some are very frightened.
The truth hurts or what?
Why does the gold bashing continue?

GoldendomeGold's a (b)itch!#1433474/19/06; 00:32:56

Invisible Hand: I got a kick out this quote from the excellent article you post:

"He believes it makes sense to have around 3 to 5 per cent of a diversified portfolio in gold."

What a laugh! That percentage is nothing compared to what a person now should have accumulated if financially able to do so. Most reading on this site, I would guess, have way over that percentage. It's true though...There's no rush like a Gold Rush.

I've been to three shops the past couple of weeks (at home and away). In two of the three, Gold was basically gone. Silver bullion was going fast too. I watched one construction man drop $5,000.00 on the counter at a shop in Pocatello, Idaho, two weeks ago and haul away the silver booty. Got me so excited, that I hauled out everything that I had in my pockets at the time--about $700--and hauled off a lot of the rest! And hell! I wasn't even that interested at the time in Silver. I hadn't bought silver since it hit $6.50 a few years back-- and had become too heavy to carry...I had decided that was enough. But there I was, hauling out more at higher prices. Was I nuts? Yes! Maybe. It's the fever! The greed! The avarice! It's what gold and silver does to a man in a Gold Rush!

Another fellow looking at the fancy high-end, high priced MS Silver Dollars, asked the counter person if she had any specials on Silver that she wanted to get rid of. She laughed and responded, "The cupboards bare, Now!"


The question: Why does the gold bashing continue?

My answer: Fear, control, and containment.

The Invisible HandOPEC cannot increase production#1433484/19/06; 02:05:38

Iran is against an increase in OPEC production, an official was quoted as saying, arguing that the cartel did not have the capacity to do so, according to an AFP report.

The Invisible HandHigh oil prices curbing growth, warns Opec#1433494/19/06; 02:12:24

Opec warned on Tuesday that soaring oil prices were slowing global economic growth as one of its most vocal members admitted there was little the group could do to reduce prices from yesterday's record highs.
Connect the dots!

GoldiloxIt's a gold rush as savers sock the bars away#1433504/19/06; 07:59:04

snipped from "Globe and Mail" (competitor names removed):

Don C. has worked at xxxx in Calgary for more than a decade and, with the small exception of some pre-millennium panic buying, he's never seen so many customers carting off silver bars and gold coins.

"I've been in the business since 1991 and these are new highs for me, for both metals," the general manager says.

He's not the only one surprised by the growing appetite. In Ottawa, silver demand at the Royal Canadian Mint tripled in the first quarter. yyyyy, a global gold dealer based in Montreal, has hired 10 new salespeople to take calls, while another distributor, based in B.C., is busy shipping coins across the country.

Rising geopolitical tensions and record oil prices are boosting the allure of precious metals, sending gold to its highest level since 1980 and silver to a 23-year high yesterday.

But it's not just exchange-traded funds or mining company shares that are popular. Canadians -- and investors around the world -- want the real, physical stuff.

In Calgary, Mr. C. is seeing huge interest from middle-aged and older people who have cash on hand and want to park it in gold and silver.

"We're seeing a lot of new faces," he said. "It's basically cash-and-carry. People like to have it in their hands."

Like other dealers, Mr. C. says silver demand is particularly strong. Sales of 100-ounce silver bars are surging and, at $1,692 a pop, many customers are buying several bars at a time. Clearly, silver prices that have already surged 58 per cent this year aren't deterring clients. Coins are also selling at a steady clip, he said.

While Albertans may be the biggest buyers of gold and silver these days, interest is growing across the country.

At the 98-year-old Royal Canadian Mint, investment demand for silver Maple Leaf coins more than tripled in the first quarter while demand for one-to-10-ounce gold bars doubled, said David Madge, the Mint's executive director of bullion and refinery services. He expects silver sales this year will be the best in a decade.

You know commodities are hot when people are pawning their old gold and silver trinkets to the Mint.

The Mint's recycling business, which buys old jewellery or silver flatware from individuals and turns them into coins and bars, has soared in recent months in lockstep with the run on commodities prices. Thus buyers of Canadian gold coins can't be certain whether they're derived from Aunt Bessie's wedding ring or come fresh from the mines.

yyyyy, the world's largest Internet-based bullion dealer, knows this better than most. It added about 10 salespeople to its desk earlier this year to field floods of incoming calls.

Investor interest has soared for several reasons, said J, yyyyy's investment products analyst. Demand in China and India is growing, while supply is dwindling. Worries about a decline in the U.S. dollar are mounting. Energy prices are soaring and tensions in Israel and Iran are rising.

Those factors are prompting more people to see gold as a hedge in their portfolio, he said.

"It's very, very strong and across the board, and not just in Canada," he said. "People are feeling more comfortable with holding gold than they had before."

In B.C., Martin L. is managing director of the country's largest direct distributor of Maple Leaf coins. His company, zzzzz, is seeing everyone from plumbers to bankers adding precious metals to their holdings.

"People in the trades, who have their own small companies, you see them buying and putting 5 to 10 per cent of their portfolio in gold," he said. At the same time, "a lot of business people, with higher income, are putting high hundreds of thousands or even a million or two million into gold."


Here's an article that suggests, at least in Alberta, that "Everyman" is getting in on the "gold rush" - maybe the Albertans, closer to the gold fields, are still ahead of the larger masses.

The first interviewed dealer, however, has only been in the business since 1991, so he cannot compare his experience with 1980. Too bad.

mikalJournalist explores boring world of gold#1433514/19/06; 08:08:24{F1CB3815-BD6B-4DBB-9D5B-1B13F240330B}

Gold keeps climbing, up $4 to 25-year high | MarketWatch | Ciara Linnane | 8:37 EST, April 19, 2006
No effervescence or objective coverage here, thank you.

mikalObsolete quote!#1433524/19/06; 08:17:32 INO Charts and Quotes - Interest Rates - T-BOND Jun 2006 (CBOT:US.M06) 5 Day view
A chart. Nothing out of the ordinary.
-.50 @ this time, subject to comfortable, modest, moderate and mild change.

GoldiloxGold, oil hit fresh highs, get more mainstream support#1433534/19/06; 08:21:22


JOHANNESBURG ( -- Anyone needing further proof that investment in commodities like gold and oil have gone mainstream, got it last night. Jim Rogers, celebrity investor, bestselling author and famous for his apparent insights into commodity markets, is the latest to join the cheerleaders.

In an interview with Bloomberg published overnight, the until now muted Rogers added his voice to those who believe oil, gold and other commodities have entered a Super Cycle. He expects the upswing to last some years and drive prices much higher.

Rogers raised the bar for gold, predicting a peak of $1 000 an ounce although he has not set a time limit. His public pronouncement follows the forecast of $850 earlier this month by Paul Walker, who as chief executive of respected gold market researchers GFMS is another "serious" commentator.
Just how opinions have changed is reflected in skeptical response last December to cycles analyst Issy Bacher's $700 forecast on Moneyweb Radio. Then gold was trading at $490. Last night (April 18) in New York it set a fresh quarter century high of $624, adding almost $10 on the previous day.
Bacher remains upbeat, but warns the next barrier will be far tougher to crack than the $600 mark bullion cruised through this week. He reckons $700 was the "true" high of the 1979/80 gold bull market, with the spike to the record $850 being more froth than substance.

But as in December, the investment crowd is not paying much attention to Bacher's views. This time he is regarded as overly conservative.
Commodities are now highly fashionable. With relatively small proportions of their portfolios allocated and the flow of money from institutional investors being stimulated by the likes of Rogers, the boom might have only just begun.

Rogers is sure to be quoted in dozens of professional fund management meetings today having pointed out that the shortest commodity bull market on record lasted 15 years; the longest 23. The latest cycle, the start of which global investment guru George Soros's former partner predicted in 1999, is barely four years old.

And, for the moment, this young bull it is able to draw strength from a seemingly never ending stream of positive data.

Last night's buying pressure, which also took the crude oil price to a fresh peak (Nymex up 95c a barrel to $71,35) was aided by news from China that its economy grew at an annual rate of 10,2% in the first quarter of the year.
Stronger growth from China, naturally, translates into higher demand for the commodities its economy absorbs as it expands. And as we haven't seen a significant oil discovery in three decades or a major new mine in ten years, supply has no way of catching up anytime soon. Which means higher prices.
In the past year, crude oil is up 54% and the gold price is 48% higher. With virtually all the experts calling prices higher still, some feel it is becoming scarily reminiscent of the 1999/2000 bubble.

But as the current upswing is a calf compared with the 22-year bear market which came before, it Is far too early to start worrying. Especially when, in real terms (inflation adjusted), both oil and gold are some way off the peaks established in the previous cycle.

In the ultra short-term another exciting day beckons for the resource-laden JSE, with the All Share Index poised to break through 21 000 for the first time.

On top of the boost it will receive from the higher gold price comes last night's best-in-a-year increase on Wall Street where the Dow and S&P rose 1,8% and the Nasdaq 2%. The New York equity surge came on fresh evidence that the US's upward interest rate cycle is drawing to an end.

Few seem to have made the connection that rising commodity prices are inflationary. That, in turn, needs to be combated through raising interest rates.

In the market's current mood, thinking that far ahead simply does not come into the equation. For the moment, the trend is the market's friend. Enjoy the ride.


Jim Rogers, THE LATEST?

Was this article written in Y2K, or what?

The Invisible HandFrom my own correspondent – Re: gold bashing#1433544/19/06; 08:49:23

The answer to the gold-bashing question will solve ALL the mysteries of the goldmarket.

Gold (metallic gold) is the one and only all-comprehensive competitor of the financial-monetary industry (the AngloAmerican-dollar-model).

This industry has only one trump, i.e. PERMANENT MONETARY DEVALUATION through money-creation. The industry has only one task, i.e. to keep the whole mess LIQUID AT ANY COST. This can only be achieved through the exclusion of metallic gold (from the system). Paper gold within the system, metallic gold outside the system.

Historically, the industry has often been faced with liquidification problems.

Since 1971 – 1980, the bashing of metallic gold in possession has become the main foundation upon which the whole liquidification is built. An indication of this is the fact that the stock and bond markets are being kept very liquid (through hyper-derivatisation), whereas the price of gold (POG) can no longer be called contained.

We are being told that gold and oil would increase in price because of international tensions. But why do the stock-markets then not crash or at least decrease in value?

Very good question, Madam. Unfortunately, this is a conundrum (1) and we can thus not provide you with an answer.

Conundrum? No, the whole dollar system is about to implode and the elites know this but they are still hoping for a miraculous solution, they are hoping for a deus ex machina (2).

By liquidifying to the extreme, the gearing ratio (degree of debt?) increases faster than the economic growth. This results in massive (explosive) saving/reserves surpluses and similar deficits. The liquidificators want to force those surplus-builders by all means to stimulate growth (Asia and petro-wealth). The latter are however not prepared or not able to proceed to this stimulation because of the all-encompassing dominance of the dollar-liquidificators … who (the latter) can only supply "liquidity" and nothing else, With those surpluses, one can buy nothing from the dollar-debt producer (the US of A).

The whole world, outside the US of A, is thereby FORCED to mutually transact business with a dollar-unit which has no legal tender outside the borders of the US of A. This explains why the old dollar IMF protocols will soon be ignored and why it is already too late to reform the dollar-dominated IMF. This explains also why the EU slows down the gold-collaboration and why Gordon Brown, Her Majesty's Chancellor of the Exchequer, could not mobilise the IMF gold (sale - partial revaluation). It also explains why the Rothschild family left the gold-fixing business long ago.

Even if Asia would ever be granted its legitimate power in the IMF … it will never respect the old IMF protocols.
By accepting and using the IMF-dollar-regime, Euroland has respected these protocols for decades.
Asia looks forward to nothing less than a complete transfer of power.

So, my dear cowboys, get ready for Armageddon in the US of A.


(1) a conundrum is a riddle whose answer involves a pun, says Webster's, a pun being the humorous use of a word or phrase so as to suggest its different meanings or the use of words that are nearly alike in sound but different in meaning

(2) a deus ex machina would be a resolution, says Wikipedia, to this story which would not pay due regard to the story's internal logic and which would be so unlikely that it challenges suspension of disbelief; allowing the elites to conclude the story with an unlikely, but more palatable ending.

USAGOLD / Centennial Precious Metals, Inc.Serving Gold Investors Since 1973. Proven Reliability, Longevity, Quality and Professionalism!#1433554/19/06; 09:02:42

RimhFYI, Goldilox#1433564/19/06; 10:17:18

To the best of my knowledge there are no gold fields in Alberta, just lots of oil. Of course, that doesn't disqualify them from being smarter than the average individual and holding physical gold in hand (over paper gold or whatever you want to call it).

Thansk for the article - good to see someone's finally recognizing gold and silver's value!!!

TownCrierDid you know...#1433574/19/06; 10:27:22

Last week, amid typical activity associated with the Central Bank Gold Agreement (i.e., reallocations of bullion), one of the Eurosystem central banks actually **BOUGHT** GOLD COINS?

They also dumped a net 0.1 billion euro worth of foreign currency.


KnallgoldGold/Silver#1433584/19/06; 10:37:06

There was this plausible theory (pandagold etc.) that the manipulation of Silver is an integral part of the Goldmanipulation scheme.

Now either

1)they push Silver to distract a lot of money from Gold
2)the Silver manipulation is blowing up now in advance of Gold
3)POG reflects that there just is not enough metal available and big money knows it

GoldiloxAlbertans#1433594/19/06; 10:50:42

@ Rimh,

I did not mean to say there were gold fields in Alberta - why, one might start a false gold rush with such a brash statement - just that they were "closer" to them than other points of reference.

Given the high concentration of mining representation on the Canadian exchanges, "closer" can be interpreted in more ways than geographic.

It's even more interesting that Canadians, whose currency seems less at risk than the sawbuck, are flocking to PMs ahead of such movement by the US populace.

SurvivorAlberta - A Touch of Coincidence?#1433604/19/06; 10:58:10

We were living in Alberta when I first "got the message" about fiat currency and PMs. That was in the mid 70's. As I've suggested here before, AG and AU were very kind to us around 1980.

- Survivor

RimhGoldilox, Survivor#1433614/19/06; 11:28:29

Yes, perhaps the move by Albertans is twofold: They are a resource rich province so to hold gold is fairly close to their roots; and they are a rich bunch with all those oil revenues (Klein, the premier, recently gave everyone a $400 bonus and they still have the lowest taxes in the country) giving them lots of extra spending cash to put into gold - I mean, how many pickup trucks, ATVs, boats, etc. does a guy need before he has to spend his money on some real wealth....
GoldiloxUp into the close!#1433624/19/06; 11:32:25

Nice rally by the PMs into the Crimex close.
Mr GreshamRe-Pricing#1433634/19/06; 11:35:13

"Gold will be re-priced but once in your lifetime." (quoted from memory)

Wonder if he checks in now and then? Actually, the story has gone worldwide now. I'll bet our old friends "in the know" are busy battening down their hatches along with the rest of us...

mikal@Mr. Gresham#1433644/19/06; 11:49:53

I'm assuming that was FOA and not Another.
FOA promised to return when the "rain" comes.
I agree the price trend occurring in these five or six years of the bull market is just the beginning.
Would be fun to see the afterhours market OTC access revalue Au in one fell swoop this spring, or any time and place.
May happen this year or next, or as early as this spring or summer IMO.

SurvivorRe-Pricing#1433654/19/06; 11:51:57

I wonder what was meant by the "Once in a lifetime" quote. This sure feels a lot like deja vu/1980 to me.

- Survivor

RimhSurvivor#1433664/19/06; 12:04:07

Perhaps the re-pricing of which he speaks will make the 1980s spike look like a speed bump next to a high hill.....
FlatlinerWhat is a limit up limit?#1433674/19/06; 12:17:25

Someone know off hand what we might all expect for limit up shutdowns on the different world markets? For instance, what price jump stops the London market from trading? US markets? Asian markets?


mikalBarbarous metals and the base ones too#1433684/19/06; 12:23:43 CBC News: Commodity price correction coming, TD Bank economists warn - April 19, 2006
Short report backed by authoritarian lofty assumptions and no fundamentals. Makes a perfect alibi to continue holding IRA's, bonds, dollars and similar proxies, for those needing the quick, comfy summation of available investments.
I can agree with the part regarding US slowdown later this year, which is when the US recession may be too obvious to be denied. But that would improve the case for gold and make only a small dent in many of the named "commodities".

Rimh%$#@%$$%CBC#1433694/19/06; 13:32:24

Trust the far-left leaning useless excuse for a national broadcasting corp. to slam the very source of major tax revenues to the government! Sorry, but there's no love lost here for CBC. Just another hand in my pocket....
RimhSorry for the tirade...#1433704/19/06; 13:39:21

While the source of the report is the TD Bank, the so-callled journalist who wrote it did not seem to consider getting any alternate thoughts from any pro-commodity sources who may have a better grasp of FUNDAMENTALS!
TownCrierATTN: Malcolm#1433714/19/06; 13:56:29

Your emails have been bouncing (note: unclog your server inbox -- its full).

Now you can call it "official" if you'd like (but I still say it's old news -- for my part there was never a doubt). The shortest possible grapevine has given me word that the thing was not only roundly green-lighted, but the key portion was effectively singled out to be expedited. Maybe you already reached that conclusion since Easter... why does best news travel slowest? Unleash the hounds; tallyho.


GoldiloxWHAT YOU DON'T READ IN THE U.S. PRESS#1433724/19/06; 14:13:20


Well, how is gold these days?

Are you one of those still convinced this rise in the gold price is merely a short term rally that has reached its climax? If you follow the fundamentals you have to be aware the real forces destined to drive gold even higher have not even kicked in yet. So in other words we are barely at the beginning of a long term price appreciation of the gold price.

But let's stop here and consider the forces in motion driving the gold price higher today and now. The facts are that the rest of the world is seeing something today that American investors as a whole are totally oblivious to. Or maybe American investors in their inflated over confidence just choose to go though each day wearing blinders.

Why do American investors wear "blinders" on their eyes keeping them from seeing the economic realities of today? Read the text below and you will understand why American investors refuse to recognize the growing financial mess this country is in now.

"In the mountain town where I used to live, we celebrated "Winter Carnival" — a midwinter, weeklong festival that included winter sports, ice sculpting and a good old-fashioned parade. I remember the big Belgian workhorses pulling sleighs loaded with hay down Main Street. Attached to each horse's headgear were blinders — big black wings — that cupped the horse's eyes, blocking part of its vision." "Why do they always put blinders on the horses?" I asked my friend Sally, a knowledgeable horsewoman. "It seems sort of mean to me." "Oh, no, it's not mean at all," Sally said. "Blinders are helpful tools, and there are good reasons for using them." "Horses have limited side vision because their eyes are situated toward the sides of their heads," she explained. "Because they're only seeing out of one eye or the other, sudden movements on either side can frighten them, causing them to bolt or shy away." "Also, it's hard for horses to see what lies directly ahead, so it's difficult for them to focus down the road. By putting blinders on a horse," Sally continued, "a handler helps him focus straight ahead — on his job, his purpose and his destination." - click here!

Well, there is the answer folks as to why investors in this country wear blinders. It is because "…sudden movements on either side can frighten them…" And if folks remove these blinders heaven help the fright they would experience from looking at reality.

And by wearing these blinders the investor can "…focus straight ahead — on his job, his purpose and his destination." And what is that goal and destination the average American is seeking just over the hill? More debt and the false hope that good times will always be just around the corner…as long as you are invested "in the long term." In the long term we'll all be dead. Maybe we better start concentrating more on the activities of day to day.

Well, let's pause here and take those confounded blinders off as the rest of the world has done and look at economic reality. The following Asian news text is a good indicator of how the world community views the US dollar today without the aid of blinders. Take your blinders off just for a moment here and comprehend well what you read below and do not ignore its message.

"Mumbai, April 16: Gold is expected to touch Rs 10,000 per 10 grams in the next five to six months because of the weakening of the dollar as the US economy is fast losing its sheen coupled with the constantly growing gold demand for the yellow metal." "These findings are contained in a paper brought out by Assocham on "Yellow metal: its future pricing trends", which points out that the dollar has already lost its lustre by 40 per cent against the euro since 2001." - click here!

Just curious to ask you here… Is this what you are hearing on the US evening news or the US cable financial channels?

"The trend is unlikely to be reversed in the future as the faith of the international community in the US economy has been shaken so much that it has reached saturation point. The US economy has started sagging and the trend has become so pronounced and visible that investors henceforth prefer to accumulate gold rather than dollar," says the study."

Did I just read above that this trend has become "visible?" If it is visible to the rest of the world community why is it not also "visible" to US news networks and American financial analysts? I wonder if Katie will be able to see this "visible" trend when she begins this fall to report the news for CBS as the new network anchor?

"…the US dollar losing its pre-eminent position of most preferred investment instrument." "The report says further that gold demand the world over is constantly shooting up and has neared levels around 4,000 tonnes per annum against its supplies which remain stagnant at about 2,250 tonnes per annum." "Since the dollar is losing its glitter the emerging trend among the investing communities would be "to develop and widen the yawning gap for yellow metal accumulation which will naturally accelerate it price…."

USAGOLD Daily Market ReportPage Update!#1433744/19/06; 15:05:53">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

WEDNESDAY Market Excerpts

Gold extends gains by $13, higher yet in after-hours

April 19 (from Reuters) -- Gold futures in New York shot to a 25-year peak on Wednesday as gyrating currencies and fears of U.S. inflation sped up precious metals purchases as an alternative investment.

Record-high oil prices and news that core U.S. inflation rose at its fastest rate in a year pulled investors into gold as a hedge against inflation, said analysts, many of whom felt momentum for higher metal prices looked strong.

"Really, the investment off-take is continuing unabated. It's crazy," said Bernard Hunter, a director at bullion dealer ScotiaMocatta in Toronto. "There's a lot of traditionally positive gold news out there at the moment."

COMEX June gold futures settled up $12.70, or 2 percent, at $636, after trading from $622.10 to $637.40 -- the steepest price for futures since December 1980.

Gold rose for a sixth-straight session, and was even extending gains sharply in after-hours trading following Wednesday's close.

June gold in NYMEX ACCESS electronic trading got as high $643.80 Wednesday afternoon -- up $7.80 from the close.

Uncertainty about the economy's outlook, coupled with worries about tensions in the Middle East, including the war in Iraq, has been a key factor behind investors pouring more money into gold and other commodities, analysts said.

"From a technical standpoint, the next objective is $700," said Carl Birkelbach, president and chief executive of Birkelbach Management Corp.

The dollar, meanwhile, fell to a seven-month low versus the euro after stronger-than-expected U.S. consumer price data for March.

---(see url for full news, 24-hr newswire)---

TownCrierIranian gold rush highlights escalating tensions#1433754/19/06; 15:27:18,_i_rssPage=de095590-c8f4-11d7-81c6-0820abe49a01.html

(FT) April 19 2006 -- With the war of words over Iran's nuclear programme escalating and the domestic economy stalling, Iranians are scrambling to buy gold coins, sending their value soaring by 32 per cent in the past two months.

"It's unbelievable," blazed a front page story in Etemad-e Meli, a reformist newspaper, earlier this week. "It seems no investment field is as safe."

"Gold coins are Iranians’ political hedge fund," says Heydar Pourian, editor of Iqtisad Iran (Iran Economics), a monthly magazine. "We keep them at home and they make us feel secure."

Commodity prices have risen worldwide over recent years partly in response to Middle East tensions centred on Iraq, but Iranians are now starting to feel they may be at the centre of a growing storm.

Hence the appeal of gold coins given as presents for weddings and new year; gold coins are a liquid and proven investment. And at 460,000 rials (about $41.50) a quarter, gold coin is within reach for all but the poorest Iranian.

By contrast, Iran's largely state-owned banking sector offers limited services, while investors face inflation put officially at 14 per cent.

Lower lending rates mean lower returns for small depositors such as pensioners who, already wary of inflation, are among those fuelling rising demand for gold coins.

While deposits in state banks lost 1 per cent in real terms in the year to February 2006, gold coins gained 21 per cent.

"Buying gold coins reflects a lack of alternatives," says Mr Pourian. "Big investors may pull out of real estate and move their capital to Dubai. Smaller investors have fewer opportunities."

^---(from url)---^

A largely unique article insofar as it trumpets the fact that gold is particularly good and helpful for the SMALL investors, too.

Some folks like to say that "silver is the poor man's gold"; but in actual fact, GOLD is the poor man's gold. Just look to the billions of buyers elsewhere in the world. Gold is the EVERYman's gold. Remember: time and perspective go hand in hand.


The Invisible HandAre Chicago and New York sleeping?#1433764/19/06; 18:18:40

From my own correspondent – Re: gold bashing

The Invisible Hand (4/19/06; 08:49:23MT - msg#: 143354)
From my own correspondent – Re: gold bashing
The answer to the gold-bashing question will solve ALL the mysteries of the goldmarket.

My correspondent sayz:

... no reaktion...

Wait until the price of gold dissociates itself from the prices of comparable commodities (palladium, silver etc.) Only then, will the train have left for "FREEGOLD"

As long as gold can be conceived (or maintained) WITHIN the commodities context ... it can be classified as being "speculative".

The Invisible HandThe IMF llunatics feel the heat#1433774/19/06; 18:32:22

[IMF:] The world economy is expected to accelerate in 2006, despite setbacks caused by recent natural disasters and fears over the surging price of oil.

The text under the picture may be true:
China's economy is continuing to expand strongly

The Invisible HandEurope being courted by both US of A and Iran#1433784/19/06; 18:42:05
According to an AFP report, a top US diplomat refused to rule out unilateral action by the United States to curb Iran's nuclear program but said it would be "best" to work with other countries in doing so.
Tehran plans to step up uranium enrichment work soon and has asked European countries to help in the effort, a senior French official told AFP

The fun is starting. Les jeux sont faits.
The gold war is in the open now.

The Invisible HandReaktion on Another Forum#1433794/19/06; 18:50:47

>>So, my dear cowboys, get ready for Armageddon in the US of A.<<

Armageddon, Ivo? I think I agree with you on this one. The end of the USA is - like the end of the world - foretold by every generation but realized by none.


GoldendomeWhat we saw today in the markets.#1433804/19/06; 19:41:07

Today was interesting in the markets. We saw, interest rates up, the dollar down, and Gold up. Something that we have been seeing more frequently of late, though still not a trend, but closer. A little counter-intuitive, as we usually associated rising interest rates with a stronger dollar and lower Gold. But here we have a falling dollar, driving up interest rates, causing the bonds to fall, and gold to rise. An extremely dangerous situation.

If you were not a citizen of the U.S., would you want to hold and place your money in a currency that is loosing value? Or, buy or hold U.S. bonds in an environment of rising interest rates that forces bond prices to fall, thereby losing principal?

The U.S. Government is making all sorts of noise that the Chinese MUST revalue the Renminbi in a more aggressive manner, or face possible tariffs of up to 27.5%. If you were the Chinese, would you let the U.S. Government have a 27.5% profit on everything you ship to this country!!? Perhaps the Chinese are in the this process right now of letting the dollar fall. All that they need do, is stop buying bonds. The overhang is so great, that it forces up interest rates, forces down the dollar due to lack of demand, and gold prices increase for a number of reasons, including deterioration of the dollar.

That's what we saw today--lower dollar, higher interest rates, lower bonds, higher Gold.

LimitUpFlatliner#1433814/19/06; 21:07:57

Thr term limit up means nothing for it is figured in fake dollars. The real limit up is figured in feet, about 29,280 of them. To the Moon.
Ten BearsBook Review#1433824/19/06; 21:26:43

A book review of "The Lost Science of Money" : The Mythology of Money - The Story of Power. By Stephen Zarlenga

In Karl Marx= analysis, the source of social injustice was the system of industrial capitalism; in the view of monetary reformers the villainy is transposed to finance capitalists. The most damning accusation is that the club of international bankers deliberately promote warfare to increase their wealth and power.

The appropriate response to this situation, in the view of the American Monetary Institute, is that management of money and credit policy should be a fourth fundamental branch of democratic governments, on a par with the legislative, executive and judicial functions.

The thesis and the campaign are not new, therefore, but rather the extension of an American tradition. A strong sub-theme is that American thinkers have been at the forefront in arguing the principle that money is a public good that should be supplied by governments.

Not only is the standard approach of economists completely mistaken, reformers suspect it is even that way by design.

The answer is called The 100% Reserve Solution and is attributed to both Frederick Soddy and Henry C. Simons.

The enduring dilemma for reformers is the passivity of what should be a mob. Why do citizens in a democracy not get rid of their oppressors? Ferdinand Lundberg explored the phenomenon in the mid-sixties in The Rich and the Super-Rich, at a time when the question was why the rich (e.g. Goldwater) did not rise up against the super-rich (Rockefeller). His answer was that the merely rich didn=t want to foreclose on opportunities to become super-rich themselves. The American dream fizzled out in the 1970s and after a period of dithering and unease reasserted itself as denial, via technological and military imperialism. Now it is not the comfortably rich whose motives arouse the curiosity of thinkers and writers, but rather the struggling representatives of the diminishing middle class.

The reviewer is an economic policy analyst and a Canadian civil servant, coming at the subject from a perspective most succinctly described as agrarian.

FlatlinerAh 29,280#1433834/19/06; 21:30:52

That is still a long way from the moon, but I'm sure the view will be crystal clear from up there.
The Invisible HandMore from the IMF-lunatics#1433844/19/06; 22:19:12

Transcript of the World Economic Outlook Press Briefing
International Monetary Fund
April 19, 2006
Risks to the strong central forecasts are tilted to the downside. They include possible inflationary and growth consequences of the still-high and volatile oil prices, rising real interest rates, and possible exchange rate volatility.
In sum, it would be fair to say to the world, "You have never had it so good," but challenges are building in the background.

The Invisible HandStill $20 per 10 gram – How come?#1433854/19/06; 22:37:15

Sundeck (4/15/06; 04:42:13MT - msg#: 143241)
Gold surge to all-time high of Rs 9000 per 10 grams

The Invisible Hand (4/15/06; 05:23:49MT - msg#: 143243)
9000 rupee = $200 = 10 gram
1 gram = $20

Tomorrow's Shanghai Daily
Gold prices ended at 161 yuan (US$20.07) per gram yesterday on the Shanghai exchange, the country's sole bourse for gold and platinum. It is the highest price since China opened the exchange to deregulate the gold market in late 2002.

Was that price already fixed last Saturday.
Gata, can you hear me?

TownCrierGold scales to record high in Vietnam#1433864/19/06; 23:43:46

April 20, 2006 -- The Vietnamese gold market has gone white hot, with prices Wednesday leaping to an all-time high...

Saigon Jewelry Gold Co. (SJC) rates skyrocketed to VND13.08/13.1 million ($822.60) per tael late Wednesday at the southern business Ho Chi Minh hub's private gold shops but trade volume remained heavy.

The precious metal gained VND1.01 million ($69.07) per tael in a period of three days – the fastest and highest jump so far.

Rising demand for gold pushed up the price of gold in the domestic market, with local rates outstripping world levels, according to bankers.

Some banks encouraged their clients to repay gold loans prior to maturity to avert risks of higher gold prices, promoting many borrowers to buy the precious metal for repayment, according to Nguyen Thi Cuc, a top leader of Phu Nhuan Jewelry Joint-stock Company (PNJ).

Additionally bankers’ forecast the trend will continue...

The State Bank of Vietnam (SBV) suggested solutions for commercial banks to help borrowers avoid possible higher gold prices by allowing them to change gold loans to Vietnamese dong.

The central bank would provide conditions for banks and gold trading companies to import gold, ensuring sufficient supply for the market.

PNJ Company has just imported 500-600 kg of gold, with 200 kg more arriving in a couple of days.

SJC plans to import 4-5 tons of gold in the near future.

^---(from url)---^

Very good to see gold loans being driven out of vogue.


CyclingSpot Market On GOLD and Silver#1433874/20/06; 00:26:22

Spot seems to be in lock step with Gold and Silver on the Kitko site, at least for the last few days. Anyone notice this? A large institution or big money Pockets? Games are being worked, and to who's Benifit??
The Invisible HandIOB sells 36 kg gold, not barrils oil, on launch day#1433884/20/06; 00:36:46

Indian Overseas Bank today began gold retailing with a "better than expected" performance on the first day. The bank sold over 4,600 coins of various weights, totalling 36 kg. At today's prices, this would be valued at close to Rs 3.25 crore.
IOB is no longer the Iranian Oil Bourse.

The Invisible HandGold coins are Iranians' political hedge fund#1433894/20/06; 00:48:29

Iranians' rush to buy gold highlights nuclear and economic uncertainties

Menschen, Menschen, Menschen, now all the pieces of the puzzle are slowly falling to together.
The big picture is arising.

The title of this message is a snip.
"Menschen" means "humans" in Italian.

The Invisible HandThe other IOB#1433904/20/06; 01:26:59

Although the gold retailing product, which IOB calls `Fine Gold', was launched only today, the bank has been in gold business since 1997, when the RBI appointed the bank as one of the nominated agencies to import and sell precious metals in the Indian market.
Over the years, IOB has sold 27 tonnes of gold valued at Rs 9,984 crore, the background note says

The Invisible HandReuters Australia quotes POG already in EUR and again in GBP#1433914/20/06; 02:40:37

Gold rose in other currencies too, with prices per ounce (XAUEUR=R) jumping to a record high of 597.89 euros and hitting a two-decade high of 351.69 sterling (XAUGBP=R).

mikalMore factors supportive of gold#1433924/20/06; 02:46:54

Roaring Gold, is it Bullish for Base Metals? Morning Report | UK | April 20, 2006

mikalIMF assumes greater "technical and political" challenges#1433934/20/06; 03:35:53

IMF to Implement Monitoring of Exchange Rates - The Boston Globe - April 20, 2006
In advance of a weekend IMF and World Bank meeting, IMF announced it's seeking to modernize and buttress it's "legitimacy" through various changes.
Among these are monitoring of exchange rates, levels of investment, savings and personal consumption and reweighting member voting system toward increases for many emerging economies such as Mexico and Turkey.

USAGOLD / Centennial Precious Metals, Inc.Make a risk-free request to help you enter the gold market with grace and confidence.#1433944/20/06; 06:15:18">Get a head start on the gold market!
The Invisible HandFinancial Armageddon rescheduled to Akshay Tritiya, April 30#1433954/20/06; 06:39:00

Google gives this, but I can't open
IOB launches gold coins
Business Standard, India - 1 hour ago
Indian Overseas Bank (IOB) seems to be gearing up for Akshay Tritiya (auspicious day to buy gold) that falls on April 30.
Nor can I open the site of the Business Standard, India
IOB has tied up with leading showrooms like RmKV, Naidu Hall and Saravana Selvarathinam to set up sales counters in their stores on Akshaya Tritiya to facilitate buying of gold on that occasion. The bank would soon be retailing denominations in 100 gms too as orders had already been place from the exporter.
Akshaya Tritiya day is the very auspicious day - there's no inauspiciousness to be found today so even checking muhurthas is considered unnecessary, so auspicious it is.

OvSMenschen--Italian?#1433974/20/06; 06:45:26

My foot.
FlatlinerShakin’ free of paper#1433984/20/06; 08:59:51

At moments like this, I feel for all paper investors.
TownCrierIMF aims for multilateral talks on imbalances#1433994/20/06; 09:38:52

WASHINGTON, April 20 (Reuters) - ...the IMF would aim to begin multilateral consultations with key world economic powers to help correct worrying imbalances in international trade and finance.

"Coordinated action would be both politically easier, and...economically more effective than governments in systemically-important countries acting alone," Rato told a news conference, adding this would include liaison with the likes of the European Union or the Gulf Cooperation Council.

"We believe that would be an important vehicle for analysis and consensus-building prior to policy action," said Rato.

"These consultations will enable the Fund and members to propose actions to address vulnerabilities that affect individual members and the global financial system," he said.

^---(from url)---^

Definitely not your father's IMF.

Evolving to stay relevant. It's significant that the EU and GCC were singled out to be mentioned specifically for liaison.

Seems all the more clearly that the dollar-reserve stage (II) of Bretton Woods is entering its death throes and the IMF wants to serve the coffee (have something to do) as the rest of the world gathers around to talk about it and formulate crisis mitigation strategies.


GoldiloxPaper investors#1434004/20/06; 10:04:52

@ Flatliner,

Yeah, I really "feel" for the investors who bought my "gold derivatives" yesterday and are giving them back to me at 8-10% reductions today - NOT!


FlatlinerAh... Goldilox... Rules - rule the day.#1434014/20/06; 10:43:18

"In a related development, my buddy the gold and silver trader tells me that margins were pushed up again last night from $4,360 for the NY Comex silver contract to $5,065 for NY Comex silver."

Your comment now shines. You are most wise and observant. My hat is off to you!

I do remember similar rule changes in Japan a few months back that shook the markets just as hard. If I remember correctly, the same change set the market in a downward trend that lasted a few weeks. To me, this is good news. It's an opportunity to spread the word and get a diehard friend to pick up some physical.

GoldiloxWall St. Myopia#1434024/20/06; 11:03:23

As the Crimex wraps up for the day, one sees that the closing price is nearly equivalent to yesterday's close. Isn't it interesting that all the volatility of the evening and morning trade was sufficient only to quell the huge after market rally, but not erode the PoG in the Comex itself.

These wild swings in foreign markets gotta be giving traders serious Maalox moments.

The HoopleFlatliner, Goldilox#1434034/20/06; 12:24:39

Flatliner: "I feel for all paper investors" .... on margin or don't know what the hell they're doing. The 5% that do make money are tickled pink.

Goldilox: The Crimex isn't my favorite institution either but the margin increases have been reasonable in keeping the ratio of contract value to margin funds at about 16/1. Keep in mind the shorts also suffer on these margin increases, at least the ones outside of Goldman Sachs who apparently own the printing press to cover the margin.

GoldiloxCrimex#1434044/20/06; 12:40:46

@The Hoople, Flatliner,

Didn't mean to confuse you guys. My "gold dervatives" are actually mining stocks. I wouldn't know where to begin playing Crimex, and certainly don't want to start now.

mikalA one year upbeat Au outlook#1434054/20/06; 13:02:19

Lex Investment Navigator - April 2006
Various asset classes and regions graded by sentiment-
positive, neutral or negative.
In US category, gold given a positive.

968A Call for Cooperation: What the IMF and its Members Can Do to Solve Global Economic Problems#1434064/20/06; 14:15:57

Speech by Rodrigo de Rato
Managing Director, International Monetary Fund
At the Institute for International Economics Lunch Meeting to Discuss Reform of the IMF
Washington, D.C.
April 20, 2006


"The days when G7 finance ministers could sit in a hotel room and make decisions about exchange rates are gone. There are new players in the global economy: at the moment China and some of the major oil producers have a significance in the global economy that they didn't have even ten years ago. As the global economy changes further, other players will become prominent. And all of the countries engaged in global economic policy making have to be aware of the awesome and unpredictable power of the financial markets. This is a whole new ball game."

"Multilateral consultations would be something new for the IMF and for our member countries, and they would be an important vehicle for analysis and consensus building."

"I have proposed a more systematic assessment of the consistency of exchange rate policies with national and international stability and an extension of the IMF's multilateral framework for assessing equilibrium exchange rates, which currently covers industrial countries, to the major emerging market currencies. But in looking at global imbalances, we must focus not only on exchange rates: consideration of exchange rate policy must go hand in hand with consideration of supporting policies, for example fiscal adjustment in the United States and structural reforms that boost consumption in China."

"Introducing high access contingent financing arrangements would have advantages for both emerging market economies and the broader Fund membership. Emerging markets would benefit from an added level of protection against crises, and would need less in the way of precautionary holdings of reserves, which have a substantial opportunity cost."
Emerging markets would benefit from an added level of protection against crises, and would need less in the way of precautionary holdings of reserves, which have a substantial opportunity cost ?????
Why not replace them by goldreserves valued in a "free" market ?

The rest of the commentary is already perfectly formulated by Towncrier in his previous post. Thanks.

TownCrierGold and silver#1434074/20/06; 15:48:10

Relatively speaking

From spot silver's overnight highs to its present place (probing the bottom) of its trading range today reflects a 19+ percent move.

For spot gold to have equalled that incredible range, it would have had to come down its $645 overnight high by approximately $123. Instead, it fell only a shade under $40, and presently sits $30 off the overnight high, simply revisiting its levels of a couple days ago -- Monday and Tuesday.

Does anyone care to tally up some of the fundamental differences to explain the radically different behavior of late?

Will there be lessons to be learned as time marches on, or is this still all just a case of six one way and a half-dozen the other?


GoldiloxRelative movement of Ag and Au#1434084/20/06; 16:12:33

@ TC,

I think today's action underlines the fact that silver is moved a lot more by spec action than gold. Ag certainly fell further, but had also risen more steeply.

Smaller market, less conservative, more risk/reward potential!

my $0.04, inflation adjusted.

TownCrierMore on volatility versus stability#1434094/20/06; 16:13:19

From DowJones:

"At its contract high, May silver was up a whopping 61% from its Feb. 14 low of $9.14. At its contract high, June gold was up 20% from its March 10 low of $540.20."

At current levels above those same recent benchmark lows, silver is still riding high in the saddle, up nearly 30%, gold is up 13+%.

Is it possible that if/when some speculators get bucked off hard enough, they never get on again? With the loss of those lil' buckaroos, what impact might that begin to have on the participation levels (liquidity) in silver futures?

What's fine for attracting more gamblers and speculators is not so suitable for attracting those who are especially looking to reliably protect and build their wealth in a steady-as-she-goes manner.

Perhaps this will foster yet more volatility in silver, and more steady growth stability gold such that a separation is underway. In the future, maybe it will be only in old Christmas songs that we shall continue to hear 'silver' and 'gold' being mentioned together in the same breath.

Much like the separation we see today between dice and Crown Jewels.


USAGOLD Daily Market ReportPage Update!#1434104/20/06; 16:28:46">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

THURSDAY Market Excerpts

April 20 (from MarketWatch) -- Gold futures dropped Thursday to close with a loss of almost $13 an ounce and silver prices gave back nearly 14%, prompting concern that the weakness may signal a broader correction in the metals from their more than two-decade highs.

"As is so often the case in the precious metals, corrections tend to be vicious and quick," said Peter Spina, an analyst at GoldSeek.

"With the major move higher over the past several sessions, the gold market is working off some of the excesses."

COMEX June gold contracts fell as much as $25.50, or 4%, to a low of $610.50, its lowest level since Monday, after closing out Wednesday's session at a more than 25-year high of $636. The June contract recovered a bit to close down $12.90, or 2%, at $623.10.

Gold will find support in the low $600s, then around $580 -- "should it need to correct a bit more," said Spina.

Given the price drop, Peter Grandich, editor of the Grandich Letter warned: "it's time to take out a caution flag. Many classic signs of frothiness now abound in commodities in general and while no one can ever pinpoint exact tops, this is not a good time to first become aggressively bullish," he said, warning that "a sharp 10%-20% correction is lurking out there."

---(see url for full news, 24-hr newswire)---

MatthewSilver verses Gold#1434114/20/06; 16:56:30

How much influence does China have re the price of silver?
What are their reserves, and their refinery capacity? Are they the the tap that regulates/influences the PoS?

GoldiloxVolatility and separation#1434124/20/06; 17:10:07

@ TC,

your quote:

"Is it possible that if/when some speculators get bucked off hard enough, they never get on again? With the loss of those lil' buckaroos, what impact might that begin to have on the participation levels (liquidity) in silver futures?"

Twenty-six years later, we still see the effects of the 1980 speculative rodeo on gold - and silver as well.

More than half the people I talk to who are not following PMs give 1980 as the reason.

Whiie I have no quarrel with the "differences" between gold and silver as investment vehicles, expecting major decoupling is perhaps, well, speculation of another kind.

GoldiloxToday's gold action#1434134/20/06; 17:24:00


The old gang had nothing to do with this. The $612 magnet slingshot gold to $630 and it reacted. Nothing here is out of the ordinary and the violence is natural to a major bull market in gold. Magnets pull a price up to it. As it crosses the number the same magnet has the ability to pull it back.

Top callers are a hard lot to understand. Every one of them so far has been so completely wrong one would expect they would be quite embarrassed. It appears they are so crass that being a public fool makes no difference. They want you to come to their website where they sell advertising.

The good people need only to stop listening to these people. Forget the bears on websites trying to sell their case to a point moving beyond the first amendment.

Gold is headed to $682 on its path to $887.70 and $1650. All the noise and fury created by gold trading funds today is madness. Eventually when sharks feed on sharks the gene pool is badly culled.

Relax and go about your business. Await the inevitable much higher price objectives.

The Invisible Handgovernment counterfeiting of governmentally counterfeited material#1434144/20/06; 17:25:38
American secret service agents have been in the South Korean capital, Seoul, on the trail of the famed "supernotes" - expertly forged hundred dollar bills that the US says are made by the North Korean government.
Poland's central bank has revealed a new banknote depicting the late Polish-born Pope John Paul II.
The alleged head of the Sicilian Mafia, Bernardo Provenzano, arrested last week, has refused to answer questions in his first official interrogation.

Flatliner@Volatility and separation#1434154/20/06; 17:31:08

I am looking forward to 26 years from now. Then, I will expect people to say something like - the reason why I'm not holding US currency is because of the great inflation in 200x. The ramifications of the mistreatment of the right to print ‘money’ will have long lasting, severe ramifications.

If the speculation ratio is 16 to 1 for silver contracts, expect that to be used as a tool to keep speculation at a manageable level.

At the same time, one would expect reports, in the coming weeks, that show a huge spike in buying from the ETFs (regarding gold) on this down turn. With every other down turn they have seen to it to pile in. One would expect that as these buying opportunities come along, the noose gets cinched just a little tighter each time.

Golden LionheartIranian gold#1434164/20/06; 17:43:17

I guess somebody will soon come out and gloat about the way we have hammered the Iranian gold buyers who bought heavily in recent days. Don't mess with Uncle Sam!

Good to see this reaction in the gold price, time to top up at a lower price ready for the push to great heights later this year.

Get gold!

The Invisible HandKorea#1434174/20/06; 19:13:20

This seem to be capitalist South-Korea, not the socialist North, which is helping to achieve the annihilation of the greenback.
The Invisible HandIt ‘s not Korea, it's the US of A#1434184/20/06; 19:30:19

So-called supernotes, high-quality counterfeit 100 dollar bills suspected of originating in North Korea,

The Heritage Foundation also says it's the North (and Beijing)
A considerable amount of circumstantial evidence points to Chinese complicity in North Korea's counterfeit currency networks.

I should learn to read what I copy. The BBC is also saying that the notes originate in the North:
American secret service agents have been in the South Korean capital, Seoul, on the trail of the famed "supernotes" - expertly forged hundred dollar bills that the US says are made by the North Korean government.
North-Korea has accused the United States of counterfeiting its own currency to fabricate evidence that the communist state is engaged in manufacturing fake U.S. hundred dollar bills.

The Invisible HandIt's the CIA and the military, stupid!#1434194/20/06; 19:37:29

SNIPNorth Korean police said late Wednesday that authorities have obtained "shocking information" the CIA hired counterfeit experts to produce fake currencies at U.S. military bases worldwide.
"They let these notes find their way to the [Democratic People's Republic of Korea,] DPRK and go out of it in the course of commercial transaction in a desperate bid to term it 'producer of counterfeit notes,'" the North's Ministry of People's Security said in the statement, carried by the country's official Korean Central News Agency.
Can you spell "police state"?
Menschen, Menschen, Menschen, what's happening?

The Invisible HandA = A#1434204/20/06; 19:40:10

Contradictions cannot exist.
Check your premises.

mikalOil#1434214/20/06; 19:47:31 Big 7.7 earthquake in Russian Far East
No word yet on casualties or damage to pipelines or other infrastructure.
Bank of Ireland: Oil may make swift advance to at least $82.30 in near term - - April 20, 2006

The Invisible HandMeanwhile …#1434224/20/06; 19:52:20

Mr Bush urged Mr Hu to take action over the yuan. US producers say its low value is a barrier to exports to China, and has contributed to the massive US trade deficit with China - which reached $202bn (£113bn) last year.

Well, if China (or N-Korea) is counterfeiting the greenback (which they are not), then the supply of greenbacks increases, its value decreases, so the value of the yuan vis-à-vis the greenback increases and Mr Hu has taken appropriate action over the yuan.

That's why the CIA took action itself.
North Korea … has been boycotting talks on its nuclear weapons programme in protest against the US financial squeeze.

The Invisible HandWhat didn't I think of this earlier? drug trafficking#1434234/20/06; 20:06:08

The North Korean spokesman said the U.S.
Central Intelligence Agency had enlisted the help of artists in Japan to produce and distribute video tapes and CDs that falsely accuse North Korea of violating human rights and conducting illicit activity.
The talks have hit a snag over a U.S. crackdown on firms Washington suspects of aiding North Korea in illicit activities such as counterfeiting and drug trafficking.
North Korea has said it is unthinkable for it to return to the nuclear talks among the two Koreas, China, Japan, Russia and the United States when Washington is trying to topple its rulers through financial pressure.

Is it really so difficult for Amerikans to accept that the dollar is toast?

As Dr. Nathaniel Branden writes op p. 142 of his book
"Taking responsibility" (Simon & Schuster, 1996)
Confront the pain, then accept and let go, and frame this very act as an expression of newfound self-assertiveness and self-responsibility.

mikalTrillions in derivatives(swaps) chasing prosperity or calamity?#1434244/20/06; 21:40:15

Will Derivatives Cause This Market To Fail?
Greg Silberman - April 17, 2006
Interview with ex-London swap originator covers number(size of market said to rival bonds) and types of derivatives, select examples and some of the impacts and unique risks.
A brief refresher course with a closing opinion on an economic collapse later in the year precipitated by an exogenous event and magnified many times by derivatives.

GoldiloxDrug Trafficking and counterfeiting#1434254/20/06; 22:18:29

@ TIH,

The Chinese would just be watering their own massive holdings down by counterfeiting US dollars. It would take many semi-truck loads to even dent their $800 B in US dollar reserves. Probably not even cost effective - LOL. It's much easier to take over our industries.

As far as drug trafficking, the Mena, Arkansas Drug Cartel has no room to point fingers at anyone else's drug trafficking.

Maybe the North Koreans will get their own show for their smuggling efforts like Oliie North!

The more treacherous the financial waters get the more they will result to mis-direction plays.

mikalYuan and US Dollar compared#1434264/20/06; 22:35:36

Rogers Sees Yuan Becoming Reserve Currency - Taipei Times - Bloomberg - April 21, 2006
The Invisible Handgas at $23 a gallon#1434274/21/06; 00:04:49

€5-a-litre petrol in the pipeline for motorists, warns expert
MOTORISTS could face the prospect of paying €5 a litre for petrol within the next four years because of global oil shortages.
Another expert, Professor Austin Darragh, University of Limerick, said some predictions would suggest that oil could cost as much as €5 a litre before 2010.
1 litre = 0.2641720 gallon
E5 = $6.1527

$6.1527 = 0.2641720 gallon

1 gallon = $6.1527 / 0.2641720 = $23.29

GoldiloxCyclone Monica hovers above Gulf#1434284/21/06; 00:17:52


The weather bureau says it expects tropical cyclone Monica to turn back to the west, despite taking a sharp turn to the north tonight.

At 10:40pm AEST, a cyclone warning was in place for coastal communities on western Cape York Peninsula from Pormpuraaw to Weipa.

A cyclone watch was current for Northern Territory coastal and island communities between Port Roper and Milingimbi including Groote Eylandt, Elcho Island and Nhulunbuy.

At 10:00pm AEST, the category 2 storm was 150 kilometres west-southwest of Aurukun. The cyclone had recently turned to the north-northeast.

The weather bureau says the cyclone will continue to intensify overnight and is expected to start moving towards the west early in the morning.

Manfred Greitchus from the Cyclone Warning Centre in Brisbane says the cyclone is not likely to return to the Queensland coast.

"We're anticipating that Monica will again resume its westward path during the early hours of the morning," he said.

"However it still could produce some destructive wind gusts along that coast between Weipa and Arukun during the early hours of the morning as it intensifies and before it turns to the west again."

Cyclone shelters are being prepared across east Arnhem Land.

Four thousand residents of Nhulunbuy, on the Gove Peninsula, are preparing for Monica.

Today, staff at the Gove District Hospital were clearing out the building storeroom that serves as Nhulunbuy's only public shelter.

They are putting in portable toilets and facilities to boil water.

The hospital's acting manager Diane Brown is expecting hundreds of people will come to the shelter if the cyclone hits.

She says most will come from Aboriginal communities in the area.


Another massive cyclone hits Australia's mining region.

The Invisible HandFor those who didn't notice: the POG COLLAPSED#1434294/21/06; 03:36:49

Gold's collapse knocks unit
The rand is weaker on the back of a softer euro as well as short stops being taken out and also the collapse in the gold price — yesterday gold traded at a high of $645 and now it's around $610," a currency trader said.
"The market was short dollars and it was caught unawares when the gold price collapsed so there was some short covering."

SundeckBill Murphy interviewed over at Mineweb#1434304/21/06; 05:27:24

...(a transcript). Bill laying it out as per usual (and probably enjoying it)...


The Invisible HandContradictions cannot exist#1434314/21/06; 05:51:44,%202006.%20A%20broad%20sell-off%20in%20gold%20and%20silver%20accelerated%20on%20Friday%20as%20speculators%20took%20profits%20after%20the%20prices%20of%20both%20metals%20raced%20to%20their%20highest%20in%20more%20than%20two%20decades%20this%20week.%20REUTERS/Tamara%20Abdul%20Hadi

Gold, silver sink as speculators cash in
The sharp dip in precious metals took a bit of shine off the boom market, but analysts said the up trend was likely to continue.
"Whatever short-term turbulence may be encountered on the way as speculative enthusiasm waxes and wanes, a long bull market in commodities is under way," said Sean Corrigan, chief investment strategist at Diapason Commodities Management, a commodities fund co-founded by investment guru Jim Rogers.
While some of the selling was profit-taking, some was by speculators cutting their losses by selling long positions they bought at what turned out to be a temporary market peak, fund managers said.
Beyond this short-term volatility, all the factors that made gold attractive to investors -- worries over the Iranian nuclear standoff and worries over inflation -- remained, analysts said.
"Despite the huge decline...such a correction would be deemed a healthy scenario in order for the metal to continue on higher in the future," Standard Bank said in a report.
"Fundamentally, there are no changes to suggest that inflationary and geopolitical concerns have been allayed, which is supportive in the long term."

The Invisible HandThe Gold Trail#1434324/21/06; 06:05:15

Here's an article from yesterday which says that the stocks are not following the metal.
Did FOA not argue something to that effect, or rather did he not say that when this would happen, the road was free.

A necessary pullback?
Analysts say demand for the commodity as well as global economic growth projections are likely to continue to drive the price of gold higher going forward. In addition, many of the gold stocks have not risen as aggressively as the commodity price, suggesting that there are still values to be found.

The Invisible HandGold Trail One#1434334/21/06; 06:24:19

FOA (05/14/00; 20:39:25MT - msg#22)
Mothers: the only real gold of this earth!
There will be some huge profits to be made by holding certain mine stocks. But, almost all of them will go close to zero first. I doubt many investors could hold their current percentage through this price action. Physical gold will find a new market and soar in that medium of trade. In the face of this, few if any stockholders will hold their falling mining shares while watching gold soar. Yes, some will (like me) hold through thick and thin because they have a right percentage of (the best) mine shares to bullion. But, many, many others will pressure the market as they attempt to adjust to (our)level of holdings.
25 October 2000
He and his friend 'Another' (FOA=Friend of Another) have been calling for a failure of the gold stock and futures markets for over 2 years now.

mikalSpecter of broad diversification returns#1434344/21/06; 06:37:20,_i_rssPage=49c48c22-c99b-11d7-81c6-0820abe49a01.html

Dollar Falls as Sweden Slashes Holdings in Half - Financial Times - Steve Johnson - April 21, 2006
The Invisible HandGold Trail Four#1434354/21/06; 06:38:05

-Professor von Braun's latest update at The Rocket School of Economics,,, Excerpt from "Lecture 38"--
Just like oil today,,,,,,,, Free Gold is a good deal for tax income. And most gold industry workers will stay in their jobs (although some layoffs will happen) even though it's a dirty, almost break even deal for mine owners. Their business would only get a fraction of the profits from a huge rise in gold bullion and their shares would wallow in uncertainty as gold soars. But, then again, didn't your buddy Will Rogers say something about American risk takers,,,,like:

"staying out of the governments path with your investments is the second national pass time behind baseball"

Ho! Ho! That Will was something

The HoopleCrimex scam of the day#1434364/21/06; 06:51:23

The Comex implemented limit or market orders only today in silver. Take your choice, either get filled at any damn price they choose or sell below the bid. Funny how the panic buttons always get hit when the shorts need it. This isn't a get out of jail pass, it's more like a never get charged for a crime and never go to jail pass. When will they lift the no-buy stops rule? Tuesday after option expiration would be a good time, unless they're in such deep trouble it gets carried to May contract expiration.
mikalG7 meeting may affect currencies#1434374/21/06; 06:56:34

Euro Gains as Diversification Fears Haunt Dollar | Katie Hunt | | 04-21-06
Knallgoldtest#1434384/21/06; 06:59:31

The Invisible HandANOTHER (THOUGHTS!) – Page Four#1434394/21/06; 07:20:15

In His reply to Steve, Another says that He answered the question earlier.
I don't find that answer.
Can anybody direct me to that answer?

Also, as gold begins to rise against the dollar, the local gold reserves are seen as assets of increasing value, backing the local currency. Under these conditions, with a stable currency, citizens will purchase more gold as it is seen as a positive asset. Not unlike a rising stock, everyone wants an increasing investment. Contrast this action against that in Korea, where everyone sold gold as it increased in an unstable currency!

Basically, this is the direction the Euro group is taking us. This concept was born with little regard for the economic health of Europe. In the future, any countries money or economy can totally fail and the world currency operation will continue. What is being built is a new currency system, built on a world market price for gold. Michael, you are absolutely correct in that the USA will see a hyper inflation of it's currency and a gold price in dollars that reflects it. Unfortunately, for most investors, the gold price rise will be sudden and also hyper fast. as it will occur just after a rapid plunge in dollar based assets including, stocks, debt and the entire banking system. This action will destroy virtually all gold based paper assets as they are also dependent on a functioning economic system. A local gold mine, in any country, must sell production to realize a profit. The contract system they deal with will not be functioning during this time. Contrary to many hopeful investor, local treasury officials will not allow miners to pay employees or buy equipment with physical gold. When the dust does clear for mining to continue, gold will be recognized worldwide as real money, and the mining of money will, no doubt, carry Extreme taxation. Stock prices of these operations, after being priced to zero, will then double or triple in price. Zero times three equals?


From Steve: On 8/10/98 Friend of Another commented that hyper inflation "will destroy virtually all gold based paper assets," and that "the contract system they deal with will not be functioning during this time." Could you help me understand the breakdown of the contract system on a global basis and why those companies with cash reserves will not be able to whether the initial economic system collapse and do you literally mean "zero" stock value for all gold stocks.
Do you foresee any interim period between now and hyper inflation where gold will go up enough to suggest that those holding gold paper assets will be able to sell at a higher value than the doldrums it presently holds?
Thank you for your insight.

ANOTHER: Mr. Steve, If you read my letters for today, I think this question is answered. Also, this new gold market is "ongoing" and "changing". The potential exists for the return of gold as the "only" reserve currency. This may result from a failure of the Euro, due to a massive upheaval. Oil states, they have the ability to force this outcome. During this result, all paper will burn and the world economy will start over. However, the BIS is buying gold for customer governments as they begin to lower the dollar. This action, began some months ago will bring gold up, perhaps to the middle $360 range. If the world paper markets do not destroy themselves, gold stocks may rise for a time. But, physical gold is the good hold for this time.
Thank You

GoldiloxCNN-money article#1434404/21/06; 07:21:00

@ TIH,

I read the CNN article twice and didn't see anything that suggested shares weren't following the metals - nor does my experience support that notion.

One analyst was spreading BS about waiting a few more days until the flushout was complete, but as gold is already back over $626, this may be some pretty poor advice.

Another analyst:

"Kerry Smith, a gold stock analyst at Haywood Securities said that gold prices and gold stocks may not need to consolidate much further before rising again, if recent history is to be trusted."

The HoopleUpdate on Crimex#1434414/21/06; 07:30:59

They lifted the ban on buy stops around 9:30 Eastern.
The Invisible HandGoldilox #1434424/21/06; 07:32:52

This was part of the excerpt I snipped:
In addition, many of the gold stocks have not risen as aggressively as the commodity price

Perhaps my English or my knowledge of economics is too bad but to me, this means that the shares aren't following the metal.

GoldiloxShares and PMs#1434444/21/06; 07:48:33

@ TIH,

Now I see it. Thanks.

It's a pretty vague statement not supported by the HUI. "Many shares" may be referring to the dry holes, which is certainly true, but the established miners do not fit into the authors blanket statement at all.

Caveat Emptor.

The Invisible HandChina Gold Stocks Not As Good As Gold#1434454/21/06; 08:10:07

gold stocks in China have already priced in the gold rush, at least for the coming months, traders said

GoldiloxShades of '03#1434464/21/06; 08:25:14

While gold and silver press onward and upward, the DOW and S&P are making new "highs", as well. It looks a lot like a '03, the dart board year.

Was yesterday's short run on gold and silver engineered to keep the SM indices from faltering at these lofty levels?

What was the FED statement about "unconventional methods"?

No reference, just my $0.04, adjusted for inflation.

GoldiloxBull Run#1434484/21/06; 09:48:58

@ MK,

Even CNBC pundits today said of gold and PM stocks:

"you just can't knock these down for more than a day!"

Nice buying op yesterday.

MKGoldilox, Invisible Hand: The Coming Dollar Devaluation#1434494/21/06; 10:01:34

Note: Wanted to complete some incomplete thoughts per below. Pls read this one not the previous. Thanks for the comment, Goldi. . .


Volatility in the gold market is greater than anything we've seen since the 1970s bull run. There is so much analysis out there as to why this is happening that it becomes difficult to pin down the two or three primary drivers to this market. My hope with this post is to pull together some seemingly disparate parts into a functioning whole for the benefit of our readers trying to make some sense out of this.

Overall, despite the volatility, the trend is gold is solidly to the upside. The most important feature of the trend from both a fundamental and technical standpoint is that there are some deep pockets on the bull side of the equation with last night's overseas run-up in the price the latest manifestation of this "presence."

But what is the nature of this presence?

In my view, that "presence" is not so much an individual or group, like the hedge funds, but an idea which has reached full maturity in the collective-global financial consciousness and working across the spectrum of financial interest from the hedge funds, to the big banks and trading houses, to large capital investors, and smaller investors alike. That consciousness has to do with the U.S. government/Federal Reserve's move to devalue the dollar.

Thursday's Financial Times featured a front page headline -- "IMF eyes dollar depreciation to resolve global imbalances."

"The dollar will have to depreciate 'significantly' over the medium term if global imbalances are to be resolved in an orderly fashion, the International Monetary Fund said yesterday as it stepped up pressure for far-reaching shifts in exchange rates." Please note the use of the cage rattlers "significantly," "far-reaching," and "orderly fashion." In other words dollar volatility, destabilizing as it might seem, is preferable to the alternative -- an international economic collapse.

In my view, Bernanke has been positioned at the Fed to engineer this dollar depreciation and the IMF statement both falls into line with this policy and serves as a warning to the financial establishment that devaluation is clearly the policy of the U.S. government/central bank. I would not be surprised to learn that the report was leaked before the latest leg in the gold run-up. The financial establishment may have been enlisted to play a role in the policy. Overarching all is that the policy, as of the IMF statement, has become common knowledge.

This is the "presence" driving not only gold but all the commodities. When you add the "rolling bubble" phenomena to this analysis, the volatility is more easily understood. Anyone who believes that these markets are driven by anything other than pure monetary inflation is by-passing an important aspect of the current financial markets, and the liquidity is going to gold for good reason.

In the end, a devaluation cannot occur without the blessing of the other major players -- the yen, the euro and the yuan. In today's world of currencies without a de jure attachment to gold -- that devaluation is as much a "political" consideration as it is "economic." The IMF, we now know, will play a key role in bringing the devaluation to fruition, and should be equated by current and potential gold owners as a call to arms -- a flex point the equivalent of Nixon's 1971 closing of the gold window. Those of us old enough to remember can pass along what "devaluation" meant to the American economy in the 1970s. Further, when you take the 1970s timeline as a template, it begins to look like everything that has happened so far has been merely the prelude.

For the small investor (you and me), coming to some understanding of the political culture driving these markets remains key to our personal psychological well being. The most successful investors come to an understanding -- a philosophy, if you will -- and then carry that philosophy around with them applying it to everything they do financially. Understanding that devaluation is a policy and not something that comes out of the clear blue without warning has become requisite. Holding physical gold in the form of coin and bullion is the best alternative when faced with this volatility and the clear conception that the U.S. is likely to prevail with this policy. (If it doesn't, my advice to the world's citizens no matter where they live is to prepare for the worst. Either way gold becomes the most important holding for the individual.)

Some of you will recall that I predicted a $525 gold price by the end of 2005. When the prediction was made, some thought it to be out of line with reality. Also, remember that I predicted a spiking gold price in 2006 and a $760 interim top based on a "devaluation of the dollar." Whereas the 2005 uptrend occurred without a coincident dollar drop, the $760 prediction was based upon a dollar devaluation becoming part of the market mix.

The pieces are beginning to fall into place. The volatility will now be ever-present, but the dips are likely to be met with buying by those who understand the culture now at play. Marc Faber recently noted that the Kondratieff Wave is really an analysis of the commodities’ cycle. He said that we just finished the 15 year bear market in commodities and are now in the first years of a 15 to 20 year bull market in commodities (gold being the king of commodities). The devaluation of the dollar falls into that analysis.

My best,

The HoopleMK, Good analysis#1434504/21/06; 10:47:33

A lot of dots seem to be getting connected recently. They all lead to major revaluation of paper vs. gold and commodities. When the clamor about the Yuan being undervalued is raised what is unspoken is that a dollar devaluation produces a similar effect; it will raise the Yuan defacto. Bottom line though is it really doesn't matter when all countries have faith-based currencies. They all jockey for the title of best of the worst.

I think a lot of worldwide wealth has had that epiphany lately. It isn't a matter of running from one currency to another, it's a matter of running from all currencies. A dollar collapse would be ominous for all currencies in my belief. Much like the Asian contagion in the 90's, it didn't take traders too long to figure out Thailand wasn't the only tiger in trouble. If you factor in derivatives all paper could go up in flames like a match on an old dry Christmas tree. The dollar devaluation will attempt to be orderly and politically cooperative, but I wouldn't count on it.

How high can gold go? How bright will the light of the Christmas tree flame be I'd say.

Clink! America meets the new superpower#1434514/21/06; 11:10:42

Following on from MK's "Devaluation", this article talks about some of the ramifications of such a devaluation.


The rise of China is posing awkward questions for the US, along with the realisation that its days as the world's economic superpower are numbered.

Some analysts see America entering a period of "managed decline" not unlike that which Britain has experienced since the end of the Second World War and the end of empire.

End snip.

While it is nice and comforting to think that there is going to be a "civilized" passing of the baton to China (and others), there are a couple of points of difference between the lasting passing (UK -> USA) which I believe it is important to keep in mind.
1/ When the Bretton Woods accord was signed, the takeover was between two of the longest- and closest-allied countries that the world has seen in recent times - allied in virtually any sphere of human interest you care to mention.In other words, it was a passing between two very old friends.
2/ Looking back at the very long history of Chinese civilisation (from circa 1500 BCE), there has been an underlying theme of (re)conquest by absorption. China has been conquered on several occasions, but the invader has only lasted in power a couple of generations before being enveloped and subsumed in the existing culture. I see the possibility of a gentle descent of US supremacy into relative insignificance on the world stage without someone thinking that all it took to save the situation was a flexing of the extraordinary muscle power of the US military as somewhat remote. Saber rattling over Iran is a good current example. While it can be argued that the Roman Empire, say, crumbled in a gradual fashion over several centuries, I don't think that this changeover is going to take nearly as long, and the US will still have its institutions intact and functional, rather than being totally decadent.

I think that the best we can hope for is that we move from the current unipolar world to one where there are several reasonably autonomous power blocks. South America is showing signs of wanting to move in this direction, for instance. In the meantime, we all have to hold our breath. And wonder what the real world leaders have in mind for us.


MKThe Hoople: Old dry Christmas tree#1434524/21/06; 12:31:41

I agree with you on your analogy and your point that all currencies are endangered and highly flammable. The citizen of Japan, China or Europe has just as much reason to own gold as the citizen of the United States. Recitifying the "imbalances" talked about so often these days WILL have consequences similar to the Asian contagion in that all fiat money economies react to the same set of stimuli in approximately the same way, and the inflation is global in scope. (The numbers might be on a different scale, but the circumstances are similar.) I have said many times that the first victim of the Asian contagion was the United States in the 1970s. That's the template. When fiat money systems go bad, it produces some recognizable results -- results that can be planned for.

As an aside, I find it interesting that the citizens of Iran (no less) -- not completely trusting their government -- are scrambling for gold. This comment is particularly telling:

"Gold coins are Iranians' political hedge fund. We keep them at home and they make us feel secure."

Seems that our citizenries have found some common ground even if our respective government's have not. That comment doesn't sound too far afield from the comments we see at this forum on almost a daily basis.

TownCrierPlease PLEASE Read This -- Russia's Kudrin questions dollar's reserve role#1434534/21/06; 12:36:35

WASHINGTON, April 21 (Reuters) - Russian Finance Minister Alexei Kudrin on Friday questioned the dollar's pre-eminence as the world's "absolute" reserve currency, given its recent volatility and the size of the U.S. trade deficit.

The remarks helped send the dollar lower against major currencies and caused Wall Street analysts to wonder whether central banks will increasingly diversify their holdings out of dollars.

Kudrin, in Washington for the semiannual meetings of the International Monetary Fund and World Bank, told reporters at a news briefing the dollar's value had not been very stable in the past several years, particularly against the euro.

"This causes significant changes in the international situation and that is why we do not understand the U.S. dollar at the moment as the universal or absolute reserve currency," he said. "The international community can hardly be satisfied with this instability."

"Whether it is the U.S. dollar exchange rate or the U.S. trade balance, it definitely causes concerns with regard to the dollar's status as a reserve currency," Kudrin added.

...Russia's foreign currency and gold reserves of $212 billion are the largest of any country outside of Asia.

Currency traders were especially sensitive to any remarks regarding the dollar's reserve status after the Swedish central bank earlier Friday said it had decreased its holdings of dollars to 20 percent from 37 percent of total holdings.

Asked whether Russia will continue to recycle its so-called petrodollars back into U.S. financial assets, Kudrin only said, "We are developing cooperation in the international arena."

^----(from url)---^

The international monetyary world as you knew it is undergoing change even as we speak. Do you dare face the change without primary holdings in physical gold?


968Wow, Townie !!!!#1434544/21/06; 13:15:41

This is heavy stuff !!!!
TownCrier968, For sure...#1434554/21/06; 14:09:13

Usually they are much more political -- much more discreetly circumspect in their hints and nudges.

I guess the message is that we've now moved beyond that very gentle phase of the transition.


FlatlinerOh most wise old-timers#1434564/21/06; 14:18:46

For the feeble brain newbie's (like myself) in the forum, can you please shed a little more light on what appears to be a simple statement that you've referenced below.
968Statement by H. E. Ms. Felisa Miceli#1434574/21/06; 14:23:57

Statement by the Honorable Felisa Miceli
Minister of Economy and Production of Argentina
Speaking on behalf of the Southern Cone Countries of Latin America
International Monetary and Financial Committee Meeting
Washington, D.C., April 22, 2006


"We all agree that persistent high imbalances represent a major vulnerability. They generate an exponentially growing holding of U.S. dollar-denominated financial assets
and if the time comes when investors consider that enough is enough, this would unleash a chain reaction that will certainly plunge the world economy into a major recession. This is not unlikely to happen; it is critical, therefore, to reduce global imbalances in the less disruptive way possible, while trying to avoid adverse effects on growth and employment."

"Rather than being part of the problem, I would like to see the Fund as part of the solution."

"The IMF has been forthright in providing members with adequate analysis of the ever-growing imbalances and a bit less forthright in presenting them a policy package that could unwind them."

"We all know that exchange rates should be part of the package but we would mislead ourselves if we come to believe that all will be solved by a depreciation of
the U.S. dollar. Of course the policy package that the Fund has been hinting at is more comprehensive than this as it also calls for collective actions from all members to avoid the type of beggar-thy-neighbor policies that the Fund must prevent."

"Particularly significant at this stage is the impact on the real estate market which has been a main supporter of consumption and growth through the wealth effect in several countries, especially in the US."

"It is very important to have a correct perspective in relation to the role played by central banks in this process. In this regard, we believe that we should avoid creating the perception that central banks per-se are able to deliver growth and low inflation on a sustainable basis. If this view gets entrenched, there is a risk that protectionists’ interests may have their day in the misleading hope that central banks will be able to continue delivering growth and low inflation."

"Finally, by giving policy advice requesting more labor flexibility without first considering whether internationally recognized core labor standards are being complied with, and whether the black economy is already providing too much "flexibility" to the labor market, the Fund may have made things worse."

" Also of critical importance is that the intra-Euro trade should be considered as domestic trade in measuring openness."
Towncrier, any thougths on (gold-buyer) Argentina's Economy Ministers' speech ?

TownCrierThanks... nice speech by Ms. Miceli#1434584/21/06; 15:36:10

Key elements:

"...exponentially growing holding of U.S. dollar-denominated financial assets and if the time comes when investors consider that enough is enough, this would unleash a chain reaction that will certainly plunge the world economy into a major recession. This is not unlikely to happen..."

Again... "NOT UN-likely to happen" means IS likely to happen...

" is critical, therefore, to reduce global imbalances in the less disruptive way possible..."

"The IMF has been ... a bit less forthright in presenting ... a policy package that could unwind them."

At the risk of boring you with a rehash of my old opinion, recognizing that central banks can (and do) play a key role, in the interest of trying to work out the imbalances in the least disuptive way possible, it is advisable that the CBs not aggravate the problem by selling their own vast U.S. bond holdings into a depreciating dollar market. Instead, they would be advised to hold fast to those holdings and "eat" the resulting losses. There is no need to fear for the position of their balance sheet, however, because a soaring price upon their gold holdings can be utilized to neatly and concurrently fill the void for all those who practice MTM valuations of their reserve assets.

In the role of reserve asset, it has to be GOLD as the primary replacement for U.S. bonds -- not euro bunds or any other type, otherwise we would simply be out of the frying pan and into the fire... same old same old. For its part, Europe surely does not want an overvalued currency to stymie its balanced economic position.

And in the course of this dollar dethroning, the world economy need not fear overmuch for the loss of the American consumer as a driver of economic activity because the revaluation of gold will create such a vast wealth effect for all of the humble gold-owning people in the developing regions of the world that there will be no lack of economic stimulus as these folks capitalize upon their new-found purchasing power to demand a long-overdue upgrade to their standard of living. The economy truly becomes GLOBAL rather than merely a one-sided servicing of the U.S. consumer's demands.


TownCrierUK's Brown presses for IMF reform#1434594/21/06; 16:00:32

WASHINGTON, April 21 (Reuters) - The IMF needs reform to help the world economy better withstand challenges, because the Group of Seven can no longer manage the global financial system om its own, British Finance Minister Gordon Brown said on Friday.

...the Bretton Woods institutions urgently needed an overhaul to reflect the changes in the world economy.

"In the past, exchange rate policies could be seen to be simply a matter of concern between the advanced industrial countries and involving other countries only as borrowers. This is not the case today."

Brown said there had to be a place where the G7 could discuss with emerging market countries their accumulation of currency reserves, a place where a global strategy to cope with imbalances could be thrashed out.

^---(from url)---^

I'd like a little cream with my coffee, thank you.

Now thrash away... gold can take it all, and then some.


USAGOLD Daily Market ReportPage Update!#1434604/21/06; 16:44:54">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

FRIDAY Market Excerpts

Gold gains almost 6% for week

April 21 (from Reuters) -- Precious metals in New York ended higher on speculative bargain buying and short covering on Friday, after a dramatic free-fall in metals on Thursday, though prices still held well below recent multiyear peaks.

Steadier spot prices for metals overnight, coupled with rising crude prices and a soft U.S. dollar, helped boost precious metals, trade sources said.

COMEX June gold futures rose $12.40, or 2 percent, to $635.50. It had slumped as low as $610.50 previously.

"The funds came right back in, certainly, and today, I think, the correlation with the oil price was very evident," said Leonard Kaplan, president of Prospector Asset Management in Evanston, Illinois.

"Oil went up to $75 and the metals went along with it," he said.

But trading remained relatively cautious on concerns about more possible selling by funds after gold fell 4 percent and silver 19 percent, respectively, at one point on Thursday.

Futures bounced after spot gold rose in Asia and Europe and as dealers came in to support prices on the New York market's open, traders said. Gold then stretched higher by the close as nearby U.S. crude futures advanced above $75 a barrel to a new record.

Rising energy prices boost gold because investors often turn to the metal as a hedge against inflation.

Meanwhile, the dollar fell against the euro after Russia's finance minister (see article below) questioned whether the greenback would always maintain its undisputed preeminence as a reserve currency. The euro popped up to $1.2360 after the comment.

---(see url for full news, 24-hr newswire)---

The Invisible HandThe Philosopher and Gold#1434614/21/06; 17:07:48

Diogenes Laertes, "Lives of Eminent Philosophers", Pythagoras, Bk. VIII, 8
"When Leon the tyrant of Phlius asked Pythagoras who he was, he said, "a philosopher," and that he compared life to the Great Games, where some went to compete for the prize and others went with wares to sell, but the best as SPECTATORS; for similarly, in life, some grow up with servile natures, greedy for fame and gain, but the philosopher seeks for truth."

Aristotle, "Metaphysics", 980a
"ALL MEN BY NATURE DESIRE TO KNOW. [Pantes anthropoi tou eidenai oregontai phusei]. An indication of this is the delight we take in our senses; for even apart from their usefulness they are loved for themselves; and above "all others the sense of sight. For not only with a view to action, but even when we are not going to do anything, we prefer sight to almost everything else. The reason is that this, most of all the senses, makes us know and brings to light many differences between things. "

The Invisible HandThank you, President Hu#1434624/21/06; 17:40:57

Thank you, President Hu
China's inaction is the best America can hope for.
Finally, do imports cost American jobs? Yes they do, and those hurt by expanding trade should get help. But any failure to replace jobs lost to trade with better jobs is also entirely domestic.
The "innocent fraud" of "borrowing from abroad" to fund our trade deficit diverts attention from real problems to false ones. And should one day those false problems disappear, then the real problems would become much worse. So, let's hope they don't, and in the meanwhile, we might say a word of thanks to the Chinese, instead of blaming them for what they do.

The Invisible HandThey have no brains – or are in bad faith#1434634/21/06; 17:57:58

This guy concludes that if you believe in gold as an asset class, you want to own gold.
But he said in the paragraph before that he would buy a mutual fund or exchange-traded fund.

Any rush to this gold-mining stock would be foolish
Rob Lutts, president of Cabot Money Management in Salem, Mass., believes that gold still has a lot of room to run, but he wouldn't recommend trying to keep up by purchasing one stock. Instead, he would look for a mutual fund or exchange-traded fund.

"It's really tricky to go out and buy individual gold stocks," says Lutts, who manages about $375 million in client money. "If you went out and bought the biggest and best of the last 20 years, you would have been wrong. You're loading up on management risk for the one stock; if you believe in gold as an asset class, you want to own gold, not one or two mining stocks. Just because gold has been so strong doesn't mean this is a good time to buy a stock with a bad long-term track record; that just doesn't make sense."

TownCrierGOLD: currently $3 million == 4,800 oz#1434644/21/06; 18:24:24

Few people will ever own this much gold by weight, but soon enough many will by price. Work it out, mate, and then choose the proper scorekeeper for your savings.

Thanks to the Riksbank for this one.


MatthewGold verses Silver#1434654/21/06; 18:39:06

Yesterday saw the dis-connection of the gold and silver markets. Silver lost around 20% of its value, gold was almost untouched.

TownCrierSpeaking of the Riksbank...#1434664/21/06; 18:40:05

Those clever Swedish central bankers put a nice shiny pile of gold to accompany their homepage press release about the reduction in dollar reserves. Clever, I say, because the press release itself is in regard only to the position foreign currency.

As to the gold, when the current (and final(?)) Central Bank Gold Agreement runs its course (Sept 2009), the bank is expected to have 170 tonnes of yellow metal. In January 2005 this final level was casually said in a press release to represent 10% of total international reserves.


Gold has subsequently climbed from 2900 Krona per ounce at that time to nearly 4700 krona per ounce.

Without adding an ounce to the final destination, the gold pile has already climbed in value by over 62% and subsequently "weighs" in at a higher proportion of foreign reserves than a mere 10% as originally suggested.

For context, please see my earlier posts and commentary today.


TownCrierMatthew, Silver. Gold.#1434674/21/06; 18:43:06

Some of us talked about that very topic yesterday from time 15:48MT onward. Click link and scroll down. Feel free to chime in with your own additional thoughts.


The Invisible HandWhat? Greenspan Wants His Pay in Gold!#1434684/21/06; 20:41:11

No doubt until and unless the republic falls, Mr. Greenspan has nothing to worry about, because he has been an ultra good "German" in that he has done exactly what his bosses demanded, even though he knew what he was doing was immoral and would destroy our nation. And now this man wants to get paid in what he knows is honest money, unlike the trillions of fantasy dollars he created in his tenure at the Fed. If future historians record the events of Greenspan's time at the Fed honestly, they'll have recognized that his money printing bailout policies were the seeds of America's destruction.

Topaz@Matt.#1434694/21/06; 21:31:25

Everyone and his dog was expecting Ag to drop. The trick will be to keep it down through next week into Options expiry and FND. The heat now being off Gold del'y, we might well see Au outperform Ag in the volitility stakes ...FWIW.
Golden LionheartUsing a naughty word!#1434704/21/06; 21:50:37

The theories of Marx and Engels brought up to date by Chairman Mau have produced the Chinese Communist(the naughty word) power house. To each according to his needs and from each according to his ability. A lofty ideal indeed.

Now nearly every citizen in China wants to buy gold and its the same all over Asia and the Middle East.

In the West, as the price of gold rises, people will scramble to sell their gold trinkets as they did in the 1980's. Its two different worlds.

The Invisible HandWhy don't they ever give inflation-adjusted gold high of 1980?#1434714/22/06; 03:18:10

But there are divisions over how to pull prices away from their inflation-adjusted high of above $80, touched in 1980, the year after the Iranian revolution. Consumers want more oil. Producers want to be sure investing in new fields will pay off.
BTW, why was it that gold and oil reached their peak in the same year?

The Invisible Handincoming mail - source unknown#1434724/22/06; 03:59:35

Former Helmut Schmidt cabinet member, 25-year German Parliamentarian and global intelligence expert Andreas Von Bülow says that the 9/11 attack was run by the highest levels of the US intelligence apparatus using WTC Building 7 as a command bunker which was later demolished in order to destroy the crime scene.

Speaking to The Alex Jones Show on the GCN Radio Network, Von Bülow said that "the official story is so wrong, it must be an inside job."

The Invisible HandFrom my own correspondent – MTM and pigeons #1434734/22/06; 06:47:28

How is it possible that the charlatans promoting paper-gold-products are the same people who are always speaking about all forms of dollar-paper-devaluation?

Paper is paper and gold metal is metal.

In a "crisis", you will not receive metal for paper, only more paper.
In a "crisis" you will receive more paper for less metal.

The big lie is being cultivated that one will receive gold metal for a gold mine or for Exchange Traded Funds (ETF) paper. This would occur through the intermediary of dollar-units which themselves devaluate always faster vis-à-vis gold metal.

The financial industry is thereby trying to create the impression that the bookkeeping of its paper factory is being kept more or less in equilibrium. This is the big trick with the pigeon and that's why those giants in the know, in whose steps we are following, are only accumulating gold metal, the only perfect wealth which will compensate for the cosmic stockpiles of paper.

The gold euro is also a paper-unit for accounting purposes … BUT …with a gold wealth in parallel as wealth reserve.
The ECB/BIS has no gold mine stocks, nor ETF's in its reserves … but gold metal.

What if the IMF will also mark to market (MTM) its gold reserves?
Then gold will fly 100 times higher than it would do it only for the euro (100 times more dollar-units than â‚). By the same token, the euro will gain vis-à-vis the dollar. This explains why the dollar will never be able to MTM its gold reserves.
This also explains why Her Majesty's Chancellor of the Exchequer, Gordon Brown, could only propose to MTM a small fraction of the IMF gold. This was then called revaluation of gold … PARTIAL revaluation! But this is then no gold-revaluation at the current market price, but at a price which they themselves arbitrarily determine.

So, Boyz and Girlz, the MTM-concept is a time-bomb which one can stop for a short time in order to let it explode at the appropriate moment. And THIS is precisely what the ECB/BIS are intending to use in order to counter the dollar-system with its fixed gold regime.

But people, they talk only about the weather.


From the jacket of the late Harry Browne's book, "The Economic Time Bomb" New York, St. Martin's Press, 1989
-One Wrong Move by President Bush Could Trigger a Financial Collapse
-This time we enter the crises with the economy already burdened by federal deficits so large they could send interest rates and inflation to the stratosphere. This time we already see hundreds of banks and saving & loans failing each year – with thousands more barely holding on. This time the government can't solve any problem without making another one worse. So this time we have to be ready for anything.

Thank You, Harry, for having introduced me to gold.
I'll never forget our telephone conversation on September 03, 2001 your time, September 04 my time.

The Invisible HandFrom my own correspondent: IMF Break-Up#1434744/22/06; 07:08:33

There is no political WILL (whatever that may be) to arrive at a solution.
Now even less than before.
They are only talking about the distribution of votes without even trying to propose solutions.
It would be blessing to the gold euro if the IMF would break up


Friedrich August von Hayek, "The confusion of language in political thought with some suggestions for remedying it", London, Institute of Economic Affairs, Occasional Paper 20, 1968

p.9 intro
Homo non intelligendo fit omnia (G. Vico)
– man has become all he is without understanding what happened
-some facts are only known to some individuals

The substitution by Rousseau and Hegel of the term WILL (voluntas)

for what older authors had described as OPINION (ratio)

= constructivist rationalism

Opinion became suspected because it was contrasted with incontrovertible knowledge of cause and effect and a growing tendency to discard all statement incapable of proof

Yet, the order of an Open Society and all modern civilisations rests largely on opinions which have been effective in producing such an order long before people knew why they held them and in as great measure it still rests on such beliefs.

p. 22
Much of the accumulated experience of the human race would fall outside what is described as "reason',
if this concept is arbitrarily confined to positive knowledge of the rules of cause and effect which govern particular events in our environment.

p. 22-23
When ratio was contrasted with voluntas,
ratio was the opinion about the permissibility or non-permissibility of kinds of conduct which
voluntas indicated as the most obvious means of achieving a particular result

p. 24
WILL always refers to particular actions serving particular ends,
and the will ceases when the action is taken and the end (terminus) reached.

But nobody can have a WILL in this sense concerning what shall happen in an unknown number of future instances.

The Invisible HandFrom my own correspondent: IMF to US : TAX oil#1434754/22/06; 07:18:59

IMF to US : TAX oil-consumption !!! (IMF package)

Menschen, then we're gonna have fun. Revolt against the whole Middle East policy … the debts this will cause … and now an oil tax on the oil they want to plunder (control).
Get your Winchester out of the locker! ! Patriot act III!

IMF (package) : SA + Russia >>> produce more oil !
While they want to plunder Iraqi oil and now we have regime changes in Iran... Venezuela... Nigeria... etc...!

OPEC : The oil consumers have always been concentrating on the financial earnings of oil (tax-revenues).
Saudi said two years ago: If you think the oil price is too high … lower then the 80% of taxes which you levy on oil.
Wait until some lunatic says that the freezing of the price of gold should end.

The Invisible HandFrom my own correspondent: Gordon und Angela superstar???#1434764/22/06; 07:34:33

What will all this old ladies talk of her Majesty's Chancellor of Exchequer, Gordon Brown, result in?
What should the sand pit boys think of such nonsense?
The West has transformed during 50 years the Middle East sand pit into a big slaughter house.
And now the remaining Middle-Easterns have to pump more oil for the oil consuming western butchers Please, be serious.

This is the environment the gold euro needs.
At the end of the day, the question of the means of payment (the dollar) for the oil bill HAS to be raised.
Hence, the statement of the Russian Finance minister

HAHAAAAAA, Deutschland does nicht agree mit a major role in foreign exchange guidance !!!

.... IMF is merely seeking a new justification for itself...

968Statement by Mr. Wellink#1434774/22/06; 07:36:12

Statement by Mr. Nout Wellink
President Nederlandsche Bank, Netherlands
Representing the constituency consisting of Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Georgia, Israel, Republic of Macedonia, Moldova, the Netherlands, Romania, and Ukraine.

"The de facto dollar peg of oil exporters may also contribute to the build-up of imbalances, as it limits the role of the exchange rate as adjustment channel."
- the 'de facto' dollar peg of oil exporters is put in question here ????
- why is Wellink representing US-protégé Israel ?????

ThoreaulyThe Real Cost of Imported Oil#1434784/22/06; 07:38:24

We never would have gotten into this mess if the military and related costs of securing the flow of oil from the Persian Gulf had, from the get-go, been born by the consumer rather than by the taxpayer -- i.e., if the price at the pump reflected the actual cost rather than a nominal one -- as investment capital would long ago have been diverted to less costly alternatives.
The Invisible HandFrom my own correspondent: gold euro should take over NOW#1434794/22/06; 07:44:01

WHAT … if one would not allow a dollar devaluation, orrrrrrr demand (suggest) that the gold euro takes over!?
They are maneuvering in all directions, but it is more than clear that there is no IMF-like solution in sight.
IMF is a mere dollar-serving, debt-machine and nothing else.

Note also that a Plaza devaluation (from the 1985 all times height) is no more possible.

The Invisible HandGata takes for granted#1434804/22/06; 09:35:43

Gata takes for granted
1.the existence currency marketS
2.the existence of central banks
3.the existence of a task for central banks
4.the morality and necessity of democracy

Nobody ever elected the gold standard.
see my earlier quote of Hayek's Confusion of language-paper.

Gata is no advocate of gold. Gata is an advocate of government imposed laws, currency laws, central banking laws and democratic laws. Antitrust laws of course.

10:24a ET Saturday, April 22, 2006

Dear Friend of GATA and Gold:

The Reuters story appended
here is 24 hours out of
date but is notable for showing how both the central
bankers and the news media take for granted the
rigging of currency markets -- indeed, how their
very premise is that currency markets should be
rigged, that central banks should work together but
largely surreptitiously to set all international
financial values, the values of assets, the value
of the necessities of life, and the values of labor.

This raises a question: Who elected THEM to run
the world?

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc

The Invisible HandHow much is 900 divided by 160? 5 or 6?#1434814/22/06; 09:54:38

Gold and Central Bank Dollar Holdings
Last Update: 9:41 PM EDT April 21 2006
Central Banks around the world have decreased their gold holdings since the beginning of the decade. U.S. dollar volatility, persistent and growing trade and current account deficit in the U.S. may prompt Central Banks around the world to begin diversification of their holdings. The U.S. trade deficit is likely to reach above $900 billion by the year end. Total gold holding of the U.S. is only $160 billion.

geTurkish media reports (sorry, no links in English)#1434824/22/06; 15:06:18

* Turkish Army massing troops at the Iraq-Iran border to combat PKK (kurdish insurgency).
* Rice: "We are sharing intelligence with Turkey against PKK".
* Iran is mobilizing troops against PKK.
* Syria is mobilizing troops against PKK.
* It is rumoured that Turkish Army Headquarters shall be moved to Sýrnak (located just at the Syria-Iraq border, very near to Iranian border)

Some columnists are suggesting that a Turkish-Iran war is coming.

osa104cChoir loses FAITH#1434834/22/06; 16:43:43

"America has become more a debt 'junkie' - - than ever before with total debt of $44 trillion - - with the highest debt ratio in history. That's $147,312 per man, woman and child - - or $589,248 per family of 4, $44,312 more debt per family than last year.
Last year debt increased $3.5 Trillion, 5 times more than GDP. Household debt soared 12%. 68% ($30 trillion) of this debt was created since 1990, a period primarily driven by debt instead of by productive activity. And, these numbers do not include unfunded pensions and medical promises."

Well known information….preaching to the choir??….What if US begins posturing in such a position (default)WE began to lose FAITH in the $?

TownCrierAn update to "The Rocket School of Economics" has arrived.#1434844/22/06; 17:36:20

"Oh dear..." says an uneasy sitemaster. With this latest installment it appears that Professor von Braun accidentally submitted commentary he meant for the 'Rocket School of Politics' instead.

Entitled "A Very Slippery Slope!", in it von Braun discusses his views of the motives and consequences of the war in Iraq and the building showdown with Iran.

...The rationale presented to Congress by Paul Wolfowitz, which was that the 'cost' of this invasion would be offset by oil flowing out of Iraq, obviously was wrong. What's the reward for getting it wrong? You get to run the World Bank of course!

...Obviously cheaper oil was on the minds of the architects of this foray into a hotbed of religious rivalry otherwise Wolfowitz would not have made the remarks...

What this administration really needs is oil at $100 per barrel, or even more...

Then there is all the 'hoo-hah' about the nuclear issue, with Iran's leaders using the same approach -- a 'to hell with you, we can do what ever we like' approach. Now as far as Plan 'B' is concerned this activity by Iran's leaders could not be better orchestrated, even if Karl Rove himself was writing the Iranian president's script, while rising oil prices are now starting to hurt the US consumer and will continue to do so.

How do you turn an unpopular war into a political victory? Why you do what politicians have done for the last hundred years, you offer a solution to a problem, one that affects the majority of the population where it hurts, in the pocket...

...Blame all rising prices on Iran, who are of course now saying that oil should be at least a $100 per barrel...

What does this do to gold and silver prices? Well they, along with the other metals should keep going up and up. In a recent article in the Financial Times by Gareth Smyth in Tehran demand in Iran for gold coins has increased dramatically:

Businessmen say the rush to gold reflects both growing tension over Iran's atomic activities and the destabilizing economic policies of fundamentalist president Mahmoud Ahnmadi-Nejad. "The direction reverses the years of (president Mohammed) Khatami and increases the role of the state, especially in allocating resources," says one. "It's more like communism than Islam and makes you think some of them want a siege economy ready for war."

Now if the Iranians are buying physical metal with apparently good cause, then what about the rest of the inhabitants of the Gulf region? With massive increases in oil revenues from rising prices (150% since March of 03) coupled with increased instability, who would NOT be buying gold and gold coins?

^---(visit url for von Braun's full text)---^


The Invisible HandDo you like T-shirts?#1434854/22/06; 18:52:21

IMF: Time to address trade imbalances
The Invisible HandFrom my own correspondent: All exits have been closed#1434864/22/06; 19:17:15

The essence of the debates concerns the unique global polarisation such as we (me at least) have never known it.

Dollar surpluses (reserves) versus dollar debts (deficits) !!!

Those surpluses have their origin "in" debts and are thus in principle also debts. These continuing going-ons can only be supported if the economic activity is allowed to increase proportionally. Und das geht NICHT.

This whole virtual system cannot continue to proceed orderly if there are no proportional concessions for all parties > debt + PHASING-OUT of surplus !!!

All exits have been closed.
-Savers will not stop saving
-Nor will debt producers ever stop.

In the old days, the remedy (shock therapy) was always the same – brutal unilateral monetary devaluation.
Das geht nicht mehr >>> Globalising world and unique situation (mega polarisation reserve-deficit).

The only solution is then "revaluation". This seems to me to be the future which has been outlined for the gold euro.

The weather can still be discussed the transition period.

The Invisible Hand: more later.

MKPvB#1434874/22/06; 20:22:28

What a hoot:

"Historically unprovoked attacks, by a country on another country, usually have implied that the country being attacked has something that the attacking country wants. Historically this 'something' was a commodity -- gold and silver being the favorite, oil being another, water and even salt being another. Rarely was a country attacked for their art, women, fashion, food recipes, or tourist attractions."

If you're looking for the thinking man's thinking man, PvB is he. . .and with an incorrigible sense of humor besides.

mikalGermany seeks greater representation#1434884/22/06; 22:32:06,2145,12215_pg_4,00.html,2145,12215_pg_4,00.html IMF Spring Meeting Underway | Deutsche Welle | Apr 21, 2006
968It's a new kind of gold rush in booming India#1434894/23/06; 02:00:31

"A new breed of people is emerging in India where they are buying and holding gold in bullion form," Sonawala said. "There is a clear shift towards that. It's just not the housewife buying jewellery. We are seeing serious investors now."

"If you hold in bullion form, you get back almost your entire money when you sell. But if you hold jewellery and try to sell it later, it's tough to recover the making charge, which accounts for 30% of the price of jewellery."

"Sonawala said demand for bullion in the world's biggest importing and consuming country has jumped by about 30% in the past six months. But growth in jewellery demand has not kept pace."

"When gold was at Rs6,000 per 10gm some time back, demand for bullion was not that great, compared to what it is now when it is at 9,000. And Rs10,000 is not far away. The mad rush is increasing with every increase in price," he said."
Got gold ?

The CoinGuyBlessed by Another hit and run by MK...#1434904/23/06; 02:37:17

Any idea when you're going to return to your own site for some serious discussion?

It's been years now.

The CoinGuy

The Invisible HandFrpm my own correspondent; Wait for the Sun!#1434914/23/06; 04:03:36

The Snowman is going to attach a list of "conditions" to the US –IMF collaboration.
Wat an arrogant hubris!.

The Invisible HandFrom my o.c.: Wellink – IMF voting rights – peg yuan to gold-euro#1434924/23/06; 04:52:33

He has already a contradiction in his introduction. He's says that the world economy is doing well (very well), taking into account (notwithstanding) the present circumstances.

This is Wrong.

It is a blessing from the growing imbalances which makes that the economy is doing well.

The US of A is not saving. That's why the economy is doing well.
The Chinese, on the other hand, are saving and this allows the US of A to print more greenbacks with low interest rates.
Japan is printing yen to buy dollars and thereby avoids taking sides.
Euroland is growing slowly because it displays monetary and fiscal discipline. Etc. … etc.

The IMF is thereby putting the whole situation upside down. There is a very special reason to the high oil and gas prices. Dollar and dollar-policy mismanagement.

If one would undertake a measure to solve this mess … this would have a negative impact on the world economy … which is now in relatively good shape due to the mismanagement.

It would indeed be better for oil-revenues to unpeg from the dollar. The yuan, which is now pegged to an unknown currency basket, should also be unpegged.

Maybe some rich (surplus) currencies should be pegged to a stable and intrinsically valuable gold-euro-unit.

But if this happens, then the IMF is no longer a dollar-only institute!
That's why the IMF wants the dollar-friendly currencies (Mexico-South-Korea...) to be given more voting rights.

NEMO me impune lacessitSunday reading#1434934/23/06; 05:06:04

Possible senario???


The Invisible HandMicrosoft versus European Union#1434944/23/06; 05:12:33

Microsoft is coming tomorrow to the EU court of first instance in Luxembourg

A Luxembourg courtroom is to play host to a crucial showdown between the European Commission and Microsoft.
The software giant is appealing against the commission's decision to fine it hundreds of millions of dollars for allegedly breaking European Union competition law.
The Commission ruled that Microsoft had been trying to hinder its rivals' attempts to make software systems which could work with its own Windows operating system.

Over at the Radical Academy,,
there's a lunatic arguing in his reply posted on Sat - Apr 22 - 5:41pm:
that the court should say that Microsoft was not breaching its own property rights.

As the linked BBC-article says
If Microsoft wins, analysts say, the Commission could lose much of the international credibility which it has built up by its aggressive stance against the company - and would find it harder to impose its will in future cases.

Maybe strange things will happen next week. Even if the decision will probably have to wait.

The Invisible HandThis will make my correspondent jump to his keyboard#1434954/23/06; 05:29:49,,8209-2147565,00.html

Today's London Sunday Times

The more oil rises, the bigger the fall

Let me start with the basics. Are high oil prices being pushed up by runaway demand from China and India? Is the strength of the world economy in general pushing oil demand up at such a rate that it is ignoring the rise in prices? The global economy, according to the International Monetary Fund's twice-yearly world economic outlook, published last week, has "never had it so good". This is the fourth year in which global growth will top 4%, with this year's expansion set to hit a blistering 4.9%.
The IMF thinks the current oil-price shock has worsened global imbalances, directly and indirectly adding to America's current-account deficit, and that it may prove more enduring than its predecessors. But it also notes that the economic impact has so far been modest, while adding the caveat that we may not be out of the woods yet.
So what's the outlook? In the short term anything is possible. A bit more tension on Iran and a couple of nasty hurricanes and $80, $100 or $120 a barrel could result. But the history of oil is that the bigger the upward spike, the sharper the subsequent fall. That is what gave us ultra-low prices, $10 oil, after big rises in both the 1980s and 1990s
The current boom in the world economy will fade, leading to a fall in global oil demand. There will be more supply, stimulated by current high prices. Dr Leo Drollas, chief economist at the Centre for Global Energy Studies, argues that through the current mess and confusion the fundamentals have not gone away, and they point to oil being too high at these levels.
I agree. I haven't given up on $40 oil. It is just taking a bit longer to get back there.

The Invisible HandDo we need an IMF? Yes, but not this one#1434964/23/06; 05:37:07,,1759237,00.html

This weekend may have been a step towards a new, positive IMF, which will help countries to help themselves, and steer the global economy away from self-destruction; but as finance ministers get back on their aircraft, confident they have defended their own policies against meddling, it's a good bet that at their next meeting, in Singapore, in six months' time, they will still be asking themselves what the point of it all is.
Are you sure there will be a next meeting?

SundeckMore tails to wag the golden dog#1434974/23/06; 05:42:26


Mumbai, April 22: Investors can now lap up as much gold as they like, be in the form of physical gold or units in a gold exchange-traded fund.

The Securities and Exchange Board of India (Sebi) had allowed mutual funds to launch such schemes, which will invest in gold and gold-related instruments.

Sundeck: A couple of comments:

1. These kinds of short-cuts to gold ownership are growing like topsy all over the world. Clearly there is money to be made in setting up and running the paper enterprises. I suspect we ain't seen nuthin' yet!

2. Also, I suspect that these kinds of "gold funds" are going to lead to more volatility in the gold price as the herds rush alternatively into and out of such schemes. i.e. "Derivative feedback" to the price of the underlying, in this case.

3. I wonder how long before one of these things collapses, with a whole lot of "investors" clamouring for the gold that they thought they owned, but which either never existed or has been creamed off by the "administrators"?

4. In the end, it won't matter a tinker's cuss, because the pricing will be decided by the big-time holders of gold who know value when they see it and go for the dog...not the tail...


Further comments:

a. Good stuff on the forum over the last few days...keep it up...appreciated.

b. The Invisible Hand has become very visible of late???

c. Where do peole see gold going this week? My guts says "Up!"


The Invisible HandMore from The Observer: sterling to collapse with dollar#1434984/23/06; 05:47:00,,1759567,00.html

The oil crisis of the mid-1970s took place after a period of strong economic growth, and was seriously inflationary. The latest crisis takes place when growth in the eurozone has been anaemic, and unions have precious little bargaining power - even though the unions in Germany are going through the motions.
If the pound goes down as well as the dollar (but presumably not as much) this may alleviate the problems of Britain's manufacturers.

The Invisible HandOsama, Gold & 9/11#1434994/23/06; 08:38:14
A new tape said to be from al-Qaeda leader Osama Bin Laden attacks the West over its handling of Hamas.
Could you have stopped 9/11?
By: Jesse Hemingway
In my opinion there was enough unclassified information available to know that Osama Bin Laden was preparing to strike the United States. Integrate the classified information that the United States Government had with the unclassified information concerning Osama Bin Laden we have a total breakdown in national security. I do not have the ability to determine who had pushed up the price of gold on May 21, 2001 yet it is an indication somebody was buying a considerable amount of gold to push the price up it that manner. That spike in the gold market happened very fast and a month later Osama Bin Laden made it common knowledge that an attack was going to happen. Now you have to look and evaluate this information and come to a conclusion and compare it to the version the United States Government has been telling you.

contrarianInvisible Hand--interesting link to check out#1435004/23/06; 08:48:58
contrarianInvisible Hand--Oil#1435014/23/06; 08:58:58

It's the old geologists vs. economists argument.
Geologists: we have arrived at Peak Oil.
Economists: "it's not a question of supply, it's a question of cost" (from a Goldman Sachs report I've seen with my own eyes.)

Personally, I believe the geologists, and that all this silly economists talk about "oil sands" is BS, as it takes too much energy to extract, and alternatives such as ethanol from corn, etc., aren't viable. These "economists" are just silly kids just out of idiotic Ivy League colleges with watered down and corrupted educational standards, that simply sell their goods to the highest bidder--not a meritocracy, but a moneytocracy. I sat next to one of them last October (from the London School of Economics) who I heard say one day "we have low inflation". And heaven knows how colleges have been corrupted by money from big money center "investment" banks trying to justify their parisitical existence!

Kunstler has the real deal.

GoldiloxAlt fuels#1435024/23/06; 10:09:21

@ TIH and Contrarian,

Bio fuels might have a chance of helping if we didn't have fools like the governor of MN arranging a deal to sell a huge quantity of ethanol to China just when we need it most.

Our governments' (PL) profligate spending will "tax" any and all efforts at economic recovery!

They will continue to put the screws to the US taxpayers to fund their pork and chitlins administrations until general anger puts the fear of God into them. At that point they will engineer another Reichstag fire to soldify their control. As long as "security" is the fastest growing "industry", they'll ride their winners like any other "investor".

No other alternatives from that point of view, really.

Noble1Bush Strikes Out; Saudi Arabia Makes Out-With HU#1435034/23/06; 11:07:06

From Donna Abu-Nasr at the AP:


Oil rich Saudi Arabia and energy starved China signed defense, security and trade agreements Saturday on the first day of Chinese President Hu Jintao's visit...

Hu's trip comes as Saudi Arabia opens up to Asia' growing economic powers in a bid to find stable markets for its oil, step up international diplomacy and show the West, particularly the United States, that if relations worsen, the kingdom has other alternatives, analysts say.

Saudis say the pressure the U.S. Congress exerted to drive away a Dubai-based company...sent a message to Arab and Muslim investors that they are not welcome in the United States.

"There's a feeling among Saudi's that the U.S. Congress is deriding us, abusng us and insulting us," said Khaled al-Maeena, editor of the English-language Arab News daily.
"We need to maintain links to America, but we are not America's gas station. America has to realize we want friends, not masters."


Saudi Arabia and others (Venezuela) are actively looking for and readily finding alternative markets for their oil.
But rather than being flooded (paid) in USD (that they have difficulty spending) they may demand Another form of payment.

The noose is being tightened. Soon the trap door may open.


contrarianFrom Kunstler--alt fuels et al#1435044/23/06; 12:22:52

Americans ought to regard the word "growth" with trepidation. When invoked by presidents and economists, it is meant to imply ideas like "more" or "better." It's a habit of thinking left over from the exuberant phase of the industrial age, when there was always more of everything to get. Nowadays, though, as we enter the terminal years of cheap energy, the word "growth" invokes a new set ideas.
For instance, "impossible." With the price of oil edging toward $70-a-barrel now, and likely to flirt with $100 by the end of the year, the effect will be higher costs for virtually all products and services, and tremendous stress on every socioeconomic organism from the family to government at all levels to the Ford Motor Car Corporation. The only "growth" we might expect under these conditions is the growth in our exertions to stay where we are, and the truth is that many of the weak will simply fall behind.
Another idea that "growth" might invoke would be a fear of an unstoppable rising population competing for scarcer resources: incomes, energy, food, shelter. Surely this is one of the specters behind the illegal immigration issue, a dawning recognition that the American cornucopia is becoming an emptier basket, with fewer fruits, less energy, and not many gold nuggets left in it.
For those of us positioned against the suburban juggernaut, "growth" invokes the destruction of more landscape, the conversion of pastures and croplands into McHousing subdivisions, with a long menu of additional liabilities -- not least being the huge investment in a living arrangement with no future. One would think the "homebuilders" could see this coming -- with oil edging toward $70 -- but the truth is that their companies are programmed for only one kind of behavior -- to keep building 3000 square foot McHouses 27 miles outside Dallas, Minneapolis, Atlanta, Denver, et cetera. Since they won't change the programming, then they will continue their destructive behavior until circumstances make it impossible for them to continue -- when the housing bubble blows up in their faces -- and then the companies will just die.
The cheap energy era led us into a climax of surpluses, and these surpluses represented the general "more-ness" and "better-ness" of late industrial society. In a post cheap energy world, accumulated surpluses will be meager to nonexistent. There is bound to be a scramble for whatever is left. Geopolitically, this means a contest for the world's remaining oil, which tends to be concentrated in just a few places. In each nation, there is likely to be a parallel scramble for whatever fruits, gold nuggets, and therms are still to be had, throwing off a lot of red-hot political sparks that will burn people. A lot of the remaining energy worldwide will be devoted to these scrambles, and thus essentially wasted.
There are many ways of viewing this "growth" predicament, and some strategies we can turn to in the face of it. An obvious one is to change our behavior, to stop acting as though our destructive, terminal, and futile activities were beneficial or indispensable . For instance, we could yield to the reality that the age of mass motoring will have to end. Instead of desperately seeking "alternative fuels" to run our 100 million cars, we could make an effort to restore our railroads. Instead of a million McHousing starts out in the meadows and cornfields, we could repair our existing towns and cities. There is no reason why they cannot be rewarding, beautiful places. There may well be greater benefit in walking more and driving less. The well-off Americans who have visited Europe over the past several decades invariably notice this. Anyway, we are going to need every meadow, cornfield, and pasture that we have, because as cheap energy wanes, we are going to be desperate to grow enough food to feed ourselves -- another reason to be wary of alt.fuel fantasies based on growing crops dedicated to gasoline substitutes.
One esteemed (and extremely shy) reader refers to the process of moving from a high entropy society to a sustainable one as "autonomic devolution."
"Positive feedback driven social systems breed self-amplifying trends which ultimately self-destabilize," he writes. "Autonomic devolution societies consist of localized islands of self-sufficiency."
I believe we are inevitably heading to that destination. The only thing I wonder about is how violent and destructive the process will have to be.

slingshotSearch for the Renaisance#1435054/23/06; 12:49:42

A few seconds had passed as though to get aquainted and then the air changed. The seated Knights began to slide their chairs away from the Oaken Table. Raising his weapons, the creature slowly backed up and dropped to the floor emitting a high shrill.
"That can't be good" said Sir Toolie and now all the Knights were standing. They could hear him run about under the table as they strained to see him in the dimness.
"How do you like my new friend?" Again the image of Cyrus filled the glass. "Remember my instructions" said Cyrus. A second high pitched shrill filled the room.
It was then Sir Pritcho said. "Break the glass. We sure as heck do not need another one of these to enter the room"
"No! we just have to cover it to break the union" said Sir M.K. Sir Topaz moved toward the mirror with his cape when the creature under the table showed himself, thrusting his sword at Sir Topaz's legs. The Knight backed up. Hearing the slapping of his weathered skin upon the stone it began to run faster and faster under the table.
Startling the Knights, the first chair was kicked away from its appointed place. Again in order each chair was moved an unequal distance.
Sir Mikal recognised what he was doing.
"He is creating obstacles for us in the dark and is using the Oaken Table as a shield" he yelled.
The chairs stopped moving. "What next" said Sir Toolie.
He hardly got the words from his lips and the creature made his way to the door. He withdrew a piece of metal and wedged it in the door latch so it could not be open,using the blade of his sword to bend it in place. Sir Topaz, quickly moved to cover the mirror with his cape. Before completetly covering they all heard Cyrus laugh. Having performed his task the creature turned on Sir Topaz.
It was only that Sir Mikal was close that he was able to knock one sword from the creatures hand, otherwise Sir Topaz would of had a serious leg wound. The sword bounce across the stone floor. Clanging as it went. Unfortunately, he retrieved the weapon and retreated under the table.
"Gee's Louise, What the heck are we dealing with?", said Sir Pritcho.
Movement again under the Oaken Table.
"He is going for the Candles!", said Sir Toolie. Sounds of both creature and Knights footsteps moved toward the candle holder. The chairs placed in the way of the Knights slowed them down and the creature extinguished the precious light. Returning underneath the Oaken Table the Knights could hear him rejoice as things were going in his way. Sir M.K. and his Knights headed for the other candle holder to light the remaing candles for them to survive.
When all the candles were lighted the creature growled. Looking under the Oaken Table from afar, Sir Mikal could see the luminesent eyes blink as they adjusted. Then came the clanging of metal.
"Here he comes", said Sir Mikal.


CaradocCrystal ball report/ interim highs for Ag/Au#1435064/23/06; 14:50:07

Human nature says that the herd won't start buying until silver approaches the $50s and gold is over $800. Not to worry: there's enough geopolitical nastiness in the offing (to say nothing of heartbreaking financial developments!)that we'll reach those numbers before the end of summer and may well be more than halfway there within 3 weeks.

It's a basic rule of investing that the average guy loses, so both metals need to hurt the average "investor" before passing those numbers the second time. That way, only the right people will be onboard for the next leg up. Even if you're not a member of the elite, these "upsie downsies" provide opportunity to profit in the realm of paper, do nothing to the value of your stash, and actually allow you to add to it.

Questions worth addressing:
* Will the intermediate peaks of >$50 and >$800 happen at the same time?
* How many dips between now and then? (Pick a number between 2 and 4.)
* Will there be enough popular enthusiasm about the prospect for gold at >$1000 that TPTB decide to give Joe Sixpack another haircut before the biggest single move up in this generational bull market?
* When gold moves to $1,642, how much will it overshoot that mark?
* Given that I've always planned at some point to pull out of paper and be 95% solid metal/ 5% cash, the biggest question for me is how many of those bounces will allow profits to be taken in paper gold, mining stocks, and stock options? In other words, how long before everyone on the planet loses all faith in paper so that -- as predicted here years ago -- paper gold is literally at zero?

On that last question, I figure at least one and maybe two bounces will allow paper profits, but I'm hedging my bets. Only 2/3 of last Wednesday's profits went into buying options as gold went back up past $607. The remaining 1/3 is now solid metal and securely stashed.

If you haven't done so (and even if it means not buying an ounce or two), please heed Black Blade's repeated closing comment about having necessities on hand.

Regards to all,


mikalGrand slam for Indian gold#1435074/23/06; 17:19:22

Four Es to Determine Gold Prices - Sangita Shah - Mumbai - April 24, 2006 - Newest look at gold demand in the world's largest gold repository.
The Invisible HandThe West will not besiege 3 billion people#1435084/23/06; 18:12:06

During the last 100 years of oil trade, the present owners of oil and gas have become much brighter.

Today, they control many more parameters allowing them to perfectly manage their oil-pricing in changing circumstances.

It will become more and more difficult to play the different oil/gas owners off against each other.

Oil/gas is a supply-driven and geopolitical market... where the rules of the game have changed. Oil and gas consumers will have to adapt to these new realities and the corresponding relations of power. They will have to adapt to a new situation which will be much more different from the present one than they (the consumers) think.

No IMF whining will change anything to that.

The oil/gas owners know since more than three decades that partial alternatives exist and they will tune their pricing management flexibly towards these alternatives.

The Western oil/gas consumers should not think of besieging 3 billion people (Asia-Russia-Middle East.)

Ten Bears In the spirit of message (143484)#1435094/23/06; 22:20:51

Fascism in America won't come with jackboots, book burnings, mass rallies, and fevered harangues, nor will it come with black helicopters or tanks on the street. It won't come like a storm—but as a break in the weather, that sudden change of season you might feel when the wind shifts on an October evening: Everything is the same, but everything has changed. Something has gone, departed from the world, and a new reality will have taken its place. All the old forms will still be there: legislatures, elections, campaigns—plenty of bread and circuses. But "consent of the governed" will no longer apply; actual control of the state will have passed to a small and privileged group who rule for the benefit of their wealthy peers and corporate patrons.

To be sure, there will be factional conflicts among the elite, and a degree of debate will be permitted; but no one outside the privileged circle will be allowed to influence state policy. Dissidents will be marginalized—usually by "the people" themselves. Deprived of historical knowledge by a thoroughly impoverished educational system designed to produce complacent consumers, left ignorant of current events by a corporate media devoted solely to profit, many will internalize the force-fed values of the ruling elite, and act accordingly. There will be little need for overt methods of control.

The rulers will act in secret, for reasons of "national security," and the people will not be permitted to know what goes on in their name. Actions once unthinkable will be accepted as routine: government by executive fiat, state murder of "enemies" selected by the leader, undeclared wars, torture, mass detentions without charge, the looting of the national treasury, the creation of huge new "security structures" targeted at the populace. In time, this will be seen as "normal," as the chill of autumn feels normal when summer is gone. It will all seem normal.

--Chris Floyd, November 10, 2001 Moscow Times (English edition)

The Invisible HandChinese aren't the kind of people who tallk nonsense #1435104/24/06; 00:11:12,,3-2149424,00.html

China pledges help to stabilise the Middle East
PRESIDENT Hu Jintao signalled yesterday that Beijing would play a greater role in the affairs of the Middle East when he paid a historic visit to Saudi Arabia, the main supplier of oil for China's growing economy.
The Chinese leader told his hosts that the West should not "hurl false accusations against the internal affairs of other countries, let alone blame a specific civilisation, people or religion for causing problems and conflicts in the world". He received a standing ovation.

GoldiloxUAE shoppers world's top gold buyers #1435114/24/06; 00:21:41


An average shopper in the UAE bought 30 gm of gold annually compared to the global average of less than one gm, according to a survey.

South Asians constitute 70 per cent of gold buyers, followed by East Asians with 22 per cent, according to the research conducted by Dubai's ARY, a leading gold and jewellery firm.

Arab and European consumers make up four per cent each, the study said .

The survey, which covered 3,200 people across the country. About 350 outlets in the Gold Souq, the city's gold trade hub, display about 20 tonnes of jewellery at any given time, according to the study.

Rising prices have not had a major impact on retail gold sales in Dubai because people are now looking at the precious metal as an asset.

The survey found that 72 per cent of those purchasing gold were women. It also showed that 63 per cent of the buyers were married couples.

Special occasions were cited by 46 per cent as the main reason for their gold purchases, while 23 per cent bought jewellery when going on vacation. Promotions during the annual Dubai Shopping Festival attracted 13 per cent of those polled in the survey.

High incomes do not necessarily make people consumers of gold as only 13 per cent of those earning Dh25,000 ($6,808) or more per month were found to be jewellery buyers.


Middle Easterners saw what happened to the Iraqi Dinar as fall-out from invasion, and don't want to be caught in an escalation event with worthless paper "savings".

The illusion of "security" will keep the US public from noticing until the last dog is hung, and most will come to the party too late, as they will need their bushel baskets of cash to fund their day-to-day expenses, a la Weimar Republic.

The Invisible HandA Financial Hit on Iran?#1435124/24/06; 00:23:25,9171,1186554,00.html

Among the plan's first targets: Iran's accounts and financial institutions in Europe. Secretary of State Condoleezza Rice met last week with the finance ministers of Britain and Germany, where, according to a U.S. Treasury study, Iranian-government banks operate branches to handle funds generated by the oil trade. The U.S. wants non-Iranian banks to stop facilitating Tehran's money flow. A senior official involved in devising the strategy told TIME, "It's about convincing financial institutions not to deal with bad guys, because they're worried about their own reputations."
Will they also remand gold buyers by crashing the POG?

GoldiloxLet the battle begin#1435134/24/06; 00:26:00

The early run on PMs in Hong Kong sure didn't last long as they have already regained 2/3 of the opening losses.

It should be VERY interesting in the pits this week, as oil and other "commodities" continue their "Moon shot".

The Invisible HandHow can such an arrogance be justified?#1435144/24/06; 00:31:01

The U.S. government issued a barbed riposte yesterday after the IMF suggested Washington … balance its budget faster than planned.
Tim Adams, the Treasury undersecretary for international affairs … said an IMF call for the United States to balance its budget by 2010, rather than just aiming to halve it by 2009, would put the global economy in "peril."

GoldiloxSo, You think you've about "wrapped things up"?#1435154/24/06; 00:46:16


As the issuer of the world's reserve currency, the U.S. economy has for decades enjoyed the capacity to inflate dollar denominated securities (Credit) at will. Our competitive advantage in issuing top-rated and liquid securities has served us especially well over the past decade. It was a key facet of "reliquefications" and "reflations" during periods of economic weakness and/or fledgling financial crisis. The much trumpeted "resiliency" of the U.S. economy and banking system owes almost everything to the capacity for the U.S. government and financial sector to endlessly create debt instruments readily accumulated by domestic and foreign holders. Additionally, I believe a strong case can be made today that long-term yields would be significantly higher if it weren't for the perception that the Bernanke Fed will aggressively cut rates at the first indication that the U.S. economic Bubble and/or Global Asset Market Bubble are beginning to falter. The blundering Fed apparently not only believes that the U.S. economy is more resilient than in the past, it presumes it now has significant leeway to cut rates and "reflate" when necessary.

But the financial world is changing rapidly and radically. The dollar is methodically losing its status as a stable and reliable reserve currency. At the same time, currencies generally are losing favor to real assets as stores of value. Understandably, market participants are questioning the will and capacity for central bankers and policymakers to stabilize the Unwieldy Global Credit system. It would at this point require a determined and concerted effort to instigate some serious financial and economic restraint, especially among American, Chinese and Japanese authorities. No one would dare hold their breath waiting for such an outcome.

With faith in the prospects for the dollar and global currencies in retreat, the U.S. is in the process of losing its invaluable competitive advantage issuing top-rated liquid securities. This has huge ramifications come the next period of financial dislocation. The Fed's intent to aggressively cut rates and incite yet another bout of lending and leveraged speculation (Credit Inflation) will likely be obstructed by the unwillingness of foreigners to accumulate more dollar IOUs. In the meantime, I believe the changing global landscape will necessitate that that the U.S. now pays an ongoing significant yield differential. Rampant liquidity and speculative excesses demand that global rates rise across the board, while the stability of the dollar depends upon the Fed's willingness to maintain significant rate differentials. Our foreign creditors will demand higher rates and much tighter monetary conditions, and the Fed's dream of wrapping things up before it gets painful faces the reality that our creditors are increasingly tired of getting hurt.

This week, markets began to demonstrate many of the characteristics one would expect when approaching a key inflection point. There was heightened volatility, spectacular short-squeezes, and palpable euphoria, along with some underlying angst that the more speculative stocks are gaining the most ground. There are also indications that the "smart money" is increasingly nervous and beginning to lighten up on some positions (including our currency). Yet it is amazing how many have completely bought into The Notion of a Golden Age of Permanent Global Prosperity; that the omnipotent Fed has everything completely under control; and that surging energy and commodity prices are but a sign of how wonderfully healthy the global economy is these day (ignoring that we are instead immersed in history's greatest Credit and Asset Bubbles). One should now be on guard for that exacting oscillation between "gee, things are just marvelously splendid" and the "oh my god, the end is near" – The Unpredictable Greed and Fear Seesaw – that will embroil global markets in a period of uncertainty and volatility.

The Invisible HandChina and Africa#1435164/24/06; 02:16:51

But now the old ties of communism are being replaced by capitalism.
There are concerns about Beijing's willingness to do business with countries whose governments have been the subject of sustained international criticism like Sudan and Zimbabwe.
China insists it is merely trading with these nations and adhering to its policy of non-interference in other countries' internal affairs.
The full (?) list of this week's triggers of $30,000 gold is available here

The Invisible HandIt's inflation, stupid!#1435174/24/06; 03:12:29

Gold is saying there's more inflation coming than what the Street or the official statistics are showing.

The Invisible HandNot inflation, hyperinflation, stupid!#1435184/24/06; 04:52:26

Hyperinflation like Weimar 1923: World System on Weimar Collapse Curve
The world is thus, now, in the terminal phase of a hyperinflationary collapse of not only the dollar-system, but the world-system as a whole. To bring this into focus, consider the elementary features of the way in which Federal Reserve Chairman Greenspan's lunacy orchestrated the 1987-2006 phase of the relevant hyperinflationary cycle. Keep three illustrative curves in view: 1.) my "Triple Curve," which, since January 1996, has described the general characteristics of the congoing collapse-function of the 1995-1996 interval; 2.) The curve of 1923 Weimar, Germany hyper-inflation; and, 3.) The current hyperinflationary rate of rate of increase of primary commodity prices, as led by petroleum and metals.

The Invisible HandConnect the dots??? Chinese Saudi collaboration???#1435194/24/06; 05:07:55
PRESIDENT Gloria Macapagal-Arroyo will be on a state visit to the Kingdom of Saudi Arabia from May 7 to 10 to discuss the oil price increase issue and boost ties between the Kingdom and the Philippines.
The Chinese in the Philippines have always been one of the largest minority groups, making up about 2% (1.5 million) of the country's total population.

The Invisible HandThe third dot was this#1435204/24/06; 06:10:56,,3-2149424,00.html

China pledges help to stabilise the Middle East
PRESIDENT Hu Jintao signalled yesterday that Beijing would play a greater role in the affairs of the Middle East when he paid a historic visit to Saudi Arabia, the main supplier of oil for China's growing economy.
Did Hu open the way for Arroyo?

The Invisible HandThe final (?) dot#1435214/24/06; 06:21:14

April 18, 2006
Chinese NPC chairman meets Philippine senate president
Chinese top legislator Wu Bangguo met with the President of the Senate of the Philippines Franklin Drilon on Monday.

The Invisible HandThe Prophet and Morality#1435224/24/06; 06:33:26
From Today's People Daily
At the beginning of the 7th century, founder of Islam Mohammed once said: learning, though as far as in China, should be pursued
China is an oriental ancient civilization while Saudi Arabia is the originating place of Islam. Both the Islamic culture and traditional Chinese culture belong to oriental civilization and consequently bear many similarities in social values and morals. Both China and Saudi Arabia stress the respect for cultural diversity, equal-footed dialogue and exchanges between different civilizations, and oppose cultural conflict and confrontation. This serves a common language between the two countries for further strengthening humanity exchanges and expanding cultural cooperation.
Muslim Filipinos
Muslims, about 5 percent of the total population, were the most significant minority in the Philippines. Although undifferentiated racially from other Filipinos, in the 1990s they remained outside the mainstream of national life, set apart by their religion and way of life.

968The Case for a New Plaza Agreement#1435234/24/06; 07:23:21

"Today there is a need for an initiative comparable to the Plaza Agreement, probably by the G-20 group of major industrial and emerging-market economies, which on occasion has dealt with international financial issues in recent years. Those countries that have been intervening in exchange markets to keep their currencies from appreciating against the dollar would pledge to quit doing so. Although Japan was accumulating dollar reserves massively in most of 2002 through early 2004, it has not done so since March 2004, and the European Central Bank has largely refrained from intervening to limit the rise of the euro (a central reason why the euro rose sharply against the dollar in 2002–04, whereas the yen rose much less). However, the Bank of Japan and the European Central Bank could undertake sales of dollar reserves as part of the overall package, and the United States could similarly undertake purchases of euros, yen, and perhaps other currencies.
In principle, each country would persist in this approach
until its exchange rate against the dollar had risen by a broad agreed range. The International Monetary Fund could be
asked to provide technical support in confirming appropriate
ranges for realignment of exchange rates for consistency
with US adjustments and individual country circumstances.
On the basis of table , it would be appropriate to specify
perhaps three tiers of countries. The first tier would include those with currencies that appropriately would rise some 40 percent or more against the dollar; a second tier, currencies that should rise by 5 to 40 percent against the dollar; and in a third tier, there would be no specific initiative unless the currency began to fall against the dollar. A reasonable time horizon for phasing in this adjustment would be three years.
On the basis of table , 3 countries would be in the top tier, including the key cases of China and Japan. Six currencies would be in the second tier, including the important cases of the euro, the Korean won, the Mexican peso, and the pound sterling. Again, however, even for most of the countries in thetop tier, the overall trade-weighted real exchange rate movements would be far more moderate, at less than 0 percent for China and 5 percent for Japan. The euro area, in the intermediate tier, would also have a cumulative real trade-weighted appreciation of only about 7 percent from the 2002 base. The United States would carry out its part of the adjustment process by setting forth credible plans for eliminating the fiscal deficit over the next five years. The economic reason for such a commitment is that an initial round of dollar depreciation without fiscal adjustment would tend to be frustrated because the resulting boost to US output with no curb in domestic demand would generate inflationary pressure, induce
monetary tightening by the Federal Reserve, boost interest rates, and as a result tend to bid the dollar back up. In terms of political economy, a US commitment to eliminate its fiscal deficit would counter countries’ otherwise understandable reaction against being asked to take action to solve a problem rooted in flawed US economic policies.
between Europe and the United States, and political shocks
in Europe (rejection of the EU constitution, political uncertainty in Germany, and ethnic rioting in France). Under these circumstances, there is a case for active exchange market intervention to guide the euro back toward a level consistent with accomplishing the part of the international adjustment task that would appropriately be borne by the euro-area economy.
Such action would be in Europe's long-term interest because
otherwise, in the absence of a coordinated Plaza II, the eventual pressures associated with an ever-widening US current account deficit could trigger a sharp upsurge in the euro, not only against the dollar but also against many other currencies held down by wrong-direction intervention. The euro-area economy could then wind up bearing a disproportionate share of the burden of foreign adjustment."

"The United States is running an increasing risk by allowing
its external current account deficit to head ever higher, past levels already historically unprecedented for the United States and most other industrial countries. A credible program to eliminate the fiscal deficit by 2010 combined with a Plaza II Agreement to achieve appreciation of a wide array of foreign currencies against the dollar would provide a sound basis for arresting this trend and bringing the external deficit back to a range of about 3 percent of GDP, which would be consistent with keeping the eventual ratio of net foreign liabilities to GDP at a prudent ceiling of about 50 percent.
Even without a formal Plaza II, US policymakers should
begin to press foreign central banks much more widely to desist from accumulating additional reserves. US authorities should greatly expand their focus to include most of the East Asian exchange rates rather than concentrating solely on the Chinese renminbi, as they have done so far. In principle, central banks should stop accumulating reserves until their currencies are on a path toward the type of corrections against the dollar indicated above. A Plaza II would greatly help in this process for three reasons. First, it would resolve the "prisoner's dilemma" for major developing and newly industrialized economies, in which each country acting in isolation fears loss of competitiveness. Second, it would provide a framework for coordinated intervention in exchange markets by major industrial economies (dollar sales by the European Central Bank and Bank of Japan and purchases of euros, yen, and possibly other currencies by the Federal Reserve). Third, by including a program for US fiscal adjustment, it would assure countries allowing their currencies to rise that the United States, too, was carrying out the needed policy corrections. . . . the central question is whether
policymakers should sit idly by if the market is providing the US economy with more than enough rope to hang itself."
Randy, any thoughts on this one ???
It is VERY interesting to note that in this entire study, the word gold(reserves) is NOT used at all...

The Invisible HandNothing can stop an idea whose time has come#1435244/24/06; 08:23:08

Here We Go: Russia Challenges Petrodollar Hegemony
An idea that has drifted around the margins of international discussion is finally out in the open. America has to decide whether it wants to work with the rest of the world to distribute economic power more evenly between the dollar and the euro, or whether it wants to squander the last of its hegemonic power on a desperate, and ultimately futile, gambit to remain in control.

The Invisible - dollar kaput - petroeuro superstar#1435254/24/06; 08:37:32

Iran Press: National Economy Must Be Kept "Immune From Foreign Tremors"
BBC Monitoring Middle East

Text of editorial by Mohsen Mehdian: "Ailing papers", published by the Iranian newspaper E'temad website on 20 April

Mr Powell's guess turned out right, American paper money is becoming isolated. In a speech entitled, "The end of the dollar's hegemony", the influential Republican representative in the American Congress pointed to a bleak future for the American economy. This representative who is committed to the Austrian free market openly stated that America's hostility towards Iran is due only to one thing, and that is the dollar
The rise in the price of oil, stagnation in world stock markets, demand for gold as a real reserve, the switch in foreign currency reserves to the Euro, alongside threats such as, the creation of the Iranian oil stock market, makes the crash of the petrodollar inevitable.

The Invisible HandMicrosoft -alarm#1435264/24/06; 08:53:47

Monsieur l’Avocat Bellis,

Le premier ministre de la Republique Populaire de Chine partage l'avis de votre client.
(The Prime Minister of the People's Republic of China supports your client.)

People's Daily Online, UPDATED: 17:38, April 24, 2006

Protecting intellectual property rights (IPR) is to respect knowledge, encourage innovation and protect productivity, said Premier Wen Jiabao on Wednesday during his visit to an IPR protection exhibition held in Chinese Military Museum in Beijing.

mdgcThe yen is flying#1435274/24/06; 09:14:39

Up 1.72% percent so far today. The euro and the Canadian dollar are both a bit weaker against the US dollar. Does anyone know why?
The Invisible Handmdgc#1435284/24/06; 09:28:08
Euro Strengthens Against Dollar
April 24, 2006 10:25 AM ET
The euro touched a seven-month high against the dollar on Monday following a G-7 call for flexible exchange rates and signs that foreign central banks may be diversifying their reserves.
The yen surged to its highest in three months against the dollar after the Group of Seven nations urged Asian countries including China to allow their currencies to strengthen.

mikal@mdgc#1435294/24/06; 09:29:44

I'm assuming it's because the Yuan was a major focus
of G7 and IMF meetings over the weekend. The Chinese gave indications that the Yuan would appreciate at a faster rate. The Yen is considered a proxy for the Yuan in Asia and many currencies there are expected to appreciate vs US$.

The Invisible HandAt "some point" oil will hurt#1435304/24/06; 09:52:25

IMF finds raison d'etre in policies of the past

The IMF has been surprised at the modest impact of dearer energy on the global economy, believing the inflationary effects have been mitigated by the credibility of central banks and by the competitive pressures of globalisation.
But, as the fund sees it, there is no law that says this state of affairs will persist. It argues that the full impact of high oil prices has yet to be felt, there are geopolitical risks of a further rise in prices and supply constraints mean that high prices are likely to persist for longer than they did in the 1970s.
At some point, the global economy will suffer deleterious effects from high oil prices; nobody is quite sure what that tipping point is, but it's a fair bet that a year of oil prices at $US75 a barrel would have a marked impact on growth.
Oil prices are exacerbating imbalances in the global economy.

GoldiloxOil will hurt?#1435314/24/06; 10:59:22

@ TIH,

While it's obvious that rising fuel and food costs hurt the fixed income retirees immediately, the corporations awash with cash are not feeling any pain from it. The top ten are all "profitting" in the 10's of billions, where only ten years ago, total revenues in the tens of billions were farely rare!

Hmmm . . . have we actually witnessed another 80% devaluation since then? If so, the hedonics have hidden it pretty well.

Let's face it. US "industry" now caters to the security crowd, usng government contracts to fund everything. The US, state, and local governments are the true customer of last restort. Not unlike 1933 Germany, I might add.

The consumer goods are produced elsewhere, so the "effects" of inflation are likely to have some lag added by globalism, itself.

TownCrierMaking money -- Fed's outright buying of Treasuries#1435324/24/06; 11:44:46

The Federal Reserve today entered the open market to buy Treasury coupons with an eye on propping the yield curve two years out, focusing on maturities and call dates from February to November, 2008.

In bidding up today's $1,096 billion tranche of U.S. Treasury debt, the Federal Reserve effectively created and added that much fresh cash to the 'permanent' money supply from which the commercial banking system can further expand the supply through their natural lending activities.

When new quantities of money can be created so easily, you know you need to be taking special steps to ensure that your savings is as good as gold. Walk "in the footsteps of giants."


TownCrierFrance's Breton: Global economic imbalances "scary"#1435334/24/06; 12:25:53

NEW YORK, April 24 (Reuters) - France's Finance Minister Thierry Breton on Monday said concerns were mounting among the world's richest nations over the yawning difference between the U.S. trade deficit and Asian surpluses.

"The difference in the gap we have between mainly Asia and the U.S. is starting to be scary for some of us," Breton told an audience at a conference in New York on global economic issues.

Breton also said that United States must begin the necessary but "painful" process of addressing its fiscal deficit, and said France had already opened a national debate on addressing its own budget shortfall.

"You won't be able to continue the way you are today," he said...

^---(from url)---^

Oddly, despite mind-boggling imbalances, many people are behaving as though we shall (continue the way we are today). Are they so distracted by entertainment (sports, movies, and what passes for news on the TV) that they don't have any sense of the world scene?


968Dollar risk to global economy outweighs yuan risk - China central banker says #1435344/24/06; 13:13:59


"China's central bank chief said the dollar represents a greater risk to the global economy than the yuan does."

"Rather than monitoring the yuan, global financial institutions should watch the US dollar, said Zhou Xiaochuan, governor of the People's Bank of China."

"Global trade, settlements and reserve assets are heavily reliant on a single currency,' Zhou said in remarks to the International Monetary Fund. 'The fund should give priority to establishing a surveillance and check-balance mechanism of the major reserve currency countries."
A check-balance mechanism of the major reserve currency countries : now that is something the Eurosystem with its MTM system will like...
If you hear this man speak, don't you think the PBC already has a lot of gold stored somewhere (e.g. in the BIS) just in case...

osa104cPanic at MARK>>>GO#1435354/24/06; 13:20:57

US$ to 85.40??.........golden sunsets and silver dreams???
TownCrierGold market news...#1435364/24/06; 13:58:46

SAN FRANCISCO (MarketWatch) --
"This week could prove quite important for gold as speculators [decide] whether to probe higher or to continue locking in profits," said James Moore, an analyst at in London.

"Gold should continue to find good support given the limited change in the macroeconomic and geopolitical picture, particularly with the U.N. Security Council's deadline on Iran approaching at the end of the week," he said in a note to clients.

For now, "dips generate good buying interest with support pegged at $618/$610," he added.

The Nymex announced margin changes for gold, silver and copper futures as of Friday's close. Margins for the gold futures contract increased to $2,250 from $1,750 for clearing and non-clearing members and to $3,038 from $2,363 for customers, Nymex said.

"This has caused some traders to pare down their positions and reevaluate their exposure," said Kevin Kerr, editor of Global Resources Trader. "However, there seems to be little lack of new buying on significant dips in the market."

The dollar slumped to a three-month low against the Japanese yen and a seven-month low against the euro Monday, after the G7 and IMF weekend meetings ... put the massive U.S. deficits into the spotlight in their focus on "global imbalances," a factor expected to further pressure the dollar.

Standard & Poor's Equity Research Services raised its 2006 year-end closing price forecast for spot gold to $710 an ounce from $600 on Monday.

^---(from url)---^


TownCrierMore gold market news...#1435374/24/06; 14:18:20

Gold, silver off in choppy trade, trend seen higher

LONDON, April 24 (Reuters) - Gold continued a rollercoaster ride on Monday, trading in a broad range below its 25-year peak, and silver took a beating, falling more than 8 percent.

Some investors booked profits from highs and price dips attracted new buyers, but overall sentiment remained upbeat, traders said.

Gold traded in a range of $20 an ounce, compared with an average $27 in the previous three sessions, but much higher than about $10 in the past weeks.

"The market has just become more volatile because the funds are getting in and getting out. It's very difficult to control the market, but it's not collapsing," said Peter Hillyard, head of metals sales at ANZ Investment Bank.

"The swings are going to be more significant, but the overall direction hasn't changed. It's higher," he added.

A weak dollar first pulled more money into gold, before easing oil prices took some of the worry out of inflation concerns, prompting a wave of bullion sales, dealers said.

Oil fell sharply after the Organization of Petroleum Exporting Countries promised to keep pumping near maximum capacity.

Merrill Lynch analyst Michael Jalonen said in a client note that in the short term the gold market should "gain confidence by virtue of holding above the $600-an-ounce level."

^---(from url)---^

The gold should also "gain confidence" as ever more investors and traders come around to an open-eyed understanding (that the metal can't be printed at will whereas derivatives can) and then adjust their investment decisions accordingly.


GoldiloxSidelines#1435384/24/06; 14:27:11

@ TC,

Your quote:

"Oddly, despite mind-boggling imbalances, many people are behaving as though we shall (continue the way we are today). Are they so distracted by entertainment (sports, movies, and what passes for news on the TV) that they don't have any sense of the world scene?"

so poignantly expresses the status quo! Bread and circuses!

But it's not like the media isn't complicit. Hour after endless hour of Martha and Michael Jackson, and Natalie the Aruba "party girl, "with nary a mention of Barrick/Blanchard, Duke Cunnigham (who got 8 years), or any of the other serious corruption investigations. Even the ENRON trials have had fairly sparse coverage overall.

Don't let the sheeple get the idea that their "leaders" are crooked and/or clueless! The "bad guys" are always loners!

USAGOLD Daily Market ReportPage Update!#1435394/24/06; 14:33:11">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

MONDAY Market Excerpts

April 24 (from Reuters) -- COMEX June gold fell $11.60, or 1.6 percent, to close at $623.90.

Gold initially rose overnight on bullish sentiment among investors, with bargain hunting evident at recently cheaper prices. But a tumble in crude oil from record highs above $75 per barrel to just over $73 depressed gold, and a weaker dollar failed to lend support.

COMEX gold has experienced a blistering five-year rally to levels not seen since 1980, when it reached a record $850. Futures got as high as $649 last Thursday.

Many analysts expect the gold rally to resume this year.

Standard & Poor's Equity Research Services said Monday it raised its 2006 year-end closing price forecast for gold to $710 an ounce, from $600 previously.

"In our opinion, the supply and demand dynamics have set the stage for a multiyear bull market for gold," said Leo Larkin, a senior analyst at S&P.

"The gap between production and consumption of gold should widen as output likely stagnates and physical demand rises."

"Additionally, the inflows into commodity funds, based on the belief that tangible assets will outperform financial assets, and continued strong consumer demand from India has helped boost the gold price," added Larkin.

Both oil and gold have risen recently, thanks to jitters over Iran's refusal to back down on its nuclear program, despite a pledge to keep oil supplies flowing. In Tehran, the foreign ministry has said Iran's decision to enrich uranium was irreversible, despite the threat of sanctions or military action. This has heightened fears of a disruption in supply from the world's fourth-biggest oil exporter.

Meanwhile, the dollar slid to a seven-month low against the euro after the Group of Seven said China should let the yuan appreciate as a way of fixing global imbalances.

---(see url for full news, 24-hr newswire)---

TownCrierDollar's competition grows -- Lithuania to lobby EU over euro#1435404/24/06; 15:09:32

VILNIUS (AFX) - The Lithuanian government said it plans to send an official letter to the European Commission to argue that the country has met EU requirements for joining the euro in 2007.

Lithuania joined the EU in May 2004 and wants to replace its national currency, the litas, with the euro from January 1.

"Lithuania has been participating in the ERM II mechanism for two years and meets all Maastricht requirements -- on state debt and fiscal deficit", Lithuania's finance minister Zigmantas Balcytis told journalists.

"We would meet inflation criteria too if the figures were rounded off."

...Euro zone finance ministers warned at a meeting in Vienna on April 7 that there would be no exceptions made for euro zone hopefuls which are struggling to meet the standards required for joining...

^---(from url)---^

A fair assessment of fate of the dollar (and its bonds) as a reserve asset requires the following perspective. It would be pure hypocrisy for the ECB on the one hand to profess strictness regarding the budgetary prudence of current members (and would-be member Lithuania) and to garner respect for its policy against providing direct support of govt funding gaps with outright purchase of its own members bonds, while on the other hand it could be seen holding any significant amount of U.S. debt.

To maintain its stance as as a responsible monetary agent and eliminate the spectre of hypocrisy, the ECB needs to be understood to be taking measured steps toward the elimination of this asymmetric system of foreign support -- to show a continuing trend of paring the size of its holdings of U.S. Treasury securities.

With not much room for anything else (as a matter of policy), the evolving structure of reserve assets will certainly show gold to have an increasingly prominent role.


GoldiloxGold, Dollar, and FED#1435414/24/06; 15:10:22,-Dollar-and-Fed/17351/


Fed may not be able to defend dollar if rates remain low for too long.

This is only a scenario but if the Congress and the Fed do not mend their ways then slow but steady pace of the dollar decline is unstoppable. Everyone is looking for a crisis but steady and painless drift of dollar may pose a greater danger.

It is argued that the U.S. has sustained trade deficit for forty years and still managed to raise living standards. That is true and false. Yes, we have created two million jobs every year for the last thirty five years. But we created same number of jobs when we had 220 million citizens, in the seventies and eighties, and now when we have 300 million in the year 2006. The share of less than $15 per hour job in the labor pool has grown when total number of jobs created has not. In fact, Wal-Mart claims to create 220,000 jobs a year in this country adding up to 10% of all jobs.


This is the final paragraph of what seems to be a pretty good analysis. The rest is well worth reading.

TownCrier968, "new Plaza accord"#1435424/24/06; 15:51:53

My thoughts are that this is yet another prime example where lack of mention of the gold component, being so very conspicuous by its absence, serves roundabout as confirmation of its utmost importance -- that it's position in the progression of affairs is so vital that no one dare add heat or intrigue to the situation by calling any amount of attention to it.

And yet this same conspicuous absence replays itself over and over in almost every dollar-reserve related policy brief, whether it be for a "new Plaza accord" as seen in this paper or for general reforms of the IMF as discussed elsewhere.

This cannot be attributed to inapplicability or irrelevance, because the gold component of current reserves is a VERY significant proportion. And it also can't be chalked up to mere oversight or ignorance because it is statistically improbable that that many policy-offering economic agents could ALL be that clueless.

But then again, those with the deepest insight typically have less to offer freely for public consumption.


Topazwoops!#1435434/24/06; 16:08:55

I think they've overdone the Silver "downside management" thingie this time through.
Usually Gold can be driven down at this point in the Month as the deliveries have all but finished however, Comex non-delivery month Silver totals 2000 odd contract equivalents with 600+ going through today.

Gandy, unshackle the Hounds!!

The Invisible HandPlaza II : dollar-currency-reserve VERSUS gold-wealth-reserve#1435444/24/06; 20:23:36

Wikipedia, the free encyclopaedia, says that the Plaza I Accord was an agreement signed on September 22, 1985 by the then G-5 nations (France, West Germany, Japan, the United States and the United Kingdom). The G-5 agreed to devalue the US dollar in relation to the Japanese yen and German Deutsche Mark by intervening in currency markets.

These days, the revaluation of all currencies vis-à-vis the dollar is already happening. During this IMF week-end, the yen shot up significantly (chart-technically) vis-à-vis de dollar. The euro is also raising vis-à-vis the dollar and the yuan will provide the necessary assistance.

It will be necessary for all currencies to act in concert.

This can occur in an orderly manner as long as none of the rising currencies is going to cheat and thus to take more advantage (commercial profit) out of Plaza II.

We will have to see whether the yankees will lower their expenses and consumption and/or whether they will start saving.

It is to be feared that the currency exchange rate adjustment will not occur in an orderly manner and the whole revaluation is thus a fruitless attempt to restore the dollar to acceptable deficits.

Today's world is no more the 1985 world.

In order to achieve anything in this field, the field of economics, we need a brutal dollar-devaluation. This is impossible because of the existing imbalances. The damage (economic loss) which this will create for the surplus makers cannot be foreseen.

Plaza II is thus a mere theoretical mental exercise. Global economic peace is one thing. The number of losing parties who no longer want to swallow the dollar-IMF mismanagement is a completely different thing.

We will continue to bungle on and to be eroded by the canker of the dollar mismanagement entailed in the Anglo-American financial/economic attitude.
And Britain, while not in the euro-area, is still a member of the European Union (EU). Hence, I was surprised to see no reaction to this:
The Invisible Hand (4/23/06; 05:47:00MT - msg#: 143498)
More from The Observer: sterling to collapse with dollar,,1759567,00.html
The oil crisis of the mid-1970s took place after a period of strong economic growth, and was seriously inflationary. The latest crisis takes place when growth in the eurozone has been anaemic, and unions have precious little bargaining power - even though the unions in Germany are going through the motions.
If the pound goes down as well as the dollar (but presumably not as much) this may alleviate the problems of Britain's manufacturers.

This explains why, while the dollar and its satellites are losing all their value, gold more and more clearly displays its role as wealth-reserve.

The dollar or any other currency is intrinsically worth zero. If you have only other currencies in reserve, the optimal reserve quantity can only be useful for the management of your own currency. Reserves made up of currencies have therefore NO wealth value … only a functional utility (use-value).

Is it therefore logically surprising that Another reserve is flowing away from the dollar context and flowing closer to its NEW status as WEALTH RESERVE?

Goldbugs would do well to operate an essential and fundamental distinction between dollar-currency-reserve and gold-wealth-reserve.

The Invisible HandWarning: Euro May Be Terminal#1435454/24/06; 21:56:14

BRUSSELS, April 24 (UPI) -- Another respected European economist is warning of the euro`s collapse unless there is progress towards political union.
Paul de Grauwe of Belgium`s Catholic University in Leuven is warning the euro is bound to collapse in 10 to 20 years because there is no clear movement toward political union in Europe, the EU Observer reported Monday.
Last week a new member of the European Central Bank`s board, the German Bundesbank`s vice president, made a similar point.
'I am concerned about these trends because monetary union ... needs a common political foundation and a political commitment to function smoothly,' said Jurgen Stark.
The 12 European nations using the euro have a 2 percent average increase in their gross domestic product and unemployment that is close to 10 percent, or more.
So, it won't be this week, gold can still wait 10 years before reaching $30,000.

DruidSweet deals: Behind the Iran 'crisis' #1435464/24/06; 22:41:07


"On reading the recent wave of stories concerning US readiness to bomb Iran back to the Stone Age unless it gives up efforts to produce nuclear weapons, my first reaction was to be "shocked and awed". But then a realization sank in. All this noise concerning Iranian nuclear preparations was, as William Shakespeare had it, "a tale ... full of sound and fury, signifying nothing".

As a former director of an oil exchange with recent experience in Iran due to my involvement in a proposed Iranian oil bourse, it has

been clear to me for some time that the nuclear issue is a red herring. But I confess that it had puzzled me for some time why everything except oil is going to be privatized in Iraq.

"It's good for the US," I thought.

Well, I did until I recently read an analysis by Greg Muttitt of the plans by Big Oil to enter 40-year Production-Sharing Agreements (PSAs) with Iraq. The deal is this: we develop your oilfields, and in return we get - for 40 years - a major share of your crude-oil production at favorable "at cost" prices. The outcome will be profits beyond the dreams of avarice.

Once these contracts are signed, of course, global institutions (backed by US policing) will ensure that they are honored, whatever happens subsequently in Iraq, and whatever countries are able to influence policy in Iraq. The fact that there is still a US base in Cuba, for instance, illustrates how rigorously international treaties and the rule of law may apply despite differences in ideology.

Does anyone seriously believe that decision-makers in the US would countenance a bombing campaign that would almost inevitably lead to crude oil at US$150 per barrel, whether or not that suited Big Oil? "

Druid: This is a pretty good read to get you thinking in a certain direction concerning long term forward oil contracts at preset prices. Where have we seen this before? Enjoy the read.

The Invisible HandBB stresses importance of MTM eurogold as gold-wealth-reserve#1435474/24/06; 22:52:54

In an interview in the Monday edition of the Frankfurter Allgemeine Zeitung on the sidelines of the IMF-meeting, Bundesbank President Axel Weber opposed further competences for the IMF in regulating exchange-rates.
The IMF should concentrate on its main tasks. The INF has been instituted to be an umpire in questions relating to exchange rates. (The Invisible Hand probably misunderstood this last sentence. Knallgold, du?)
The IMF is being financed by interest income from credit to countries in financial crisis. Some large debtors like Brazil and Argentine have in the past years paid off their obligations vis-à-vis the IMF. According to Weber, the fund has (will have?) a structural financing problem soon
The Invisible Hand's knowledge of German is too bad.
Herr Knallgold, bitte!,
when the supervision function will be strengthened with the costs of the financial help????)
The IMF must therefore decrease the number of its tasks. The rest, The Invisible Hand doesn't understand, except the final sentence:



Bundesbank-Präsident Axel Weber hat sich am Rande der Frühjahrstagung des Internationalen Währungsfonds gegen weitgehende Kompetenzen des IWF bei den Wechselkursen ausgesprochen.
Der IWF solle sich auf seine Kernaufgaben konzentrieren, sagte Weber in einem Interview mit der "Frankfurter Allgemeinen Zeitung" (Montagausgabe). Dazu gehöre eine schärfere Überwachung von Wechselkursen: "Von einer Rolle als Schiedsrichter in Wechselkursfragen, womöglich noch unter Zuhilfenahme numerischer Werte von mutmaßlichen Gleichgewichtswechselkursen halte ich aber nichts."
Der Fonds finanziert sich unter anderem mit Zinseinkünften aus Krediten für Länder in Finanzkrisen. Einige große Schuldner wie Brasilien und Argentinien tilgten in den vergangenen Jahren ihre Verbindlichkeiten gegenüber dem IWF. Der Fonds steht Weber zufolge vor einem strukturellen Finanzierungsproblem, wenn die Überwachungsfunktion zu Lasten der Finanzhilfe verstärkt werden soll. Der IWF müsse deshalb seine Ausgaben senken. "Aber wird werden wohl nich umhinkommen, uns auch Gedanken über andere Einnahmequellen zu machen", sagte er. In der Diskussion seien Gebühren für Dienstleistungen des IWF, die Schaffung eines ertragbringenden Investitionskontos und der Rückgriff auf eigene Reserven. "Über die ersten beiden Punkte kann man reden, den Abbau von Währungsreserven durch Goldverkäufe halten wir aber nicht für zielführend."


the ***-increasing-*** DISTINCTION between
gold-wealth-reserve, meaning marked to market (MTM) eurogold, of course.

The Invisible HandTax is theft. Government is fraud!#1435484/24/06; 23:03:24

The thief doesn't come back periodically.
Nor does the thief pretend to be stealing in the public interest.

Title: Little will in US to hike gasoline taxes-Bodman

The Invisible Hand:
There is no political will
How they're gonna solve the budget deficit?
Have the anarchists won the day in Washington, DC?
Ni dieu, ni maitre.

The Invisible HandMarc Faber Says Gold May Rise 10-Fold #1435494/24/06; 23:15:42

April 25 (Bloomberg) -- Marc Faber, who told investors to bail out of U.S. stocks a week before the 1987 Black Monday crash and began recommending commodities at the end of 2001, said gold may rise 10-fold in the next 10 years

So we have

Marc Faber saying gold has 10 years to rise


Paul de Grauwe saying that the euro has 10 years to collapse (The Invisible Hand (4/24/06; 21:56:14MT - msg#: 143545))

The Invisible HandThose krazy Indians from Mumbai#1435504/25/06; 01:17:06
If you love to invest in gold, then you will soon be able to do the same without physically owning one gram of the precious metal.
The Securities and Exchange Board of India (SEBI) is giving final touches to guidelines, to be issued shortly for introducing Gold Exchange Traded Funds (ETFs) to facilitate Gold and Real Estate to be traded by Mutual Funds, according to A.P. Kurian, Chairman of the Association of Mutual Funds in India (AMFI).

ToolieAnother#1435514/25/06; 05:29:09

Note the date!!!!
Date: Tue Apr 25 2006 06:52

Snip: All:
We have seen the last of cheap oil priced in US Dollars as the oil states are no longer taking paper gold! This change in trading is having a great impact on the price of oil, the price of gold and the USD. (end snip)

Toolie@ Another#1435524/25/06; 06:28:39

****Without real physical to supply the oil states, they are now bidding for gold with oil! The BIS will do the only thing they can, halt all trading and declare gold a "world oil currency"!****

There was talk some months back about London defaulting on paper silver. Has there been default on paper gold? Is oil now bidding for gold in the commodity markets, rather than securing supply from BBs? Or do I misunderstand you?

The Invisible HandWhat's happening?#1435534/25/06; 06:56:39

Is this
President Bush, under pressure to do something about gasoline prices that are expected to stay high through the summer, has ordered an investigation into possible cheating in the markets.

a precursor to this

The Invisible Hand (4/24/06; 20:23:36MT - msg#: 143544)
It will be necessary for all currencies to act in concert.
This can occur in an orderly manner as long as none of the rising currencies is going to cheat and thus to take more advantage (commercial profit) out of Plaza II?

The Invisible HandMad Money according to the AngloAmerican nightmare#1435554/25/06; 07:49:37

The funny thing about the continuing proliferation of paper gold (exchange traded funds, ETFs) is that more and more speculators have no gold metal in possession … WHEREAS THE CONCEPT OF GOLD WEALTH STEADILY PROCEEDS.

This is "funny" because it demonstrates the desperation of the gold-price administrators.

"Desperation" because paper gold can no longer be used (abused) to freeze the price of gold.

Quite to the contrary, paper gold has the unintended consequence of stimulating the price of gold to new heights
BECAUSE the giants in whose steps we are following can now fully take advantage of "Peak Gold", the idea that gold production is now near its maximum level, and that from here on out new production will be flat or declining.

ETFs can only delay or temper gold price increases.
The proliferation of derivatives will at a certain moment explosively strengthen the underlying fundamentals.

But, for the financial industry, these are worries for later.
A drug addict also knows what will be her end
(except if she's a medical doctor and has easy access to drugs, then her end will be different, i.e., she will not have the end of the "normal' drug addict –
are gold bugs the equivalent of the drug addicted medical doctor, just as the drug addict is the equivalent of the derivatives addict?)

All the money (digit) pools which are addicted to derivatives MUST participate in this scheme in order to achieve profit.

When the manufacturer can no longer sell anything, she will have her product financed by the prospective buyer. This is nothing else than the "the original AngloAmerican dream"...or rather nightmare.

At the end of day, we have achieved an "industry" which has burdened many future generations with gargantuan debts. This is the era of the "happy-trading" of nothing. Mad money!

The Invisible HandA kung fu dollar collapse#1435564/25/06; 08:00:57,,13129-2150322,00.html

Is dollar's shift the start of something nasty?

THE dollar lurched sideways on the foreign exchanges yesterday in what optimists hope will herald a smooth adjustment but pessimists fear could be the start of something nasty
And if the dollar starts rolling downhill, it could set off capital movements that would drive financial markets and commodity speculation into paroxysm. Officials hope for a tai chi dollar devaluation, not a kung fu collapse.

Tai Chi, is a genuine path for health and tranquility.

MKToolie#1435574/25/06; 08:43:17

One man's opinion. . . . Another imposter.
contrarianInvisible Hand--Bush and Investigation into Oil Market#1435584/25/06; 08:55:53

I think this is just posturing to be shown as taking action on this issue, as it is a sensitive one to least as long as voters are completely clueless about the reality of Peak Oil...having been hypnotized TV, silly talk shows, celebrity obsessions...and at least denied the opportunity to find out about this by shallow, obesiant, self-serving media. It never ceases to amaze me to hear the reaction by the average Joe on the street to high gas prices as a solely function of oil company greed, it's almost a Pavlovian response, as if the game can go on forever for SUVs and there's an unlimited supply of oil....completely clueless.

There's nothing Bush can do about this, he's helpless...well, apart from cutting the gas taxes, that would certainly lower the price!

Toolie@ MK and IH#1435594/25/06; 08:58:12

MK--The thought had occurred to me.


TIH--PlazaII -- seen that movie before, didn't care for the ending.

KnallgoldTIH #143547 lost intransaltion#1435604/25/06; 09:16:12

In an interview in the Monday edition of the Frankfurter Allgemeine Zeitung on the sidelines of the IMF-meeting, Bundesbank President Axel Weber opposed further competences for the IMF in regulating exchange-rates.

The IMF should concentrate on its main tasks.This includes a more strict surveillance of exchange rates "I hold nothing from a role as an arbitrator in exchange rate issues,possibly with the help of numeric numbers of presumed equilibrium exchange rates" (KG:strange sentence-did he in fact question the unilateral IMF/$ reserve system,just with camouflage words?).The IMF proposed to strengthen its watchdog role for the worldeconomic stability.They would also do a half-yearly study on balanced exchange rates on emerging countries.

Most members are skeptic about this so called fair exchange rate because of its impact on currency markets.China asked the IMF to respect its members autonomy.Weber said it should put more emphasis on exchange rate policies and the consequences for the world economy.He particularly criticised Ratos proposal of a new credit facility as it would dampen credit risk perception of investors and that it is not in accordance with the IMF's financing structure.

The IMF is being financed by interest income from credit to countries in financial crisis. Some large debtors like Brazil and Argentine have in the past years paid off their obligations vis-à-vis the IMF. According to Weber, the fund will have a structural financing problem when the surveillance function is strengthened against financial aid.The IMF has to reduce its expenditure."But we can't avoid to think about other incomes" he said.Discussed are charges for services,creation of an income bearing investment account and regress on its own reserves."We can discuss about the first 2 points,but the dismantling of currency reserves through Goldsales will not help to achieve our goals".

GoldiloxCatherine Austin Fitts#1435614/25/06; 09:35:45

Read It and Get It (link provided at URL)

Catherine Austin Fitts' "Dillion Read & Co. Inc. and the Aristocracy of Prison Profits." Chapter 1: "Brady, Bush, Bechtel, and "the Boys". "Make a law, make a business," indeed.


Those who have lurked here a while remember that Fitts was the US Treasury auditor blackballed for investigating the disapperance of over a $Trillion in HUD funds.

She is now the leader of a local investment movement called "Solari Network", stressing the need for local communities to control their own capital in order to recover from the ravages of international banking. She has been interviewed extensively on shows such as Puplava's FSN.

This is a "must read" for anyone who wants to see the real depth of corruption in the corporate oligarchy. Included chapters cover RJR, Bechtel, and the Mena AR drug cartel.

Why must the charade continue as long as possible? So the BOYZ can harvest as much wealth as possible before the collapse. It adds a lot of credence to the theories of hyperinflation before deflation.

mikal"Consumer CONfidence highest in X years"#1435624/25/06; 09:45:31


Dear Mr. and Mrs. XXXXX:
You were selected to receive this important poll on
the United States of America because you have been identified as longstanding, patriotic citizens and registered voters.
Your participation in this government survey is strongly encouraged.
Just a few quick questions about the strength of
the United States economy.
Because the results of this survey are processed using modern, high-tech Diebold tabulators, only a microscopic sample is required to produce this vital, irreplaceable portrait of America.
The country and spending are strong and growing stronger. That should continue, wouldn't you agree?
Answer here: "Umm yes, YES absolutely!"
American's are very satisfied income tax is fair. T or F?
Answer here: "Uh, TRUE, of COURSE!"
The United States has the best way of life and
you and your family plan to remain in this country. T or F?
Answer here: "Yes, YES, HELL YES!"
Thank you for participating in this important Hallib-Acme survey.

Goldilox"Dillion Read & Co. Inc. and the Aristocracy of Prison Profits"#1435634/25/06; 10:33:50


I just finished reading the Fitts article in its entirety. For those who thought the "Money Masters" was informative, Ms Fitts gives a much more detailed insider's view of everything from Government drug dealing and finance fraud to corporate prison profiteering.

If you haven't read her story, she spent $millions in legal fees to avoid those very corporate prisons when she started blowing the whistle at HUD and her previous "partners" came at her with a vengence.

It's not surprising that many of the information giants like Belgian do NOT want to be around when TSHTF, as it will be sprayed far and wide, with little regard to who gets "dirtied" in the process.

USAGOLD / Centennial Precious Metals, Inc.FREE Gold Information Packet...#1435644/25/06; 10:42:08

USAGOLD Daily Market ReportPage Update!#1435674/25/06; 14:36:02">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

TUESDAY Market Excerpts

Gold up $10 as funds buy in

April 25 (from Reuters) -- Precious metals futures closed with sharp gains on Tuesday as bullish investors rebuilt part of their positions after a huge correction since last week, though most prices held below recent multiyear highs.

Increased volatility in gold and silver markets, coming after respective spikes to 25- and 23-year peaks, was creating some whopping daily price moves, but the market's long-term upward trend remained intact, analysts and traders said.

"Though metals prices have indeed risen strongly, those gains have come from ridiculously low prices reached at the end of a 20-year bear market," said Peter Schiff, president of Euro Pacific Capital in Darien, Connecticut.

"Despite the current run-up, precious metals prices remain well below normal levels, when measured against other assets," Schiff said in a note.

Aggressive fund buying lifted gold, as investors appetite for commodities and various metals returned on Tuesday. A weak dollar early in the day also boosted the yellow metal, which traders sometimes turn to as an alternative to the U.S. currency.

COMEX June gold futures rose $10.30, or 1.65 percent, to $634.20, in a range of $621 to $638.

---(see url for full news, 24-hr newswire)---

MKGold notes. . .The Coming Dollar Devaluation#1435714/25/06; 14:55:23 Sorry for the reposts, my fellow goldmeisters. Trying to do this between phone calls and various interruptions here just isn't cutting it. I have more to say on this than the brief post below. I'll try to say more later. . .

With respect to my recent post on The Coming Dollar Devaluation, I herein provide the link to the FOMC meeting minutes on the Fed's newly confirmed power in the forex markets (With thanks to our sitemaster). Going forward, this extremely important policy move (one of the last by the Greenspan Fed), though stated briefly and matter of factly, could go down as one of its most important ever. There is certainly more here than meets the eye.

The Fed will now be able to conduct forward purchases and sales as well as swaps in the forex markets. The New York Fed will act essentially as broker. Among the currencies targeted are the euro, yen, pound and Swfranc. Conspicuously absent in the list is the Chinese yuan mostly likely because it is pegged to the dollar anyway - so any action for or against it would be immediately neutralized by the Chinese central bank.

As mentioned previously, I see this as part and parcel of a battle to devalue the dollar once and for all against competitive currencies. This is not a warning shot across the bow; it's a torpedo shot midship. When you combine this action with dumping M3, the recent IMF announcement on depreciating the dollar and the strong press put on the Chinese to revalue the yuan, it is evident that the U.S. Federal Reserve and Treasury Department are approaching the devaluation the way the military would prepare for war.

And a currency war it very well might be.

Anyone who left the G7 meeting thinking they had just participated in another meaningless rhetorical exercise may have to re-evaluate. The Federal Reserve will now use the same tactics employed by other central banks in the forex markets. With the new Fed powers, the devaluation policy, should the Fed choose to use them, will have teeth.

GoldiloxFED in the FOREX#1435724/25/06; 14:59:54

What this means in layman's terms in that the bank has entered "the game".

Now, in addition to printing dollars at will, the FED can also use them to prop up or raid any other currency at will.

Any hope of an "even" playing field is gone at this point.

The "free markets" become casinos more and more with each move.

Make a law, make a business!

FlatlinerThis is not good.#1435734/25/06; 15:02:35

Paper will burn and gold will shine.
TownCrierThe Fed in foreign currencies...#1435744/25/06; 15:44:03

Ever one to try to find the positive element in anything, to the extent that we might agree that the buildup of huge foreign exchange positions among, especially, the emerging markets has been a point of consternation, I am somewhat heartened to see the Fed pay lip service, at least, to keeping its own open position as an absolute sum of all foreign currencies curbed at a humble $25 billion. (To be sure, individual currency swaps which net out could be huge and used with effect during life of the agreement, but at least these don't carry the same asymmetric stigma as do reserves of foreign currency held on a net (+) basis.)

Imagine if China pared its $800+ billion down to $25...

See my "Lithuania" post of yesterday (msg#: 143540) for more commentary around the edges of this reserve subject.


ausomedollar devaluation#1435754/25/06; 15:58:45

MK nails it please review the work of FOA
FlatlinerHave I got this right?#1435764/25/06; 17:11:00

So the Fed has been given the right to buy other currencies on the forex market. This would seem to imply that they will have the ability to create more demand for other currencies. When demand for other currencies goes up, one would think that the price of the other currency would go up. Supply has been removed (gobbled up) by the Fed, thus making the other currencies appear more valuable. One would think that if the Fed did this with all currencies they could drive every one of them up a little making the exports from the US more attractive on the world market.

But, as the world has seen with China, they've solved this problem my filling the demand with extra (freshly minted) supply thus giving them a ‘peg’ on the dollar. Thus, this game doesn't work against countries that fight demand with fresh supply.

Now MK has pointed out that the target is the euro, yen, pound and Swfranc. Did we see some of this action yesterday with the yen? (I don't know.) One has to wonder if the managers of these named currencies will print to fill the extra demand thus keeping their currencies ‘relatively’ stable against the dollar OR will they simply try to keep their currencies stable amongst themselves?

This will be a most interesting game to watch. Gold and Oil are priced in US dollars. Thus, any effort on the Feds part to drive up these other currencies is going to have the affect of making Oil and gold cheaper to the citizens that live in these countries. One would expect that Oil exporting countries would see this as robbery and raise prices in US dollar terms or switch to another currency for trade. Those wanting gold will find it more advantageous to trade using the stronger currencies – because they will buy more gold.

Ah… death has tolled for the US dollar!

GoldiloxOil Prices#1435774/25/06; 18:24:33

@ Flatliner,

"One would expect that Oil exporting countries would see this as robbery and raise prices in US dollar terms or switch to another currency for trade."

Oil prices are set at the bourse auctions, so the producers only real opportunity to raise prices is to curtail production and watch demand rise, which nets them higher margins on lower revenues.

But since the US invasion of Iraq has already cut output for them, they will sign more delivery contracts to other nations, forcing the US oil companies to scratch for remaining supply.

We already see that a number of nations are at least jawboning reduction of US dollar reserves. It will be even more interesting to see if they are just threatening, or pre-announcing real moves.

GoldendomeAudio interview with Paul Van Eeden on the U.S. Currency#1435784/25/06; 19:12:08

An interview with Paul Van Eeden in which he gives a very detailed and well explained analysis of what is happening and probably going to happen in the currency and bond markets--all favoring gold. This interview was April 3rd on Howe Street. About a 15 minute interview if you have audio capability.
The Invisible HandHayek, China and the Ancien Regime#1435794/25/06; 19:16:35

Dollar may feel sting after G7 fingers China (Reuters)
WASHINGTON, April 21 (Reuters) - The overall message that markets will take away from finance officials from the Group of Seven rich nations who met on Friday is quite simple: the dollar will decline.
The ominous combination of a widely forecast slowing of the U.S. economy this year, growing fiscal and trade deficits, and increasing international pressure on China to allow its currency to strengthen ultimately puts a spotlight on the dollar's weak underbelly.

By hyper-focusing on China, Japan is indirectly also under the spotlight. Japan has always been a loyal advocate of the dollar because of its forced US export serfdom after Hiroshima. During the war, Friedrich August von Hayek had however warned in his 1944 book "The Road to Serfdom", that collectivism implied a "social planning" which is incompatible with freedom.

Is China perhaps a lot less dollar-system-friendly … and can China therefore be forced, in order to please the dollar economy, to throw its surplus dollar reserves in the dollar economic system to be scrambled for?

The AngloAmerican dollar economy grounds her economic dominance/supremacy on plain direct and indirect military menacing/threatening. This means that the Plazas are far less motivated by common sense, than one should expect.
Anybody who does not willingly accommodate the workability of the Ancien Regime will have to deal with the military logic of the said AngloAmerican dollar regime.

This obsession with growth was driven by the proliferation of debt which mainly serves the dollar-alliance.

At the end of the day, it is also "this" principle (?) which explains the democratisation of the Middle East. The recycling of petro-dollar surplus in the AngloAmerican dollar economy.

And if you don't allow us to do this, we'll bomb you.

As Hayek wrote in his July 1975 Occasional paper 45 of the London Institute of Economic Affairs "Inflation, the Misdirection of Labour, and Unemployment", reprinted in Nishiyama and Leube (eds.), "The Essence of Hayek", Stanford, CA, Hoover Institution Press, 1984., pp. 8-17:
… among the feasible monetary systems the international gold standard is the best, if I could believe that the most importance countries could be trusted to obey the rules of the game necessary for its preservation. But this seems to me exceedingly unlikely, and no single country can have an effective gold standard: by its nature it is an international system and can function only as an international system. (pp. 15-16)

And he concludes, p. 16,
It would seem as if in Britain, the country in which the harmful doctrines originated, a reversal of opinion were now under way. Let us hope it will rapidly spread over the world.

That was 1975. We're now one generation later.

Some will never learn. Circumstances/facts will force them to recognise and do what Hayek told them two generations ago.

Ten BearsBlaming it on Greenspan By DANIELLE DiMARTINO #1435804/25/06; 21:54:07

Greenspan created a huge trade deficit. Here again, though, people don't blame him. They just think it's globalization. For most economies, free trade refers to goods, but for Greenspan it meant the free trade of capital. He pushed for the deregulation of the free flow of capital across countries, but the result was that the U.S. dollar would not fall anymore in response to trade deficits. In the past, the dollar would quickly eliminate trade deficits.

The tipping point will be the bursting of the housing bubble. Much of the housing bubble has been financed by foreign purchases of mortgage-backed securities. The problem is, many of these loans have been backed by a fraud of their own – unqualified buyers have been given loans by the mortgage industry because the lenders.

Finally, in 2008, the real housing crunch will come, with price declines in much of the nation.

The real problem is the extreme concentration in the oil industry; I call them the five bullies. All Bernanke needs to do is mention the concentration and that they should be broken up, and you would see the price of oil fall sharply.

So what's the solution? Is there a way out?

There is, and it's consistent with free trade. I would propose a dual exchange rate system like those in Japan and China. If we could fix our export exchange rate, our exports would rise sharply as the prices of our goods fell overseas. We would let all international transactions continue to occur at the free-market dollar rate.

And from George Ure, "Now you may recall that I recently published a note from sources that there were reports of "red currency" being in place in strategic centers outside of the United States - apparently in preparation for a two-tiered currency system. The way such currency works is this: Money outside the US would have one exchange rate, while money inside the US would have another."

Ten msg#: 143580 DANIELLE DiMARTINO discussion with Ravi Batra #1435814/25/06; 22:04:57

The Invisible HandNot only the lunatics from DrudgeReport and NewsMax#1435824/26/06; 01:26:37

DOHA — Organisation of Petroleum Exporting Countries (Opec) ministers meeting in the Qatari capital were warned yesterday that continued higher oil prices threatened global economic growth, which could trigger a collapse in demand for oil and hurt producer states.

The Invisible HandStop viagrising the dollar!#1435834/26/06; 03:17:38

Ben Ravi Batra is on the payroll of the US of A. His impartiality can therefore be doubted.

We are told that the high price of oil is the result of fraudulent speculation (profiteering) by the oil traders. Ravi tells this precisely on the day after Bush has sent his oil message into the world.

This is pure perception building by a charlatan who invokes, or at least relies on, his authority as a university teacher.

How can the dollar-price of oil decrease when one wants to let the (external) dollar decrease vis-à-vis all other currencies? This is a contradictio in terminis, a contradiction in the concepts themselves.

Then the babble about the double exchange rate of the US of A dollar WITHOUT mentioning that the babbling is about the "world reserve currency".
In other words, the yankees are going to determine what is the exchange rate of the currency which is the reserve currency of the world.
All this without mentioning the EURO.

When Alan the First will have died, it will be easy to point to Him as a culprit. (my fingers are like my hand.)

Ravi is therefore totally silent about gold. This has been different in the past. Gold's behaviour is approaching the euro-concept and must therefore be ridiculised at all cost.

The housing-bubble will NOT implode. The stock-market will NOT crash.

Our masters are always talking about the mismanagement by Alan the First. But in the meantime, they are continuing His mismanagement, crescendo!

Our masters are always talking about alternative energy. But what are they doing to arrive at alternative energy? How do they reconcile that with peak oil? Peak-CHEAP-oil is e 100% dollar-problem, and thus nothing else!

The housing (stock market) bubble and the maintenance of all the bubbles … is a 100% dollar-problem.

The global exportitis in the dollar, is a 100% dollar-problem.

The willy-nilly viagrising of the Ancien Regime, the dollar regime, is a 100% dollar-problem.

It's like Microsoft. They say Microsoft is abusing Her potency with Windows but
[t]he Commission was put further on the defensive when Jean-François Bellis, Microsoft's lawyer, pointed out that Microsoft Word, which has never been tied in with Windows, had a 92 per cent market share. "And that's without bundling?" asked Mr Cooke. Mr Bellis nodded.,,13129-2151776,00.html
So they want to force you and me to viagrise Microsoft's competitors by buying (hell, who's "buying" programmes?) Another software than Microsoft Word.
The problem: "they" are called the EUROcrats but must not be confused with the real euro.

The dollar is expecting that the whole world will continue to support the dollar problem by maintaining its (the latter's) privileges,
while without viagra the dollar is unable to do anything.

The grostesque dollar debt can no longer be bombed away.

Give Freedom and Truth a chance, NOW!
And what about Anarchy?

ArmageddonFuture Credit Card Rates Question#1435844/26/06; 09:23:10

I was wondering what people here thought of future credit card rates in the context of a Fed dollar devaluation. It would seem to me that since the Fed wants the dollar lower against other currencies it would not raise interest rates to very high levels.

I guess my point is would it be wise to charge items like gold and silver on a credit card betting that the value of gold will rise fast enough to offset increasing interest rates?


mikal@Armageddon#1435854/26/06; 09:52:11

I have used credit cards for a small portion of my investments. No doubt others have been less fortunate and either have no gold or used more credit or at higher rates.
Gold will continue to outperform the dollar, and instruments such as CD's and money market funds linked to intetrest rates, but gold will become in a class of it's own and not be spoken of in the same breath as ordinary investments. Indeed it will be widely known as much more than an investment.
Re: "Since the Fed wants the dollar lower it will not raise interest rates to very high levels"
I like to think that the Fed doesn't care what the dollar does because they've lost control of it. They've used up all their tools for the most part, and the markets are moving to take over interest rates as well. Mortgages, debt and countless other derivatives are among the risks. Examples abound among previous posts. I can post more
when I have time.

contrarianDollar and Rates#1435864/26/06; 09:56:56

Some thoughts from an interesting article, which I think is an accurate appraisal:

"I am no bear on commodities, but I do believe real assets are about to suffer a sharp correction. In fact, the correction will likely apply to all asset classes. The catalyst? Realization by traders that the Fed has no intention of halting rate increases any time soon. Although the Fed has not stated so publicly, their primary motivation these days is the defense of the U.S. Dollar. Only through a strong dollar can the United States continue to sell debt cheaply and preserve its global hegemony.

There has been widespread perception that an end is near for the current cycle of rate hikes. This perception has been molded by a very clever public relations game on the part of the Fed. For nearly two years they have stuck to "measured" rate hikes while saying "inflation appears to be contained," implying that rates don't need to go far... but they keep going. To support the charade, Fed governors will occasionally let slip phrases such as "the current cycle of rate hikes is in the ninth inning" (stated 4 hikes ago) or that there is a more than a passive concern about rate hikes going too far.

In fact, the Fed is nowhere near where they would like to take the Fed Funds rate, and they won't stop hiking until forced to do so by crisis. Furthermore, recently faltering prices in long bonds and the U.S. Dollar only provide impetus for the Fed to keep hiking. It may seem counterintuitive, but an extended cycle of rate hikes has been instrumental in keeping prices of long bonds from plunging more than they have. As long as the Fed is perceived, at least globally, as being somewhat defensive on the dollar, the rise in long bond rates will remain somewhat mitigated. Once the Fed relents, it will spell the end of cheap money for the U.S. government. There is no conundrum here.

The global focus on the dollar's viability is evidence by the aforementioned fact that the dollar is falling in conjunction with bonds. Typically, higher U.S. bond yields would create demand for the dollar as participants chase yield. The divergence we are witnessing signifies a growing distaste for the dollar and dollar-based assets."

Goldiloxmore Rates#1435874/26/06; 10:47:57

@ Contrarian, et al,

I think you may be right about the rates continuing up, but it is tricky, as the RE/ATM machine is at dire risk.

Unless the banksters are ready for an explosion in foreclosures and implosion of RE "valuations," I think they must tread lightly.

That being said, if the rate increases do not maintain pace with inflafla, increases are moot to those who know enough about commodities.

The only real adjustment to the commodity bull lies in demand destruction, which may or may not apply to gold, anyway.

Just my $0.04, inflafla adjusted,


Clink!M3 is dead - long live M3b ?#1435884/26/06; 11:11:48,_repos_&_Fed_watching.html

A lot of us here have been extremely suspicious about the disappearance of M3. It would appear that not only we are not alone in this, but there is someone who knows how to amass the relevant info - from public sources ! So how come one of the main reasons cited for not continuing to generate it was the associated cost ? And this from a group of folks who increased it by over $1T in the last 12 months ?! There are other interesting articles worth reading at the site too, and there is a nugget at the end of this article describing the composition of M3.
(Original url from

Druidcontrarian (4/26/06; 09:56:56MT - msg#: 143586)#1435894/26/06; 11:25:58

Druid: This doesn't square with the wishes of the latest G7 gathering. If the Fed continues to defend the dollar via interest rate hikes, this puts further pressure on the trade deficit and leaves no room to blame China for supposedly not cooperating reference their currency.

The Fed could very well keep rates where they're at and let the markets do the heavy lifting of making the appropriate exchange rate adjustments, but then, that could get "brutal". Wouldn't be an interesting scenario if the Fed did raise rates and the dollar continued to tumble against the Euro, Yen...? We literally are entering the Twilight Zone in monetary policy. Good luck.

TownCrierA sign of the times?#1435904/26/06; 12:22:51

Will you sit idly by and be conquered one flagpole at a time?

The quality and strength of any civilization is built upon the character and strength of its citizens. Woven together upon the institutional loom of rule-of-law, the fabric of our society has us bound together with mutual interests for the whole based upon our co-dependency (inter-reliance) through our individual productive specialization (division of labor).

However, this useful and efficient social fabric can fall apart from various causes. Perhaps worse than a direct attack (which can be readily identified and confronted, such as this flagpole) is the insidious disintegration that can quietly attack and destroy the strength of the individual fibers. By this I mean the blanket (widespread) loss of the population's individual purchasing power.

A country made inter-reliantly modern and great by the efficiencies of a market economy and specialization can rapidly become a tattered rag if there is suddenly little or no purchasing power left in the hands of its participants. Markets fall silent and employment takes on the appearance of being a pointless means to a non-existent end. A replay of the Great Depression.

Relatively, even as shocking as it appears, this flag thing is relatively benign (like the appearance of a moth in your wardrobe) when compared to the unraveling of our way of life that a plunging dollar could cause.

One of our first duties as citizens and custodians of our society is to be of good character. And it should be recognized by all such people of good character that taking measures to ensure preservation your accumulated purchasing power (savings) goes vitally hand-in-hand with your specialized contributions to society.

National currency, such as dollars, are merely a disposable grease which lubricates the points of contact in our immediate interactions. To be of good character, and for the preservation of yourself as well as your society's well-being, choose your savings in the form of gold to ensure the lifelong integrity of your purchasing power. Good people throughout the world have be doing this very thing ever since rational thought found them.


USAGOLD / Centennial Precious Metals, Inc.A world of gold at your fingertips...#1435914/26/06; 12:41:53">gold -- a global calling card
TownCrierReuters - gold#1435924/26/06; 14:28:08

NEW YORK, April 26 (Reuters) -

"There doesn't appear to be any real top formed in this market, particularly with respect to gold," Stephen Platt at Archer Financials, said.

"After all this consolidation, one suspects the market is going to continue to move higher as long as the underlying investment demand continues to be apparent," Platt said.

Paul McLeod, a vice president at Commerzbank in New York, concurred that the market was just taking a breather. "In any bull market, after you take a jump forward, you've got to build a base for a while before you take that next leg up again."

Players in precious metals were watching near-record oil prices and whippy currency markets.

Physical gold demand with prices atop $600 has improved, especially from key bullion centers like India and the Middle East, which inspired confidence, said UBS analyst John Reade.

He said investment buying resumed overnight in Japanese precious futures, spurred by steady spot metal prices, bullishness about silver, rising base metals and a halt in the yen's rally.


Is Japan buying much physical metal to go with all that paper? The first things to break under social and geopolitical tensions are promises, and at the root that's what paper positions are.


USAGOLD Daily Market ReportPage Update!#1435934/26/06; 14:54:47">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

WEDNESDAY Market Excerpts

Gold up $18 in two days on dollar weakness

April 26 (from MarketWatch, DowJones) -- Gold futures climbed Wednesday to tally a two-session gain of more than $18 an ounce, as strong U.S. economic data failed to spur a climb in the U.S. dollar.

"With the dollar weakness, we may have seen a great buying opportunity develop in recent sessions," said Dale Doelling, chief market technician at Trends In Commodities.

"With the tone of the market having improved drastically in the last couple of trading sessions, I won't be surprised to see the markets finish the week on a positive note," he said.

COMEX June gold futures closed up $7.80 at $642 after touching a $643.10 high. The contract climbed $10.30 an ounce in Tuesday's action.

In the foreign-exchange market, the dollar was little changed against Japan's yen but touched a new seven-month low against the euro after fresh economic data showed U.S. new home sales rose to the highest level of the year and U.S.-made durable goods registered the largest increase since May 2005.

Meanwhile, "as tensions mount in the Middle East ahead of the U.N. Security Council's Friday deadline on Iran, gold will continue to benefit from pockets of safe-haven hedging as well as fund buying interest," James Moore, an analyst at TheBullionDesk said in a note to clients. Iran's Supreme Leader Ayatollah Ali Khamenei said in a television broadcast that U.S. interests around the world will be harmed if America launches an attack against Iran, the BBC reported Wednesday.

"While the outcome of Friday's decision is far from clear, gold will continue to see strong buying on dips, particularly from physical players -- which is extremely positive for the longer-term bullish sentiment," said Moore.

Analysts at MKS Finance in Geneva said a weak U.S. dollar and oil-driven inflation continue to act in favor of gold as well as a physical demand pickup as the Indian wedding season moves into full swing through June.

---(see url for full news, 24-hr newswire)---

Golden LionheartOctober 6th 2006#1435944/26/06; 17:33:49

Wonder what this will do for the POG?
WonkoPersonal Responsibility#1435954/26/06; 17:40:15

Why abuse Greenspan (Loose Al) and his replacement Ben? Alan was/is a genius. Clearly he knows the value of gold; But when the customer sitting in the chair asks the barber for a Mohawk, what is the barber to do? The fact is that Alan is simply a politician and he gave the American public exactly what they wanted and his actions will eventually result in them getting what they deserve.
When America came out of the WWII we (individual Americans – yes I mean you too!) discovered that we could get things from foreigners for almost free. We gave them dollars we had borrowed at low cost and we extracted from their economies clothes, shoes, furniture etc. People in absolute poverty, destitute beyond our imaginings, were making things and shipping them to America so that their despotic rulers could acquire sufficient US bonds to stabilize their currencies and thereby stay in power.
But it boomeranged on us Americans, today's frantic Americans have more things around them but they do not feel wealthy because these things do not belong to them. They were acquired by leverage through the use of paper money.
Individual people and businesses through banks, GSE, etc. create most of the paper money by issuing debt in their name. It is through the individual person's obligation to redeem the issued currency that makes debt based currency possible. (of course the banks, finance, etc. take their cut during the creation process). The reason we have so successfully implemented debt based currency here is because we have just laws of ownership especially of pledged assets. This means that if you default in America they will come and get it. In many other less developed countries, finding the person/asset is not so easy. Furthermore, what with the newly revised bankruptcy laws here in the good ole USA they will not only seize the pledged assets but also your future too – slavery! You own the things but the debt used to buy the things owns you!
Very, very few Americans will ever escape by paying off their debt. Instead most choose to fully embrace debt by leveraging to the utmost hoping to find a financial instrument with a high return rate for a couple of years so that that they can pay off their debts. The carrot of being debt free through speculation, is the only remaining hope for a decent retirement. They tried stocks, when that tanked they rode long term bonds to try to make up some losses, and now the last hope is for real estate to come through. It is impossible for any significant fraction of homeowners to ever pay off their debt, since this would reduce the money supply that Easy Al convinced them to create as individuals in the first place. Easy Al Public policy was to get more money in circulation not less. However that the money is no longer circulating here in the USA economy available for redemption. It left a long time ago when we bought all that foreign junk and came back as Bonds.
When the real-estate market locks up here in the next few months its checkmate! I have no sympathy for these Boomers. They will experience first hand what it feels like to have the local currency depreciate and have to send what they made and need themselves to foreigners who already have a higher standard of living. Choose what will carry you through this last and greatest bubble burst carefully. You own the things but the debt used to buy the things owns you - Wonko

The Invisible HandGottfried Wilhelm Leibniz (1646 – 1716)#1435964/26/06; 18:31:56

Hyperinflation like Weimar 1923
World System on Weimar Collapse Curve
by Lyndon H. LaRouche, Jr.

Leibniz’ least-action principle .
This is exactly what happened during the last years.
One big "freezing", irrespective of any supply/demand fundamental.

This uncovers the real nature of all financial movements.
The imbeciles have no content, let alone brains, and are looking for an illusory profit with carloads of worthless money (digit)pools.
The Weimar event will indeed at a certain moment increase "parabolically" (chart).
This explains why our intuitions tell us to always use the word "explosive" after the orderly inactivity (freezing).


Chaim Perelman says that
Another of Leibniz’ principles was "cum deus calculat, fit mundus", the world makes itself according to the divine calculations.
and that for Leibniz, the task of the philosopher was to underline the confused character of all opinions and ideas which cannot be reduced to quantifiable data.

Bertrand Russell says that
what Leibniz published was designed to win the approbation of princes and princesses but that now Leibniz had also an unpublished and esoteric philosophy
and that Leibniz in his private thinking is the best example of a philosopher who uses logic as a key to metaphysics.

Leibniz had one philosophy for the imbeciles and one for the goldbugs, the latter using logic as a key to metaphysics.

Next question: What is metaphysics?
Good question!

Metaphysics asks the question: Why is there something, rather than nothing?

Aristotle defines metaphysics as the study of being as being.
Another definition is the study of the ultimate cause and of the first and most universal principles of reality.

Philosophy proper and metaphysics are thus interchangeable terms.

The Invisible HandPersonal Responsibility#1435974/26/06; 19:42:39

In their Ayn Rand days, Alan Greenspan and Nathaniel Branden met often.

Says Branden:

Independence and self-responsibility are indispensable to psychological well-being..

The essence of independence is the practice of thinking for oneself and reflecting critically on the values and beliefs offered by others – of living by one's own mind.

The essence of self-responsibility is the practice of making oneself the cause of the effects one wants, as contrasted with a policy of hoping or demanding that someone else ‘do something’ while one's own contribution is to wait and suffer.

It is through independence and self-responsibility that we attain personal power. It is through the opposite that we relinquish power.

(Nathaniel Branden, "Taking Responsibility", Simon & Schuster, 1996, p. 13)

The Invisible HandRussia: Oil could reach $100 over Iran nuclear crisis#1435984/26/06; 20:01:15

The price of oil could pass $100 a barrel in the case of a lengthy stand-off with Iran over its nuclear programme, a senior adviser to Russian President Vladimir Putin said, AFP reported.


The Invisible Hand (4/26/06; 01:26:37MT - msg#: 143582)
Not only the lunatics from DrudgeReport and NewsMax
DOHA — Organisation of Petroleum Exporting Countries (Opec) ministers meeting in the Qatari capital were warned yesterday that continued higher oil prices threatened global economic growth, which could trigger a collapse in demand for oil and hurt producer states.

TopazPaper Au and Ag.#1435994/26/06; 20:08:38

We managed to get through April (almost) with a bit of upside and should be in for some fireworks in the coming days.
Paper Silver couldn't be held down in the wake of 600 del'y notices this week and looks poised to lead the complex higher come FND.
15.5K deliveries in April augurs well for PoG come June.

GoldiloxWeimar "EVENT"#1436004/26/06; 20:43:12

The Weimar event will indeed at a certain moment increase "parabolically" -

More correctly, I think he means "exponentially".

The Weimar hyperinflation was much closer to hyperbolic. It was not a parabola that began in 1921-2, but a hyperbola that began much earlier.

The idea that hyperinflation is parabolic is a mistake that convinces people it can be "managed" up to the point of take off.

Hyperbolae grow very slowly at first (and can appear to be linear with a slight fudge factor), but once they cross unity, the slope increases exponentially.

What I'm tryin to support is that the Weimar inflation was not an "event", but more a longer term process.

GoldiloxThe REAL Deal#1436014/26/06; 20:52:13


It could well be that some American companies are spending to increase production, but that is not the main driver of the explosion in durable goods orders. Two weeks ago I put two and two together when I read about the huge entourage that was here from China on a buying binge. They wanted to give U.S. business a good "warm and fuzzy" as a precursor to the visit by Chinese President Hu Jintao. On the surface it looks like China is putting their best foot forward to improve the balance of trade with the U.S., but this is a precursor to some much bigger problems down the road.

The Chinese realize that excessive U.S. consumption cannot continue forever. They are working feverishly behind the scenes to develop their own consumer base and also develop a consumer base aside from the USA. Bill Murphy has made a strong point recently about China working to stockpile commodities such as copper, silver, lumber, steel, and everything else they will need to continue as the global leader in manufacturing. They are stockpiling commodities and at the same time continuing their build of infrastructure. The big increase in durable goods orders is all about items that are going to China. We cut them off on the purchase of Unocal, so they are answering by buying everything else they can. Not only are they buying the metals, they are also buying soft commodities such as cotton and soybeans.

The Invisible HandCheck your premises!#1436024/26/06; 21:23:19

Was it Greenspan or is it the credit card users who are hoping or demanding that someone else ‘do something’?

Will the June 2006 price of oil be $20 or $100?

Contradictions cannot exist!

Ten BearsRavi Batra#1436034/26/06; 21:39:07

@The Invisible Hand msg#: 143583

A review of Mr. Batra's written work reveals that he is certainly not employed by the ruling financial cartel of the USA. In fact, his work is generally critical of that group. Or does he write under a different (pen) name?
S.M.U. is not a state university therefore I would be curious to know which agency or power group in/of the US of A he might work for.


GoldiloxSMU#1436044/26/06; 22:00:01

@ Ravi Batra,

Whie SMU is not a "State school", it doesn't get its research grants from outside the normal government sponsored channels.

While this is not an automatic indictment, ties to "moneyed" control are certainly more complex than simply analyzing an institutional name.

Rather than question the man's "position", we should probably analyze his words for content.

Principles not personalities.

Ten BearsRavi Batra#1436054/26/06; 22:29:52

@ Goldilox

Ok, how about an analysis of any of his words which indicate that he:
"Is on the payroll of the USof A"

The Invisible HandHis customer is a senator …#1436064/26/06; 22:52:03
Ravi Batra, a member of state Sen. Ada Smith's legal team
ACBS-TV has video of attorney Ravi Batra (with state Sen. Ada Smith in tow

… so his fees are "produced" by stolen tax money.

To repeat:
1. the thief does not come back periodically
2. the thief does not pretend to steal in the public interest.

Greenspan was also paid like that.

Repael government!
Repeal central banking!
Give gold a chance!

contrarianWeimar Event#1436074/26/06; 22:58:48

Compare hyperbolic states to what scientists have recently discovered about behavior of large systems. Although not the same, analogous, as things can quickly get out of control and the boundary between control and noncontrol can be abrupt, as a liquid freezing into a solid.

"Now, we come to a critical point in our discussion of the critical state. Again, read this with the markets in mind (again, emphasis mine):

In this simplified setting of the sandpile, the power law also points to something else: the surprising conclusion that even the greatest of events have no special or exceptional causes. After all, every avalanche large or small starts out the same way, when a single grain falls and makes the pile just slightly too steep at one point. What makes one avalanche much larger than another has nothing to do with its original cause, and nothing to do with some special situation in the pile just before it starts. Rather, it has to do with the perpetually unstable organization of the critical state, which makes it always possible for the next grain to trigger an avalanche of any size."

Now, let's couple this idea with a few other concepts. First, Nobel laureate Hyman Minsky points out that stability leads to instability. The more comfortable we get with a given condition or trend, the longer it will persist; and then when the trend fails, the more dramatic the correction is. The problem with long-term macroeconomic stability is that it tends to produce unstable financial arrangements. If we believe that tomorrow and next year will be the same as last week and last year, we are more willing to add debt or postpone savings for current consumption. Thus, says Minsky, the longer the period of stability, the higher the potential risk for even greater instability when market participants must change their behavior.

Relating this to our sandpile, the longer that a critical state builds up in an economy, or in other words, the more "fingers of instability" that are allowed to develop a connection to other fingers of instability, the greater the potential for a serious "avalanche."

'Imagine, Buchanan says, dropping one grain of sand after another onto a table. A pile soon develops. Eventually, just one grain starts an avalanche. Most of the time it is a small one, but sometimes it builds up and it seems like one whole side of the pile slides down to the bottom.

Well, in 1987 three physicists named Per Bak, Chao Tang and Kurt Weisenfeld began to play the sandpile game in their lab at Brookhaven National Laboratory in New York. Now, actually piling up one grain of sand at a time is a slow process, so they wrote a computer program to do it. Not as much fun, but a whole lot faster. Not that they really cared about sandpiles. They were more interested in what are called nonequilibrium systems.

They learned some interesting things. What is the typical size of an avalanche? After a huge number of tests with millions of grains of sand, they found out that there is no typical number. "Some involved a single grain; others, ten, a hundred or a thousand. Still others were pile-wide cataclysms involving millions that brought nearly the whole mountain down. At any time, literally anything, it seemed, might be just about to occur.'

It was indeed completely chaotic in its unpredictability. Now, let's read this next paragraph slowly. It is important, as it creates a mental image that helps me understand the organization of the financial markets and the world economy. (emphasis mine)


To find out why [such unpredictability] should show up in their sandpile game, Bak and colleagues next played a trick with their computer. Imagine peering down on the pile from above, and coloring it in according to its steepness. Where it is relatively flat and stable, color it green; where steep and, in avalanche terms, 'ready to go,' color it red. What do you see? They found that at the outset the pile looked mostly green, but that, as the pile grew, the green became infiltrated with ever more red. With more grains, the scattering of red danger spots grew until a dense skeleton of instability ran through the pile. Here then was a clue to its peculiar behavior: a grain falling on a red spot can, by domino-like action, cause sliding at other nearby red spots. If the red network was sparse, and all trouble spots were well isolated one from the other, then a single grain could have only limited repercussions. But when the red spots come to riddle the pile, the consequences of the next grain become fiendishly unpredictable. It might trigger only a few tumblings, or it might instead set off a cataclysmic chain reaction involving millions. The sandpile seemed to have configured itself into a hypersensitive and peculiarly unstable condition in which the next falling grain could trigger a response of any size whatsoever."

Something only a math nerd could love? Scientists refer to this as a critical state. The term critical state can mean the point at which water would go to ice or steam, or the moment that critical mass induces a nuclear reaction, etc. It is the point at which something triggers a change in the basic nature or character of the object or group. Thus, (and very casually for all you physicists) we refer to something being in a critical state (or the term critical mass) when there is the opportunity for significant change.

But to physicists, [the critical state] has always been seen as a kind of theoretical freak and sideshow, a devilishly unstable and unusual condition that arises only under the most exceptional circumstances [in highly controlled experiments]... In the sandpile game, however, a critical state seemed to arise naturally through the mindless sprinkling of grains."

The Invisible HandWSJ - free preview for bureaucrats desiring honest job#1436084/26/06; 22:59:18

Job Wanted
These are grim times at the International Monetary Fund; the world economy is too good. Global GDP has expanded by nearly 5% over the past three years, capital and trade are reaching far corners of the earth, and millions of the world's poor are being lifted out of poverty. So naturally the IMF is worried.

GoldendomeAn interesting comparison, Peak oil/Peak Gold. Could it be true?#1436094/26/06; 23:08:43

... perhaps the most important warning sign of a commodity peak are major producing countries individually peaking before the overall global peak. In the case of oil, the USA, China, Britain, Norway and Mexico amongst a host of others are at or past their national peak of oil production. We only await the Middle East countries and Russia to join them and complete the picture.
[For Gold]South Africa peaked in the 1970s at 1000 tonnes (yet is still the main producer). The USA peaked in 1998 at 366 tonnes while Australia peaked in 1997 at 314 tonnes. Canada peaked in 1991 at 177 tonnes and Brazil in 1982 at 200 tonnes and so on. These example regions when combined currently produce 40% of the world's gold. If this 40% declines at 5% per annum then the other 60% has to increase production by 3% just to keep production flat. This is not a pretty picture - unless you hold gold.

Based on the United States Geological Survey's 2006 summary for gold, about 152,000 tonnes of gold has been mined out of the ground since man first dug out those shiny yellow nuggets.

Furthermore, the USGS estimates a remaining reserve base of 90,000 tonnes.

Another evidence of a commodity production peak is falling supply in the face of rising prices and demand.

contrarianWonko--Debt#1436104/26/06; 23:11:39

I would also add, though, that if we get hyperinflation, then creditors are at a definite disadvantage, as debtors pay them back in less valuable money, and, not to sound too radical, but perhaps that can be the silver lining to being a debtor.
The Invisible HandSister of Iraqi vice-president is shot dead in Baghdad. Mroe soon.#1436114/26/06; 23:58:01

The Invisible HandTax is theft! Government is fraud!#1436124/27/06; 02:03:55

What the Price of Gold Is Telling Us
by Ron Paul

Before the U.S. of A. House of Representatives, April 25, 2006

Economic law dictates reform at some point. But should we wait until the dollar is 1/1,000 of an ounce of gold or 1/2,000 of an ounce of gold? The longer we wait, the more people suffer and the more difficult reforms become. Runaway inflation inevitably leads to political chaos, something numerous countries have suffered throughout the 20th century. The worst example of course was the German inflation of the 1920s that led to the rise of Hitler. Even the communist takeover of China was associated with runaway inflation brought on by Chinese Nationalists. The time for action is now, and it is up to the American people and the U.S. Congress to demand it.

The Invisible HandBen Ravi Batra is a fraud also#1436134/27/06; 02:27:20

His analytical critique contains too much patriotism. This is indecent for a university teacher.

The AngloAmerican observers of the gold-market are always nostalgically referring to the "gold-discipline" which existed only for a very short period.

Today, they continue toiling with this nostalgic vacuum, associated with their dollar-IMFS.

They do this while their monetary regime imposed a "discipline" to gold by keeping it unfree to the benefit of their monetary mismanagement.

The euro gold concept does not want to impose discipline upon gold, but wants FREEGOLD (true gold) and wants gold to show how undisciplined the monetary regime is.

Ni dieu, ni maitre, but The Invisible Hand.

Clink!Top ten signs that a precious metals bubble is actually forming#1436144/27/06; 06:31:15

10. Commodities trading jackets are the best selling items at Abercrombie & Fitch

9. George Foreman is the pitchman for an infomercial featuring a "Home Panning Kit"

8. The most popular major at Chico State is Geology

7. Due to high prices, Olympic metals are replaced by ribbons

6. Monster Park in San Francisco is re-named Glamis Field

5. Analysts upgrade shares of McDonald's based on mineral rights to its real estate holdings, bringing new meaning to its "golden arches."

4. Snoop Dogg introduces the "Bling Mutual Fund."

3. Hustle and Flow wins another Oscar for their single "It's Hard out Here for a Miner"

2. The WB has a new hit show about teenage prospectors called "Dawson's Claim"

1. Tom Cruise and Katie Holmes name their newborn son Newmont.

Liberty HeadEconomics for the MTV generation#1436154/27/06; 07:26:27

Ben Bernanke is a hit.
Click on the link and turn up the volume.

Best Wishes

GoldiloxSlver and Solder#1436164/27/06; 07:57:49


If you've been wondering what is driving the price of silver lately, you might want to check this email from a reader that says, in so many words, the drive to reduce lead in consumer products is the biggie...
"George I was unaware of it but starting in July in Europe is the RoHM standard similar to our RCRA (pronounced Wreck-Rah). They have mandated up and down the supply chain removal of Lead from consumer products. Europe has an ever increasing pile of obsolete electronics-gear waste, all of it containing lead-tin solder. Only replacement out there right now is Tin-Silver-Copper. The tin has to have either lead or silver to avoid growing 'tin whiskers" which appear to be a "sublimation" mechanism where elemental tin evaporates into the vapor state directly from the solid (in chemistry, "sublimes") and then condenses back to the surface of the tin solder-blob as "whiskers". When these start growing on your circuit board you can imagine the short-circuit potential.

I was unaware of this driver on the world price of silver. Europe has exempted lots of critical electronics such as airplane navigation and flight hardware that needs more time to fight the whisker problem, similar to Bush's move to slow enactment of the EPA rules on fuel oxygenates for the summer. Look for less reliable electronics coming out of the EU this summer, and higher silver prices. All this was in the February 2006 Popular Science found on a colleagues desk at lunch today.

Of course this is also mirrored in the gas prices where half the blame is Democrats refusing liability protection for MTBE producers, and locking down ANWAR, and the Republicans pushing the fuel industry to use their ADM buddies ethanol, which didn't have the necessary capacity to support the fuel supply. (You were mentioning food shortages; what will this drive to produce more ethanol do to not just corn but all grain prices?) All this pile of unintended consequences, which we could see from down the road when they enacted this mess, but now here it is in the road for us to step in. How nice. Your URE Theorem analogy is very appropriate.


Already found out by buying a German motorcycle, thay produce poorer quality chrome. Not sure how much the electronics industry is affected by the above, as most electronics are off-shored to the slave states, anyway. But it sure is another boost to "globalism".

GoldiloxOff to the races#1436174/27/06; 08:32:39

PMs running strong this morning.
Knallgold$ wants to crash#1436184/27/06; 08:41:24

URGENT measures,they said!


BEIJING -- China's growing foreign exchange reserves, which are likely to hit $1 trillion this year, face huge risks from a possible US dollar decline and China has to take urgent measures, a Chinese central bank monetary committee member said."

geIran oil bourse next week#1436194/27/06; 10:28:35

Here it pops again.
GoldiloxMusical Chairs?#1436204/27/06; 10:33:03

With everyone scurrying to "prop up" their investment medium du jour, it makes for an interesting game of 'musical chairs".

Any bets on who gets left standing when the music stops?

GoldiloxSilver bullet cocked and ready#1436214/27/06; 10:39:45{C6B59B17-1F1C-4F62-8370-583E496653E3}


BOSTON (MarketWatch) -- At long last, a silver exchange-traded fund that has been in the works for over a year is expected to begin trading Friday.
A registration statement for the highly-anticipated ETF from Barclays Global Investors was declared effective at 10 a.m. Eastern time Thursday by the Securities and Exchange Commission, clearing the way for the ETF to list, an SEC spokesman said.

BGI spokeswoman Christine Hudacko said the unit of British bank Barclays Plc (UK:BARC) plans to launch the silver ETF on the American Stock Exchange on Friday. The trust is expected to trade under the symbol "SLV," according to regulatory documents.

Earlier this week in a filing, Barclays said 1.5 million ounces of silver had been deposited in the trust, which is slated to charge a sponsor fee of 0.5% of assets.

Speculation on the silver ETF's imminent launch has been pushing up silver prices, which earlier this month hit multi-decade highs. The ETF, which for the first time allows individual investors to invest in silver without holding the metal or tapping futures markets, could bolster demand for the metal.
Dubbed iShares Silver Trust, shares of the ETF represent 10 ounces of the metal held in a vault. ETFs are baskets of securities that trade on exchanges like stocks, so investors can go short as well as long, and must pay broker fees to buy and sell shares.

Two existing gold ETFs, StreetTracks Gold Trust (GLD) and iShares Comex Gold Trust (IAU) , have been popular with investors. The first mover, StreetTracks Gold Trust, has gathered about $6.5 billion since its November 2004 inception in one of the more successful fund launches in recent memory.

The silver ETF has taken several twists and turns before it was finally approved by regulators.

The Silver Users Association, a nonprofit lobby group interested in keeping an orderly silver market, had led the opposition to the silver ETF. The group alleged the trust would take a large amount of silver off the market and push up prices, which would hurt firms that use the metal for business or industrial purposes and result in layoffs.

However, after a public comment period, the SEC said the silver ETF would increase the efficiency and transparency of the silver market, and that it would not spark liquidity problems.

Some traders are expecting the ETF may usher in a new bull market for silver if it attracts money from individuals, advisers, institutions and hedge funds looking for a convenient way to get exposure to the precious metal. However, if history is any guide, the trend with gold ETFs introduced around the globe has been a run-up in the weeks up to the launch with a pullback in the weeks after the start of trading.


Now that the silver bullet is locked n' loaded, let's hope it's not a case of "open mouth, insert foot, shoot foot." Wanna give your PMs to them to hold for "safe keeping", or hold them yourself?

FlatlinerHelicopter money?#1436224/27/06; 10:41:13

"WASHINGTON (CNN) -- Every American taxpayer would get a $100 rebate check to offset the pain of higher pump prices for gasoline, under an amendment Senate Republicans hope to bring to a vote Thursday."
Smeagol$100 rebate to offset gas#1436234/27/06; 11:17:54

(cackle) If thiss happens... we will simply apply this to a purchase of It! ~>8-)


mikalGold drivers#1436244/27/06; 12:06:25

Why Gold Price Will Keep Going Higher
Lord William Rees-Mogg - April 27

mikalDerivatives pervasive#1436254/27/06; 14:41:17

It seems to me derivatives in which counterparty
liabilities are unknown and where cross-checking
has fallen way behind, are a symptom of the loose and unaccountable policies of bank credit and government in general.
Just today I heard from a subscriber to one of the gold newsletters that BIS says there are $237 trillion in derivatives out there based on notional value, nothing new to me.
But someone allegedly went over the books of a European bank, which had 14 trillion worth of euro-swap bank derivatives on its books, nearly 1% of the total amount out there. If true and he says it is, then total outstanding derivatives are almost 1400 trillion!

USAGOLD Daily Market ReportPage Update!#1436264/27/06; 14:58:08">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

THURSDAY Market Excerpts

April 27 (from DowJones) -- Volatility ran high through the precious metals complex on Thursday at the New York Mercantile Exchange but late-breaking news of the approval of a silver exchange-traded fund took all the metals lower at the close.

Comex gold had struggled throughout the session to maintain positive ground after an initial dip lower was seen following news of a rate hike in China aimed at slowing its booming economy. Some analysts said the China interest-rate-hike news was overplayed in the metals market while testimony by Federal Reserve chairman Ben Bernanke also played into metals choppiness.

Michael Darda of MKM Partners also noted that following Bernanke comments, gold prices jumped while the dollar sagged on foreign exchange markets.

Darda said Bernanke "seems to be more worried about the potential negative implications of a housing slowdown" than the recent upward action in commodity markets and corresponding downward action in the dollar on foreign exchanges.

The most-active June contract pushed to a $646.20 high during the pit session but ended the day down $5.70 at $636.30.

---(see url for full news, 24-hr newswire)---

Ten BearsThe Invisible Hand (msg#: 143606) and 143613#1436274/27/06; 15:01:17

Ravi N. Batra, Ph.D. Professor Department of Economics Southern Methodist University Dallas, TX 75275, is not the same as Ravi Batra, Manhattan lawyer (attorney for State Sen. Ada Smith ). Also who is BEN Ravi Batra? The quotes from the Danielle Dimartino story are from the Ravi N. Batra noted above.

TownCrierHEADLINE: Foreign cenbanks huge sellers of Treasuries in week#1436284/27/06; 15:02:47

NEW YORK, April 27 (Reuters) - Foreign central banks were huge sellers of Treasury bonds last week, although hefty purchases of agency debt led to an increase in overall holdings of U.S. securities, Federal Reserve data showed on Thursday.

The Fed said its holdings of Treasury and agency debt kept for overseas central banks rose by $3.11 billion in the week ended April 26, to stand at $1.610 trillion.

But the breakdown of custody holdings showed overseas central banks dumped $12.28 billion in Treasury debt, an unusually large one-week drop.

^---(from url)---^

A subtle message, but meanwhile "steady-as-she-goes" on net?


TownCrierIndian banks hoard gold...#1436294/27/06; 15:16:53

MUMBAI: Banks are building up large positions in gold in anticipation of record sales of gold coins to retail buyers during the Hindu festival of Akshay Tritiya.

Among public sector banks, Corporation Bank has imported 10,000 specially-minted centenary coins of 8 gms, a large number of which it expects to sell next Sunday...

ICICI Bank, which is one of the biggest retailers of gold in India, has decided to keep its branches open on Sunday, when they are normally closed....

Sale of gold by banks was recommended as a stepping stone to capital account convertibility by the Reserve Bank of India committee. Banks were allowed to freely import gold and sell them to the general public.

Initially, banks operated only as channels for jewellers and imported gold after jewellers placed an order. This was to avoid taking the price risk on their own books.

Now, when prices are at an all-time high, banks are betting that customers will come.

Banks still account for a small portion of the market for gold as investment. "Of the 101 tonnes of gold in the form of coins and bars sold last year, banks would account for 3%," said Mr Agarwal. This is because they focus largely on the 5 and 10gm coins and do not sell any one kilo gold bars....

^---(from url)---^

Gold, known and respected globally.


melda laureNon-Abelian finance and the Zero Point Derivatives model, @Mikal#1436304/27/06; 16:36:56


"Instead, CDS's keep weak credits afloat, compound bad investment decisions, and deepen the ultimate retribution from misdirected capital."

"Traditional credit analysis centered on how the borrower would repay his debt based on the study of balance sheet and cash flow statements. In our new system of credit default swaps, traditional credit research is replaced by a financial market version of particle physics applied to bets on the future trading price of debt instruments. Debt repayment is an incidental thought."

"Our simple thesis is that a unit of account as flawed as the dollar renders intelligent capital allocation decisions all but impossible."


I still wonder, what is capital? And how can it be allocated to "credit swaps"? Perhaps the issue needs clarification; not everyone understands Ito calculus or feynman multi-path integration. But now I have begun to wonder if the existence of these "unmatched derivatives trades" is an example of a new "machine" or is it an example of non-abelian quantum finance, that is, the application of Evans-Cartan and Mendel Sach's O3 electrodynamics theory to finance.

I suppose, that JPM (or pick your favourite player) could have created a special purpose entity to hold IR swaps on a basket of Tbonds, in effect, as long as JPM or their proxy SPE didn't have to expect payment on those swaps they could just "pretend" that they have "insurance" and in effect, take the "premium payments" and keep them: it doesn't cost any money NOT to have insurance- as long as you dont have a claim!

Given this, then it becomes PRIMARY fed policy that these key "intermediators" must never have a claim.

Well, that is what I used to think... Now I am not so sure. I can readily belive that in an Evans-Cartan financial system that "debt repayment is an incidental concern"; that it could be possible, I have no doubt, that IT IS HAPPENING is the question I can not answer, yet.

"Intelligent capital allocation"... from who's perspective? To what end? When a chess player sacrifices a few small pieces to win the game, is that intelligent? If he wagers the lot against total victory, is that intelligent? What if he wagers the opponent's pieces (well, that's NOT chess anymore, but perhaps you see the point.)

An excellent article; very disturbing under the surface. I think Mr Hathaway is wrong- it is not the loss of the american consumer market that the world fears, it is the end of the power over the world financial system that is wagered.


melda laureFlatliner. Too bad they dont give out c-notes for gold consumers.#1436314/27/06; 16:48:16

Typical of government. How subsidizing consumtion is going to improve the supply/demand situation escapes me.

Maybe if they offered a $200 rebate on the purchase of a bicycle.

Funny how you don't hear people blaming producers for the high cost of gold. Or how about those EVIL miners and their OUTRAGEOUS profits?

FlatlinerHoarding?#1436324/27/06; 16:51:33

10,000 - 8 gram coins is 80,000 grams which converts to almost 2,578 maples. @ spot of 633, comes to 1,631,874 US bucks.

I would not call that hoarding.

GoldendomeIs the Renmimbi falling with the dollar?#1436334/27/06; 16:56:48

With the dollar persistenly falling to lower levels in recent days and weeks, does this also mean that the Chinese Renminbi is also falling in relation to other currencies and gold? Since the Renmib. is pegged to the dollar, I would assume that it is also falling. Can anyone confirm what is going on with the Renminbi? If falling--seems this would be forcing up Chinese import costs for raw materials.
melda laure(No Subject)#1436344/27/06; 16:57:15

6.5 billion, that's almost 450 tonnes (@ $450 since 11/2004) some 14.4 MOZ, in only 18 months. Seems a bit large.
Flatliner@melda laure#1436354/27/06; 17:07:43

If there are 300,000,000 people, 100 bucks runs out to 30,000,000,000. That will be new money in the hands of consumers that will spend it faster then a hurricane can rip through the gulf. Unlike the money the Fed creates in the bond market, which takes time to travel through the system, bills sent to consumers get spent in minutes.

When the government gives away money, it is a clear sign that it has *no* value. What can be clearer?

This will not be good.

slingshotA Hundred Bucks?#1436364/27/06; 19:12:11

Take the MONEY and Run. Pitiful? Yes. but I still pick pennies off the ground. Would not put it back in the gas tank.

NedUSD breaking down !!#1436374/27/06; 19:13:40

Break on support 88 recently, down Another knotch sub-87 and now next support at 86.2/86.4.

A break of 86.2 and its over KATIE !!!!

Get the golden nuggets warmed up and watch that DX boyz and girls.

mikal@slingshot#1436384/27/06; 19:45:32

Re: Gas rebate- "I would not put it back in the tank."
Your self-discipline and restraint, like your
historical parables, are admirable.
But my "$100 rebate" would self-imolate in the blur of discretionary itinerancy, both routine and impromptu. (Before it REALLY doesn't spend very far.)

slingshotmikal#1436394/27/06; 20:10:14

A hundred dollars does not go far,I agree. How to use it?
Putting it back in the gas tank is giving it back to them.
Two Silver Eagles. $30.00
Two bottles of liquor. $40.00
Two T bone Steaks $16.00
Two Cigars $14.00

The two Eagles are two I would not of had.
The two bottles of liquor. One for now and the other when TSHTF
T Bones,to share a dinner.
Cigars To remember the good old days.

GoldiloxThe threat to a fistful of petrodollars#1436404/27/06; 21:47:31


From Russia, you might say, with love. This weekend, Alexei Kudrin, Russia's finance minister, dropped a bombshell in Washington.

Attending the annual meetings of the World Bank and International Monetary Fund, Kudrin caused his American hosts discomfort by openly questioning the dollar's pre-eminence as the world's "absolute" reserve currency.

The greenback's recent volatility and the yawning US trade deficit, "are definitely causing concern with regard to its reserve currency status," he said. "The international community can hardly be satisfied with this instability."

Kudrin's intervention coincided with another meeting, also in Washington, of finance ministers and central bankers from the Group of Seven - which doesn't include Russia.

Top of the agenda: the effect of ever-rising oil prices on inflation and interest rates.

G7 countries are worried the spiraling price of crude - which closed at $72.79 a barrel on Friday and which has now trebled in three years - could inflict real economic damage. The US Federal Reserve, in particular, has been forced to take drastic action - raising interest rates 15 times since June 2004 to keep inflation in check.

Given that fragility, it is significant that Kudrin is now wondering aloud if the long-standing dollar hegemony can last. For him to do so is to highlight that America is vulnerable should that status be lost. That's because Russia, with its awesome oil and gas reserves, could kick-start a challenge to the dollar's supremacy.

Most nations stockpile their foreign exchange holdings in dollars. The US currency accounts for more than two thirds of all central bank reserves worldwide.

This reserve status means that the dollar is constantly in demand, whatever the underlying strength of the US economy.

And now, with massive trade and budget deficits to finance, America is increasingly reliant on that status. The unprecedented weight of US liabilities means a threat to the dollar's dominance could result in a currency collapse, plunging the world's largest economy into recession.

That won't happen immediately. The dollar has sat astride the globe for some time now - in fact, for most of the last century. But this statement from Russia - a country of growing financial and strategic significance - still caused the dollar to slide. It also fuelled speculation that central banks could increasingly diversify their holdings away from dollars.

Topaz'ol Buck...#1436414/28/06; 01:39:30

...looks a lot overdone to the downside here whilst poor old Silver, ETF notwithstanding, appears lined up to take it in the neck.
The risk this month's Comex Silver stocks.

Lets watch the fun and games.

The Invisible HandWe're gonna have a party in Galt's Gulch!#1436424/28/06; 07:23:44

Americans sad in denial
The dollar is in collapse, the economy is going to crash, oil is getting more scarce everyday

Ayn Rand showed the way
The plot revolves around the economic collapse of the US some time in the near future. If gas prices keep rising, I'd say a week or so from now.

RemarxRon Paul's Speech#1436434/28/06; 07:25:37

I read with great interest the 4/25 speech of Ron Paul's before the House, and my wife watched the video. Thanks to The Invisible Hand for posting it yesterday.

The Congressman makes these claims about the devaluation of the dollar:

* In 1934 FDR devalued the dollar by 41%.
* In 1971 Nixon devalued the dollar by 7.9%.
* In 1973 Nixon devalued the dollar by 10%.
* Since 2001 the dollar has been devalued by 60%.

Is he referring to its value compared with gold, or against a basket of other currencies, or some other measure? Does anyone know of published data or graphs that show this?

KnallgoldETF#1436444/28/06; 07:27:42

"Good" news on Silver ETF goes with a dramatic fall in lease rates.Same happened beginning of April.Obviously,there are leasing games in play to control the market,but we knew that,no?
GonlyoldUnknowingly Shorting Silver and Gold?#1436454/28/06; 08:46:55

I've read where people on this site are considering borrowing money to buy gold and silver. Eventually, that borrowed money will have to be replaced. Where are funds coming from, which they plan to use to repay that money, if they didn't have those funds in the first place to? Seems to me that they may be planning on selling off a portion of their G & S to make the payments. Perhaps they're hoping for such a large increase in G & S that they could/would sell off enough to pay off the entire loan. And should G & S decline in price, I guess that there would be a mad scramble to sell all their holdings just to get out of debt and stay in the black.

Isn't borrowing to buy G & S effectively shorting G & S?

MKKnallgold#1436464/28/06; 08:48:12

I haven't followed the silver ETF.

Are there any provisions in the governing document which would prevent it from leasing silver? After all, they have to meet expenses somehow.

The Invisible HandThe real reason why Trail Guide stopped posting#1436474/28/06; 08:49:09

The EMU has withdrawn its war gold euro declaration to the dollar. Otherwise gold world would have exploded long ago.

Does this mean that the gold euro must be forgotten?

What ya think? Of course not!

The EMU has tamed the gold euro dog and will release her when the dollar regime starts crumbling under its own weight.

This explains why the euro-bashing by the AngloAmerican dollar supporters has diminished.

This EMU (gold euro) strategy is the easiest strategy there is … you just let "time" do its job … to the benefit of the gold euro dog and to the detriment of the dollar which (the latter) is now having to take the temporally tamed gold euro dog into account.

This explains why the Fed is silent about the EU-EMU-euro, but spends its time talking about China.

This is the almost Swiss "neutrality" of the EU. The EMU does not open its mouth about gold. Gold sales may be made public but gold promotion is taboo.

This Forum is not the place for redebating the internal European economy and the erosion of US of A export simply through delocalisation.

The yankees are fearing that a higher price of oil may fuel price inflation. The yankees don't know what they have to be afraid of. The decreasing dollar, the systemic deficits, the increasing interest rate, the warmongering machine, easy money, this is what is going to cause price inflation. And I am not yet talking about the revaluation of the yuan and of other currencies whose (the latter) price is increasing.

Officially, everybody is supporting (and using) the dollar -regime(system) ... PRO FORMA, only for the form or protocol. The myth of the US of A-superpower is still being promoted.

This explains why nobody dares to reveal 9/11.

It's always best not to tease a bully (the US of A).

Our masters seem still to suppose that the European Central Bank wants to frame gold "monetarily". They do not have the least understanding of the concept of gold wealth reserve.

The gold-euro concepts are again being confused. A euro which is evolving in concert with a gold-reserve which has WEALTH-status and thus NO monetary (public, symbolic, only for the protocol) status. Freegold like a Free-Mona-Lisa or another wealth (consolidation) object. The Mona Lisa was not the backing of the French franc.

The currency, the euro, must show its virility in order to be preferred to that other currency, the dollar, as an accounting unit for settling commercial transactions. Gold-reserve-wealth is one of the different proliferation instruments of the EMU.

The dollar's proliferation trumps are constantly being undermined on a global scale. Those of the euro are being built up.

A euro of increasing value is of course not very welcome for exporting eurolanders. A continued existence and evolution under the dollar-regime, and its competitive currency-devaluation system which is becoming hopeless due to its accumulated debts, is however the only option.

TownCrierGonlyold, "shorting"#1436484/28/06; 08:56:56

Would your conclusions be similar for people who borrow money to buy a car? Would you in this case also wonder where the funds would come from to repay the loan? Would you say they are "effectively shorting" cars?


SmeagolEvaporating silver...#1436494/28/06; 09:02:49

The silver ETF pays expenses... by sselling the metal, precious. BUT, the number of shares does not fall...the amount of ssilver represented by each share falls over Time, no matter where the price goes, or if they buy more.

Nice way to line your pocksetses with metal, eh?


FlaccusIf I had a hammer#1436504/28/06; 09:04:07

"This Forum is not the place for redebating the internal European economy. . ."

Sounds to me like you're OK with hammering the USA here but not Europe? Why is that? Is discussing Europe's problems against the Forum rules?

GonlyoldShorting#1436514/28/06; 09:12:54

TC, NO! I have difficulty comparing cars to G & S: stored value differences mainly.

But I suppose in actuallity, someone could short cars if, for instance, they were collectors in classic cars, without funds and borrowed to acquire a building full of classic cars with hopes of selling portions or all of those cars at a higher price to pay the loan. Notwithstanding the time frame for anticipated appreciation, in this case I can imagine that the price of those collector cars would come down in price if someone started selling them.

KnallgoldM3#1436524/28/06; 09:17:31

In the teletext of N-TV (the german equivalent to CNBC) they mention M3 growth,in march it was 8.6% (8% in Feb.).

-at least they publish M3 (good timing...)
-more than 8% is a LOT of inflation for a currency promising to be sound (ok,the transition)
-at least they admit it
-you can only guess how high it is in the USA.

Mr. Bernanki could run out of helicopters soon...

Knallgoldadd to last post#1436534/28/06; 09:19:05

Its also said there are some in the ECB ard who would favor a 0.5% hike next time.
osa104cMore Promises???#1436544/28/06; 09:27:09

silver is far to valuable to be used as a monetary exchange. Problem seems to be it also can't be held to a low level ($$$$$$) exchange.............isn't the mOOn silver?????....em?
GoldiloxDX slide#1436554/28/06; 09:30:01

Speaking of "shorting" - 86.26
GoldiloxNext stop 688?#1436564/28/06; 09:37:36

$650 is now history.

Onward and upward! All Aboard?

SmeagolHave a look at this gem, precious...#1436574/28/06; 09:39:23

From the ssilver ETFs own mouth (prospectus).

"Neither the sponsor nor the trustee has experience with a trust the only assets of which are expected to be silver. Their experience may be inadequate or unsuitable to manage the trust."

Time to lead the sheeple to the shearers.


Goldilox$6 "limit up"#1436584/28/06; 09:42:52

Those days seem like only yesterday, but sure don't fit today's paradigm.
Goldilox"Let's get Physical"#1436594/28/06; 10:01:22

- Olivia Newton-John

with thanks to George Ure for the reminder

Toolieenergy politics#1436604/28/06; 11:26:11

Snip: In a speech to Nigerian lawmakers, Hu underlined China's respect for African "independence and sovereignty," which analysts said was a deliberate contrast with the United States' interventionist diplomacy under George W. Bush.
"Let us seize the opportunity and ... endeavor to forge a new type of strategic partnership between China and Africa."
Analysts said Hu's offer of an alternative to the United States' prescriptive foreign policy and "War on Terror" would be welcomed by African leaders.
"China is saying it wants to build a new world order based on consensus and tolerance, not the clash of civilizations," said former foreign minister Bola Akinyemi.
"It is bound to resonate in Africa, where we have 900 years of coexistence between Christianity, Islam and traditional religions." (end snip)

An echo of rumblings in the Middle East –Doing business with China has advantages over doing business with the US. US foreign policy seeks to westernize trading partners, while China takes a more laissez-faire approach. Will China's lack of busybody baggage assist in locking up the supply of energy and materials? I think so.

With a fair portion of the dollars’ strength emanating from its wide use, such moves lay pave the way for a more multi-polar, less dollar centric, world.

GoldiloxETF "margin"#1436614/28/06; 11:39:45

I don't have the best "side-by-side" comparison tools, but it seems to me that the margin between StreetTRKs GLD and PoG has slipped.

I remember it trading at about $2.50 discount recently, and today it seems more like $3.50?

Is this significant, or just a reflection of percentages and a higher PoG?

"Let's get Physical"

GoldiloxDX "slips" further#1436624/28/06; 11:46:13

Speaking of "slipping", the DX is doing the banana peel dance at 86 right now.

Already down almost 1% on the day and 2% for the week.

968Remarks by Governor Donald L. Kohn#1436634/28/06; 14:41:11

"Some have posited that low investment in the United States reflects firms' decisions to meet expanding demand by investing overseas rather than at home. Economic theory suggests that in countries where labor is cheap and abundant, all else equal, we would expect the marginal product of capital to be relatively high, making these economies attractive places in which to invest. Thus, countries such as China ought to be seeing an influx of direct investment. However, the dollar value of U.S. direct investment into China averaged about $2 billion per year in the first five years of this decade, much less than 1 percent of domestic investment spending and not enough to be a major influence on investment spending trends."
Haha, the US direct investment into China is .... 2 billion per year (!!!), that is exactly what the US needs on one single day...

TownCrierPrice charts look good#1436644/28/06; 14:46:08

Not just rising in terms of a weaker dollar. Gold is rising very nicely in euro, too, as it must -- do you understand the 'weight of reserve' phenomenon?


specie-man@ Smeagol - Evaporating Silver#1436654/28/06; 16:08:34

The silver ETF pays expenses... by sselling the metal, precious. BUT, the number of shares does not fall...the amount of ssilver represented by each share falls over Time, no matter where the price goes, or if they buy more.

That is what I read as well. The rate of decrease in the amount of silver per share is very small, but not totally insignificant.

The solution is to just piggy-back onto what they are doing -

Go long physical silver on Comex (and take delivery), and sell short an equal amount of silver ETF shares. You can't lose !!

GoldiloxHUI Watch#1436664/28/06; 16:14:05


up 17.16, +4.75%

Not a bad Friday!

TopazComex Del'y#1436674/28/06; 16:45:28

A thunderous ruckus from the warehouse as 4800 contract equivalents of Physical Silver (24,000,000 Oz's) got shuffled about today ...hopefully closer to the loading docks and destined for a more appropriate roll in the scheme of things.

On recapping the weeks financial goings-on, a small but highly significant event has gone relatively unnoticed mois anyway!
The Fed can now and is trading currencies!
It's always been my understanding that the fate of Buck was largely determined by foreign CB's as part of her (Bucks) reserve currency status.
This move is effectively the Fed "crying uncle" and engaging in competitive devaluations like some low-life second rater (euro, Yen or whathaveyou)

Gold can only benefit from this imo as we now simply don't have a Global reserve Currency ...GONE!

USAGOLD Daily Market ReportPage Update!#1436684/28/06; 18:21:04">
The Daily Gold Market Report has been updated.

If you are considering investments in gold we invite you to">request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.

FRIDAY Market Excerpts

Gold up $18 on day, 12% for month

April 28 (from MarketWatch) -- Gold futures rose more than $18 an ounce Friday to close at levels not seen since late 1980, up almost 12% from prices seen a month ago, after the U.N. Security Council said Iran failed to meet its deadline to halt uranium enrichment and refused to cooperate with U.N.-appointed inspectors.

"Iran continues to provoke conflict and the gold price is reflecting that sense of uneasiness," said Peter Spina, an analyst at GoldSeek. "Iran knows they have leverage here, especially with oil above $70 and the U.S. dollar becoming ever so vulnerable."

So "all indications are that the geopolitical tensions will continue to support gold at this juncture, with the breakdown in the U.S. dollar adding even more ammo to the run," he said.

The greenback dropped to an 11-month low against the euro Friday, and a three-month low against Japan's yen. The per-ounce priceof $700 is now achievable in May, with gold likely continuing to find great support on the downside around $600, Spina said.

COMEX June gold climbed as high as $658.20, a more than 25-year high. It closed up $18.20, or 2.9%, at $654.50.

Gold is $67.80 per ounce above the $586.70 level it closed at on March 31.

Iran has failed to cooperate with U.N. inspectors, the BBC reported, and has done little to answer questions about its nuclear intentions. Iranian President Mahmoud Ahmadinejad has said his country "does not give a damn" about U.N. resolutions that seek to stop it from enriching uranium because of fears the country is planning to develop nuclear weapons, the BBC reported.

Since resuming its research program earlier this year, Iran has insisted that it is aiming to generate power only for civilian use.

Adding support to gold Friday, "with most of Asia and Europe closed Monday for May Day holidays, traders are likely to be reluctant to go home short given the current geopolitical picture," said James Moore, an analyst at TheBullionDesk.

UBS raised its 2006 and 2007 gold price forecast earlier, predicting that continued investment-fund demand for commodities will support price gains. "Fund flows into commodities have been more vigorous than anticipated; supply response remains anemic," said analyst Daniel Brebner.

UBS is raising its 2006 gold price forecast 12% to $630 an ounce and its 2007 forecast 25% to $750.

---(see url for full news, 24-hr newswire)---

TownCrierGold to hit record high next year#1436694/28/06; 18:29:39

ZURICH (Reuters) -- Gold has a 25-30 per cent chance to breach its record high of $850 an ounce next year on growing demand, new investment products and wider world economic trends, a leading analyst said.

"The trend is up. I have a 50 per cent probability that we will get to $800 next year and a 25-30 per cent probability to take that up to $850," Martin Murenbeeld told Reuters on the sidelines of the European Gold Forum.

"We are at the early stages of gold and commodities becoming an asset class in a portfolio. So how much money could potentially go to the commodities side? I say the sky is the limit."

Instability in the currency market was also likely to encourage buying of gold, he said.

^---(from url)---^

Refreshing to see an analyst who doesn't parrot "Iran" as the major factor in gold's move upwards.


The Invisible HandAuctions for the Mona Lisa or for omelettes?#1436704/28/06; 19:52:35

Gold Wealth Reserve is in fact a very simple principle. Consolidate your wealth in freely priced gold, for as much as you think you need as reserve.

The dollar, which is a debt-driven currency system, cannot possibly tolerate this because this increases the visibility of the debt increase and undermines the use (dare I say utilitarian? (1)) value of the dollar-unit.

A stable (reliable) currency unit has such a reserve policy which then mirrors its (good-bad) management.

Because the dolla-system is a debt-driven system, the dollar has always kept gold unfree (fixed) in order to be able to create debt in a dissipated way. Hence, the fundamental difference between the mandates of the FED and of the ECB.

These days, we clearly see that the gold price behaviour is being determined by two opposing forces. The dollar fraction which wants to sodomise gold in a dollar-monetary context and the euro fraction which wants to exempt gold as a wealth reserve from sodomisation.

The dollar fraction lost this battle long ago when it sodomised the price of gold because of the birth of the gold euro. Others, non-members of the EMU, are thinking the same thing about gold's new role (wealth-reserve) and they are not afraid to display this enthusiasm (China-Russia-Dubai).

To the extent that the dollar (the dollar-IMFS) will be perceived in a more and more negative light, the Gold Wealth Reserve concept will be more and more desired and the demand for Freegold, more freely priced gold, will be stronger and stronger. As of wonder, "we" will then understand that the ECB has this concept already in its reserve policies.
This will reflect very well on the euro, up to the point that "we" are going to start talking about the gold-euro, like, in the past, "we" were talking about the yankee-dollar.

This has nothing to do with the EU having many faces. And as long as the EU is not a debt-ridden banana-republic, the EU economy will not have to be afraid that "we" will prefer Another currency to the gold euro.

Why would the petro-dollar not be replaced by the petro-gold-euro and/or gold euro reserve?

No argument can be made for preventing the gold euro to evolve to a wealth reserve. Freegold will intuitively be seen as the wealth reserve of the euro ECB.

FreeGold and euro are NO omelettes. The dollar and unfree (fixed) gold are omelettes. Gold IS reserve and a monetary unit can never be a reserve.

Reserves have an economic repercussion to the extent that they have an effect on the internal or external buying-power of the currency under the reserve.

The dollar will NEVER stop fixing the price of gold. That is, unless a majority COLLUDES (2) to relinquishing the dollar and to stop using the dollar.
This majority will continue to grow (converge) IRRESPECTIVELY OF THE PRICE OF GOLD.
It would never enter the mind he owner of the Mona Lisa daily to organise a "test-action" to establish what today's value of his wealth is. The ECB is doing this on the final day of every quarter. With Freegold this will be done continuously … freely and on a global basis.

Utilitarianism asks the question "Why Not Violate Rights if it'd Do Good ?"

II rests on the idea of the oneness of all, especially of the human family, the brotherhood of mankind.

It aims at establishing the greatest happiness or good or satisfaction of the greatest number. This doctrine of utilitarianism is opposed to the Lockean doctrine of natural individual rights which says that individuals have … natural individual rights.

Under the doctrine of utilitarianism, there is no objective criterion, even in principle, as to what is the greatest happiness of the greatest number. The doctrine, a form of consequentialism, has therefore been characterised as the theory of values which urges us to do what will produce the greatest good, as measured by what most people want or desire, or what will satisfy most of them.

See this lunatic's latest writing of earlier today on the Microsoft versus European Union antitrust case

mikalGold in dollars may undergo "Star Trek" leaps of imagination#1436714/28/06; 20:10:17 $2,500 An Ounce Gold Coming Soon, Advisor Says | Dan Dorfman, New York Sun | April 28, 2006
NY newsletter writer and investment advisor Stephen Leeb says gold could reach $1500 to $2500 in 12 to 24 months.
You gotta love him, but even this could be understatement. :) (Partial story at link is free.)

GoldendomeEnthusiastic radio interview#1436724/28/06; 20:27:26

No--Peter Shiff doesn't think it's a bubble.
The Invisible HandOn the dragging-along of debt and the relativity of debt (vs. GDP)#1436734/28/06; 21:24:24

Anyone who is not alarmed by the increase in US government debt is living with his head in the sand.

Very interesting chart which seems to relativise the present debt situation vis-à-vis the war years 1940-45.

1945 : debt = 120% of GDP
2005 : debt = 60% of GDP (???)

How reliable, comparable are these statistics over a period of 60 years?

Creative accounting!

Did we forget that the EU-debt and Maastricht invoked the gold revaluation (mark to market, MTM) of the gold reserves?

The dollar regime deleted M3 in order to make the debt/debt-increase less visible.

Bernanke said again that the US of A dollar deficits can only be tackled through agreement with the US of A trading partners.

The Asia factor is the difference with the 1945 situation. In 1945, what is now the EU was burdened with debt. Asia now overflows from surpluses.

The negotiations with this trading partner will thus be conducted in a completely new manner. Not in the least because debt and gold-wealth-reserve (gold-revaluation) are being linked.

In the old days, cheap gold was being matched by cheap oil.
It looks as if now debt and debt increase will be linked to "FreeGold", instead of the GDP being managed by negotiations with trading partners.

FreeGold is the only thing which the debt-driven western international monetary-financial system can offer to the growing power of the surplus builders (Asia + oil/gas).

The Invisible HandDrive Out the Bush Regime!#1436744/28/06; 23:37:54
The Security Council is the primary and most important institution for the maintenance of peace and stability and security," Rice said, "and it cannot have its word and its will simply ignored."
The United States, France and Britain say that if Iran does not meet today's deadline, they will seek to make the demand compulsory, a process that could lead to sanctions. That is opposed by Russia and China, the two other veto-wielding Security Council members.
"Russia continues to be concerned to enable the IAEA to continue its efforts in Iran. Only if professional inspectors can continue to work can we ensure that the NPT is complied with in respect of nuclear weapons," [Russian Foreign Minister Sergei Lavrov] said.
Chinese Ambassador to the United Nations Wang Guangya on Friday called on the international community to solve the Iran's nuclear crisis through diplomatic way.

Is Madam Condi going to shut down the flow of money to Iran?
What would she mean by that?

"Her" own debt-republic has to pay daily $2 billion, which means more than 80% of the world's total money surpluses (savings).

"Action" in Iran will also have consequences for all oil/gas consuming individuals over the world. They are thereby forced to continue supporting the dollar-IMFS and have to be passive spectators to the comedy offered by the US of A who wants to impose its control to the peaceful, dollar-rejecting, country of Iran.

Oil-importing Asia is not very happy with this and Russia is very annoyed.

Nobody is worrying about how the Middle-East will look like after the Iran raid.

Will oil still flow cheaply?
Will the supremacy of the US of A be confirmed and will it emerge more powerfully from the conflict?
Will the debt mountains and their increase take a dramatic turn with an increasing world GDP?
Will the 1.2 billion Muslims and the 1.3 billion Chinese again consider the yankees to be nice fellows?
Will we see the end of terror and the war on terror?
Will the Iraqi civil war be a thing of the past?
Will the Chinese start saving less?

As much as the Iraqi occupation?
Or will Russia take over from Saudi Arabia the role of oil/gas central bank?
Will the whole world flee with its saving surpluses to the US of A dollar?

Pre-emptive strikes because of a new list of new "suspicions"?
Or will C. Powell again wave a bottle of plutonium at the Younaited Naitions?

Got gold? Joke only!

Drive Out the Bush Regime!
Just Announced: Mass Mobilization October 5 - Drive
Out the Bush Regime!
The Bush Regime Must be Stopped!
On Thursday, OCTOBER 5TH 2006:
All day and into the night, across the country, we must decidedly break the paralysis that still grips too much of American political life .Taking off work, taking off school, shutting down campuses and coming together in mass gatherings, we must let the country and the world know that---millions of us reject this illegitimate regime that is as criminal as it is dangerous to humanity & the existence of this planet.---we refuse to grow accustomed to a political climate that is becoming everyday more frightening & reactionary.

GoldiloxUNSC#1436754/29/06; 00:57:44

@ TIH,

Yeah, notice how much Rice and co. listened to the Security Council before the Iraq invasion.

The "farce" be with you.

The Invisible Handthe farce is over - the game also - les yeux sont faits#1436764/29/06; 01:50:39

Bullion stocks get no glitter from gold's jump
The concern among stock investors is that higher energy costs could eat into the gold miners' profits as production costs soar, overshadowing any benefit from a jump in the bullion price.

het is in de sjakosh

TopazSilver OI points to Moonshot.#1436774/29/06; 02:11:13

We're still showing 11K OI to work through, which could squeeze the daylights out of Comex next week.
Pick-a-PoS for May ...$20 ...or TILT.

It's getting hot in here, sure as eggs!

The Invisible HandThe game, not the eye, continues - the result is already known#1436784/29/06; 03:18:42

Gold prices up Rs 225 per 10 gram at opening
Saturday, 29 April , 2006, 13:46

Mumbai:Gold prices zoomed by Rs 225 at the opening session on the Bullion market here today and was quoted at Rs 9,570 per 10 gram due to heavy stockists buying after the metal hit a 26-year high of $658.20 per ounce in New York on Friday.

The Invisible Handcorrelation coefficient gold / euro#1436794/29/06; 04:15:00

The correlation coefficient for gold and the euro is 0.384, measuring the coincidence of closing daily gains and declines in the past year on a scale of -1, meaning prices move opposite each other, to 1, meaning they move in lockstep. In the previous 12 months it was 0.745.

SundeckDow/Gold Ratio#1436804/29/06; 05:28:22

The Dow/POG ratio is starting to take on the feeling of deja vu (see link)....currently about 17.5 and diving for five...hell-bent for leather... (The ratio has spent about half the time above and about half the time below five over the last 100 years.)

What price the Dow and what price gold when the ratio reaches five? When? Any guesses?

My guess is: Dow = $12,000. POG = $2400. In 2009.

We live in interesting times...


Thoreauly"As GM Goes, So Goes the Nation"#1436814/29/06; 09:15:28

By investment guru Bill Gross.


contrarianDow-Gold Ratio#1436824/29/06; 09:46:47

Sundeck--I have to agree. I'm now coming over to the view that the stock market is so managed--they now know all the tricks. Hindenburg omens come and go and everything stays the same. Perhaps the only thing to cause a fall would be a dollar or derivatives collapse--and then the good 'ole four year stock cycle will be finally vindicated (a down stock market in the midterm election year, i.e., 1990, 1994, 1998, 2002).

Gold, however, though all this, continues and will continue to rise of its own accord regardless (for many other reasons), as they have lost control over gold price management it's obvious, and are just sticking their thumbs in the dike about to overflow. I do think that in this age of internet and computerized trading, the pace of anything will be accelerated vastly.

But the writing is on the wall for the dollar it seems, and perhaps it's entering its terminal stage. And then if that happens I guess gold shoots to the moon. See the link above re the dollar.

GoldiloxMatt Simmons on FSN today#1436834/29/06; 12:13:19

Hour two of Financial Newshour
USAGOLD / Centennial Precious Metals, Inc.Putting a world of gold at your fingertips...#1436844/29/06; 15:28:20">gold -- a global calling card
968Very interesting vids ... 'the money masters'#1436854/29/06; 16:04:42

Aka 'scary movie 1, 2 and 3'.

TownCrierThoreauly, here's a more direct link to big bond guru Bill Gross's commentary#1436864/29/06; 16:31:23

(excerpt) -- "Chinese, Japanese, OPEC, and other substantive holders of U.S. Treasuries will have two ways to lose in future years: they will watch U.S. inflation erode their principal and on top of that the real dollar value of their global purchasing power will decline as the dollar sinks.

"Actually, the same applies to U.S. citizens although the decline in global purchasing power can be masked by domestic asset appreciation in the short-term (houses, stocks)."

^---(see url)---^

Bill is definitely not a piker, and all readers would do well to give his comments serious consideration.


TownCrierGold tipped to rise tenfold#1436874/29/06; 17:59:14,7034,18970530%255E951,00.html

Australia, Sunday Times; 30 Apr 06

Marc Faber, who told investors to bale out of US stocks a week before the 1987 Black Monday crash and then began recommending commodities to them at the end of 2001, says gold may rise tenfold in the next decade.

"If the Dow Jones goes up three times in the next 10 years, I think gold prices will go up by a minimum 10 times, to something like $US6000 an ounce," said Dr Faber, 60, who founded Hong Kong-based Marc Faber Ltd.

Faber said gold wasn't expensive when "you compare its price to the quantity of money that has been printed in the last 10 to 15 years in the US and the world in general".

...Former George Soros partner Jim Rogers forecast on April 17 that gold would reach $US1000 an ounce.

...The outlook for the precious metal depends on how much money US Federal Reserve chairman Ben Bernanke "will print", Dr Faber said.

"As you know, he has (spoken of) asset deflation," Dr Faber said. "He's concerned about real estate and stocks going down, so in the long run, for sure, he'll print money."

Pension and mutual funds are pumping record amounts of cash into commodities as China's booming economy stokes demand...

^---(from url)---^

I've got no gripe with his price estimate, except I'd tend to put the timeframe at something closer to four years instead of ten.


The Invisible HandIs the American fiscal position precarious or not? #1436884/29/06; 18:28:58

The Times, April 25, 2006,,13129-2150167,00.html

America's economic hegemony is safe

What could undermine long-term US dominance? Some fret that the precarious American fiscal position could do it. However, this is mostly hyperventilation. The fiscal deficit, at a cyclically adjusted 2.5 per cent of GDP, is on the large side, but American public debt as a proportion of GDP — at less than 70 per cent — still puts the United States comfortably among the more frugal of the world's big nations.

The Sunday Times, April 30, 2006,,8209-2157799,00.html

Dollar starts the big slide against major currencies

THE dollar has embarked on a big decline that will see it fall against all leading currencies, according to analysts. The plunge is being prompted by America's $800 billion (£438 billion) current-account deficit, ... .

The Invisible HandThe 1974-1980 gold price movement was a false start#1436894/29/06; 19:14:10

The advocates of the idea that present rise in the price of gold is a bubble are referring to the 1974-1980 period.

I was only 12 years old in 1974, but I am told that the 1974 observers did not understand what happened then. Today, we have something which did not exist then, the euro and the gold-euro.

Gold must push through the 1980 all time height of $850 in order to convince the observers that its present rise is no unreliable bubble.

It is not possible to stop the present movement because nothing can be amputated (krashed) anymore. In 1929, soup was being distributed. Our masters don't want to do this again. So they will let the monetary-financial dollar gangrene spread insidiously.

This results very clearly from the IMF speeches – Leibniz’ Least Action Principle is making its come-back with Lyndon LaRouche, Jr.

The 1985 Plaza agreement was the last concerted action event. From now on, the action will be "a la carte", without outline or plan.

Under such circumstances, it is very likely that the gold price increase continues until the sheeple understand what is really going on (and increases its vigor after this understanding).

Not an "a la carte" plunge into a vacuum, but a start towards a new structured unit, new (modified) equilibriums, a new international monetary/financial system.

A posteriori, our history books can always recognise that a new age has started. But most sheeple who are living in those interesting times do not realise that change is happening.


In a world in which change is happening all around us, and faster and faster,
our openness to change within ourselves,
to letting go of irrelevant attachment
to learning and growing as a way of life
becomes a personal and professional imperative.
(Nathaniel Branden)

Pythagoras compared life to the Great Games, where some went to compete for the prize and others went with wares to sell, but the best as spectators; for similarly, in life, some grow up with servile natures, greedy for fame and gain, but the philosopher seeks for truth.

After quoting the three origins of this quote, the website I just referred quotes
Aristotle's, "Metaphysics", 980a
"All men by nature desire to know. [Pantes anthropoi tou eidenai oregontai phusei]. An indication of this is the delight we take in our senses; for even apart from their usefulness they are loved for themselves; and above "all others the sense of sight. For not only with a view to action, but even when we are not going to do anything, we prefer sight to almost everything else. The reason is that this, most of all the senses, makes us know and brings to light many differences between things. "

The Invisible HandThe Ghost Oil Bourse#1436904/29/06; 20:03:22

They are talking again about the Iranian Oil Bourse.

It's no "news" (headline) however.
(My Google and Yahoo alerts remain silent -
news searches in Google/Yahoo Deutschland/France yield NO results except the International Order Book.)

The link says there will be months of diplomatic confrontation over nuclearity.
My dictionary defines diplomatic confrontation as negotiation.

If there are months of negotiation, then the Bourse can open in the meantime.

Still, why news black-out?

Why is the issue never being mentioned when the attack is being discussed?

The philosopher wants to understand.

"We're invoking the mandatory provisions of Chapter VII [of the UN Charter]," Mr Bolton [US ambassador to the UN, ] said. Chapter VII resolutions permit enforcement by sanctions or even military action, although this step is so far highly unlikely because of opposition from Russia and China.
The BBC News website's world affairs correspondent, Paul Reynolds, says the stage is set for months of diplomatic confrontation.

The Invisible HandNo more ghosts!#1436914/29/06; 20:14:51

Buy gold today and make your life brighter than ever

"Gold is regarded as the ultimate symbol of prosperity and wealth and hence, gold buying is a popular activity on this day. Every year we record very high sales’ figures on this day," said Prakash Devji, managing director, Devji Group.

CometoseThoreauly (4/29/06; 09:15:28MT - msg#: 143681)#1436924/29/06; 21:14:16

mikalBarrons goes gold bullish... sort of#1436934/29/06; 23:10:56 Barron's Economic Beat: A Metal Like No Other - May 1 - Gene Epstein
Brief article with some very favorable gold comments mingle with shallow, uninformed fundamental "analysis" beset by contradictions such as top-calling at $2000/ou and naming "speculators" as the driving market force(concessions to anti-gold editor/publisher?) only to name some serious reasons for owning gold as a safe-haven later on.

mikalMarkets creating confusion, opportunities#1436944/29/06; 23:25:54 Analyst Sees Regime Shift in Currency Market - Business Day - Lindsay Williams - 4/29/06
Interview of John Stopford of Investec Asset Management in London attempts to coalesce recent market developments

mikalA call for fair exchange rates#1436954/29/06; 23:35:37

Bank Urges Care With Currency Reform - Arabian Business Weekly - Andrew White - April 30
contrarianDow/Gold Ratio#1436964/30/06; 00:45:54

With Dow/Gold chart in mind, at Dow 12,000, shouldn't we than be talking of gold at $6000/oz, as the low on the chart is around 2?

contrarianDow/Gold Ratio#1436974/30/06; 00:48:28

With Dow/Gold chart in mind, at Dow 12,000, shouldn't we than be talking of gold at $6000/oz, as the low on the chart is around 2?

The Invisible HandJust as I was complaining ...#1436984/30/06; 02:52:11

Petro-Euro: A reality or just a distant nightmare for the U.S.?

4/30/2006 6:08:00 AM GMT

In the current ‘crisis’ over Iran's plans to develop nuclear technology, the real reason for open U.S. hostility towards Iran is often over-looked. For the past few years, Iran has been planning to open its own oil exchange — the Iranian Oil Bourse (IOB) — with the alleged goal of becoming the dominant centre of the Middle East oil trade. Currently there are only two oil trading centres in the world; New York and London and both trade only in U.S. Dollars. What will make the proposed IOB different is that it has stated that it will trade in Euros not Dollars.
The U.S. knows this, which is why it is very sensitive to any debate on the dollar's position. The next 12 months will decide if Russia or Iran will take the first meaningful steps to challenge the dollar and whether the Petro-Euro will become a reality rather than just a distant nightmare for the U.S. government.


Nothing about the opening (next week).

The Invisible HandIs the genie out of the bottle? – Monkey hear, monkey do!#1436994/30/06; 04:19:02
The Swedish's central Bank, the Riksbank, increased euro holding of its reserve from 37 percent to 50 percent.
In addition, the Riksbank also announced that it had cut its US dollar reserves to 20 percent from 37 percent. Despite the size of Sweden's foreign reserves being small in relative term, approximately $21 billion, the news of the shift did make a big splash.
After the Sweden, the Russian Finance Minister Alexei Kudrin, challenged the dollar's "absolute’’ preeminence as the global reserve currency. According to Kudrin, the US trade deficit should be a source of major concern and that the US currency had been unstable for the past years. Speaking on behalf of a country whose gold and foreign currency reserves totaled approximately $212 billion, Kudrin comments fuelled a downside bias for the greenback and helped propel the euro to an intraday high at 1.2360.

From the petro-euro article quoted below
The unprecedented weight of U.S. liabilities means that any threat to the dollar's dominance could result in a currency collapse, plunging the world's largest economy into recession.
Recently Sweden has cut its dollar holdings, from 37 per cent of central bank reserves to 20 per cent, with the Euros share rising to 50 per cent. Central banks in some Gulf States have also lately mooted a shift into the Euro. Such sentiments helped push the dollar to a seven-month low against the single currency last week.
SPEAKERFirst Deputy Governor Eva Srejber
PLACE Handelsbanken, Stockholm
Srejber: How the Riksbank's financial assets are managed
The Riksbank's balance sheet
Our financial assets are dominated by foreign government bonds(1) , which can be sold if necessary to intervene in the foreign exchange market. In other words, these assets have a direct link to our task concerning monetary and foreign exchange policy. Historically, the gold holding has been justified for similar reasons. However, nowadays it has become more common to regard gold as a financial asset like any other. This also applies to the Riksbank, whose gold holding partly is adapted according to its contribution to the diversification of the total asset portfolio(2) . This adjustment is made within the framework of an agreement with other central banks(3). Other important assets are monetary policy repos, which comprise a central part of the steering interest rate system(4) . For earnings reasons, part of the repo transactions has been extended by means of FX swaps(5) .


The Riksbank wants to
1/ to regard gold as a financial asset like any other
2/ within the framework of an agreement with other central banks.

Many central banks in the EU-system still seem not to know what they have to do with their gold reserves.

Nor do they seem to be aware of the exact (evolving) status of these reserves.

This means that the ECB (BIS) tells the national central banks what to do and the latter do it.

Monkey hear, monkey do!

This is in fact very logical if we take the explosive nature of the gold euro into account.

But to qualify gold as a financial asset seems to go a little too far.

Lord, have mercy on/over them, the monkeys don't know whether they are talking about fixed gold or freegold.

SundeckDow/POG ratio#1437004/30/06; 05:49:38

@contrarian #143696

Well...yes, if the Dow settles around 12,000 for an extended period and the ration goes to 2, then gold will be at $6000, which is not an impossibiity.

However, we don't know where the Dow is going, nor do we know where the POG is going, all we know is that historically we have this rather compelling chart showing Dow/POG and the very suggestive current trend in that ratio (currently at 17.5 and falling fast).

On the past two occasions when the ratio was descending from major peaks (those occurring in about 1929 and about 1964), it took about 2-3 years for the ratio to fall from about 17 to below 5. If history continues to rhyme, that should put the ratio at around 5 in about 2009.

How low it goes, in reality, is anyone's guess, but it is simply amazing to me just how **determined** the present trend is. I mean, we have been talking about this chart for the last 4-5 years, when the ratio was sitting at **40** and speculating that it may fall to below 5, or even as low as 1. Well, here we are 4-5 years later and the ratio is more than halfway down and not even hinting at levelling out...simply awe-inspiring in its apparent inevitability.

Fundamentally, whatever control over monetary and financial affairs the FED and the Treasury and other official players have, that control is going to be exercised at keeping the Dow aloft (at all costs), as there is just too much at stake to let it come off by more than a relatively small amount (superannuation is a big factor here, I suspect but dozens of other reasons). Neither is the economy likely to become strong enough to send the Dow up very I see it ticking along for several years pretty much where it is, but perhaps trending upwards as the currency devalues steadily.

Housing too may see some modest gains, but most of the gains there have probably already occurred, at least for a few years.

Commodities (the minerals in particular) are rising, and I think will continue to rise for several years driven by the trifesta of weakening dollar numeraire, increased demand (from the "BRIC" economies Brazil, Russia, India and China) and tight stocks and supply situation (lack of past investment in locating and developing new resources, high-grading of old mines to contend with low commodity prices over the last decade or so, etc).

Gold, if anything, has been the laggard...and it suffers from the same problems characterising other (metal) commodities, along with the leasing and hedging issues in addition. Coming down the track is the re-awakening of gold in the public mind as an under-priced asset which is nowhere near as inflated as housing (for example). Hence I think we will see money flowing into gold in a bigger and bigger way. With the price rising, there is no fear from the so-called "central bank reserves", such as they are. If the US truly still holds 8000 tonnes of the metal (which, I for one, find a bit doubtful) then Treasury will probably be whooping for joy as the price rises since it will go some way towards ballancing the national books...that is, when treasury decides to end its anachronistic nonesense of "valueing" gold at $42.

However, I suspect that issue (the revaluation) is likely to be a can of worms where many issues lay dormant and some people will probably want to keep them that way....but they may not be able to avoid it as pressure builds in the public mind and there is a new-found acceptance of gold's role as a wealth asset, prompting questions about the state of the "national bullion reserves"...



SundeckEconomist John K. Galbraith dies#1437014/30/06; 06:26:16,20867,18982078-23109,00.html

"JOHN Kenneth Galbraith, an influential economist and author of The Affluent Society, has died aged 97."


SundeckYou just never know when that 5-sigma event is gonna happen on an island near you...#1437024/30/06; 07:35:53

Santorini eruption dated by an olive tree...and with it the disintigration of the Minoan civilisation on Crete...


The rewriting of the history of the Aegean has come in part from an elaborate study of charcoal and seed samples from a number of sites dated to between 1700BC and 1400BC, and partly from a single olive tree. The gnarled stump was found in a volcanic rock layer on the Greek island of Santorini (Thera).

During the second millennium BC, it was the site of a massive eruption that blasted ash and rock for many miles around, burying many thriving civilisations in the Mediterranean, including Crete's famed Minoans.


Before the new work, the New Palace culture on Crete, an important influence on ancient Greek civilisation, had been linked to the New Kingdom period in Egypt. Since the 1970s, however, radiocarbon dates from these sites have indicated that the New Palace period and others in the Aegean - including the Shaft Grave period of mainland Greece, with its gold-rich burials, and the period that saw the development of new coastal sites on Cyprus - may have been substantially older.

Sundeck: Mmmm..."gold-rich burials" in those times... Nice, if you can afford it, I suppose. But my main reason for posting this article is to emphasise that the Minoans (and probably many other civilisations of the time) had no idea that such a cataclysmic event was going to occur. Tsunamis, prolonged "nuclear" winters, crop failures, economic disruption on a global scale...

It may only occur once in 50 lifetimes (the time elapsed since the Santorini eruption)...but what if it happens to be YOURS (or worse still, MINE !yikes!)? And odds of 1:50 are not all that long...when you think about it.

Gold = portable, durable and exchangeable wealth...


GoldiloxUSDX cracks 86#1437034/30/06; 07:47:39

The 86 floor on Friday has been cracked in overseas weekend trading. Might this portend more waterfalls, especially with planned interruptions in the US Monday?
The Invisible HandGalbraith, General Motors and Microsoft #1437044/30/06; 07:58:08

Galbraith, "What Comes After General Motors?", "New Republic", Nov. 2, 1974, p. 16:

"The case for private ownership through equity capital disappears whenever the stockholders cease to have power – when he or she or it becomes a purely passive recipient of income. THE MANAGEMENT IS A SELF-GOVERNING, SELF-PERPETUATING BUREAUCRACY. It can make no claim to the traditional immunity associated with property ownership. The logical course is for the state to replace the helpless stockholder as a supervisory and policy-setting body; the forthright way to accomplish this is to have a
public holding company take over the common stock."

A self-governing, self-perpetuating bureaucracy. Is that not what the Brussels EU-Commission is?

mikalDollar zombie: Nothing to see here#1437054/30/06; 09:04:30

Major Dollar Reversal? NFP Will be Key - Sunday, April 30, 2006
Non-farm payrolls on Friday and thin holiday trading in key markets are some factors mainstream analysts will use this week.

mikal"Nothing to see here"#1437064/30/06; 09:09:28

There, that's better. I'm not going to implicate MYSELF!
"Move along."

Gandalf the WhiteNOT to worry, Sir Goldilox ! (The US$)#1437074/30/06; 09:29:27

Are we having fun yet ?
There is a "support" level at around the US$ Index of 84 !
That should be equal to GOLD at about $850 ---
AND if the US$ breaks that level -- there are no more SUPPORT levels!!!
(Where is Sir Limit UP ?)

mikalBirthing US currency: politically correct version#1437084/30/06; 09:32:15 AskTheStreet: Currency Supply - April 30, 2006
Brief column on the daily currency creation process and institutions involved, mentioning dollar's decline as an afterthought.

GoldiloxAttacking the Internet#1437094/30/06; 10:02:05


If you don't do anything else this weekend, go read up on corporate plans to hijack the public's Internet. Yup - members of CONgress don't want y'all becoming too smart (for their own good) it seems. So the corpgov pimps are pushing through "internet reform" (read: theft of service) in return for promises and favors. Click the Act Now button.

Here's my letter:

"You're supposed to be a political leader, right? There is presently pending legislation which would allow corporations to essentially hijack the public internet by giving preference to corporations over humans.

Now don't you think that's a little off? Weren't you elected to represent humans? Or, are you so far into the deep pocket of the 1001 Abramoff-clones who make a mockery of lobbying reform that you have completely lost touch with Americans here in the district?

I urge you (and I will be voting with my campaign contributions to free internet supporters this fall) to respect America's right to harvest the rich yields of open internet access - without bias or access restraints by corporations or hack politicos who are looking only to line their pockets and the public good be damned.

Try to remember, we paid for it."


If discontinuing the M3 isn't covert enough, the corportions licking their chops over internet access diversion are showering CONgress with goodies to get Barton's sellout passed. Check out the hubbub!

Currently a Google search on "gold" brings up a lot of competitors, but a search on "USA gold" still brings CPM and the forum as 100% match. Proposed Internet policies might leave that open to "interpretation" (aka bribes).

Here is my letter:

"Dear Senator/Rep,

The Internet was built with our tax dollars as a free and open environment for research and commerce. Now some major corporations want to divert our accesses specifically to their "paid for" chosen sites and block competition. When I perform a search, I want to see the best fit, not somebody's "reasonable facsimile" designed solely for their profitability.

This is no more "freedom minded" than asking the US Armed Forces to only protect international corporations and ignore threats to citizenry.

In an environment where more and more US infrastructure assets are being sold off to the beneficiaries of foreign trade deficits, preferential treatment for international corporations amounts to selling out US voters to the highest bidder."

ThoreaulyThe gold price and the money supply#1437104/30/06; 11:19:19

I'd be interested to know what Forum contributors think of the author's premise regarding the money supply -- i.e., if M1 is the best gauge from the Austrian perspective (which has sound money as its basis), then (1) is his gold price calculation sensible, and (2) what does M3 matter?
goldenpeacehaiku#1437114/30/06; 15:19:56

generous Hand of Truth opens;
releasing the golden Light
that was never hoarded just there.

onward down the Trail we go ...
Blessings and good luck

ToolieThoreauly#1437124/30/06; 15:38:59

I'd have to guess that in 1932 (what the author uses as a baseline) M1 was a larger percentage of total existing dollars than it is today (a guess). M1 if memory serves is bank deposits and cash on hand. Maybe L-T bonds and blue-chips would have made a better choice?

I think in choosing which "M" to use as a guide you should consider what you perceive as the roll for gold in the coming years. It's is my opinion that gold will be the asset that many countries use to offer credibility to their currency, in a way that is similar to the way that hydrocarbons offer credibility to the forthcoming gulf currency unit.

So to answer the question; which one of the "M"s would BEST stand-in for a wealth reserve. M3 being the longer term, slower moving seems the better comparison. MO FWIW

WhitewaterwomanQuestion for Gandalf#1437134/30/06; 16:09:02

Gandalf, why do you say 84 is critical support for the US$ when it was below there in late 04 and early 05? Are things different now? I would have thought 78 or 80 would be the critical level, but would love to hear your thoughts and reasoning.

Sure glad I've got gold! I feel protected and hedged.

TownCrierAnnouncing the CMRE Annual Spring Dinner Meeting -- Thursday, May 11, 2006#1437144/30/06; 17:09:40

The Union League Club - 38 East 37th Street, New York City

Once again, the meeting will observe the basic purpose of CMRE -- to promote public understanding of the nature of monetary processes, both domestic and international, and of the central role a healthy monetary system plays in the well-being, indeed, in the very survival of a free society.

^---(see url for details, meeting agenda)---^

An impressive list of speakers...

Posted on behalf of Elizabeth B. Currier, President, Committee for Monetary Research & Education, Inc.


USAGOLD / Centennial Precious Metals, Inc.Especially designed for those who are taking their first step...#1437154/30/06; 17:13:15">gold ownership starter kit
Goldendome; 17:19:06

Quote from the Peter Schiff interview; during discussion why gold is not in a bubble:

"This epitomizes what's going on. Microsoft (the poster child for the whole new economy) closed down 11% today to $24.00, a new 52 week low.

In December 1999 (at the heyday of the new economy) Microsoft was at 60 bucks; gold was at $290. Today, Microsoft is $24.00 and Gold is $651.00. Imagine if you'd asked someone on the street in December 1999: what would be the better investment for the next six years-- Microsoft or Gold? There isn't one person in a 100,000 that would have said gold.

Now, Microsoft is down 80% priced in gold and it's still falling! And, if you asked the average person on the street today: what's been the better investment over the last 6 years--Gold or Microsoft? They'd still say Microsoft!! They have no clue!!!"

Most people don't even know that gold is outperforming microsoft! ... I think I know what a bubble is. I see the bubble in real estate, I was there in the bubble. We are so not there. A bubble is a society thing--overwhelming and permeating all aspects--everyone's got to be in it--everyone is in it; clubs spring up; you can't lose in real estate. Most people don't know yet that gold's even gone up! If you tell most people that you're buying gold, they look at you like your from Mars.

GoldendomeURL for the previous post#1437174/30/06; 17:24:12

We'll try the URL again for the previous message and see if it takes correctly this time.
TownCrierThe Dragon Awakens: Chinese-Saudi Economic and Investment Potential#1437184/30/06; 18:01:46§ion=0&article=81550&d=1&m=5&y=2006

(excerpts) ...It is no coincidence that President Hu Jintao of China came to Saudi Arabia straight after his state visit to the US in late April.

But it is not on the energy front alone that Saudi-Sino relations are being built. During President Hu's visit, a number of accords were signed in security, defense, health, trade and youth matters. There were discussions about establishing a Chinese strategic oil reserve in southeast China with Saudi supplies, which again makes eminent sense given the possibility of a breakdown of Iranian oil supplies to China....

However, it is the increasing economic and investment ties at the private sector level that is gathering pace between the two countries. The private sectors of Saudi Arabia and China have come of age. The Chinese, while operating under a benign centralized economy, to all intents and purposes are working on a free market basis....

Discussions are under way in many areas that will be of benefit to both private sectors in the fields of finance and banking, petrochemicals, cement production and electronics. It is somewhat surprising that there are no Chinese or Saudi banks operating in each other's country to intermediate in the growing trade flows. The possibility of a Saudi-Chinese Bank being soon established is very likely, as some Saudi banks are making a bold step to open branches, or acquire existing banks in the Far East...

Nations are looking ahead to give themselves a head-start in dealing with China as it opens up to the world. ... Saudi Aramco saw such opportunities many years ago, when it sent its first batch of Saudi engineers and joint venture management to China and made sure they learned Chinese and understood Chinese methods of doing business. The Chinese are a proud people, with a long history and glorious civilization behind them. Understanding them well will bring benefit to both sides, as so many businessmen find out to their cost when not understanding how to deal with other groups of people...

China's appetite for energy is only one dimension of the Saudi-Sino equation, but so is its appetite for raw material to fuel its manufacturing base. The untapped Saudi mining sector should be the next logical arena for joint venture cooperation. The coming decade will be Saudi Arabia's chance to forge new investment and economic opportunities and alliances, or in other words, thinking West but moving East...

^---(from url)---^

In a globalizing world, those who remain set in their old ways may find themselves left far behind. Make the savings transition to gold -- the one reserve asset respected without hesitation the whole world over.


The Invisible HandWill they or will they not?#1437194/30/06; 18:16:02

TEHRAN, Apr. 30 (MNA) -– Iran will establish an international energy bourse company in the NEAR FUTURE.
The Islamic Republic plans to open its own oil exchange, the Iranian Oil Bourse (IOB), the company's charter will be registered in the Free Trade Zone of Iran's Kish Island on the Persian Gulf in the CURRENT WEEK, the report commented.

Another prophet let down by history

John Kenneth Galbraith never won the Nobel Prize, but his waspish prose and left-wing Harvard nostrums shaped popular economics across the world for half a century. A protégé of Keynes, with a layering of 1920s German Marxism, his doctrines have almost all been picked apart by more rigorous scholars or fallen out of academic fashion but his aphorisms are forever. "Recessions catch what the auditors miss"; or, a more telling window on his beliefs, "Under capitalism man exploits man; under communism it's just the opposite."
By the late 1960s he refined this into The New Industrial State. General Motors was his prototype villain, with total control of its markets. "He is one of those unfortunate people who lived long enough to see his ideas discredited," said Doug McWilliams of the Centre for Economics and Business Research.

Or was he let down? (Not that I am a fan of him – quite the contrary.)
Here's the latest (?) on General Motors.
Obviously, GM has been hit by overproduction, which is the flip side of the coin called "underconsumption." Too many cars, not enough buyers. Over time, the declining market share of GM and of other American automakers leads to a decline in the auto work force. That means fewer working Americans able to buy cars, cutting sales further.
Employers prefer workers from new EU states to 'lazy' Britons
The girl looks very pretty but no mention of the Bourse.

Meanwhile, in Luxembourg,,5744,18979972%255E36375,00.html
EC anti-trust case on a knife-edge.

The Invisible HandTime for a book commercial!#1437204/30/06; 19:54:01

How to Win Every Argument: The Use and Abuse of Logic (Hardcover)
by Madsen Pirie

Availability: This item has not yet been released

In this witty and infectious book Madsen Pirie provides a complete guide to using - and indeed abusing - logic in order to win arguments. He identifies with devastating examples all the most common fallacies popularly used in argument. We all like to think of ourselves as clear-headed and logical - but all readers will find in this book fallacies of which they themselves are guilty. The author shows you how to simultaneously strengthen your own thinking and identify the weaknesses in other people arguments. And, more mischievously, Pirie also shows how to be deliberately illogical - and get away with it. This book will make you maddeningly smart: your family, friends and opponents will all wish that you had never read it.

Publisher's warning: In the wrong hands this book is dangerous. We recommend that you arm yourself with it whilst keeping out of the hands of others. Only buy this book as a gift if you are sure that you can trust the recipient.

The Invisible HandNext question ...#1437214/30/06; 20:02:07

Argument is one thing.
Reality Another.

How can the two correspond?

The Invisible HandChanging patterns of world power#1437224/30/06; 21:00:01

The patterns of world power are changing at bewildering speed.

The Invisible Hand$100 bln Iran-China energy deal#1437234/30/06; 21:13:53

LONDON, March 30 (IranMania) - Chinese Ambassador to Tehran Lio G Tan has said that the oil and gas deal between Iran and China has been thoroughly studied by experts and is ready to be signed, MAN reported.
The Chinese ambassador was clearly referring to an energy agreement between Tehran and Beijing which is worth over $100 bln.
"No country can prevent the deal," the ambassador told the Mehr News Agency correspondent in Tehran last week.

TopazSundeck.#1437244/30/06; 21:54:39

On the passing of JK Galbraith,it seems fitting to post a recent article by his son James ...The Predator State...most thought provoking!
LimitUpGandalf the White#1437254/30/06; 23:26:28

Lurking, reading, and growing richer.
TownCrierGold's hour may last a while#1437264/30/06; 23:38:34

By Peter Brimelow
May 1, 2006
NEW YORK (MarketWatch) --

...anecdotal evidence. The gold funds say they aren't seeing much of an investor inflow. Remarkably, one major fund, First Eagle Gold Fund has actually chosen this moment to close its doors to new investors.

Similarly, as I've noted before in this rally, the gold geezers (my name for the services that were around at the time of the 1980 gold blow-off) remain confident but eerily calm.

Dow Theory Letters' Richard Russell wrote Friday:

"Still no gold or silver stocks on the top 25 most active stock list. From what I see, the U.S. public isn't in gold at all. Most have never even seen a gold coin...Gold now rising against virtually ALL foreign paper junk currencies. Sooner or later we'll see a world rush to buy gold."

Over the last three years, I've repeatedly turned to Australia's The Privateer. This weekend's commentary was particularly incisive...

"The great handicap that most investors bring to what is happening in the precious metals markets now is that they have little or no knowledge of the NATURE of money or of the fragility of the paper investments which they have been playing with for their entire adult lives.
"A soaring Gold price makes them irritable and confused. That's supposed to be an 'inflationary indicator,' but Washington and Wall Street are telling them that inflation is 'minimal.' Gold and Silver are to them, exotic and inherently risky investments. After all, weren't they in a bear market for decades when everybody was getting rich on paper?"

"Now Gold has broken above its $US 570 double top. ..... This type of activity has only ever been seen on this chart once before, it the run up to the $US 850 all time high in late 1979 - early 1980. ....... The REAL answer to 'How Far To $US 850' is - who cares? Get there we will, and even when we do, we'll have 26 years of rampant monetary inflation still to go."

^---(from url)---^

Amen to The Privateer's insight regarding investors having "little or no knowledge of the NATURE of money or of the fragility of the paper investments which they have been playing with for their entire adult lives."

As they emerge from their long stupor, gold -- like any new dawn -- will look attractive (and most definitely worth the price).


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