All times are U.S. Mountain Time
(Yesterday's Discussion.)
Black Blade (2/18/05; 17:12:32MT - usagold.com msg#: 129460)
NY gold ends tad lower; silver reaches 2-mth peak
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh75336_2005-02-18_18-14-21_n18472785_newsml
Snippit:
NEW YORK, Feb 18 (Reuters) - U.S. gold futures ended lower but held near a three-week high on Friday while silver hit a two-month peak, supported by strong base metals and a flat dollar in thin, pre-holiday trade. New York metals closed early at about noon and they are to remain shut on Monday for the U.S. holiday of Presidents Day.
Black Blade: No US trade in the markets on Monday. However, a minor point, although Gold futures were slightly lower, the spot price was slightly higher (by 40 cents). Did not expect much change today due to the shortened trading session and indeed volume was very thin. Otherwise the "grim" economic data may have been more compelling for traders. Next week just may prove to be somewhat interesting as well as entertaining. Remember that the "Coin Shoppe" at USAGOLD is always open.
Belgian (2/18/05; 16:46:34MT - usagold.com msg#: 129459)
NO 30 yrs US$ bond versus YES 50 yrs € bond
Now that the pressure for rising IRs is building...capital markets will focus on the "long future stability" of the main (competing) currencies.
Rising IRs mean that price inflation is finally going to manifest itself.
Most probably the EU will agree on lowering taxes on labor and raising taxes on consumption, imports from Asia included. A stronger euro will be needed and obtained as to stay on track with price-stability.
This will produce positive consequences for the price of gold.
-----
Russia has openly chosen side of Iran. EU will deliver weaponary to China in '05. Polarization, indeed Sir MK.
Black Blade (2/18/05; 16:45:46MT - usagold.com msg#: 129458)
GOLD IS GETTING HOTTER!
http://www.financialsense.com/fsu/editorials/vaughn/2005/0218.html
Snippit:
And what can we recommend for those brave & wise souls who are paying attention to folks like market guru & financial expert, Jim Rogers? Jim Rogers is shouting from the rooftops & preaching that we are at the beginning of a very substantial long term bull market in commodities. And gold is one of these commodities Jim is predicting will grow in demand & do quite well over the coming years.
Black Blade: Not much discussion on physical but interesting article. Even covers Bison leather shoes and the television Carnival Barkers. ;-)
Black Blade (2/18/05; 16:39:54MT - usagold.com msg#: 129457)
Gold Climbs - Dollar Weakens
http://www.insidebayarea.com/businessnews/ci_2577091
Snippit:
Greenspan said Thursday it is "imperative" that the government restore fiscal restraint to prepare for an aging workforce and the rising burden of retirees on Social Security and Medicare. "Looking out beyond, say, 2008, the problems we have with the budget deficit are huge, and therefore we need very significant changes to come to grips with those issues," he said in response to a question.
"It would appear he scared enough people about the future," said Leonard Kaplan, president of Prospector Asset Management, a money-management company in Evanston, Illinois. "His talk about Social Security and unfunded liability scared a lot of people. People bought gold when he stopped speaking."
Black Blade: Uh.... Gold get ya some. ;-)
R Powell (2/18/05; 14:20:18MT - usagold.com msg#: 129456)
GE.....
Bonds down bigtime today with the yields responding up and....yup..flattening again, not too much, but flattening.
R Powell (2/18/05; 14:14:31MT - usagold.com msg#: 129455)
CB2
Your words here .....
"Try to be smart and build your own cache of reality in gold (and some silver) and then you can try to outsmart the market with some great plays in the gold mining markets in order to improve your physical health and position."
I'll agree, physical for sure, but I'll stay with paper markets other than (too risky) mining stocks. Paper games, paper risk for paper profits only to possibly pay off paper debts. I did smile when I saw you mention "some silver". Thanks
happy weekend to all...!!!!!
rich
melda laure (2/18/05; 14:01:25MT - usagold.com msg#: 129454)
Belgian, japanese "savings"
That's rather what I suspected, though I will have to ponder your answer.
I still remember a conversation between Greenspan and Rep Maxine Waters (or it may have been Bernie Saunders, (Vt.) Mr Greenspan said "I dont belive that increased participation by the public in the stock market to constitute additional savings." or something like that. Mrs Waters then bruised her jaw as it hit the floor. Later, Mr Saunders asked "dont you think that the SSA trust fund is an sovereign obligation of the United States?"
Mr Greenspan answered "No..."
KLUNK! More Dropped Jaws, "... to the extent that Congress is able to set the requirements for drawing benefits, there is ... blah blah blah"
Now, with your comments I can imagine a future conversation between the Japanese Prime Minister of 2013 and the disembodied head of Chairman Greenspan speaking from an ectoplasm-filled vessel hooked up to a shiny new GE Cryo-Mobile model M1-3000.
"Mr Chairman, dont you belive that the foreign custody holdings represents a sovereign obligation of the United States?".... answer: "No, to the extent that the FED can purchase any quantity of bonds for it's own portfolio and issued dollars..."
Koizumi head: "Mr Chairman, permit me to repeat the question while my secretary takes hold of your cryo-unit's electric cord"
USAGOLD Daily Market Report (2/18/05; 13:28:31MT - usagold.com msg#: 129453)
Page Update!
http://www.usagold.com/DailyQuotes.html
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 futures finished an abbreviated session with little change Friday, gyrating in a small range in response to moves in the U.S. dollar but nevertheless finding underlying support from several factors, analysts said.
The April futures settled down just 20 cents to $428.40. They spent the day and electronic sessions combined in a range of just $2.40, from $427 to $429.40.
While gold did not move dramatically, it did slip some early in the day when the U.S. dollar was firming. But the fact that the losses were limited at the time suggests it has some support, pointed out Peter Schiff, president of Euro Pacific Capital.
"Gold looks strong," he said.
"Even when the dollar was rallying this morning, gold was not selling off. It's right below a key level. If it moves higher by a buck or so (from its session highs), it will break out."
Technicians lately have been describing the $430 area as a key resistance level, since prices stopped right around here for roughly half of the trading days in January.
Schiff pointed out that the Australian dollar is around its highest levels in roughly nine years and the New Zealand dollar is around its highest levels in two decades.
"Those are pretty good leading indicators for commodity prices," he said. "You saw surging copper prices yesterday and oil is very strong."
The 0.8% rise reported Friday morning for the core Producer Price Index for January was the strongest in six years.
Schiff offered the view that more inflation is in the pipeline. Asset prices, such as real estate, are up considerably in recent years. This inflation is likely to move to consumer goods next, he said.
"All of that is pretty bullish for inflation hedges like gold," he said.
----(see url for 24-hr news, market prices)----
HEADLINES
Inflation Fears Flare After Surprise Jump in US Wholesale Prices
Treasuries Fall on Inflation Surprise
Treasury Bond Prices Are Lower at Midday
U.S. municipals drop as data fuel inflation fears
U.S. stocks slip after inflation data
Dollar rebound won't last
TownCrier (2/18/05; 12:52:23MT - usagold.com msg#: 129452)
In other words, the 30-yr bond reissue 'trial balloon' failed to float
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh73916_2005-02-18_16-59-35_nya000011_newsml
Or to put it another way, they ran it up the flagpole, but nobody saluted.
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NEW YORK, Feb 18 (Reuters) - U.S. Treasury Secretary John Snow said on Friday...
As part of its plan, the Bush administration is proposing a set of personal retirement accounts to supplement traditional Social Security.
"We don't view the 30-year bond as the best way to fund the long-term debt obligations of the United States", he said, adding that the U.S. would rely on the 10-year note.
^------(from url)-----^
The most legitimate interpretation of the long bond's retirement back in October 2001 and the continuation of that status is that the world market is underwhelmed with any desire to hold dollars for 30 years at any rate of interest low enough that the U.S. Fed and Treasury would not actually deem to be alarmingly high.
In other words, you can't sell IOUs that nobody will buy.
What do you think this portends when the world's economic superpower can no longer float bonds of that duration? It doesn't instill much by way of individual confidence in the currency to see this sign that the world has collectively turned its back to it.
By contrast, the rising movement of and physical demand for gold shows where collectively the world's confidence is being entrusted instead.
R.
CoBra(too) (2/18/05; 12:18:25MT - usagold.com msg#: 129451)
European In-Stability Pact ... Revisited
The former motor of EU's economic machine has deteriorated to its "spanner in the works" doctrine! Italy and even the Netherlands are doing their damndest best to cope.
Cope by hedonic public accounting and really learning the lesson from the perpertrators at source; Still learning, these guys are catching up fast.
The stability of a pact is as fragile as its weakest link. And now the weakest link, formerly the strongarm- and house of stability has learned that if it's more convenient you can circumvent its resulting backlashes. Alas, only if everone else thinks you're still in the drivers seat!
Memories of the US $ Reserve Status are coming to mind ... Mind you, globally we still live under this fractal monetary charade ... and fear its end by whip or whimper.
In the end it's a lot easier to abandon a pact than to honor it.
There is no honor in being brave and save in (legal tender)currency, as the proponents of same have proven to have no honor!
Try to be smart and build your own cache of reality in gold (and some silver) and then you can try to outsmart the market with some great plays in the gold mining markets in order to improve your physical health and position.
Stabilize your private financial health and don't fall for government interpretation thereof ... cb2
The Hoople (2/18/05; 12:04:31MT - usagold.com msg#: 129450)
MK
Got back in town and saw my feeble guess was good for a shiny silver dollar. Thanks. And if Ted Butler's numbers are correct that should be worth about $300 somewhere down the road. Hopefully by then $300 won't also be what it takes to by a Starbucks regular grande coffee. Thanks again.
TownCrier (2/18/05; 11:58:12MT - usagold.com msg#: 129449)
Ask about Sovereigns
http://www.usagold.com/gold/coins/BritKings.html
1-800-869-5115
Great coins at great prices.
R.
Dollar Bill (2/18/05; 10:41:23MT - usagold.com msg#: 129448)
.,.
968, That is quite a greenspan comment you posted.
For him to basically discard the GSE function means that, in my eyes anyway, that he has really tied down enough elements to ensure the one world globalist structure with dollar as basis.
The GSE's played a crucial role in liquifying the system, at least Doug Nolan has been saying so for quite some time.
USAGOLD / Centennial Precious Metals, Inc. (2/18/05; 09:56:16MT - usagold.com msg#: 129447)
Enter the gold market with grace and confidence.
http://www.usagold.com/Order_Form.html
Goldilox (2/18/05; 09:18:19MT - usagold.com msg#: 129446)
DX Pump and Dump?
http://charts-d.quote.com:443/1002980432830?User=demo&Pswd=demo&DataType=GIF&Symbol=DX00Y&Interval=10&Ht=600&Wd=800&Display=2&Study=MA&Param1=13&Param2=0&Param3=&FontSize=10
Notice the Pump and Dump action in the DX pre- and post- CCI release. Could it be related to the concern over the numbers release process?
One might imagine a call to an ETF entity sounding something like, "We're gonna need some support here!"
Goldilox (2/18/05; 08:58:58MT - usagold.com msg#: 129445)
Feds Probe Conference Board Data Release
http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=7666238
snip:
NEW YORK (Reuters) - The Conference Board said on Thursday it is cooperating with a federal agency's investigation into irregularities surrounding the release of its Consumer Confidence Index.
The Conference Board, a private economic research group, also said its senior business analyst, Delos R. Smith, has been placed on temporary leave pending the investigation.
"During the process of our cooperation with the agency, we discovered that one of our staff did not follow some of our stated protocols and procedures with respect to the distribution of the Consumer Confidence Index to the media," The Conference Board said in a press statement.
"We take this matter very seriously. We have advised the agency and have commissioned a thorough independent examination. In the interim, the employee has been placed on administrative leave pending the conclusion of our review."
-Goldilox
One too many phone calls ahead of the release? I seem to remember that George Ure was inquiring of the UoM about their release process last summer.
One thing for sure, if TPTB are really trying to populate the prison system for "slave labor", they should have no shortage of management and finance personnel.
Cometose (2/18/05; 07:58:22MT - usagold.com msg#: 129444)
crb
4 more point until we break out on the crb ...........
will this event mark the beginning of the second phase of the BULL MARKET in Precious Metals.........??????
Caradoc (2/18/05; 07:36:04MT - usagold.com msg#: 129443)
Smells like inflation
Snip from Bloomberg prior to 0930 EST:
"S&P 500 Index Futures Fall as Gauge of January Producer Prices Climbs 0.8%
Standard & Poor's 500 Index futures declined after a government report showed wholesale prices excluding food and energy increased by the most in more than six years, spurring concern that interest rates may rise more than investors expect. "
*********************
Let's see. 12 months times .8 = 9.6% inflation even without compounding the rate of increase. Could explain why yesterday the DOW once again failed to hold above 10,800 and headed south.
Could also bode well for the dollar price of precious metals.
Caradoc
968 (2/18/05; 01:16:17MT - usagold.com msg#: 129442)
Greenspan: `No Reasonable Basis' For Large GSE Portfolios
By Elizabeth Price and Dawn Kopecki
WASHINGTON (Dow Jones)--Federal Reserve Chairman Alan Greenspan said he sees "no reasonable basis" for Fannie Mae (FNM) and Freddie Mac (FRE) to hold vast mortgage portfolios and told House lawmakers that Congress should consider gradually limiting their portfolio holdings to fend off "the problems that are almost inevitable."
"We have found no reasonable basis for that portfolio," Greenspan told the House Financial Services Committee, referring to the roughly $900 billion mortgage portfolios Fannie and Freddie both currently maintain. Greenspan said Congress should consider limiting their portfolio holdings over time, "because these institutions continue to grow and have the low capital they have and continue the hedging they need to do ... they potentially create ever-growing potential for systemic risk down the road."
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This man must have incredible strong nerves and a good heart. I wouldn't sleep anymore if I had to keep all this bubbles I created from imploding ! Notice that nothing is said about a government bail-out in case of a default.
Belgian (2/18/05; 00:50:46MT - usagold.com msg#: 129441)
@melda laure >>> Japan savings
Context : The contrast between US zero savings and Japan's biggest saver on the globe. Contrast between the two economies operating under the same dollar-umbrella (dollar-currency-block). Japan producing goods, whilst brother US exports dollars. Japan's debt is 160% of its GDP. And we are talking about the world's two biggest economies.
When Greenspan looks into the future and questions demography, social security and medicare...he has to look at "savings". Japan continues to take in the exported dollars and has remained in recession for more than 13 years now. All this is very confusing to me, when I think about those savings and the unit of account (currency) in wich those savings exist (Japan) and are to be produced (US).
Japan prints yen and buys dollars. The US prints dollars and buys things that are consumed. What exactly are they both saving ? Is "the dollar" an appropiate store for "savings" !?
I was suggested that some of the Belgian goldsales were reserved for Japan, as to please the US ???
We all (US/EU/Japan) start to realize that the combination of demographics and stagnant economies are going to affect our unit of account/exchange...our savings, big and small or non existant. We can't keep going with "pay as you go" and put the increasing burden of the in-actives on the smaller basis of actives.
It is in the above context, that gold-reserves, official and private, *** FREELY PRICED ***...could become the genuine solution . Free priced gold that functions as a real reserve in parallel with a unit of account.
Engeneering general "price-stability" cannot go on when the underlying fundamentals are detoriating : rising debt and stagnant economies. Less jobs and detoriating (devaluing)savings.
WHY do the US and Japan remain silent on gold as "the" reserve ???
ViewYesterday's Discussion.
