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ARCHIVED DISCUSSION FROM 1/20/2006 All times are U.S. Mountain Time (Yesterday's Discussion.) Goldilox (1/20/06; 23:25:37MT - usagold.com msg#: 140707) Sinclair's Daily http://www.jsmineset.com/ snip:Every time gold runs hard they pull out the gold-phobic Bundesbank to do a blitzkrieg on the price. Any effort by Germany to sell gold will be offset by China buying Germany's gold. If that financial vaudeville act was not a cry for help from the shorts at gold $565, I never heard one.When will the foolish holes in the wall gang of fund managers wake up to the fact that the most bullish thing that happened for gold from 1970 to 1980 was Central Bank selling?Central Bank gold will never see the marketplace but will be traded between the banks themselves. Should any central bank demand sales into the market, all they would do is facilitate huge buying of major lots at singular prices free of commission. This attracts big money and is therefore bullish. Had gold held $565 today, then I would not have been at all surprised to see it take out $600 next week.So this is it. The battle of the gold titans is on. This time the naked shorts are the gold fund traders. They were the longs that recently got killed; now they are the shorts so their demise again isn't out of the question. With position published by COT, when a battle like this runs red knowing the size of any position is inherently its own demise. The shorts thank god that the position size is as of Tuesday and not Friday.My position remains the same and $544.87 is the number. Twice the shorts hammered at it and failed. God help them if they fail again.-GoldiloxHow often have we seen the "top callers" more accurately reflect strong support? Goldilox (1/20/06; 23:21:44MT - usagold.com msg#: 140706) Russell's Words @ Pritcho,I find it pretty hard to argue with his logic. At dinner this evening, I remarked to a colleague about the differential between DOW2000 (11k) and DOW2006 (11K) as a 55% depreciation when measured in gold. I could see the wheels turning as he analyzed his paper positions.It won't take a complete collapse of the dollar or the stock market to accelerate gold "revaluation", as Belgian puts it. Because the gold market is dwarfed by the FOREX and other markets, it will take no more than a "leaning" toward a stronger gold position by some bigger players and more public buyers. Their media mouthpieces will continue to sell the investing herd on the concept that it is "risky and volatile" until they are fully invested. Then they will hype it to get the next level of pyramid buyers interested and run it up some more. That has been the formula for bull markets since the dawn of investing. They won't fight the trend. They will APPEAR to fight the trend.The fly in the ointment is discovering the top, and accurately predicting the movement from that point. Geopolitics and global finance will try their best to "control" that in their favor, and the end game hinges on their ability to accurately maintain that control. PRITCHO (1/20/06; 22:16:48MT - usagold.com msg#: 140705) Re Previous Post - - - GIG should have been BIG - - too fast on trigger finger! PRITCHO (1/20/06; 22:15:25MT - usagold.com msg#: 140704) Richard Russells Latest Comments - - - January 20, 2006 http://ww2.dowtheoryletters.com/DTLOL.nsf Yes Mr Russell is GIG on Gold & at 80+ hes been ther & done that - -Soooo he's worth taking note off & thats for sure!Snip:Gold -- Gold is the standard, the base, the only real money (although at times silver also fits this definition). Consequently, the true price of all other items rises or falls in relation to gold. If it takes more pounds of steel today than it did last week in terms of a given quantity of gold, than the true price of steel is declining. If it takes fewer ounces of titanium to buy an ounce of gold this month than last month, than the true price of titanium is rising. If your home can be bought for less gold this year than last year, then the true value of your home is increasing.The Fed has been creating liquidity at a furious pace. Over the last six months, M-3, the broad money supply, has risen at a 9.0% rate. Thus, the US, money-wise, has begun to resemble a banana republic. This has not been lost on real money, gold. As this frantic MONETARY INFLATION continues, the price of almost everything declines in relation to gold. Or to put it another way, it's taking more of almost everything to buy a given quantity of gold.You don't believe me? OK, then let's check a few important examples. The chart below shows gold in relation to the Phila. Housing Index. The direction is UP, meaning that gold is outperforming housing. Of -- it takes an increasing amount of housing to buy a fixed amount of gold.Next, we see gold in relation to the Banking Index. Same story, gold is outperforming the banking industry.How about tech? Here I show HUI, the gold average, plotted against SOX, which represents the chip industry. And the conclusion is again the same -- gold is outperforming tech.Let's look at Treasury bonds in relation to gold. You can see the answer below. Gold is far outpacing bonds. Or again, I should say, it's taking an increasing amount of T-bonds to buy a given quantity of gold.You prefer stocks? OK, below we see the widely-followed S&P Composite in relation to gold. And the answer is the same. The gold shares are outperforming the S&P Composite.The charts don't lie. The charts tell us that it's taking more of everything to buy a given quantity of gold. This is the result of monetary inflation. Monetary inflation leads to price inflation, and the tell-tale indicator is gold. No wonder governments don't like gold. No wonder the central banks despise and fear gold. They fear gold because when gold rises, it's telling the world that their governments are debasing the currency. Economists can babble about "inflation being contained," and the government can release phoney inflation statistics. The Fed can eliminate M-3 statistics so that we don't know what's happening to the broad money supply.But gold knows. Gold tells us the story. When gold rises as it is now doing, it's telling us that our so-called money, the money that everything we own is denominated in -- it losing its value. This is inflation pure and simple. Rising gold trumps all the government lies and denials; rising gold trumps all the phoney statistics put out by the Fed ("core" inflation for example).I find it simply fascinating how little is currently being written about the big bull market in gold. Where anything is written, it's almost a warning that "gold is volatile," that "speculators are driving gold up," or that "the gold shorts are simply being squeezed." Never a word about the Fed creating new inflationary oceans of liquidity, never a word about the dollar losing its purchasing power, never a word about real money rising against all other asset classes. Silence reigns regarding what could be the most significant bull markets in recent history.I lived through the gold bull market of the 1970s, but I believe this is a much bigger, more important gold bull market. First of all, the 1970s bull market was pretty much about US inflation. This bull market is about a world view of the dollar, that view being that the dollar is headed for major trouble -- due to massive US debts. Furthermore, that 1970s gold bull market ended with interest rates "through the roof" and with long T-bond near 15%. This gold bull market is progressing with LOW interest rates, and low interest rates don't bolster the dollar. Finally, this gold bull market includes "an extra" one third of the world -- China, India, Russia and most of Asia. While the European central banks have foolishly been selling gold, I believe the "secondary" central banks have been buying gold. Gold is moving out of Europe and into Asia. Follow gold and you're tracking the direction of economic power. Ned (1/20/06; 19:50:31MT - usagold.com msg#: 140703) @ coolslug I'll take a crack at your question.It would be impossible to say that a 20% increase in the POG would translate into a 60% increase in gold shares. Historically, goldshares have offered leverage to the price of gold anywhere from 2X to 5X, both up and down. Asking if 3X is reasonable is a can of worms, lets first ask if an increase of 20% in the POG is reasonable?It's all if's, if's and more if's.If you are a REAL student of this forum you know that the foundation of gold ownership starts with a footing made of physical gold. Then a conservative layer of 'steady-eddie', non-hedged imtermediate and senior producers, a thinner layer of promising producer/explorers and then a sliver of speculative junior explorer.I personally play the game with about 50/60% physical and then 30% Central Fund /intermediate producer. The 10% sliver is held for speculative juniors/explorers. Here's the twist, I watch the HUI/POG ratio. When POG gets ahead of shares I switch to shares. When the shares get ahead of POG I switch to CEF.The HUI has had a nice run from 258 to 305/310. I consider the shares ahead of gold. I am in CEF at this time, I consider the shares ahead of themselves. I believe gold stocks are now discounting $600 gold. Gold will run, shares will wait...until the next run.Hope this helps. melda laure (1/20/06; 17:56:50MT - usagold.com msg#: 140702) free money? or free energy? http://www.cheniere.org/references/sachsO3.pdf With one caveat, Belgian. Reality is simply a measure of the extent of our ignorance.I just saw Jared Diamond try to explain why Western Civilization has so much "cargo" and Papua New Guineans so little. He doesn't really know- for all his various explanations: it all boils down to whether your saving and investing "technology" (farming/building/etc) is SCALABLE TO SIZE.Nothing scales too far without being able to create independent contracts. Otherwise Warren Buffet would have to be at the Sees Chocolate factory every two weeks to hand out payroll checks (or worse, he might have to hand out the yellow putting MK out of work!).But J. Diamond and the other scientists who reviewd the material do not know the secret of great wealth. They are ignorant of economy and of all things military. Alexander the Great had sucess because he went towards Persia. Had he landed on Plymouth Rock, he would have been a failure.As in finance, so too in Physics. This age is ignorant of many many things. I had hoped this ignorance would last a while longer and enlightenment would come in a happier and more civil time: a hope that was ill founded, I fear this now will change. TANSTAAFL used to sit as the basis of our reality. It is no substitute for the golden rule. The giants must succeed, or there will be a long age of darkness. Events come swiftly now, even counted in the years of men, that force their hand.The finance of open systems is not the same as the finance of unbridaled fiat- whose fruits are only destruction, tyranny and death.I apologise for the horrible subscripts. The first page ought to contain enough heresies for most. The intrepid can muse upon pp 477,478. TANSTAAFL is dead, may the golden rule have a happier reign! USAGOLD Daily Market Report (1/20/06; 17:49:31MT - usagold.com msg#: 140701) Page Update! http://www.usagold.com/DailyQuotes.htmlThe 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 ExcerptGold ends off after new 25-yr peakJanuary 20 (from MarketWatch) -- Strength in energy prices, tensions in Iran and a fresh threat of terror attacks combined to lift investment demand for the metal during much of the week, but gold prices eased as analysts warned of further volatility next week and traders took profits.COMEX February gold contracts closed at $554, down $5 for the day and $3 for the week, still, the session's peak of $568.50 surpassed the $561.50 high from Tuesday, which had been the highest level the market has seen since March 1981."Expect volatility to go higher and trading ranges to expand," said Jon Nadler, an investment products analyst at bullion dealers Kitco. But overall, "aside from the amalgam of worrisome news items coming from many corners of the globe ... the investment community is also looking with apprehension at economic news and has nothing to smile about," he added.Nadler cited al-Qaida's warning for the United States reported Thursday, as well as "Iran playing the big roulette" with the resumption of its nuclear program.In addition, downbeat economic news included disappointment over financial results reported by General Electric Co. and reported plans for layoffs at Ford Motor Co.Gold thus "remains a beacon of safety, diversification and comfort," he said.Gold prices tacked on nearly $15 an ounce in New York dealings on Thursday after al-Qaida's Osama bin Laden warned about attacks against America in an audiotape aired by Arab TV station Al-Jazeera. The CIA later confirmed the authenticity of the tape.---(see url for full news, 24-hr newswire)--- USAGOLD / Centennial Precious Metals, Inc. (1/20/06; 16:25:30MT - usagold.com msg#: 140700) FREE Gold Information Packet... http://www.usagold.com/Order_Form.html Goldilox (1/20/06; 15:55:39MT - usagold.com msg#: 140699) Don't Worry, Be Complacent @bskija,Your techno-babble has a lot to do with some markets, but maybe not as much with currency issues.I don't think anyone looking closely expects BOJ, PBC, etc., to dump their $-based assets. A more pertinent question is:"Will they keep up with the demand placed on those assets by hyperbolic debt growth? I don't think that's as likely, and very well affects the longer term value perceptions."It's easy to live in the first leg of a hyperbola and not be concerned by the perceived inflation rates. However, the second leg accelerates the slope rather quickly and will defintely be "noticeable".It's a lot like cruising down river and enjoying the "help" from the current, until one finally realizes that the current is increasing rapidly do the the waterfall ahead. It's difficult, nay impossible, to escape that current beyond a certain point. bskija (1/20/06; 12:55:04MT - usagold.com msg#: 140698) Be Happy Don't Worry Be happy don't worry! Japan or China is unlikely to exchange dollars for gold. Japan lost World War Two unconditionally. If you look up unconditionally in a good dictionary you will discover it means that Japan must sell its soul to the victory. Japan fought like hell so this would not happen. Now they do as they are told. In the case of China, their game plan is to allow British and American business to build factories in China to feast on the cheap labor. They are doing this because they know that they are back in the 1940s in technology and will jump into the twenty first century overnight by allowing British and American businesses to do their work in China. Selling their dollars for gold could jeopardize their game plan. A country can never be a super power if they are fifty years behind other countries in technology. Remember Japan would sell toys and trinkets before the British and Americans moved in. The US held an advantage after World War Two because Europe and the Japan were devastated. They had the world's business all to themselves until Europe and Japan got back on their feet in the seventies. This fact gave the US a big lead in technology. We shouldn't look back though because Europe and China are gaining on us. Druid (1/20/06; 11:26:55MT - usagold.com msg#: 140697) Equity Markets.. Druid: There seems to be some sort of liquidity drain taking place in the equity markets throughout the world as of late. I wonder how long this will keep up? Are the markets reflecting some signs of uncertainty prior to a change of leadership at the U.S. Fed? Stay tuned.... Survivor (1/20/06; 11:22:13MT - usagold.com msg#: 140696) Public Perception of Money @ FlatlinerRemember that John Q. Public in the western world has seen nothing but depreciating fiat currency for generations; they know nothing else. Their perspective about money is about the same as the preverbial frog who gets boiled alive because the pot of water is changing temp at a rate so slow that it doesn't alarm him. On a different subject: I see that the PPT has done their work at the Crimex this morning. With the DOW at -150, we should see their effort switch to Wall street any time now.- Survivor Goldilox (1/20/06; 11:02:43MT - usagold.com msg#: 140695) Capital Preservation @ Flatliner,Well spake!Notice the "top-callers", as Sinclair labels them, are in full mating regalia today - Marketwatch, CNBC, etc.They gently acknowledge the fundamentals, but are so concerned that gold will stumble on some miracle rebalancing of US obligations.I think we all know who's really stumbling, as we watch the DOW bounce off 11k like a basketball backboard. Gandalf the White (1/20/06; 10:33:05MT - usagold.com msg#: 140694) Friday is "fun day" on the "COMIX" !! http://isht.comdirect.de/html/detail/main.html?sTab=chart&hist=1d&sSym=GLD.FX1 Boyz are playing GAMES !WAIT until next week.GO YELOW !<;-) Flatliner (1/20/06; 10:06:52MT - usagold.com msg#: 140693) @ -insurance- and -wealth reserve- is NOT a semantic one ! Teach me. :)It was barely a year ago when I first realized that I might, just might, be being misled by my government (USofA) with regards to price inflation. What's reported and what's experienced are two different things and in my region, the spread is probably 8% (or more). I figured that any cash that I held that depreciated at 10% a year would be absolutely worthless to me in 5 or 10 years.Where do you turn? What do you turn too?At the same time, I had a savvier case of the NASDAQ flu. Having held and profited from many high fliers through the 90's, only to find their real value next to zero, I was *not* going to jump right back in and blindly ‘trust’ the system that just burnt me so bad. So, as any good ‘investor’, I looked for what historically protected capital (That's what I lost in the NASDAQ turn down). That's what I figured I would be losing by holding dollars over time. I found gold. A simple investment in reverse shows that if gold holds its purchasing power over time and the value of the dollar drops by 10% a year, gold is a no-brainer!If this provides any support to MK, the reason why I got into gold was to preserve investment capital. That's it. That was ALL that I needed. That preservation concept aligned very well with the concept of insurance. I think I see MKs point of view.But, I didn't stop there. The deception part haunted me. Why would they do that? It's obvious to me that the numbers are wrong, why doesn't anyone else see it? These questions drove me to research many different sources and at every step, I found more deception and even bigger lies! I found that there are hundreds of people that feel the same way, but the louder they speak, the louder the noise is around them canceling out their cries. Anxiety became by worst friend that kept me up at night. It wasn't until I found this forum and read the words of Another that I started to get hope. It wasn't until this last fall, when the price of gold broke out against all currencies that my rock solid belief in gold as a means of preserving capital came under question – in a positive way. As I studied this breakout, it became obvious that the foundation for a bull market in gold had been developed and it might be that I was in the right place at the right time. This actually brought a smile to my face.But, preservation of capital still plays a huge rule in my thinking. What if those that control the price of gold only allow it to rise at a rate to offset the decline of the value of the dollar? If the slow and steady approach is what we see, then the function of gold is to preserve capital – and offset loses. At the same time, there is a wild card here and that is actually people's perceptions. It is very clear to me that - People value dollars more then they value gold. If these perceptions change, gold will provide more then just the preservation of capital. If that is wealth, so be it. If it is international trade, I can stand for that also. If it's liberty and freedom from the political establishment… ah, who am I kidding here?In any case, it is a pleasure to be able to read and participate in this great forum. I do believe that, over time, peoples perceptions about gold will affect the market price and… that may be a good thing. coolslug (1/20/06; 09:58:18MT - usagold.com msg#: 140692) How does POG increase affect precious metals stocks and mutual funds in Canada? First off, thanks to all of you who contribute so much at this fantastic forum. I have been lurking here every day for a few years now and this is one of my favorite sites to come to. I have a question that I hope someone here can answer for me. Most of my investments are in Canadian gold and silver stocks and also RBC Precious Metals Fund in an RRSP account. My question is this: If POG were to go up 20% in 2006 which would be about $660, what percentage would my gold stocks and precious metals fund go up? I am hoping that my investments will increase by 60% if POG goes up 20 percent. Do you think this is unreasonable? Chris Powell (1/20/06; 09:25:23MT - usagold.com msg#: 140691) Iran confirms transfers from its foreign accounts http://groups.yahoo.com/group/gata/message/3610 Latest GATA dispatch.To subscribe to GATA's dispatches, send an e-mail to: gata-subscribe@yahoogroups.com Flatliner (1/20/06; 09:21:11MT - usagold.com msg#: 140690) @Dollars for gOLD? Osa104c, The hyper-inflationist in me would have agreed with you 6 months ago. But, after having read the words of old-timers in this forum (that call for orderly change), I have come to the belief that it is not in these countries best interest to ‘release’ their currency holdings. And, better yet, they have probably ‘insured’ themselves against their windfall of paper holdings. Take a quick look at the MTM concept that gets so much attention around here regarding Europe (and the Euro). This currency has gold on reserve as well as foreign holdings. As you've seen in posts here, the value of the gold holdings is starting to overtake the value of the paper holdings. Interesting? I do believe so.Now add in: Gold equals wealth, All paper will burn, ‘Big Trader’ HK, Economic survival and Orderly change and what you may see is that the central banks have already written off their foreign holdings! The foreign holdings are… not gold. They can not exchange them for gold (They are too big!). It may be that they will let the value of their foreign holdings go to ZERO and not release them in order to keep things orderly.But someone might say, "hey, they are losing value as the dollar depreciates thus they might release these for something better. I know that I would." If you really think about it, if they have already taken the stand that foreign currencies are worthless, then recycling them back into the foreign markets to support the debt system helps keep the economy going. That, actually, has value (More then zero). For the US, as long as foreign dollars continue to flow into supporting our debt system, Americans will continue to spend. I would conclude that the value in foreign holdings is to keep the system well ‘oiled.’At the same time, I would not call them stupid (I know that you did not). I would be willing to bet that every country out there has a substantial gold reserve that is both public and private. This is their insurance. Watch it. You might find that even as the value of foreign currencies drop, the value of the reserve stays the same because the gold reserve gains offset the paper currency loses. This, in my opinion, is a brilliant move on their behalf.So, if you're looking for motivation from the big players, that seems to make as more cents then just saying that the dawn of a new day is coming that will show you the value of gold. Clink! (1/20/06; 08:48:01MT - usagold.com msg#: 140689) Glass ceiling ? I was wondering what was going to happen today. On a share option expiry day, with the POG up yet another 1% over yesterday's close and a boatload of options way in the money, and the HUI (which opened up around 1.7%) is now floundering in negative territory. Ah ! The joys of the paper games ! osa104c (1/20/06; 08:35:14MT - usagold.com msg#: 140688) Dollars for gOLD? Numbers may be incorrect, but lets say Japan holds one trillion US$'s, China 8 Billion.....at some point won't they demand payment, (drop "US" to our knees)????.........release of US gold holdings?? Belgian (1/20/06; 08:02:42MT - usagold.com msg#: 140687) Druid Let's keep it (very) simple, Druid : Let each and everyone play gold, his/her way. I just communicate my personal view/perception of the evolving nature of gold and try to provide as many sound arguments as there are possibly to find. Let's not waste time in discussing what insurance, investment, wealth, etc... do exactly mean. Gold will show us what it wants to be.And the very rare, gold=wealth, advocates...are still firmly isolated by the so called 1001 gold commentators/observers/followers/explaners. Example : China cannot buy gold because there is not enough of it. China cannot sell gold because they will lose money. Great insurance !?What about having gold-reserves that are in the process of revaluation as to represent all the wealth that has been produced ?When any stock goes up 10 or even 100 times...nobody defines this as wealth or shows dramatic emotions. When gold shows early signs of being priced around a 25 years all time high...it is a bubble !?Don't sell apples for oranges to Belgian. :-^-: Druid (1/20/06; 07:18:54MT - usagold.com msg#: 140686) Druid (1/20/06; 07:14:48MT - usagold.com msg#: 140685) Druid: that should read "ANOTHER paradigm". Operating on about three hours of shut eye. Druid (1/20/06; 07:14:48MT - usagold.com msg#: 140685) Belgian (1/20/06; 00:51:40MT - usagold.com msg#: 140677) Druid: Sir Belgian, just my thoughts concerning the discussion of gold as "insurance". As always, another opportunity for yours truly to better understand something about the concept of insurance. I think over the last few years under the existing paradigm of gold management as brought to us by the IMS, to view gold as insurance against the managed cycles of unabated fiat currency growth was the proper view. However, as we transition to ANTOHER paradigm where there might be some bumps along the way in trying to work through the affects of unabated fiat currency growth, the collective perspective concerning gold bullion will change from that of "insurance" to that of flat out wealth. An insurance policy in its most rudimentary context is supposed to protect accumulated wealth and anticipate future wages, earnings, etc... Once exercised for that objective, the policyholder in this case is not around to enjoy the fruits of that accumulation. In this case and context, insurance is primarily used to guard against something, a potential catastrophe. Under the old paradigm, gold served this purpose masterfully as a way to protect accrued wealth, under this new emerging paradigm, gold will do this and so much more as people's collective views will change accordingly. I could be completely wrong but this is how I view the discussion. Thanks. Goldilox (1/20/06; 05:05:35MT - usagold.com msg#: 140684) Failure of gold insurance @ Belgian,"MK's insurance company > the planet's gold-holders > FAILED to insure all gold holders for the past 7 decades of permanent disaster > fiat depreciation!"Let's see - 7 decades ago, gold was "valued" at $35/oz, that being after FDR's swindle that gave it a 75% revalue overnight, so we could even start at $20/oz.At today's $560 valuation (28x), I'd say the insurance function didn't do so badly over those seven decades. It may not have been optimal, but it also didn't require "leverage" - a combination of risk and "tax".Even looking at 2000-2006, if one were to have started getting into insurance when signs of smoke and froth were gathering in the markets, we have:DOW2000 (11K) = 45 oz AuDOW2006 (11K) = 20 0z AuI know you can enumerate entry points that yielded less appreciation, and in some extreme cases, even losses, but I'm measuring from the beginning of your range and from the point that most modern goldbugs began to take notice. Anyone who got into gold at $850 (1980) is akin to getting off the tracks after the train has passed, but may not feel so bad in a couple more months/years.Using these metrics, I can't agree with your broad assessment that the insurance function completely failed all gold owners. Caradoc (1/20/06; 05:04:11MT - usagold.com msg#: 140683) @Goldilox You're right! The stocks are beginning to move and call options are sweet. Yes, they're only paper giving you the right to buy paper stock, but the greenies made in this quasi-imaginary realm convert quite nicely into real things like ounces of yellow, land, logs, solar panels, etc.Thank you for the many links you've provided here.Regards,Caradoc Ned (1/20/06; 05:03:59MT - usagold.com msg#: 140682) @ Flatliner.......all Nice posts.....#140673 very good.Wanna hear gloom and doom? After reading these forums and the J6P stories, the financial debtberg and the greed and corruption stories for 7 years I have come to a generalized conclusion.Guys like you and I and perhaps most on this board are perhaps "okay" but mankind in general is destined to fail. The default position is to blow up. Man is too stupid, too reedy, too corrupt for all of this to work out. Simple example is this "peak oil" theory, "greenhouse effect" Kyoto accord business. We all know the planet is being 'raped' and we have a sick sense that the entire world needs to hold hands and 'fix' it. Instead, governments cannot agree and this 'accord' will fail and the planet will continue to degrade until finally the "last man standing wins".It's a sorry story and as a consequence we will continue through the 'muddle through' economy and the muddle through society and then BOOM, TSWHTF, TEOTWAWKI.Financial structures will implode, "peak oil" will be recognized, debtbergs will sink and under the cover of mayhem, bombs, LARGE bombs will be dropped. Why?Again, because MAN is too conceited to fix it. The default position is to screw it up......and screw it up large is what we are good at.When?I'm sorry to say......soon. The RWE, IMVHO, will be upon us before 2010.Have a golden day. Goldilox (1/20/06; 04:44:49MT - usagold.com msg#: 140681) Miners @ Pritcho,"Furthermore, I believe the gold mining crowd is finally starting to believe that the gold bear market is OVER." - And it only took a 120% rise for them to see it. How astute of them. Belgian (1/20/06; 04:07:27MT - usagold.com msg#: 140680) 1976 - 7 and 8 Januari - Kingston-Jamaica The "principles" of the gold-accord were "confirmed"...and the G-10 "TRIED" to eliminate the knots as to force the implementation of the accords.It was the very start of the re-organisation of the IMS...THE START !!!Gold, as the former basis of internal money-circulation,... had to evolve " GRADUALLY " from then on an "INTERNATIONAL" basis (right Pritcho-post) !!! The IMS needed a new anchor. The SDR's could only function...IF (!!!)...there would "remain" enough solidarity between the member states + the building of the IMF as a sort of world central bank.Try to understand what this gradual "DEMONITIZATION" of gold is meaning, when thinking about the freegold wealth reserve concept.Amen PRITCHO (1/20/06; 03:46:30MT - usagold.com msg#: 140679) From Richard Russells Latest Remarks - - - -January 19, 2006 http://ww2.dowtheoryletters.com/DTLOL.nsf SNIP:Gold -- is moving with high volatility, rallying and declining as much as 1% a day. I've been watching the gold action, and I have a different take on gold action today. I now distrust and almost ignore the Commitment of Traders. Gold is too international. What does some businessman in China or some bride in India care about whether the Commercials are shorting gold or whether gold is overbought? What does a gold trader in Dubai care about the open interest in gold on the Comex? No, the gold market is totally international. The gold action has come down simply to world supply and demand. And the demand is growing.Furthermore, I believe the gold mining crowd is finally starting to believe that the gold bear market is OVER. Thus, they are cutting back on their forward selling (shorting). They are starting to go with the flow, and the flow is bullish. So gold mines, no more shorting your own supply. Why? Because your supply is getting more profitable month after month after month.I was looking at some central bank holdings of gold. The US leads the world with 261.8 million ounces of gold (assuming the gold is actually there). Germany has 110.1 mils, ounces. Switzerland has 41.8 mils. ounces. China with its 1.25 billion people has only 19.3 mils. ounces. India has 11.8 mils. ounces. Russia has 12.4 mils. ounces. And Britain, which stupidly sold most of its gold at much lower prices, is down to 10.0 mils. ounces of gold.-----------------------------------------------------------------------------------------------Must admit I'm really enjoying Gold's reluctance to go down ski (1/20/06; 01:11:49MT - usagold.com msg#: 140678) @Thoreauly #140656 Enjoyed your question and the various responses. Want another view?I have been working in the area of "other people's financial problems" for several years. A key observation is that, like snowflakes, NO TWO INDIVIDUALS HAVE THE SAME FINANCIAL STRUCTURE. I usually discuss financial issues and EVERYTHING ELSE that is near and dear to the individual, and his spouse, over a period of several hours before I dare to suggest the first move. Why do I do this? You can easily guess at a couple dozen accurate answers .... the central theme is: "Is the individual FULLY prepared to make this work"? Given what you have provided, the correct answer for one individual is YES. But for another, NO.Said another way, you did not and can not provide nearly enough vital information for anyone to properly begin to answer your question. Furthermore, an otherwise useful forum like this is not suited for properly taking on such a complicated task.Your "bait" was easy to take for some who visit here. However I liken the responses to that of a "Jailhouse Lawyer." 1. Sounds good2. The advice is free3. It is non-professional4. The "lawyer" does not suffer any consequences if anything goes wrong5. It usually does You are thinking of making a very big decision that has the possibility of many large consequences. I hope you find the "right" answer that is perfectly suited for YOU! Will keep you in my thoughts. Belgian (1/20/06; 00:51:40MT - usagold.com msg#: 140677) @Flatliner : orderly gold Because you also see gold as an insurance...you are expecting a dramatic event...a disaster (strong currency depreciation), against which you have insured yourself. Once the disaster has happened, you cash your insurance (sell gold) and live on.Some are even ready to take out equity (cannabalise assets) to acquire gold-insurance.MK's insurance company > the planet's gold-holders > FAILED to insure all gold holders for the past 7 decades of permanent disaster > fiat depreciation !Taking a fire insurance on your property, means you have a contract where everything is stipulated. Where is the contract of the gold-insurance ?That's why I continue to elaborate on the "change" of gold's nature. Not a opaque insurance policy but a wealth reserve holding. And that's why gold will evolve as orderly as possible. You are permanently insuring against a permanent disaster that isn't performing > compensating for the damage > because the "complex" insurance company is permanently cheating you !Those who want gold to stop being an insurance and change it into a wealth reserve ....are breaking with old gold !They don't wish to be fooled anymore by the complex insurance company (individual and state gold-holders/pricers, a priori unreliable).The google robot is not providing you (for obvious reasons of course) all the history of gold for the past 60 years.Some libraries in lilliputan land Belgium, do have gold-history written down. Gold's future is already evolving, away from its impossible insurance nature to pursang wealth reserve. And for the time being, this evolves rather orderly. Do you agree ?The essential difference between -insurance- and -wealth reserve- is NOT a semantic one ! Think deep about it as to make the right decisions for yourself whilst walking along the gold trail. 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