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ARCHIVED DISCUSSION FROM 1/8/2006 All times are U.S. Mountain Time (Yesterday's Discussion.) YGM (1/8/06; 22:30:36MT - usagold.com msg#: 140261) GATA's Collection of Golden Essay's http://gata.org/essays.html Lots to pick and choose from here. YGM (1/8/06; 22:17:02MT - usagold.com msg#: 140260) Goldilox http://www.lemetropolecafe.com/Pfv1.cfm?pfvID=2612&SearchParam=Shamrock%20Summit Ed Steers Complete Essay on Canada Gold etc Gandalf the White (1/8/06; 22:09:09MT - usagold.com msg#: 140259) IF --- IF --- and IF !! http://quotes.ino.com/chart/?s=NYBOT_DX&v=i IF the US$ breaks the 88.80 level ---IF even the POO stays steady --IF the GOLD GODS smile today ---The POG shall be $555 in NY by the "COMIX" close!!GOOD LUCK BANKSTERS, HA HA !!!<;-) Goldilox (1/8/06; 21:35:21MT - usagold.com msg#: 140258) Canada Gold and Soviet Bankruptcy OZ,If you use the Optional URL box supplied by TC's input script, it will allow readers to click directly to your link.What a great post. I have been through Puplava's site a number of times and seemed to miss that one, or else my fading memory is not recognizing it. I'm glad you found it.Canada's government is often enigmatic. Why would a government so intent on labeling it's homegrown inventor, John Hutchinson, an "eccentric crackpot," so often raid his lab and confiscate his surplus-sourced "toys", thus fueling public skepticism of their disdain for his very non-traditional work? YGM (1/8/06; 21:31:45MT - usagold.com msg#: 140257) Is The Time Near? ...when the world's populous finally realizes there is and always has been a one world currency and that currency is Gold? Will it take Gold trading freely at unrestrained and unmanipulated free market value in the thousands of dollars to have that realization hit home? Like Belgian wrote why do Australia and Canada's CB's ignore Gold after giving it up to the powers that be for a song and a few peices of IOU paper? Trying to wade thru the muddy waters, reading all, even reading between the lines of Mundell's papers, or the mass of speeches by heads of the world's CB'ers on the BIS website gives only clues and a headache. The only solution I hold dear to is "Own the Gold" and watch and wait, knowing full well whatever comes, owners of physical Gold in hand will be among a selct fortunate few in the money when the muddy waters become clear. Goldilox (1/8/06; 21:11:35MT - usagold.com msg#: 140256) Alt uses of $2T @ Clink,Your fairly conservative projection does not even consider how much generating efficiency might be regained by putting a sizeable portion of that money into the development lab, and how much price efficiency would be realized by true mass production and marketing.Unfortunately, it always seems to take serious crises to open people's minds to cleaner and less politically dependent alternatives.But that is probably why gold will overshoot any reasonable parity adjustments. The gold market's lack of smooth transitions will likely mirror similar behavior in the energy markets.I especially enjoyed the analogy of "to the Moon" vs. "to the stars." OZ (1/8/06; 21:06:13MT - usagold.com msg#: 140255) @ Sir Belgian....your request A storey on why Canada gold was soldhttp://www.financialsense.com/fsu/editorials/steer/2004/0915.html Clink! (1/8/06; 20:51:02MT - usagold.com msg#: 140254) $2T http://www.tpmcafe.com/story/2006/1/5/11510/30624 Snip :-Nobel Laureate Joseph E. Stiglitz and Harvard budget expert Linda Bilmes plan to present this week a paper estimating the cost of the Iraq War at between $1-2 trillion. This is far higher than earlier estimates of $100-200 billion.End snip.The attached URL has quite a number of (polite) postings about the paper and some interesting comparisons in terms of magnitude of the various other "financial disasters" rolling down the pike towards us. For me (Engineer that I am) the most interesting was from a certain Dave Adams who penned :-I was wondering what else could be done with $1 Trillion, so I just ran through a back-of-the-envelope calculation:Current un-subsidized cost of photo-voltaic (i.e. "solar") power (i.e. the true cost): $9600 per KilowattNumber of Kilowatts capability that could be purchased with $1T:1E12/9600 = 104,000,000 Kilowatts (KW)Number of productive "solar" Kilowatt-hours per year:8 hours/day X 365 = 2980Quantity of Solar-Electric capacity per year that could be purchased for $1T (at today's prices)104,000,000 X 2980 = 304 billion KW-HoursThe DOE estimates the total quantity of KW-Hours of electricity used by US homes at about 1.14 Trillion KW-Hours.In other words, if its just $1T, then the cost of the Iraq War could have gone toward providing about 30% of the entire US home electricity requirements.End snip.Another poster compares this $2T estimate to the existing $10T U.S. government debt. And how was all that going to be paid for again ? Ah yes, Mr. B., I can already hear the whirring in the sky.C! Noble1 (1/8/06; 20:36:16MT - usagold.com msg#: 140253) Texas Hold-em It appears that one of our major foreign UST bondholders(China) may be getting ready to call our hand. I hope that we at least have pocket jacks(some physical left in our treasury). Aces would be nice if its all there. I fear we are on a bluff and deep storage gold doesn't sound like too solid a hand.Even the credible threat of the CBofC diversifying into PG may convince Japan(the largest foreign holder of our debt) to try to take their seat before the music stops.What are we going to do? Enquiring minds want to know. Where is the gold price going. If best comes to best(pocket aces) it only reaches the moon(in USD). If worse comes to worse(bluff), may God help the US economy, it goes to the stars.If foreign debtholders diversify or even just fail to participate in future purchases of our debt(both highly likely), where are they going to put those USDs. We shut them out when they expressed interest in an oil company. They can and will purchase gold. They can and will purchase euros(whoopee). At least the euro has that 15% physical gold component. A bigger plus is the fact that the Iranian oil bourse will be denominated in euros. If that bourse begins to trade 10%+ of oil in a short period of time(and there is no reason-other than war-to think that it won't), we WILL see monetary fireworks. And we're looking at a short period of time here folks. Months. March. So far the coal has just been loaded in the burner. Better get on the train before it leaves the station. My take is that if (when) these debtholders bail, we will have to bring our (US) gold into play. If we hold aces, then a 15% backing seems reasonable. In past postings I have seen mention of a $ POG that would represent. Would somebody please remind me. If we hold jacks, we will try our best to play them but I fear they may not hold up. We will probably lose the hand but not get knocked out of the tournament. If we are on a bluff, who knows what will happen. People don't like to get ripped off. Probably WWIII. We currently are, in fact, the empire de jour of the world and we should expect nothing less from our illustrious and enlightened leaders.Back to Bodog.Noble1PS: CB2. Please reconsider your decision to leave these halls. We have benefited greatly from your input. I have also been chastised and called names by some incredibly intelligent yet shallow minds within this forum. Ned (1/8/06; 18:49:55MT - usagold.com msg#: 140252) Wow ! More breakthroughs...... $541 spot of Dec 12/2005 approx. 3:00am now history, I see spot at $543 presently.Next on the list is the London PM fix. Next breach is through $539.50 set on March 26, 1981. Almost surpassed again on Dec. 12, 2005 when the PM fix saw $536.50.Surely to be tested tomorrow.Next stop is $570/575. All aboard Gold Express III.....hey which is Misetich ! White Rose (1/8/06; 17:34:37MT - usagold.com msg#: 140251) Spot price crosses $540. Another mark bites the dust. I hope we start seeing $550 by this time tommorrow. TownCrier (1/8/06; 16:02:44MT - usagold.com msg#: 140250) von Braun: 'Where have all the projects gone!' http://www.usagold.com/gildedopinion/RocketSchool/20060108.html The latest 'Rocket School of Economics' commentary has been posted by Professor von Braun; this time he provides his views on the scramble for gold reserves among mining companies after years of shabby investment to support exploration and development initiatives.Click URL above to access the current page and the 'Rocket School' archives.R. canamami (1/8/06; 15:03:18MT - usagold.com msg#: 140249) Shanghai housing bubble bursts http://www.latimes.com/business/la-fi-chinabubble8jan08,0,7585034.story?coll=la-home-headlines&track=morenews The attached article states that the housing market in Shanghai has popped, and this may threaten the Chinese economy.Of course, when one can no longer count on real estate as a store of value, or as a place to put one's excess savings (either as a lender or an owner), gold is often next on the list as the secure asset of choice. Hence, we may see more Chinese money move into gold. YGM (1/8/06; 14:47:41MT - usagold.com msg#: 140248) Belgian Why is it that South Africa joined the CB gold reserve hints and not Australia or Canada (dollar block) !?------------------------------------------------I wish someone could answer that for me! My letters to Can Minister of Finance and the Opposition Party Finance critic get no replys as do requests for answers as to who gave the Gov't the right to sell off all our Gold reserves in the first place. USAGOLD / Centennial Precious Metals, Inc. (1/8/06; 14:37:22MT - usagold.com msg#: 140247) A risk-free request, helping you enter the gold market with grace and confidence. http://www.usagold.com/Order_Form.html Belgian (1/8/06; 12:32:38MT - usagold.com msg#: 140246) @YGM If I were China-Russia-South America...I would invite as much foreign expert goldminers as possible to dig for the precious on my territory...and pay them with excess dollar-fiat-confetti (reserves) in exchange for the precious "metal" to be physically stored in the National CB vault, waiting for the freegold finale !Hasn't arabian oil been doing exactly the same, for many decades !?It is the non dollar block of the planet that wants to consolidate its vastly growing excess of dollar-paper into a universal tangible...not to be dominated by the dollar regime.Why is it that South Africa joined the CB gold reserve hints and not Australia or Canada (dollar block) !?The goldmining business is also involved in the transition of papergold to physical gold. Much more regulation and control will be the final outcome. Caradoc (1/8/06; 12:16:39MT - usagold.com msg#: 140245) "Chinese currency reaches new high" http://canadaeast.com/apps/pbcs.dll/article?AID=/20060105/TTMONEY09/601050476/-1/MONEY Snip with details of China's new pricing mechanism:The People's Bank of China, the central bank, began a new policy Wednesday of calculating the yuan's value against the dollar using a weighted average of the prices given by major banks. The highest and lowest offers are excluded from the calculation, the central bank said in a statement issued Tuesday.***end of snip"Caradoc YGM (1/8/06; 11:41:53MT - usagold.com msg#: 140244) Sundeck Since the acceptance of China into the WTO and it's Gov't 'White Paper' on new mining laws and reg's there are at last count over 20 major & junior western Gold mining co's currently active in China. FWIW Knallgold (1/8/06; 08:20:42MT - usagold.com msg#: 140243) FreeGold "So, Cavan Man, with those bases nicely covered, I don't know why you're faulting me for doing my part to stimulate a lively conversation"--TCYou were very successful,that was one of the most intense week of (Gold) discussion,I was so distracted to get my thoughts about FreeGold to a finalisation that I lost contact with my daily work sometimes :-( Thanks to you and all that participated.Putting a few PR/monetary/political flaws aside,FreeGold is GREAT,anyone who does not think so is just not getting it (abstract to follow).And no,China (and Russia) do NOT announce intentions to buy Gold.Just read "the art of list",with the 36 Chinese strategems described.This and their Konfuzian history forbids stupidities like Englands Gold sales.This is now the revaluation part!Great week to all!PS:the Kennedy murder is solved,a new documentary coming to cinemas by a german has some fine evidence/witness.It was Fidel Castro. Goldilox (1/8/06; 07:51:52MT - usagold.com msg#: 140242) South America @Belgian,I remember Atgentina making a gold reserves statement early last year, so I heartily concur with your prediction. I think that with NeoCon RADAR already active in SoAmer, they are making sure they "outrun" Iran and Sorth Korea, to use the hunter/bear analogy.None of them wants to be the next Iraq, so staying off the "most wanted" list is a prudent political calculation. Belgian (1/8/06; 04:51:20MT - usagold.com msg#: 140241) Gold EU, Russia, China, South Africa, and many other nations, have been making "political" statements on gold whilst having gold "policies".Conclude, that all the gold action is an "official" one, rather than a private one.First, the general public was pushed away from gold, through the gold-sales hysteria...and now the opposite is encouraged officially.Bringing gold from the back stage to the front, means that the existing monetary regime is being challenged...in a gradual and orderly (disciplined) way as to not cause another gold-bubble in a vacuum ( cfr. 1971 > 1980). This means that the "new-gold" supporters do mean business, today !!! That's why all the other bubbles (housing-stock/bond/dollarmarket) will be deflated progressively.This is the very nature of the "transition" that w've been talking about for so long now (5 yrs).Soon, South America will join the "transition" idea. Sundeck (1/8/06; 03:49:22MT - usagold.com msg#: 140240) China Good one YGM...in China things don't just happen at random..."We have a plan!"...Aussie Sinogold (I think) was the first into the fray and there will be more to follow..I get the feeling that I should be listening to a different selection of news media these days...unfortunately I don't comprehend any Asian languages and am therefore reliant upon "enlightened" English translations...being in the world with China today is a bit like what it must have been in the world in 1880 when the US was the "exploding" industrial nation...Oh well! Back to my Kipling stories! :-)Cheers YGM (1/8/06; 00:45:50MT - usagold.com msg#: 140239) The Steps of China's Gold Coup... http://www.bis.org/review/r041130e.pdf This is part of China's planned Gold Coup...First allow & encourage (as they have done, and Asians need NO encouragement to own Gold and never have) the people to trade paper savings for physical Gold, then follow up with China's Central Bank exchanging some of the Trillions of US Bonds and Fiat for Gold...Hence the Yuan becomes a power and the peoples personal wealth of the Nation is protected from ANY Fiat's devaluations...Next liberalize China's mining laws, privatize mines and encourage westerners with modern expertise and highly trained people to come and explore for & mine Gold in China, thus vastly increasing Gold production. (this has also been put in motion and mines in China are currently being bought by western companies and much new exploration is taking place already)...Follow the first hints in this year old speech...Zhou Xiaochuan: Gold market functions to hedge against risksSpeech by Mr Zhou Xiaochuan, Governor of the People's Bank of China, at the 2004 London Bullion Market Association Annual Precious Metals Conference, Shanghai, 6 September 2004.http://www.bis.org/review/r041130e.pdf<excerpt>How can we transform the gold market into a financial market from its present stage as a commodity market? The current situation presents individual investment in gold as a realistic answer to this question. Our total domestic household savings amount to as high as 12 trillion RMB, readily conditioned for investment in gold or rather turning the asset of the ordinary people from currency into gold. From the macro-economic perspective, it creates an additional channel to convert savings into investment balancing the demand and supply.From the micro-economic perspective, allowing people to hold assets in gold can improve social welfare benefiting both the country and its people. Also, the dual characters of being an ordinary commodity and a currency allow gold to well hedge against risks. <end> ViewYesterday's Discussion.
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