Gold At $1194.80

I am packing up boxes and moving furniture into storage (moving to Moscow). I will be busy until Friday.

By the way, gold is at $1194.80.



And the dollar is falling.



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UPDATE: November 29, 2009

I am still busy. I will have free time to write something tomorrow night.

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18 Responses to Gold At $1194.80

  1. Trader says:

    By the way, if dollar will soon be worthless, why banks are still hoarding cash?

    When commercial real estate massive losses appear on their book, wouldn't it cause another round of cash hoarding panic?

    At that moment, which force will be stronger? The deflationary one (dollar go up) or the government monetary inflationary action one (dollar go down)?

  2. Numonic says:

    Trader the inflation will come from abroad as it is happening now. Many emerging countries(whose population is far greater than the US') will be spending like mad and shunning the US and other failed nations. No exports to the US. The world shuns the US. This is how hyperinflation will happen.

  3. Willy2 says:

    The USD WILL - IMO - rally in the coming days, weeks, months !

  4. SatyaPranava says:

    can someone please explain to me, how it just so happens, that dubai (very much an american ally) crashes the day after the dollar starts to tank again, breaking key support, and gold is about to explode thru 1200/oz? i realize it's a holiday market, but why would asia sell PMs in this case when western banks, namely british, bear the brunt of the counterparty risk. i'm quite confused....buy dollars, sell gold bc a panic is setting in? isn't that the reason to buy PMs?

    gold just hit $1136 a bit ago...
    why will the usd rally?

  5. Numonic says:

    Dubai or Don't buy.

  6. Douglas says:

    Gold is back up to $1,177 and has recovered some ground from its earlier sharp drop....

  7. Sebastian says:

    Indeed, gold went back up quickly, but what caused the big drop from close to 1200 to under 1150?

  8. gordon says:

    Could these events in Dubai (or not Dubai - good one Numonic) have anything to do with your earlier link to Dubai reclaiming its gold? Maybe someone threatened to cut off their credit?

  9. intropy says:

    Satya & Sebastian,

    Dubai's delay and the threat of defaults causes investors to sell their higher-risk assets funded in dollars. This has the effect of strengthening the dollar and therefore reducing the price of gold.

  10. Trader says:

    @Gordon,

    hhmm.. that makes sense. If so, very soon we may hear news that say hongkong, china, germany (countries who demand physical gold delivery) corporates being cut off from their dollar credit!

    Whether dollar are going to collapse or not, once this news come out, dollar might go up significantly, at least for a while.

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  12. sharonsj says:

    I haven't seen any more reports, but I read that China is calling in its gold paper contracts for actual bars. But they discovered some of the bars are counterfeit: gold-plated tungsten. So they are demanding that every bar be tested before shipping. Apparently a lot of these faux bars come from the U.S.

  13. sharonsj says:

    I read that China is exchanging all its paper contracts for real gold bars. However, some of the bars turned out to be counterfeit: gold-plated tungsten. Now they are demanding that all bars be tested before shipping.

  14. Sebastian says:

    I guess they have to count all tungsten in the world as gold in order to deliver all GLD they have sold. GLD is tungsten. Gold is money.

    And gold is yet again really close to $1200 an ounce.

  15. Sebastian says:

    On Global Research, Matthias Chang writes about "The Second Wave of The Financial Tsunami" which is pretty much the same as Eric's "Real Financial Crisis". The article: http://globalresearch.ca/index.php?context=va&aid;=16218

  16. Steven says:

    I think that the government's done to attempt to support the economy is making things much worse actually. They have wasted trillions of dollars bailing out creditors and shareholders of failed institutions with broken business models. And this is going to lead to massive problems down the road with regard to our currency and interest rates, in my opinion. And I think that the gold price breaking out to a new high is a strong indication of the reduction in faith and confidence that people have in governments and their fiat currencies. So for most people one of the few ways to protect themselves from these risks is to invest in gold related assets. One gold mining company that I particularly like is Premier Gold because it offers a lot of leverage to the gold price. There is a good article here called Premier Gold Aims for Multi-Million Ounce Deposit at Hardrock which discusses one of the gold mining company's recent high grade gold discoveries at its Hardrock project in Canada. I think this company will continue to benefit from the Federal Reserve's inflationary programs and money printing because of a higher gold price.

  17. Numonic says:

    Steven I disagree. I believe the economy is getting worse despite what the govt. is doing. Had it not been for the govt.'s actions things would have been allot worse by now. Those bailout dollars were not "wasted", they are why the system is still holding together. But despite it US consumerism is dead and the emerging markets know this. Would you continue feeding a dead corpse?

  18. A says:

    Kinda oblique, and probably discussed before, I just having trouble swallowing it:

    COMEX allows ETFs to take the place of gold in physicals for futures trades . .

    http://www.cftc.gov/files/submissions/rules/selfcertifications/2005/rul021805nymex001.pdf

    so . . this seems nuts, if you're shorting gold you can just sell some ETFs?

    So COMEX is happy to take ETFs (which is another way of saying they are happy to take cash, I suppose), but isn't COMEX gold allocated, and buyers would baulk at the offer of an ETF?

    so ETFs go in, but dont come out, gold goes out, but doesn't come in . .

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