Gold up, AAPL up! Woot!
doesn't this qualify as taunting or a victory lap?
Topic: Gold collapsing. Bitcoin UP. - page 1471. (Read 2032274 times)
doesn't this qualify as taunting or a victory lap?
Gold up, AAPL up! Woot!
And yes: the whole of Europe is shooting itself in the foot by doing this. Germany should just pay Iranian oil with the gold the US still holds hostage supposedly. That way, the US owes Iran gold
best idea ever.
Better think that one through a bit more. The US holds a vast quantity of so-called 'German' gold. Gotta protect if from those bad bad Russians, ya know.
And yes: the whole of Europe is shooting itself in the foot by doing this. Germany should just pay Iranian oil with the gold the US still holds hostage supposedly. That way, the US owes Iran gold
best idea ever.
Looks like USD will get slap in the face soon. China and Japan to start direct yen-yuan trade in June: http://www.bbc.co.uk/news/business-18245909
Yes, but as a counter to that you have the Greek embargo of Iranian oil beginning soon unless a deal can be reached at the bargaining table. Greece is shooting itself in the foot. No other countries want to stop buying Iranian oil, including China, because they know that Iranian oil is among the most easily accessible. The USD might get another lift from this in the short-term.
It's not just greece. The whole of Europe afaik, probably under pressure of nato, imf or whoever pulls the strings, stops buying iranian oil on June 1st. This was decided back in March I think.
And yes: the whole of Europe is shooting itself in the foot by doing this. Germany should just pay Iranian oil with the gold the US still holds hostage supposedly. That way, the US owes Iran gold
Europe’s debtors must pawn their gold for Eurobond Redemption
Each of the struggling nations must pledge 20% of their debt as collateral. With the fund "officially" at €2.326 trillion as of November 2011, 20% is €465.2 billion. Let's assume the best-case scenario wherein 100% of each nations' gold is used, diluting the price level of the metal.
Officially reported gold holdings show the EU totaling 11,494.1 tonnes. That's about 370 million troy ounces (3.7x10^8 * 32150).
Now let's see how Europe's gold would be valued if all of it were pledged to the 20% requirement:
€465.2 billion divided by 370 million troy ounces comes to ~€1,257/toz or ~$1,572/toz at $1.25 per Euro. Very close to today's prices - isn't that interesting...
Remember, the above was assuming all of Europe's official gold were stripped to back estimates from six months ago, and it's obvious that no Euro country is going to give up its gold easily.
How much greater is the amount being called for in the plan now, with debt levels expanding geometrically: 3 trillion, 5, more? How much gold will be pledged as collateral: 50% doesn't seem realistic, maybe 10-20%?
It doesn't take much to connect the dots and see that the EU plan alone could easily more than double the gold price, and we haven't even gotten to private debt and numerous distressed nations, especially Japan or the US. Anyone expecting physical gold to falter from here is operating on assumptions half a year out of date, on top of the consistently gross underestimations that official sources provide; gold at $1,570/toz was a reasonable price when $1,900 was breached.
It's also important to keep in mind that fiat inflation is happening right now.
Each of the struggling nations must pledge 20% of their debt as collateral. With the fund "officially" at €2.326 trillion as of November 2011, 20% is €465.2 billion. Let's assume the best-case scenario wherein 100% of each nations' gold is used, diluting the price level of the metal.
Officially reported gold holdings show the EU totaling 11,494.1 tonnes. That's about 370 million troy ounces (3.7x10^8 * 32150).
Now let's see how Europe's gold would be valued if all of it were pledged to the 20% requirement:
€465.2 billion divided by 370 million troy ounces comes to ~€1,257/toz or ~$1,572/toz at $1.25 per Euro. Very close to today's prices - isn't that interesting...
Remember, the above was assuming all of Europe's official gold were stripped to back estimates from six months ago, and it's obvious that no Euro country is going to give up its gold easily.
How much greater is the amount being called for in the plan now, with debt levels expanding geometrically: 3 trillion, 5, more? How much gold will be pledged as collateral: 50% doesn't seem realistic, maybe 10-20%?
It doesn't take much to connect the dots and see that the EU plan alone could easily more than double the gold price, and we haven't even gotten to private debt and numerous distressed nations, especially Japan or the US. Anyone expecting physical gold to falter from here is operating on assumptions half a year out of date, on top of the consistently gross underestimations that official sources provide; gold at $1,570/toz was a reasonable price when $1,900 was breached.
It's also important to keep in mind that fiat inflation is happening right now.
Past the short-run, the collapse of the USD is inevitable.
Looks like USD will get slap in the face soon. China and Japan to start direct yen-yuan trade in June: http://www.bbc.co.uk/news/business-18245909
Yes, but as a counter to that you have the Greek embargo of Iranian oil beginning soon unless a deal can be reached at the bargaining table. Greece is shooting itself in the foot. No other countries want to stop buying Iranian oil, including China, because they know that Iranian oil is among the most easily accessible. The USD might get another lift from this in the short-term.
But the dollar will gradually be rejected in international markets. Gold is a very good contender for international trade agreements. Of-course the issue is having gold that actually exists. So much gold that people assume exists, doesn't. No one knows the full scale of the unbacked gold securities. As more and more institutions and investors demand physical delivery of gold it will be interesting to observe. I wish this would take place faster as it's quite boring otherwise.
Looks like USD will get slap in the face soon. China and Japan to start direct yen-yuan trade in June: http://www.bbc.co.uk/news/business-18245909
It's not clear to me that this would necessarily have the magnitude of desired (downward) pressure no the USDX that we (in the US) need. Or that it would have the desired effect quickly enough.
My contention is still that we have current strong hand in fighting the currency wars and will win the race to the bottom on the schedule we chose. Losing USD intermediaries in global trade is a hit, but that's a long process and we've got other arrows in our quiver which can be sharpened up.
Looks like USD will get slap in the face soon. China and Japan to start direct yen-yuan trade in June: http://www.bbc.co.uk/news/business-18245909
Everything be up today!!
the gold price seems high unstable. Now it's 1560. inches from the critical bottom around 1500.
shhhh!!! don't let people know how I'm paying for my sports car and mortgage payments.
the gold price seems high unstable. Now it's 1560. inches from the critical bottom around 1500.
shhhhh. don't tell anyone...
Everything be up today!!
the gold price seems high unstable. Now it's 1560. inches from the critical bottom around 1500.
Woot!! Good day to be invested in both
Everything be up today!!
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