Archives of “Gold / Silver” category

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International Monetary Fund (IMF) Needs Money

  
Analysis, Economy, Education, Gold / Silver
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 International Monetary Fund (IMF) issued a statement that it would begin selling large holdings of its gold reserves

IMF: Says will shortly begin ‘on market sales’ for remaining 191 tons of gold; To start selling up to $7B of gold to market

– Gold will be sold in a “phased manner” to avoid disruptions to gold market

– On market sales does not preclude sales of gold to interested central banks.
– Off-market sales would reduce amount of gold to be sold on the market.

So why is the IMF selling its gold? Is it that the monetary fund is looking ahead to more countries needing cash bailouts? Or does the IMF view gold as a worthless commodity in the future?

The announcement did impact the gold price as reflected on this gold chart which shows the reaction.

IMF-GOLD SELLING

Why Gold Is Such A Dog

  
Analysis, Education, Gold / Silver
Summary
  • Gold prices have been in a bear market since the August 2011 peak at $1920
  • Prices are making new 52-week lows
  • Gold has primarily been a monetary asset throughout history and moves closely with the global monetary base (GMB), the sum of the U.S. monetary base and total international reserves
  • Gold has lost some of its luster as a store of value as goods and services inflation failed to materialize after the printing presses flooded the global economy with trillions of reserve currencies during Great Financial Crisis
  • Surprisingly,  demand remained steady or even increased as the major central banks emitted trillions in new currency
  • The broken credit mechanism resulted in an overall monetary contraction and  shortage of dollars
  • The gold bugs had their day as gold moved 650 percent from August 1999 to August 2011 while the GMB moved 455 percent during the same period, the result, mainly of a massive build in international reserves
  • The global monetary base will continue to contract over the next several months as the Fed shrinks its balance sheets and emerging markets continue to lose international reserves
  • Gold prices will thus linger and drift down toward and below $1,000 unless a major global shock results in a flight to quality
  • Just as the simultaneous unfolding of umbrellas do not cause but, instead, reflect a reaction to similar external forces – rain;  so to do comovements in the dollar and gold. In other words, moves in the dollar do not cause moves in gold but reflect a reaction to similar external stimuli
  • The next round of QE, which will probably be the result of a G7 sovereign debt crisis, should cause the massive spike in gold prices that the bugs were looking for in round one
  • We could be wrong

Gold -Crude :Update

  
Analysis, Crude, Education, Gold / Silver
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GOLD-BARS

After Hitting all time High of $ 1227 .50 it crashed to 1075 level and rallied upto 1163.There after nonstop slide upto 1044 was there.

-Just see Daily chart and Look at Head & Shoulder Formation.

-Already broken Neckline and retraced upto Neckline.

Revival should be considered as Best opportunity to exit only.

-I will write about Head & Shoulder target in next 2-3 days.

Now ,What to expect from $1076 level ?

-Thirsty Traders ,Just watch $ 1084-1089 level very closely.Once crosses $1089 and closes above this level will take to $1104-1109 level.

-Nearest support $ 1063,break will create fresh selling.

To know MCX levels of GOLD ,Silver /Base Metals join us.

oil-on-scale

MCX Traders ,Can watch these levels for Crude Oil

3512-3532.

Once crosses then will zoom to kiss 3592-3612 level.

For timebeing worst is over for Crude.Will give more Details to our Subscribers.

Updated at 7:22/11th Feb/Baroda

George Soros loads up on gold

  
Analysis, Education, Gold / Silver
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soros-gold

So why is Soros buying gold?  Though he believes gold is the ultimate bubble, he had said before that he likes to ride bubbles.  But unlike most investors, Soros usually knows when to get out.

From the WSJ:

LONDON—Investor George Soros doubled his bet on gold at the end of 2009 amid rising prices, a filing with the U.S. Securities and Exchange Commission showed.

The filing, made late Tuesday for the financial period ended Dec. 31, comes after Mr. Soros made comments during the World Economic Forum in Davos, Switzerland, in late January calling gold an asset bubble. He told media at the time that the low-interest-rate environment creates a condition for bubbles to develop and that gold is the ultimate bubble…..

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