panda
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Looking good... Doesn't mean that a pull back won't happen, but, the tides are changing.
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For anyone who wants to check the price movement of gold over the past 13 years ( my data started in 1985 ) will find that there is an average of four cycles per year where gold moves $20-40 and then reverses. Some movements are much more. To buy and hold as it plunges $20 and funds drop perhaps 30% is not my idea of smart.
There have been many periods of recent history where gold sucked. There will always be paper money for those times. The price of gold is an inverse measurement of the value of that paper. No modern culture could exist using just gold. GET REAL. ( I'm quoting Troy Aikman for your 49er or Packer fans )
I appreciate your comments on gold mining stocks re: overall market decline. Here's an interesting trading/forecasting system which was posted on the forum last week ( Only Toronto Precious Metals Index shown on these charts ) which I am watching closely for a sell signal. They are forecasting a Mining stock top in the last week of July.
http://home.istar.ca/~inpath/gold.gif
http://home.istar.ca/~inpath/gold-cl.gif
Mike: Do you have any astrological forecasts around the end of July?
The system has an enviable record of forecasting of short-term trends - recommending short or long positions, and prediction of percent gain from last change in recommendation. The CURRENT forecasting percentage of wins ( profitable calls ) is 97%.
The developer of the site is a University Prof. and also manager of a small hedge fund, in which he uses the predictions to manage his client's accounts.
Just how long term are the commercial gold longs anyway? Does anyone know?
My intuitive feeling is that gold will continue to rally for some time, but I am a gold bug, so why should I trust my biased judgement? Just to play it safe, I am keeping most of my liquid assets ( 2/3 ) in cash.
By the way, I think we can expect a major announcement from Kenneth Starr fairly soon. He looks like the Chesire Cat. I could be wrong, but there are many xxxgate irons in the fire -- only one needs to be hot.
1 ) The BIS is rumored to have bought the Belgian gold, near the time gold bottomed at about $280/oz.
2 ) Gold Franks -- as you noted -- are referenced in shipment transactions -- the BIS currency. So we may be looking at another example of the BIS currency as the currency of last resort. Re: Gold/gold frank shipments if the gold/fiat currency paper system folds.
3 ) The BIS chief ( director ) is a Belgian -- the one that is most likely to be Chairman of the new EURO central bank?
All I can say is that something is up -- and the BIS is right in the middle of it. Discussion of gold as the currency of last resort is not limited to SEAsia, or to the Moslem/Middle East nations. Making the BIS director/chairman the Chairman of the new EURO central bank would go a long way to legitimize the EURO -- at least on day one.
http://www.calottery.com/announce_frame.html
Anyone care for a ticket?? Email the money ;- ) and I will buy you one.
I don't usually play until we get some HUGE numbers going. I figure I'll throw five bucks into this Giant. It's good for the schools, right? Anyone have any lucky numbers for me?? thx in advance.
away...to figure out how to spend my winnings
luckytoday ( ? ) ...yeahright.
go plat.
If the above is correct, what could be more bullish for gold than that news?
The authorized share capital of the BIS amounts, at present, to 1,500 million gold francs, equivalent to 435,483,870.96 grams of fine gold. This capital is divided into 600,000 shares of equal nominal gold value, of which 517,125 shares, paid up to the extent of one quarter, have been issued. About 86 percent of these shares are owned by central banks and the remaining 14 percent by private individuals. Voting rights are completely independent of the ownership of shares and may only be exercised by the central bank of each country or its nominee in proportion to the number of shares issued in that country.
As of March 31, 1997, the balance-sheet total, with gold valued at 0.29 grams fine gold = US$l.94 and all currencies converted into dollars at market rates, stood at US$135.6 billion. Applying the same valuation methods, the BIS' own funds amounted to US$5.5 billion.
SDRer: If I understant correctly, those international lawyers are very smart to get paid in an incorruptible currency. Fiat currencies inflate too much -- so why not write every agreement in reference to being paid in gold? Then you do not need to rewrite international agreements every few years.
I wonder -- what would happen if a the average US citizen demanded payment in kind? Just what currency does BC use to pay his army of lawyers? Last I heard the American taxpayer was paying for about 1/2 of them. I would guess that Robert Bennett will stick around only as long as he is getting appropriate weekly or monthly payments from BC -- at $500/hour or so. Just who is spending more money on lawayers? BC of Kenneth Starr?
Hey Crystall Ball ( s ) .....you have B@ll ( s ) of gold dude......make it so. Sell that XAU......go man go!! you have wood in the pile.... ( ding-ding ) .
away...to work..... ( oh cheer ) .
$
away...to enjoy this....this Kitco
How long could a game like this be perpetuated, and who checks up on these guys to make sure that the rules are followed?
From the BIS website:
"The authorised share capital of the Bank is 1,500 million gold francs, divided into 600,000 shares of equal nominal value ( 2,500 gold francs per share ) . At the close of the financial year 517,125 shares were in issue and, in accordance with Article 7 of the Statutes of the BIS, they are paid up to the extent of 25% of their nominal value ( 625 gold francs per share ) . The amount of the paid-up capital appearing in the Balance Sheet of the BIS at 31st March 1997 thus stands at 323.2 million gold francs.
The gold franc of the BIS has a gold weight of just over 0.29 of a gramme of fine gold, which is identical with the gold parity of the Swiss franc from the foundation of the BIS in 1930 until September 1936 when, after a number of leading countries had left the gold standard, the gold parity of the Swiss franc was suspended. The BIS employs the gold franc solely as a unit of account for balance-sheet purposes, assets and liabilities in US dollars being converted into gold francs at the fixed rate of US$ 208 per ounce of fine gold ( equivalent to 1 gold franc = US$ 1.94 ) and all other items in currencies being converted into gold francs on the basis of market rates against the US dollar.
:
Art. 7. ( 1 ) Twenty-five per cent. only of the value of each share shall be paid up at the time of subscription. The balance may be called up at a later date or dates at the discretion of the Board. Three month's notice shall be given of any such calls. [...] "
away...to work
?
It is interesting to note ( and I'm sure NO coincidence ) that the modern International Gold Franc of 0.29XXX grams of fine gold is EXACTLY the same measure as the Franc ( and Lira ) in pre-WWI gold coins....
Belgium, Swiss, French 20 Franc and Italian 20 Lira gold coins ALL contain 5.8064 grams of fine gold.
It almost as if some parts of the world never new the US$ existed, eh?
Common sense, is most uncommon. WE think to learn, but most never learn to think. GO GOLD!
My question relates to something ANOTHER said once about the BIS ( and the Rothschilds ) . He said that the 'name of the game' was to play your cards on the international scene until you own all the gold. Then the ( gold ) game is over. The new game is to loan out the gold to indebted central banks of the world -- I guess -- to enhance world business. Now however, since you can call the gold back at any time, you have control over the world's purse strings. Imagine the power of the group that can do this! This rings true to me -- it makes alot of sense. Fortunately, it looks on the surface at least, that the BIS owns/controls only some of the world's gold. Also, as numerous Kitcoites as posted, the SEAsia, India, Arab situations prevent any one group from owning all the gold in the near future. That must be a real thorn in the side of that European ( ? ) group that wishes to control the world's gold reserves. Recent news makes you think that this group ( whatever it is ) has alot to say in the launching of the EURO. However, it remains to be seen if this group really has enough power to fully resurrect a BIS-like Gold Frank equivalent in the EURO. I doubt it.
Now, here is the corollary to the 'gold game'. If most of the BIS gold is on loan -- which CB's actually owe their gold to the BIS -- and which don't? I think it would be worth our while to know which countries are up to their eyeballs in committments to the BIS. I would guess Argentina, Brazil, South Korea would be on the top of the list. Mexico??
I doubt Germany or France are indebted to the BIS.
Comments?
I think part of the problem is that a gold bug, almost by definition, sees even the smallest amount of market irrational/unrealistic, etc. behavior, when in reality the matrix/paradigm ( or similar term ) can handle alot more mania before it collapses. But if the destabilizing process progresses, the ultimate outcome is obvious. We can draw one analogy from chaos theory ( attractors ) . And that is:
Market stability comes from:
1 ) -- stock equity values comparable to true business value ( ie, P/E ratio, or book value )
2 ) -- low equity margin levels to protect the investor.
3 ) -- low investor/business debt levels ( loans, etc ) .
4 ) -- Rising or at least strong corporate earnings.
5 ) -- Falling private/corporate Taxation and regulation
Our equity markets are stable right now, but that little dynamical gravity well ( margin of safety ) is very narrow and getting narrower. We may not have our market correction this year, but I do not see anything on the horizon that will prevent the steady erosion of the island of market stability.
Either way, we are now no longer the only investor types that are getting nervous, as others are quietly heading for the exits, and buying precious metals. We will do very well in precious metals if the equity bull market turns into a grinding bear, but every day that the market mania continues increases the probability of a catastrophic collapse, when the correction finally comes.
When you think about it, what is the difference between owing gold for twenty years or so -- as long as you have had shares in the BIS, or having it loaned to you? As long as the gold is not yours, but someone elses, the consequence is the same.
I think the 8000 tonnes of gold loaned by the CB's is a separate matter, unless it prevents certain CB's from sending gold to the BIS when their chips are called.
What happened to all that Comex Gold ? Someone must have bought it!
Wonder if they can get more? GEE--- I hope so !!!! I don't have mine yet.
BillD - when did you order the coins? How quick was it? Many customers of the museum have been asking how long it will be before they can view the magnificent and 'rare' coin.
Auric - I neglected to notice that Friday was closed for many markets. Would you like a continuation?.......ya' know......till Monday or something ;-^ ) ....... ( doh! ) .
Bart - did ya send it yet? I know......patience........go plat.
away
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value. Forgive me! I received my mounties and am dumbstruck by their
beauty.
If you could just hold this 1795 silver dollar in you hand, you would be hooked forever.
Find out more about Kitco at info@kitco.com, or call 1-800-363-7053.
Copyright © 1996 Kitco Minerals & Metals Inc.
against idiots,just because you did not have a car accident last year,does it make any sence to cancel your policy this year.....view it as insurance it will not let you down,never has never will