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Re: GLD A Way to Buy Gold in The Stock Market
Back from Egypt about 3 hours ago.
Here's the skinny, and if you're long gold, you're on the right side:
On the way home, I was given the Int'l Herald Tribune for Tues and Weds, April 4 & 5. These are the relevant headlines from that publication:
How Asians keep a lid on U.S. rates
Dollar under presure as Emirates lean to euro
Gold futures fall as metal's price puts off jewelers
Bird flu threatens world insurers' bonds
NOTHING HAS CHANGED; NOT ONE WHIT OF THE ORIGINAL LOGIC.
What's really happening:
This is a major paradigm shift. The dollar was going to go to hell in a handbasket, and it is going to hell in a handbasket, and it will get a lot worse as soon as drunkeon whore, the US dollar, gets slammed up against the interest rate wall. The rest of the world is now about to screw it mercilessly.
If you're long the dollar and not hedged internationally, I think you're incapable of understanding international politics and economics, and you will get, irrespective of what you deserve, exactly what I have been saying you're about to get.
Let's just review the deal clencher, the thin membrane of dollar purity which has been banged on as if it were a kettle drum, the invincible dollar, the almighty dollar. BS. Bigtime BS, but a helluva delusion, and I know that Fla1 still wishes to be deluded, as well as many who won't get their backsides outta Dodge to look around and sense what's now happening...paradigm shift.
Firstly, the non bird flu scenario that drives me and will drive me now that I'm back to flee to gold (in the next retrenchment if not in part this week) even further than I have done: Russia, the UAE, Iran, Venezuela (if it could and as it can), and announced yesterday, China, will now spread their invetment capital, ceteris paribus (non pandemic time period) into Euros and heaven knows what else. Meanwhile, Japan moves away from zero interest, which means it too becomes a competitor for international investor's capital.
The paradigm shift is best phrased as the straw that will break the camel's back. As the lenders who have supported the dollar will reduce their purchases of Treasuries (a stunning 44% of the last Treasury sale was placed outside the USA, against an average of 35%). This will cause the price of US borrowing to rise. This will be seen as necessary and unsustainable. The drunkard needs her drink. The phrase when I was younger was "coke whore".
Fear will be factored into the price of interest, and to the gold holder's advantage, will be factored into the price of gold, as those lenders look to insure their positions with at least some gold to diversify and hedge the US dollar position risk.
The gold market is frankly tiny. The sabre rattling words by the cabal of national banks who say, "we're gonna dump gold...lots of it", and the additional boogeymen of the gold producers/jewelry consumers saying, "oh, oh, look! our production costs are dropping, so we can open up a flood of new mines" and "oh, oh, look! gold prices are rising so high we jewelers are now wary against buying more gold, so we will wait and the prices will collapse."
These folks, above described, are idiots, each and all of them. End of story.
Fear is a powerful motivator. The idiots have shot their cannons, all of them. They have only one more action to take, and that will lead to their coup d' grace; they will stupidly sell the gold they've said they would. It will be absorbed without even a burp into other national banks (hi to those listed above). And the selling cabal will be seen to be a paper tiger.
The result will be panic buying to the upside as soon as they're shown to be paper tigers. They won't be able to stop the remonitization of gold.
Trust me folks, I don't like to see this happen one bit. I like holding paper and bank accounts and assets not buffetted by inflation and deflationary waves. I hate to be out of control. Others fail to see the future in the way I do...this ain't ego. I'm truly scared when I don't know what's about to happen. It's very costly to me to know; but it's more costly for me not to know.
Gold this early morning on April 6, 2006 is at 593, spot. In Sept I said it would be at 600 by Dec 31. It's late. So what!
On the flip side, I'm gonna restate what I've said elsewhere. The consequence of this shift of paradigms is that all the store of value in the US and elsewhere in the world will be under attack by gold re-valuation. All the life efforts, the savings of the majority of humans, will continue to erode and IMO will be destroyed probably down to 15% of what it was worth 6 months ago. All the sweat and tears and hopes are now being destroyed for all those who do not believe in Mamman, at least for this "secular bull market" move.
(Bink, it's outrageous for anyone today to stand up and say, "oh gee, we're now entering a secular bull gold market." That's very old news. It's been a secular bull market for 3 years minimum. The bear was exhausted, effete, and has died years ago.)
Secondly, bird flu. here's the refrain, from the IHT, "If you're looking for a factor that could really, I mean really, blow out spreads, then this is it," said Robert Haines, an analys at CreditSights. "It's really scary, and people aren't taking any notice." "The life insurance sector would face multiple ratings downgrades and failures," Haines said last week, without naming companies that may be affected or specifying how much spreads may widen. "It may not be likely to happen but the odds certainly aren't zero. The loss would be enormous."
As I've said, bird flu is nature's event. We humans of the first world can do nothing but monitor the happenings, and all along, we can forecast the consequences along a wide chart-scale of risk.
Not one of us thinks it, pandemic, won't happen, the senior scientist from St Jude's now excepted. The consequence will drive gold sky high.
I'm exhausted; it's 1 am. I've been up 21 hours of the last 25. More at another time.
Just buy the gold you want and sit with it and then think hard about what I've just posted. The paradigm shift is here; it's now news. It's time to quit saying that the dollar is the safe currency. That's hogwash. The only things left are fuel and precious metals. Fuel will spike and collapse. PM's will rise and stay there as the only option to store value.
Back from Egypt about 3 hours ago.
Here's the skinny, and if you're long gold, you're on the right side:
On the way home, I was given the Int'l Herald Tribune for Tues and Weds, April 4 & 5. These are the relevant headlines from that publication:
How Asians keep a lid on U.S. rates
Dollar under presure as Emirates lean to euro
Gold futures fall as metal's price puts off jewelers
Bird flu threatens world insurers' bonds
NOTHING HAS CHANGED; NOT ONE WHIT OF THE ORIGINAL LOGIC.
What's really happening:
This is a major paradigm shift. The dollar was going to go to hell in a handbasket, and it is going to hell in a handbasket, and it will get a lot worse as soon as drunkeon whore, the US dollar, gets slammed up against the interest rate wall. The rest of the world is now about to screw it mercilessly.
If you're long the dollar and not hedged internationally, I think you're incapable of understanding international politics and economics, and you will get, irrespective of what you deserve, exactly what I have been saying you're about to get.
Let's just review the deal clencher, the thin membrane of dollar purity which has been banged on as if it were a kettle drum, the invincible dollar, the almighty dollar. BS. Bigtime BS, but a helluva delusion, and I know that Fla1 still wishes to be deluded, as well as many who won't get their backsides outta Dodge to look around and sense what's now happening...paradigm shift.
Firstly, the non bird flu scenario that drives me and will drive me now that I'm back to flee to gold (in the next retrenchment if not in part this week) even further than I have done: Russia, the UAE, Iran, Venezuela (if it could and as it can), and announced yesterday, China, will now spread their invetment capital, ceteris paribus (non pandemic time period) into Euros and heaven knows what else. Meanwhile, Japan moves away from zero interest, which means it too becomes a competitor for international investor's capital.
The paradigm shift is best phrased as the straw that will break the camel's back. As the lenders who have supported the dollar will reduce their purchases of Treasuries (a stunning 44% of the last Treasury sale was placed outside the USA, against an average of 35%). This will cause the price of US borrowing to rise. This will be seen as necessary and unsustainable. The drunkard needs her drink. The phrase when I was younger was "coke whore".
Fear will be factored into the price of interest, and to the gold holder's advantage, will be factored into the price of gold, as those lenders look to insure their positions with at least some gold to diversify and hedge the US dollar position risk.
The gold market is frankly tiny. The sabre rattling words by the cabal of national banks who say, "we're gonna dump gold...lots of it", and the additional boogeymen of the gold producers/jewelry consumers saying, "oh, oh, look! our production costs are dropping, so we can open up a flood of new mines" and "oh, oh, look! gold prices are rising so high we jewelers are now wary against buying more gold, so we will wait and the prices will collapse."
These folks, above described, are idiots, each and all of them. End of story.
Fear is a powerful motivator. The idiots have shot their cannons, all of them. They have only one more action to take, and that will lead to their coup d' grace; they will stupidly sell the gold they've said they would. It will be absorbed without even a burp into other national banks (hi to those listed above). And the selling cabal will be seen to be a paper tiger.
The result will be panic buying to the upside as soon as they're shown to be paper tigers. They won't be able to stop the remonitization of gold.
Trust me folks, I don't like to see this happen one bit. I like holding paper and bank accounts and assets not buffetted by inflation and deflationary waves. I hate to be out of control. Others fail to see the future in the way I do...this ain't ego. I'm truly scared when I don't know what's about to happen. It's very costly to me to know; but it's more costly for me not to know.
Gold this early morning on April 6, 2006 is at 593, spot. In Sept I said it would be at 600 by Dec 31. It's late. So what!
On the flip side, I'm gonna restate what I've said elsewhere. The consequence of this shift of paradigms is that all the store of value in the US and elsewhere in the world will be under attack by gold re-valuation. All the life efforts, the savings of the majority of humans, will continue to erode and IMO will be destroyed probably down to 15% of what it was worth 6 months ago. All the sweat and tears and hopes are now being destroyed for all those who do not believe in Mamman, at least for this "secular bull market" move.
(Bink, it's outrageous for anyone today to stand up and say, "oh gee, we're now entering a secular bull gold market." That's very old news. It's been a secular bull market for 3 years minimum. The bear was exhausted, effete, and has died years ago.)
Secondly, bird flu. here's the refrain, from the IHT, "If you're looking for a factor that could really, I mean really, blow out spreads, then this is it," said Robert Haines, an analys at CreditSights. "It's really scary, and people aren't taking any notice." "The life insurance sector would face multiple ratings downgrades and failures," Haines said last week, without naming companies that may be affected or specifying how much spreads may widen. "It may not be likely to happen but the odds certainly aren't zero. The loss would be enormous."
As I've said, bird flu is nature's event. We humans of the first world can do nothing but monitor the happenings, and all along, we can forecast the consequences along a wide chart-scale of risk.
Not one of us thinks it, pandemic, won't happen, the senior scientist from St Jude's now excepted. The consequence will drive gold sky high.
I'm exhausted; it's 1 am. I've been up 21 hours of the last 25. More at another time.
Just buy the gold you want and sit with it and then think hard about what I've just posted. The paradigm shift is here; it's now news. It's time to quit saying that the dollar is the safe currency. That's hogwash. The only things left are fuel and precious metals. Fuel will spike and collapse. PM's will rise and stay there as the only option to store value.
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