Gold

[TWI]

This is the first serious paper I have seen on the alleged manipulation of the Gold market by the central banks. It seems what used to be written off as the loon conspiracy theories of GATA have started to gain traction. It is quite long but worth the read IMO.

"Not Free, Not Fair: The Long-Term Manipulation of the Gold Price"
By John Embry
http://www.sprottassetmanagement.com/pdf/notfreenotfair_letter.pdf

 

[peto]

Interesting paper, thanks twalker. Was it widely published?
Gold seems to be staging a bit of a recovery this month, I wondered if there's a connection.

 

[TWI]

I do not know how widely published the paper has been. Somebody sent it to me yesterday. There have been discussions about this for the past few years by GATA and information is often published on sites such as
gold-eagle.com.

 

[bracke]

twalker

I have tried the link in your post but just get a blank page ?

Regards

bracke

 

[peto]

long pdf. doc. Wait for a while bracke

 

[bracke]

long pdf. doc. Wait for a while bracke

Thanks peto. It took 2.75 minutes, I am on modem dial up

Regards

bracke

 

[BBB]

Good stuff.

Im looking forward to when full size Gold contracts start trading on eCBOT in October. Im wondering how long it will take for volumes to be high enough for day trading.

 

[bracke]

twalker

Thanks for a long but very interesting article.

It begs a number of questions but the two that come to mind are:

1 Governments appear to treat gold as a currency IE they manipulate it to suit their own ends. That being the case the price of gold is not in a free market and the potential for an increase in its price is limited.

2 If the price of gold does break out of its artificial range it means that governments ( mostly the US ) has lost control and there is a strong danger of an economic crisis.

1 appears to be better than 2 but it is a poor situation to be in.

Regards

bracke

 

[bgold]

This is the first serious paper I have seen on the alleged manipulation of the Gold market by the central banks. It seems what used to be written off as the loon conspiracy theories of GATA have started to gain traction. It is quite long but worth the read IMO.

"Not Free, Not Fair: The Long-Term Manipulation of the Gold Price"
By John Embry
http://www.sprottassetmanagement.com/pdf/notfreenotfair_letter.pdf

Thank you. Much better substantiated paper than what i have read thusfar. Interestingly, for as long as I remember (3+ years) it has been strongly denied by friends/former colleagues at one of the big London gold market maker firms (at the center of some of these stories).

I am keen to hear their response. Will keep you posted.

 

[peterpr]

I got it from the Safehaven site last night. Grabbed my attention because, more by luck than good judgement, I put some cash into gold bullion about a month ago.

There's so much in the paper that rings true.

In my opinion it is not a question of conspiricy theories - just common sense,

As the introduction says: "We are not alleging a vast conspiricy orchestrated years ago and implemented flawlessly ever since. Indeed, as Barry Riley of the Financial Times suggested in 2000, "The gold manipulation might well have startedout as minor smoothing operation that got out of control"" etc.

You only have to consider that, at its present value, all the gold ever mined is dwarfed by the notional value of fiat currency presently in circulation. That alone provides governments and central banks with a pretty powerful interest in a depressed gold price. They're going to do what they can to promote that interest. This paper makes a pretty persuasive case for them doing just that - and that the whole charade will end in tears sooner or later.

 

[bracke]

peterpr

May I ask in what way you put money into gold.

Regards

bracke

 

[peterpr]

peterpr

May I ask in what way you put money into gold.

Regards

bracke

Hello Bracke - wandering from your usual pastures I see.
1 oz Krugerrands - bullion coin (ie investment category - no VAT). Available from:

http://www.taxfreegold.co.uk/index.html

at 4.5% premium on spot price.
No leverage. Just a little insurance policy which I'll probably add to on price dips.

 

[bgold]

This is the first serious paper I have seen on the alleged manipulation of the Gold market by the central banks. It seems what used to be written off as the loon conspiracy theories of GATA have started to gain traction. It is quite long but worth the read IMO.

"Not Free, Not Fair: The Long-Term Manipulation of the Gold Price"
By John Embry
http://www.sprottassetmanagement.com/pdf/notfreenotfair_letter.pdf

Radio interview with John Embry of Sprott outlining arguments for his report (14min):

http://www.mineweb.net/sections/gold_silver/embryradio.htm

I would recommend Mineweb daily e-mail for dedicated goldbugs.

 

[bgold]

Hello Bracke - wandering from your usual pastures I see.
1 oz Krugerrands - bullion coin (ie investment category - no VAT). Available from:

http://www.taxfreegold.co.uk/index.html

at 4.5% premium on spot price.
No leverage. Just a little insurance policy which I'll probably add to on price dips.

Interesting site. Thanks for posting. When you mention "insurance policy", you probably refer to a global catastrophy scenario when low denomination coins could be useful. Otherwise, as investment I would argue that the GBS cerificates probably are a more cost efficient instrument.

Would you know how and where (in UK or overseas), one would be able to buy physical silver (coins) at intrinsic value +"small" purchase premium (eg no rarity premium)
Thanks

 

[peterpr]

BGold

I'm not a serious gold investor - yet! - still learning about the stuff, but with increasing interest.

You're probably right about the GBS certificates being more efficient instruments - but that's the problem too - they're bits of paper. I just thought I'd get a bit of the genuine article for a change, that's all. Not a lot, just enough to stuff under the matress for a rainy day - maybe put a few by for the kids etc etc.

Don't know where to get silver coins but a Google search would probably turn up something.

 

[bgold]

BGold

I'm not a serious gold investor - yet! - still learning about the stuff, but with increasing interest.

You're probably right about the GBS certificates being more efficient instruments - but that's the problem too - they're bits of paper. I just thought I'd get a bit of the genuine article for a change, that's all. Not a lot, just enough to stuff under the matress for a rainy day - maybe put a few by for the kids etc etc.

Don't know where to get silver coins but a Google search would probably turn up something.

Found teh answer on silver question! In UK silver bars and coins aree subject to VAT!! Therefore, not a viable investment/insurance alternative. I'll stick to the futures.

 

[bracke]

peterpr

Thanks for the link.

Regards

bracke

 

[masmit]

Found teh answer on silver question! In UK silver bars and coins aree subject to VAT!! Therefore, not a viable investment/insurance alternative. I'll stick to the futures.

There's this option, too, if you have a quite a bit to put by:

http://www.contrarianthinker.com/two_services_for_the_serious_phy.htm

Also, I wonder about eGold for those of us with not so much to put away:

https://www.e-gold.com/


Cheers,


Mark

 

[AlexAndrews]

eGold sounds interesting, but I'd like to know more about the regulation of the company and what financial guarantees are in place.

Alex

 

[fastnet]

eGold sounds interesting, but I'd like to know more about the regulation of the company and what financial guarantees are in place.

Alex

Anyone fancy sharing their thoughts on gold. Looking at the Dec contract it's coming up against the medium term resistance at $415/16 level.

If it can clear this I would expect a re-test of the overhead resistance at $435. Lovely trend channel formed but will need to break thru the $415/6 resistance to maintain it.

Grateful for any thoughts