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 Gold Investment Corner V8, All About Gold

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lyralp
post Dec 5 2014, 04:34 PM

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It appears that the USD will remain in its position simply because there is no good alternative except for gold which has its own shortcomings as a currency, at least for now.

This post has been edited by lyralp: Dec 5 2014, 04:36 PM
SUSsylar111
post Dec 5 2014, 06:12 PM

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QUOTE(max_cavalera @ Dec 5 2014, 03:35 PM)
blush.gif this thread used to be a free trade ideas and opinion on gold...

now it seems as if u are trying to corner the market and forces the majority to follow your instruction.  rclxms.gif

The way u and the feds-giant bankers behave is the same...u shud join them  icon_rolleyes.gif  notworthy.gif
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Really.

Did I put a gun onto your head to force you to follow me?
SUSsylar111
post Dec 5 2014, 06:25 PM

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QUOTE(cherroy @ Dec 5 2014, 03:54 PM)
Repatriating gold has nothing to do with USD either.
it is not like US will pay the gold in USD as well when they repatriating.

1 ton of gold repatriating is 1 ton. Whether USD rise or plunge, it is still 1 ton.

Any fiat money is backed by nothing but confidence about the gov issued it.
There is no way everyone ditch USD, as worldwide trade majority is in term of USD, which is not going to change in short or near term future.
As long as worldwide major trade and economy needs US to consume their goods, no other alternative currency can be used widely, situation remain status quo.

Second largest economy, China RMB is not a freely trade currency internationally, so it poses problem for worldtrade to use it.

Gold is never enough nor feasible as trade medium, nor a good source as currency in any economy.

Currently, USD currently is one of strongest around, rise against all major currency, from Yen, Aud to RM.
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There are already direct currency swaps agreement that China has arranged with other countries.

Yes, in the past, there isn't any other choices.

Now there is. The fact is, people are now looking for alternatives. Russia is accepting payments for oil using gold. The thing is, it already shows crack of the USD because generally, USD is supposed to be considered the petrodollar. Right now, people are starting to find alternatives.

No doubt that USD is rising. The reason why is because of QE being done by Euro and Japan. Also on news that China is lowering interest rates. This give the perception that USD is strong because Euro and Japan is weak.

USD can engage in the QE program because it is the reserve currency.
Unfortunately when Euro and Japan engages in this, it will not do well in the long term.

If gold was so "useless". Why is holland asking for the actual gold. Why not ask for USD? Why is Germany asking for the actual gold.

A gold backed currency gives confidence and strength to that currency because people do not have to worry about inflationary pressures. Right now, in our current system, because currency can be printed, there are lots of inflationary pressures associated with that currency. The thing is, keeping the currency for too long will result in your wealth being dwindled.
SUSsylar111
post Dec 5 2014, 07:19 PM

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QUOTE(cherroy @ Dec 5 2014, 03:44 PM)
Don't need to argue whether gold is high demand or being accumulated by whom.

Price of gold reflect the demand situation, this is the most solid fact.

High demand --> price soar

This is the basic fundamental of economy, supply & demand.
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Really.

How many traders actually request for the actual gold delivery?

How much gold does Comex actually has.

Supply and Demand. Yeah Right.
cherroy
post Dec 5 2014, 10:22 PM

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QUOTE(sylar111 @ Dec 5 2014, 06:25 PM)
There are already direct currency swaps agreement that China has arranged with other countries.

Yes, in the past, there isn't any other choices.

Now there is. The fact is, people are now looking for alternatives. Russia is accepting payments for oil using gold. The thing is, it already shows crack of the USD because generally, USD is supposed to be considered the petrodollar. Right now, people are starting to find alternatives.

No doubt that USD is rising. The reason why is because of QE being done by Euro and Japan. Also on news that China is lowering interest rates. This give the perception that USD is strong because Euro and Japan is weak.

USD can engage in the QE program because it is the reserve currency.
Unfortunately when Euro and Japan engages in this, it will not do well in the long term.

If gold was so "useless". Why is holland asking for the actual gold. Why not ask for USD? Why is Germany asking for the actual gold.

A gold backed currency gives confidence and strength to that currency because people do not have to worry about inflationary pressures. Right now, in our current system, because currency can be printed, there are lots of inflationary pressures associated with that currency. The thing is, keeping the currency for too long will result in your wealth being dwindled.
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Gold backed currency is never going to work well with economy.
Money need to grow to cater economy grow, gold backed money will hinder the grow.
Central bank will need to tell borrower, sorry doesn't have enough gold to back the new printed money, so cannot give property or car loan to you, so people cannot buy car/property, here goes the economy.
Your boss will tell the employee, hey bank doesn't find enough gold to back new money created, so cannot give payrise. laugh.gif

Gold backed will beneficial to the gold bug, and saver, no doubt, but it doesn't work well with general economy.
cherroy
post Dec 5 2014, 10:25 PM

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QUOTE(sylar111 @ Dec 5 2014, 07:19 PM)
Really.

How many traders actually request for the actual gold delivery?

How much gold does Comex actually has.

Supply and Demand. Yeah Right.
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Price is the equilibrium of supply and demand, whether the gold futures is cash settled or take delivery, it makes no different.

When everyone agree gold per ounce is USD1200 as in the futures, then it is the demand and supply equilibrium.
Actual physical gold trade does follow the futures market pricing speaks all.

icemanfx
post Dec 5 2014, 10:46 PM

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QUOTE(sylar111 @ Dec 5 2014, 01:19 PM)
As I said,
you probably went all quiet. The fact was at that time, anything could have happened from 1900 onwards. It could continue to go up even shoot up. If that happened, many people who head your advise would probably be cursing you.

No I did not say you were wrong. But then when it went to 1900, did you tell others to stop buying gold? Nope. Because at that point, there is a huge possibility you could be very wrong.
Again you did not read what I have said properly.

You compare Properties with Gold.
The thing is for properties, there is no fundamentals for the upward trend.
For Gold, there are fundamentals backing up why it should go up even based on simple supply and demand.

The problem is. You really take the spot gold price too seriously. As I said, the spot gold price does not reflect supply and demand. Spot Gold price is only based on sentiments of what the paper gold price means at that time. The people are not interested in the real gold as I have said countless time.
The thing is, you probably take the spot gold price seriously even though I have said countlessly it is not a reflection of real supply and demand.
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Knowing how and why gold went to bull run, if you track back, you will find i was probably the only person in the tread advising gold price was unsustainable BEFORE gold price peak. like current property thread, no one listened hence cause me to take up behaviour economic study to understand the herd behaviour.

What would be true value of gold? determine by whom?

QUOTE(sylar111 @ Dec 5 2014, 02:54 PM)
Just because the fed does not value gold, does not mean others dun.

You are obviously myopic. Just looking at 1 side of the coin.

Many central banks every where are starting to accumulate gold silently or openly.

Obviously it shows that gold is in demand right now.
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Central banks juggle their portfolio constantly include gold in the hope to maintain value.

QUOTE(sinbad2k @ Dec 5 2014, 03:41 PM)
I'm merely answering your question on "How many and how often central banks or anyone announce their gold bullion movement publicly?" since you initially posted "Given gold is on the downward trend, buying gold in the near future is likely to loss value for a number of years." to which I asked why then the Dutch Central Bank repatriated their gold instead of just selling it off. Why DCB go through the fuss since you said gold is on the downward trend and likely loses its value in coming years?
About your new question, "How will this gold relocating could effect gold price or fiat money?"(out of the blue?I'm not sure why it's linked to my previous post about Dutch central bank gold repatriation), maybe some other member here can give their views on it.

Anyways, in my opinion, from what I understood in short term, that action of repatriating gold from the Fed probably doesn't affect gold prices at all. But the fact that the Dutch did it, the Germans tried, the Swiss initiated a referendum, India, China and Russia stocking gold, it signifies something; they're starting to lose confidence in USD as the world reserve currency. All will still go well, if everyone still have faith in it but with so many USD printed(thru deficit spending), it's losing is value gradually and there will come a time when everyone loses their confidence in it since it's  inherently just a piece of paper backed by nothing but the good faith of the US government i.e. the US Government assures you that it's worth something. Because everyone has started to lose faith(because of the currency printing), the USD loses its worth. Everyone will try to ditch USD but there's no world reserve currency to fall back to except for gold. That's when gold would rise.

Any input/comments from other members are welcomed.
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Storing gold incur expenses and need infrastructure e.g. security, insurance, etc. the reason why german and dutch repatriated their gold back to their vault, could be ny fed is charging them more.

If removing gold from the u.s will have negative impact on us$; after german and dutch got their gold back, was there any positive impact on euro?

QUOTE(sylar111 @ Dec 5 2014, 06:25 PM)
There are already direct currency swaps agreement that China has arranged with other countries.

Yes, in the past, there isn't any other choices.

Now there is. The fact is, people are now looking for alternatives. Russia is accepting payments for oil using gold. The thing is, it already shows crack of the USD because generally, USD is supposed to be considered the petrodollar. Right now, people are starting to find alternatives.

No doubt that USD is rising. The reason why is because of QE being done by Euro and Japan. Also on news that China is lowering interest rates. This give the perception that USD is strong because Euro and Japan is weak.

USD can engage in the QE program because it is the reserve currency.
Unfortunately when Euro and Japan engages in this, it will not do well in the long term.

If gold was so "useless". Why is holland asking for the actual gold. Why not ask for USD? Why is Germany asking for the actual gold.

A gold backed currency gives confidence and strength to that currency because people do not have to worry about inflationary pressures. Right now, in our current system, because currency can be printed, there are lots of inflationary pressures associated with that currency. The thing is, keeping the currency for too long will result in your wealth being dwindled.
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u.s subprime crisis in 2008 showed how much the world economy is depending on the u.s. as long as central banks and gomen are holding u.s$ in reserve and u.s bonds, u.s$ is irreplaceable.

This post has been edited by icemanfx: Dec 6 2014, 10:22 AM
lyralp
post Dec 5 2014, 10:51 PM

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Gold is doing 1193/T.Oz, Crude Oil still damp and doing 65/barrel now. USD going strong giving RM3.47 or to put it another way Ringgit is getting weaker by the day, FKLI still going down, 6 consecutive Daily LHLL price action.
icemanfx
post Dec 5 2014, 11:54 PM

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QUOTE(lyralp @ Dec 5 2014, 10:51 PM)
Gold is doing 1193/T.Oz, Crude Oil still damp and doing 65/barrel now. USD going strong giving RM3.47 or to put it another way Ringgit is getting weaker by the day, FKLI still going down, 6 consecutive Daily LHLL price action.
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bnm is likely to increase interest rate earlier and higher (e.g. 0.5%) than expected.

This post has been edited by icemanfx: Dec 5 2014, 11:55 PM
Sham903n
post Dec 6 2014, 01:00 PM

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with all this hoo haa are guys active trader of gold? paper or physical?
icemanfx
post Dec 6 2014, 11:41 PM

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If gold price is relevant to currency.

during the last gold bull run, a reason cited for gold price rise was fed qe. qe has been tapered but the amount of us$ in circulation didn't reduce, actually is increasing at a slower pace, why gold price dropped so much?

BabyZebraCrossing
post Dec 7 2014, 08:03 AM

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when do we expect it to go up then. 3 to 4 years?

anyway when ringgit is depreciation then we should buy gold is it?
icemanfx
post Dec 7 2014, 09:27 AM

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QUOTE(BabyZebraCrossing @ Dec 7 2014, 08:03 AM)
when do we expect it to go up then. 3 to 4 years?

anyway when ringgit is depreciation then we should buy gold is it?
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Gold price is unlikely to go on another bull run in 3 to 4 years time.

If depreciating myr is your concern, you could just buy SGD, USD, or EUR.


max_cavalera
post Dec 7 2014, 10:49 AM

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QUOTE(icemanfx @ Dec 7 2014, 10:27 AM)
Gold price is unlikely to go on another bull run in 3 to 4 years time.

If depreciating myr is your concern, you could just buy SGD, USD, or EUR.
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As USD is rising against almost all major currency....wouldn't other country that owes the US credit need to pay higher amount due to the exchange? wont they eventually default on their debt(especially smaller countries) payment to the US? Higher USD currency seems like benefit US government but its actually a double edge sword... hmm.gif
cherroy
post Dec 7 2014, 11:39 AM

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QUOTE(max_cavalera @ Dec 7 2014, 10:49 AM)
As USD is rising against almost all major currency....wouldn't other country that owes the US credit need to pay  higher amount due to the exchange? wont they eventually default on their debt(especially smaller countries) payment to the US? Higher USD currency seems like benefit US government but its actually a double edge sword...  hmm.gif
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Most countries own treasuries, so technically it is US "owe" them, not the other way round. tongue.gif

Yup, if domestic corporate/company issue USD denominated bond or borrow USD, they need taking into account into their P&L, so we would see some forex loss in their account if USD rising whilte company has USD denominated borrowing.


But for country front, you repaid your foreign denominated borrowing through your foreign currency reserves, they won't accept your currency (small countries) so if you don't have USD in your foreign currency reserves to repay your borrowing in USD, you are "doom, and need to seek IMF help generally.

It is silly to borrow from outside or USD which is not your denominated currency.
1997 crisis has taught many countries especially Asian borrow money or issue bond in foreign denominated currency is a risky game to play.

Most countries since them fund their budget deficit through own currency, so no effect on USD rising or not.

TruthHurts
post Dec 7 2014, 01:23 PM

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QUOTE(max_cavalera @ Dec 7 2014, 10:49 AM)
As USD is rising against almost all major currency....wouldn't other country that owes the US credit need to pay  higher amount due to the exchange? wont they eventually default on their debt(especially smaller countries) payment to the US? Higher USD currency seems like benefit US government but its actually a double edge sword...  hmm.gif
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What's so hard ?? Just get USD cause it's major fiat currency and get Physical Gold in case fiat currency falls. Easy. Too much thinking the movement of cash and gold could take years.. so getting both gives relief to your mind.

USD Up, Gold down or Gold Up, USD Down. Apa Lagiii..

carbon junkie
post Dec 8 2014, 05:33 PM

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nexona88
post Dec 8 2014, 05:50 PM

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From: REality
Gold stays below US$1,200 as US jobs boost dollar

Investors fear the strength in the economy could draw the Federal Reserve closer to raising interest rates and decrease demand for gold, a non-interest-bearing asset.

"We suspect that gold will likely be at its most vulnerable over next three to six months, which is when we see the highest likelihood of a rate hike that should sweep the dollar higher," INTL FCStone analyst Edward Meir said.

"In addition, the recent rout in energy prices will lower inflationary expectations and increase real interest rates, yet another reason that we would be cautious about gold's upside potential."

For now, some market players say gold could hold near US$1,190 levels on recent data on investor positioning.

"There looks to be some underlying strength in the market however, as the yellow metal convincingly held US$1,180 on Friday, following the non-farm payroll print," said Sam Laughlin, metals dealer at MKS Group.

Immediate support will come in around US$1,186, while on the topside US$1,210-US$1,220 will provide resistance, he said.
JAIDK23
post Dec 8 2014, 07:38 PM

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hye. just discover this thread smile.gif)
Johannlo
post Dec 9 2014, 08:31 PM

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Guys, i would like to ask, if i were to buy the kijang emas from maybank, where do i go to when i plan to sell it? and is it hard to sell it back?

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