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Gold price dives through support to new low. Gold Bubble continues to deflate.; Gold price to drop another 15% this year say strategists at Societe Generale
Topic Started: 3 Apr 2013, 10:29 AM (37,688 Views)
Olmule
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miw
14 Apr 2013, 07:22 PM
In general they will still be better than the small operators in the same area. After all, the big corps are subject to pressure in their home countries as well as regulation in the country of operation.
Depends how you judge it and depends on the deposit.

The deposit may become uneconomical for a series of small timers before the place is totally thrashed.

The global giant, once set up there, would continue to go deeper and bigger - thrashing the area to a level unfathomable to the small timers.
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b_b
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Veritas
14 Apr 2013, 01:58 PM
Im actually happy about this.

Actually, Im happy about anything (else) that shows the loony right/Austrian/Libertarian/Bitcoin/gold standard headbangers for the headbangers they are.

They have polluted the discourse for long enough.

Anyway, Krugman, who else?, hands them their bollox here http://www.nytimes.com/2013/04/12/opinion/krugman-lust-for-gold.html?partner=rssnyt&emc=rss&_r=0
+1
(S – I) + (T - G) + (M - X) = 0
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Pig Iron
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Bogan scum

miw
14 Apr 2013, 07:22 PM
Didn't know that. How much? As much as, for example as is emitted from a coal-fired power plant?


In general they will still be better than the small operators in the same area. After all, the big corps are subject to pressure in their home countries as well as regulation in the country of operation.
http://www.parliament.wa.gov.au/parliament/pquest.nsf/969994fcf861850d4825718d002fe7fb/9eb4ab5a3750935c48257797002e6f24?OpenDocument

7 tonnes a year. i'm not sure how that compares to a coal power station. plenty of toxic crap comes out of the gidji roaster.
I am the love child of Tony Abbott and Pauline Hanson
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Admin
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Billionaire Paulson the biggest loser after precious metal falls

April 15, 2013
Katherine Burton

Billionaire John Paulson lost more than $US300 million ($285 million) of his personal wealth on his gold bet, as the precious metal fell to its lowest price in almost two years.

Paulson has roughly $US9.5 billion invested across his hedge funds, of which about 85 per cent is invested in gold share classes. Gold dropped 4.1 per cent on Friday, shaving about $US328 million from his net worth on this bet alone.

Gold tumbled and entered a bear market after falling more than 20 per cent since August 2011, bringing more bad news for Mr Paulson, 57, who has struggled with poor returns for the past two years. He told investors last year that his $US700 million gold fund would beat his other strategies over five years because gold was the best hedge against inflation and currency debasement as countries pump money into their economies. The fund slumped 28 per cent this year through to March, a source said this month.

''The recent decline in gold prices has not changed our long-term thesis,'' John Reade, a partner and gold strategist at Paulson & Co, said in an emailed statement. ''We started investing in gold at $US900 in April 2009 and while it's down from its peak to $US1500, it's up considerably from our cost.''

Paulson investors can choose between dollar and gold-denominated versions for most of the firm's funds. In addition to losses from bullion's decline, investors in Paulson & Co funds, including the firm's founder, lost about $US62 million on Friday on their gold stock investments, based on holdings as of December 31 last year.

Paulson & Co's biggest wagers in miners include a 7.35 per cent stake in AngloGold Ashanti.

Goldman Sachs said the turn in the gold price cycle is accelerating after a 12-year rally as the recovery in the US economy gains momentum. The bank reduced forecasts for gold through to next year.

Deutsche Bank cut its 2013 gold outlook last week by 12 per cent, citing a strengthening dollar and a lack of haven buying.

Read more: http://www.smh.com.au/business/billionaire-paulson-the-biggest-loser-after-precious-metal-falls-20130414-2htr7.html
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Gossamer
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So tell us Shadow, when will it be time to start buying gold?
Common sense is a curse - those who have it need to suffer dealing with those who don't have it.

APF idiot list
Nelson
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A gold bubble still waiting to burst

Stephen Koukoulas
3 hours ago

Gold is pretty – pretty useless that is. Why it gets a mention on financial news bulletins, why it is seen as a viable asset class and why it fuels passion from those thinking it has some underpinning for financial markets is difficult to comprehend.

To be sure, gold was first seen as a valuable metal a few thousand years ago when it was used to make coins and thus it became a medium of exchange. This trend has continued to this day where some coins are made from gold although very few of them are in circulation anywhere in the world. In other words, its value is as a novelty, not a medium of exchange.

The price of gold is underpinned because it is reasonably scarce or rather, it is currently difficult and therefore expensive to mine. The price is also supported by the demand from people who want to buy it and lock it up in a vault or an exchange traded fund, hide it in their undies drawer or bury it in a biscuit tin in the back yard. It serves no purpose in this form.

Of course, there is demand for gold from the jewelry market as it can be crafted into delightfully attractive rings, necklaces and bracelets. It is very attractive in this form, which obviously supports its price in a more fundamental sense. As a substance, therefore, it is like aluminium or steel, which can be crafted to make things like drink containers, window frames and car parts.

The massively inflated price for gold is a reflection of it being fashionable on the one hand, which seems legitimate, but in recent years there has been the ongoing perception that it is a store of wealth and while enough suckers believe this, its price is likely to stay high.

As with any item, the price of gold is determined by demand and supply. It is just another commodity and to that extent, it is little different from soya beans, tin or other commodities.

One issue the gold bugs rarely if ever deal with is what happens to its underpinning, hedge against inflation or store of wealth if there is a massive discovery of cheap and easy to mine gold? What if those people or groups with lots of gold in their vaults, such as central banks, rush to sell it? What happens to its value as a store of wealth, hedge against inflation of some other made up issue invented to justify its high price if there is a sudden glut?

It’s price would fall like a stone, like the price of any commodity falls when there is excess supply.

The vulnerability of the gold price has been evident in recent days where even a vague discussion of the US Federal Reserve ending its quantitative easing strategy and the Bank of Cyprus selling a tiny amount has seen the price drop from around US$1,750 an ounce in November 2012 to around US$1,500 at the moment.

It is hard to say how much the price would fall if the US Fed sold even half of its 8,133 tonnes of gold, or if the Bundesbank in Germany sold half of its 3,391 tonnes of gold holdings. It would be a bursting a bubble that would make the Nasdaq tech-bubble crash look like a picnic.

According to the World Gold Council, the ten largest holders of gold – that is central banks – currently hold an estimated 21,400 tonnes in reserves with total central bank holding estimated to be around 31,600 tonnes. That is just the central banks!

New mine production of gold is around 2,400 tonnes a year, while a further 1,400 tonnes is recycled – the melting down of old jewelry and trinkets that adds to fresh supply.

Use of gold in jewelry and in manufacturing is estimated to be around 2,600 tonnes a year. An additional 500 tonnes or so is used in manufacturing and other industrial usage, which means very simply that there is an excess supply of gold, by a large amount, from what might be termed true demand.

The reason for the price surge over the past decade or so is that there has been a frenzied demand for gold for “investment” or speculation reasons. In the five years until the end of 2011, this investment demand rose by 534 per cent, a frenzied bubble of demand that clearly underpinned the price.

What happens when these investors sell their holdings?

The price of gold is at the current elevated level because there is demand for jewelry and some manufacturing but more so because there are enough people buying it thinking it is a store of value or a hedge against some disastrous event.

Gold is also a dud for other reasons. Very simply, gold is expensive to hold. Either it has to be insured against theft or one must have elaborate security in place to stop the thieves. It is also a dud because in investible quantities it does not earn any return – no interest, dividend or rent. In other words, it needs to rise a good 5 to 7 per cent a year, every year, to cover direct costs and opportunity costs of cash in the bank.

Making the gold price issue all the more complex, is that much of the turnover in gold is on paper – its traded in a futures market where the turnover is many multiples of all the gold ever mined. Its price can be influenced and distorted by derivative traders and punters and has nothing to do with its true value.

Does that sound familiar with other derivatives blowing up from time to time?

If you want to buy gold and hold it – go for it!

I would say the same for those wanting to buy soya beans, pork bellies, iron ore, wine or fine art. Good luck to you – I hope you make lots of money. But for me, I’ll be sticking to something that has a stronger underpinning and is an important part of the real economy.

Read more: http://www.businessspectator.com.au/article/2013/4/15/commodities/gold-bubble-still-waiting-burst
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Frank Castle
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Business As Usual

Gossamer
15 Apr 2013, 12:00 PM
So tell us Shadow, when will it be time to start buying gold?
Warning! Gold Could Drop Below $500 – Gold’s real return: zero


Posted Image

http://investmentwatchblog.com/warning-gold-could-drop-below-500-golds-real-return-zero/

And no, I am not shadow.
Edited by Frank Castle, 15 Apr 2013, 12:10 PM.
Ignore posts by The Whole Truth · View Post · End Ignoring
The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
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Shadow
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Evil Mouzealot Specufestor

Gossamer
15 Apr 2013, 12:00 PM
So tell us Shadow, when will it be time to start buying gold?
I'm thinking 01/04/2015, late morning... probably around 11:30am (on the east coast).
Edited by Shadow, 15 Apr 2013, 12:15 PM.
1. Epic Fail! Steve Keen's Bad Calls and Predictions.
2. Residential property loans regulated by NCCP Act. Banks can't margin call unless borrower defaults.
3. Housing is second highest taxed sector of Australian Economy. Renters subsidised by highly taxed homeowners.
4. Ongoing improvement in housing affordability. Australian household formation faster than population growth since 1960s.
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Admin
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Gold stocks hammered as price falls

April 15, 2013 - 11:11AM

Local gold stocks are taking a big hit this morning after the price for the precious metal fell into bear market territory in offshore trade on Friday, sinking to its lowest level since August last year.

The plunge in the gold price has pushed the ASX's gold stocks sub-index down 7.7 per cent in early trade.

The precious metal was trading at $US1493.45 this morning, down 4.2 per cent from local trade on Friday.

US investment bank Goldman Sachs put a ‘'sell'’ on the metal last week, which sparked an early sell-off.

But IG strategist Evan Lucas said it had come under even more pressure from technical selling, as it broke through the $US1522 support level to fall to $US1483.

‘‘The bears roared even harder towards the end of last week as soft data led to analysts making the call that a period of deflation is on the cards, as the US stimulus package floods the market, but is not followed by any discernible changes to the economy,’’ he said.

‘‘This outlook is even direr for gold.’’

Read more: http://www.smh.com.au/business/markets/gold-stocks-hammered-as-price-falls-20130415-2hurc.html
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Catweasel
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Catweasel say spooky.

The gold etf on a nikkei down a 6 pc but down about a 4 pc on a ASX.

Sandpit not know what a hell the go on. Expert not a know a hell.

Mouse not interest in buy a gold so who the care?
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