Comments on: Fed audit push gives impetus to gold rally http://blogs.reuters.com/great-debate/2009/11/24/fed-audit-push-gives-impetus-to-gold-rally/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: scheng1 http://blogs.reuters.com/great-debate/2009/11/24/fed-audit-push-gives-impetus-to-gold-rally/#comment-27453 Thu, 26 Nov 2009 14:24:15 +0000 http://blogs.reuters.com/great-debate/?p=5803#comment-27453 The Dollar has to stabilise sooner or later, otherwise the asset bubbles in Asia countries and the “gold bubble” will get bigger. Once the Dollar appreciates, the bubbles will burst and hurt the economy of these countries.Those who invest in Gold will lose heavily too.China is trying very hard to control the bubble in stock market and real estate. If USD does not stop the decline, it’s very hard for China to succeed.

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By: Chris http://blogs.reuters.com/great-debate/2009/11/24/fed-audit-push-gives-impetus-to-gold-rally/#comment-27401 Wed, 25 Nov 2009 14:15:23 +0000 http://blogs.reuters.com/great-debate/?p=5803#comment-27401 Not necessarily a sensible investment?? Gold has tripled in value since 2001 – hows your 401k doing? Due to the controlled demolition of the economy the only sensible investments are Canadian and Swiss treasuries and precious metals. As for gold being a primitive form of currency – since all gold backing was removed from the dollar its been 38 years and the end is near, gold has held strong for 6000 years. You keep your paper and I’ll hold my gold, freeze dried food, water filters and guns.

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By: sadasivan http://blogs.reuters.com/great-debate/2009/11/24/fed-audit-push-gives-impetus-to-gold-rally/#comment-27387 Wed, 25 Nov 2009 08:50:58 +0000 http://blogs.reuters.com/great-debate/?p=5803#comment-27387 Is the Gold price being manipulated for the IMF realize better price on its sale of the same?There are also rumours that:-1.Gold is being “salted” with cheap Tungsten,as the densities of both are almost same.2.Germany has asked the USA to return her Gold,so also UAE of the UK.3.A particular nation has accumulated huge amounts of Tungsten.

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By: M http://blogs.reuters.com/great-debate/2009/11/24/fed-audit-push-gives-impetus-to-gold-rally/#comment-27383 Wed, 25 Nov 2009 07:51:39 +0000 http://blogs.reuters.com/great-debate/?p=5803#comment-27383 Standardized, limited, liquid, and maintenance free makes gold the vehicle of choice for hedging against an anticipated devaluation of currency. Diamonds, art, collectibles of all sorts can play the same role, none thought have the attractiveness of gold. Over the last five years, its value has increased 5 times. A distinguished professor in business was vehement in rejecting the idea of investing in gold or hedging with gold, instead recommending natural gas. It was in 2004. I hope he reads this now.However, from the 2004 perspective, the US was engaged in two wars, and the armament industry was flourishing. For some, the question of paying the mounting national debt was not so challenging. Until the end of Bush’s administration, almost anyone I know was expecting the printing to start. It started all right. Those investing in gold five years ago are happy. Those thinking in investing in gold now should take a step back. How do you see the world in five years from now?

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By: Timuchin http://blogs.reuters.com/great-debate/2009/11/24/fed-audit-push-gives-impetus-to-gold-rally/#comment-27353 Tue, 24 Nov 2009 22:11:50 +0000 http://blogs.reuters.com/great-debate/?p=5803#comment-27353 The problem with holding Dollar denominated paper is that it is declining in value despite whatever interest you can get. If you have paper Dollars, savings bonds, drawing rights, state bonds or municipal bonds, they will dive off given any unexpected emergency.CD’s aren’t owned by the depositor. When the bank or savings & loan go down in a crash, CD’s will be used to pay off the bond and sock holders in the bank.Stocks and funds held in the brokerage aren’t owned by the investor. When the brokerage goes down in a crash, those stocks and bonds will be used to pay off the stockholders and bondholders in the defunct brokerage. If you don’t have the paper certificate, you aint got jack.There are vastly too many U.S. Dollars around the world. It is a gigantic balloon. The foreign governments are fed up with taking U.S. Dollars to keep the U.S. economy going. And the Fed is cranking out Dollars faster and faster.If we have a disaster that could stop us from paying back even a token of the debt, there will be a panic buying of everything of value in this country as the Dollar hyperinflates. First countries will buy gold, silver, diamonds and tanzanite. Then countries will buy copper, machine tools, emeralds, citrines and rubies. Then countries will buy industrial machines, fishing boats, lumber and aluminum. The last countries will have to buy our basic industries — fishing, farming, mining and logging.In an unexpected emergency you won’t be able to reach your bank or your brokerage. Communications will be overloaded. All you can do is watch your wealth disappear on television.

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By: J http://blogs.reuters.com/great-debate/2009/11/24/fed-audit-push-gives-impetus-to-gold-rally/#comment-27338 Tue, 24 Nov 2009 19:17:38 +0000 http://blogs.reuters.com/great-debate/?p=5803#comment-27338 It is absurd and inconceivable to me that the Federal Reserve banks have not been audited even once in almost 100 years, even when it was revealed they were basically the cause of The Great Depression!Audits of financial institutions wouldn’t be needed if people were inherently honest and wouldn’t be corrupted by huge sums of money and power.How in the world can anyone be expected to be ethical and honest in proximity to not only the biggest pile of cash on Earth, but also with the ability to print money at will?

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By: Paul Rosa http://blogs.reuters.com/great-debate/2009/11/24/fed-audit-push-gives-impetus-to-gold-rally/#comment-27336 Tue, 24 Nov 2009 18:10:25 +0000 http://blogs.reuters.com/great-debate/?p=5803#comment-27336 Isn’t the problem with holding gold that it doesn’t pay interest? It pays no dividends and, almost by definition, you can only get back what you pay for it in devalued currency. It is a very primitive form of currency. It should come as no surprise that India and China value it. Their emerging middle class and wealthy buyers of gold are doing something that is culturally ingrained and not necessarily a sensible investment.Since so many are buying it as a hedge against inflation or shaky currencies – it is almost a self fulfilling prophecy.It’s just another way of putting money under a mattress.And there is an enormous appetite for gold in industrial applications. Just a quick online search revealed that 80% of the yearly production – several hundred tons – is used by the jewelry business. Another 12% is used in industrial applications like printed circuit boards (it is apparently the old good conductor for PC boards because it can be used in such thin deposits). It will have an application in supercooled conductors.But if you buy gold as jewelery you are paying for the labor to make the jewelry and not necessarily for the metal content.And for gold to be useful as a means of exchange, there has to be some other means of exchange stable enough to covert it to in order to calculate its relative value. If the holders of gold found themselves in a world of collapsing currencies, would they dare spend it at all? They could find that they were both rich and poor at the same time.I also noticed in that brief search that there was a period where the price of gold spiked very high above its normal value and than collapsed again. But the graph was too small to read the dates.If everyone goes into it because of fear driven mania – than the price will go far too high. We are forever blowing bubbles it seems.And the writer who suggested hat it will take years to add to the gold supply is wrong. Hundreds of tons are extracted every year and the higher price means the more marginal deposits will be exploited. Just the rapidity with which so many wind and solar projects were – are – still being constructed due to the spike in oil prices, should suggest to them that industrial capacity seems to increase very quickly on demand.And if you are having a hard time believing in the integrity of bankers why would you believe in the integrity of gold brokers?

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By: Ash http://blogs.reuters.com/great-debate/2009/11/24/fed-audit-push-gives-impetus-to-gold-rally/#comment-27330 Tue, 24 Nov 2009 16:17:59 +0000 http://blogs.reuters.com/great-debate/?p=5803#comment-27330 As I have always said, economic journalists are exactly that…’journalists’. You really have no idea why gold is going up as can plainly been seen in your article. You report what you think and certainly not what you know. If you really are open minded enough to learn then you should contact Mr Paul and he will lead you in the right direction as to what you should be reading yourself. On top of this you have a very unhealthy trust in bankers. These men are a curse on society.

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By: Chris http://blogs.reuters.com/great-debate/2009/11/24/fed-audit-push-gives-impetus-to-gold-rally/#comment-27329 Tue, 24 Nov 2009 15:27:57 +0000 http://blogs.reuters.com/great-debate/?p=5803#comment-27329 Why should anyone trust the Federal Reserve? Independence should not be synonymous with secrecy. We have a secret PRIVATE bank creating trillions of $$ out of thin air and we shouldn’t be able to audit them?? The dollar since the creation of the Fed in 1913, read The Creature From Jekyll Island, has lost more than 95% of its purchasing power. The puzzling assertion made by the Fed and its supporters is that the Federal Reserve has some sort of independence from the government and independence in undertaking monetary policy. Nothing could be further from the truth. The Federal Reserve is a government-created banking monopoly, and its top decision makers are appointed by the president and confirmed by the Senate. If they do not perform satisfactorily in the eyes of politicians, they will not be renominated. Someone please explain why we should not audit the Fed.

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By: Timuchin http://blogs.reuters.com/great-debate/2009/11/24/fed-audit-push-gives-impetus-to-gold-rally/#comment-27327 Tue, 24 Nov 2009 15:15:27 +0000 http://blogs.reuters.com/great-debate/?p=5803#comment-27327 The biggest driver for the price of gold is the imminent demise of the U.S. Dollar and everything denominated in Dollars. How else can we save our wealth? The American government is doing everything it can to artificially drive down and disparage the price of gold as compared to the Dollar.The price of gold took off when the World Bank tried to drive it down by dumping gold on the world market. India immediately snapped up half the gold and China may have snapped up the other half. The rest of the world is out of reach by the propaganda in the American media.As James Saft said, we can’t just start cranking out more gold on demand. Gold can’t form a bubble that can be sated & crash. It will take years for new mines to get in production. Most of the gold in this planet is below the Mohole layer.The American government can declare gold ownership by citizens to be illegal to discourage its subjects back to the Dollar. But the borders are still open to get gold out to a hungry world. If millions of Mexicans and drugees can do it, so can we.

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