NZPOG continues to loose air …

I’d have to say NZPOG is the most tedious chart in my collection, this whole winter (southern hemisphere) it has lost any sense of volatility as the USPOG moves have been negated by the USD, translating into an NZD Gold price that just leaks value progressively. Today it’s dropped again beneath a horizontal support, though we can start to see a narrow downwards channel forming. Gold bugs holding this metal in Kiwi$ will not like the prospects of a rising USD and falling USPOG, which could translate into more sideways tedium.

Thanks to all my Twitter followers

Hi folks, I just wanted to say a huge thanks to all my Twitter followers and for your interest in checking out this website from time to time. I like to post about Gold & precious metals, price chart analysis, news and my own views. I leave all my posts open to public view and comment, I really appreciate getting comments.

I hope you find my website useful and informative.

regards
BAA

Daily Reckoning

Now folks, for a good daily contrarian read and downright to the point analysis of markets including precious metals, I do recommend checking out the Daily Reckoning.

There’s always a few ‘nugget’s in each communication; here’s an example:

–Check out the chart below, courtesy of our old friend Chris Weber. We are often asked how the Aussie dollar price of gold can go up when the Aussie dollar itself is getting stronger relative to the U.S. dollar. Chris shows that all currencies have been declining against real money since 2000. It’s a case of competitive devaluation.

There’s a link in my Blog side bar. The thing I enjoy the most is the daily email updates. You gonna love these guys.

The Death of Gold?

From Seeking Alpha “This is the 1980 spike revisited, but at a much higher inflation adjusted price. How high? There are as many guesses as their are commentators – $2200, $5000 or more? This is the end game that many goldbugs have been waiting for, when they can shout “we won”!

But will they have won? I would argue not. I would argue that such a scenario would actually be the death of gold.” Click here for the whole artcle

China should buy Gold as USD hedge

China should buy gold as falling dollar hedge – China CP research
A senior China Communist Party researcher fears for future of dollar and says the country should buy gold, natural resources, U.S. Land and wants IMF’s SDR reformed to give yuan a 20 percent share.

Author: Zhou Xin and Alan Wheatley

… read the rest of the article here

Deflation, Inflation, Hyperinflation

An excellent article from Simon Botherway;

“Weimar style inflation threatens”
OPINION: It would be unthinkable for the Reserve Bank, a fiercely independent central bank, to print money to devalue the Kiwi, right?

Nope, wrong. It will reluctantly be driven there by the actions of major global central banks and governments, whose prevailing anti-deflationary policies are exporting deflation to us (amongst others). Those same policies are also sowing the seeds of eventual serious inflation. Here’s how it will unfold.

Deflation is currently considered a far greater threat to the global economy than inflation due to two key factors.

… read the rest of the article here

Whiskey & Gold

Giving money and power to government is like giving whiskey and car keys to teenage boys.

~ P. J. O’Rourke

Gold target $1,224

Go Jim Sinclair … his personal gold target is $1,224

The TOP 10 REASONS to Hold Gold, Bar None!

The Motley Fools did a really good job of this … The TOP 10 REASONS to Hold Gold, Bar None!

Why You Shouldn’t Expect $1,000 Gold Anytime Soon

Here’s a great article putting forward reasoning why, in a deflationary environment, Gold won’t cut the mustard; so the question is, assuming that it is indeed a deflationary environment, whether inflationary or preferrably for gold bugs ‘hyperinflationary’ environment will follow.

Why you shouldn’t expect $1000 gold anytime soon

The best part about that scenario is deflating prices provide accumulation opportunities as people sell for profits; buying into a bottom followed by inflation driven prices increase thereafter.

Maybe we have a theme worth developing here.

BAA

Linking the golden dots, big seller need big buyer

So the IMF decides to sell 403 tonnes and the World Gold Council is OK with that apparently, because it won’t affect the gold market. Well heck, how could a huge sales like that NOT affect the gold market? Lets try and link some golden dots.

The way to make a huge sales of gold and not affect the market (price) per se is to sell to a single counterparty, hmmm. Who’s buying Gold and more importantly who’s buying a lot of Gold. Ah ha, you got it … China.

Choppy times ahead for Gold?

Choppy times ahead for gold in near term – BMO’s Melek
While gold may be vulnerable to a near-term pullback, BMO’s Bart Melek believes there are long-term motivations to hold the precious metal.

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=85418&sn=Detail

How much Gold in your portfolio?

How much gold should be in your portfolio
Financial advisers often suggest maintaining at least some part of one’s investment portfolio in gold as a diversifier, stabilizer and inflation hedge -but how much makes sense?

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=84224&sn=Detail

Right time for Gold Mining Stocks?

Why the time could be right for gold mining stocks
There is a correlation between U.S. deficit spending and gold outperforming the S&P 500. This coupled with the Chinese appetite for gold should keep gold and gold stocks attractive to the broader market.

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=84558&sn=Detail

IMF Gold Sales

ORDERLY SALE ANTICIPATED
IMF gold sales clearance welcomed by World Gold Council
The U.S. Congress’ passage of a bill which would effectively allow the IMF to sell 403.3 tonnes of gold has been welcomed by the World Gold Council which feels the sale will have no impact on the global gold market
http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=85262&sn=Detail

… yeah right!

$1 Dollar Bank Note

dollarmo2

Originally uploaded by Baa_Baa

$1 Federal Reserve Bank Note … “In God we Trust”

$5 Silvercertificate

683px-Silvercertificate_1

Originally uploaded by Baa_Baa

Five Dollar Silver ‘Certificate’ … redeemable in Silver Coins “payable to the bearer on demand”

$10 US banknote payable in Gold

$10 US banknote payable in Gold

Originally uploaded by Baa_Baa

Carefully read the words on the banknote; from the times when paper money was issued as an IOU redeemable in precious metal.

The Money Masters

This is compulsory viewing for a Goldbug. The whole series is linked in my Videos section of this Blog https://baabaapreciousmetals.wordpress.com/videos/

Here’s the first of the series; watch them all. Honest, you will benefit from this knowledge.