Yankee

Check out this news interview! I wonder if a big rally is coming soon! http://www.youtube.com/watch?v=PUl9D...layer_embedded

Yankee

I have a great deal of certainty that both Martin Armstrong and Alf Fields are going to be proven 100% correct in their predictions that gold finds or has found its low in this month to be followed by a dynamic move to the upside. This move will not be modest by any means, but rather the most vigorous move we have experienced so far in this Gold bull market. Attend to completing whatever you wish to do in the next few coming days. Watch your simple trend lines very carefully this time because sales at $1000 will be wrong. The glib saying of "Sell in May and go away" will separate you from terrific gains this time around.

The least I can take away from this is that he feels $1000 is coming before summer is out. We could get a low of $890-$918 within the week and spend a number of weeks chopping slowly upwards for a stronger move in July. I'm watching the charts and still no positive confirmation of a definitive pog bottom yet even though a number of the indicators are in bottom territory. If the dollar moves up strongly and flattens the stock market, I don't see how gold miners can avoid correcting as well.

Daboz

There are several stories out there on Chinas increase commodities demand and large Gold reserve increases lately. They have to do something with all that money they bring in from exports, and weak currencies are not what they desire. China and Russia duing the BRIC meeting are calling to go off the Dollar standard in favor of an international currency. Sound very bullish to me. Silver has actually been outpacing gold lately.

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Yankee

I am hopeing for a pull back in gold prices in the near term for a buying opportunity to better my cost average. But I am holding long term for the moment until our government decides weather or not they will put the breaks on with the money they have been putting into the economy. Its a mess out there and there are many conflicting signals to deal with. Keep your fingers crossed!

Morgan1878

Silver outpaced gold going up....it's now outpacing gold going down...
actually, the Russian Finance Minister made a strong statement this week in support of the dollar which along with Japan's expressing "100% confidence" in U.S. Treasurys pushed the U.S. dollar higher and precious metals lower.

However, a week does not a market make. Most traders think this decline in the metals is short-lived and as the dollar starts declining again..gold & silver will push up again. I doubt however that you will see a quick spike to the upside absent a "black swan" event such as a natural disaster, new war or other unpredictable factor that would cause the necessary turmoil for a big move to the upside...

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Cloudsweeper99

I wouldn't believe any story that proported to state what China plans to do, even if it came from the Chinese government. They are just too smart to announce these things in advance, and if the story is true then you have to think about what the true motivation could be.

coinman0456

The story broke on c-span two days ago.

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CrustyCoins

Based on China's track record buying gold from European banks over the last decade it would not surprise me if they actually did it.

I think it's a good long term move for them and wish the U.S. would do something similar.

elaine 1970

before we buy everything from china. now china can buy u.s. government.

Morgan1878

I think in 25 years, the government of China will be more like the government of the U.S. Not because they bought it, but because the country will become more democratic as Chinese citizens prosper.

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John the Jute

Hmmm. $80 billion. Gold is valuable but that's still a lot of gold--more than 2500 metric tonnes--more than is dug out of the ground each year.

The paper gold market is huge--probably more than $2 billion dollars a day--but most of that is money going round in circles. The market for actual physical gold is surprisingly illiquid, as the chairman of Goldcorp found when he tried to buy just over 1 tonne of physical a few years back:

http://www.onlygold.com/Articles/ayr...r_18_2002).asp

I don't doubt the senator's primary concern--that China fears US inflation and is diversifying its reserves--but I don't think his headline statistic holds up.

Later,

John

davemac

the germans are sarting to sell gold at vending point'r at areport's and their rolling them out no shorted of gold in germaney

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Morgan1878

Based on an analysis by the world's largest Swiss bank, it's likely that China won't buy that much gold..for this reason:

To have 10% of its assets in gold, China would have to buy the equivalent of two years of the total world production of gold. Doing this would drive the price of gold up, but it would depress the value of the dollar holdings that China has. In other words, they would be depreciating the value of their total holdings by converting too many dollars too fast. In the stock market, this is called "bidding against yourself".

It's more likely that China will convert and re-allocate dollar holdings slowly into other currencies and commodities (including gold) to soften the effect on the value of the dollar-denominated holdings they own.

I know the gold bugs on the forum are looking for the big & fast spike upwards in the price of gold, but be aware that any big move has negative implications for most of the central banks and they will do their best to avoid these sudden jolts.

I think the price of gold & silver will continue to rise, but slowly and in an orderly way that will not cause alarms to go off.

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kevcoins

they can buy it from HSN

elaine 1970

what about $8 billion of gold each year for 10 years?.