Take It To The Bank, Gold Is Going To Run!

August 1, 2009 Inflation, Physical Gold, Predictions No Comments

Take it to the bank, gold is going to run! Despite the media hype, this recession is by no means over. The U.S. government’s reckless quantitative easing policy is flooding the world with excess dollars. There is only one way the dollar can go, and that is down. Take it to the bank, gold is going to run!

If we learn nothing else from these times, we will learn that the derivatives markets started the financial crisis, but the U.S. government created the black hole that is the dollar and in so doing tipped the economy over the edge! We are being sucked into a world that none of us can even begin to imagine.

The beginning of this week looked like it would be a positive week for gold, but then the actual week unfolded and everything looked bleak for gold, because everyone knows that gold is a useless relic, the economy is turning around, debt is the answer to the financial crisis and government health care has worked everywhere it has been tried and it has provided better care and cost savings at the same time! NOT!!! I guess that would sum up Monday through Thursday, but then Friday rolled around. Somebody please shoot this gold dog, because it just keeps hanging around.

Black Hole That Is The U.S. Dollar Take It To The Bank, Gold Is Going To Run!

There Will Be Rallies, Some Dramatic, But The Dollar Is Going Down In the Long Run!

The week started out with positive news for the global economy and, oddly enough, it couldn’t have come at a better time for US Treasury Secretary Timothy Geitner and Secretary of State Hillary Clinton who had talks with China on Monday and Tuesday. Secretary Geitner had his bond salesman hat on and he tried to convince the Chinese to keep buying Treasury bills, notes, and bonds. This weeks US debt sales will included $130 Billion of T-bills, $42 Billion 2 year notes, $39 Billion 5 year notes, $28 Billion 7 year notes, and $6 Billion of TIPS.

Why the Treasury Department’s wunderkind, little Timmy, wasn’t trying to sell more bonds out in the longer durations with rates so low is beyond me. Maybe it is just me, or does little Timmy realize that the Chinese are too sophisticated to fall for that ridiculous ploy?

07272009 spot gold Take It To The Bank, Gold Is Going To Run!

Monday starts out wonderful in an attempt to prop up the dollar for the Chinese and by Thursday gold had been driven down and it looked looked like everything was going to be fine for the dollar and then Friday and the unemployment numbers came out and oops everything turned to pooh for the dollar. What a difference a day makes!

07312009 spot gold Take It To The Bank, Gold Is Going To Run!

Five days and all of the administration’s attempts at foisting the dollar on unwitting suitors, proved to be worth a big zero because by Friday, gold was right about where it started on Monday.

AU 5Dy SM Take It To The Bank, Gold Is Going To Run!

Draw a line from the close Monday to the close Friday and you will see a whole lot of sound and fury signifying nothing.

Everything is all about the dollar. The currently, for how long we do not know, nonpartisan Congressional Budget Office estimates the annual deficits under the administration’s spending plans will not drop below $633 billion over the next decade. On top of that it is predicting $9.1 trillion be added to the public debt. $9.1 trillion is the amount that little Timmy has to peddle, good luck! Publicly traded US debt, which excludes the deficits the government owes to itself in Social Security and other trust funds, stood at 41% of the total economy in 2008 and is projected to climb to 82% of the economy by 2019. That is an incredible figure that is totally unsustainable and should make everyone stop, think and ask why are our leaders are allowing this to happen. The answer is simple, it’s the only way they can bring America down to the rest of the world’s level and gain the control and power that they desire.

Destruction of the U.S. Dollar is the first step towards a global world currency and in order to keep the fiat currency ponzi scheme going, the central banks have to leave the paper dollar behind in order to promote the savior fiat currency which will be the global world currency. Enough said, let’s get back to how this effects gold, or I will have to rename this website Selldollarco.com!

NOW BACK TO GOLD!

Cenbank sales under gold pact well below limit: WGC

Wed. July 29, 2009

By Jan Harvey

LONDON (Reuters) – Official sector gold sales under the Central Bank Gold Agreement (CBGA) have totalled only 140 tonnes so far in the pact’s final year, well short of the maximum 500 tonnes allowed, the World Gold Council said.

France and Sweden are the two principal remaining sellers, the WGC said in an emailed statement on Wednesday, although the possibility exists for a further sale by the European Central Bank.

The 15 signatories of the pact, which also include the central banks of Spain, Germany and Italy, agreed in 2004 to limit gold sales to the market to 500 tonnes in any one year.

“With 140 tonnes of sales, according to our numbers, it looks like we have had over 100 tonnes less than was sold over the same period of last year,” said Barclays Capital analyst Suki Cooper.

“Given the current pace, it is likely this is going to be the lowest annual sales-per-quota year since the start of the very first agreement.”

It seems that the more responsible nations of the world understand what is going on with the dollar and they are protecting themselves by not selling gold! China on the other hand is acquiring gold at every opportunity and they, along with Russia, will be the main reason why, if the WMF sells gold to raise cash, it will have little or no effect on the price of gold in the market.

Take a look at this video which does a great job of explaining what gold’s roll in the monetary system has been since this nation was formed.

We are due for a big move in gold, not because I say it, but because the central banks have been devaluing the U.S. Dollar and gold is like water and will seek a level point in relation to the value of the dollar. Time is running out to take advantage of the trading opportunity that is being offered to us in both physical gold, silver and precious metals stocks.

Just like sentiment and emotion played into this weeks trading in the gold market. It is going to have a huge impact as we move forward in the 4th quarter 2009. Bubbles occur when there are few other investment choices or when one particular market trend becomes so obvious that it become a mania pushed higher by greed. We are living through the creation of the dollar bubble. When it goes bust we will be well into gold bubble and it will definitely last a lot longer than the dollar bubble. It will last until political sanity returns to the world or until after the chaos ends. Gold investing should be the only investing that returns principle and interest as the dollar bubble gets bigger.

So where are we now? As we leave this “feel good”, “every thing’s gonna be ok” phase of this general equities bear market, unemployment will continue to rise, more and more homes will be foreclosed on as the trouble spreads from the sub prime to the prime mortgage loans. The banks have huge derivatives positions that will ultimately have to be squared and the U.S. taxpayer will be buried under the massive debt that this administration is piling on the next generation and their grandchildren. Do not expect the U.S. Consumer to end this recession/depression.

Gold will, like water, seek it’s level as the currency devalues and the financial crisis moves into it’s next phase. Look at the Great Depression for an example. Anyone who bought on the relief rally did not recover their money until the early 1950′s and then only if they were invested in companies that survived the depression.

Gold Set To Run In The 4th Quarter Of 2009.

Gold is set to run at the US$1000 barrier and maybe after one more unsuccessful attempt it will launch into a significant rally which will punch it through. All you need to confirm this is to spend a couple of hours listening to what passes as news in America. This government can’t even run the $1 billion “cash for clunkers” give away and now they want to run 18% of the U.S. economy. Take it to the bank, gold is going to run!

Till next time, good luck and good trading!