“Also gold has failed to reach a new high in the other currencies. ”
Does that not demonstrate the dollars weakness then?

“I say we’re ripe for a dollar rally very soon, no thanks to Timmy”
Perhaps then, the gold high in other currencies will be set, like it was in EUR early this year?

“This is deflation and gold will be strong, but the moonshot talk is all inflationista delusion. $1100+ was a good strong stab higher.”

If gold is not a commodity, whose value, measured in dollars, would decline during dollar-appreciation (=deflation), but rather if gold IS money (as it was for about 98+% of history), then should it not increase in value during money*appreciation (=deflation)?

Things above money on Exter’s pyramid decline in deflation, the lowest layers appreciate…
Though I do not know where to lump the layer+1 above money (T-bills, bonds, etc), they should decline too, but will they? Or will the sheep treat them, as so often before, as (better than) cash-equivalents, thus shuffling the layers?

My $0.10 (the copper-clad kind)

I say we’re ripe for a dollar rally very soon, no thanks to Timmy.

This is deflation and gold will be strong, but the moonshot talk is all inflationista delusion. $1100+ was a good strong stab higher.

…rents are dropping all over the USA. This is not the 70’s.

http://www.cnbc.com/id/33883098

http://www.cnbc.com/id/33888348/

Meanwhile UK and especially Japan are in basket case debt load territory.

The dollar crash is against gold. No way can the dollar crash against these other garbage currencies.

Rich:
“That there are so many gold vehicles should be warning enough that even with a parabolic spike, gold may have come a long way”
If only 20% of the demand for gold that was met by these vehicles, and thus had not been diverted away from the real thing, where would the price be now?
That is ultimately the bottom line when it comes to the allegations of many of these vehicles being naked, though they claim not to be.

This is also true for unallocated storage.
If the contango in a future reflects (in part) the storage and other costs (and gold is not in backwardation yet) being borne now by the writer of the future (long), then how can allocated storage be completely free, unless those allocated accounts actually are naked, as alleged?

IMHO, even if the demand for gold were to collapse by 50%, but all remaining went into the physical only, then we would not be at 900-1100.

Like with JPM and the restitution they paid for storage fees on silver which they never bought nor stored some years ago.

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Submitted on 2009/11/12 at 4:02pm

Leveraged geometric compounding to zero….

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Submitted on 2009/11/12 at 4:36pm

Time to fade Crazy Cramer?
How he learned to stop worrying and love gold:
He says strong gold and a weak dollar are good for business (if not lenders, savings, budget and trade deficits, buying power and the middle class – so long Lou Dobbs).
He says high gold prices mean deflation’s not a threat (or high real interest rates and defaults either?)
He says higher gold prices mean earnings and price recovery (like CIT?)
He insists gold and oil do not compete with equities (or leveraged ETFs?)
And the coup de grace? GDXJ, which he says is small gold miners (over $500 M is small? – wonder what Chuck thinks)
He concludes gold is good. Two legs bad, four legs good, two legs better anyone?
Straight out of Animal Farm and 1984 Doublespeak.
If gold is good, where is WEB?
Out buying BNI coal for Christmas.
Meanwhile, BHOs about to have a Jobs Summit after new claims dropped four weeks. As if government can add anything to the GDP…

http://www.cnbc.com/id/33829650

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Submitted on 2009/11/12 at 4:48pm
$1122 Peak Gold?

ABX short-squeeze capitulation buying back their million ounce hedge book for billions with equity dilution may be one key to understanding what’s going on with gold and Big Banks. ABX bought back maybe just in time for a powerful price peak, and now insist gold won’t go below $900. (It can.) Do we have the makings of another deflationary Aubrey McClendon CHK financial suicide with ABX?

http://www.cnbc.com/id/33875450

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Submitted on 2009/11/12 at 8:11pm

$TYX just broke out to new 3 month highs with the 30 year auction
http://stockcharts.com/charts/gallery.html?s=%24tyx
Look out below for the giant sucking sound of debt default implosion…

That AP story about the 10 states going deep into insolvency should be a wake up for all of the sleepwalkers still out there. This situation is getting more ominous by the day.

Mostly darkly amusing thing I read today: Bailing out California is the economic equivalent of bailing out France.