Comments on: Are U.S. and China Together on Gold?

By: Mitch

Mitch — Fri, 18 Dec 2009 01:34:21 +0000

Hey Rich,
Gold is in an eight year uptrend. Buy the dips doesn’t work? Wrong. 100% wrong. I don’t know what you read or pay attentiuon to concerning gold, but it certainly isn’t the experts I follow. Talk of a “gold bubble” going on now is ridiculous and has zero merit. Gold is an easy double or triple from here longer term. Either that, or the Dow is coming down to 1000.

By: rjal

rjal — Thu, 17 Dec 2009 22:56:39 +0000

Rick may well be correct in his thesis (he is imo) -the Central Banks hold a large portion of there paper-or pixel “wealth” in US dollars…They also know that the US dollar is “simply too debt ridden” to remain viable.

However, if gold rises too fast-it spooks all of them-as all there paper money is unbacked as well. If the dollar collapsed-it would be the end of all fiat money-and the other Central Banks are not prepared for that type of crisis (for a number of reasons) at this stage-so they defend the dollar and sell gold at critical junctures.

They are playing beggar thy neighbor-for as long as they can-but the key here is…
there is now “simply too much debt” and it must be defaulted upon and or inflated away.

EOM

By: OF

OF — Thu, 17 Dec 2009 17:22:41 +0000

You are absolutely right. I stopped bying physical at 700 Euro. China and the US don´t want to buy gold, they NEED to buy gold. What would I do? I would kick the market down until the weak hands go: aar you and your gold-bull is so full of the same…
Then I´d buy up the market still being bearish with words.
Until I feel fed and then I say, oops no more gold there? And the markets go ga-ga. actually, a bit like 1980, but probably all more extreme.

Only question remains: can they still rigg it? I bet yes. And surely hope so.

Question: how much of the market is the people-buy-gold-program of the Chinese to be?

By: Duffminster

Duffminster — Thu, 17 Dec 2009 17:22:31 +0000

I completely concur with these thoughts. I don’t think the Chinese fully understand the GATA story and that Gold should be trading above $5,000 right now.

If they did, they wouldn’t be dickering around with joining the Fed in trying to talk and manipulate gold down.

By: jonl

jonl — Thu, 17 Dec 2009 17:10:55 +0000

Good article. Always remember the Chinese will ultimately do what is in their own
best interest. The trick at times, is to figure out what that might be.

By: Rich

Rich — Thu, 17 Dec 2009 16:07:22 +0000

Still looking for another Goldilocks Bear.
Most here still in the buy gold and stock on dips mentality. Ouch.
Re Chinese impervious power, in 1989, invincible Japanese Ascendancy was the myth after they bought Pebble Beach and Rockefeller Center. In less than a decade Japan defaulted and were out, having begun two lost decades because they refused to let big banks go bankrupt, a lesson for the USA. Expect similar to happen with China. Liberty an invigorating market tonic, which Ds may discover if they do not stop big government takeovers of energy, healthcare and technology in the next 10 months and are deselected in 2010…

By: David

David — Thu, 17 Dec 2009 16:04:00 +0000

When China made their comment that gold was in a “speculative frenzy” I remembered thinking, “there is no way they believe that. This is just a way to drive gold down so they can buy more.”

Daman posted this comment previously that I agree with wholeheartedly:

“The Government of China may say and do something for public consumption but they will never reveal their true state of mind.”

By: CHuck Griffiths

CHuck Griffiths — Thu, 17 Dec 2009 14:56:37 +0000

An interesting take. Gold lowering raises the dollar. That is our QUID PRO. What I can’t see is China’s QUO?

By: Jeff Kahn

Jeff Kahn — Thu, 17 Dec 2009 14:22:26 +0000

I have no doubt China is talking down gold to be able to buy it lower. That may or may not be the reason gold has corrected a reasonable amount after a steep run up. There’s almost always good reasons for any move in any market – in retrospect. The trick is keeping you eye on the big picture. And the fundamentals for gold are what count over time. Jawboning does not quality as a fundamental. Neither does the manipulation of statistics.

By: coolsaint

coolsaint — Thu, 17 Dec 2009 14:07:08 +0000

You may be correct ,however China is a net buyer of gold and the US ,who knows.Sooner or later these differences will emerge .Hence the threat the Chinese made in august about defaulting on some investments in the US . I suspect it had something to do with gold and silver futures .