Europe and Gold

[ShoeshineBoy]

All you gold standard peoples will love this story. Apparently a lot of European banks pulled the most boneheaded of all investment decisions and sold low with gold. They lost their stiff-necked shirts you might say.

And, interestingly enough, the British Central Banker who came up with that bright idea for his country is now paying for it in the news machine apparently:

http://www.thestreet.com/s/european...th-gold/newsanalysis/investing/10389471.html?

Btw, the US has held onto its gold, which is one of the rare times you'll ever see the US government do anything intelligent with significant foresight. But total holdings are very low you will note compared to the economy as a whole...

 

[9999]

BankItalia wanted to do the same a few months ago.
Thank God they changed their mind.

 

[dtan1e]

thks for the scoop, i was going to say now they make him prime minister but the article beat me to it

 

[orange_trad]

Yet another sensational news article. But its full of holes: CBs don't 'trade', CBs sold gold while it was going UP (except the British), (European) CBs are interested in price stability not trading gains, the Dutch didn't bring that much gold into Europe and even the Spanish did it half a millenium ago (I know its a timeframe hard to comprehend for an American) and not even close to the scale CBs sold gold in the past couple of years, and the biggest hole of all: who did actually predict a gold rally in 2003 or 2004 to $800+ levels? Everybody is such a wiseacre AFTER the rally. But can this journalist tell me where will gold go in the next 5 years?

 

[orange_trad]

Oh, I almost forgot: in euros (XEU in earlier times) gold in the past 7 years went up at an average 15% per annum as opposed to 40% measured in USD. I mean if you had USD in 2000 you would definitely be better off today investing in the European currency than in gold. What did CBs do in Europe for the last decade? Yeah, I know, coincidence...

 

[prophet2012]

Quote from orange_trad:

CBs are interested in price stability not trading gains, ?

To bad the central banks have now lost control of price stability in regards to Gold and the dollar. If what I am seeing continues, the fiat games is over. The problem is you have Jay Z and Giselle Bundchen promoting they are no longer accepting dollars for their salary. They are promoting this to the sheep on shows like Inside Edition. As a hospital administrator I find it concerning that 10 doctors and 5 nurses have walked into my office demanding they no longer be paid in the declining dollar. I have also overheard many doctors discussing what internet sites they are buying their gold from. The bottom line is the dollar is screwed and the sheep are actually now looking for a alternative. Maybe Gold will be the next bubble.

 

[orange_trad]

The Fed is 1 CB not all. Why would European CBs want to control the dollar? Its the Fed's job (supposedly). Gold is not out of control. The Fed is.

 

[drsteph]

Quote from prophet2012:

To bad the central banks have now lost control of price stability in regards to Gold and the dollar. If what I am seeing continues, the fiat games is over. The problem is you have Jay Z and Giselle Bundchen promoting they are no longer accepting dollars for their salary. They are promoting this to the sheep on shows like Inside Edition. As a hospital administrator I find it concerning that 10 doctors and 5 nurses have walked into my office demanding they no longer be paid in the declining dollar. I have also overheard many doctors discussing what internet sites they are buying their gold from. The bottom line is the dollar is screwed and the sheep are actually now looking for a alternative. Maybe Gold will be the next bubble.

Wow. Physicians and nurses trying to get out of the USD.

I would rate that tell as good as the hot internet stock tip you would get at a party back in '99.

"Yours, sir. Your amount."

 

[Hydroblunt]

Quote from prophet2012:

The problem is you have Jay Z and Giselle Bundchen promoting they are no longer accepting dollars for their salary. They are promoting this to the sheep on shows like Inside Edition. As a hospital administrator I find it concerning that 10 doctors and 5 nurses have walked into my office demanding they no longer be paid in the declining dollar.

I'm sorry, but these people are just stupid.

If you are actually concerned about the dollar, the last thing you want to do is make it public for everybody else to know. You take the dollars and convert it quietly. PERIOD.

If I were the hospital administrator, I would tell those genius doctors & nurses "Sure, no problem". I would then take their salary in dollars, convert it and charge them a HUGE fee for the service. Same goes for Jay-Z and that airhead Giselle.

I would not be surprised to see the dollar bottom out vs the other currencies (they are all fiat, anyway).

 

[ShoeshineBoy]

Quote from orange_trad:

CBs are interested in price stability not trading gains

Good points.

You lost me on this tho: price stability of what? How did selling gold bring price stability?