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The BRITISH take on the GOLD market TODAY is worth your time to read...HS

HistoryStudent

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London Gold Market Report from Adrian Ash
(vronsky) Apr 14, 18:48

Case for Gold "Positive" as Fed Promises "Low Rates for Extended Period"

THE PRICE OF GOLD held onto a volatile 1.3% gain vs. the Dollar on Wednesday, rising to $1160 an ounce after Federal Reserve chairman Ben Bernanke vowed in congressional testimony "that very low, extremely low rates will be needed for an extended period."

The Dollar fell to a 4-week low vs. the Euro and hit a 7-week low against the British Pound on Bernanke's comments.

Gold for Eurozone and UK investors fell back towards Tuesday's 1-week lows.

"The investment backdrop for gold remains positive [for 2010] on zero to negative real rates of interest in all major currencies," said GFMS chairman Philip Klapwijk at Wednesday's London launch of the independent precious-metal consultancy's Gold Survey 2010.

Worsening concerns over sovereign debt – perhaps spreading to the US from Europe – also look set to support the case for gold investment this year, Klapwijk said.

"Inflation expectations" will add to safe-haven buying, he went on, "especially with this year's $1.6 trillion US deficit and the increasingly likely return of debt monetization" – a.k.a. quantitative easing.

GFMS's data for global gold supply and demand in 2009 show jewelry buying fell by almost one-fifth from 2008, while "scrap" jewelry jumped to a record 39% of global supplies.

"The Western jewelry market has seen a massive mobilization of scrap," said Philip Klapwijk, pointing both to last year's then-record high prices as well as new mechanisms for selling metal such as Cash4Gold.

Forecasting a "possible" spike to $1300 an ounce in the second-half of 2010, "It's difficult to see how we can avoid a hefty drop in prices if we want to boost jewelry and trim scrap to bring the overall market back into equilibrium," he went on.

"We're certainly in the end-game now, although that could still take a year or more to play out."

BullionVault analysis of the GFMS data, however, sees the near-doubling of gold investment demand in 2009 as showing that gold is being remonetized by private individuals – a trend that will only accelerate as the real returns paid-to-cash remain below zero worldwide.

Massive supplies of scrap jewelry, mobilized by cash-strapped households, are being more than matched by investment demand according to GFMS's presentation today. That literally converts gold-metal from a trinket to a store of value.

Western central banks are behind the curve here, only just suspending their sales programs in 2009, let alone adding to their monetary stockpiles. Emerging-Asia authorities, in contrast – and like their citizens – are increasingly strong buyers, with India and China leading the world in private-plus-public sector demand.

Adrian Ash
BullionVault



IMVHO I think we will seee a GREAT spike soon maybe to a doubling by next November. But, that's what I see in the charts and the M3 secretly being made.:five:

:36_2_36::36_2_36::36_2_36:

Tread softly and accumulate ASAP....

Old "Vera Cruz" movie me LIKE BURT LANCASTER type saying:

"Three million dollars for us three is not enough - ME I'M A :eating: PIG!" :haha:
 

andial

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Sorry to impose History . I was just looking for a place to put two charts on a page to look at.
 

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#3
IMVHO I think we will seee a GREAT spike soon maybe to a doubling by next November. But, that's what I see in the charts and the M3 secretly being made.:five:

:36_2_36::36_2_36::36_2_36:

Tread softly and accumulate ASAP....

Old "Vera Cruz" movie me LIKE BURT LANCASTER type saying:

"Three million dollars for us three is not enough - ME I'M A :eating: PIG!" :haha:
That's very bullish and scary at the same time HS. How much is a loaf of bread going to cost with gold @ 2500 FRN?
 

andial

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WOW! If that is on time as in history, we could go para very soon!
I'm matching the September 1976 low with the September 2008 low. JMHO
 

HistoryStudent

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:eating:
Sorry to impose History . I was just looking for a place to put two charts on a page to look at.
Purr-fect LIKE the PIG said in ME. :eating: the DOUBLING.

220 to 440 ... 1978.... :five: