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If You Own Gold, You Must See This Chart…
Money Morning ^ | 10 July, 2013 | Keith Fitz-Gerald

Posted on 07/10/2013 7:26:11 AM PDT by Errant

What I'm about to say will challenge even the most steadfast gold bears - or anyone for that matter right now who thinks that gold has seen its better days.

The chart below tells a story - a big story. In fact, I encourage you to forward this email to anyone you know who serious about his money.

What I found here, with the help of Frank Holmes from U.S. Global and one of the smartest people on earth on the potent combination of Asian markets and commodities, is a chart that shows a truly astounding fact about gold.


(Excerpt) Read more at moneymorning.com ...


TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: china; dollar; economy; gold; goldchart; goldprice; worstexcerptever
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Very interesting chart. I'm reminded of when the Islamist countries also purchased massive amounts of gold in the past, only to have their investment incur massive losses.

However, this was before QE and the Derivatives Market.

1 posted on 07/10/2013 7:26:11 AM PDT by Errant
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To: Errant

Hope they’re right. I just bought another $500 worth according to my plan. Got some low prices and will get the payoff if it goes up. Hope it does.


2 posted on 07/10/2013 7:31:28 AM PDT by cotton1706
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To: Errant

The bottom of the ocean is littered with ships and they all had charts.


3 posted on 07/10/2013 7:33:31 AM PDT by BobinIL
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To: cotton1706
I've seen numerous articles claiming the production price of getting gold out of the ground, now exceeds spot price.

In my case, I own a little gold for the insurance value, and believe PMs an important part of any portfolio - especially to meet a goal of being diversified.

4 posted on 07/10/2013 7:36:50 AM PDT by Errant
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To: BobinIL

Really. Was it the chart or the storm which sent them to the bottom?


5 posted on 07/10/2013 7:38:07 AM PDT by Errant
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To: Errant

Gold price goes up, cost of living goes up. Damn near a wash but probably better than interest in any banking institution. What is really the problem is the economy has tanked, only a question when it crashes.


6 posted on 07/10/2013 7:42:10 AM PDT by Logical me
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To: cotton1706
I don't understand this whole deal. Out of curiosity;
If I buy gold, where is it?
If paper money goes worthless, how would I spend gold?
If I went to buy something with gold would I get change in gold?

7 posted on 07/10/2013 7:44:20 AM PDT by Baynative (Lord, keep your arm around my shoulder with your hand over my mouth.)
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To: BobinIL

“The bottom of the ocean is littered with ships and they all had charts.”

I love that statement.


8 posted on 07/10/2013 7:45:24 AM PDT by Verbosus (/* No Comment */)
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To: BobinIL

“The bottom of the ocean is littered with ships and they all had charts.”

Great line. I’ve never heard that one before. Did you make it up? Just want to know so when I use it I can quote you!


9 posted on 07/10/2013 7:54:18 AM PDT by edwinland
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To: Baynative

And I’ve always wondered why gold sellers are so eager to take in your ‘devaluating’ currency for their valuable gold?


10 posted on 07/10/2013 7:56:54 AM PDT by Right Brother
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To: Errant

The Golden Backwardation Rabbit Hole Gets Deeper: Subzero GOFO Slide Accelerates
Yesterday we described the historic inversion in the Gold Forward Offered Rate, where the 1 and 3 Month GOFO rates sliding into negative territory for the first time since 2008 and 1999 respectively. Today, using the latest LBMA rate update, we observe that the gold backwardation is accelerating, and now the 6 Month GOFO has also joined the complex into sub-zero territory.

http://www.zerohedge.com/news/2013-07-09/golden-backwardation-rabbit-hole-gets-deeper-subzero-gofo-slide-accelerates


11 posted on 07/10/2013 8:02:47 AM PDT by Rusty0604
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To: Baynative

You want to buy physical gold. Coins and bars are your best bet.

Paper? That’s all it is.


12 posted on 07/10/2013 8:05:09 AM PDT by unixfox
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To: Baynative

If you buy bullion or coins, it’s in your hand or in the bank. If you buy gold stocks or something similar, you’re investing in the gold market.

Gold has always had value and always will because it does not rust away or disintigrate. It is as inert as lead. Bury gold in the ground or throw it in the sea for a thousand years and it can be retrieved good as new. It is also the best of conductors.

And gold holds it’s value. A one ounce gold coin in ancient Greece would buy a nice toga, a good belt, and a good pair of sandals. Today, a one ounce gold coin will buy a nice suit, a good belt and a good pair of shoes. It’s value has fallen only slightly as more gold has been found.

Gold has been used as a medium of exchange since time began, while paper money fluctuates when compared to something of real, tactile value. For example, in the Confederacy, the paper money became worthless only because nobody would accept as an exchange for something. People will always accept gold because it can be retraded for something else.


13 posted on 07/10/2013 8:07:51 AM PDT by cotton1706
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To: Errant

Sometimes the 2 bottoms connect also!


14 posted on 07/10/2013 8:09:30 AM PDT by US_MilitaryRules (Tastes like Heaven, Burns like Hell! Mmmmmm. What is it?)
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To: US_MilitaryRules
When that happens, is it usually the fault of the chart?

Investing isn't for everyone, same as steering a ship through a storm or dangerous waters.

With a third of the people in the US now receiving food assistance, might the chart serve as food for thought?

15 posted on 07/10/2013 8:16:28 AM PDT by Errant
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To: Baynative

1. Your gold is in your pocket, or the cookie jar, or the safety deposit box. You decide.
2. You spend gold as it has been done for centuries: trade it for what you want.
3. You could get change in gold, or in silver, or in some other commodity. Or the merchant can run you a tab, or bill from a prepayment, or may give you change in old money at the current value rate.

Same as throughout the history of civilization.


16 posted on 07/10/2013 8:19:42 AM PDT by Atlas Sneezed (Universal Background Check -> Registration -> Confiscation -> Oppression -> Extermination)
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To: Right Brother

The same reason that druggies often sell - to pay for the acquisition of what they want at better volume prices.


17 posted on 07/10/2013 8:39:33 AM PDT by Aevery_Freeman (We say "low-information" but we mean "low-intelligence")
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To: Errant
"Really. Was it the chart or the storm which sent them to the bottom?"

Or maybe a fool Captian that read the charts and weather report wrong.

18 posted on 07/10/2013 8:42:20 AM PDT by mosaicwolf (Strength and Honor)
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To: edwinland

I got it from a guy on Agtalk


19 posted on 07/10/2013 8:47:13 AM PDT by BobinIL
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To: mosaicwolf

Rarely the case - more often a mistake of your position in relation to danger through ignorance / negligence.


20 posted on 07/10/2013 8:52:35 AM PDT by Errant
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