Posted on 11/17/2008 6:09:30 AM PST by TigerLikesRooster
Gold rush
(EXCLUSIVE)
The mainland is seriously considering a plan to diversify more of its massive foreign-exchange reserves into gold, a person familiar with the situation told The Standard.
Benjamin Scent
Friday, November 14, 2008
The mainland is seriously considering a plan to diversify more of its massive foreign-exchange reserves into gold, a person familiar with the situation told The Standard.
Beijing is considering changing its asset allocations during the financial tsunami in order to build up gold reserves "in a big way," the source said.
China's fears about the long-term viability of parking most of its reserves in US government bonds were triggered by Treasury Secretary Henry Paulson's US$700 billion (HK$5.46 trillion) bailout plan, which may make the US budget deficit balloon to well over US$1 trillion this fiscal year.
The US government will fund the bailout by printing new money or issuing huge amounts of new debt, either of which will put severe pressure on the value of the greenback and on government bond yields.
The United States holds 8,133.5 tonnes of gold reserves valued at US$188.23 billion. China holds gold reserves of just 600 tonnes, worth only US$13.89 billion.
Beijing's reserves could easily go up to 3,000 to 4,000 tonnes, Tanrich Futures senior vice president Colleen Chow Yin-shan said.
(Excerpt) Read more at thestandard.com.hk ...
Gold demand rises in Saudi Arabia
By Mariam Al Hakeem, Correspondent
Published: November 12, 2008, 23:42
Riyadh: There has been an unprecedented demand for gold in the Saudi market recently, with over 13 billion Saudi riyals (Dh12.75 billion) being spent on the yellow metal during the last two weeks.
Demand is expected to rise still higher as more investors turn to gold as a safe haven in the midst of the global financial crisis, according to market sources.
Sami Al Mohna, an expert on the gold market, said the trend had resulted in a substantial rise in the gold reserves of Saudi investors.
Since soaring to an all-time high of $1,033.39 per ounce in March this year, gold has plummeted 30 per cent.
Gold for December delivery on Monday rose $8.60 to settle at $726.80, roughly the same level at which it traded a year ago.
"Many Saudi investors see this as the right time for making investments in gold as its price is the most reasonable one at present," said Al Mohna.
Ping!
Time to cash everything out and buy gold?
But Messiah Obama says the gravy train is endless. This story needs repeating by republicans about how the Chinese wisely read our national plans : GWB/Obama/Pelosi.
MY OTHER COMMENT A FEW MINUTES AGO ON OTHER POST :Its not even taxpayer money. Where is this money coming from? Anybody in MSM ready to ask Obama? China? printing? Is their ANY end to it?
Time for President elect to drop that halo- and come down to earth and finally be asked a SERIOUS question..
Rumor has it that Iran is converting 75B of foreign reserves into shiny...
If you could somehow gather every scrap of gold that man has ever mined into one place, you could only build about one-third of the Washington Monument.
http://money.howstuffworks.com/question213.htm
You may consider buying now things you know you'll be buying in the future.
As an example. I just bought new tires and had my brakes on my truck re-done. Some people I know are buying food ahead.
The Chinese have always liked gold, and the Muslims have traditionally used the dinar, based on gold, as a form of currency.
Yup.
And it amounts to little more than about 1 1/4 oz per person on the planet.
Thing is, silver is estimated now to be in even shorter supply. When it gets used, it gets used, then discarded. Mirrors, photos, electrical components...
World inventories of usable and salvageable silver are in the range of 4-5 billion ounces, less than one ounce per person.
Good, it’s about time that Americans held American Government debt.
At least we owe ti to ourselves, rather than thugs who exert influence because of it.
Stock up!!
Inflation is raising it’s ugly head - very high.
For example, yesterday I was at the store and saw the Top Ramens ON SALE 5 for a dollar.
The same ones I stocked up a few years ago on when they were 20 for a dollar.
Also. I read that 2/3's of all the gold in circulation was mined in South Africa.
Obviously the US Government and Fed Reserve have come to the end of the line monetarily. The long going Ponzi scheme of government promises is getting busted. Simply they are broke and beyond bankrupt with no way out. I repeat...there is no way out of the mess they have created. Every man for himself.
My wife's cousin works for Blackwater. He was working in Kosovo for several years before going to Iraq. He told me that during the worst part of the war there the currency became bullets and toilet paper. Folks who hoarded gold couldn't give it away.
My wife’s cousin works for Blackwater. He was working in Kosovo for several years before going to Iraq. He told me that during the worst part of the war there the currency became bullets and toilet paper. Folks who hoarded gold couldn’t give it away.
Yes, I understand that, but I think a lot of folks buying gold don't.
Gold generally won’t help YOU survive a crisis, but it will help your WEALTH survive a crisis.
Yes, I understand that, but I think a lot of folks buying gold don’t.
People who have plenty of gold in a real crisis are likely to be using it to buy LAND, not groceries.
Oh, everyone will take gold - but if there's very little food then you're going to pay an ounce for a meal for your family.
I'd say that in truly desperate times (i.e. true survival situations) the people with the guns and bullets will be taking gold from those who don't. Like everything else, it is best to have a balance. Right now, an ounce of gold will buy you a decent pump action shottie and a good used handgun, plus a bit of ammo. 2 ounces will get you an AR, a handgun and a bunch of ammo. An ounce will buy LOTS of food.
Or silver, or the smaller denominations of eagles or other gold coins. Folks accumulating precious metals should remember that if someone else can't "break an ounce" (like being unable to break a 100), then the price of whatever they want WILL BE an ounce. Get those 1/10, 1/4 and 1/2 ounces coins, and lots of silver.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.