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View Full Version : Central Banks are selling serious gold



phirang
10-10-08, 01:40 PM
... only thing explaining the decline.

grapejelly
10-10-08, 01:42 PM
the decline is in PAPER GOLD. Who has been the biggest buyer of PAPER GOLD?

Hedgies.

They are selling EVERYTHING.

jpatter666
10-10-08, 01:48 PM
Right now, looks like GLD at 83. It's getting hit pretty hard.

So you think this is hedge funds selling and not a CB defense? Why?

grapejelly
10-10-08, 01:59 PM
Right now, looks like GLD at 83. It's getting hit pretty hard.

So you think this is hedge funds selling and not a CB defense? Why?

they are selling everything to meet redemptions and raise cash.

idianov
10-10-08, 02:12 PM
Watch Morgan Stanley and GS. I think they need cash and just made a Margin Call to hedge funds!

Milton Kuo
10-10-08, 02:35 PM
The bid and ask prices for gold in the Zurich vaults at BullionVault are quite high at the moment: $870 bid, $917 ask. The spot price is currently $840!

Contemptuous
10-10-08, 06:05 PM
Milton -

That's why I prefer Goldmoney to BullionVault. You can buy the metal at a fixed (approx.) 3.5% percentage over spot rather than BullionVault's more limited internal member only "bid" or "ask" spreads. At GoldMoney today, this works out to approx. $876.00 / oz with gold at $847.00 spot. Plus there is no worry that on any crisis day you may not have a ready buyer within that vault's internal pool of members because you are selling your bullion straight back to the vault itself. That was the factor that made me choose Goldmoney over Bullionvault. Plus they are in the Channel Islands rather than in the UK proper as a jurisdiction (not that that part amounts to much).

Gold price at $847.00 per ounce. COMPARISON SHOP

Bullionvault price today (and is this even net of trans. costs?) = $917.00 (!??)

Goldmoney price today - confirmed net of trans. costs = $876.00

In my book James Turk's GoldMoney wins, hands down. Plus they buy the bullion straight back from you unconditionally - any time - 365 days a year. For James Turk to stick to his 3.5% commissions over spot in this environment denotes a high confidence attribute IMO.


The bid and ask prices for gold in the Zurich vaults at BullionVault are quite high at the moment: $870 bid, $917 ask. The spot price is currently $840!

*T*
10-10-08, 06:17 PM
Well it is the weekend, so to expect great liquidity in a market like bullionvault is a bit unfair. But it is a huge arbitrage -- if the futures market actually makes delivery.

I imagine the sudden drop at close is longs squaring up for the weekend. Or people are pricing in default. Depends whether you believe markets are efficient I suppose.

Also, BullionVault is HQ'd in Hammersmith, just up the road from me, so I can always pay Tustain 'a little visit' :p

dbarberic
10-10-08, 06:18 PM
http://www.ft.com/cms/s/0/f565b702-949a-11dd-953e-000077b07658.html?nclick_check=1
Central banks all but stop lending bullion

By Javier Blas in London
Published: October 7 2008 21:44 | Last updated: October 7 2008 21:44

<SCRIPT language=javascript type=text/javascript>function floatContent(){var paraNum = "3"paraNum = paraNum - 1;var tb = document.getElementById('floating-con');var nl = document.getElementById('floating-target');if(tb.getElementsByTagName("div").length> 0){if (nl.getElementsByTagName("p").length>= paraNum){nl.insertBefore(tb,nl.getElementsByTagNam e("p")[paraNum]);}else {if (nl.getElementsByTagName("p").length == 3){nl.insertBefore(tb,nl.getElementsByTagName("p")[2]);}else {nl.insertBefore(tb,nl.getElementsByTagName("p")[0]);}}}}</SCRIPT>Central banks have all but stopped lending gold to commercial and investment banks and other participants in the precious metals market, in a move that on Tuesday sent the cost of borrowing bullion for one-month to more than twenty times its usual level.


(http://www.ft.com/cms/s/0/f565b702-949a-11dd-953e-000077b07658.html?nclick_check=1)

If the CB's are not lending, then their minions (JP, Goldman, etc) are not selling gold on the CB's behalf.