State of the Gold Prices and World Affairs

Just scouring the web for the opinions of everyday people. On Pricedingold.com, these gems are found in (http://pricedingold.com/us-retail-gasoline) comments:

February 28, 2012...FASCINATING @ 10:34 am

I can't imagine paying $5.00 even in debauched dollars – $0.15 in pre Nix currency. Right now $4.00 per Gal it makes sense for me to consider to get on my bike and pedal 20 blocks to my Chevy Volt parked by the charging station. Situation being – Ossified (possibly conflicted) Con Edison Management dragging its feet in installing charging stations on residential streets. Ain't that cooked yet. Remember 16 Kw battery is 40 miles of fun or work or Etc. Then you run the gas engine just for nostalgia.

March 27, 2012...FASCINATING @ 8:26 pm

I Think Debauched Dollars are one part of the blind men's description of the gas prices Elephant.
Another are Planet Saudi Arabia is BSing about its pumping proves. And G. Sucks an Morgan Sucks are colluding (or at least enabling) Russians ( The oil is their major reason for growth) and Oil Companies (Half of British Retirees depend on BP's payouts) to ride World's growing dependency on what is a finite resource. Go electric. There definitely are no wires between Middle East and US. The utilities are regulated and electricity is definitely not a finite resource.

Queen's Gold and Crystal Polymers

The Atlantic Bank reports that the Queen fixed the crown price at $1056.20, up $0.45 from the price the crown sold for the past 2 months. The fact that the price ends with a zero indicates that at the time of the fix the gold demand in the country was going through a transition, or was equal the supply. Price ending with an odd digit signifies an upward trend, and an even digit indicates a downward trend.

The price for a troy ounce, meanwhile, has crept closer to the crown, set at $828.80, while the crown price for the troy ounce is $869.11. Platinum crept up to $1526.00, as traded by the Atlantic Bank.

Yesterday's assassination of Benazir Bhutto added to the sense of the instability in the region, since Pakistan possesses a nuclear weapon.

The Atlantic Bank's Dollar certificates continue to be traded at their high face value, and that remains the only opportunity to profit from the declining dollar.

Kronborg Industries is unfazed by the falling of the dollar, and has announced the release of its new line of monitors and displays. The long awaited Omni-Directional Interactive monitors based on Koborg's crystal-impregnated space-age polymers has been shipped to the major US distributors. The monitors incorporate the classic 3-D Information features, and now offer the layered interactivity.

Euro-Dollar Pair To Dive

Written by Jamie Saettele, Currency Analyst: It is still possible that the EURUSD challenges congestion near 1.4452 before the pair reverses and drops to a new low (below 1.4330).  However, the EURUSD may drop below 1.4330 without first challenging 1.4452 and complete wave C (and larger wave 4) of the A-B-C decline from 1.4967.  A potential terminus for the decline is where wave C = wave A at 1.4309.  The next 5 to 6 weeks should see larger wave 5 exceed 1.5000.

Higher gold prices need of the hour to boost recycling in the Middle East

12/16/2007 07:32 PM | By Naushad K. Cherrayil http://archive.gulfnews.com/articles/07/12/16/10175139.html Dubai: Gold prices will need to return to levels close to $850 to encourage a further surge in gold recycling in the Middle East, GFMS's latest report said. "With gold pushing through $800 in early November, this sharp rise was expected to have provided the impetus for a hood of recycled gold from Saudi Arabia, the world's largest supplier of scrap last year. "However, this has not been the case, with scrap fows from the Kingdom surprisingly weak in the second half of this year," said Cameron Alexander, an analyst at GFMS. Year ahead Looking ahead to the next year, he said it is unlikely that Saudi scrap gold volumes will return to 2006 levels unless a higher gold price is achieved. The resultant slump in jewellery consumption would likely encourage a portion of retailers to take advantage of record prices and liquidate their holdings. "Consider that average scrap volumes were over 30 tones per quarter in 2003 globally but, so far this year they have fallen to under 20 tones on average," Alexander said. Similarly in the Middle East, the reaction to the rise in the metal prices has been controlled, with scrap supply supported by the distribution chain unloading slow moving inventory rather than individuals of loading gold assets, as was the case for much of 2006. "Several dealers in Saudi Arabia involved in the scrap market said they were perplexed at the lower volumes of scrap currently being returned to local gold souks in spite of a 27-year high for the gold price," he said. Trend: Dubai scenario Demand for jewellery in Dubai has been modest with consumers buying solidly on dips in prices. But right now they do not appear selling, or exchanging jewellery, with the expectation of higher prices on the horizon, GFMS's report said. The most simple explanation of this appears to be that, as expectations of higher (and ever higher) prices have taken hold, consumers have reduced the amount of old jewellery they are willing to sell back. Report says the rise in the gold price, even in euro terms, obviously features but its direct importance should not be overstated.

Dumb Money Dumps Gold

Alex Roslin at cotstimer says:

Turns out the "dumb money" small traders in gold derivatives have thrown in the towel. The latest data shows their net long position falling to a bearish extreme as a percentage of the total open interest in gold futures and options.

What does that mean in layperson's terms? The folks who tend to be positioned the wrong way in the markets believe gold has topped, and they're selling it. That means my system based on trading opposite to the small traders in gold has just flashed a renewed bullish signal for Canadian Gold iUnits (symbol XGD). (See the table below for more details.) Personal disclosure: I've been long XGD since this setup flipped to bullish back in May. I found in my research on the past COTs data that the best way to trade XGD was to fade the gold small traders.

However, not all markets work the same. My research also found it was best to trade on the same side as the "smart money" gold commercial traders—these would be the gold miners—for bullion itself as well as the HUI Gold Bugs Index and USERX U.S. Gold Fund. That's just the way this fascinating data works.

And these three latter setups flipped to bearish in the Sept. 25 COTs report due to extreme pessimism on the part of the commercial traders. Since September, the commercials have steadily reduced their large net short position to the point where my gold and HUI setups have just gone to neutral (zero) for the first time in nearly two months. Of course, the commercials are still far from actually getting to the point where they'd flip my setups to bullish.

In silver, the "dumb money" small traders have bumped up their net long position a fair amount since the previous COTs report. Now, they're just slightly negative about silver's prospects compared to the historic data. My silver signal remains solidly in the bullish column, where it's been since July. (Disclosure: I've been long SLV iShares Silver since that signal started, too.)

The action in copper since September has been quite depressing if you happened to be a bull. Since my copper setup gave three renewed bearish signals starting in the Sept. 25 COTs report, copper is down about 15 percent. Yikes. With the latest COTs report, my copper setup still has a bearish tilt because the "dumb money" large speculators—the big investment firms and hedge funds—are still fairly bullish by historic standards. This, despite the dramatic selloff! It makes you wonder how these folks stay in business. Oh yeah, that's right. Commissions, management fees, tax loopholes, offshore accounts. Almost forgot.

And what of the beleaguered U.S. buck? Do the COTs give any hope for the poor greenback, so crushed and unloved? No, sorry, they don't. In fact, the "smart money" commercials in U.S. dollar index futures have again reduced their net long position—their seventh straight such move. My dollar setup, already on a bearish signal since way back in Oct. 2006—when the dollar's latest downtrend started—now has a decidedly bearish tilt.

For more details and signals from my setups for equities, energy, the Treasuries, currencies and agriculture, visit my free blog COTsTimer.Blogspot.com. Good luck this week.

No Need to Go To The OPEC Meeting

The Queen's policy seemed to have worked, or even paid off when today's OPEC meeting turned out to concentrate on the problem of non-OPEC influences on the price of oil. Instead of the organization's mere discussion of raising or lowering production quotas, the oil demand by India and China turns out to be a more significant driving factor behind the prices.

The weakened US economy, with its chain-reaction effect on the dollar, and subsequently, the OPEC's member countries currencies pegged to the greenback does not bode well, neither the prospect of milking out an additional million or two per daily quota.

For those who remember the alleged SCS (the name is still media-defined) report that Russia's Putin was overheard discussing with Iranian and Venezuelan dictators the manipulation of world politics as a means to control the price of petroleum. Who heeded the report? The US administration is still hiding its head in the sand, or sticking to the lily-livered castles of the globalization, or its intelligence community is doing all of the above plus singing to the tune of the late CIA Chief Casey's "There are no Kremlin moles in the CIA."

The Queen was right in establishing the interim U.S. dollar as the currency for Attland, which was a prelude to the gold standard. That plan turns out to have saved us from worrying about the falling US dollar, the rising cost of petroleum and gold.