Yessssss!!!! Gold Always believe in .... Gold, Your indestructible, GOLD!!!

[Letsbereal]

Jim Rickards – Monetary System Will Go Gold Soon
14 September 2011, by Eric King (King World News)
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/14_Jim_Rickards_-_Monetary_System_Will_Go_Gold_Soon.html

Excerpt:

“With the G20 coming up, Eric, I think they are going to dust off the SDR solution.  

The next time there is a major global financial crisis the Fed is not going to be able to bail out the world because they are out of bullets, but the IMF and the G20 will be able to print these SDR’s.

At that point the game really is over.  

It will be very transparent that we’re just replacing one kind of paper money with another kind of paper money and that is going to accelerate the rush to gold.  

As soon as people do the math, this is where you start to see these $5,000, $6,000, $7,000 an ounce price targets for gold.

That’s coming sooner than people expect.  

Some time in the next couple of years we will see that radical transformation of the international monetary system into gold.

----

My view is when I see the price of gold go down $100 I buy more. I say, ‘Here is a great buying opportunity.’  

----

Even if you apply only .5% to the kinds of trillions of dollars of investable assets that we are talking about, as I say there is nowhere near enough gold at anywhere near these prices to satisfy that kind of demand.”

[Letsbereal]

Embry - Institutional Gold Holdings Will Increase 12 Fold
13 September 2011, by Eric King (King World News)
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/13_Embry_-_Institutional_Gold_Holdings_Will_Increase_12_Fold.html

Excerpt:

“There still is so much counter-intuitive price action that you know the central banks are in there (manipulating gold).  

There is no question that at the time of the Swiss franc devaluation, when gold dropped on either side of the devaluation by over $100,

that was totally orchestrated because in a rational world the gold price, as the other safe haven, should have rocketed higher.

So it’s a healthy consolidation, but it’s also being helped by very aggressive central bank actions.  

The bottom line is this is orchestrated volatility for the expressed purpose of frightening all of those who do not fully understand the gold market.  

But if you understand it, you must use every bout of this weakness to continue to enhance your position, it’s a gift.

We had the $200 takedown and once we absorbed that, gold went and rallied back to the high.  

The (manipulators) are creating the image of a double top, leading people to believe that they can stop it at $1,900.  

I don’t think it’s possible, gold will just work this off and then surge to new highs.”

[Letsbereal]

The Gold fight of yesterday continues today with the gold manipulators driving gold down from the $1,830 level and now from the $1,840 level.

The gold manipulators are eager to let gold end lower today than yesterday to synthetically produce a declining trend instead of a rising trend in gold which is for real.

http://www.goldprice.org/spot-gold.html

[Jordan]

The Gold fight of yesterday continues today with the gold manipulators driving gold down from the $1,830 level and now from the $1,840 level.

The gold manipulators are eager to let gold end lower today than yesterday to synthetically produce a declining trend instead of a rising trend in gold which is for real.

http://www.goldprice.org/spot-gold.html

Good deal. Time to stock up again. I'm hoping they can push it into the low 1700's

[Letsbereal]

Good deal. Time to stock up again. I'm hoping they can push it into the low 1700's

From that perpective I help you hope. I think it was Faber who said that gold could have a pullback to $1,600 - $1,700 levels.

Try to find his exact quote but couldn't find it. Have this from Faber tough.

Marc Faber: Gold and Silver Will Drop Again, Prepare for Volatility http://www.youtube.com/watch?v=K85T5j-4JqI

But till now gold seems to hold the $1,800 level very well.

[Letsbereal]

Central bank gold intervention and gold buying http://www.youtube.com/watch?v=tCPQ5BW2F1c

Gold in the Middle East http://www.youtube.com/watch?v=G0aSXXMNnuU

Physical gold price premiums http://www.youtube.com/watch?v=1yLixiUNSAs

Gold price trend followers and accumulators http://www.youtube.com/watch?v=cT0vy--dabA

[DAVIDE MTL]

Wonder if anyone trusts buying their gold with Goldmoney,they keep the gold for you until you want to take possesion.

http://www.goldmoney.com/buy-precious-metals.html

Also in Canada there's

http://www.bmgbullion.com/bmgbullionbars/

[Jordan]

I'd just put it in GTU or SGOL

[Letsbereal]

Banks use gold to get dollar funds http://citywire.co.uk/money/banks-use-gold-to-get-dollar-funds/a524191

– European banks are rushing to use their gold to access much-needed dollar funding

- HSBC has been dropped from a lawsuit accusing banks of suppressing silver prices leaving JPMorgan Chase as the lone defendant

- Gold has been the most profitable investment vehicle since the collapse of Lehman Brothers, a survey shows


Ft.com Headline: “Banks use gold to get dollar funds”

(TIP: google the headline to read the whole article)

[Letsbereal]

Banks rush to lend gold to get dollar funding
15 September 2011, (GATA)
http://www.gata.org/node/10434

European banks are rushing to use their gold to access much-needed dollar funding, in the latest sign of the growing liquidity crunch for the continent’s financial institutions.

Gold dealers and analysts said that there had been a strong move to lend gold in the market in exchange for dollars in the past week, accelerating in recent days.

The rush has pushed gold leasing rates – the implied interest rate for lending gold in the market in exchange for dollars – to record lows, according to Thomson Reuters data.

The one-month gold leasing rate has plunged to a historic low of -0.48%, suggesting that a bank lending gold for one month would have to pay to do so, at an annualised rate of 0.48%.

Traders cautioned that few, if any, banks were likely to receive those rates, however, saying that they had been skewed by a widespread reluctance among bullion banks to take gold for dollars.

Large bullion-dealing banks take gold on deposit from a range of customers such as investors, central banks and other commercial banks.

Although they often lend out some of that gold around the end of quarterly reporting periods in order to reduce their liabilities, the latest move is unusually dramatic and highlights the stresses in the dollar funding market, according to bankers.

The banks do not, however, lend all their gold and some of it is held in accounts that preclude them for using it for trading.

Edel Tully, precious metals strategist at UBS, wrote in a note to clients that the drop in lease rates suggested there was a lot of interest in exchanging gold for dollars.

“Pressure on banks’ balance sheets in the last couple of months is exacerbating the usual end-quarter balance sheet-specific action,” she added.

The cost for European banks to swap euros into dollars has jumped fivefold since June, hitting the highest levels since December 2008.

The main reason for the spike is the demand for the US currency due to its growing status as a haven in the face of rising worries of an imminent Greek default that could spark a deeper sovereign debt crisis.

Traders said that the large volume of lending was one reason gold prices had struggled to achieve upward momentum, despite growing concerns over the eurozone crisis.

Spot bullion was trading at $1,818 a troy ounce on Wednesday, down 0.8% on the day.

It has fallen 5.3% from a nominal record high of $1,920.30 last week, although traders say there has been strong demand from Asian buyers whenever prices fall below $1,800.

“A sharp decline in lease rates over the past two days is theoretically bearish gold as holders seek to use bullion holdings to raise cash,” said James Steel, precious metals analyst at HSBC, in a note to clients.

“But it may also be a sign of distress which is supportive of gold.”

[Letsbereal]

IMPORTANT: THE ASIAN GOLD PUT:

“ There has been strong demand from Asian buyers whenever prices fall below $1,800 .”

[Letsbereal]

Yep, the Asian Gold Put is certainly there - just saw it happen http://www.goldprice.org/spot-gold.html

Oeps Gold just fell off a cliff ….. Now we realy can see if there's an Asian put ....

[Letsbereal]

Trump Just Accepted Gold Instead Of A Dollar Deposit On One Of His Properties
14 September 2011, by Alex Howe (Business Insider)
http://www.businessinsider.com/trump-to-take-real-estate-deposit-in-gold-bars-2011-9

[Letsbereal]

Gold and silver are the only constitutional money http://www.youtube.com/watch?v=JrL2cIeEUFM

Only gold and silver are legal tender http://www.youtube.com/watch?v=TK8uNmZMgr8

The gold clause cases http://www.youtube.com/watch?v=7T2-tIVd6tc

The end of Bretton Woods http://www.youtube.com/watch?v=RMJvDk2bKrQ

[Jordan]

Looks like I might get my wish today

[Letsbereal]

Looks like I might get my wish today

Faber said under the right conditions, there could be a pullback as high as 30%.

He cited the 40% drop in gold prices in the 1970s, where prices fell from 195 dollars an ounce to 105 dollars an ounce, although they resumed their upward climb to over 800 dollars an ounce afterwards.

http://marcfaberblog.blogspot.com/2010/09/gold-is-not-in-bubble-but-pullback-may.html

[Letsbereal]

Kiener Says Gold May Stabilize at `Five-Digit Levels' http://www.youtube.com/watch?v=kdD4dzkjXGw

Sept. 15 (Bloomberg) -- Juerg Kiener, chief investment officer at Swiss Asia Capital Ltd., talks about the global economy and his investment strategy.

Kiener speaks in Hong Kong with Susan Li, Phillip Yin, Zeb Eckert and John Dawson on Bloomberg Television's "Asia Edge." (Source: Bloomberg)

[Jordan]

Faber said under the right conditions, there could be a pullback as high as 30%.

He cited the 40% drop in gold prices in the 1970s, where prices fell from 195 dollars an ounce to 105 dollars an ounce, although they resumed their upward climb to over 800 dollars an ounce afterwards.

http://marcfaberblog.blogspot.com/2010/09/gold-is-not-in-bubble-but-pullback-may.html

It's already past 30% I'm hoping for 50%.  It bounced 50% about Aug 22nd? but did a head and shoulders which is where it's at now.

[Letsbereal]

What about leasing gold to raise dollars?
15 September 2011, by Myra Picache (MarketWatch - Blogs)
http://blogs.marketwatch.com/thetell/2011/09/15/what-about-leasing-gold-to-raise-dollars/

European banks have been lending out gold to raise U.S. dollars, according to a report from the Financial Times Thursday.

The move has sent gold leasing rates, the implied one-month interest rate for lending gold in the market in exchange for dollars, to record lows of almost -0.5%, FT said, citing Thomson Reuters data. The large volume of lending was likely one reason gold prices have struggled to achieve upward momentum despite the euro-zone crisis, the report said.

On the supply side,  bank interest in shorting gold to raise dollars is apparently strong, said Marc Chandler, global head of currency strategy at Brown Brothers Harriman, in a note. “On the demand side, the bullion banks are reportedly reluctant to take gold for dollars,” he said.

But it’s not clear why they’re reluctant, especially after Thomson Reuters GFMS officials on Wednesday forecast that gold would top $2,000 an ounce by the end of the year.  

Read more on GFMS forecast for $2,000 gold: http://www.marketwatch.com/story/gold-at-2000-before-year-end-risks-soft-patch-2011-09-15%20%5D

The erosion in gold lease rates indicates that it’s cheaper to borrow gold than dollars, said Chandler. And that’s not a reflection of the intrinsic value of gold or the dollar, but “rather another expression of the stress of the banking system and the pressure to secure dollar funding.”

Given all of that, Chandler said it’s “ironic” that a tenant in Donald Trump-owned building in New York will pay its security deposit in gold. Precious-metals dealer Apmex will pay a deposit worth about $176,000 – in the form of three 32-ounce bars of gold the size of a television remote control, the Wall Street Journal reported Wednesday.

Read Apmex’s statement about the deposit: http://www.marketwatch.com/story/donald-trump-to-accept-gold-bullion-in-lieu-of-dollars-on-apmex-lease-at-40-wall-street-2011-09-15

On Thursday, gold futures GC1z dropped $46 to $1,781 an ounce. Read more in Metals Stocks: http://www.marketwatch.com/story/gold-drops-below-1800-after-central-bank-move-2011-09-15

[ekimdrachir]

SDRs have been active for a while now, I'm sure all sorts of exchanges take place every day. The prices can be checked on the IMF website, they're listed in current USD value.

[Letsbereal]

Gold stocks get the nod at HSBC
16 September 2011, by Tom Bemis (MarketWatch - Blogs)
http://blogs.marketwatch.com/thetell/2011/09/16/gold-stocks-get-the-nod-at-hsbc/

HSBC analysts upgraded three gold stocks and cut one Friday according to theflyonthewall.com.

Getting the nod were:

IAMGOLD IAG, raised to overweight from neutral with a price target of $30;

Harmony Gold  HMY, raised to overweight from neutral with a price target of $17;

and Yamana Gold AUY, upgraded to overweight from neutral, with a price target of $20.

Royal Gold RGLD was downgraded to neutral from overweight.

[Letsbereal]

Gold back above the $1,800 level http://www.goldprice.org/spot-gold.html

Gold Diggers of 1933 - "We're in the Money" http://www.youtube.com/watch?v=UJOjTNuuEVw

[Letsbereal]

Gold closed at $1,811.35 http://www.goldprice.org/spot-gold.html

[Letsbereal]

Bob Chapman - Financial Survival 16 Sept 2011 http://www.youtube.com/watch?v=peHScS68XaQ

[Letsbereal]

Austria restricts gold purchase by individuals
14 September 2011, Vienna (Commodity Online)
http://www.commodityonline.com/news/Austria-restricts-gold-purchase-by-individuals-42329-3-1.html

A newly enacted Gold policy in Austria that restricts the free purchase of gold by individuals may just be the start of a European policy shift that might border on infringing an individual’s financial freedom.

-As per the new Austrian policies, individuals who wish to purchase gold will be restricted to purchase only 15000 Euros worth of gold at a time making gold an officially “restricted” commodity.

Earlier, one had to just call the local Austrian bank about 2-4 days in advance and state the amount of Gold one wishes to purchase. But that has now been scrapped.

Although, the officials quote money laundering as the reason for the new polices, one but wonders if there isn’t more to it.

-Meanwhile, in Italy, top industrials and professionals have sent a letter to the government and parliament to ban all cash transactions above 300 Euros, and only permit electronic transfers!

[Letsbereal]

China’s ‘thousand pure gold’ standard to challenge India
16 September 2011, Beijing (Commodity Online)
http://www.commodityonline.com/news/Chinas-thousand-pure-gold-standard-to-challenge-India-42408-3-1.html

Global leader in Gold production, China on Friday also opened up a campaign to become No 1 in consumption too by releasing the first national standards on "high pure gold”.

According to China’s National Gold Standardization Technical Committee, with the adoption of new national standards, the technology of manufacturing high pure gold will be gradually introduced into the consumers' market.

The move is expected to promote the development of the country's gold industry and bring new changes to the market of gold investment and consumption. China remained second largest gold consumer behind India.

High pure gold as it is called in the standards, refers to the gold with purity of 99.999 percent, or "five nines," and is also the highest purity so far.

A Gold ornament with an amount of metal reaching 99 percent is called "pure gold," and more than 99 percent is called "thousand pure gold."

Currently in the Chinese market, the highest purity level of a gold ornament usually reaches 99.99 percent, or "four nines."

With the purity of 99.999 percent, the "high pure gold" used to be used in high-tech industry, such as aerospace. It requires a higher quality of the raw material and a more complicated technological craft.

The new standards, approved by the the General Administration of Quality Supervision, Inspection and Quarantine and the Standardization Administration of China, went into effect this month.

[Freeski]

As per the new Austrian policies, individuals who wish to purchase gold will be restricted to purchase only 15000 Euros worth of gold at a time making gold an officially “restricted” commodity.

...

Although, the officials quote money laundering as the reason for the new polices, one but wonders if there isn’t more to it. LOL!

-Meanwhile, in Italy, top industrials and professionals have sent a letter to the government and parliament to ban all cash transactions above 300 Euros, and only permit electronic transfers!

I fear the day when no one takes cash.

[Letsbereal]

Finance firms, banks help India consumers to buy more gold
16 September 2011, Mumbai (Commodity Online)
http://www.commodityonline.com/news/Finance-firms-banks-help-India-consumers-to-buy-more-gold-42410-3-1.html

The rising Gold price is no longer a worry for Indian jewelry buyers as finance companies and banks are rushing towards them offering loans for purchasing their beloved yellow metal.

New finance schemes to buy gold continue have been  launched as festival and wedding season gains momentum in the world’s largest gold-loving nation. Gold is gifted within families in India during festivals and wedding occasions.

India has seen 25% spurt in gold prices in the first half of the year but gold sales continued to climb. Seeing this trend, many jewelers in collaboration with banks have introduced many schemes, loan plans to push gold sales. These schemes and plans introduced would help the buyers to buy more jewelry for the cash they possess and remaining could be paid off in installment at low interest rates.

One such plan is ''Swarna Samridhi'' for the Andhra Pradesh market introduced by Jewellery chain Goldplus in alliance with Muthoot Finance.

There are also other plans such as suvarna Lakshmi Gold saving scheme introduced by Bhima jewellers, where the buyer can reserve gold jewellery at current prices and take delivery at a future date.

Some jewellers have even come out with exchange offers where the buyers can buy the gold worth the price of gold exchanged.

The finance options are available not only for gold but also for other precious metala like Platinum and woman’s favourite, diamonds.

Much of the world’s renowned jewellery like Tanishq, D’damas, Joy alukas etc has also introduced many schemes to promote the sales and till now it has proved to be successful.

[Letsbereal]

China to become 6th country to open gold vending machines
16 September 2011, London (Commodity Online)
http://www.commodityonline.com/news/China-to-become-6th-country-to-open-gold-vending-machines-42397-3-1.html

Largest Gold producer and second largest to India in consuming, China will become the sixth nation to open a gold vending machine for its people.

According to reports, China is all set to open vending machines from Sept 23, made by the same German company TG Gold Super Market that supplied machines to other countries, at locations in Beijing which was not revealed.

The cash-for-gold machines will be on trial at Beijing’s upscale night clubs and private banks during the initial period for security reasons.

The ATMs dispense Gold bars weighing up to 2.5 kilograms and work just like the normal ATMs. The machines can accept both cash and credit cards.

Gold vending machines are now operating in the US, UAE, Germany, Spain and Italy.

[supermegaman]

gold vending machines.   HA!  I bet it's that fake gold they found a few years ago in China that was filled with Tungsten. 

[Letsbereal]

Gold price drivers: Currency debasement and interest rates
17 September 2011, London (Commodity Online)
http://www.commodityonline.com/news/Gold-price-drivers-Currency-debasement-and-interest-rates-42425-3-1.html

US Currency debasement which stokes up inflation and lower interest rates are the two primary drivers of gold, according to Mark Hanney, Chief Executive Officer of Valbury Capital, a broking serveice fully regualted by the FSA.

Given the Fed's announcement that it will keep interest rates low until at least the middle of 2013, investors who are long Gold and short the dollar might well feel comfortable staying that way."

As a response to its unsustainable levels of state and federal debt, and in an attempt to stimulate economic activity, the United States has adopted a deliberate policy of currency debasement. As with any market currency prices are set by supply and demand and as the Federal Reserve creates more dollars their value falls, and since gold is denominated in dollars, as the dollar falls, so the price of gold rises. Gold then is the anti-dollar, and gold's decade long advance runs counter to the dollar's decade long decline.

Back in 2007 the US dollar index [DXY] broke down through 80 - a level which had acted as support for 34 years - and with the likelihood of QE3 not too far away, the outlook for the buck is distinctly negative. In fact, famed technical analyst Louise Yamada, has a long-term downside target for the DXY of 60.

It is just over 40 years since Richard Nixon took America off the gold standard and over that period the greenback has lost more than 98% of its value compared with gold. Buyers of gold are simply trying to protect their wealth by moving out of paper currencies into the ultimate hard currency that cannot be created at will by central bankers. The question of how high gold can go is really a question of how low paper money can go.

Interest rates

Gold becomes attractive to investors when the rate of return they can achieve on their savings falls below the rate of inflation - a condition faced by most of the world's savers today. The persistence of negative real interest rates - a form of financial repression - erodes the wealth of those holding cash on deposit and forces them to go in search of better returns. The attraction of Gold in this environment is easy to see especially since gold has risen for 10 years in a row and has returned on average 18% with no down years.

A different animal

Although some of the conditions that drove gold in the 1970's also exist today - namely high inflation and negative real interest rates - today's bull market is a very different animal. Today gold is also being driven by fears over sovereign debt default, the solvency of the banking system and the threat of global recession.

Inflation adjusted high

One popular method for calculating the target for gold is to take the 1980 high of $850 and adjust it for inflation. Many in the mainstream tout the inflation adjusted figure as being equivalent to $2,400 an ounce in today's money but if we use the same methodology for calculating inflation as was used in 1980, we find the true inflation adjusted high is $5,467.

The last gold bull market

Another way to gauge the length of gold's current bull market is to compare it with the previous bull market which ran from early 1970 to early 1980, exactly one decade. In January 1970 gold was $35 an ounce, ten years later on 21 January 1980 gold reached an intraday price of $850 - a 24 fold increase in price. If gold were to match that increase, based on its January 2001 low it would reach $6,245.

"Even if gold simply achieves the gains made in the previous bull market, we can expect a price in excess of $6,000 an ounce. However multi-decade bull markets almost always end in a mania and in a mania gold could far exceed $6,000."

[Letsbereal]

I Love Gold! http://www.youtube.com/watch?v=sr0gNJ090JA

Austin Powers Gold Member – “I am from Holland, isn’t that weird??” http://www.youtube.com/watch?v=SwB0ZJbwmpw

http://www.beyondhollywood.com/uploads/2011/04/The-Devils-Double-Movie-Poster.jpg

[TahoeBlue]

[Letsbereal]

Highres: http://collider.com/wp-content/uploads/the-devils-double-movie-poster-01.jpg

[Letsbereal]

Comex Alternative: Pan Asia Gold Exchange, Silver Contracts start 22-7-2011! http://www.youtube.com/watch?v=Bt_H3OWxUSY

[Letsbereal]

Dutch Socialist Party has asked the Secretary of the Treasury for the whereabouts of the Dutch Central Bank’s gold
18 September 2011, (De Vrijspreker)
http://www.vrijspreker.nl/wp/2011/09/sp-stelt-kamervragen-over-de-nederlandse-goudvoorraad/

On Friday 16 September, the Dutch Socialists Party (SP)’s spokesman for financial affairs, Mr. Ewout Irrgang, has asked the Dutch Secretary of the Treasury 10 detailed questions about the gold supposedly held by the Dutch Central Bank.

Questions vary from: where is the gold? why are gold and gold receivables one line item? how much gold is loaned out? All questions can be found here.

This is potentially a big breakthrough for global awareness on how central banks hide crucial info from the public and the disastrous effects central banks have on society. The society benefits from competitive currencies, chosen voluntarily by the people.

The Questions:

1 - Did the Dutch Central Bank (DNB) loan part of their gold? If yes, how much and to whom?

2 - Why are gold and gold loans stated as one line item in the annual report 2010 instead of mentioned as 2 separate items?

3 - Can you give an overview of the yearly yields of the gold loans during the past years?

4 - Where IS the physical gold of DNB? At which locations and how much is where? What is the reason that the gold is still at these locations?

5 - What was the most important reason for DNB to sell the gold in the past? Are the storage costs a reason? What are the actual costs to store the gold?

6 - Can you confirm that since 1991 of the 1700 tons of gold about 1100 tons have been sold? Is the remark of journalist Peter de Waard correct that because of these historic sales there is a loss of about 30 billion euro? If not correct, what is the right amount?

7 - How much of the National Debt has during the past 20 years been paid off with the proceeds of the gold sales? Are you of opinion that the sustainability of the national debt will be improved by paying off the debt and at the same time selling the gold?

8 - What is in your opinion the present function of the gold stock?

9 - What is the relation between the size of the market of the gold stock and the size of the market of gold derivates? What are the possible consequences of this?

10 - Can you confirm that recently a number of countries have even enlarged their physical gold stock? Do you have an explanation for this development?

[Letsbereal]

Gold imediately shot up to $1,827 in the early trading

then the Bizarro PPT Algs seem to be kicking in again. http://www.goldprice.org/spot-gold.html

[Letsbereal]

Gold inclusion as Tier 1 asset would be huge: LBMA
19 September 2011, by Rhiannon Hoyle - Montreal (MarketWatch)
http://www.marketwatch.com/story/gold-inclusion-as-tier-1-asset-would-be-huge-lbma-2011-09-19

The London Bullion Market Association is supporting the gold sector's push to have bullion included by the Basel Committee on Banking Supervision in its recommendations of high quality liquid assets commercial banks should hold, which, if successful, will be one of the most significant events for the industry in recent years, the LBMA chairman said Monday.

"If the Basel III quest is successful, it could be one of the greatest changes in the modern day gold market," David Gornall, who is also global head of precious metals trading at Natixis, told delegates there.

The World Gold Council submitted evidence to the Basel Committee in December 2009 arguing gold should be included in banks' "Tier 1" assets, such as government bonds and currencies, by European banking regulators.

If this gets approved, it will spur a much wider use of gold by financial institutions, who can borrow gold from central banks at a relatively lower rate to conduct transactions or finance other projects, the WGC says.

[Letsbereal]

Gold Prices May Top $2,000 This Year on ‘Confidence Crisis’
20 September 2011, by Joe Richter (Bloomberg)
http://www.bloomberg.com/news/2011-09-19/gold-prices-to-top-2-000-this-year-on-confidence-crisis-survey-shows.html

[Letsbereal]

Bullion Vaults Run Out of Space on Gold Rally
21 September 2011, by Chanyaporn Chanjaroen, Nicholas Larkin and Debarati Roy (Bloomberg)
http://www.bloomberg.com/news/2011-09-21/bullion-vaults-running-out-of-space-as-gold-rally-accelerates-commodities.html