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

[Letsbereal]

CME Lifts Gold, Silver Margins by 50%
18 February 2011, by jturbin (GoldAlert)
http://www.goldalert.com/2011/02/cme-lifts-gold-silver-margins-by-50/

CME Group announced yet another series of margin requirement increases for gold and silver futures contracts.

Effective after the close of business today, initial and maintenance margin requirements on gold and silver will increase 50%, according to CME Group. 

CME is the owner and operator of the New York Mercantile Exchange and Commodity Exchange (COMEX), on which precious metals futures contracts are traded.

Today’s announcement follows several margin increases over the past year, as the exchange seeks to limit speculation as precious metals continue to surge higher.

While these decisions have often led to short-time sell-offs in gold and silver, history has shown that these measures have little to no effect over the longer-term.

If the CME and federal policymakers are trying to suppress the price of gold and silver, as many have suggested, they would be much better served urging Federal Reserve Chairman Ben Bernanke to end his reckless quantitative easing programs instead.

[Letsbereal]

If The CME Hiked Gold And Silver Margins By 50% And Nobody Cared, Did A Tree Fall In The Precious Metal Price Suppression Scheme?
18 February 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/article/if-cme-hikes-gold-and-silver-margins-50-and-nobody-cared-did-tree-fall-central-banking-pm-pr

Excerpt:

Now that JPM is out of the picture, the last recourse of gold and silver price suppression is exchange margin hikes. Or was.

The CME has announced, that as of close today, it will hike various gold and silver (and other metal) contract initial and maintenance margins by 50%.... And nobody cared.

This means the CBs are well on their way to losing the imposed gold standard wars.

Look for the USD to take a big step lower shortly as nominal values of everything do the inverse.

This will naturally be promptly followed by a "sudden and dramatic deterioration in European conditions" as the EUR can not be far behind in the FX race to the bottom.

[Letsbereal]

Gold: the ultimate inflation hedge
19 February 2011, by Emma Simon (The Telegraph)
http://www.telegraph.co.uk/finance/personalfinance/investing/gold/8334952/Gold-the-ultimate-inflation-hedge.html

Excerpt:

Recent research from the World Gold Council shows how gold has held its value over the long term when compared with other commodities.

The relative price of gold and oil has remained almost constant over the past 50 years.

So although the price of both (in either pounds or dollars) has risen during this period, if you were buying a barrel of oil with bullion you would hand over roughly the same weight of gold as you would have done in 1950.


More startling is that gold has retained this purchasing power over even longer periods.

It is thought that an ounce of gold bought 350 loaves in the time of Nebuchadnezzar, the king of Babylon who died in 562BC.

An ounce of gold still buys roughly 350 ordinary sliced loaves today, showing that over 2,500 years gold has proved a very effective hedge against inflation, at least when it comes to everyday essentials.

[Letsbereal]

Gold gobblers: countries with the highest gold demand
http://www.telegraph.co.uk/finance/markets/8335375/Gold-gobblers-countries-with-the-highest-gold-demand-in-pictures.html

Excerpt:

Latest statistics from the World Gold Council show continued voracious appetite from Asia and the Middle East. Here are the countries with the greatest consumer demand for the precious metal



India

China and Greater China

USA

Germany

Turkey

Switzerland

Saudi Arabia

Vietnam

UAE

[Letsbereal]

James Turk: Gold $8000 - Hyperinflation a sure thing
http://www.youtube.com/watch?v=bFRtd5d_J_o

James Turk: Hyperinflation a 100% certainty. Gold hits $8,000 between 2013 &1015.

Recommends diversifying gold and silver holdings geographically and saving some precious metals every month!

[Letsbereal]

Yesss Gold above $1400 again!!!! http://www.youtube.com/watch?v=i5N3p2we_og


Yessssss!!!! Gold Always believe in …. Gold, Your indestructible, GOLD!!! http://www.youtube.com/watch?v=rVuwXM9u2ps

Brad Neely – Bring The Gold http://www.youtube.com/watch?v=_qO66Rmi1Mw


The Ecstasy of Gold (Enio Moricone) http://www.youtube.com/watch?v=ZNGe7iK1O-4

The Ecstasy of Gold (Enio Moricone) – With Film Footage http://www.youtube.com/watch?v=2PwpOmjAu1M


Kelly's Heroes -- Go for Gold http://www.youtube.com/watch?v=fC8Ch-bZPt4

[Letsbereal]

Turk - Silver Backwardation Now “Unprecedented 73 Cents”
21 February 2011, by Eric King (King World News)
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/2/21_Turk_-_Silver_Backwardation_Now_Unprecedented_73_Cents.html

Excerpt:

With silver trading at $33.50 and gold breaking above $1,400 in early trading in London, King World News today interviewed James Turk out of Spain to get his thoughts. Turk remarked, “The backwardation that we have been talking about has now blown out to 73 cents, that is unprecedented. I find that number to be completely astounding! Where are the arbitrageurs? They could make a fortune. This suggests to me that the arbitrageurs are out of the market because they don’t have the physical metal to sell to deal with the imbalance.”

----

But the lingering question in my mind is whether the strong hands who hold silver are unwilling to take a fiat currency. If that is the case, and this backwardation in silver eventually leads to a backwardation in gold, the implications for the US dollar, and indeed all of the fiat currencies in the world are ominous.”

When asked about gold specifically Turk stated, “Eric, here we have gold in London trading above $1,400 this morning. For the first time in a couple of weeks, the gold chart is starting to show real strength. I expect gold to be probing the old high of around $1,430 by the end of this week, given the strength we are already seeing. The old high should not provide much resistance, so expect new record high prices in gold soon.”

It will be interesting to see how both gold and silver trade the rest of the London session. If the metals stay strong for the balance of London trade, we could be in for some fireworks Tuesday. So far these markets have been very orderly, but the nagging question in the back of the short’s mind has to be, “At some point will the gold and silver markets get disorderly to the upside?”

[Letsbereal]

Platinum is currently increasing faster than gold, and rhodium is worth twice as much as gold.  How can anyone believe gold is the best commodity?

Is there a movie called Platinum or Rhodium? Is there a movie Rhodiumfinger? (Sounds silly anyways).

Gold Refuses To Stop Climing!!!!
http://www.youtube.com/watch?v=0Onjo5NTNiQ

[agentbluescreen]

Platinum is currently increasing faster than gold, and rhodium is worth twice as much as gold.  How can anyone believe gold is the best commodity?

Anything is better than Federal Reserve Company paper-ducats. Just make sure you have lots of toilet paper

[ekimdrachir]

Wow the markets bombed today..

http://www.marketwatch.com/tools/marketsummary/

   
DJIA    12,212.79          -178.46       -1.44%
Nasdaq    2,756.42          -77.53       -2.81%
S&P 500    1,315.44          -27.57       -2.05%
Global Dow    2,194.54          -0.43       -0.02%
Dow Util    
NYSE    8,325.86          -182.04       -2.14%
AMEX    2,325.26          -21.55       -0.92%
Russell 2000    812.96          -21.86       -2.62%
Semcond    452.81          -18.65       -4.12%
Gold future   1,400.50        -0.60      -0.04%
30-Year Bond    4.61%          -0.09       -1.98%
10-Year Bond    3.46%          -0.13       -3.57%

[charrington]

Wow the markets bombed today..

http://www.marketwatch.com/tools/marketsummary/

   
DJIA    12,212.79          -178.46       -1.44%
Nasdaq    2,756.42          -77.53       -2.81%
S&P 500    1,315.44          -27.57       -2.05%
Global Dow    2,194.54          -0.43       -0.02%
Dow Util    
NYSE    8,325.86          -182.04       -2.14%
AMEX    2,325.26          -21.55       -0.92%
Russell 2000    812.96          -21.86       -2.62%
Semcond    452.81          -18.65       -4.12%
Gold future   1,400.50        -0.60      -0.04%
30-Year Bond    4.61%          -0.09       -1.98%
10-Year Bond    3.46%          -0.13       -3.57%

Some did some didn't --- just listening to some of the day broadcasts can help you a lot with where to place your money. Who gives more Oil to the US -- Canada or the middle east?

[Kilika]

If this doesn't make it clear that the markets are not truly operating on supply and demand, then I don't know what will.

[charrington]

If this doesn't make it clear that the markets are not truly operating on supply and demand, then I don't know what will.

Yup

[agentbluescreen]

Some did some didn't --- just listening to some of the day broadcasts can help you a lot with where to place your money. Who gives more Oil to the US -- Canada or the middle east?

Depends on the price. They've been draining Canada dry since prices went up - the MuthafurrinTarSands rape and devastation program needs about $50-60/bbl to (temporarily for the short term) appear to be paper- "profitable".

Canadian gas-pump prices are about 20-25% higher than US.

BTW holy smokes $1415 and still climbing? Silver seems a bit lazy today, Morgan must be in oil shock...

[Geolibertarian]

Out of courtesy to Letsbereal, I split off the issue I raised about the overhyping of precious metals into a separate thread.

[grapecrusher1]

GATA's Powell and Turk on gold price manipulation.

http://www.goldmoney.com/video/powell-turk.html

[Letsbereal]

Out of courtesy to Letsbereal, I split off the issue I raised about the overhyping of precious metals into a separate thread.

TnX! but I am not hyping gold I am just reporting on it.

[Letsbereal]

IS THERE GOLD IN FORT KNOX? Maloney & Morgan In Las Vegas Part 5
http://www.youtube.com/watch?v=rt8Sfz4db3k

[agentbluescreen]

TnX! but I am not hyping gold I am just reporting on it.

Have a party  lol

James Turk's "Thinking like Fat Tony" is the best research I've seen so far on the Fort Knox issues
http://www.fgmr.com/thinking-like-fat-tony.html

GATA's Powell and Turk on gold price manipulation.

http://www.goldmoney.com/video/powell-turk.html

great post grape

[Letsbereal]

Have a party  lol

James Turk's "Thinking like Fat Tony" is the best research I've seen so far on the Fort Knox issues
http://www.fgmr.com/thinking-like-fat-tony.html

great post grape

But letting the permutations and calculation of probability a side this is key:

“One thing is certain in my mind; the central banks do not want to see gold higher, in fact they would love to wipe gold off the face of the earth?

Why? Because gold is real money and they cannot control it. They can’t bankrupt it.

They can knock it down temporarily, but it’s still there. A paper currency can be destroyed but gold can’t be destroyed. So all the banks can do is to try and keep gold from rising in terms of paper contracts. ”

It ‘s really very simple. Fiat currency is a scheme perpetrated by central banks. To make their scheme work, they intervene in the gold market to manipulate the gold price. By doing so they try to make their fiat currency look better.

Thus, it ‘s not gold that is the barbarous relic. The barbarous relic is central banking.


And I like to add: "... over 2,500 years gold has proved a very effective hedge against inflation, ..."
http://www.telegraph.co.uk/finance/personalfinance/investing/gold/8334952/Gold-the-ultimate-inflation-hedge.html

[Letsbereal]

Gaddafi's Private Plane, Reportedly Loaded With Gold, Ready To Leave For Zimbabwe As Early As Tomorrow
24 February 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/article/gaddafis-private-plane-reportedly-loaded-gold-ready-leave-zimbabwe-early-tomorrow

Excerpt:

The latest news from the ABC.net.au should come as no surprise to those who know all too well that one can't eat gold:

"Gaddafi own private plane is loaded with gold bullion and lots of hard currency, mainly dollars, and is preparing to flee to Zimbabwe to stay there with his friend Robert Mugabe."

[Letsbereal]

FMX Connect Sees Gold Hitting $1,550 Within 8 Weeks
24 February 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/article/fmx-connect-sees-gold-hitting-1550-within-8-weeks

Excerpt:

Simply stated, if this week closes above 1416, there is a high likelihood of a 75 to 175 move higher in gold over the next 2 months. Although if the indicator hits, we'd expect the move to happen in a more compressed time. The signal does not usually waste time letting you know if it is right or wrong.

The indicator combines Bollinger bands, implied volatility, skewness, and historical volatility to determine speed and direction of a potential move. The actual calculations involve using these indicators to create and proprietary oscillators.

Volatility breathes (i.e. Bollinger bands) and FMX Connect believes that Gold volatility is getting ready to exhale in a big way.

[Letsbereal]

Marc Faber McAlvany Interview 23 February 2011
http://www.youtube.com/watch?v=-C5_Ni3vy-w

[Letsbereal]

Go for gold: it is far ahead of electronic money
25 February 2011, by Merryn Somerset Webb (The Financial Times)
http://www.ft.com/cms/s/2/22dc6696-4109-11e0-bf62-00144feabdc0.html

Excerpt:

So they hold insurance against all these things in the form of gold – the one global commodity that has held its value for thousands of years, regardless of what happens around it.

Right now, that looks like the right thing to have done.

The behaviour of the central banks in the west over the past decade is not the kind of thing to engender much in the way of confidence in their currencies. Monetary policy has been far too loose for decades and now the almost routine printing of money via quantitative easing – along with the huge sovereign debts of almost all western nations – should make even the most firm of believers in paper currencies feel a little tense.

Just how tense? Usually, when geopolitical tension kicks off around the world, investors rush for the safe haven of the dollar. It might be a sign of just how much confidence they have lost in it the last few years that, even as the Libyan crisis unfolded, the US currency barely budged.

Those after a safe haven headed for gold instead. For the first part of 2011, the gold price fell from its December high of $1,420 right back to $1,320 – around 7% in total. It started rising again in the first few days of this month and is now back to $1,412.

So what next? The usual reasons for holding gold stand, regardless of the jump in the price. Supply is tight but demand of all kinds is rising.

Angelos Damaskos of the Junior Gold Fund points out that global gold consumption in the third quarter of last year was 12% higher than in the year before. Demand for gold jewellery rose 8% and retail investment demand rose 25%.

Of particular interest is the rise in demand for gold in China: in the first ten months alone of 2010, it imported five times the amount it imported in all of 2009.

At the same time, money printing (and the inflation that follows) remains a worry. Clearly, the more paper currencies are debased, the more you want to be holding a real store of value. That should keep demand moving.

My children have a large box of coins they play with endlessly. They are all either the remnants of totally defunct currencies or the inflation-wasted denominations of currencies that still exist (British halfpennies, for example). The children use them to play at shops. I use them as a reminder that paper currencies rarely keep their value. One day – and probably a day long before my grandchildren take over the game – the box will contain a variety of dimes, quarters, euro coins and pounds.

The final thing I would note at the moment is that the world’s banks haven’t been particularly kind to the ousted and semi-ousted dictators of the world this month. Mubarak, Gaddafi and Ben Ali have found that, far from standing by them, their Swiss banks have been all too keen to freeze their accounts. You might say this serves the old tyrants right. And of course it does. But it also reminds the rich that electronic money – which is all our money is anymore – isn’t real money.

That’s good for gold, as well.

[charrington]

DOLLAR ON THE EDGE OF THE ABYSS

The dollar is now poised on the edge of the abyss.

The current intermediate cycle has rolled over and is making lower lows and lower highs. The current daily cycle has formed a swing high and is in jeopardy of rolling over into a left translated cycle. If the dollar breaks below the November intermediate bottom of 75.63 it will be an incredibly bearish sign as not only will the current intermediate cycle have topped in only 4 weeks but the larger yearly cycle will also have topped in only 4 weeks.

If that happens there is little chance the dollar will be able to hold above the March 08 lows as the crash down into the three year cycle low begins in earnest.

This will not only drive the final leg up in gold's huge C-wave it will also drive a huge spike in inflation in all other commodities. Food riots world wide will intensify. The rest of the world will be in an uproar over the collapsing dollar. Spiking commodity prices will collapse discretionary spending just like it did in 08 and 09.

The phony economy driven by Ben's printing press will roll over when he's forced to turn off the presses to halt the dollar collapse. (Just like it started to do last summer when QE ended and the stock market started to collapse.)

The dollar's rally out of the three year cycle low should correspond with stocks beginning the next leg down in the secular bear market and the next brief deflationary period just like the bounce out of the 08 three year cycle low drove the second leg down in the secular bear market.

The rally out of a three year cycle low usually lasts about a year to a year and a half. The next 4 year cycle low in the stock market is due in 2012. I expect that year long rally out of the coming three year cycle bottom to drive stocks down into the next major 4 year cycle trough and drive the CRB into it's next major cycle bottom.

MORE
http://goldscents.blogspot.com/2011/02/dollar-on-edge-of-abyss.html


MORE
http://goldscents.blogspot.com/2011/02/dollar-on-edge-of-abyss.html

[Letsbereal]

Turk - Dollar Ready to Collapse, Silver Squeeze to Continue
25 February 2011, by Eric King (King World News)
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/2/25_Turk_-_Dollar_Ready_to_Collapse,_Silver_Squeeze_to_Continue.html

With gold higher and silver up almost $1.30, King World News today interviewed James Turk out of Spain. Turk had this rather frightening warning about the dollar, “The dollar right now is hanging on the precipice. If we break below 77 on the dollar index, look out below. I don’t think people really appreciate how scary the dollar chart is here, or how ominous the implications really are. There’s no predicting how far the dollar could plunge if confidence breaks.”

Turk continues:

“You’ve got civil breaking out in North Africa and you have rebellions happening in the Middle-East. In this kind of geopolitical situation in the past the US dollar would always rally, but this time it can’t even bounce. You know Eric the other side of this coin is that if the dollar falls off the edge of a cliff, precious metals are going to skyrocket.”

When asked about silver Turk stated, “During the most illiquid time of the trading day, somebody decided to take out all of the stops in silver. If you were not following during business hours in the Pacific Ocean you missed it. I woke up this morning and looked at the chart and couldn’t believe what happened while I was sleeping.

The important point Eric is that no technical damage was done and in fact the situation has become even more bullish because that little smack down overnight took out all of the weak hands.

With this month’s important options expiry now behind us, I’m looking for higher prices next week. Even though the March/May spread has flattened a little, the backwardation continues to grow to 2015 and has ballooned further to $1.16. The short squeeze is continuing to develop. The shorts are trapped and whether the trap springs this week or in a month or two I don’t know, but we are getting very close.”

When asked about gold specifically Turk remarked, “While silver did get hit in overnight trading, gold hardly moved and then snapped right back. Remember I said last time that the gold chart is beginning to look really strong, that is what the event last night displayed.

Gold is incredibly resilient and looks coiled for an explosive move higher. We started our initial probe of the all-time high this week closing in on $1,430 before backing off. Look for another probe of that $1,430 level very soon. It won’t be long Eric before we take out that all-time high, particularly if the dollar falls off the edge of a cliff.”

It is worth noting that in his King World News interview today Art Cashin also warned about the US Dollar being on the verge of serious trouble. KWN readers globally should keep a close eye on the dollar next week to see if it begins to break down. If that happens it will increase bids in both the gold and silver markets.

[Letsbereal]

Gold Slamming Down and Up Like A Strange Fever!

[Letsbereal]

Egypt bans gold exports, miner says not affected
28 February 2011, Cairo (Reuters)
http://af.reuters.com/article/topNews/idAFJOE71R01L20110228

Excerpt:

Egypt on Sunday banned the export of gold for the next four months. A decree banning the export of gold in all its forms, including jewelry and ornaments. It takes effect immediately and continues until June 30.

"This decision, which comes in light of the exceptional circumstances the country is passing through ..., is to PRESERVE THE COUNTRY'S WEALTH until the situation stabilises," MENA said.

The MENA statement made no mention of whether the ban included exports of gold from mining.

But an official from the flagship Sukari gold mine of Centamin Egypt said he was confident the order did not affect the mine's operation.

[Kilika]

Come on, what's the golden rule in commoditites? Volatility.

It's the "day-trader" mentality that has taken over. Commodities like precious metals should not be flucuating along a period of time, but remain stable. These daily actions is in complete contradiction to the whole concept of gold investment. They've trapped people into their manufactured paper-trading system they created for the sole purpose of trading paper so they didn't have to move as much actual commoditity. It's a paper shuffle unless your taking delivery of said commodity. There is no reason whatsoever for the price of gold to jump like it has recently, because so much of it's valuation is nothing but speculation of what MIGHT be in the fututre.

A commodities trader wants peak and valleys on a regular basis. No movement in price, no quick cash. Think of how much a person makes if the price goes up just $1.00 on a gold option. Do the basic math. Certain people are getting massively rich. And noneof it has to do with supply and demand of the gold for any length of time. They make the market fluctuate intentionally.

It's all manipulated, and not a true reflection of supply and demand.

[charrington]

Come on, what's the golden rule in commoditites? Volatility.

It's the "day-trader" mentality that has taken over. Commodities like precious metals should not be flucuating along a period of time, but remain stable. These daily actions is in complete contradiction to the whole concept of gold investment. They've trapped people into their manufactured paper-trading system they created for the sole purpose of trading paper so they didn't have to move as much actual commoditity. It's a paper shuffle unless your taking delivery of said commodity. There is no reason whatsoever for the price of gold to jump like it has recently, because so much of it's valuation is nothing but speculation of what MIGHT be in the fututre.

A commodities trader wants peak and valleys on a regular basis. No movement in price, no quick cash. Think of how much a person makes if the price goes up just $1.00 on a gold option. Do the basic math. Certain people are getting massively rich. And noneof it has to do with supply and demand of the gold for any length of time. They make the market fluctuate intentionally.

It's all manipulated, and not a true reflection of supply and demand.

I'm not sure that supply and demand is really the point here. I do know that every time you remove 2k or more from your bank the bank tells the government. I know if you try and move money out of the country you can't -- you wont get an explanation -- you just can't.

So when countries block the gold, money from leaving the country -- it's a huge warning sign. As if we didn't have enough of them already eh?

[Letsbereal]

Come on, what's the golden rule in commoditites? Volatility.

Gold Volatility? Puh! You ain't seen nothing yet.

Volatility swing's will get much wilder once in uncharted waters with swing's possible up to $100 a day!

Or the COMEX becomes irrelevant as street markets reflect actual physical silver and gold prices and not the price manipulating scamming banksters RACKET anymore.

READ:

QE2, The Road To A Gold Standard
23 February 2011, Jim Willie (The Market Oracle)
http://www.marketoracle.co.uk/Article26497.html

[Letsbereal]

Excerpt from QE2, The Road To A Gold Standard, 23 February 2011, Jim Willie (The Market Oracle)

In the last week, two significant factors must be mentioned, each important in its own right.

Last week, both factors were overrun by the silver market as new highs were established in the silver price.

Options expiration for silver futures contracts usually brings about a huge ambush by the usual suspects, the Big US Banks, who sell vast additional futures contracts without posting any collateral.

Mere mortals are prohibited from such naked shorts! Usually the imminent options expiration date results in a significant sudden swoon in the silver price, at least in the futures market, the so-called but increasingly absurd price discovery arena.

This past week, the silver price zoomed toward $34/oz despite the threat of ambush, in total defiance to the options expiration deadline.

Also, the COMEX in their height of wisdom and market rig efforts decided to raise the margin requirements for silver, for the umpteenth time since last summer.

Usually such a margin hike results in a significant price drop like a wind sheer to an commercial jet aircraft.

This past week, the silver price zoomed toward $34/oz despite the threat of margin ambush, in total defiance to the greater hardship to maintain margin.

It is unusual to see a silver price advance in the face of one such factor.

But it rose with gusto in the face of two important obstacles.

My forecast in the last few months has been steady, that silver would lead the precious metals. That has been confirmed.

While silver raced past $30 and $31 with ease, Gold has yet to confirm the breakout beyond the January highs. All in time.

[Letsbereal]

CBOE To Add Another Layer Of Gold Price Volatility, Launches Futures And Options On Gold VIX
28 February 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/article/cboe-add-another-layer-gold-price-volatility-launches-futures-and-options-gold-vix

Excerpt:

It's not quite a triple forward (or inverse) ETF on gold just yet, but it's a start. Capitalizing on the surge in volatility in the commodity space, which together with FX has become the go to arena for day traders seeking volatility, which has been completely eradicated from stocks courtesy of the Bernanke Put, the CBOE and CFE have "announced plans to launch futures and options on the CBOE Gold ETF Volatility Index (Ticker - GVZ). Pending regulatory approval, CBOE Futures Exchange (CFE) will begin trading GVZ futures on Friday, March 25, and CBOE will introduce GVZ options a few weeks later." The reason for this product to be pushed on investors is that after peaking near 25 in December, the ^GVZ has plunged to one year lows as gold has steadily remained just off its all time highs. So if the first volatility derivative isn't generating the much needed commission broker P&L, it is time to break out 2nd and further vol derivatives. We expect a triple or more-leveraged ETF on gold and silver to arrive shortly, then followed by an ETF which tracks the theta in the first ETF , and so forth, until the entire market is dominated by "synthetic CDO-like" derivatives and nobody cares about the actual underlying, just so traders have something to keep them occupied. After all diversion, is half the battle.

More from the CBOE:

The calculation of the CBOE Gold ETF Volatility Index ("Gold VIX") is based on the well-known CBOE VIX methodology applied to options on the SPDR Gold Trust  (Ticker - GLD).  The Gold VIX is an up-to-the-minute market estimate of the expected 30-day volatility of GLD, calculated using real-time bid/ask quotes of GLD options that are listed on CBOE.

"Each year we've added greater depth to our suite of volatility products," CBOE Holdings Chairman and CEO William J. Brodsky said. "Most recently we've extended the reach of our VIX methodology to new asset classes, including highly active commodity ETF options. With the addition of CBOE Gold ETF Volatility Index futures and options, market participants will have valuable products that will allow them to hedge volatility in a new way."

And here is how hard the CBOE is working to satisfy the dmands of all vol addicts out there:

Calculated and distributed by CBOE since 2008, the Gold VIX is one in a series of several VIX benchmarks created by CBOE.  CBOE also calculates the CBOE Crude Oil ETF Volatility Index (OVX) based on United States Oil Fund (USO) option prices; and the CBOE EuroCurrency ETF Volatility Index (EVZ) based on CurrencyShares Euro Trust (FXE) options.

[ekimdrachir]

To The Moon!

[Letsbereal]

Gold reached a new all-time high of $1,435.60 per ounce as of 4:10pm EST on Tuesday 1 March 2011.
http://www.goldalert.com/2011/03/gold-passes-1435-new-all-time-high/

GOLD http://www.youtube.com/watch?v=nBOFVxGx9Es

[Letsbereal]

Phases of Secret Gold Policy
1 March 2011, by By Dimitri Speck (Financial Sense)
http://www.financialsense.com/contributors/dimitri-speck/phases-of-secret-gold-policy

Excerpt:

The existence of gold market intervention is known widely among experts. However there is very little awareness that there are actually distinct phases of intervention.

But these phases in particular are essential when considering the current state of the gold market.

Intervention aimed at countering rising gold prices has occurred for many years. One of the reasons is efforts by central banks to quell doubts about monetary stability.

Despite such primary objectives – leading characters, motives and times do not form a coherent unit. In particular there are clearly distinguishable phases.

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Phase IV?

Since 2008 the question has been whether we are now in the final phases of systematic gold intervention activities. In the wake of the financial crisis, large scale doubt about the stability of the currency system surfaced again for the first time in years. A rise in gold prices can still be prevented through massive interventions. There has also been far stronger intra-day price movement as in previous years.

But what does gold have to do with the global crisis?

To this, the final figure shows the entire world’s debt compared with its economic potential. Included is not only the debt of countries, but also that of households and companies, because in the final analysis they also must be supported by economic potential. In addition the financial crisis has shown that the state must directly or indirectly accept private sector debt on its books in order to prevent collapse.

Since the 1960s, the world’s total debt has more than doubled compared to global economic potential. Classically the end of this kind of credit bubble results in collapse and default. These days, nations generally act to prevent that in order to avoid strong deflation and crisis. What possible outcome is demonstrated by Japan, which as early as the 1990s, was mired in excessive debt similar to the way the entire world is today. In Japan, it ended in decade-long stagnation, but at least not in catastrophe (at least not yet). In the best case, even climbing out of debt is possible the way Great Britain did after the Second World War. However conditions in those days differed dramatically. Besides, globally speaking there has never been a measurable reduction of debt for decades now (even from much lower levels). That brings us to another road down which an over indebted economy can travel. It has to do with the Janus face of debt: One man’s debt is another’s certified claim. If inflation expectations increase these claims could end up in circulation, which would mean a sort of flight to material assets. Because of large holdings of debt paper, potential for demand is high and with it an accordingly high potential for an advance in prices. That type of scenario is still not visible on the horizon. But if it should come to that, gold’s advantages as a non-replenishable and non-revalueable liquid asset would come to play – exactly the same advantages that have been motivating the central banks to execute interventions since 1993

[Letsbereal]

Gold settles at new high
2 March 2011, (Xinhua)
http://news.xinhuanet.com/english2010/business/2011-03/03/c_13758262.htm

Excerpt:

Gold futures on the COMEX Division of the New York Mercantile Exchange on Wednesday settled at $1,437.70 per ounce, a fresh all-time high.


THE ECSTASY OF GOLD http://www.youtube.com/watch?v=ZNGe7iK1O-4

[Letsbereal]

Discover the Yukon and win a gold nugget

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http://www.telegraph.co.uk/sponsored/travel/yukon/

[charrington]

both Gold and Oil are down as of this moment.

[Letsbereal]

Utah Pushes To Accept Gold, Silver As Alternative Currency
3 March 2011, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/article/utah-pushes-accept-gold-silver-alternative-currency

Excerpt:

Now, the state of Utah has gone a step further and is actually voting, as early as today, on whether to recognize gold and silver coins, issued by the federal government, as legal currency, a move that would send a huge signal to the Marriner Eccles building that Americans have had enough of the Fed's dollar debasement.

"The coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative." Reports Foxnews:

"The legislation, which has 12 co-sponsors, would let Utahans pay their taxes with gold and also calls for a committee to study alternative currencies for the state.

It would also exempt the sale of gold from the state capital gains tax.

The bill cleared a state legislative committee on Wednesday, the first of 11 similar bills in statehouses across the country to do so.

If the bill clears the House, it would have to pass the Senate before the governor could sign it into law."


See Also:

JP Morgan Starts Accepting Gold as Collateral, 7 February 2011, by J Turbin (GoldAlert) http://www.goldalert.com/2011/02/jp-mogran-starts-accepting-gold-as-collateral/