Perhaps the gold traders are feeling the pinch -- and want to liven things up a bit by stimulating a gold bull. Perhaps the CB's now want gold to rise a bit. Would make sense. What better way to push the US dollar down, and push up those currencies extensively backed by gold.

Just a thought -- when do you really need more security at Fort Knox?

When you have gold and want to keep it,

or

When you have no gold and don't want anyone to find out?

It would be interesting to find out what level of security the key US Army personnel must have to work there. Wonder what kind of clearance AG is rated for. Could be higher even than for the US president.

Just imagine what it would be like if Commerce handled the security arrangements at Fort Knox. The whole world would know.

I am neutral on whether we will have more inflation or deflation. I am prepared for both. I think Martin Armstrong is wrong that inflating out of deflation is ( always ) easy --if he said that. Just look at all the countries that have failed to inflate their currency out of trouble. The recent debris from their deflationary collapses ( with subsequent inflation from currency devaluation ) can be seen dating back to 1980 in Japan.

I think a more accurate statement of what you are proposing ( and possibly that of Martin Armstrong ) is that a competent FED chairman such as AG can keep the delicately balanced fiat currency system going for years. He and his predecessors have already. The only problem with such finely tuned system is that one cannot guarantee that a credit/deflationary collapse will never occur. Eventually it will happen, as the inflationary machinery of the FED will become less effective as debt mounts over the decades, and corruption slowly creeps in. And there is the not so minor problem of pushing when one should pull -- the pushing on a string that always happens when the FED tries to start a moribund recessionary economy.

I think one major lesson we are getting from Japan is that once the deflationary/depression mentality sets in, it takes years before the public is willing to borrow and invest again. The Japanese Government has had 10 years of attempted inflation without success. And -- the Japanese are much more diligent savers than we are.

So -- my vote is for periods of inflation and deflation in the US -- the precise sequence/recipe is known only to those more clairvoyant than I. I will just keep on my toes. I will be more than glad to jump on the gold bandwagon when the opportunity arises, and sit on the sidelines when deflation dominates.

.

Grabbe has a good one at Laissez Faire City Times.

A must for the action of today.

http://www.zolatimes.com/v2.39/eye.html

I am surprised that from all posting on this site, which mostly represents our wishful thinking about gold, you pick up on Donald who posts the real numbers reflecting reality of this market. Do you really prefer somebody's wild guess about the Gold soaring to $400 before the end of this year and DOW crashing tomorrow? If that were what you are looking for I would suggest the Disney World.

If Donald's indexes are too depressing for you, you should not be in PM market.

Donald, please, keep doing what you're doing.

and Ron, and Robert McKinnon, and Fundametalist, and IV, and CMax,

and Steve ( Perth ) , and D.A., and Ted, and Markus, and geff, and Steve ( Harvester ) ,

and Achter, and Joe Smith, and K Smith, and LSteve, and RKM, and Ray,

and Puetz, and Allen, and oldman, and Kolorado, and vhale, and bartholomew, et al?

I wonder how many of these people on welfare even know where eggs come from, or how to plant crops. I learned a little from tilling my Dad's 1/2 acre of crops -- and I have books on subsistence farming.

Sadly to say, come y2k there will be many people who will have a rude awakening when they realize that 'Big Daddy' government will no longer give them all of what they want for votes. Unfortunately, these individuals will not just take it out of Government officials -- all of us will suffer. I will be more than willing to teach others how to farm -- provided that I can do it without risking life and limb.

If it looks like a duck, swims like a duck, and quacks like a duck -----

Perhaps gold will take it on the chin in a few days if the market fails to continue its rally. General market buying enthusiasm tends to push up gold for various reasons.

Did you notice CRY0 is below 200 again? I think we should look at the JOC spot commodity index on the Kaplan site.

GustoOro: I think the mentality that gold is the last asset you sell during hard financial times is a hard one to shake. I certainly would sell my gold if the alternative was to starve.

Now -- if the gold is someone else's -- even easier. I think the key point is that we are not 'out of the woods' until all of the world's major countries that are at risk of deflation/credit collapse have sold all their gold. After that -- it will be much smoother sailing for many years, IMHO.

Any idea who is left? Any South American countries? European countries at risk? I think Canada's gold is now only in the ground where it is a bit harder to hand over to someone else. Likewise Australia. Does the US have any debt where it must use gold as collateral?

Gold is pretty good at anticipating future inflation -- and can move before interest rates and commodity prices. Certainly the strength of gold is rising streadily relative to CRY0 since Jan 1998. The relative strength of gold vs the US dollar is less obvious, but it does seem to be rising over the last few months.

Another possibility is that gold is up because of the current market rally -- fueled by uncertainty regarding the future. A little sneaking to the exits?

We just have to beware another 'gold fire sale' if we have another major financial meltdown somewhere. Gold is not strong enough to weather a repeat of the SEAsia events.

Wonder how money countries at risk still have gold to sell ---------

Comments about last nights discussion about why the BIS tightened Japanese banking reporting requirements? My guess ( in addition to the obvious ) is that the BIS knows that the most likely move of a major currency to the gold standard will come from Aisa, or SEAsia -- not Europe or the USA.

The BIS is in a no-win situation regarding increased Japanese banking regulation, which should have been done years ago ( by Japan ) . The Japanese have had nearly 10 years to face their problems and do something about them. Now -- it makes the BIS look like they might be precipitating a world-wide financial crisis if they trigger a Japanese implosion.

Observer: I think they both have 1 oz of gold in them, but the Can'dians weight 1 oz making them pure, where-as the eagles weight more than an oz. Dunno though, that's what I've heard.

Could be that you will have to prove your innocence. What happened to those old principles of American justice where you were innocent until proven guilty?

http://www.WorldNetDaily.com/bluesky_exnews/19981123_xex_big_brother_.shtml

CURRENT SURVEY RESULTS

FOR 165 ENTRIES

$250 to $500

5

3%

$500 to $1,000

5

3%

$1,000 to $2,000

18

10%

$2,000 to $5,000

29

17%

$5,000 to $10,000

47

28%

Greater than

$10,000

57

34%

Almost.......

Is there a PULSE?

Hardly....

Is it suicidal?

Don`t know...

Kitcoists...?

Suicidal too...

Well?.........we are ...at the bottom...?

Don`t know!!!!!!!!!

My mother turn BULLISH!!!on Canddddlllll!!!!!

PRAY!

dollars to invest in this puppy...IMO US$15. within 2and1/2 years

( .....do your own dd!...and, never take my investment rantings seriously. )

The reality is that gold is caught in the grip of desperate political forces, and those forces are using the banking system, and the markets, through either coercion or manipulation to support their own ends. Neither the shorts, nor those wringing their hand with impatience will be able to affect the eventual role Gold will play in the international monetary system. Time will play that out aided and abetted by the real wishes of millions if not billions of people. Neither short sellers, hand wringing optimists, nor self serving political forces will, in the end greatly influence Gold's role... even Mr. Greenspan, the Bank of England, or the likes of LTCM.

To coin an old phrase... it is what it is, but it will be what it will be. The wisest will be those that can figure out the outcome of this long term game ahead of time, and those will be the ones that use a combination of history, analytical prowess, timing and understand the wishes of millions or rather billions of people.

@Cowgrrl: I liked the poem.

mommy's skirt. Let that puppy go a few days without eating

and he will get down and scarf spam like a dog.

By the way, great post this morning. The concept of real value

has been lost to the masses. Proves there is nothing new under

the sun. Whether tulips, Tokoyo real estate, the DOW, junk

bonds, or counterparty credit risk in derivatives; the crowd in the

balloon never sees the pin coming. True value investors are

considered lepers at this time and have taken a pretty good beating. Healing commeth!

EZB

Tyro ( @jims ) ID#36977:

My experience has been that SWC goes down on big PGM up days, and goes UP when PGM prices correct the

following day or two. comments?

Today: Platinum 348.95 -6.95 13:45

Palladium 281.00 -17.00 09:27

SWC 1:19PM 36 1/16 +13/16 +2.30% Check out the 5-day chart:

http://quote.yahoo.com/q?s=SWC&d=5d