The Golden Truth: The Bank of Korea Is Now Buying Gold...

Thursday, August 26, 2010

The Bank of Korea Is Now Buying Gold...

“Given that central banks in India, Russia and China have bought gold for defense, the Bank of Korea can’t help but feel under pressure to consider purchases for diversification,” said Oh Kyu Chan, Seoul-based head of the overseas fund of funds team at Shinhan BNP, which operates Korea’s biggest gold fund. Here's the story from Bloomberg: Link

8 comments:

JoeThursday, 26 August, 2010
Jesse penned this colorful language earlier this summer on Silver. So think about this when trying to put a price on where Silver is headed.

"The silver formation is so big and so powerful looking that the breakout, when it eventually comes, might well look like a shaped charge sending out a jet of hot plasma vaporizing a hole through stop losses and short positions.

"Now I am become death, Destroyer of Shorts, pinned on the wrong side of my trade. Lord of the cruel forces of nature."

JPM will get bailed out by the CFTC / Fed most likely, but they will be burning specs and tossing hedge funds onto the bonfire of the vanities.

Watch for a surprise trading house that slithers out of the dark pools to vampirically feed on the trapped shorts when the time comes. They won't be able to use stretchers to haul them out of the pits; they will have to use dust pans."

Joe M.
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JoeThursday, 26 August, 2010
Dave,

I forgot to add that Jesse included a photo of "Shiva" as a graphical metaphor to the above commentary.

For some reason I get the feeling this goes all the way back to a betrayal and 30 pieces of Silver.

Joe M.
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HopiumThursday, 26 August, 2010
"The silver formation is so big and so powerful looking that the breakout, when it eventually comes, might well look like a shaped charge sending out a jet of hot plasma vaporizing a hole through stop losses and short positions.

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Lol could not have said it better myself. My Silver position is strong....and no it ain't no Paper Airplane :)

Hopium
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AnonymousThursday, 26 August, 2010
Dave you cock-eyed ignoramus. There is a difference between "Under Pressure" to buy gold and "now buying gold".
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stibotThursday, 26 August, 2010
I feel like we are having again some premium issue. I can see very similar behaviour also for ZKB Swiss fund.
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HopiumThursday, 26 August, 2010
Dave you cock-eyed ignoramus. There is a difference between "Under Pressure" to buy gold and "now buying gold".

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Kind of like the difference between 500,000 jobs and 473,000 jobs lost. Who are they kidding. Follow the money.
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Dave in DenverThursday, 26 August, 2010
LOL. I know the spirit of the article clearly went over the dude's head. When they say "under pressure" to buy gold, they mean that their huge dollar reserves are worthless and they are under pressure to get out of them and into gold.

Dude's mind is torn and frayed.
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TyroneThursday, 26 August, 2010
The Bank of Cramer is now buying Gold...
Cramer: own some gold
LOL
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.