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:

  1. 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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  2. 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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  3. "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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  4. Dave you cock-eyed ignoramus. There is a difference between "Under Pressure" to buy gold and "now buying gold".

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  5. 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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  6. 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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  7. 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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  8. The Bank of Cramer is now buying Gold...
    Cramer: own some gold
    LOL

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