Gold hits record high - $1,036.40 Oz.

Gold hit a record high at $1,036.40 an ounce as the dollar dropped on a report, later denied, that Gulf Arab states were considering abandoning the U.S. currency for oil trade.

www.reuters.com...

Tie this in with more news today:

UN calls for new reserve currency...

The United Nations called on Tuesday for a new global reserve currency to end dollar supremacy which has allowed the United States the "privilege" of building a huge trade deficit.

The demise of the dollar

Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

The end of the dollar draws near. Whomever said this day wouldn't come...in the words of Nelson (of the Simpsons)...HaHa!



[edit on 6-10-2009 by warrenb]

it's a beautiful thing.... silver still 25% off it's highs though

reply to post by dickbar




God bless The Onion.

reply to post by Lasheic


that is hilarious!
thanks for sharing, we could all use a good laugh

Update: Gold hits a new high of $1043.34

Currently $1037.80

The US $ hit a daily low of 76.103

The sky is falling.

dang, the $232.84 check i mailed out on Sep 30th (last Wednesday)
hasn't had time to clear my Gold Fund ROTH account.

That little bit of $ might only buy 2 share if Gold keeps skyrocketing

dang again

Remember they did their duty of warning us...that is they have rules they must play by...

Bilderberg World Bank President has spoken, it will happen.
To think that the NWO was a conspriacy theory!?

America, Zoellick says, can no longer rely on the dollar ruling the roost. The euro and the Chinese renminbi are candidates to become reserve currencies

World Bank and IMF Join Attack On The U.S. Dollar

[edit on 6-10-2009 by burntheships]

CRAP!! i sold my gold earlier this year!!

this wouldn't come about without a World war 3.

if anything history has told me, it is change doesn't happen without chaos. or a super power not going down without a fight.

how can they just drop the dollar like that and not loose a vast amount of wealth from doing so?

I mean if china has bought alot of out debt, then whos going to buy that toxic debt back so they can get rid of the dollar?

but still got my silver..

ALERT


this sudden run-up in gold is an engineered thing as far as i'm concerned.


here's the thing that prompted the run-up, an item that states:

" This month, on September 8, 2009, Barrick Gold Corporation announced it was taking a $5.9 billion charge against 3rd quarter earnings in order to buy back all its forward contracts, a considerable sum to pay for succumbing to the wishes of those in power... "" (see; 321gold.com)


to stop the few major gold producers who were planning to repurchase their 'forward contracts' of future gold production...

TPTB waited in the shadows until an event could be manipulated which would send gold soaring,,,

The combined jitters of an attack on Iran/ the 'Death of the Dollar' noise,
and the much hearalded ballyhoo of a 'secret conclave' to drop the USD as the medium to price & sell Oil was the needed unstability that sent gold to it's current stratospheric price.


see, it's a win-win for those who bought forward contracts,
the gold producers cannot afford to buy-back the now impossibly expensive contracts
so the holders of the forward contracts, can book the higher valuations right now and show immense profits in their holdings.

they could also manipulate news data to sustain the markets fear & sustain gold above $1000. for as long as they wish, all the while letting a steady trickle of contracts sell (prior to expiration)--
-until they want the price of gold to drop back to the $900-950 level

hedge funds, private equity groups and market makers like goldman sacs for the Fed are the likely puppet masters all working in concert.

? what might be used to pull the rug from under the gold $$...?
one suspect may be the ETFs that do not have the proper ammount of physical gold to support the ETFs valuation. and there's more than just the billion$ invested, there is the trust/confidence in the markets factor...
once investors lose all faith & trust in gold ETFs it will be a swift crash to $800 or less. (and guess whose going to have short Puts up the gazoo?)


just a FYI, what-if story for anyone interested, thanks






[edit on 7-10-2009 by St Udio]

Originally posted by St Udio


dang, the $232.84 check i mailed out on Sep 30th (last Wednesday)
hasn't had time to clear my Gold Fund ROTH account.

update; i received notice the check cleared Monday after all
...so i actually received .713 shares for the same money
than i would have gotten on the Tuesday NAV (price)

but more importantly than the .713 share windfall, it was the satisfaction
that my instincts/intuition proved correct, & i beat the odds this once...

Gerald Celente - Economic Collapse

Oil producers to oust dollar




[edit on 7-10-2009 by warrenb]

Celente couldn't be more accurate. The price of Gold , including the current "run up" , is determined by confidence , or lack thereof in paper clunker-cash.

As a result of global currency abuse , Gold is breaking out in all of the majors....not just $USD.

Originally posted by St Udio
here's the thing that prompted the run-up, an item that states:

" This month, on September 8, 2009, Barrick Gold Corporation announced it was taking a $5.9 billion charge against 3rd quarter earnings in order to buy back all its forward contracts, a considerable sum to pay for succumbing to the wishes of those in power... "" (see; 321gold.com)

to stop the few major gold producers who were planning to repurchase their 'forward contracts' of future gold production...

TPTB waited in the shadows until an event could be manipulated which would send gold soaring,,,

First , make no mistake...Barrick is the TPTB.

Former Barrick board of directors includes the likes of George H.W. Bush. Current BOD - a litany of elite insiders including "young" Nathaniel Rothschild.


Producer hedging

A contract/claim against future mine production. Profitable strategy in a bear market when prices continue to fall.....devastating when the market reverses direction.

Producer de-hedging

Barrick is under contractual agreement to deliver 9.5MM ounces of physical Gold to satisfy hedge-book obligations. Barrick's primary counterparty/partner-in-crime is....JPM.

That's 9.5 MM ounces @ an average price of $396 per...quite a discount from today's spot price...thus the writedown.

the gold producers cannot afford to buy-back the now impossibly expensive contracts

Not only can , but will....and at a substantial loss. Barrick's currnet round of de-hedging will be funded via their recently completed equity financing.

1 year to complete the process.

Barrick Completes Previously Announced Equity Offering

Keep in mind that in order to fund ongoing operations , Barrick has to sell the lions share of annual production into the open market at current prices , but even if they were to de-hedge by delivering their entire 09 mine production , estimated @ 7.4 MM ounces , they'd still be short approx 2 MM ounces.

The obvious implication is that Barrick will be purchasing a large % of this Gold in the physical market. Naturally this additional supply off-take will put upward pressure on the POG , aka: The Barrick Put.

Needless to say , bulls are ecstatic over this development

? what might be used to pull the rug from under the gold $$...?
one suspect may be the ETFs that do not have the proper ammount of physical gold to support the ETFs valuation. and there's more than just the billion$ invested, there is the trust/confidence in the markets factor...
once investors lose all faith & trust in gold ETFs it will be a swift crash to $800 or less. (and guess whose going to have short Puts up the gazoo?)

With all due respect , this analysis is completely backward.

If it is ever confirmed that bullion ETF holdings are fraudulent , GLD/SLV SP would crash , however similar to the effect of a Comex default , the resulting supply-shock would rocket the POG.


So we have spot Gold trading around 1040.....this with the Shanghai/Shenzhen stock markets/Shanghai Gold Exchange...closed for the [appropriately named] "Golden Week" holiday (Oct 1 - Oct 8).

Shanghai Stock Exchange

Golden Week

Lets see what does , or doesn't happen when Chinese markets resume trade on Friday.

[edit on 7-10-2009 by OBE1]

Originally posted by warrenb
UN calls for new reserve currency...

The United Nations called on Tuesday for a new global reserve currency to end dollar supremacy which has allowed the United States the "privilege" of building a huge trade deficit.

As if we didn't see this coming. Good post.

Now we can wait and watch it all unfold faster, and faster. For some reason, it seems as though someone is in a big hurry.
Almost like how a person speeds up the process of selling items to liquidate into fast cash for an emergency situation or to prepare for something big coming...