Tuesday, October 8, 2013

Tuesday morning news

Hooray! This blog has made it to post #3000! Let's throw a party.

Gold is being sold down a bit in London, but this time silver and platinum are not following. So I guess the financial industry got my memo.

Here's some reading for you:

Bonddad - food inflation not an issue. The problem with foodstuffs is you can't have a bubble go on for more than a year, because supply is very elastic and responds quite aggressively to price signals.

Sean Brodrick - charts on gold. He seems to think gold is tracing out a H&S bottom. He also has some nice explanatory charts, like this one:


A barbarous relic that nobody would ever want, eh?

And this one here is interesting, since (if you remember recent history) it seems to suggest that the entire GLD puke and more just got stuck in a pipe and flushed directly into China:

Um... can you see a trend there? Hm? Any trend? Anything happen to jump out at you?

Sean also gets a little over-excited and goldbuggy though:
By the way, Sun Zhoaxue, president of China's biggest gold mine, says: "The average Chinese person only holds 4.5 gram of gold, that is far below an average of 24 grams per person globally."

Do you think the Chinese gold rush is over? I'd say it's barely started! Just to get equal with the rest of the world China would have to import or mine another TWENTY-FIVE THOUSAND metric tonnes of gold and allocate the biggest part of this among the population.
But I do really like how, unlike pretty much anyone else I've been reading, he notes that every S&P pullback is a screaming buy opportunity and not a "massive repudiation of debt as a dishonest system is coming apart at the seams".

Still, it's not much of an endorsement to say "Sean Brodrick shows more sense than a goldbug blogger."

International Business Times - India's unofficial gold market shows little signs of slowing. Remember this the next time you read some Goldman Sachs paid propaganda about collapsing gold demand in India.

Mineweb - Singapore small-cap rout. Apparently it was a stock bubble, and it's now been burst. See also:

WSJ - Blumont, Asiasons, Liongold plunge in Singapore. Too bad for Minera IRL, I guess.

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