Gold Tops $1080 Today

[vic_d]

http://www.hindustantimes.com/India-now-a-gold-power-RBI-buys-200-tonnes-from-IMF/H1-Article1-472389.aspx

India now a gold power:

The RBI now has the tenth largest gold reserves in the world after spending $6.7 billion (about Rs 32,000 crore) after buying nearly half of the 403.3 tonnes put on sale by IMF, which shed one-tenth of its yellow metal reserves to help lending to poor countries.

The proportion of gold as part of India’s foreign reserves of $285.5 billion had fallen over the past decades to a mere $10.3 billion. The latest purchase will lift its share of gold holdings from near 4 per cent to about 6 per cent, much less than most of the developed world but four times China’s share.

As Finance Minister Pranab Mukherjee prepared to leave for a G-20 conference of elite economies, he said the gold purchase was “normal”.

“My advice to the governor of RBI would be…if you are in a position to buy gold buy it but do not put too much emphasis on it (buying),” he said.

RBI said in a statement that the deal was an off-market transaction executed between October 19 and 30 at market prices.

[ninakat]

And what about silver -- why it's jump as well, since the dollar's still positive? Hmmm....

Same reasons, flight to safety.  Not everyone has thousands of dollars lying around to throw at gold, but a four hundred or so will buy you a roll of 20 Silver Eagles.  And if TSHTF, the silver will be much easier to use as a medium of exchange.

Yes. But silver jumped today commensurate with gold's jump. Isn't this a sign that something else has spooked people into a flight to PM safety? It sure wasn't the dollar. Or, is silver's jump merely a sympathetic move along with gold, regardless of what the dollar is doing? So many questions....

[Armageddon]

A jump in gold and silver right before the g-20 summit to dump the dollar ?  Coincidence ?   No. 

[ninakat]

$1083.40 at the moment.     

[gin]

Gin, I think you might be onto something there. As to your last question, it was reported
that they bought the gold with a portion of their US dollar reserves, in dollars.

at a macro level when the overall market is buying gold it is as a hedge and hence the price goes up..  ultimately
beyond what the producers bring to market who's bringing the 'extra' gold being bought to market and/but why

it's my opinion.. like you said on a other thread that J6P is being suck dry.. through scams like cash4gold etc..
to subsidize their life styles/needs to upkeep their 'mcmansions' and gas guzzlers.. the wise don't sell an asset
like gold or any asset when it will go up.. are TPTB using this gold rally/runup to suck as much gold possible out
of the pocket of regular joe's before the financial collapse of the purchasing value of all currencies worldwide..

posting some of my thoughts out loud.. these are times not to sell your gold and buying if you'd like to hedge    

[cygnus]

Just got back from class and checked gold prices - 1084.20!  Good frickin' lord!   And wasn't it back down under 1030 just late last week? 

[Rival]

I was explaining to a coworker today about how gold is a bitch godess.

When gold goes up, it is good news for my personal stash.

But...

When gold goes up, it is bad news for the world. And I still have to live in this world.

[Madnsassy]

I was explaining to a coworker today about how gold is a bitch godess.

When gold goes up, it is good news for my personal stash.

But...

When gold goes up, it is bad news for the world. And I still have to live in this world.

Yup, for those who bought PMs a few years ago, it is indeed bitter/sweet.

[FilterFeeder]

I'm wondering how much of this move is a change in the price of gold and how much is a reflection of the price of the dollar:

http://www.fxstreet.com/rates-charts/usdollar-index/

[Ellie]

And what about silver -- why it's jump as well, since the dollar's still positive? Hmmm....

Same reasons, flight to safety.  Not everyone has thousands of dollars lying around to throw at gold, but a four hundred or so will buy you a roll of 20 Silver Eagles.  And if TSHTF, the silver will be much easier to use as a medium of exchange.

Yes. But silver jumped today commensurate with gold's jump. Isn't this a sign that something else has spooked people into a flight to PM safety? It sure wasn't the dollar. Or, is silver's jump merely a sympathetic move along with gold, regardless of what the dollar is doing? So many questions....

As a percentage of total value, silver has gone up almost twice as much as gold today.

[Rival]

$1085. Its not even slowing down...

God help the shorts...

[Madnsassy]

And what about silver -- why it's jump as well, since the dollar's still positive? Hmmm....

Same reasons, flight to safety.  Not everyone has thousands of dollars lying around to throw at gold, but a four hundred or so will buy you a roll of 20 Silver Eagles.  And if TSHTF, the silver will be much easier to use as a medium of exchange.

Yes. But silver jumped today commensurate with gold's jump. Isn't this a sign that something else has spooked people into a flight to PM safety? It sure wasn't the dollar. Or, is silver's jump merely a sympathetic move along with gold, regardless of what the dollar is doing? So many questions....

As a percentage of total value, silver has gone up almost twice as much as gold today.

I've read in more than a number of places over the past few years that silver is greatly undervalued and is likely to rise exponentially much higher than gold.

[DoomOrBust]

Wow, just noticed this. I looked earlier and gold was down slightly. I just clicked to check again and it was up over $18. WTF. Something happened. I wish I knew what it was, cause the dollars still positive. There is just too much weird shit going on right now.

I just posted this as a new thread at breaking news:

Could this be a reason gold has hit another all time high?

http://www.washingtonpost.com/wp-dyn/content/article/2009/11/03/AR2009110301397.html

TEHRAN -- Iran's supreme leader, spurning what he described as several personal overtures from President Obama, warned Tuesday that negotiating with United States was "naive and perverted" and said Iranian politicians should not be "deceived" into starting such talks.


FYI my fellow LATOC'ers, it might also have something to do with this; it is rumored (Debkafile so take that with a grain of salt) that Hamas has acquired Chinese Silkworm C-802's that are within range of Israel's main southern naval port at Ashdod. Israel is not too happy right now and I would gather they are beginning to feel threatened on all sides. Not good, an ex-marine (Iraq war 1 and 2) in our family said the USA would not even choose to tangle with Israel, this could get out of hand very quickly.

[goodraven]

here's a few (none financial) reasons for gold spike:

Hi LATOCer's! long-time member but mostly lurker here. I haven't seen any speculation on the reason for this drop in US imports from Saudi Arabia (only 745,000 b/d in Aug.) on peak oil related sites. Any interesting specuation here?

http://www.businessinsider.com/saudi-oil-exports-to-the-us-mysteriously-plunge-to-22-year-lows-2009-11

http://www.recombinomics.com/News/11020902/Ukraine_Spike.html

Ukraine H1N1 Deaths and Hospitalizations Spike Higher
Recombinomics Commentary 21:54
November 2, 2009

255516 Influenza/ARI
15810 Hospital Admissions
235 Intensive Care

http://www.doomers.us/forum2/index.php/topic,55833.135.html


Iran?   other geo-political tensions?    

[Xenopus]

question..
when India bought that gold did they have to first buy US$ to pay for the gold ?
if yes when did they do that or did they pay for the gold with good old rupees..   

They have a big trade surplus with the US. I imagine they bought it with some of their surplus dollars.