Gold naturally bounced off the top of its trending channel. I believe most of us technicians see a break above 1,700 as the start of a super-bull-run for gold, the likes we have never ever seen before, a new channel. make no mistake about it, it’s gold. not nickel. not copper.
The crumbling of fiat (bullion gold system) or unbacked paper money was sped up by the print all you can attitude of the US fed. sadly, the inflated dollar’s reign is soon coming to an end. UK was forced to abandon the gold standard in WW II because it was heavily in debt at the time and it has no more gold. This, just to give you an idea why former world leaders forced this fiat system on us.
“Dedo” sampols. In 2011, the legislature of the state of Utah passed a bill to accept federally-issued gold and silver coins as legal tender to pay taxes. Similar legislature is under consideration in a number of other states [wiki]. now, HK also considers to de-peg. Look for china, the no. 1 miner and buyer of gold to make a timely announcement soon, effectively destroying the US economy (while trying to avoid a nuclear war which it would certainly lose).
Return of the Gold Standard (w/ a slight tweak)
It is now the collective burden of all central banks in the world to come up with a new monetary system. There can only be one, a return to the gold standard where paper money in circulation is properly backed by gold.
The problem is there is just too many dollars in circulation, a return to it will absolutely obliterate the dollar and other currencies. a complete return may catapult gold to 10,000 (absolute hula). The world needs to avoid this. It has to be gradual return, plus a couple of tweaks that are applicable and timely.
Phil-Pac, a small nation with a golden wallop of a left-hook.
A quick look at wiki (gold reserve) as of Dec 2010 tells us that as per World official gold holding, the Philippines (yes our country) is 24th on the list with 176 tons! way ahead of sg and hk. the more updated June version from World Gold Council is somewhere in the net.
P.S. Now, if i post my chart and projections for LC, specially assuming that FSE indeed strikes the most shiniest, goldenist, porphoric reserve whatchever, i will surely be accused of hyping.
But how can I, this is only a forum for retail. ‘real’ fundies (95% of lolo trading) need some approval from their directors and research dep’t to splurge unnecessarily. Forum hypes have no effect on the the market with this kind of trading volume. We can only watch in the sidelines
Your decision, Your research…
By BottomlessBazura, The BB HArmonies of GBK and CHU Thread of http://www.TradersPizza.com